Enel, the Italian utility giant, which won the bid for the privatisation of Electrica Muntenia Sud (EMS), announced investments worth 380 million euros in the next four years in the three electricity distributors it owns.
"We will invest 380 million euros in the next four years to modernise the networks. Romania needs to have a more effective energy sector so as to improve the effectiveness of industry for the benefit of the consumer," stated Fulvio Conti, CEO of Enel.
Enel paid 820 million euros to take over Electrica Muntenia Sud. The price paid by Enel, added to those paid for Electrica Dobrogea and Electrica Banat sees the investment of the Italians reach almost one billion euros, making Enel the biggest industrial investor in Romania.
Enel currently owns 25% of the electricity distribution market, according to company officials.
"By taking over Electrica Muntenia Sud, we have reached the optimal market share. It is not too big, at less than 30%, the level set by the authorities. This market share allows us to run a viable business. The only thing we are waiting for now is the approval from the Competition Council," Conti added.
The Enel official also said the group he runs would not stop at the privatisation of Electrica Muntenia Sud. "What we have achieved so far is the ideal share for business. "We will also take part in the other privatisation processes, if we are allowed to," he added.
The Enel official reiterated the group''s interest regarding the energy sector.
"There are no limits to the budget when it comes to us meeting our targets on the Romanian market. We are interested in the two nuclear power reactors in Cernavoda, as well as in the energy complexes," the head of Enel also specified.
The Italian official thinks the local energy sector is in need of major investments to make it more effective, before a restructuring process gets underway.
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