Commission Decision (EU) 2022/1920 of 26 January 2022 on the State aid SA.59974 – 2021/C (ex 2020/N, ex 2020/PN) which Romania partly implemented for Complexul Energetic Oltenia SA (notified under document C(2022) 553) (Only the English version is authentic) (Text with EEA relevance)

• CELEX: Decision (EU) 2022/1920
• Articles: 4

Article 1

The restructuring aid to Complexul Energetic Oltenia S.A. (‘CE Oltenia’), which Romania has partly implemented, in the form of grants, a State guarantee for a loan, a capital injection, and a loan-to-grant conversion, amounting to EUR 2 658,1 million is compatible with the internal market within the meaning of Article 107(3), point (c), of the Treaty on the Functioning of the European Union, subject to the conditions set out in Article 2.

Article 2

(1)   Romania should ensure that CE Oltenia, within the timelines included in the revised restructuring plan or, as appropriate, at the latest by the end of the restructuring period, fully implements the measures included in the restructuring plan as well as the related measures limiting the distortions of competition, as follows:

(a)

Closure or temporary conservation as reserve of all lignite production capacities and launching the new production capacities between 2023 and 2026, without prejudice to the decommissioning of capacities stipulated in the National Recovery and Resilience Plan of Romania; the capacities that Romania will ultimately decommission shall be those approved under the National Recovery and Resilience Plan;

(b)

gradual reduction of personnel;

(c)

gradual decrease of CO 2 emissions combined with investments to reduce other environmentally harmful emissions;

(d)

share capital reduction and subsequent implementation of share capital increase;

(e)

establishment of special purpose vehicles as joint ventures with co-investors;

(f)

signature of financial agreements with banks;

(g)

spin-off of the Craiova power plant;

(h)

Creation of a distinct subsidiary of CE Oltenia, which will comprise and operate the existing lignite power units and related assets of CE Oltenia that are not intended for transition to gas or renewables.

(2)   Romania will divest no less than 20 % of its shareholding in CE Oltenia by 31 December 2026.

(3)   Romania should provide the Commission with regular reports on the implementation of the restructuring plan every six months starting from the date of adoption of this Decision until the end of the restructuring period on 31 December 2026. These reports should specify, in particular, the dates of the actual disbursement of the funding committed by State and the own contribution of the beneficiary, the fulfilment of the conditions set out in this Decision, any deviations from the financial or operational trajectories of the restructuring plan, containment of costs and cost reductions and earnings achieved by the restructuring measures, and the corrective measures envisaged or taken by Romania or, where appropriate, the beneficiary.

Article 3

Romania shall inform the Commission, within two months of notification of this Decision, of the measures taken to comply with it.

Article 4

This Decision is addressed to Romania.