Annual Report • Aug 17, 2022
Annual Report
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Societatea Energetica Electrica S.A. 9, Grigore Alexandrescu str. 010621 District 1, Bucharest, Romania Phone: 021-208 59 99 Fiscal Registration Certificate RO 13267221 J40/7425/2000 Share capital: 3,464,435,970 RON www.electrica.ro
| Financial Results* | H1 2022 (RON mn.) |
H1 2021 (RON mn.) |
Δ RON mn. |
|---|---|---|---|
| Operating income | 5,933 | 3,339 | 2,595 |
| Operational expenditure | (6,080) | (3,224) | (2,856) |
| EBITDA | 101 | 357 | (256) |
| Operating profit | (147) | 115 | (262) |
| Net profit/loss of the period |
(176) | 76 | (252) |
The main results are presented below and are extracted from the consolidated condensed interim financial statements not reviewed nor audited as of and for the period ended 30 June 2022:
"The year 2022 continues to be marked by the series of transformations on the external and internal energy market that started in 2021 and had a significant impact on the operations of all energy players
The financial results of the Electrica Group in H1 2022 show that maintaining the efforts of the companies in the group to implement effective measures specific to each area of activity has led to a financial recovery/a reduction of the previous loss, thus demonstrating that despite the unfavorable market context, it remains a stable player, oriented toward continuous adaptation to the conditions of a market exposed to multiple challenges.
In the supply area, the company has identified the best ways to mitigate the negative effects generated by the market instability, managing, in parallel, the impact of the measures provided by GEO 27/2022 on the capping of electricity and natural gas prices. At the same time, Electrica supply continued the process of accelerating the digitalization process, investing in solutions to increase customer satisfaction, meant to optimize, at the same time, the activity at the company level.
The supply company within the Electrica Group has also acted in the direction of developing the B2B customer portfolio, especially in the photovoltaic projects area, registering a significant growth in this segment. In S1 2022, the company offered consultancy and customized solutions to strategic clients at national level, belonging to several types of industries.
In the distribution area, DEER continues the ambitious investment program carried out since the beginning of the previous regulatory period, aiming to modernize the network infrastructure and accelerate the expansion of smart metering on a large scale, despite the economic and geopolitical challenges that influence the capacity of equipment needed for investment. The investment program also includes five projects totaling approximately 60 million euro, financed from European funds from the large infrastructure Operational Program, with an eligible value of approximately 49 million euro, oriented toward the modernization of transformation stations, digitalization, implementation of smart meters and specialized hungry systems, intended for the management of network assets as well as measurement groups. The projects are carried out as multi-annual investments, their completion being planned for the end of 2023.
In the area of services, Electrica Serv In the service area, Electrica Serv continued the approach to reach the Group's objective of contributing to sustainable development, in the context of the European Green Deal, and implemented a series of projects representing the installation of photovoltaic plants. In H1, 11 photovoltaic power plants with an installed power of almost 3,418 MWp were completed and put into operation, and for the next period we will continue the development of this new business line.
The financial results in H1 2022 demonstrate the Group's above-average performance in difficult market conditions and encourage us to continue our strategic efforts to maintain a top position in the field in which we operate."
The support documents for H1 2022 results are available on the Electrica's website at the following link.
Contact details: Electrica Investor Relations E-mail: [email protected]
CEO Chirita Alexandru-Aurelian Societatea Energetica Electrica S.A. 9, Grigore Alexandrescu str. 010621 District 1, Bucharest, Romania Phone: 021-208 59 99 Fiscal Registration Certificate RO 13267221 J40/7425/2000 Share capital: 3,464,435,970 RON www.electrica.ro
This report does not represent a recommendation/ offer/ invitation to contract or buy shares. This report contains information regarding preliminary key-operational indicators of Electrica Group's companies, so this forward-looking information is neither guarantees for future performance nor a forecast for the real data or otherwise, being risky or uncertain. The real results could differ significantly from the data in this report.
Therefore, Electrica undertakes no responsibility/liability for any damages that may occur from using this forward-looking information. The data in this report are selective and may requires updates, revisions and changes in the certain circumstances. Electrica assumes no obligation or commitment to publish any update, revision or modification of any information contained in this report, unless required by the applicable law.
Starting with 17 August 2022, 18:30 (Romanian time), the condensed consolidated interim financial statements as at and for the sixmonth period ended 30 June 2022 prepared in accordance with the International Accounting Standard 34 – "Interim Financial Reporting", as adopted by the European Union, and the Board of Directors' consolidated report for Q1 2022 will be available, in Romanian and English, in electronic format, on Electrica's website, at www.electrica.ro, in the "Investors > Results and Reports > Financial Results" section, at https://www.electrica.ro/en/investors/results-and-reports/financial-results/. The above-mentioned documents could be also available, in hardcopy, at the Company's headquarters in Bucharest, 9 Grigore Alexandrescu Street, District 1, which is open from Monday to Thursday between 08:00- 17:00 (Romanian time), and on Fridays between 08:00-14:30 (Romanian time), excepting the legal holidays.
*The amounts are rounded to the nearest million
(based on the condensed consolidated interim financial statements prepared in accordance with IAS 34)
REGARDING THE ECONOMIC AND FINANCIAL ACTIVITY OF SOCIETATEA ENERGETICA ELECTRICA S.A.
in compliance with art. 67 of the Law no. 24/2017 on issuers of financial instruments and market operations and with annex no. 13 to ASF Regulation no. 5/2018 and the Bucharest Stock Exchange Code
for the six months period ended 30 June 2022
Free translation from the Romanian version of the report, which will prevail in the event of any discrepancies with the English version.
| 1. | Identification Details Of The Issuer 4 | |
|---|---|---|
| 2. | Highlights 5 | |
| 2.1. | Key events from January to June 2022 (S1 2022) 5 | |
| 2.2. | Summary of financial indicators 39 | |
| 2.3. | Risks and uncertainties 40 | |
| 3. | Organizational Structure 42 | |
| 3.1. | Group Structure 42 | |
| 3.2. | The main elements of the Strategic Plan for the period 2019 – 2023 43 | |
| 3.3. | Key information by segments 44 | |
| 4. | Shareholders' Structure 48 | |
| 5. | Operational Results 50 | |
| 6. | Financial position 59 | |
| 7. | Statement of cash flows 63 | |
| 8. | Outlook 65 | |
| 9. | Capital Expenditures 70 | |
| 10. | Statements 71 | |
| 11. | Annexes 72 | |
| 11.1. | Economic and financial indicators of Electrica Group as of 30 June 2022 according to Annex 13/ASF Regulation no. 5/2018 72 |
|
| 11.2. | Details of the main investments of Electrica Group during the first semester of 2022 72 | |
| 11.3. | Litigations 75 | |
| Glossary 98 |
Report date: 17 August 2022
Company name: Societatea Energetica Electrica S.A.
Headquarters: no. 9 Grigore Alexandrescu Street, 1st District, Bucharest, Romania
Phone/fax no: 004-021-2085999/ 004-021-2085998
Sole Registration Code: 13267221
Trade Registry registration number: J40/7425/2000
LEI Code (Legal Entity Identifier): 213800P4SUNUM5AUDX61
Subscribed and paid in share capital: RON 3,464,435,970
Main characteristic of issued shares: 346,443,597 ordinary shares of 10 RON nominal value, out of which 6,890,593 treasury shares and 339,553,004 shares issued in dematerialized form and freely transferable, nominative, tradable and fully paid
Regulated market where the issued securities are traded: the Company's shares are listed on the Bucharest Stock Exchange (ticker: EL), and the Global Depositary Receipts (ticker: ELSA) are listed on the London Stock Exchange
Applicable accounting standards: International Financial Reporting Standards as approved by the European Union; interim financial statements based on the International Accounting Standard IAS 34 – Interim Financial Reporting
Reporting period: 2022 Half-year (period 1 January – 30 June 2022)
Audit/Review: The condensed consolidated interim financial statements as of and for the six months period ended 30 June 2022 are reviewed by an independent financial auditor
| Ordinary Shares | GDR | |
|---|---|---|
| ISIN | ROELECACNOR5 | US83367Y2072 |
| Bloomberg Symbol | 0QVZ | ELSA: LI |
| Currency | RON | USD |
| Nominal Value | RON 10 | - |
| Stock Market | Bucharest Stock Exchange REGS | London Stock Exchange MAIN MARKET |
| Ticker | EL | ELSA |
Source: Electrica
The Group's core business segments are the distribution of electricity to users, the supply of electricity to household and non-household consumers, the segment of services related to the external distribution networks as well as the segment regarding the production of electricity from renewable sources.
Electrica's distribution segment operates through its subsidiary Distributie Energie Electrica Romania ("DEER") and it is geographically limited to 18 counties from the hystorical regions Muntenia and Transylvania. The Group holds exclusive distribution licenses for these regions, which are valid until 2027, and may be extended for another 25 years.
The electricity and natural gas supply segment operates through Electrica Furnizare ("EFSA") subsidiary, and the main activity is the supply of electricity to final customers, on the universal service segment and as supplier of last resort, as well as a competitive supplier, all over Romania.
The Group holds an electricity supply license covering the entire territory of Romania, which was renewed in 2021 for a period of 10 years. In order to extend the economic activities of Electrica Furnizare S.A. (EFSA) in Hungary, the electricity trading license was granted by the Hungarian Energy and Public Utilities Regulatory Authority (MEKH) for Electrica Furnizare, by Decision no. H879/2022. Also, the Group holds a natural gas supply license valid until 2022.
Within the external electricity network maintenance segment, SERV provides maintenance, repair and various services to group companies (car rental, rental of buildings etc.) as well as repairs, maintenance and other energy related services to third parties.
The group entered the segment of electricity production, especially from renewable sources, starting with the year 2020 through the purchase of a photovoltaic park with an installed capacity of 7.5 MW (operating capacity limited to 6.8 MW), and during the year 2021 acquired four production park projects (three photovoltaic - with an installed capacity of 163.5 MW and a wind farm with an installed capacity of 121 MW, with an attached electricity storage capacity of 60 MWh).
The consolidated report of the administrators for S1 2022 contains the main events that took place in the first 6 months of the current financial year (detailed below) and their impact on the half-yearly accounting reporting is included in both the performance and the financial position of the Group. Significant events subsequent to the reporting date are also included.
During the six months period ended 30 June 2022 the following main events took place:
Within the OGMS, ELSA's shareholders have mainly approved the following:
The shareholders who participated in the EGMS approved a ceiling of up to RON 900,000,000 for the bond issues of Electrica for the period 2022-2023, as well as the empowerment of ELSA's BoD to take all measures to carry out and complete the bond issuance operations.
On 15 April 2022, ELSA's BoD decided to convene the Extraordinary General Meeting of Shareholders (EGMS) ELSA, for 9 June 2022. During the EGMS, ELSA's shareholders have mainly approved the following:
The initial deadline for submitting proposals, 21 February 2022, was extended until 14 May 2022. The amendment proposals can be found on the company's website, together with the Articles of Incorporation in the form proposed by the Board of Directors of the Company, by accessing the following link:
https://www.electrica.ro/en/investors/corporate-governance/corporate-policies/ . On 15 July 2022, ELSA' BoD organized a workshop with shareholders to present these proposals.
During the meeting of 2 February 2022, Board of Directors ELSA approved the implementation of a reorganization process of the Company's personnel structure and the initiation of the collective dismissal procedure, the modification of the organizational structure of the Company with effect from 01 March 2022, the notification of the relevant authorities and of the Trade Union regarding the final decision of the Company to implement the reorganization process and to carry out the collective dismissal of the employees who currently occupy the positions which will be abolished, as well as the transmission of all data and information stipulated by art. 72 of the Labor Code, including the result of the information and consultation process with the Trade Union.
Regarding the necessity and opportunity of carrying out the reorganization process of the Company's personnel structure, it is mentioned that it is part of a larger complex of measures considered by the executive management and the Board of Directors of the Company, regarding the global transformation process of the Electrica group, to prepare both Electrica and each of its subsidiaries, to act agilely in a field marked by volatility, uncertainty and complexity, to face the challenges in the internal and external environment and to strengthen their financial performance, on the basis of which they can transpose the development projects about which shareholders and investors are informed in accordance with the transparency principles adopted by the Company.
The organizational measures provided in the Reorganization Plan have as objectives the resizing and the redefining of the Company's personnel structure, as well as of its organization and functioning mode, for the optimal correlation between the number of employees and the functions performed, in accordance with the current activity conditions on the energy market. Through the implementation of the organizational transformation project, a reduction from 120 positions to 85 positions was obtained and a flattened structure by reducing the number of hierarchical levels. As a result of this approach, the number of organizational entities within the Company decreased by 19%, while the number of management / coordination positions decreased by 25%.
Also on 15 April 2022, ELSA's BoD approved the revised version of the Electric Group Strategy for 2019-2023. The update of the Electrica Group Strategy enhances the benefits obtained through the transformation processes carried out in the distribution and supply companies and addresses the opportunities in order to prepare the Group for a sustainable growth. The revised strategy emphasizes the digital agility and transformation of the business, as well as the expansion of the business in complementary areas. The main elements of it can be found here: https://www.electrica.ro/en/investors/strategy-overview/key-elements-ofthe-2019-2023-electrica-group-strategy/.
During the meeting on 5 May 2022, the Board of Directors of the Company (BoD) decided to revoke Mrs. Georgeta-Corina Popescu from the position of General Manager, without cause, starting with 16 May 2022 and the appointment of Mr. Chiriţă Alexandru-Aurelian, as interim General Manager, starting with 17 May 2022, for a period of 3 months, or until the appointment of a new General Manager, respectively until the revocation.
value of RON 190,000 th until 31 July 2022.
SOCIETATEA NEW TREND ENERGY SRL up to the value of RON 2,050 th until 13 June 2023.
On 6 April 2022, the final updated consolidated table of the debts owed by Oltchim S.A. was published in IPB no. 6100, updated as a result of (i) the distributions made on account of the receivables, (ii) the issued court decisions (iii) the decision of the European Tribunal of Justice in Luxembourg, pronounced on 15 December 2021, in case T565/19 which remained final. In the final consolidated table, updated as indicated above, Electrica is registered with the amount of RON 116,058,538, representing the secured claim, with the right to vote.
Electrica's receivable was modified because of the decision of the European Tribunal of Justice in Luxembourg, pronounced on 15 December 2021, in case T565/19, a decision that partially annulled the Decision of the European Commission no. C (2018) 8592 final, dated 17 December 2018, which established a series of measures regarding the recovery by Romania of the state aid granted to Oltchim SA, in violation of art.108 paragraph 3 of the TFEU, through some companies, including Electrica. In its ruling, the European court annulled several measures to recover state aid established by the European Commission, including Measure 3, which also refers to the total amount of RON 554,959,671.97 (RON 45,106,237.96 representing the secured debt and the amount of RON 509,853,434.01 representing the unsecured debt), considered state aid with which Electrica was listed in the table of debts.
The decision is final.
File ARB-5670 - Borislavschi (RO) vs Energetica Electrica (RO)
On 7 February 2022, the dispute that makes the object of file no. ARB-5670 - Borislavschi (RO) vs Electrica (RO), pending before the International Court of Arbitration in Vienna, was settled amicably by concluding a transaction.
File no 371/33/2017
On 28 March 2022, the dispute between DEER and D.G.R.F.P. Cluj Napoca - A.J.F.P. Maramures and ANAF which is the subject of file no. 371/33/2017, was definitively resolved by the High Court of Cassation and Justice, by admitting the appeal declared by DEER against the civil sentence no. 163 of 8 July 2019, pronounced by the Cluj Court of Appeal, the partial annulment of the appealed sentence and the annulment of Decision no. 275 of 31 October 2016 regarding the settlement of the DEER appeal, of the Taxation Decision no. F-MM 180 of 30 March 2016 (total amount 32,295,033 RON) and of the Fiscal Inspection Report no. F-MM 160 of 30
March 2016 and for the additional profit tax for 2009 and related accessories, maintaining the other provisions of the appealed sentence and rejecting the appeals declared by the defendants D.G.R.F.P. Cluj-Napoca - Maramures County Administration of Public Finance and the National Agency for Fiscal Administration (ANAF) against the same sentence, as unfounded. We mention the fact that, by the decision of 8 July 2019, the court admitted in part the action filed by the plaintiff Societatea de Distributie a Energiei Electrice Transilvania Nord SA (currently DEER), in contradiction with the defendants D.G.R.F.P. Cluj Napoca and ANAF, partially annulled Decision no. 275/31.10.2016 regarding the settlement of the appeal, with the consequence of partially admitting the appeal, partially annulled the Tax Decision no. F-MM 180 of 30 March 2016 and the Fiscal Inspection Report no. F-MM 160 of 30 March 2016, respectively regarding the additional payment obligations established in charge of the plaintiff, consisting of VAT for the period 01 December 2009 – 31 August 2015 and their ancillary obligations, respectively interest / increase of delay and penalties related to VAT, maintaining, for the rest, the contested acts, including regarding the additional payment obligations consisting in profit tax for the period 01 January 2009 – 31 December 2014 and its ancillary obligations, respectively interest / increase of delay and penalties related to the profit tax.
On 31 March 2022, the High Court of Cassation and Justice definitively resolved case no. 192/2/2015 and dismissed the claim. The object of case no. 192/2/2015 is: - annulment of the Order of the President of ANRE no. 146/2014 on establishing the regulated rate of return applied to the approval of tariffs for the electricity distribution service provided by concessionaire distribution operators starting with 1 January 2015 and the repeal of art. 122 of the Methodology for establishing the tariffs for the electricity distribution service, approved by the Order of the President of ANRE no. 72/2013; - as a direct consequence of the total annulment of the Order of the President of ANRE no. 146/2014, the total annulment of (i) the Order of the President of ANRE no. 156/2014 on the approval of specific tariffs for the electricity distribution service and the price for reactive electricity, for Societatea Comerciala "Filiala de Distributie a Energiei Electrice Electrica Distributie Transilvania Sud" - S.A., (ii) ANRE Order no. 155/2014 on the approval of specific tariffs for the electricity distribution service and the price for reactive electricity, for Societatea Comerciala "Filiala de Distributie a Energiei Electrice Electrica Distributie Transilvania Nord" - S.A, (iii) Order of the President of ANRE no. Order no. 154/2014 regarding the approval of the specific tariffs for the electricity distribution service and of the price for reactive electricity, for Societatea Comerciala "Filiala de Distributie a Energiei Electrice Electrica Distributie Muntenia Nord" - S.A. The case ELSA-ANRE no. 317/2/2015 regarding the annulment of the Order of the President of ANRE no. 154/2014 has been attached to case no. 192/2/2015.
During the reporting period and until the date of this report, ELSA published 20 announcements, according to art. 108 of Law no. 24/2017, reporting transactions concluded between OPCOM - DEER, OPCOM - EFSA, DEER - EFSA, EFSA - Transelectrica, EFSA - CEO, EFSA – Nuclearelectrica in this period, whose cumulated value in the case of each announcement case exceeds the threshold of 5% of ELSA's net assets, calculated on the basis of Electrica's individual financial statements for 2021, respectively the value of RON 206,175,420.
Also, on 26 January 2022 ELSA published the Auditor's report regarding the transactions reported in H2 2021 according to Art. 108 Law 24/2017 (R), and on 29 July 2022 published the Auditor's report regarding the transactions reported in H1 2022 according to Art. 108 Law 24/2017 (R).
All these announcements and auditor's reports can be found on ELSA's website, at this address: https://www.electrica.ro/en/investors/results-and-reports/current-reports-art-108/.
The following are presented the relevant events that took place at the Group level during the period between the closure of H1 2022 and the date of this report.
February 2022 concluded by EFSA and ING Bank NV, SE Electrica SA as guarantor, which eliminates the possibility of using the Credit Facility for the purpose of issuing guarantee instruments and the date of final repayment, respectively the period of draw will not be later than 16 September 2022.
At the end of 2020, Electrica has successfully completed the merger of the three electricity distribution companies within the Group. Starting with 1 January 2021, the new company Distributie Energie Electrica Romania S.A. (DEER) becomes the most important electricity distribution operator at national level, with a coverage of 40.7% of the Romanian territory, which serves over 3.8 mn network users.
By implementing the merger, medium and long-term benefits could be obtained for all stakeholders.The current priorities for the distribution segment are:
During 2021, the new company Distributie Energie Electrica Romania S.A. (DEER), created by the merger of the three electricity distribution companies within the Group, started the implementation of a multi-annual legal postmerger integration program, having as objectives the continuous improvement in the operational area and building a performance based culture within the Electrica Group, in a customer-centric paradigm, keeping costs under control. The long-term goal of the management team is a corporate cultural transformation of the organization, focused on efficiency and performance, so as to ensure the sustainability of the business.
In this approach, efforts to maximize efficiency potential focus on three relevant areas:
ANRE has issued documents for the regulatory framework that requires additional efforts from distribution operators in order to comply with the new requirements:
and the ex-ante price established by ANRE for the year 2021 between 1 April 2022 and 31 December 2022, which will favorably impact the net result for the distribution segment in the remaining period of 2022.
by bank loans, intended for the purchase of electricity to cover network losses, compared to the costs recognized ex-ante in the distribution/ transmission tariffs electricity:
and includes:
ANRE Order no. 24/2022 on amending the Regulation for granting licenses and authorizations in the electricity sector, approved by ANRE Order no. 12/2015 - in force starting with 25 March 2022
elimination of the legal ban on issuing a single license to the electricity market operator on the Romanian electricity market.
