The Romanian government has recently approved a restructuring plan that had been submitted by the state-owned electricity utility Renel, Reuters reports. However the decision still requires the approval of the country’s parliament.

Under the terms contained in the proposal, Renel will be split into three major units, the National Electricity Company, The National Nuclear Electricity Company and Regie Autonome for Nuclear Activities (RAAN). RAAN includes the Romag RA heavy water production plant, which supplies heavy water to the Cernavoda nuclear reactor.

A new bill covering the restructuring of the energy sector is expected. A regulatory body will also be set up to control tariffs and to adjust the production costs between nuclear, thermal and hydro generated electricity.

Under Renel’s restructuring plan, the existing hydropower stations and transmission and distribution companies will remain under government control. Other entities, separated from Renel, will be prepared for privatization. Hydropower plants under construction may be leased to foreign investors.

It is expected that the privatization process should be completed within two years. The government claims that the newly restructured utility will attract strategic investors. The newly created companies will operate on a commercial basis, it said.