SNN responds to Romania Ministry of Energy press release
The board of directors for the Societatea Nationala Nuclearelectrica SA (SNN) responded to a Romanian Ministry of Energy press release critical of its financial performance and termination of a contract.
The the board was responding to a recent ministry press release that expressed dissatisfaction with SNN and its business relationship with the Nationala Uranium Company (CNU).
SNN said that it had terminated the contract with CNU for cause. CNU failed to deliver the raw materials as specified in its contract, it said. In addition, CNU offered the raw materials at a rate higher than the current market rate, according to the post. SNN obtained the same materials at a lower price, thus fulfilling its legal responsibilities to the ministry.
At the request of the Ministry of Energy, the Council of Competition reviewed the contracts between SNN and the Cameco Inc., which had provided the lower-cost materials and determined that the contracts were legal. The council sent a written report to the Ministry of Energy.
The ministry also requested an investigation by the Control Authority of the Prime Minister. SNN provided all the requested materials to the Control Authority. A decision is pending.
SNN also responded regarding its financial performance. It pointed to its net profits prior to 2013 and the significant increase in profits between 2013 and 2017. It also explained the aspects of the fluctuating market that affect the profit margin and its responsibilities as a nuclear producer to ensure safety at the nuclear power plant.
Organizations in this story
Nuclearelectrica Bucharest, Romania Bucharest, Bucharest