It was published ANRE Decision no. 491/30.03.2022 regarding the granting of the license of the market operator of the Romanian Commodity Exchange
iii. Order issued:
ANRE Order no. 17/02.03.2022 Order amending and supplementing the Regulation on the connection of users to electricity networks of public interest, approved by ANRE Order no. 59/2013 in force starting with 4 March 2022
ANRE Order no. 81/2022 - order for amending and supplementing the Regulation on the connection of users to electricity networks of public interest, approved by ANRE Order no. 59/2013 - in force since 17 June 2022
The order enters into force on the date of publication and applies from 1 October 2022.
On the first date of the transmission to ANRE of the network development plan for 5, respectively 10 years, which is subsequent to the date of entry into force, each DSO sends to ANRE a proposal for:
issuance of technical connection approval prior to the construction of the electricity generation facility, for prosumers of electricity from renewable sources, the DO issues technical connection approval before the construction of the electricity generation installation, in compliance with the provisions of the normative acts specific to the respective financing programs.
ANRE Order no. 82/2021 for the amendment and completion of the Regulation for the supply of electricity to final customers, approved by ANRE Order no. 235/2019 and the abrogate of ANRE Order no. 130/2015 regarding the approval of the Procedure regarding the electricity supply of the DSO own consumption places – in force from 1 July 2021 (except for the provisions of art. I points 25-27, 33 and 34 which enter into force on 1 July 2022):
for domestic customers in the period 1 February 2022 31 March 2022, the final invoiced price of electricity is capped at 0.8 RON/kWh, VAT included, (compared to 1 RON/kWh), of which the price component of energy is maximum 0.336 RON/kWh (compared to 0.525 RON/kWh);
for non-household customers in the period 1 February 2022 31 March 2022, the final billed price of electricity is capped at the minimum of 1 RON/kWh, VAT included, of which the energy price component is a maximum of 0.525 RON/kWh
reduction of the average power per settlement interval from 10 MW to 5 MW, for a better profiling of the end customers offers;
the possibility for the initiator to opt for the variation of the contracted power per settlement interval with a maximum of 0.5 MW per settlement interval;
ANRE Order no. 73/2022 regarding the modification of ANRE Order no. 65/2022 for the approval of the Regulation on the organized framework for contracting electricity by large final customers - in force starting with 12 May 2022
ANRE Order no. 79/2022 on the approval of the Regulation on the organization and functioning of the market for fixed-term contracts organized by the company Bursa Romana de Marfuri S.A. in force from 10 June 2022
ANRE Order no. 92/2022 - order regarding the modification and completion of the Regulation for calculation and settlement of imbalances of the parties responsible for balancing - single imbalance price, approved by ANRE Order no. 213/2020 and for the modification of some orders of ANRE - in force from 1 July 2022.
At the end of the first quarter of 2022, the operator Distributie Energie Electrica Romania (DEER) made and put into operation investments amounting to RON 122.6 mn, representing 21% of the value of the commissioning program planned for 2022 (RON 587.1 mn, of which RON 558.5 mn plan for 2022, and RON 28.6 mn values related to 2021 plan); RON 91.3 mn from the 2022 plan and RON 17.0 mn recoveries related to 2021 and 14.3 mn additional works compared to the 2022 plan, resulting from legislative changes regarding the connection. For the accomplishment of some additional works compared to the plan, for the connection of the users, expenses of RON 46.6 mn were estimated in CAPEX, considering the legal requirements introduced by the Emergency Ordinance no. 143/28.12.2021 for the amendment and completion of the Law on electricity and natural gas no. 123/2012, as well as for the modification of some normative acts.
In 2022, with an impact on the activity of supplying electricity and natural gas, the following normative acts were adopted:
prosumers: introduction of quantitative compensation (compared to previously only financial compensation), increase of power limits.
GEO no. 118/2021 regarding the establishment of a compensation scheme for the consumption of electricity and natural gas for the cold season 2021-2022, approved with modifications and completions by Law no. 259/2021:
are provided, with the application between 1 February and 31 March 2022 the following amendments and completions of GEO no. 118/2021:
increasing the consumption margin for granting compensation, from 300 kWh/month (+10%) to 500 kWh/month (+10%) for electricity and from 200 m3/month to 300 m3/month for natural gas;
GEO no. 27/2022 regarding the measures applicable to final customers in the electricity and natural gas market during the period 1 April 2022— 31 March 2023, as well as for the modification and completion of some normative acts in the energy field:
the application period of the support scheme (ceiling type) is 1 year, respectively 1 April 2022 31 March 2023.
100 th and RON 400 th if we do not inform the final clients, if we do not keep differentiated/segmented the monthly records of the clients, we do not identify the clients in order to apply the ceilings or if we do not send the documents requested by ANRE.
The main new elements are the following:
a single invoice form will be introduced, elaborated by joint Order of ANRE and ANPC;
final electricity customers, who do not benefit from capping, are invoiced the minimum of the price from the supply contract in force and the final price resulting from the application of the GEO;
final natural gas customers are billed the minimum of the contract price, the capped final price and the price resulting from the application of the GEO.
GEO no. 112/2022 regarding the institution of measures to stimulate investments with financing from nonrefundable external funds in the field of energy efficiency, renewable energy resources for large enterprises and small and medium-sized enterprises, green energy from renewable sources intended for local public authorities, as well as some measures in the field of intelligent specialization, as well as for the modification and completion of some normative acts:
regulates the general framework for the establishment of energy efficiency measures/use of renewable energy sources for large enterprises and SMEs with financing from non-reimbursable external funds allocated within the Large Infrastructure Operational Program;
amends and completes GEO 27/2022 with provisions regarding the elaboration and approval by ANRE with the consultation of ANPC of the mandatory minimum content of natural gas/electricity invoices so that the invoices contain correct, transparent, clear, legible and easy-to-understand information, which offer household customers the opportunity to adjust their own consumption and compare the commercial conditions of supply, respectively the suppliers have the obligation to implement in the computer system the provisions regarding the unitary invoice starting with the consumption in April 2023.
Law no. 248/2022 regarding the approval of the Government Emergency Ordinance no. 143/2021 for the amendment and completion of the Electricity and Natural Gas Law no. 123/2012, as well as for the modification of some normative acts.
During the reference period, at the level of the regulatory framework, the following changes and completions were registered:
the process of changing the supplier by going through the necessary administrative and technical stages and through which customers will be able to contract a new supplier;
surplus is carried forward for a maximum of 24 months - after this period, the unused quantity will enter the process of financial regularization.
transmission tariff - the component for extracting electricity from the network is higher by 13.8% (TL is – 25.57 RON/MWh) compared to the first quarter of 2022.
established reporting models with the quantity broken down for each month and category of consumers and monitoring models with the level of fulfillment of the natural gas storage obligation).
the possibility of introducing initiatory offers by producers participating in the market.
the removal of the specification according to which the final large customer of electricity includes the transport and system operator and the distribution operators who purchase, individually or through aggregation, electricity to cover their own technological consumption, they can participate in the market from the position of final customer.
ANRE Order no. 72/2022 for the approval of the Regulation on the storage of natural gas in the natural gas transport system
ANPC Order no. 155/2022 – Order for the approval of the Procedure for establishing and applying the sanction to the turnover resulting from the control activity applied between 1 April 2022 and 31 March 2023 and for the approval of the instructions regarding the work procedure.
ANRE Order no. 76/2022 on the approval of the Performance Standard for the underground natural gas storage service
of limitations and /or unplanned interruptions and the resumption of the provision of the underground gas storage service), IP3 (notification of planned limitations and/or interruptions and the resumption of the provision of the underground gas storage service), IP4 (settlement of requests/reports/complaints regarding the provision of the underground gas storage service gn, other than those treated separately in this standard), IP5 (Tel Verde), IP6 (realization of the obligation to pay the compensations due in accordance with the provisions of the performance standard for the underground natural gas storage service)
ANRE Order no. 79/2022 — Order for the approval of the Regulation on the organization and operation of the electricity futures contract market, organized by Societatea Bursa Romana de Marfuri — S.A.
establishes the organized framework for electricity trading on the electricity futures contract market, through electronic trading platforms managed by the Romanian Commodity Stock Exchange - S.A. (the simple competitive trading mechanism - for the launch of the standard product for trading, the participant sends an initiating order to the BRM, the double competitive trading mechanism
the launch of the standard products for trading is done on the initiative and by the BRM so that they are available for trading at any time consecutive term contracts for: the first 6 calendar months, the first 5 calendar quarters, the first 3 calendar semesters, the first 2 calendar years).
ANRE Order no. 80/2022 - Order for the modification and completion of some orders of the president of the National Energy Regulatory Authority.
the Network Code for the National Natural Gas Transmission System is amended - URs have the obligation to enter on day D+1, for gas day D-1, sales and purchase orders in the sense and within the limit of the daily imbalance communicated by the OTS, respectively sale in case of surplus and purchase in case of deficit.
the Methodology for reserving transport capacity for Isaccea - Negru Voda and Isaccea 1 - Negru Voda 1 is modified.
ANRE Order no. 91/2022 — Order for the approval of the Regulation on the last resort supply of electricity - have been unified in a single regulation Regulation on the designation of last resort suppliers of electricity - Ord. ANRE no. 188/2020, Regulation on the takeover by suppliers of last resort of the places of consumption of end customers who have not secured the supply of electricity from any other source - ANRE Ord. no. 242/2020 and the framework contract for the supply of electricity to final customers taken over by the supplier of last resort.
the introduction of the obligation of the SoLR that has the largest market share in a network area, to take over the places of consumption that, on the date of entry into force of ANRE Order no. 91/2022, do not have a supply contract, and which are not disconnected;
the introduction of an alternative system for the nomination of SoLR that automatically takes over clients consisting of a monthly rotation system. Thus, for this purpose, the SoLR list is established in descending order of market share, each SoLR in the list being nominated in turn, monthly, to automatically take over the customers who are left without a supplier that month. For periods when no support measures are imposed by primary legislation, the nomination system implies the obligation of the SoLR to transmit the final price at least 7 days before the month for which the nomination is made, so that the SoLR Nomination List is known , within a period that allows the transmission of the takeover request;
the introduction of automatic takeover by the nominated SoLR of non-domestic customers with a power approved by the technical connection notice/connection certificate of no more than 1 MVA, in the event of termination of the electricity supply contract by reaching the deadline or by termination by the current supplier ;
limiting the period in which a customer can be in the portfolio of an SoLR, namely 12 months in the case of household customers and non-household customers with a power of up to 1 MVA, and 6 months in the case of non-household customers with a power of over 1 MVA. 30 days prior to the date of termination of the contractual relationship, SoLR notifies customers of the termination of the supply of electricity, or as the case may be, the extension of the supply period, specifying the period for which it ensures the supply of electricity. If at the end of the period, clients have not been able to conclude a contract in the competitive market, they can still benefit from the services of an SoLR if they so request.
ANRE Order no. 90/2022— Order on the amendment and completion of the Order of the President of the National Energy Regulatory Authority no. 52/2021 for the approval of the Monitoring Methodology of the system for promoting the production of electricity from renewable energy sources
ANRE Order no. 94/2022 — Order amending some orders of the president of the National Energy Regulatory Authority in the field of promoting electricity from renewable energy sources
modification of the threshold of electrical power installed in power plants from renewable energy sources belonging to prosumers, from 100 kW to 400 kW per point of consumption (amendment of ANRE Order no. 179/2018)
amending the Regulation on the organization and operation of the green certificate market - ANRE Order no. 77/2017, in the sense of specifying the two major categories of economic operators participating in the green certificates market, the accredited producers of electricity from renewable energy sources and the economic operators with the obligation to purchase green certificates.
ANRE Order no. 92/2022 — Order on the amendment and completion of the Regulation on the calculation and settlement of imbalances of the parties responsible for balancing — single imbalance price, approved by the Order of the President of the National Energy Regulatory Authority no. 213/2020, and for the amendment of some orders of the president of the National Energy Regulatory Authority
the redistribution was reintroduced, i.e. the rules for calculating additional costs/revenues from balancing the system, how to distribute their value to each party responsible for balancing (PRE) and aspects related to the information note on settlement, invoicing and payments are provided.
the reduction from 6 months to 2 months of the term in which the participant can request the correction of the settlement with arguments, from the posting on the dedicated IT platform of the information note for the settlement, which will lead to an increase in the degree of responsibility of the participants in the balancing market.
ANRE Order no. 95/2022 — Order on the amendment and completion of the Order of the President of the National Energy Regulatory Authority no. 15/2022 for the approval of the Methodology for establishing the rules for the sale of electricity produced in power plants from renewable sources with an installed power of no more than 400 kW per place of consumption belonging to prosumers
modify ANRE Order no. 15/2022 in the sense that it brings clarifications regarding the average purchase price of energy produced and delivered by prosumers, in accordance with the provisions of GEO 27/2022, with subsequent amendments and additions, the invoicing method and the elements highlighted in the invoices;
for the energy consumed by prosumers as customers, we have clarifications regarding the final billed price;
for the sale-purchase contract of electricity produced in power plants from renewable energy sources with an installed electric power of no more than 200 kW per place of consumption and delivered to the electricity network - the contract price is the price of the active electricity used by the electricity supplier electricity in the supply contract concluded with the prosumer as a consumer, during the billing period, established according to the methodology;
for the sale-purchase contract of electricity produced in power plants from renewable energy sources with an installed power of more than 200 kW, but not more than 400 kW per point of consumption and delivered to the electricity network - the contract price is equal to the weighted average price recorded in the market for the following day in the month in which electricity was produced and delivered to the electricity network, published by OPCOM.
ANRE Order no. 96/2022— Order for the approval of the Methodology for establishing the mandatory annual quota for the purchase of green certificates
the methodology establishes: the method of calculation of the estimated mandatory annual share of the purchase of green certificates for the following year, the method of calculation of the number of green certificates related to the non-fulfillment of the estimated mandatory annual share of green certificates, for each analysis quarter, by the economic operators with obligation to purchase green certificates, how to calculate the mandatory annual quota for the purchase of green certificates for the year of analysis, how to calculate the number of green certificates related to the non-fulfillment of the mandatory quota for the purchase of green certificates for the year of analysis by economic operators with obligation to purchase green certificates.
provisions were introduced for the exemption from the quarterly and annual legal obligation to purchase green certificates of prosumers and producers who own electricity production units from renewable sources according to the provisions of art. 731 para. (7) from the Electricity and Natural Gas Law no. 123/2012 - increasing the period of transmission of errors in reporting the quantities of electricity billed/supplied, from 15 working days to 18 working days from the date of issuing the decision.
A summary of the main financial indicators is presented below:
In H1 2022, the profit from the electricity supply segment increased by RON 194.9 mn y-o-y, to a profit of RON 212.8 mn;
Revenue from the distribution segment increased by RON 277.5 mn, or 21.7%, to RON 1,558.1 mn (out of which RON 804.7 mn external revenues), compared to H1 2021; the contribution of the electricity distribution segment to the Group's consolidated revenue is of 17.4%;
| Risk description | Mitigation risk actions |
|---|---|
| Ukraine Crysis | |
| On February 24, 2022, Russia invaded Ukraine, marking a sharp escalation of the Russian Ukrainian war that began in 2014 with Russia's annexation of the Crimea peninsula. The invasion generated on the one hand a refugee crisis with the fastest growth in Europe since the Second World War, and on the other hand a global food crisis. The Electrica Group does not own subsidiaries and affiliated entities on the territory of Ukraine, nor does it have any other relevant exposures in the countries directly involved in this conflict. From an operational point of view, the purchases of energy and natural gas are mainly made from the domestic market, availability, provenance and delivery of resources could be influenced by the dynamics of the conflict from region. |
The management's opinion is that these risks have already materialized on the market of natural gas, electricity and petroleum products. The upward trend and volatility recorded in the first 6 months of 2022 may generate consequences that are difficult to estimate at this time. Mitigation of the impact was possible in the supply activity through the compensation and capping measures established at the national level. In the distribution activity, the directly felt impact was visible through the price at which the electricity related to own technological consumption (NL) could be purchased. |
| Market risk | |
| Market risk represents the risk that the change in energy and natural gas prices, the reference interest rate, such as share prices, interest rates or exchange rates, will affect the Group's income or the value of its holdings. |
At the level of the supply activity there are implemented policies, procedures and tools for mitigating market risks to manage and control exposures on the electricity and natural gas market. With this scope, internal projects were started to review the hedging strategy, improving the ability to forecast the demand. There was taken into consideration the adequacy to the reality imposed by the specific markets during this period: the decrease in consumption combined with the increase in purchase prices. |
| Another significant risk factor in this area comes from the lack of production capacities to compensate for extreme scenarios: extremely low temperatures, drought, lack of working fronts for coal, unavailability of primary resources for renewable energy (wind, sun). |
|
|---|---|
| Credit risk represents the risk of financial losses when a counterparty / client does not meet its contractual obligations to pay invoices when they are due. |
The management monitors and examines the current exposure, credit limits and counterparty ratings, established provisions. The current market context implies a significant pressure on the ability of counterparties in the energy market to ensure delivery on time or to pay related compensations. |
| Liquidity risk represents the risk that the Group will not be able to meet its financial obligations when they are due. |
The Group's approach to liquidity management consists in ensuring a sufficient level of liquidity for the payment of due obligations, both under normal conditions and under stress conditions, through the treasury management system through cash pooling and accessing a varied range of credit lines of the type overdraft. Also, the pre-financing of the support scheme for the segmental supply involves a liquidity risk, including the financing of the NL price that will be recovered through future tariffs. The group carefully monitors, through the treasury structures, the impact and effects on the companies' activity and financial results and has adequate resources to continue its operational activity. |
| by local and European legislation. These regulations may be modified or interpreted differently by the local authorities and may affect |
The group makes efforts to optimize operational efficiency in accordance with current and future regulations. The impact of these regulations is close to the |
| This risk is also supported by the legislative history of recent years, which contains a series of laws that significantly changed energy and natural |
maximum range used in the evaluation with immediate consequences in profitability at the group level |
| The Group may record direct or indirect losses resulting from a wide range of factors associated with processes, service providers, technology and infrastructure, and from external factors, such as regulatory or legal requirements and generally accepted standards regarding the best practices in the field. Violation or failure of security and information technology systems may entail the risk of financial loss, interruption of operations or damage to the Group's reputation. |
The group have implemented an operational monitoring system, documented by policies and procedures, which ensures the escalation and remediation of potential operational problems. In order to implement the best practices in the field, the Group will start, in the second semester of 2022, the certification procedures on the 27001 standard: Information Technology, Security Techniques, Information Security Management Systems. |
| Credit and counterparty risk Liquidity risk Legal and regulation risk The energy and natural gas markets are regulated the operational profit margins of the Group. gas prices, capping elements, etc. Operational risk |
As of 30 June 2022, the most significant shareholder of ELSA is the Romanian State, represented by the Ministry of Energy with a share of ownership of 48.79% from the share capital.
| Subsidiary | Activity | Sole registration code |
Headquarters % shareholdings as of 30 June 2022 |
|
|---|---|---|---|---|
| Distributie Energie Electrica Romania S.A. ("DEER") |
Electricity distribution in geographical areas Transilvania Nord, Transilvania Sud and Muntenia Nord |
14476722 | Cluj-Napoca | 99,99999929% |
| Electrica Furnizare S.A. ("EFSA") |
Electricity and natural gas supply |
28909028 | Bucharest | 99,9998415011992% |
| Electrica Serv S.A. ("SERV") |
Services in the energy sector (maintenance, repairs, construction) |
17329505 | Bucharest | 99,99998095% |
| Electrica Productie Energie S.A ("EPE") |
Production of electricity | 44854129 | Bucharest | 99,9920% |
| Electrica Energie Verde 1 S.R.L.* ("EEV1" – former Long Bridge Milenium SRL) |
Production of electricity | 19157481 | Bucharest | 100%* |
| Sunwind Energy S.R.L. |
Production of electricity | 42910478 | Constanta | 60% |
| New Trend Energy S.R.L. |
Production of electricity | 42921590 | Constanta | 60% |
Source: Electrica
*indirect shareholding - Electrica Energie Verde 1 SRL is 100% owned by the EFSA subsidiary
| Associate | Activity | Sole registration code |
Head Office |
% shareholdings as of 30 June 2022 |
|---|---|---|---|---|
| Crucea Power Park S.R.L. | Production of electricity | 25242042 | Constanta | 30% |
| Foton Power Energy S.R.L. | Production of electricity | 43652555 | Constanta | 30% |
The main activities of the Group are the regulated distribution of electricity through operation and development of electricity distribution networks and the electricity supply to end consumers as well as the production of electricity from renewable sources. The Group is the electricity distribution operator and the main electricity supplier in North Muntenia (Prahova, Buzau, Dambovita, Braila, Galati and Vrancea counties), North Transylvania (Cluj, Maramures, Satu Mare, Salaj, Bihor and Bistrita-Nasaud counties) and South Transylvania (Brasov, Alba, Sibiu, Mures, Harghita and Covasna counties) operating with transformer stations and power lines with voltages from 0.4 kV up to 110 kV.
The distribution operator for the three regions (TN, TS and MN), invoices the electricity distribution service to electricity suppliers (mainly to EFSA subsidiary, the main electricity supplier in North Muntenia, North Transylvania and South Transylvania), which further invoices the electricity consumption to end consumers.
