The Ministry of Energy of Romania has announced an extensive reform plan for state-owned enterprises in the energy sector, aiming to achieve savings of over one billion lei, approximately 200 million euros, to ensure the long-term sustainability of these companies.
The reforms focus on cost reduction and efficiency improvements without disrupting ongoing production and investment plans. To that end, the Minister of Energy has called for a rigorous cost analysis and proposed specific measures to reduce expenditures. Additionally, companies under the ministry’s jurisdiction have been instructed to conduct a thorough review of their activities at all levels and submit the results to the Ministry of Energy.
Some of the most significant proposed measures include reducing management positions by 30 percent to streamline organizational structures, cutting administrative staff by 20 percent, and reducing expenditures on goods and services by at least 20 percent.
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In the case of administrative staff reductions, and consequently salary cuts, it was emphasized that these measures do not apply to employees whose work is essential for the functioning of the enterprises, particularly those engaged in production activities such as quarries, mines, thermal power plants, hydropower plants, and nuclear power plants. Employees in these areas will not be affected by the reforms.
The Ministry also proposes a 50 percent reduction in protocol expenses and sponsorships, as well as a freeze on new hires, except in cases of critical necessity.
The Ministry has initiated an analysis of potential restructuring and mergers within the sector, including plans to consolidate multiple companies operating within the energy sector.
The reforms aim to simplify organizational structures, eliminate unnecessary functions, and reduce bureaucracy, ultimately leading to more efficient decision-making processes and operations.
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