Utility companies are generally seen as sedate and unimaginative, and at first glance Romania’s Electrica may appear to be no exception. But take another look six months from now and, if all goes as planned, Electrica will have completely transformed itself.
In a radical break with its past, Electrica, S.A. is about to split itself up, sell itself off, and, simultaneously, branch out -into telecommunications and the internet, no less. The undertaking is ambitious but carefully thought out and prepared.

Electric power distribution and supply will be left in the hands of eight different entities, created through the consolidation of Electrica’s present 42 units and to be privatized by the beginning of next year. Electrica’s general manager, Silviu Lucian Boghiu, notes that these eight new firms will be made legally independent of the mother company. “Thus,” he explains, “they will become more attractive to investors.”
At the same time, Mr. Boghiu adds, “about 35% of our personnel will become part of a service company, whose main shareholder will be Electrica, S.A., providing energy-related services for the entire Romanian market, but especially for Electrica.”

Having spun off electric power distribution and supply, the core company will then tackle a new and unprecedented undertaking. “Another priority for us is to build a telecommunications company in the year to come,” says Mr. Boghiu. “This company will offer a full range of services, not only communications, but also internet and cable. Our target is to become the second-largest telecommunications operator in the Romania market.”
Although the new company will have a “very diversified shareholding,” according to Mr. Boghiu, Electrica will need a strategic partner which has yet to be chosen. The qualities being sought “are related to financing and marketing,” he says, although another important criterion is having “a very good position in the international telecommunications market.”
“If we are strong enough and we have powerful investors behind us, we will expand,” Mr. Boghiu warns future telecommunications rivals. His targets for expansion? “Yugoslavia and Bulgaria, even Greece.”