EFSA is a supplier of electricity in the competitive market and is also a designated supplier of last resort (SoLR) at national level. The SoLR ensure the supply of electricity to final customers who benefit, under the law, from universal service, non-household customers who have not exercised their eligibility and non-household customers taken over because the supply of electricity is not ensured from any other source.
At the same time, EFSA is designated as a supplier of last resort in the natural gas sector, but only with the possibility of taking over the customers left without a supplier.
Regarding the electricity production segment, it is represented, mainly, by the EEV1 subsidiary, which owns a photovoltaic park in Stanesti, Giurgiu county, with an installed capacity of 7.5 MW (operating capacity limited to 6.8 MW). To this were added, during 2021, four production park projects, purchased by ELSA (three photovoltaic – with an installed capacity of 163.5 MW and a wind farm with an installed capacity of 121 MW, with attached an electricity storage capacity of 60 MWh). Also, in 2021, EPE was established, the company's activity is the production of electricity from renewable sources through the acquisition and development of projects, respectively the operation of electricity generation parks from renewable sources, cumulated with the development and operation of independent solutions storage that he intends to develop in the near future.
The establishment of the new subsidiary together with the investments in the four associates are part of the Electrica Group's strategy, which aims to develop a portfolio of electricity generation capacities from renewable sources (wind and photovoltaic) with a cumulative capacity of 400 MW, in parallel with electricity storage capacity with an installed capacity of up to 100 MW.
The Strategic Plan for the period 2019 - 2023, which reflects the vision of the Board of Directors regarding the management of activities in the interest of stakeholders, in the medium and long term, was formulated following an analysis of the following areas:
The Electrica Group remains dedicated to ensuring the balance between generating value for its customers and maximizing profit for shareholders, while maintaining its ambition to become a regional player in the energy field, within a culture of ethics, integrity and sustainability.
The group wants to optimize the contribution of each company to the financial objectives of the group, through a homogeneous and efficient system for risk management. In this sense, a unitary implementation of the strategy will be ensured, with coordinated strategic projects, focused on achieving the new defined objectives.
Governance and investor relations remain the focus of the Group, with continuous improvement and implementation of best practices in corporate governance and investor relations.
For the period 2019-2023, the key objectives of the Group are:
In addition to the traditional areas of interest, namely electricity distribution, electricity and gas supply and energy services, there is a high interest in developing new activities, based on innovative technology, while continuing to monitor and analyze growth opportunities through mergers or acquisitions. It also aims at a closer relationship with customers, based on the development of skills, but also on an offer of products and services in line with their needs.
At the same time, the improvement of the corporate governance framework continues, with a close follow-up to the Corporate Governance Action Plan established with the EBRD since 2014.
In the distribution segment, as a result of the application, starting with 1 January 2021, of the new unified target organization chart, through which all structures in the area of strategic activities (asset management, energy management, integration program management, ITC&C, strategic project management), financial and support were reunited under a unique coordination at the level of the company resulting from the merger - Distributie Energie Electrica Romania SA (DEER). In the coming years, the process of continuous adaptation and improvement of processes and support technology will continue, as defined by the approved Strategy for the distribution segment.
In the supply segment, the reconfiguration and modernization projects of the IT infrastructure continue at an accelerated pace. Thus, at the beginning of this year, the implementation of the SAP Hana system was carried out and currently we are working on the implementation of the SAP-ISU system and the migration of databases. At the same time, other IT&C projects aim to increase the degree of automation and digitization of internal processes, so that operational costs can be optimized.
In the energy services segment, after elaborating at the end of year 2020 a concept and a plan of measures for operational optimization, organizational and strategic repositioning of Electrica Serv SA, starting with 2021, it was ordered to start the gradual implementation process with a focus on developing new business lines.
In the electricity generation segment, the Group aims to develop a portfolio of electricity generation capacities from renewable sources (wind and photovoltaic) with a cumulative capacity of 400 MW, in parallel with electricity storage capacities with a installed capacity of up to 100 MW.
In April 2022, EFSA is the market leader with a share of 17.23%; is also the leader on the SoLR market, with a
market share of 28.11%, on the competitive market with a share of 13.00% (according to ANRE report for April 2022). In comparison, in 2021, EFSA had a market share in the total electricity market of 18.42%; SoLR market share of 30.59% and a competitive market share of 12.72% (ANRE report for December 2021).
In Q2 2022, the Group supplied 4.1 TWh of electricity to approx. 3.5 mn consumption places (both in last resort and universal service regime and on the competitive market), representing a decrease of 0.10% y-o-y.
Source: Electrica
Figure 2: Analysis of RRAB-OMF result distribution segment to 2022
Source: Electrica
At the beginning of the current PR4 regulatory period, ANRE made a total negative correction of closing the PR3 in the amount of RON (730) mn (nominal terms), respectively RON (665) mn (terms 2018), of which RON (341) mn for meters recognized as investments in RP2 (2008-2013). The meter correction was challenged in court by the distribution subsidiary of the Electrica Group, because in 2013, ANRE recognized the meters in BAR based on the principle of non-discrimination of all distribution operators, although they were not registered as fixed assets. Total negative correction afferent to PR3 in the amount of RON (730) mn (nominal terms) decreased the regulated profitability related to RP4, with an average annual value of RON (146) mn.
Until July 2014, the Romanian State, through its representative (currently, the Ministry of Energy), was the sole shareholder of ELSA. As of 4 July 2014, after the Initial Public Offering, the Company's shares are listed on the Bucharest Stock Exchange (BSE – ticker EL), and the Global Depositary Receipts are listed on the London Stock Exchange (LSE – ticker ELSA).
After the secondary public offer that ended on 3 December 2019, during which a total number of 208,554 new shares were subscribed, with a nominal value of RON 10 and a total nominal value of RON 2,085,540, the ownership structure according to the Central Depository records (Romanian: Depozitarul Central) as of 30 June 2022, is the following:
| Shareholder | Number of shares held |
Stake held (% of the share capital) |
Shares with voting right |
Percent of shares with voting right |
|---|---|---|---|---|
| Romanian State through the Ministry of Energy |
169,046,299 | 48.7948% | 169,046,299 | 49.7850% |
| The European Bank for Reconstruction and Development |
17,355,272 | 5.0096% | 17,355,272 | 5.1112% |
| Electrica (no voting rights) | 6,890,593 | 1.9890% | 0 | 0.0000% |
| Bank of New York Mellon – GDRs | 2,507,216 | 0.7237% | 2,507,216 | 0.7384% |
| Other legal persons | 132,217,903 | 38.1643% | 132,217,903 | 38.9388% |
| Individual persons | 18,426,314 | 5.3187% | 18,426,314 | 5.4266% |
| TOTAL | 346,443,597 | 100.0000% | 339,553,004 | 100.0000% |
Source: Central Depository, Electrica
Note 1: The total shares with voting rights - 339,553,004, representing the total number of shares (346,443,597) without the number of own shares held by Electrica (6,890,593), for which the voting right is suspended
Note 2: Paval Holding, NN Group NV and Allianz SE own, directly or indirectly, between 5% and 10% of the total number of shares with voting right
The shares presented to be held by the Bank of New York Mellon represent the global depositary receipts (GDRs) owned by ELSA shareholders that are traded on the London Stock Exchange (LSE). A global depositary receipt represents four shares. The Bank of New York Mellon is the depositary bank for these securities.
Following the stabilization process after the June 2014 IPO, ELSA owns 6,890,593 of its shares, representing 1.989% of the total share capital at 30 June 2022, with suspended voting rights, which does not entitle ELSA the right to receive dividends.
49
Selected financial information from the condensed consolidated statement of profit or loss – in RON mn:
| Indicator | 30 June 2022 (reviewed) |
30 June 2021 (reviewed) |
Variation (%) |
|---|---|---|---|
| Revenues | 4,628.8 | 3,260.1 | 42.0% |
| Other income | 1,304.3 | 78.5 | 1,560.6% |
| Electricity and natural gas purchased | (4,937.6) | (2,166.6) | 127.9% |
| Construction costs related to concession agreements |
(228.8) | (176.9) | 29.3% |
| Employee benefits | (389.4) | (390.1) | -0.2% |
| Repairs, maintenance and materials | (36.1) | (42.5) | -15.0% |
| Depreciation and amortization | (248.2) | (242.1) | 2.5% |
| Impairment for trade and other receivables, net |
(50.0) | (39.8) | 25.7% |
| Other operating expenses | (189.9) | (165.8) | 14.6% |
| Operating result | (146.9) | 115.0 | - |
| Finance income | 2.3 | 2.1 | 9.2% |
| Finance costs | (59.8) | (13.8) | 333.7% |
| Net finance cost | (57.5) | (11.7) | 392.3% |
| Share of the result of the associates | 0 | - | - |
| Result before tax | (204.4) | 103.3 | - |
| Income tax benefit/(expense) | 28.9 | (27.3) | - |
| Net result | (175.5) | 76.1 | - |
Source: Electrica
Electrica's revenues and other income for the six months period ended 30 June 2022 and 30 June 2021 amounted to RON 5,933.1 mn and RON 3,338.6 mn, respectively, representing an increase of approx. RON 2,594.5 mn, or 77.7%; the variation is generated mainly by the revenues' evolution, but also the operating income evolution, mainly subsidies (represent values to be recovered as a result of the application of the capping of electricity prices) recognized by EFSA. Other operating income registered in H1 2022 compared to H1 2021, an increase of RON 1,225.8 mn, of which RON 1,211.3 mn, recoverable subsidies from the Ministry of Energy, as a result of the application of the mechanism for capping energy prices electricity and natural gas approved by GEO no. 118/2021 with subsequent amendments and GEO no. 27/2022.
On 18 March 2022, it was issued GEO no. 27 related to the application, between 1 April 2022 – 31 March 2023, for new capping schemes for electricity and natural gas as well as the regularization with the new calculation schemes for the period 1 November 2021 – 31 March 2022. The Ordinance also provides the method for implementing these schemes and the settlement mechanism of the amounts granted as support to customers and their recoverability from the State budget including the regularization of the amounts to be recovered based on the new schemes for the period 1 November 2021 up to 31 March 2022.
It should be mentioned that due to the increase in energy price on the international and national markets and the impact thereof on Romanian consumers, starting with 1 November 2021 up to 31 March 2022, support schemes were implemented as approved by GEO no. 118/2021, followed by Law no. 259/2021 and amended by Order no. 130/2021, Order no. 2/2022, and Order no. 3/2022. The following support mechanisms have been put in place: compensation of household consumers for part of the electricity invoices, exemption (until 31 January 2022) of several types of non-household consumers from payment of regulated tariffs and other taxes/contributions, capping the selling price for household and non-household consumers (until 31 January for certain types of non-household consumers, as of 1 February 2022 for all non-household consumers), suspending the invoice payment for vulnerable consumers.
The compensated amounts will be received from the National Agency for Payments and Social Inspection for household consumers and a from the Ministry of Energy for non-household consumers. The amounts should be recovered in 30 days after submitting the required documentation to the National Agency for Payments and Social Inspection or Ministry of Energy.
Source: Electrica
The revenues increased by RON 1,368.7 mn, or 42.0%, being the net effect of the following main factors:
During the six months period ended 30 June 2022, revenues from the electricity distribution segment increased by approx. RON 277.5 mn, or 21.7%, to RON 1,558.1 mn, from RON 1,280.6 mn in the same period of the previous year, as a result of the following factors:
As a result of GEO 27/2022, the distribution tariffs for the year 2022 increased starting on 1 April 2022, to cover the additional costs related to the NL from the year 2021 estimated at a value of RON 363 mn. Thus, starting with Q2 2022, distribution tariffs will be higher by about 28% on average per DEER compared to 2021, in real terms, implicitly the revenues from electricity distribution will be higher, thus covering the difference between the price recognized in the tariffs of 2021 and the one realized/recognized in 2021. With a favorable impact on the operational performance for the distribution segment. The tariffs applicable starting from 1 April 2022 will not change until 1 April 2023, thus the difference between the recognized price for the year 2022 approx. RON 450 per MWh (of which approx. RON 50 per MWh is deferred income) and the actual purchase price for each MWh represents a cash flow deficit in 2022.
Also, at the beginning of the current PR4 regulatory period, ANRE made a total negative correction for the closing of PR3 in the amount of RON (730) mn (nominal terms), respectively RON (665) mn (2018 terms), of which RON (341) mn for meters recognized as investments in PR2 (2008-2013). The meter correction was challenged in court by the distribution branch of the Electrica Group, because in 2013, ANRE recognized the meters in BAR based on the principle of non-discrimination of all distribution operators, although they were not registered as fixed assets. The total negative correction related to PR3 decreased the regulated profitability related to PR4, with an average annual value of RON (146) mn.
Government emergency ordinance no. 27/2022 regarding the measures applicable to final customers in the electricity and natural gas market in the period 1 April 2022 - 31 March 2023, in force from 22 March 2022, approved by Law 206/2022, published on 11 July 2022, provides for the right of operators to distribution to capitalize the additional cost for NL coverage, financed from bank loans starting from April 2022 and the recognition of these costs in tariffs according to the ANRE Methodologies:
ANRE submitted the cost capitalization procedure to public debate, and the Ministry of Finance must establish the financial, accounting and fiscal framework for recording capitalized costs.
Regarding the supply segment, the revenue from the electricity supply and natural gas increased by RON 1,185.0 mn, or 44.8%, to RON 3,832.7 mn, from RON 2,647.7 mn in H1 2021.
The variation of the supply segment revenue is mainly driven by the net effect between the 53% retail sale price increase in the retail market and the 10% fall in the volumes of electricity supplied on the retail market.
The green certificates value included in final consumer invoice, set by ANRE, increased from RON 64.1/MWh in H1 2021 to RON 72.54/MWh in H1 2022.
In H1 2022, the expense for electricity purchased increased by RON 2,771.0 mn, or 127.9%, to RON 4,937.6 mn, from RON 2,166,6 mn in the comparative period.
This variation is mainly generated by the increase of electricity costs on the supply segment, but also by the increase in electricity costs for NL coverage.
The table below presents the structure of the electricity purchased expenses for the indicated periods:
| Six months period ending 30 June (RON mn) | 2022 | 2021 | % |
|---|---|---|---|
| Electricity purchased to cover network losses | 1,121.9 | 364.0 | 208.2% |
| Electricity purchased for supply | 3,382.1 | 1,376.9 | 145.7% |
| Transmission and system services related to supply activity | 138.6 | 137.7 | 0.7% |
| Green Certificates | 294.5 | 287.9 | 2.3% |
| Total electricity purchased | 4,937.6 | 2,166.6 | 127.9% |
Source: Electrica
The cost of the electricity purchased for supply (including transmission and system services) increased by RON 2,013.3 mn, or 111.7%, to RON 3,815.7 mn in H1 2022, from RON 1,802.5 mn recorded in H1 2021.
The main cause of this evolution is represented by the increase of the prices on the electricity market and the limitation of the transfer to the final customer of these price increases. Thus, the prices on the spot market (Next Day Market) in Romania increased in H1 2022 by approximately 265%, compared to the same period in 2021.
In 2021, after the complete liberalization of the energy market, the purchase prices were approximately the same both on the competitive segment and on the universal service and SoLR segment. The acquisition market registered since the end of June 2021, significant increases, manifested at international level and determined by the international economic and political context. Thus, the growth registered in the acquisition market was transferred to the final clients, within the limits allowed by the legislation in force and by the contracts concluded with the final client.
It should be noted that energy suppliers are unable to terminate existing contracts according to the Law on Electricity and Natural Gas no. 123/2012, based on Article 57.
Green certificates' (GC) cost is recognized in the statement of profit and loss based on the quantitative quota set by the regulatory authority and influenced by GC amount that the Group has to purchase for the current year and GC purchase price on the centralized market. The green certificates cost is a pass-through cost.
In order to fulfil the legal obligations for the acquisition of green certificates (GC) and considering the observance of the Internal Procurement Procedure, in the first quarter of 2022, the cost of GC acquisition increased by RON 7,165 mn (increase from RON 144,657 mn to RON 151,823 mn), respectively an increase of 4.95% compared to the same period of 2021.
This variation was determined by the ANRE regulations regarding:
In order to fulfill the legal obligations for the acquisition of green certificates (GC) and considering the observance of the Internal Procurement Procedure, in the second quarter of 2022, the cost of GC acquisition increased by RON 207.875 th (increase from RON 143,982 mn to RON 144,190 mn), respectively an increase of 0.14% compared to the same period of 2021.
This variation was determined by the ANRE regulations regarding:
Regarding the distribution segment, in the six months period ended 30 June 2022, the cost of the electricity purchased to cover network losses increased by RON 757.9 mn, or 208.2%, to RON 1,121.9 mn, from RON 364 mn, the evolution being generated both by a significant increase in the electricity purchase prices (negative effect of RON 656.2 mn) and lower volume of electricity needed to cover network losses (positive impact of RON 72.7 mn).
The Electricity Distribution Operators were directly affected by this significant price increase, being obliged, according to ANRE Order no. 73/2014, to purchase the electricity necessary to cover their own technological consumption (NL), in order to comply with the general conditions associated with the distribution license on the wholesale electricity market, in accordance with the Law on electricity and natural gas no. 123/2012 with subsequent amendments and completions (Art. 45).
For H1 2022, for the Group's electricity distribution subsidiary, the average electricity purchase price for NL was with 115% higher than the value set by ANRE ex-ante in tariffs, generating additional costs of RON 574 mn.
In H1 2022, the expenses with the construction of the electrical networks in connection with the concession contracts increased by RON 51.9 mn, or 29.3% to RON 228.8 mn, from RON 176.9 mn in the comparative period, being correlated with the evolution of the investments realized, related to the Regulated Asset Base, and the allocation of the investment plan throughout the year.
The expenses for salaries and employee benefits decreased by RON 0.7 mn, or 0.2% to RON 389.4 mn in H1 2022, from RON 390.1 mn, so they remain approximately at the same level as compared with the previous similar period.
In H1 2022, the expenses with repairs, maintenance and materials recorded a decrease of RON 6.4 mn, or 15% to RON 36.1 mn in H1 2022 from RON 42.5 mn compared with the same period of the previous year.
In the first six months of 2022, the other operating expenses increased by RON 24.1 mn, or 14.6%, to RON 189.9 mn, from RON 165.8 mn in the same period of 2021, mainly from:
Source: Electrica
The Group operating result (EBIT) decreased by approx. RON 261.9 mn y-o-y, the EBITDA evolution being alleviated by the increase of the depreciation expense by RON 6.1 mn, or 2.5%.
Source: Electrica
The net finance cost at group level increased by RON 45.8 mn in H1 2022 compared to the similar period in 2021, mainly as a result of the decrease in finance income and the increase of finance expenses of RON 46 mn related to loans for pre-financing the support scheme for electricity and natural gas consumers established by GEO no. 118/2021, approved with amendments and completions by Law no. 259/2021 and amended by GEO 27/2022, as well as the difference between the energy price for the realized NLand the ex-ante price established by ANRE until the recovery through tariffs.
As a result of the above described factors, in the six months period ended 30 June 2022, the net result decreased by RON 251.6 mn, to RON -175.5 mn (loss), from RON 76.1 mn (profit) as compared with the previous similar period.
The main unfavorable impact that contributes to the loss of RON -175.5 mn is from the average purchase electriciy price for network losses (NL) for the distribution segment with 115% higher than the value established by ANRE, thus generating additional costs of 574 million RON, amount that will be recovered in future tariffs for a period up to 5 years after 31 March 2023.
Source: Electrica
RON (427) mn regulated result includes a negative deviation of the CPT cost of RON 574 mn (calculated for the realized amount of 1,110 GWh in S1 and the price difference of 517 RON/Mwh (967 realized and 450 approved), respectively of RON 639 mn compared to the price of 392 RON/Mwh actually recognized in the tariffs (motivated by the limitations of tariff increases).
