Hidroelectrica Bureaucracy: CEO Slams Governance Rules — NRG-IA

State-owned enterprise bureaucratization — why Hidroelectrica's management is protesting Hidroelectrica, the multi-billion euro energy giant, warns of major administrative bottlenecks caused by rigid corporate governance rules. In a vehement public intervention, the company's interim CEO, Bogdan Badea, criticized the excessive bureaucracy that hampers commercial and investment decisions. Badea used a harsh metaphor to describe the current situation of Romania's largest electricity producer. "We are the poor rich girl; we spend a lot of money, then we look at a minister's 36-euro per diem," Bogdan Badea stated, according to public reports. He highlighted the massive discrepancy between the huge financial resources the company allocates to sterile administrative procedures and the disproportionate attention paid to insignificant expenses. This rigidity directly affects the company's commercial agility in a highly dynamic regional market. Legislative changes to GEO 109 — the cause of the administrative bottleneck Repeated legislative amendments to the emergency ordinance on public enterprise corporate governance (GEO 109) are the main cause of the decision-making paralysis claimed by management. Instead of providing stability and predictability, the current regulatory framework forces management to navigate extremely long and redundant approval channels. This administrative structure discourages accountability and delays strategic decisions. The overlap of competencies between ministries, committees, and control bodies creates an environment where procedural compliance takes precedence over economic efficiency. In a sector where prices and market conditions change by the hour, the obligation to run every commercial decision through rigid bureaucratic filters reduces Hidroelectrica's competitiveness against private players in the region. The impact on investment projects — from Râul Mare Retezat to shareholder relations The direct consequences of these bottlenecks are reflected in the implementation pace of major energy infrastructure projects. Recently, Hidroelectrica signed a strategic contract worth 188.4 million euros for the retrofitting of the Râul Mare Retezat Hydropower Plant. However, the success of this massive project depends directly on the speed of administrative approvals and the ability to avoid procedural blockages during execution. Furthermore, being a listed company on the Bucharest Stock Exchange adds extra pressure. Private investors closely analyze how state bureaucracy affects the realization rate of planned investments. Any signal of instability or delay in decision-making can damage market perception and share valuation, penalizing both minority shareholders and the Romanian state, which remains the majority owner. Short-term outlook — the risks of missing targets and the reform schedule Short-term pressure is mounting as the Government, through the interim Minister of Energy, Ilie Bolojan, has already announced strict performance monitoring measures in state-owned companies. Bolojan stressed that funds and projects exist, but bottlenecks persist, which is why plans are underway to condition managerial salaries on the actual realization of planned investments. For Hidroelectrica, the coming months represent a critical test of its ability to unblock major projects and attract European funds. If administrative procedures are not urgently simplified, the company risks missing implementation deadlines and losing essential funding. The solution requires a rapid alignment between the strict performance requirements imposed by the Government and the real operational flexibility granted to the management team.