Alro Slatina (BSE: ALR): Energy costs could continue to grow, if the support scheme is not changed

Costs with electricity could continue to grow, at local level, if the subsidy scheme is not changed, Gheorghe Dobra, managing director of the company, stated on Monday at a press conference. “Renewable industries should be left in the free market. Subsidies should be eliminated for everyone. We struggle to stay in the free market. It’s inadmissible that subsidized industries destroy industries that resist in the free market. (…) At local level, electricity costs could continue to grow, if the subsidy scheme is not changed. The additional costs of the company will be, according to the current scheme, of approximately USD 66mln, of which USD 44mln for green certificates. These schemes need an urgent review, to allow the industry in general to stay competitive”, Dobra said. According to him, in January aluminum price decreased, posting the biggest decline in the past 14 months, amid the increased production in China, but also in the UAE, which contributed to the increase of stocks at world level. “Global production increased by 5.7% in January, compared with 3.9mln tons of aluminum in 2011, according to the International Aluminum Institute (IAI). Production in China recorded a rapid growth, of 16%, according to IAI information. Production exceeded the level of orders by 419,400 tons last year, according to figures sent by the World Bureau of Metal Statistics”, Gheorghe Dobra also stated.