The following table presents the consolidated statement of the financial position (amounts in RON mn):
| 30 June 2022 (reviewed) |
31 December 2021 (audited) |
Variation (%) |
|
|---|---|---|---|
| ASSETS | |||
| Non-current assets | |||
| Intangible assets related to concession agreements |
5,522.9 | 5,514.6 | 0.2% |
| Other intangible assets | 9.0 | 9.0 | 0.2% |
| Property, plant and equipment | 492.4 | 505.4 | -2.6% |
| Goodwill | 10.6 | - | - |
| Investments in shared entities | 18.8 | 25.8 | -27.1% |
| Deferred tax assets | 42.5 | 83.5 | -49.2% |
| 1.7 | |||
| Other non-current assets | 1.9 | 20.9 | 12.2% |
| Right of use asset | 49.3 | 135.5% | |
| Total non-current assets | 6,147.4 | 6,160.9 | -0.2% |
| Current assets | |||
| Trade receivables | 1,936.4 | 1,344.6 | 44.0% |
| Other receivables | 31.2 | 48.6 | -35.8% |
| Cash and cash equivalents | 178.4 | 221.8 | -19.6% |
| Restricted cash | 1,132.1 | - | - |
| Inventories | 85.3 | 73.0 | 16.9% |
| Prepayments | 14.9 | 5.0 | 196.3% |
| Current income tax receivable | 23.8 | 23.8 | 0.0% |
| Assets held for sale | 10.9 | 5.4 | 102.0% |
| Total current assets | 3,412.9 | 1,722.2 | 98.17% |
| Total assets | 9,560.3 | 7,883.1 | 21.3% |
| EQUITY AND LIABILITIES | |||
| Equity | |||
| Share capital | 3,464.4 | 3,464.4 | 0% |
| Share premium | 103.0 | 103.0 | 0% |
| Treasury share reserves | (75.4) | (75.4) | 0% |
| Revaluation reserve | 97.3 | 102.8 | -5.4% |
| Legal reserves | 408.4 | 408.4 | 0% |
| Retained earnings | 635.8 | 950.2 | -33.1% |
| Total equity attributable to owners of the | |||
| Company | 4,633.6 | 4,953.6 | -6.5% |
| Minority interest | (0.4) | - | - |
| Total equity | 4,633.2 | 4,953.6 | -6.5% |
| Liabilities |
| Lease liability – long term | 33.1 | 12.1 | 173.4% |
|---|---|---|---|
| Deferred tax liabilities | 93.5 | 161.9 | -42.3% |
| ELECTRICA S.A. – 2022 HALF YEAR CONSOLIDATED REPORT |
|---|
| ----------------------------------------------------- |
| 30 June 2022 (reviewed) |
31 December 2021 (audited) |
Variation (%) |
|
|---|---|---|---|
| Employee benefits | 136.1 | 149.2 | -8.8% |
| Other payables | 38.2 | 32.7 | 16.8% |
| Long-term bank borrowings | 105.0 | 118.8 | -11.6% |
| Total non-current liabilities | 405.9 | 474.7 | -14.5% |
| Current liabilities | |||
| Lease liability – short term | 17.8 | 9.4 | 88.5% |
| Bank overdrafts | 2,369.9 | 627.4 | 277.7% |
| Trade payables | 919.1 | 891.3 | 3.1% |
| Other payables | 481.1 | 271.3 | 77.3% |
| Deferred revenue | 19.4 | 9.7 | 100.7% |
| Employee benefits | 82.9 | 101.1 | -18.0% |
| Provisions | 37.0 | 34.9 | 6.1% |
| Current portion of long-term bank borrowings | 594.0 | 509.7 | 16.5% |
| Total current liabilities | 4,521.2 | 2,454.9 | 84.2% |
| Total liabilities | 4,927.1 | 2,929.6 | 68.2% |
| Total equity and liabilities | 9,560.3 | 7,883.1 | 21.3% |
Source: Electrica
The non-current assets decreased by RON 13.5 mn in H1 2022, or 0.2%, to RON 6,147.4 mn as of 30 June 2022, from RON 6,161.0 mn at 31 December 2021, this variation being mainly the effect of the RON 8.3 mn slight decrease of intangible assets related to concession agreements, as a result of a lower level of investments made in the distribution network compared to the amortization related to the analyzed period.
On 30 June 2022, the Group recognized a goodwill worth RON 10.6 mn for its two new subsidiaries (from the 4 project companies acquired for green energy production), on 30 June 2022 holding 60% of the share capital for the two new subsidiaries compared to 31 December 2021 when it had a 30% holding, in the other 2 companies the holding is 30% and they are still considered investments in associated entities in the financial statements. The goodwill is mainly attributed to the know-how of the projects and the synergies that are expected to be achieved from the integration of the companies in the existing businesses of the Group.
Deferred tax receivables decreased by RON 41 mn, respectively by 49.1%, to RON 42.5 mn from RON 83.5 mn on 30 June 2021, this variation is due to the fact that the EFSA supply segment in the year 2021 recorded a loss of RON 389.7 mn and in the current year a profit of RON 213.5 mn, thus reducing the deferred tax receivable recognized in the previous year.
At 30 June 2022, current assets increased by RON 1,690.7 mn compared to 31 December 2021, or 98.2%, from
RON 1,722.2 mn to RON 3,412.9 mn, this evolution being mainly the net effect of evolution of supply segment were are the receivables for subsidies amounting to RON 1,211.3 and of the trade receivables level increase by RON 591 mn compared with 31 December 2021. Below is presented the evolution of current assets' elements that generate most of the variation.
Cash and cash equivalents include cash balances, call deposits and deposits with maturities of up to three months that have insignificant exposure to the fair value change risk, being used by the Group for the management of short-term commitments and for financing of current activity.
Their value decreased by RON 43.4 mn in H1 2022, or 19.6%, reaching RON 178.4 mn, from RON 221.8 mn at 31 December 2021, the cash being used mainly for the distribution company's investments' internal financing, as well as for working capital financing.
Trade receivables increased by RON 591.8 mn during H1 2022, or 44.0%, to RON 1,936.4 mn, from RON 1,344.6 mn at 31 December 2021. This variation is generated especially by the supply segment, being influenced by the impact of restriction for household customers to not disconnect until 30 June 2022, respectively CSU customers until 08 June 2022, blocking batch processes for issuing disconnection notices/disconnection orders starting with 09 May 2022 and taking over Hargaz customers in SoLR (for them there are price appeals and ANRE controls).
On 30 June 2022, the subsidies to be collected from the supply segment amount to RON 1,132.1 mn (as of 31 December 2021, they have no correspondence in the financial statements). The subsidies are collected from the Ministry of Energy as a result of the application of the electricity and natural gas price ceiling mechanism approved by GEO no. 118/2021 with subsequent changes and GEO no. 27/2022.
The non-current liabilities recorded a decrease as of 30 June 2022, of RON 68.8 mn, reaching the value of RON 405.9 mn, from RON 474.7 mn as of 31 December 2021, mainly as a result of the decrease in the long term bank borrowings, of RON 68.5 mn, due to increase of distribution segment's fiscal loses.
At 30 June 2022, the current liabilities increased by RON 2,066.4 mn, to RON 4,521.2 mn, from RON 2,454.9 mn at the end of 2021, mainly as a result of the changes in the categories listed below.
The overdrafts increased in H1 2022 by RON 1,742.5 mn, reaching RON 2,369.9 mn, from RON 627.4 mn at the end of 2021, as the Group has increased its working capital financing methods through overdraft for financing the current activity.
The group has overdraft facilities from various banks (ING Bank N.V., Raiffeisen Bank, Banca Comerciala Romana, Banca Transilvania, BNP Paribas, Intesa Sanpaolo Bank, BRD – Group Societe Generale and UniCredit Bank), with a maximum limit available for the facilities overdraft of up to RON 2,503,800 th and maturities between July 2022 and January 2024.
As of 30 June 2022, trade payables increased by approx. RON 27.8 mn, to RON 919.1 mn, from RON 891.3 mn at 31 December 2021, mainly from increases of balances related to suppliers of electricity in correlation with the increase in the price of electricity purchased both on the supply segment and on the distribution segment for NL.
Other payables increased in H1 2022 by RON 209.8 mn, reaching RON 481.8 mn, from RON 271.3 mn at the end of 2021, mainly from VAT payable balance increase for the supply segment, growth determined by the increase in sales in the supply segment by RON 1,185.0 mn, or 44.8%.
On 30 June 2022, the current portion of long-term bank loans increased by approximately RON 84.2 mn, or 16%, to RON 594.0 mn on 30 June 2022 from RON 509.7 mn on 30 June 2021. This impact comes from the withdrawal from the EBRD loan related to 2022 in the amount of RON 113.4 mn reclassified from long term to short term because a waiver was not obtained, to which is added the interest on the balance of RON 5.1 mn, reduced impact of repayments from 2022 related to long-term loans in the amount of RON 32.7 mn reclassified in the short term.
According to the General Meeting of the Company's Shareholders on 20 April 2022, the distribution of the net accounting profit of Electrica SA for the financial year 2021 in the amount of RON 321.8 mn to the following destinations:
(i) Legal reserve (5% of gross profit 2021): RON 16.1 mn;
(ii) Other reserves: RON 152.9 mn;
(iii) Dividends to be distributed to shareholders in a total amount of RON 152.8 mn.
The following table presents the consolidated statement of cash flows of Electrica Group (amounts in RON mn):
| 30 June 2022 | 30 June 2021 | Variation | |
|---|---|---|---|
| (reviewed) | (reviewed) | (%) | |
| Cash flows from operating activities | |||
| Loose/Profit for the period | (175.5) | 76.1 | -331% |
| Adjustments for: | |||
| Depreciation | 9.9 | 10.0 | -1.1% |
| Amortization | 238.3 | 232.0 | 2.7% |
| (Reversal of impairment)/Impairment of property, plant and | - | (0.1) | - |
| equipment and intangible assets, net | |||
| (Gain)/Loss on disposal of property, plant and equipment and | (0.5) | (0.1) | 294.9% |
| intangible assets | |||
| Impairment of trade and other receivables, net | 50.0 | 39.8 | 25.8% |
| Impairment of assets held for sale | 0.08 | 0.2 | -56.4% |
| Change in provisions, net | 2.1 | 9.6 | -78% |
| Net finance cost | 57.5 | 11.7 | 392.0% |
| Changes in employee benefits obligations | 1.7 | 0 | - |
| Corporate income tax expense | (28.9) | 27.3 | - |
| 154.7 | 406.4 | -61.9% | |
| Changes in: | |||
| Trade receivables | (655.2) | (173.3) | 278.1% |
| Other receivables | 17.2 | (0.9) | - |
| Prepayments | (9.9) | (7.2) | 36.4% |
| Inventories | (12.3) | (2.0) | 529.7% |
| Trade payables | 68.1 | (13.8) | - |
| Other payables | 215.5 | 43.4 | 396.4% |
| Employee benefits | (23.0) | (3.6) | 544.2% |
| Deferred revenue | 9.7 | 0.6 | 1494.8% |
| Subsidy receivables | (1,132.1) | - | - |
| Provisions and employee benefits | (23) | (3.6) | 538.9% |
| Cash generated from operating activities | (1,367.4) | 249.6 | - |
| Interest paid | (50.4) | (11.0) | 358.7% |
| Income tax paid | - | (18.4) | - |
| Net cash from operating activities | (1,417.7) | 220.3 | - |
| Cash flows from investing activities | |||
| Payments for purchases of property, plant and equipment | (4.9) | (5.7) | -13.7% |
| Payments for network construction related to concession | (261.4) | (238.0) | 9.8% |
| agreements | |||
| Payments for purchase of other intangible assets | (1.9) | (1.2) | 61.8% |
| Proceeds from sale of property, plant and equipment | 2.5 | 0.9 | 184.0% |
| Proceeds from deposits with maturity of 3 months or longer | - | - | - |
| Interest received | 0.4 | 1.4 | -68.3% |
| 30 June 2022 (reviewed) |
30 June 2021 (reviewed) |
Variation (%) |
|
|---|---|---|---|
| Payments for subsidies acquisition | (3.0) | - | - |
| Net cash used in investing activities | (268.3) | (242.7) | 10.6% |
| Cash flows from financing activities | |||
| Proceeds from long-term bank borrowings | 113.5 | 122.9 | -7.7% |
| Proceeds from overdrafts | 1,737.5 | - | |
| Repayment of long-term bank borrowings | (46.5) | (24.1) | 92.6% |
| Payment of lease liabilities | (9.6) | (8.0) | 21.0% |
| Dividends paid | (152.3) | (246.8) | -38.3% |
| Net cash used in financing activities | 1,376.6 | (156.0) | - |
| Net decrease in cash and cash equivalents | (43.5) | (178.4) | -75.6% |
| Cash and cash equivalents at 1 January | (405.6) | 406.0 | - |
| Cash and cash equivalents at 30 June | (449.0) | 227.6 | - |
Source: Electrica
In H1 2022, the net decrease in cash and cash equivalents amounted to RON -43.5 mn compared with the same period of 2021 where the amount was RON -178.4 mn.
The net cash generated by the operating activity was of RON 1,417.8 mn (negative). The net result was RON 175.5 mn; the main non-monetary elements adjustments for the net profit were: adding the depreciation and amortization of RON 248.2 mn, the impairment adjustments for current assets of RON 50.0 mn, the net finance cost of RON 57.5 mn, the income tax of RON -28.9 mn and the net change in provisions of RON 2.1 mn.
Changes in working capital had an unfavorable effect, of RON 1,552.1 mn, the most significant impact being generated by the negative change in trade receivables of RON 655.2 mn (correlated with the increase in revenues for supply segment), as well as the positive variation in trade payables, of RON 68.1 mn, and also of other payables in amount of RON 215.5 mn. Interest paid amounted to RON 50.4 mn. The receivables subsidies have generated the greatest negative impact amounting to RON -1,132.1 mn.
For the investment activity, the cash used was of RON 268.3 mn, the most significant values being related to the payments for the network construction in connection with the concession agreements, RON 261.4 mn; these have recorded an increase of approx. 9.8% y-o-y, correlated with the increase in investments in networking compared with the same period of prior year.
The financing activity generated an increase in cash and cash equivalents of RON 1,462.6 mn, the main factors being the withdrawals from overdrafts RON 1,737.5 mn, effect decreased by the dividends paid to shareholders amounting to RON 152.3 mn, the withdrawals related to the long term borrowings – positive effect of RON 113.5 mn, and the repayments of long term borrowings – negative effect of RON 46.5 mn.
On 20 April 2022, the General Meeting of the Company's Shareholders approved the distribution of dividends in the amount of RON 152,799 th (2021: RON 247,874 th). The value of the distributed dividends per share is RON 0.45 per share (2021: RON 0.73 per share).
In H1 2021, the net decrease in cash and cash equivalents amounted to RON 178.4 mn.
The net cash generated by the operating activity was of RON 220.3 mn. The net profit was RON 76.1 mn; the main non-monetary elements adjustments for the net profit were: adding the depreciation and amortization of RON 242.1 mn, the impairment adjustments for current assets of RON 39.8 mn, the net finance cost of RON 11.7 mn, the income tax of RON 27.3 mn and the net change in provisions of RON 9.6 mn.
Changes in working capital had an unfavorable effect, of RON 156.8 mn, the most significant impact being generated by the negative change in trade receivables of RON 173.3 mn, as well as in trade payables, of RON 13.8 mn, but also by the positive variation of other payables in amount of RON 43.4 mn. Income tax paid and interest paid amounted to RON 29.3 mn.
For the investment activity, the cash used was of RON 242.7 mn, the most significant values being related to the payments for the network construction in connection with the concession agreements, RON 238 mn; these have recorded a decrease of approx. 29% y-o-y.
The financing activity generated a decrease in cash and cash equivalents of RON 156 mn, the main factors being the dividends paid to the shareholders - RON 246.8 mn, the withdrawals related to the long term borrowings – positive effect of RON 122.9 mn, and the repayments of long term borrowings – negative effect of RON 24.1 mn.
The first quarter of 2022 was under the influence of public health events (COVID-19 pandemic declared by the WHO on 11 March 2020) and the impact of these events on the economic and social environment. Starting with 9 March 2022, Romania is no longer on alert due to COVID 19, so the restrictions in the alert state later became recommendations.
Electrica Group activates in a key economic sector and therefore is closely monitoring both the national and the international context, in order to make the best decisions in the following period and for addressing the challenges on the short and medium term.
Globally, the budgets of countries where the number of pandemic infestations is high and economic sectors such as services, production, transportation, as well as commerce and international trade are affected, all these elements influencing the energy demand, the consumers' behavior, as well as the measures taken by the authorities, both for the energy sector and for the economic environment in general.
The current strategy of the Electrica Group is built on a set of trends and assumptions, and the acceleration of digitalization is one of its objectives. This aspect is even more important as during the following period it is necessary to continue to support the measures of social distancing, the need for remote intervention and back-up, as very relevant aspects for its activities. Thus, it will continue the efforts already started to support investments in IT tools and automation, both for streamlining processes and for increasing the performance of its distribution networks.
Considering the energy policies developed at both EU and national level, as well as the international context of the energy markets, the following trends are expected to characterize on medium and long term the local electricity market:
of diversifying the portfolio of products offered to customers (offers for natural gas, insurance, home appliances etc.) and digital services offered (mobile applications, invoices and online payments, extending the customer service through chat solutions); the supply market liberalization imposed the priorities' rethinking and establishing strategies for maintaining the market share;
| Key drivers | Description | Impact on |
|---|---|---|
| GDP evolution and industry structure |
The economic growth is a determinant factor of electricity demand. Although there is not a one-to-one relationship between GDP growth rate and electricity demand growth rate, there is a positive correlation, mainly between the industrial demand for electricity and economic growth. In the future, household and industrial electricity demand will also be influenced by energy efficiency policies. The increase of electricity consumption was a constant trend in Romania in the last years. The COVID-19 pandemic has temporarily reduced electricity consumption, but the general upward trend will be maintained. |
GDP evolution and industry structure |
| In contrast with the demographic decline recorded at EU and Romanian level, the electricity Demographic consumption is positively impacted by the changes in the consumer behaviour and the increase evolution and in urbanization. For example, the massive increase in the number of connected devices and technology implicitly, in a less accelerated manner, in the electricity consumption, maintains the increasing development trend of consumption. |
Electricity consumption |
|
| Changes in regulatory framework |
Approved schemes to support customers in the payment of electricity / gas bills, with initial application between 1 November 2021 – 31 March 2022, which granted price caps, compensation for household customers and exemptions for SMEs, subsequently extended for the period 1 April 2022 - 31 March 2023, which capped the prices applicable to final customers, involve the ex post recovery by suppliers of the amounts related to these schemes, risking affecting the supply activity in case of delays in settlement of amounts incurred by suppliers or their complete non-recovery. As of 2022, only household customers shall have the right to universal service. Therefore, new competitive contracts must be signed with non-household customers which previously benefitted from universal service, if not, these customers may be switched to a supplier of last resort. The new Performance Standard for electricity/gas supply shall be enforced in 2022, bringing higher quality requirements for the supply of electricity, as well as higher obligations concerning the compensation of customers, including the obligation to pay compensations to all categories of customers in case of breach of quality standards. Starting with 1 May 2022, the new rules for the sale of electricity produced by prosumers enter into force, respectively quantitative compensation for customers with installed power up to 200 kW and financial compensation for customers with installed power between 200 and 400 kW, which will generate a new demand flow for this customer segment. Regarding the distribution segment, in 2019 the 4th regulatory period began (2019-2023), and ANRE approved significant changes to the Methodology for all elements of the tariff (regulated rate of return, base of regulated assets, own consumption technological, operating and maintenance costs, dynamic distribution tariffs starting with 2020). The energy law was amended in the period 2020-2021, so that: in 2021 OD financed the works for connecting domestic and non-domestic customers with lengths of less than 2.5 km, and starting with 2022, the free for non-domestic customers was eliminated. households, and for households the obligation to finance by OD only a connection in average value established by ANRE was maintained. |
Electricity prices |
| The transactions concluded on the centralized platforms exceeded the threshold of 1500 lei/MWh for the AN product and 2000 lei/MWh for the short-term products related to the winter The evolution of the period, and on the DAM the weighted average price doubled compared to the beginning of electricity price in the 2022. The distribution operators purchase energy for NL at a triple price the ex-ante approved market price in the distribution tariffs. OD and OTS can purchase energy for individual or aggregate NL, directly or through dedicated platforms in the organized market, from the producers in the Romanian state's portfolio. |
Electricity prices | |
| Technological development |
Smart networks and smart meters will create benefits for the end consumers, distribution operators and suppliers in terms of energy efficiency, resource optimization and network operation, implementation of demand response etc. It is necessary to prepare the networks and to integrate the distributed resources (storage solutions, micro-grids, local production, electric machines, etc.), also considering the management of their impact. |
Electricity prices and consumption |
| Increase in environmental awareness |
Romania has adopted the EU 20-20-20 targets, aiming to reduce greenhouse gas emissions, improve energy efficiency and raise the share of renewable energy. Moreover, the 2030 Framework provides even more ambitious targets and therefore more efforts are needed from |
Electricity prices and consumption, regulatory |
| Key drivers | Description | Impact on |
|---|---|---|
| governments and market players to achieve them. | framework | |
Source: Electrica
The regulatory changes with significant impact in the supply segment are the following:
the payment amount related to the distribution tariff for the respective consumption;
For the distribution segment, the significant changes in the Romanian legislation were detailed at chapter 1.2. Key Events. Based on these changes, the expected effects refer to:
GEO no. 27/2022 regarding the measures applicable to final customers in the electricity and natural gas market between 1 April 2022 and 31 March 2023: i) to cover the additional costs related to network losses for 2021, ANRE amends the regulated tariffs, with applicability starting with 1 April 2022, and the resulting tariffs do not change between 1 April 2022 and 31 March 2023; ii) the additional costs financed from bank loans made during the GEO period to cover the network losses are capitalized, with a duration of 5 years and RRR = 50% x RRR RP4; iii) the electricity costs purchased for network losses after the date of entry into force of the GEO will be recognized in the regulated tariffs, according to the ANRE methodologies; iv) the transmission and distribution tariffs will be modified according to the costs registered until 31 March 2023, in a period of up to 5 years, after 31 March 2023; v) producers in the portfolio of the Romanian state, have the obligation to respond in 5 working days with partial or total sales offers, energy purchase requests addressed by TSO and DSO, individually or in aggregate, directly or through dedicated platforms in the organized market.
For the supply segment, the legislative changes brought by the support scheme (granting of caps, compensations and exemptions granted to final customers) applicable during the cold season, respectively 1 November 2021 – 31 March 2022, extended with a capping scheme between 1 April 2022 – 31 March 2023, significantly reduced the migration of customers to and from other suppliers, the price cap eliminating competition from the energy market.
The labor market faces new challenges, as demographic developments, labor migration, and the evolution of the economy will accentuate the shortage of skilled labor. Also, the acceleration of digitization, within the pandemic context, the inherent technological changes, as well as the process of succession to a new generation, will determine the transition to new profiles for employees that include a mix of skills and, at the same time, real challenges in recruiting new employees with a high level of expertise in the near future.
