The European Commission opens an in-depth investigation into the increase of state aid for CE Oltenia

The European Commission has opened an in-depth investigation to assess whether the proposed changes by Romania to the restructuring plan of the energy company CE Oltenia are in compliance with the European Union rules on state aid. In brief In January 2022, the Commission conditionally approved a restructuring aid of 2.66 billion euros for CE Oltenia, covering the period 2021-2026. In December 2025, Romania notified a modified plan that provides for an increase in aid to 2.86 billion euros and an extension of the restructuring period until the end of 2029. Romania cites delays in the implementation of new solar and gas-based capacities, which have postponed the gradual phasing out of existing lignite capacities. Romania argues that there is a risk to supply security in the region, in the current geopolitical context, with CE Oltenia being the main electricity supplier for the Republic of Moldova and one of the suppliers for Ukraine. The Commission will analyze whether the extended duration is reasonable, whether the plan ensures long-term viability, whether the own contribution to costs is sufficient, whether additional measures limit competition distortions, and whether the delays were beyond the control of Romania or the company. The opening of the investigation gives Romania and interested parties the opportunity to submit observations and does not prejudice the final outcome. In January 2022, the Commission conditionally approved a restructuring aid of 2.66 billion euros, equivalent to 13.15 billion lei, for CE Oltenia, to support the restructuring plan for the period 2021-2026. The approval was granted based on the guidelines on state aid for the rescue and restructuring of non-financial enterprises in difficulty. In December 2025, Romania notified a modified restructuring plan, which provides for an increase in aid from 2.66 billion euros to 2.86 billion euros and an extension of the restructuring period by three years, until the end of 2029. According to Romanian authorities, the extension is driven by delays in the implementation of new solar and gas power plants, which, in turn, have delayed the phasing out of existing lignite capacities. Romania argues that there is a risk to supply security in the region due to the current geopolitical context. CE Oltenia is the main electricity supplier for the Republic of Moldova and one of the energy suppliers for Ukraine. At this stage, based on the information provided by Romania, the Commission considers it necessary to verify whether the revised plan is compatible with EU rules on state aid. In particular, the investigation will analyze whether the extended duration of the plan is reasonable and whether it continues to lead to the restoration of the long-term viability of CE Oltenia, whether the contribution from the company, investors, or financial institutions to the increased costs is sufficient to ensure the proportionality of the aid, whether Romania will implement appropriate additional measures to limit the competition distortions created by the additional aid, and whether the delays in implementing key stages of the restructuring plan were beyond the control of CE Oltenia or Romania. The opening of an in-depth investigation provides Romania and interested parties, including CE Oltenia, the opportunity to submit observations and does not prejudice the outcome of the investigation. CE Oltenia is a Romanian public company active in lignite mining and electricity production. The Romanian state controls 87.48% of the shares, the investment fund Fondul Proprietatea holds 11.81%, and the rest is owned by other public companies. CE Oltenia is one of the main employers in the region, with over 8,000 employees, in an area where the unemployment rate is consistently above the national average. The guidelines on state aid for the rescue and restructuring of non-financial enterprises in difficulty allow member states to support companies in difficulty under certain strict conditions, and during the restructuring period, the member state may request the Commission's approval for modifications to the plan and the amount of aid.

https://2eu.brussels/ro/stiri/comisia-europeana-deschide-o-investigatie-aprofundata-privind-majorarea-ajutorului-de-stat-pentru-ce-oltenia