Bucharest Subway Operator Goes Shopping For Power

05.26.2011 ZF English

Metrorex, the operator of the Bucharest subway network, intends to buy one year’s worth of electricity for 52 million lei (EUR12.6 million), according to a company announcement.

It wants to buy 180,000 MWh from September 1, 2011 through August 31, 2012 by open tender; the contract goes to the lowest bidder.

This is the amount of power Metrorex needs in one year. The deadline to submit bids is July 4, 2011.

Metrorex is currently buying power from Petrod, one of he biggest electricity traders in Romania, held by businessman Jack Cutisteanu.

"The contract was supposed to expire in June. Metrorex tried to organize a tender but no one came so that we negotiated the extension of the contract by three months until the end of August," Cutisteanu said.

"We are interested in this tender, because power trading is how we make a living," Cutisteanu said.

Considering the amount of power sought, the price Merorex is willing to pay is about RON289/MWh. On the OPCOM energy market, one MWh can be bought for about RON235 (next day delivery), while in case of long-term contracts, the price of power for 2012 is RON169.3 per MWh.

"Metrorex's price is reasonable. The prices displayed on OPCOM are mere power prices, but there are also other services that make up the final price per MWh besides them," explained Ion Lugu, general manager of CEZ Trade, the energy-trading unit of CEZ Romania.