Electrica Group operates in a competitive market, where the technological progress is very fast and at a time when the approach of companies and employees is changing towards the work process, as it was defined in the past. Salary packages are no longer the only motivational lever. Non-financial benefits and the organizational climate, are increasingly important to attract employees and retaining the valuable ones.
Career opportunities, broadening the area of competence and assigning more significant responsibilities must be part of the strategies and tools used. At the Group level, the provision of the necessary human resources and the staff training in key business areas were treated as priority topics, in order to increase labor productivity and individual performance.
The human resources strategy took into account these aspects and, through the proposed projects, aimed the retaintion of key personnel, attracting of talents, and development of the human resource at the organization level. Considering the evolution of the financial and operational performance, registered during the past years, as well as the transformations and the trends of the energy sector, in the first part of the year the corporate reorganization plan was carried out as an necessary and opportune measure to adapt to the current market context, significantly affected by the energy market crisis and, further, by the external events within the new geopolitical context, which indirectly impacted the economical national context. This initiative pursues a series of objectives, such as:
For 2022, in line with the objectives and directions included in the IT&C Strategy approved in 2019, the Group aims to continue the consolidation of the ERP systems from the Group's subsidiaries, synchronizing these requirements with the needs, decisions and initiatives to reorganize divisions and operational directions. In addition to traditional IT&C infrastructure and services, the Group aims to continue and accelerate digitization initiatives and the application of technologies that lead to faster, more flexible and customer-friendly interaction. Last but not least, the Group set out to analyze the options for the next stage of technological development and harmonization; the future Digitization Strategy should take over the results of the current phase in 2023 and place full emphasis on optimizing internal and other processes, with all stakeholders, based on the Group's advanced Digital Transformation technologies.
A core part of Electrica business strategy includes implementing the investment plan. Electrica's activities require significant capital expenditures mostly connected with its operations in the electricity distribution segment. Furthermore, Electrica's assets require periodic maintenance and modernization in order to improve the operational efficiency.
Electrica's capital expenditures in the six months period ended 30 June 2022 and 30 June 2021 amounted to RON 232 mn and RON 179 mn, respectively. Capital expenses are concentrated on distribution segment.
The volume of investments in the distribution network reflects the Group's effort to accomplish the planned level of investments for 2022, especially in the distribution segment in accordance with the annual investment plan approved by ANRE and the main financing sources are both the sources attracted from the bank and those from own sources.
The volume of investments had a material impact and, according to Electrica's expectations, will continue to have such impact on the results of Electrica's operations, Electrica's indebtedness and future cash flows.
Capital expenditures in the distribution network will only have the anticipated positive impact on Electrica's result of operations to the extent they are recognized in the Regulated Asset Base by ANRE and considering the rate of return approved by the regulatory authority.
Based on the best available information, we confirm that the interim condensed consolidated financial statements reviewed for the six months period ended 30 June 2022 prepared in accordance with the International Accounting Standard IAS 34 – Interim Financial Reporting, provides an accurate and real image regarding the Electrica Group's financial position, the financial performance and the cash flows, as required by the applicable accounting standards, and that this Report, prepared in accordance with art. 67 of the law no. 24/2017 on issuers of financial instruments and market operations and to annex no. 13 to ASF Regulation no. 5/2018 for the six months period ended 30 June 2022, comprises accurate and real information regarding the Group's development and performance.
Chair of the Board of Directors,
Iulian Cristian BOSOANCA
Chief Executive Officer, Alexandru Aurelian CHIRITA
Chief Financial Officer,
Stefan Alexandru FRANGULEA
| Indicator Formula |
Value | |
|---|---|---|
| Current liquidity ratio | Current assets/Current liabilities | 0.8 |
| Capital Gearing Ratio | Debt/Equity * 100 | 15.8% |
| Trade receivables turnover | Average balance trade receivables/ Turnover * 180 |
64 days |
| Non-current asset turnover ratio Turnover/Non-current assets |
0.4 |
During 1 January 2022 – 30 June 2022, the most significant investments of Electrica Group are the following:
| DESCRIPTION | Value (RON mn) |
|---|---|
| MUNTENIA NORD | |
| Integration of "business consumers" from MN area in automatic meter reading systems AMR | 3,96 |
| Modernization and integration in SCADA of the 110/20/6 kV Buzau Est substation | 3,80 |
| Modernization of 20kV OHL by replacement of insulation and conductors (20kV OHL Urleasca - SR | |
| Ramnicelu, 20kV OHL Lacu Sarat - SRPD 1-4, 20kV OHL Romanu - T. Vladimirescu and 20 kV OHL Gropeni - Tichilesti) |
2,00 |
| Modernization of distribution network in the area of PTA 7054 CAP, PTA 7052 no. 6, PTA 7051 VA, PTA 7055 Moara and PTA 7056 CFR from Foltesti locality, Galati County |
1,98 |
| Modernization of the heating installation in administrative headquarters with the dispatching office of SR Buzau |
1,76 |
| 20 kV OHL modernization by replacing 20 kV OHL insulation and conductors Faurei-Faurei, Braila County |
1,64 |
| Voltage level improvement for consummers in commune Contesti - villages Contesti, Savesti, Crangasi, Mereni, Calugareni, Boteni |
1,44 |
| Creating the coexistence conditions with the existing electrical networks, necessary to obtain the location permit for the Galati ring road, between Brailei street (DN25) and Calea Prutului Street (E87), Galati municipality |
1,34 |
| Modernization of electricity distribution network in Jorasti locality, Vanatori commune Vrancea county |
1,30 |
| Installation of security, access control, video surveillance, fire detection and signaling systems for 12 facilities: COR MT JT Valeni headquarters; 20kV Mihai Bravu substation + COR MT JT Ploiesti; PE Mizil; 20kV Sinaia + PE Sinaia substation; 20kV Slanic + PE Slanic substation; PE Boldesti; 110kV Floresti substation (system update) + PL Floresti + Floresti Central Warehouse; 110kV Tatarani substation (system update) + PL Tatarani; 110kV Urlati + PL Urlati substation; Baltesti 110kV substation (system update); 110kV East Ploiesti substation (system update); 110kV Crang substation connection pole; Route of cable connection to Movila Vulpii station |
1,28 |
| Voltage level improvement for consumers in Dambovita County, commune Odobesti, Ziduri, Crovu, Brancoveanu, Miulesti localities. |
1,19 |
| Installation of security, access control, video surveillance, fire detection and signaling systems for 8 facilities in SROR Galati: COR MV LV Mun. /Ext. Galati; COR MVLV Tecuci; PL Pechea; PL Tg. Bujor; Wearhouse 03GL; Abator 110/20 kv substation and Antrepozit 20/6 kV connection Station, Bujoru 110/20 kV substation; Foltesti 110/20/6kV substation |
1,12 |
| Modernization of 0.4kV OHL and consumer connections from Movila Miresii locality | 1,11 |
| DESCRIPTION | Value (RON mn) |
|---|---|
| Voltage level improvement for OHL LV consumers in Laeni locality, Dambovita County | 1,08 |
| TRANSILVANIA SUD | |
| Modernization of LV network com. Apoldu de Jos, Sibiu County | 3,03 |
| Modernization of LV OHL and connections in Hodac locality, Mures county | 2,6 |
| MV network decentralization in Vladeni, Principala street (PT 8 CFR Vladeni - in consumer management) and connections modernization, systematization and securing in loc. Vladeni, Brasov county |
1,9 |
| Voltage level improvement and modernization of OHL LV and connections in Deda locality, Mures County |
1,69 |
| Increasing the security of supply and improving the voltage level of 20 kV network in Regin, Mures County |
1,68 |
| Modernization of 0.4 kV OHL Blaj, str. Eroilor (partially), Fabricii, Locomotivei, Fochistilor, Ceferistilor, Dr. V. Suciu, I.M. Klein, Gh. Sincai and A. Muresanu, mun. Blaj, Alba County- stages 1,2 and 4 |
1,64 |
| Modernization of OHL 20 kV loc. Baita, Alba County - Stage 1 | 1,51 |
| Decentralization of the MV network in the area "Pompe Apa", switchover to 20 kV of the MV network, Sanpetru locality, Brasov County |
1,51 |
| Voltage level improvement and modernization of LV OHL in Saulia de Campie, Mures county | 1,27 |
| Reserve supply 20 kV busbars - Sanpaul Station, Mures county | 1,25 |
| 20 kV network modernization Sovata – Oras2, Mures County | 1,16 |
| Voltage level improvements and connections securing in Vatava locality, jud. Mures | 1,16 |
| Voltage level improvements in PTA 9 Harman area, Domnitorilor neighborhood, Brasov county | 1,12 |
| Decentralization of MV OHL, reconducting of LV OHL, modernization of connections, Daisoara locality, Brasov County |
1,09 |
| Integration of CEM 110 kV Mures substations in the SCADA DMS system of S.C. FDEE Electrica Distributie Transilvania Sud S.A. |
1,27 |
| TRANSILVANIA NORD Modernization of low voltage OHL and connections in the area PT 1, PT 2, PT 3, PT 4, PT 6 Berinta |
1,798 |
| Power injection in the South and West areas of Biharia locality, Bihor County | 1,583 |
| Modernization of LV OHL Tulca | 1,493 |
| Modernization of the Sarmasag 110/20 KV substation | 1,390 |
| Modernization LEA MT Juc Geaca between R Gadalin and R Geaca | 1,062 |
| Increasing the power supply reliability in Floresti, Cluj County, vol 5, Modernization of Abator Distributor and construction of Cimitir and Polygon Distributors |
1,033 |
| Switchover to 20 kV PA 1, PA 2 and PA 6 Baia Mare | 1,033 |
| Modernization of LV OHL and connections in place. Russian area PTA1 and Russian PTA2 | 848 |
| Modernization of built MV/LV substations, TN area - Cluj-Napoca Branch, Cluj County - Vol.2 - POR Gherla area |
908 |
| Increasing the power supply reliability in area Paleu, Bihor County Source: Electrica |
905 |
During first semester of 2022, the largest transfers from tangible assets in progress to tangible assets, representing mainly commissioning of investments, are the following:
| DESCRIPTION | Value (RON mn) |
|---|---|
| MUNTENIA NORD | |
| Modernization of the heating installation in the administrative headquarters with the dispatching office of SR Buzau |
1,78 |
| Voltage level improvement for consumers in commune Contesti - villages Contesti, Savesti, Crangasi, Mereni, Calugareni, Boteni |
1,59 |
| Modernization of distribution network in the area of PTA 7054 CAP, PTA 7052 no. 6, PTA 7051 VA, PTA 7055 Moara and PTA 7056 CFR from Foltesti locality, Galati County |
1,28 |
| Installation of security, access control, video surveillance, fire detection and signaling systems for 12 facilities: COR MT JT Valeni headquarters; 20kV Mihai Bravu substation + COR MT JT Ploiesti; PE Mizil; 20kV Sinaia + PE Sinaia substation; 20kV Slanic + PE Slanic substation; PE Boldesti; 110kVFloresti substation (system update) + PL Floresti + Floresti Central Warehouse; 110kV Tatarani substation (system update) + PL Tatarani; 110kV Urlati + PL Urlati substation; Baltesti 110kV substation (system update); 110kV East Ploiesti substation (system update); 110kV Crang substation connection pole; Route of cable connection to Movila Vulpii substation |
1,19 |
| Installation of security, access control, video surveillance, fire detection and signaling systems for 8 facilities in SROR Galati: COR MV LV Mun. /Ext. Galati; COR MVLV Tecuci; PL Pechea; PL Tg. Bujor; Wearhouse 03GL; Abator 110/20 kv substation and Antrepozit 20/6 kV connection Station, Bujoru 110/20 kV substation; Foltesti 110/20/6kV substation |
1,08 |
| Construction of distribution network to supply energy to 6 block of flats compound and one multifunctional building in Ploiesti, B-dul Republicii, nr.146-150 MARISTAR COM SRL |
0,93 |
| TRANSILVANIA SUD | |
| Voltage level improvement and modernization of OHL LV and connections in Deda locality, Mures County |
1,73 |
| Decentralization of the MV network in the area "Pompe Apa", switchover to 20 kV of the MV network, Sanpetru locality, Brasov County |
1,48 |
| Modernization of the 0.4 kV network, Hipodrom 1, 2, 3 area, Sibiu municipality, Sibiu county | 1,22 |
| Reconstruction, modernization of PA Textila Prejmer, Brasov County | 0,98 |
| MV network decentralization in Vladeni, Principala street (PT 8 CFR Vladeni - in consumer management) and connections modernization, systematization and securing in loc. Vladeni, Brasov county |
0,83 |
| Modernization of 0.4 kV OHL and connections PT 1 Vidacut, Odorheiu Secuiesc, PL Cristuru Secuiesc localities, Harghita County |
0,66 |
| Integration of CEM 110 kV Mures substations in the SCADA DMS system of S.C. FDEE Electrica Distributie Transilvania Sud S.A. |
1,63 |
| TRANSILVANIA NORD | |
| Modernization of 110 / 20/6 kV Prundu Bargaului substation | 3,106 |
| Modernization of the 110/20 kV NISTRU substation | 2,600 |
| Network decentralization and power injection in Spicului street, Cluj Napoca municipality, Cluj County |
2,122 |
| Modernization of 20 kV OHL Palota - Cheresig | 1,472 |
| Construction of MV UGC to increase the quality of electricity supply in the Bratca-Valea Crisului area |
1,118 |
| Network decentralization and power injection in Feleacu commune, Sub Coman area | 1,110 |
| Switching over 20 kV PA 1, PA 2 and PA 6 Baia Mare | 1,065 |
| Network decentralization and power injection in Mozart Street, Cluj Napoca municipality, Cluj County |
1,041 |
| SAP system upgrade to EHP8 version | 1,034 |
| Modernization of MV UGC in order to increase reliability of power supply: Iosia-PTZ Wagner Station; PTAb Protectia Mediului-PTZ 24 ZV; PTAb Colinelor 2-PTAb Gh.Doja 2-PTAb Gh.Pop de Basesti-STE I |
856 |
| Power injection in the South and West areas of Biharia locality, Bihor County | 786 |
| Increasing the reliability of electricity supply in Floresti locality, Cluj county - Vol. 2: Narciselor street area |
755 |
| DESCRIPTION | Value (RON mn) |
|---|---|
| Modernization of 20KV feeder connection and reconstruction of PTA 20 / 0.4KV Panic village, Salaj County |
723 |
| Power injection and modernization of low voltage network Sarand locality, Bihor County | 700 |
| Crt. no. |
Parties/Case file number |
Subject matter | Court | Case status |
|---|---|---|---|---|
| 1 | Plaintiff: ELSA Defendant: ANRE 192/2/2015 |
Cancellation of ANRE's President Order no. 146/2014 regarding the establishment of the regulated rate of return considered to the approval of the tariffs for the electricity distribution service provided by concessionary DSOs starting with 1st January 2015 and the abrogation of Art. 122 of the Tariff Setting Methodology for Electricity Distribution Service, approved by the ANRE Order no. 72/2013. |
High Court of Cassation and Justice |
Appeal – finally dismissed on 31.03.2022. |
| 2 | Plaintiff: ELSA; Defendant: ANRE; 361/2/2015 |
Cancellation of ANRE Order no. 155/2014 regarding the approval of the specific tariffs for the electricity distribution service and the price for the reactive energy for DEER (former SDTN). |
High Court of Cassation and Justice |
Suspended until the settlement of the case file no. 192/2/2015. |
| 3 | Plaintiff: ELSA; Defendant: ANRE; 360/2/2015 |
Cancellation of ANRE Order no. 156/2014 regarding the approval of the specific tariffs for the electricity distribution service and the price for the reactive energy for DEER (former SDTS). |
High Court of Cassation and Justice |
Suspended until the settlement of the case file no. 192/2/2015. |
| 4 | Plaintiff: ELSA; Defendant: ANRE; 340/2/2016 |
Action for partial annulment (regarding the special tariffs) of the administrative act – ANRE Order 171/2015. |
High Court of Cassation and Justice |
Appeal - Suspended until the settlement of the case file no. 192/2/2015. |
| 5 | Plaintiff: ELSA; Defendant: ANRE; 342/2/2016 |
Action for partial annulment (regarding the special tariffs) of the administrative act – ANRE Order. No. 172/2015. |
High Court of Cassation and Justice |
Appeal - Suspended until the settlement of the case file no. 192/2/2015. |
| 6 | Plaintiff: ELSA; DEER Defendant: ANRE; 7614/2/2018 |
Action for partial annulment of ANRE Order no. 169/2018 regarding the approval of the Tariff Setting Methodology for the Electricity Distribution Service. |
Bucharest Court of Appeal |
Case dismissed on merits. The Decision may be appealed within 15 days from it's communication. |
| 7 | Plaintiff: ELSA; DEER Defendant: ANRE 7591/2/2018 |
Action for the annulment of the ANRE Order no. 168/2018 regarding the regulatory rate of return and obliging ANRE to issue a new order. |
Bucharest Court of Appeal |
Suspended until de final settlement of case no. 541/36/2018 of the Bucharest Court of Appeal. |
| 8 | Plaintiff: ELSA, |
Legal action for annulment of ANRE Order 197/2018 regarding the approval of the |
Bucharest Court of |
In course of settlement. |
| Crt. no. |
Parties/Case file number |
Subject matter | Court | Case status |
|---|---|---|---|---|
| DEER Defendant: ANRE 434/2/2019 |
specific tariffs for the electricity distribution service and the price for the reactive electric energy for DEER (former SDMN). |
Appeal | ||
| 9 | Plaintiff: ELSA, DEER Defendant: ANRE 435/2/2019 |
Legal action for annulment of ANRE Order 199/2018 regarding the approval of the specific tariffs for the electricity distribution service and the price for the reactive energy for DEER former SDTS). |
High Court of Cassation and Justice |
On 9 June 2020, the court rejected the action as unfounded. An appeal was filed, term on 09.03.2023. |
| 10 | Plaintiff: ELSA, DEER Defendant: ANRE 436/2/2019 |
Legal action for annulment of ANRE Order 198/2018 regarding the approval of the specific tariffs for the electricity distribution service and the price for the reactive energy for DEER former SDTN). |
Bucharest Court of Appeal |
In course of settlement. |
| 11 | Plaintiff: DEER Defendant: ANRE 184/2/2015 |
Contentious administrative litigation – Cancellation of ANRE Order no. 146/2014 regarding the setting of the regulated rate of return applied at the approval of the tariffs for the electricity distribution service provided by the DSOs starting with 1st January 2015 and the abrogation of art. 122 of the tariff setting methodology for the electricity distribution service, approved by the ANRE order no. 72/2013. |
Bucharest Court of Appeal |
On 29.04.2022, the Court dismissed the case. Appealable within 15 days from it's communication. |
| 12 | Plaintiff: DEER Defendant: ANRE 309/2/2020 |
Judicial action on the cancellation of documents issued by regulatory authorities – Order no. 227/2019 regarding the approval of the tariffs for the electricity distribution service and the price for the reactive energy for DEER (former. SDMN). |
Bucharest Court of Appeal |
In course of settlement. |
| 13 | Plaintiff: DEER Defendant: ANRE 213/2/2015 |
Cancellation of ANRE Order no. 146/2014 regarding the establishment of the regulated rate of return applied to the approval of the tariffs for the electricity distribution service provided by the DSOs from 1st January 2015 and the abrogation of Art. 122 of the Tariff Setting Methodology for Electricity Distribution Service, approved by the ANRE Order no. 72/2013. |
High Court of Cassation and Justice |
Appeal – On 24.03.2022, the Court dismissed the appeal as unfounded. Final. |
| 14 | Plaintiff: DEER Defendant: ANRE 305/2/2020 |
Action for the cancellation of ANRE's President Order no. 228/2019 regarding the approval of the of the specific tariffs for the electricity distribution service and the price for the reactive energy for DEER (former SDTN). |
Bucharest Court of Appeal |
Action dismissed on merits, a recourse will be filed. |
| 15 | Plaintiff: DEER Defendant: ANRE 371/2/2015 |
Cancellation of the ANRE's President Order no. 156/2014 regarding the approval of the specific tariffs for the electricity distribution service and the price for the reactive energy for DEER (former SDTS). |
Bucharest Court of Appeal |
Suspended until the settlement of the case file no. 208/2/2015. |
| Crt. no. |
Parties/Case file number |
Subject matter | Court | Case status |
|---|---|---|---|---|
| 16 | Plaintiff: DEER Defendant: ANRE 208/2/2015 |
Cancellation of the ANRE's President Order no. 146/2014 regarding the establishment of the regulated rate of return applied to the approval of the tariffs for the electricity distribution service provided by DSOs from 1st January 2015 and the abrogation of Art. 122 of the Tariff Pricing Methodology for Electricity Distribution Service, approved by the ANRE Order no. 72/2013. |
Bucharest Court of Appeal |
