Transelectrica’s general manager believes a rebound in energy consumption is unlikely and therefore expects a difficult 2H09. According to the management, energy consumption declined roughly 10% in 1H09. Also, demand from the residential segment remained roughly constant while consumption by large industrial consumers showed an abrupt decline in 1H09. Our view:We expect the news to have a slightly negative impact as the market had previously anticipated a pick-up in demand in 2H09. Overall we believe these developments will have a negative impact on 2009 results although we expect the Romanian energy regulator to allow positive compensation at the next tariff setting in 2010.