The management of Alro Slatina aluminium producer (ALR), says it currently pays around 30-40% more for energy than a year ago because Hidroelectrica provides it with energy at a price that includes the aluminium price on the London market, which has surged in the past year. Nevertheless, the price Alro pays the energy generator is still below free market (OPCOM) levels.
"Should aluminium prices go up to 3,000 dollars/tonne, we'll come to buy energy from Hidroelectrica at around the price on OPCOM (the energy market i.e.) and the contract does not stipulate any upper price limits. (...)," says Gheorghe Dobra, general manager of Alro, who considers the agreement with Hidroelectrica benefits both sides.
He also says that worldwide aluminium producers have had energy purchase prices raised, but that major groups in the field it rivals benefit from a 25% lower energy cost on average than Alro.
The management of Alro Slatina aluminium producer (ALR), says it currently pays around 30-40% more for energy than a year ago because Hidroelectrica provides it with energy at a price that includes the aluminium price on the London market, which has surged in the past year. Nevertheless, the price Alro pays the energy generator is still below free market (OPCOM) levels.
"Should aluminium prices go up to 3,000 dollars/tonne, we'll come to buy energy from Hidroelectrica at around the price on OPCOM (the energy market i.e.) and the contract does not stipulate any upper price limits. (...)," says Gheorghe Dobra, general manager of Alro, who considers the agreement with Hidroelectrica benefits both sides.
He also says that worldwide aluminium producers have had energy purchase prices raised, but that major groups in the field it rivals benefit from a 25% lower energy cost on average than Alro.