A reinstatement request was filed. Attached to case no. 184/2/2015. On 29.04.2022, the Court dismissed the case. Appealable within 15 days from its communication. |
| 17 | Plaintiff: DEER Defendant: ANRE 303/2/2020 |
Cancellation of the ANRE's President Order no. 229/2019 regarding the approval of the specific tariffs for the electricity distribution service and the price for the reactive energy for DEER (former SDTS). |
Bucharest Court of Appeal |
In course of settlement. |
| 18 | Plaintiff: DEER Defendant: ANRE 53/2/2022 |
Cancellation of the ANRE's President Order no. 119/2021 regarding the approval of the specific tariffs for the electricity distribution service and the price for the reactive energy for DEER. |
Bucharest Court of Appeal |
In course of settlement. |
Source: Electrica
| Crt. no. |
Parties/Case file number |
Object | Court | Case status |
|---|---|---|---|---|
| 1 | Plaintiff: ELSA Defendant: NAFA 17237/299/2017 |
1. Suspension of forced execution initiated by NAFA-DGAMC in the enforcement file no. 13267221 under the enforceable order no. 13725/3rd May 2017 and of the no. 13739/3rd May 2017; 2. Cancellation of the enforcement order no. 13725/3rd May 2017, of the no. 61/90/1/2017/263129 (which also bears the No. 13739/3rd May 2017) issued by NAFA-DGAMC for the amount of RON 39,248,818 and all subsequent execution orders issued in connection with the forced execution of the amount of RON 39,248,818 in the execution file no. 13267221. |
District 1 Court |
Suspended until the final settlement of case no. 9131/2/2017. |
| 2 | Plaintiff: ELSA Defendant: NAFA 9131/2/2017 |
Annulment of the tax decisions issued by NAFA and communicated to the company by address no. 665/17 March 2017, new accessories amounting to RON 39,053,522. |
High Court of Cassation and Justice |
Action admitted on merits. NAFA filed an appeal, definitively dismissed on 23.03.2022. |
| 3 | Plaintiff: ELSA Defendant: NAFA - DGAMC 25091/299/2018 |
Appeal to execution and suspension of forced execution - cancellation of the enforcement order no. 13566/22 June 2018 and the notice 13567/22 June 2018, issued in the execution file no. 13267221/61/90/1/2018/278530, amounting to RON 10,024,825 (representing the partial fine from |
District 1 Court |
Suspended until the settlement of case no. 3889/2/2018. |
| Crt. | Parties/Case file | |||
|---|---|---|---|---|
| no. | number | Object | Court | Case status |
| the Competition Council). | ||||
| 4 | Plaintiff: ELSA Defendant: NAFA - DGAMC 2444/2/2021 |
1. Obligation of NAFA to correct the evidence of tax receivables, held according to art. 153 FPC so that it reflects the decisions given by the courts in the disputes between the parties, through decisions that have come into the power of the judicial work, respectively by: a) Decision no. 1078/17.04.2015 issued by the Bucharest Court of Appeal in case no. 5433/2/2013; b) Decision no. 5154/26.06.2017 issued by Bucharest District 1 Court in case no. 51817/299/2016*; c) Decision no. 624/06.03.2015 issued by the Bucharest Court of Appeal in case no. 7614/2/2013; Obligation of NAFA to draw up those acts or administrative correction operations which: - to reflect Electrica's right to the reimbursement of RON 5,860,080 representing fiscal obligation unlawfully reinstated in the fiscal evidence; - to reflect Electrica's right to the reimbursement of RON 817,521 which was not object of the reimbursement made by NAFA on 22 September 2020, arising from the annulment of the fiscal decision in case mentioned in item 1 above, let. a); 2. Obligation of NAFA to pay the legal interests related to the period 12.12.2016 – 21.09.2020, calculated in a percentage of 0.02%/day of delay for the debt amount of RON 18,687,515 reimbursed on 22.09.2020, in total amount of RON 5,161,491.64; 3. Establishing a 15 days term from the decision so that NAFA-DGAMC to settle the fiscal file as indicated above, imposing late penalties of RON 1,000/day of delay for exceeding this term, due to Electrica by DGAMC. |
Bucharest Court of Appeal |
In course of settlement. |
| 5 | Plaintiff: DEER Defendant: NAFA - DGAMC 359/2/2021 (former 1018/2/2016*) |
Cancellation of administrative act – Decision no. 462/23 November 2015, litigation amount of RON 7,731,693 (RON 4,689,686 income tax + RON 3,042,007 VAT) and for the amount of RON 6,154,799 (RON 3,991,503 interests/penalties and late fees related to income tax + RON 2,163,296 interests/penalties and delay fees related to the VAT). |
Bucharest Court of Appeal - retrial |
The court of first instance rejected the action as unfounded. The plaintiff filed an appeal, admitted by the court, which quashes the contested decisions and, re-judging, partially admits the action. Partially annuls Decision no. 462 / 23.11.2015 issued by A.N.A.F –DGSC, regarding |
| Crt. no. |
Parties/Case file number |
Object | Court | Case status |
|---|---|---|---|---|
| point 3. Obliges the defendant A.N.A.F –DGSC to settle on the merits the claim regarding the amount of RON 10,091,323. It sends for retrial to the same court the request regarding the other fiscal obligations retained by the fiscal body, amounting RON 13,886,492. Final (file no. 1018/2/2016 ). In retrial, case no. 1018/2/2016 was registered with a new number, 359/2/2021 - in course of settlement. DGAMG - ANAF rejected by Solution Decision no. 154 / 02.07.2020, the appeal regarding the amount of RON 10,091,323 (Point 3 of Decision no. 462/2015) reason for which an action for annulment was filed on 22.12.2020 (file no. 641/42 / 2020). |
||||
| 6 | Plaintiff: DEER Defendant: DGAMC – NAFA 641/42/2020 641/42/2020 |
Annulment of the administrative act of the SettlementDecision 154/02.07.2020 for the amount of RON 10,091,323 (point 3 of the Decision no. 462 / 23.11.2015) |
Ploiesti Court of Appeal |
In course of settlement. |
| 7 | Plaintiff: DEER Defendant: Galati City Hall - DITVL Galati 263/42/2020 |
Cancellation of administrative documents issued by the fiscal bodies within the Galati City Hall - DITVL Galati, respectively Fiscal inspection report, taxation decision and decision to resolve the appeal. According to the Fiscal Inspection Report, the control team determined an additional tax on buildings, together with the related accessories, in a total amount of RON 24,831,293, for the 2012-2015 period. |
Ploiesti Court of Appeal |
On merits, the Court dismissed the case as unfounded. Appealable within 15 days from it's communication. |
| 8 | Plaintiff: EL SERV Defendant: NAFA 5786/2/2018 |
Cancellation of administrative act NAFA RIF 2017 and decision no. 305/30 May 2017, amounting to RON 46,260,952, the amount by which the fiscal loss of the Company was diminished; RON 7,563,561 established as additional VAT for payment by the refusal to deduct the VAT + related accessories. |
High Court of Cassation and Justice |
By decision 2145/2019 dated 03.07.2019, the court admits the request. Partially annuls Decision no. 22/18.01.2018 regarding the settlement of the appeal, Taxation Decision no. F-MC 305/30.05.2017, The provision regarding the measures established by the fiscal inspection bodies no. 115046/30.05.2017 and RIF no. F-MC 177/30.05.2017, |
| Crt. no. |
Parties/Case file number |
Object | Court | Case status |
|---|---|---|---|---|
| regarding the amount of RON 7,264,463 VAT with the related accessories, illegally retained as non-deductible, respectively regarding the amount of RON 37,083,657 with which the fiscal loss was illegally diminished. In the case, an appeal was filed by both parties, in course of settlement. |
||||
| 9 | Plaintiff: EL SERV Defendant: NAFA 31945/3/2018 |
Cancellation of administrative decision no. 221/19 July 2017 - cancellation of penalties related to the decision no. 305/2017 from above, RON 118,215. |
Bucharest Court |
Suspended until the final settlement of the case no. 5786/2/2018. |
| 10 | Plaintiff: DEER Defendant: MFP NAFA – DGRFP Cluj – AJFP Maramures 371/33/2017 |
Appeal of tax decision no. F-MM 180/2016 regarding additional tax and VAT, as well as interest/late payment increases and late payment penalties. Preliminary administrative procedures were conducted in 2017, prior to the case filing. Amount: RON 32,295,033. |
High Court of Cassation and Justice |
Decision dated 28.03.2022: admits DEER's recourse and dismisses the other recourses. Final. |
| 11 | Plaintiff: EFSA Defendant: NAFA – DGAMC 8709/2/2018 |
Cancellation of: DGSC Decision no. 325/26 June 2018 Decision F-MC 678/28 December 2017 Report F-MC 385/28 December 2017 Decision no. 511/24 October 2018 Decision no. 21095/24 July 2018 Value: RON 11,483,652 |
Bucharest Court of Appeal |
In course of settlement. |
Source: Electrica
| Crt. no. | Parties/Case file number |
Object | Court | Case status |
|---|---|---|---|---|
| 1 | Plaintiff: SPEEH Hidroelectrica S.A. Defendant: ELSA 13268/3/2015* |
Obligation of Electrica to pay to SPEEH Hidroelectrica SA the amount of RON 5,444,761 (the loss suffered by selling energy at an average price per MWh under the production cost of 1 MWh); partial obligation to pay the unrealized benefit of Hidroelectrica by selling the total amount of 398,300 MWh, calculated according to the ANRE regulations (RON 9,646,826, according to the written instructions dated 5 May 2015/RON 5,444,761 according to the applicant's conclusions mentioned in the Conclusion of 15 March 2017); |
Bucharest Court of Appeal |
The court of first instance rejects the exception of the prescription of the material right to action as unreasonable and the action as unfounded. Both parties have appealed, dismissed as unfounded. Both parties filed an appeal. Hidroelectrica's appeal was rejected. The ELSA appeal was admitted, the case being sent for retrial to the Bucharest Court of Appeal. In the retrial, the court admits ELSA appeal, changes the appealed sentence |
| Crt. no. | Parties/Case file number |
Object | Court | Case status |
|---|---|---|---|---|
| ordering the defendant to pay the legal interest from the date of the decision until the effective payment, court costs. |
in the sense that it admits the exception of the prescription of the material right to action and rejects the action as prescribed. With appeal within 30 days from the communication. Definitively settled. |
|||
| 2 | Creditor: ELSA Debtor: Petprod S.A. 47478/3/2012/a1 |
Insolvency proceedings, registering to the list of creditors for the amount of RON 2,591,163 |
Bucharest Court |
Ongoing procedure. |
| 3 | Creditor: ELSA Debtor: CET Braila S.A. 2712/113/2013 |
Bankruptcy, registering to the list of creditors in amount of RON 3,826,035. |
Braila Court | Ongoing procedure. |
| 4 | Creditor: ELSA, AAAS, BCR SA and others Debtor: Oltchim S.A. 887/90/2013 |
Bankruptcy, remaining amount to be recovered – RON 116,058.538. |
Valcea Court |
Ongoing procedure. The amount is registered in the definitive table of receivables updated following the fact that the Decision EU Tribunal from Luxemburg, establishing that Oltchim S.A. benefited from illegal state aid from a numberof Romanian companies, including ELECTRICA S.A, became definitive. |
| 5 | Creditor: ELSA Debtor: Romenergy Industry SRL 2088/107/2016 |
Bankruptcy, registering to the list of creditors in amount of RON 2,917,266. |
Alba Court | Ongoing procedure. |
| 6 | Creditor: ELSA Debtor: Transenergo Com S.A. 1372/3/2017 |
Insolvency proceedings. Amount RON 37,088,830. |
Bucharest Court |
Ongoing reorganization procedure. On 03.02.2021, the Debtor's reorganization plan was confirmed, according to which unsecured receivables do not participate in distributions. ELSA's appeal against the sentence confirming the reorganization plan was definitively dismissed. |
| 7 | Creditor: ELSA Debtor: Electra Management & Supply SRL 41095/3/2016 |
Bankruptcy. Amount: RON 6,027,537. | Bucharest Court |
Ongoing procedure |
| 8 | Creditor: ELSA Debtor: Fidelis Energy SRL 3052/99/2017 |
Insolvency proceedings. Amount: RON 11,354,912. |
Iasi Court | Ongoing procedure |
| 9 | Plaintiff: ELSA |
Administrative litigation - annulment | High Court | The court dismissed ELSA's |
| Crt. no. | Parties/Case file number |
Object | Court | Case status |
|---|---|---|---|---|
| Defendant: Competition Council 3889/2/2018 |
of Competition Council Decision no. 77/20 December 2017, by which an ELSA charge is set through a fine of RON 10,800,984 and, in the subsidiary, the reduction of the fine set up to the legal minimum of 0.5% of ELSA's turnover, by re individualizing the alleged anticompetitive facts, with the retention and full use of all mitigating circumstances applicable to ELSA. |
of Cassation and Justice |
action as unfounded; ELSA filed an appeal – in course of settlement. |
|
| 10 | Plaintiff: ELSA Defendant: EL SERV 39968/3/2018 |
Action for damages - request payment of penalty interest in the amount of RON 6,782,891, related to the amount of RON 10,327,442. |
High Court of Cassation and Justice |
The first court partly admitted the action and ordered the payment of the legal interest calculated for the period 20.11.2015-22.05.2018. EL SERV filed an appeal, dismissed as unfunded. EL SERV filled a recourse, definitively dismissed on 17.05.2022. |
| 11 | Plaintiff: ELSA Defendant: Elite Insurance Company 44380/3/2018 |
Claims - request for equivalent value of the insurance policy issued to guarantee the obligations of Transenergo Com S.A., in the amount of RON 4,000,000. |
Bucharest Court |
Suspended based on art. 307 Civil Procedure Code. |
| 12 | Plaintiff: ELSA Transenergo Com S.A. Defendant: Zurich Broker de Asigurare Reasigurare SRL 3310/3/2020 |
Claims – RON 4,000,000 (ELSA) and RON 97,350 and the bearing of any damage related to the non-fulfilment of its obligation (Transenergo Com) – regarding the insurance policy issued to guarantee the payment obligations of Trasenergo Com |
Bucharest Court of Appeal |
The court rejected the request as unfounded, and Transenergo Com request as directed against a person without passive procedural capacity. With appeal within 30 days from communication. ELSA filed an appeal. To this file was connected the case no. 3474/299/2020. |
| 13 | Plaintiff: ELSA Defendant: former directors and administrators of ELSA 35729/3/2019 |
Claims - claim for damages calculated as a result of the control of the Court of Accounts, amounting RON 322,835,121. |
Bucharest Court |
Suspended untill the final settlement of case 2229/2/2017. |
| 14 | Plaintiff: VIR Company International S.R.L. Defendant: DEER 7507/105/2017 |
Claims - the amount requested by VIR Company International SRL consists of: - EUR 5,000,000, damage caused by delayed issuance of the connection certificate for the photovoltaic plant |
Prahova Court |
The court rejects the exceptions of inadmissibility and lack of object of the introductory request invoked by the defendant, as unfounded. Dismisses the |
| Crt. no. | Parties/Case file number |
Object | Court | Case status |
|---|---|---|---|---|
| located in Valea Calugareasca commune, Darvari village; - EUR 155,000, equivalent of the amount of electricity produced by the plant during the technological tests period; - EUR 145,000, green certificates related to the amount of energy produced by the photovoltaic plant during the technological tests period. In addition, it requires to DEER to pay the penalty interest of 5.75%/year for all the amounts of money claimed and court costs. |
introductory request as unfounded. Accepts in part the request made by the defendant regarding the payment of court costs and obliges the plaintiff to the defendant to pay the court costs, respectively to pay the sum of 50,000 lei representing a reduced attorney's fee. Appealable within 15 days from communication. On 07.07.2022, the court partially admitted the request to increase the expert's fee for the amount of 13,100 lei and obliges the plaintiff to pay this amount to the expert. With appeal within 15 days from the notification of the decision. |
|||
| 15 | Creditor: DEER Debtor: Transenergo Com S.A. 1372/3/2017 |
Insolvency proceedings. Amount: RON 9,274,831. |
Bucharest Court |
Ongoing proceedings. On 3 February 2021, the Debtor's reorganization plan was confirmed, according to which unsecured receivables do not participate in distributions. The Debit represents the accumulated receivables as a result of the distribution subsidiaries merger. |
| 16 | Plaintiff: DEER Debtor: ELSA (18976/3/2020) 33763/3/2019 |
Claims, according to the Court of Accounts Decision, representing payments not owed of RON 20,350,189 made by DEER (former SDMN). |
Bucharest Court |
Suspended until the final settlement of case no. 1677/105/2017. |
| 17 | Plaintiff: Tutu Daniel and Tudori Ionel Dedendant: DEER 180/233/2020* |
Claims - equivalent value of land related to the Galati Center Transformation Station – RON 2,500,000. |
Galati Court | In course of settlement. |
| 18 | Plaintiff: Sinaia City Hall Defendant: DEER 3719/105/2020** |
Action in "Obligation to do" administrative litigation. Sinaia City Hall requests: -mainly: obliging MN to comply with LCD 113/2015 in the sense of executing the works regarding the underground location of the technical municipal networks for the project "Energy efficiency and lighting extension of the historic area - Sinaia" - in the alternative: in case MN will not execute the works in due time and the City Hall will execute the works in our name and on our behalf, MN will be |
Prahova Court |
The Court dismissed the case on merits. Appealable within 15 days from it's communication. |
| Crt. no. | Parties/Case file number |
Object | Court | Case status |
|---|---|---|---|---|
| obliged to pay RON 7,659,402.72 + VAT (RON 9,101,192); - updating the amount requested in subsidiary with the inflation rate and legal interest. |
||||
| 19 | Plaintiff: DEER Defendant: Romenergy Industry S.A. 2088/107/2016 |
Bankruptcy - amount: RON 9,224,595.51. |
Alba Court | Ongoing proceedings. The debit represents the accumulated receivables as a result of the distribution subsidiaries merger. |
| 20 | Plaintiff: Asirom Vienna Insurance Group S.A. Defendant: DEER 439/111/2017 |
Recourse claims – for RON 2,842,347, representing the compensation paid by the plaintiff to the insured company SC Ciocorom SRL following a fire that occurred on 7 March 2013. DEER (former SDTN) fault is invoked for the overvoltage after a power outage. |
Bihor Court | Case dismissed on merits. Appealable within 30 days from it's communication. |
| 21 | Plaintiff: Energo Proiect SRL Defendant: DEER, DEER – Oradea Subsidiary 374/1285/2018 |
Claims of RON 2,387,357. | High Court of Cassation and Justice |
On merits and in the appeal, the case was dismissed. The plaintiff filed a recourse, which is in course of settlement. |
| 22 | Plaintiff: DEER Defendant: ELSA 4469/62/2018 |
Claims according to the Courts of Account findings – RON 8,951,811 |
Brasov Court |
First instance. The High Court of Cassation and Justice solved the negative competence conflict between Brasov Court and Bucharest Court, the case being in course of settlement at Brasov Court. |
| 23 | Plaintiff: DEER Defendant: directors and managers 342/62/2020* |
Claims against the former general managers of the company, as a result of the non-fulfillment of some measures ordered by the Court of Accounts for the amount of RON 8,951,812. |
Brasov Court |
Suspended untill the final settlement of case no. 4469/62/2018. |
| 24 | Plaintiff: EL SERV Defendant: National Leasing IFN S.A. 18711/3/2010 |
Bankruptcy – amount admitted to the list of creditors: RON 21,663,983.27 (guaranteed RON 17,580,203.48 and unsecured RON 4,083,779.79). |
Bucharest Court |
Ongoing proceedings. |
| 25 | Plaintiff: EL SERV Defendant: Servicii Energetice Banat S.A. 8776/30/2013 (joint with cu 2982/30/2014) |
Bankruptcy - amount admitted to the list of creditors RON 72,180,439.68. |
Timis Court | Ongoing proceedings. |
| 26 | Plaintiff: EL SERV | Bankruptcy - amount admitted to the | Dolj Court | Ongoing proceedings. |
| Crt. no. | Parties/Case file number |
Object | Court | Case status |
|---|---|---|---|---|
| Defendant: SEO 2570/63/2014 |
list of creditors RON 26,533,446. | |||
| 27 | Plaintiff: EL SERV Defendant: SED 8785/118/2014 |
Bankruptcy - amount admitted to the list of creditors: RON 15,130,315.27. |
Constanta Court |
Ongoing proceedings. |
| 28 | Plaintiff: EL SERV Defendant: SE Moldova 4435/110/2015 |
Bankruptcy – amount: admitted to the list of creditors RON 73,708,082.90. |
Bacau Court | Ongoing proceedings. |
| 29 | Plaintiff: EL SERV Defendant: New Koppel Romania 20376/3/2016 |
Claims – EUR 655,164, equivalent of RON 3,210,305.75. |
Bucharest Court |
Ongoing proceedings. |
| 30 | Plaintiff: Integrator S.A. Defendant: EL SERV, SAP Romania 34479/3/2016** |
Claims – EUR 1.277.435,25 EUR license +2.650.855,68 EUR maintenance – RON equivalent 19,321,005.11 |
Bucharest Court of Appeal |
The case was suspended on 12.06.2019 until the jurisdiction was established in case 3O 266/2017 registered with the Karlsruhe Court and declined in favor of the Mannheim Court. |
| 31 | Plaintiff: EL SERV Defendant: directors and administrators 2013-2014 35815/3/2019 |
Action in attracting the liability of directors and administrators - measure II.7 of Decision no. 13/27.12.2016 issued by the Romanian Court of Accounts– RON 7,165,549 + legal interest of RON 4,485,340.29. |
Bucharest Court of Appeal |
The court dismissed the action as prescribed, ordering the plaintiff to pay the judicial costs. Appeal suspended, considering the death of the respondent Popescu Romeo; steps have been initiated to identify the heirs. |
| 32 | Plaintiff: EL SERV Defendant: directors and administrators 2010-2014 35828/3/2019 |
Action in attracting the liability of directors and administrators - measure II.8 of Decision no.13/27.12.2016 issued by the Romanian Court of Accounts for the amount of RON 19,611,812 + Legal penalties of RON 14,475,832.43. |
Bucharest Court |
The court dismissed the action as it has been modifed and specified, as prescribed. Orders the plaintiff to pay the judicial costs. An appeal was filed, no term was established. |
| 33 | Creditor: EFSA Debtor: Apaterm S.A. Galati 4783/121/2011* |
Bankruptcy – registering to the list of creditors for the amount of RON 2,547,551. |
Galati Court | Ongoing proceedings. |
| 34 | Creditor: EFSA Debtor: Vegetal Trading SRL Braila |
Insolvency proceedings - registering to the list of creditors for the amount of RON 1,851,392. |
Braila Court | Case closed, the Decision being final on 27.04.2022. |
| Crt. no. | Parties/Case file number |
Object | Court | Case status |
|---|---|---|---|---|
| 1653/113/2014 | ||||
| 35 | Creditor: EFSA Debtor: Ariesmin S.A. Branch 7375/107/2008 |
Bankruptcy - registering to the list of creditors for the amount of RON 20,711,588. |
Alba Court | Ongoing proceedings. |
| 36 | Creditor: EFSA Debtor: Zlatmin S.A. Branch 6/107/2003 |
Bankruptcy - registering to the list of creditors for the amount of RON 9,314,176. |
Alba Court | Ongoing proceedings. |
| 37 | Creditor: EFSA Debtor: Hidromecanica S.A. 3836/62/2009 |
Bankruptcy - registering to the list of creditors for the amount of RON 4,792,026. |
Brasov Court |
Case closed, the decision being final on 13.04.2021. |
| 38 | Creditor: EFSA Debtor: Nitramonia S.A. 1183/62/2004 |
Bankruptcy - registering to the list of creditors for the amount of RON 2,321,847 |
Brasov Court |
Ongoing proceedings. |
| 39 | Creditor: EFSA Debtor: Remin S.A. 32/100/2009 |
Insolvency proceedings - registering to the list of creditors for the amount of RON 71,443,402. |
Timisoara Court |
Ongoing proceedings. |
| 40 | Creditor: EFSA Debtor: Oltchim S.A. 887/90/2013 |
Bankruptcy - registering to the list of creditors for the amount of RON 21,349,705. |
Valcea Court |
Ongoing proceedings. |
| 41 | Creditor: EFSA Debtor: Energon Power and Gas S.R.L. 53/1285/2017 |
Insolvency proceedings - registering to the list of creditors for the amount of RON 2,421,236. |
Cluj Specialized Court |
Ongoing proceedings. |
| 42 | Creditor: EFSA Debtor: CUG S.A. 2145/1285/2005 |
Bankruptcy - registering to the list of creditors for the amount of RON 7,880,857. |
Cluj Specialized Court |
Ongoing proceedings. |
| 43 | Plaintiff: EFSA Defendant: ELSA 6665/3/2019 |
Claims: request of payment rearding the invoices paid without supporting documents, as it has been stated by the Court of Account – RON 7,025,632. |
Bucharest Court of Appeal |
The First Instance court dismissedthe claim of EFSA . The Decision has been appealed – in course of settlement. |
| 44 | Plaintiff: EFSA Defendant: natural persons Called in guarantee: ELSA 35647/3/2019 |
Claims according to art. 155 of Companies Law no. 31/1990 for the amount of RON 7,128,509. |
High Court of Cassation and Justice |
Dismisses as prescribed the action filed by the plaintiff EFSA. and dismisses as objectless the waranty claims issued by the defendants, two former directors and one former general manager, |
| Crt. no. | Parties/Case file number |
Object | Court | Case status |
|---|---|---|---|---|
| against ELSA. The amount for which ELSA was called as collateral is around RON 6,232,398, representing the main debit, to which are added interest and payment of any other amounts that the court may charge. EFSA filed appeal, dismissed as unfounded. Against the Decision a recourse was filed, in preliminary procedings. |
||||
| 45 | Plaintiff: EL SERV Defendant: ENEL DISTRIBUTIE MUNTENIA S.A. 4233/2/2020 (former no. 24088/3/2015) |
Claims. Late payment penalties regarting the litigation with Autocourier S.R.L. in amount of RON 3,068,929.67 according to the Agreement no. 1055/2002 as well as delay penalties for the main debt of RON 5,605,351.26 calculated after 30.06.2015 untill the entire payment of the main debt. |
High Court of Cassation and Justice. |
Case admitted in retrial on merits. The appeal filed by Enel against the decision favorable to SEM was dismissed. E Distributie filed an appeal, dismissed as unfounded. Final. |
| 46 | Plaintiff: IVAN LAURA IONELA IVAN CORNEL IONUT IVAN VLADIMIR MIHAI Defendant: EL SERV 34705/3/2015 |
Civil liability - work accident resulting in employee death (amount of compensation claims – EUR 3 million). |
Bucharest Court |
Case suspended according to art. 413 alin. 1 par. 1 Civil Procedure Code. (criminal case ongoing). |
| 47 | Plaintiff: CAZACU MARIA Defendant: DEER 7212/200/2020 |
Liability of the principal for the act of the defendant- work accident resulting in death of an AISE employee (amount of compensation claimed: EUR 510,000) |
Buzau Court |
In course of settlement. |
| 48 | Plaintiff: PRICOPIE STEFAN Defendant: DEER 12807/231/2019 |
Faulty killing (art.192 NCP) - third party electric shock (amount of damages claimed: EUR 500,000) |
Galati Court of Appeal |
In appeal, on 24.06.2022, the Court admits the appeal declared by the civil party Pricopi Ştefan. Partially abolishes the criminal sentence no. 160 / 11.02.2022 of the Focşani District Court, removing the provisions regarding the acquittal of the defendant, in retrial: it orders the termination of the criminal |
| Crt. no. | Parties/Case file number |
Object | Court | Case status |
|---|---|---|---|---|
| proceedings initiated against the defendant Distribuţie Energie Electrică România S.A. - Focşani Branch, for committing the crime of culpable homicide. Maintains the other provisions of the appealed criminal sentence. Definitive. |
||||
| 49 | Plaintiff: DEER – Defendant: COS Targoviste 1906/120/2013 |
Insolvency – banckrupcy – total amount: RON 5,589,482.51 out of which RON 1,357,789.92 – amount at the list of creditors and RON 4,231,692.59 - current receivables. |
Dambovita Court |
Ongoing procedure. From the total receivables, the amount of RON 3,255,350.39 represents the current receivables, for which a payment request was formulated which is the object of the file 2478/120/2021, admitted on merits; the decission is final, the current receivables being recoverd. |
| 50 | Plaintiff: DEER Defendant : Prutul SA 4798/121/2019** |
Claims: RON 4,343,437 | High Court of Cassation and Justice |
On the merits, the court admitted the exception of inadmissibility. The solution was confirmed in the appealed. A recourse was filed by DEER, definitively dismissed on 17.05.2022. |
| 51 | Plaintiff: Verta Tel SRL Defendant: DEER 4106/3/2021 |
Claims – contractual liability: RON 2,009,233 |
Bucharest Tribunal |
Case dismissed on merits. Appeal partially admitted with reference to retrial end 3 request. With appeal within 30 days from the communication. |
| 52 | Plaintiff: DEER Defendant: Getica 95 SRL 1666/114/2021 |
Insolvency – registration at the list of creditors for the amount of RON 26,283,220.67 |
Buzau Tribunal |
Ongoing proceedings. |
| 53 | Plaintiff: DEER Defendant: AEM S.A. 1347/119/2021 |
Claims – contractual liability – RON 2,851,297.30 |
Covasna Court |
In course of settlement. |
| Crt. no. | Parties/Case file number |
Object | Court | Case status |
|---|---|---|---|---|
| 54 | Plaintiff: Rebrean Gheorghe Defendant: DEER 1635/112/2022 |
Claims - the plaintiff requests moral damages in the amount of 500,000 thousand euros and 370 lei material damages as a result of the bodily injury by electric shock committed on 12.08.2020. |
Bistrita Nasaud Tribunal |
In course of settlement. |
Source: Electrica
| Crt. no. |
Parties/Case file number |
Object | Court | Case status |
|---|---|---|---|---|
| 1 | Plaintiff: ELSA Defendant: Romanian Court of Accounts 2268/2/2014* |
Suspension and cancellation of the administrative act: Decision no. 3/14 January 2014 and the Resolution no. 23/17 March 2014. |
High Court of Cassation and Justice |
First court: the claim is partly admitted, partially cancels the Resolution no. 23 of 17 March 2014 regarding the items 1 and 5 and the Decision no. 3/14 January 2014 regarding the items 4 and 8. Dismisses, as ungrounded the claim regarding items 2, 3 and 4 in the Resolution no. 23/17 March 2014 and items 5, 6 and 7 in the Decision no 3/14 January 2014. Rejects the request to suspend the execution of Decision no. 3/14 January 2014, as unfounded. ELSA and CCR filed an appeal, both being admitted. The court partly admits ELSA's request and sent the case for retrial to the first instance, regarding the annulment of point 5 of the Decision no. 23/17 March 2014, related to point 8 of the Decision no. 3/14 January 2014. Retrial phase: On first instance, the court rejected the plaintiff's request for annulment of point 5 of the Resolution no. 23/17.03.2014, with correspondent in point 8 of the Decision no. 3/14.01.2014 issued by the defendant. With appeal within 15 days from its communication. ELSA has appealed the case, which was finally dismissed on 25.03.2022. |
| 2 | Plaintiff: ELSA Defendant: Romanian Court of Accounts 2229/2/2017 |
Partial annulment of Decision no. 12/27 December 2016, issued by the director of the 2nd Direction from the IVth Department of the Romanian Court of Accounts, regarding the faults from point 1 to 8, with the consequence of dismissing the actions from point 1, 3 to 9 inclusive, imposed to ELSA by the disputed Decision; the partial |
Bucharest Court of Appeal |
In course of settlement. |
| Crt. | Parties/Case file | Object | Court | Case status |
|---|---|---|---|---|
| no. | number | |||
| annulment of the conclusion no. 12/27 February 2017 of the Romanian Court of Accounts, rejecting the objection raised by ELSA against Decision no. 12, regarding the faults and orders mentioned above. In subsidiary, the extension of the deadlines for carrying out all the measures ordered by ELSA through Decision no. 12/27 December 2016 with at least 12 months; the suspension of the enforceability of Decision no. 12 until final settlement of the present dispute. |
||||
| 3 | Plaintiff: ELSA Defendant: Romanian Court of Accounts 7780/2/2018 |
Administrative litigation for annulment of Decision no. 38/9 October 2018, the annulment of the conclusion by which the appeal imposed by Decision no. 12/1 of 27 December 2016 was dismissed, the revocation of the Decision no. 12/1 and the cessation of any CCR control act. |
High Court of Cassation and Justice |
The court of first instance dismissed the action as inadmissible. ELSA filed an appeal, finally dismissed on 26.05.2022. |
| 4 | Plaintiff: EL SERV Defendant: Romanian Court of Accounts 2098/2/2017 |
Litigations with the Romanian Court of Accounts for the annulment of the administrative act – Decision no. 11/27 February 2017. |
Bucharest Court of Appeal |
In course of settlement. |
| 5 | Plaintiff: DEER Defendant: Romanian Court of Accounts Intervenient: SERV 1677/105/2017 |
Suspension and annulment of the measures imposed by the Decision of Prahova Court of Accounts no. 45/2016, following the Control Report of the Prahova Court of Accounts no. 6618/11 November 2016. |
Prahova Court |
In course of settlement. |
Source: Electrica
| Crt. no. |
Parties/Case file number |
Object | Court | Case status |
|---|---|---|---|---|
| 1 | Plaintiff: Niculescu Vladimir Defendant: DEER, City Hall Valenii de Munte 1580/105/2008** |
Claim under Law no. 10/2001 – for a land of 1,558 sqm and built area of 202 sqm, located in Valenii de Munte, 129, N. Iorga street and being used by the Exploitation Center Valeni. |
Prahova Court |
In first instance, the plaintiff's action was partly admitted, it is acknowledged the right to reparative measures by equivalent for the land of 1,402 sqm located in Valenii de Munte, 129, Boulevard. Nicolae Iorga (currently no. 131), Prahova County. The Plaintiff and Valenii de Munte Town Hall filed an appeal. The Plaintiff's appeal was admitted and the case was sent for retrial to the first instance. In the retrial, the first instance court admitted the right of the |
| Crt. no. |
Parties/Case file number |
Object | Court | Case status |
|---|---|---|---|---|
| plaintiff to compensatory measures under the law regarding some measures for completing the restitution process of the buildings taken over abusively, for the land with an area of 1,402 sqm. With appeal within 15 days from the communication. |
||||
| 2 | Plaintiff: DEER Defendant: Local Council of Oradea City, RCS&RDS 3340/111/2015 |
Cancellation of Oradea LCD no. 108/17 February 2014 regarding the organization of the public auction for the concession of the 100,000 sqm land area, in order to realize an underground sewerage for the placement of electronic and electrical communications networks. |
Bihor Court | At the request of RCS-RDS, the case was suspended until the case file 2414/2/2016 was settled with Delalina SRL, a file that is in the role of the Bucharest Court of Appeal. The file no. 2414/2/2016 was definitively solved on 22.03.2021, without a request for reinstatement being formulated, following to be ascertained by the court the expiration of the request, DEER no longer having an interest in supporting the request for summons. |
| 3 | Plaintiff: Delalina S.R.L. Defendant: DEER 910/111/2016 |
The obligation to issue technical permit for connection in the favour of SC Delalina SRL. |
Bihor Court | The case file was suspended until the settlement of the case file no. 2414/2/2016 with Delalina SRL, case file on the lawsuit of the Bucharest Court of Appeal. The file 2414/2/2016 was definitively resolved on 22.03.2021, without being formulated by the plaintiff request for reinstatement, reason for which on 24.02.2022 the Satu Mare Court found the expiration of the request for summons, the solution being final. |
| 4 | Plaintiff: Carei City and others Defendant: DEER 15600/211/2016* |
Claims - it is requested to grant compensation in the form of material and moral damages, caused, by interrupting the supply of electricity to the consumers, in the Carei municipality, during 31.12.2014-02.01.2015. |
Cluj Specialized Court |
On 21.04.2021, the court rejects the action of a plaintiff as a result of admitting the exception of lack of capacity to use, rejects the exception of lack of active procedural quality of plaintiffs, invoked by defendants, rejects the exception of lack of passive procedural quality of defendant DEER, rejects the exception of lack of procedural quality liabilities of the defendant Electrica Furnizare SA and admits in part the action in |
| Crt. no. |
Parties/Case file number |
Object | Court | Case status |
|---|---|---|---|---|
| contradiction with the defendant ELECTRICA FURNIZARE SA. Dismisses as unfounded the request for formal proceedings by the applicants in the preceding paragraph in contradiction with DEER. Obliges the defendant ELECTRICA FURNIZARE S.A., to pay the moral damages in favor of the plaintiffs in a differentiated way, in the amount of 500 RON for some of the plaintiffs, 750 RON and 1000 RON for other plaintiffs, rejecting at the same time the moral damages for other plaintiffs. Appeal filed by Electrica Furnizare. In appeal, the court rejects, as unfounded, the main appeal declared by the appellant Electrica Furnizare SA and rejects, as unfounded, the incidental appeal declared by the respondents TN, and MC. With the right to appeal within 30 days from the communication. |
||||
| 5 | Plaintiff: Delalina S.R.L., Foto Distributie S.R.L. Defendant: DEER, ANRE, Romanian Government, Ministry of Economy, Commerce and Relationships with the Business Environment, Ministry of Energy, Banat Enel Distribution, Muntenia Enel Distribution, Dobrogea Enel Distribution 2414/2/2016 |
Cancellation of administrative acts (Order 73/2014, Concession agreements). |
High Court of Cassation and Justice |
First court has rejected the exceptions and the action filed by the plaintiffs, which have initiated an appeal; On 22.03.2021, the court ruled in favor of the company, stating that DEER's (former SDTN) incident appeal was invalid and rejected as unfounded the main appeal filed by Foto Distributie SRL si Delalina SRL. The court rejected as unfounded the appeals filedby E-Distributie Muntenia SA (former Enel Distributie Muntenia), E Distributie Banat SA (former Enel Distributie Banat) si E Distributie Dobrogea SA (former Enel Distributie Dobrogea). Dismisses, as unfounded, the cross - appeal brought by the appellant - defendant Ministry of Economy, Entrepreneurship and Tourism (Ministry of Economy) and the cross - appeal filed by the Ministry of Energy against the same sentence. Final. |
| Crt. | Parties/Case file | Object | Court | Case status |
|---|---|---|---|---|
| no. | number | The file was suspended on | ||
| 6 | Plaintiff: Delalina S.R.L., Foto Distributie S.R.L. Defendant: ANRE Intervener: DEER 4013/2/2016 |
The cancellation of the ANRE decision on refusal to give licenses for electricity distribution. |
Court of Appeal Bucharest |
03.04.2017 until the settlement of the file 2414/2/2016. The file 2414/2/2016 was definitively resolved on 22.03.2021, without being formulated by the plaintiffs request for reinstatement, reason for which on 30.03.2022 the Bucharest Court of Appeal found the expiration of the request for summons in judgment, the solution being final. |
| 7 | Plaintiff: ELSA Defendant: Baile Herculane City 4572/208/2018* |
Claim for land Lot 1-NC 32024 (area of 259 sqm) and lot 2 NC 31944 (with a surface of 1,394 sqm), both located in Baile Herculane, 1, Uzinei street and FC rectification. |
Timisoara Court of Appeal |
The first court admits the exception of the lack of active procedural quality of ELSA and dismisses the action. ELSA filed an appeal, dismissed as unfounded. ELSA filled an appeal, admitted by court, which sends the case for retrial to Caras Severin Court. Retrial – the appeal was dismissed as unfounded. ELSA filed an appeal. |
| 8 | Plaintiff: E Distributie Banat Defendant: ELSA 12857/3/2019 |
(i) ELSA's compliance with the obligation of not to do regarding the share capital and the AoA of the EDB and the termination of abusive actions consisting of the requests addressed to the ONRC to change the structure of the share capital and the articles of association of the EDB by increasing the share capital with the value of the land in the Certificates of attestation of the property right held by ELSA on the land used by EDB in order to carry out the activity; (ii) Stating the fact that Electrica does not hold the quality of public authority involved in the privatization process and, consequently, acknowledging the absence of the right of ELSA to request ONRC to modify the constitutive act of the EDB by increasing the share capital with the value of the land owned by ELSA based on CADP on the used land from EDB; (iii) As against to the abusive actions taken in the EDB's opinion, ELSA's obligation to pay the damages whose existence and amount will be proved by the deadline provided by law. |
Bucharest Court |
Case dismissed on merits, applealable within 30 days from it's communication. |
| 9 | Plaintiff: ELSA, SAPE Defendant: E Distributie Banat |
Action for the annulment of Shareholders resolution 5/06.12.2018 (share capital increase for SAPE). |
Timis Court | Case dismissed on merits, an appeal was filed. At this case was connected the |
| Crt. | Parties/Case file | Object | Court | Case status |
|---|---|---|---|---|
| no. | number | case no. 988/30/2019. | ||
| 949/39/2019 | ||||
| 10 | Plaintiff: ELSA Defendant: Targu Neamt 122/321/2020 |
1. obliging the defendant to leave us in full ownership and possession of the land with an area of 3,389 sqm, located in Targu Neamt, 2. rectification of the entries from the land book no. 55409 of the City of Targu Neamt, in the sense of elimination of the inappropriate registrations made in it, in UAT order to agree the tabular status with the real legal situation of the building, respectively the cancellation of the property right of the tabular owner Targu Neamt City and the registration of the property right of the Energy Company Electrica SA 3. Order the defendant to pay the court costs. |
Bacau Court of Appeal |
The action was definitively dismissed on merits on 04.04.2022. |
| 11 | Plaintiff: ELSA Defendant: Bicaz 91/188/2020 |
1.obliging the defendant to leave us in full ownership and possession of the land in the area of 10,524 sqm (from documents 22,265 sqm), located in Bicaz,, Neamt county. 2. rectification of the entries from the land book no. 52954 of Bicaz City, in the sense UAT of elimination of inappropriate entries made in it, in order to agree on the tabular status with the real legal situation of the building, respectively the cancellation of the property right of the tabular owner Bicaz City and the registration of the property right of Societatea Energetice Electrice Electrica S.A. 3. Order the defendant to pay the court costs. |
Neamt Tribunal |
The court of first instance partially annuls the Decision of the Local Council of Bicaz no. 94 / 25.08.2016, respectively regarding the surface of 10,524 sqm of urban land 3, Bicaz, Energiei street (former Plant), located at the last position of the table in the Annex to HCL no. 94 / 25.08.2016, following the admission of the exception of illegality, invoked by the plaintiff. Dismisses the action brought by ELSA as unfounded. Admits in part the action in the rectification of the land book. It orders the rectification of the Land Book no. 52954 of the City of Bicaz, regarding the land with an area of 10,524 sqm, located in Bicaz, 3, Energiei street, , Neamţ County (former Uzinei), in the sense of deleting the property right of the defendant Bicaz city, as a result of the partial annulment of HCL no. 94 / 25.08.2016, regarding this land. Rejects as unfounded the applicant's request to order the rectification of the Land Book no. 52954 of the City of Bicaz, regarding the land with an area of 10,524 sqm, located in Bicaz, 3, Energiei street, , Neamţ |
| Crt. no. |
Parties/Case file number |
Object | Court | Case status | |
|---|---|---|---|---|---|
| County (former Uzinei), in the sense of registering the ELSA property right over the above mentioned land. ELSA filed an appeal, dismissed by the court. The decision is appealable within 30 days from it's communication. Admits in part the request for |
|||||
| 12 | Plaintiff: ELSA Defendant: Videle City, through Mayor 948/335/2020 |
1.obliging the defendants to leave us in full ownership and possession of the land surfaces that overlap with the land located in 1, Aleea FRE street, Videle, Teleorman county, for which we hold CADP. 2. the delimitation of the above-mentioned properties, by establishing the boundary line according to the property deeds of the parties; 3. rectification of the entries in the land book and registration of the property right of the plaintiff ELSA on this area of land |
Videle Court | summons and consequently: establishes the land line boundary of the plaintiff's property (ELSA) on the current boundarylines, outlined on the situation plan related to the completion of the expert report, with the coordinates indicated by the expert, land delimited points 1-2-3-4-5-6-7-8-9-10-11- 12-13-14-15-16-17-18-19-20- 21-22-23. It orders the rectification of the land book no. 23176 by repositioning, in order to eliminate any virtual overlap between the land belonging to the plaintiff, with the boundary line as previously established, and the land registered in this land book. Dismisses the action as unfounded. Appealable within 30 days from it's communication. Definitively settled. |
|
| 13 | Plaintiff: DEER Defendant: ANARC (ANCOM) andTelekom Romania Communications SA 7407/2/2020 |
Appeal against Decision no. 1177 / 13.11.2020 of the ANARC President. It was requested the partial annulment of the ANCOM decision and the complete rejection of the Telekom Romania request. |
Bucharest Court of Appeal |
In course of settlement. | |
| 14 | Plaintiff: Valenii de Munte City Hall Defendant: DEER 2848/105/2020 |
Valenii de Munte City Hall requests the obligation of DEER (Ploiesti) to take over public lighting installations and to pay their equivalent value of RON 466,880. |
Prahova Court |
In course of settlement. | |
| 15 | Plaintiff : ELSA and the subsidiaries Defendant: Romanian Government 3781/2/2020 |
Annulment of administrative act: Government Decision 1041/2003 on some measures to regulate the facilities granted to pensioners in the electricity sector. |
High Court of Cassation and Justice |
Case dismissed on merits; it was filed an appeal, admitted by the court on 27.06.2022. The court annuls the Government Decision no. 1041/2003 on some measures to regulate the facilities granted to pensioners in the electricity sector. Final. |
| Crt. | Parties/Case file | |||
|---|---|---|---|---|
| no. | number | Object | Court | Case status |
| 16 | Plaintiff: Grup 4 Instalatii Defendant: DEER 375/1285/2021 |
The obligation of DEER to recognize, to respect the property right of G4Installatii regarding the buildings located in Cluj Napoca, 28A, Ilie Macelaru Street . and 2, Uzinei Electrice Street. , registered in land book 297841 Cluj Napoca with no. 297841, consisting of land with an area of 10720 sqm and constructions: construction registered in land book with no. 297841- C1, construction of administrative headquarters with an area of 1560 sqm; body A, construction no. 297841- C2 - 512 sqm, building B, construction no. 297841 - C3 - 171 sqm, building C, construction no. 297841 - C4 - 338 sqm, building D, construction no 297841-C6 - 348 sqm - 110/10 Kw Transformation Station. It is requested the handing over of the above buildings and the rectification of the land book registrations in the sense of: the annulment of the tabulation conclusions by which the DEER property right was registered, the deregistration of the land book property right, the registration of the property right in favor of G4I. |
Cluj Tribunal | The court admits the exception of the material incompetence of the Cluj Specialized Tribunal, an exception invoked ex officio and consequently declines the competence to resolve the request for summons in favor of the Cluj Tribunal-Civil Section. Pending settlement in this court. |
| 17 | Plaintiff: ELSA Defendant: Kaufland Romania SCS, Deva City, through the Mayor and Deva City Council 156/221/2021 |
1. obliging the defendants to leave us in full ownership and possession of the land surfaces that overlap with the ELSA land located in Deva municipality, 1, Dorobanți street, Hunedoara county, as follows: (a) Kaufland Romania SCS - land areas of 15 sqm and 50 sqm (part of the Kaufland Deva parking lot), identified by IE 68452, which overlap to the N-W with the land owned by Electrica; (b) Deva Municipality, through the Mayor and the Local Council of Deva Municipality - land areas: (i) 2 sqm (part of the "Playground for children"), identified by IE 71851, which overlaps to the NE with the land in the ownership of Electrica and (ii) of 23 sqm (part of "Calea Zarandului"), identified by IE 75973, which overlaps to the SW with the land owned by Electrica; 2. the delimitation of the above mentioned properties, by establishing the boundary line according to the property deeds of the parties; 3. rectification of the entries in the land book regarding the above-mentioned land areas, in the sense of eliminating the inappropriate entries made, in order to reconcile the tabular status with the real legal situation of the real estate, respectively of the cancellation of the property right tabular owners and |
Deva Court | Action admitted in part. |
| Crt. | Parties/Case file | |||
|---|---|---|---|---|
| no. | number | Object | Court | Case status |
| the registration of the property right of the applicant ELSA over these land areas. |
||||
| 18 | Plaintiff: ELSA Defendant: UAT Chisineu Cris 2143/210/2020 |
1. obliging the defendant to leave us in full ownership and possession of the land with an area of 529 sqm identified with Cadastral no. 306526, registered in the land book no. 306526 Of Chisineu Cris,. County Arad, located in Chișineu Criș, 63, Înfrățirii street. Arad county, as well as the land with an area of 121 sqm, identified with Cadastral no. 306527, registered in the lank booj no. 306527 of Chisineu Cris,. County Arad, located in Chișineu Criș, 63, Înfrățirii street. , Arad County. 2. rectification of the entries in the land books no. 306526 and 306527 of the City of Chisinau Cris, in the sense of eliminating the inappropriate entries made, in order to reconcile the tabular status with the real legal situation of the buildings, respectively the cancellation of the property right of the tabular owner Chisinau Cris City and registration of the property right of ELSA 3. Order the defendant to pay the costs. |
Timisoara Court of Appeal |
Case dismissed on merits and in appeal. It was filed a recourse – in course of settlement. |
| 19 | Plaintiff: Alexandra Borislavschi Defendant: ELSA ARB - 5670 |
1.Obligation of the defendant to pay to the plaintiff the amount of 166,738 lei, representing the percentage of 55% of the OAVT package, in accordance with the provisions of Annex 3 to the mandate contract no. 42/10.08.2015. 2. Obligation of the defendant to pay to the plaintiff damages for non-execution of the obligation to pay the percentage of 55% of the OAVT package. 3. Obligation of the defendant to pay the amount of 11,973 lei, representing the annual variable remuneration for 2018. 4. Obligation of the defendant to pay the amount of 24,756 lei, representing the annual variable remuneration related to 2019. 5. Updating the amounts provided in the preceding items, with penalizing legal interest. The asked damages should be calculated as the legal penalty interest plus 8% payable per each day of delay as of the date of the registration of the claim until the payment of the 55% of OAVT package by the defendant. 6. Obligation of the defendant to pay the expenses incurred by the request for arbitration. |
Vienna International Arbitral Centre |
Solved by transaction, on 07.02.2022 |
Source: Electrica
| ANRE | Romanian Energy Regulatory Authority |
|---|---|
| BoD | Board of Directors |
| BRP | Balance Responsible Party |
| BSE | Bucharest Stock Exchange |
| CAPEX | Capital Expenditure |
| CGC | Corporate Governance Code |
| CMBC (EA/CN) | Centralized Market for Bilateral Contracts (Extended Auction/Continuous Negotiation) |
| CMC | Competitive Market Component |
| CMNG-AN | Centralized Market for Bilateral Natural Gas Contracts – Auction and Negotiation |
| CMNG-PA | Centralized Market for Bilateral Natural Gas Contracts – Public Auction |
| CMNG – OTC | Centralized Market for Bilateral Natural Gas Contracts – OTC |
| CMUS | Centralized Market for Universal Service |
| CNTEE | The National Transmission System Operator |
| DAM | Day Ahead Market |
| DAM-NG | Day Ahead Market – Natural Gas |
| DEER | Distributie Energie Electrica Romania |
| DSO | Distribution System Operator |
| EBIT | Earnings before interest and tax |
| EBITDA | Earnings before interest, tax, depreciation and amortization |
| EDN | Electrical Distribution Network |
| ELSA | Electrica S.A. |
| EGMS | Extraordinary General Meeting of Shareholders |
| EU | European Union |
| EUR | EURO, the monetary unit of several member states of the European Union |
| FPM-LT | Medium and Long Term Flexible Products Market |
| GC | Green Certificates |
| GDP | Gross Domestic Product |
| GDR | Global Depositary Receipts |
| GEO | Government Emergency Ordinance |
| GMS | General Meeting of Shareholders |
| HV | High Voltage |
| IAS | International Accounting Standard |
| IFRIC | International Financial Reporting Interpretations Committee |
| IFRS | International Financial Reporting Standard |
| IM-NG | Intraday Market for Natural Gas |
| IPO | Initial Public Offering |
|---|---|
| IR | Investor Relations |
| ISIN | International Securities Identification Number |
| KPI | Key Performance Indicators |
| kV | KiloVolt |
| LR | Last Resort |
| LV | Low Voltage |
| MV | Medium Voltage |
| MVA | Mega Volt Ampere |
| MWh | MegaWatt hour |
| MKP | Management Key Position |
| NAFA | National Agency for Fiscal Administration |
| NES | National Energy System |
| NL | Network Losses |
| NRC | Nomination and Remuneration Committee |
| OMPF | Order of Ministry of Public Finances |
| OGMS | Ordinary General Meeting of Shareholders |
| OHL | Overhead Line |
| OHS | Occupational Health and Safety |
| OPCOM | Romanian Gas and Electricity market operator |
| RAB | Regulated Asset Base |
| RM | Retail Market |
| RON | Romanian monetary unit |
| RRR | Regulated Rate of Return |
| SAD | Distribution Automation System |
| SCADA | Supervisory Control And Data Acquisition |
| SDMN | Societatea de Distributie a Energiei Electrice Muntenia Nord |
| SDTN | Societatea de Distributie a Energiei Electrice Transilvania Nord |
| SDTS | Societatea de Distributie a Energiei Electrice Transilvania Sud |
| SEM | Servicii Energetice Muntenia SA |
| SEO | Servicii Energetice Oltenia SA |
| SoLR | Supplier of last resort |
| TWh | TeraWatt hour |
| TSO | Transmission and system operator |
| UM | Unit of Measurement |
| US | Universal Service |
| VAT | Value Added Tax |
Condensed Consolidated Interim Financial Statements
as at and for the six month period ended
prepared in accordance with
International Accounting Standard 34 – "Interim Financial Reporting", as adopted by the European Union
PREPARED IN ACCORDANCE WITH IAS 34 "INTERIM FINANCIAL REPORTING" AS ADOPTED BY THE EUROPEAN UNION
| Condensed consolidated statement of financial position | 1 | |
|---|---|---|
| Condensed consolidated statement of profit or loss | ||
| Condensed consolidated statement of comprehensive income | 5 | |
| Condensed consolidated statement of changes in equity | 7 | |
| Condensed consolidated statement of cash flows | 9 | |
| Notes to the condensed consolidated interim financial statements | ||
| 1. | Reporting entity and general information | 11 |
| 2. | Basis of accounting | 14 |
| 3. | Basis of measurement | 15 |
| 4. | Significant accounting policies | 15 |
| 5. | Operating segments | 16 |
| 6. | Revenue | 19 |
| 7. | Other income | 19 |
| 8. | Electricity and natural gas purchased | 19 |
| 9. | Earnings per share | 20 |
| 10. | Income tax | 20 |
| 11. | Trade receivables | 21 |
| 12. | Cash and cash equivalents | 22 |
| 13. | Other payables | 23 |
| 14. | Long-term bank borrowings | 23 |
| 15. | Provisions | 25 |
| 16. | Financial instruments - fair values | 26 |
| 17. | Related parties | 26 |
| 18. | Acquisition of subsidiaries | 28 |
| 19. | Contingencies | 30 |
| 20. | Subsequent events | 31 |
AS AT 30 JUNE 2022
(All amounts are in THOUSAND RON, if not otherwise stated)
| Note | 30 June 2022 (reviewed) |
31 December 2021 (audited) |
|
|---|---|---|---|
| ASSETS | |||
| Non-current assets | |||
| Intangible assets related to concession arrangements | 5,522,913 | 5,514,557 | |
| Other intangible assets | 9,004 | 8,983 | |
| Goodwill | 18 | 10,589 | - |
| Property, plant and equipment | 492,410 | 505,419 | |
| Investments in associates | 18,826 | 25,810 | |
| Deferred tax assets | 42,453 | 83,531 | |
| Right of use assets | 49,335 | 20,945 | |
| Other non-current assets | 1,863 | 1,661 | |
| Total non-current assets | 6,147,393 | 6,160,906 | |
| Current assets | |||
| Trade receivables | 11 | 1,936,417 | 1,344,619 |
| Subsidies receivable | 7 | 1,132,076 | - |
| Other receivables | 31,160 | 48,600 | |
| Cash and cash equivalents | 12 | 178,369 | 221,830 |
| Inventories | 85,300 | 72,958 | |
| Prepayments | 14,916 | 5,034 | |
| Current income tax assets | 23,777 | 23,777 | |
| Assets held for sale | 10,931 | 5,412 | |
| Total current assets | 3,412,946 | 1,722,230 | |
| Total assets | 9,560,339 | 7,883,136 | |
| EQUITY AND LIABILITIES | |||
| Equity | |||
| Share capital | 3,464,436 | 3,464,436 | |
| Share premium | 103,049 | 103,049 | |
| Treasury shares reserve | (75,372) | (75,372) | |
| Capital contributions in kind from shareholders | 7 | 7 | |
| Revaluation reserve | 97,283 | 102,829 | |
| Legal reserves | 408,405 | 408,405 | |
| Retained earnings | 635,822 | 950,228 | |
| Total equity attributable to the owners of the Company |
4,633,630 | 4,953,582 | |
| Non-controlling interests | 18 | (424) | - |
| Total equity | 4,633,206 | 4,953,582 | |
| (Continued on page 2) |
AS AT 30 JUNE 2022
(All amounts are in THOUSAND RON, if not otherwise stated)
| Note | 30 June 2022 (reviewed) |
31 December 2021 (audited) |
|
|---|---|---|---|
| Liabilities | |||
| Non-current liabilities | |||
| Long-term bank borrowings | 14 | 105,029 | 118,756 |
| Lease liabilities | 33,088 | 12,102 | |
| Deferred tax liabilities | 93,458 | 161,926 | |
| Employee benefits | 136,098 | 149,177 | |
| Other payables | 13 | 38,226 | 32,732 |
| Total non-current liabilities | 405,899 | 474,693 | |
| Current liabilities | |||
| Current portion of long-term bank borrowings | 14 | 593,985 | 509,733 |
| Current portion of lease liabilities | 17,797 | 9,442 | |
| Bank overdrafts | 12 | 2,369,873 | 627,402 |
| Trade payables | 919,147 | 891,335 | |
| Other payables | 13 | 481,057 | 271,263 |
| Deferred revenue | 19,390 | 9,662 | |
| Employee benefits | 82,946 | 101,102 | |
| Provisions | 15 | 37,039 | 34,922 |
| Total current liabilities | 4,521,234 | 2,454,861 | |
| Total liabilities | 4,927,133 | 2,929,554 | |
| Total equity and liabilities | 9,560,339 | 7,883,136 |
The accompanying notes are an integral part of these condensed consolidated interim financial statements.
Chief Executive Officer Chief Financial Officer
Alexandru – Aurelian Chirita Stefan Alexandru Frangulea
CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS
FOR THE SIX MONTH PERIOD ENDED 30 JUNE 2022
(All amounts are in THOUSAND RON, if not otherwise stated)
| Six month period ended | |||
|---|---|---|---|
| Note | 30 June 2022 (reviewed) |
30 June 2021 (reviewed) |
|
| Revenue | 6 | 4,628,791 | 3,260,073 |
| Other income | 7 | 1,304,330 | 78,546 |
| Electricity and natural gas purchased | 8 | (4,937,596) | (2,166,550) |
| Construction costs related to concession agreements |
(228,770) | (176,919) | |
| Employee benefits | (389,448) | (390,060) | |
| Repairs, maintenance and materials | (36,079) | (42,451) | |
| Depreciation and amortization | (248,212) | (242,075) | |
| Impairment for trade and other receivables, net | (50,036) | (39,763) | |
| Other operating expenses | (189,929) | (165,775) | |
| Operating profit/(loss) | (146,949) | 115,026 | |
| Finance income | 2,298 | 2,107 | |
| Finance costs | (59,765) | (13,787) | |
| Net finance cost | (57,467) | (11,680) | |
| Share of results of associates | (8) | - | |
| Profit/(Loss) before tax | (204,424) | 103,346 | |
| Income tax benefit/(expense) | 10 | 28,926 | (27,276) |
| Net profit/(loss) | (175,498) | 76,070 | |
| Net profit/(Loss) attributable to: | |||
| - owners of the Company |
(175,480) | 76,070 | |
| - non-controlling interests |
(18) | - | |
| Net profit/(loss) | (175,498) | 76,070 | |
| Earnings/ (Loss) per share | |||
| Basic and diluted earnings/ (loss) per share (RON) |
9 | (0.52) | 0.22 |
The accompanying notes are an integral part of these condensed consolidated interim financial statements.
Alexandru – Aurelian Chirita Stefan Alexandru Frangulea
Chief Executive Officer Chief Financial Officer
FOR THE SIX MONTH PERIOD ENDED 30 JUNE 2022
(All amounts are in THOUSAND RON, if not otherwise stated)
| Three month period ended | ||
|---|---|---|
| 30 June 2022 (unaudited and not reviewed) |
30 June 2021 (unaudited and not reviewed) |
|
| Revenue | 2,049,746 | 1,563,850 |
| Other income | 625,333 | 45,450 |
| Electricity and natural gas purchased | (2,065,065) | (1,026,914) |
| Construction costs related to concession agreements | (120,509) | (90,008) |
| Employee benefits | (201,898) | (203,616) |
| Repairs, maintenance and materials | (10,556) | (22,934) |
| Depreciation and amortization | (124,163) | (120,447) |
| Impairment for trade and other receivables, net | (30,335) | (34,488) |
| Other operating expenses | (94,771) | (73,597) |
| Operating profit | 27,782 | 37,296 |
| Finance income | 1,867 | 100 |
| Finance costs | (41,624) | (7,687) |
| Net finance cost | (39,757) | (7,587) |
| Share of results of associates | (3) | - |
| Profit/(Loss) before tax | (11,978) | 29,709 |
| Income tax benefit/(expense) | (5,733) | (11,520) |
| Net profit/(loss) | (17,711) | 18,189 |
| Net profit/(Loss) attributable to: - owners of the Company |
(17,693) | 18,189 |
| - non-controlling interests |
(18) | - |
| Net profit/(loss) | (17,711) | 18,189 |
| Earnings/ (Loss) per share | ||
| Basic and diluted earnings/ (loss) per share (RON) | (0.05) | 0.05 |
The accompanying notes are an integral part of these condensed consolidated interim financial statements.
Chief Executive Officer Chief Financial Officer Alexandru – Aurelian Chirita Stefan Alexandru Frangulea
FOR THE SIX MONTH PERIOD ENDED 30 JUNE 2022
(All amounts are in THOUSAND RON, if not otherwise stated)
| Six month period ended | ||
|---|---|---|
| 30 June 2022 (reviewed) |
30 June 2021 (reviewed) |
|
| Net profit/(loss) | (175,498) | 76,070 |
| Other comprehensive income | ||
| Items that will not be reclassified to profit or loss | ||
| Re-measurements of the defined benefit liability | 9,877 | (5,180) |
| Tax related to re-measurements of the defined benefit liability | (1,550) | 709 |
| Other comprehensive income, net of tax | 8,327 | (4,471) |
| Total comprehensive income/(loss) | (167,171) | 71,599 |
| Total comprehensive income/(loss) attributable to: | ||
| - owners of the Company |
(167,153) | 71,599 |
| - non-controlling interests |
(18.0) | - |
| Total comprehensive income/ (loss) | (167,171) | 71,599 |
The accompanying notes are an integral part of these condensed consolidated interim financial statements.
Chief Executive Officer Chief Financial Officer
Alexandru – Aurelian Chirita Stefan Alexandru Frangulea
FOR THE SIX MONTH PERIOD ENDED 30 JUNE 2022
(All amounts are in THOUSAND RON, if not otherwise stated)
| Three month period ended | ||
|---|---|---|
| 30 June 2022 (unaudited and not reviewed) |
30 June 2021 (unaudited and not reviewed) |
|
| Net profit/(loss) | (17,711) | 18,189 |
| Other comprehensive income | ||
| Items that will not be reclassified to profit or loss | ||
| Re-measurements of the defined benefit liability | 9,877 | (5,180) |
| Tax related to re-measurements of the defined benefit liability | (1,550) | 709 |
| Other comprehensive income/(loss), net of tax | 8,327 | (4,471) |
| Total comprehensive income | (9,384) | 13,718 |
| Total comprehensive income/(loss) attributable to: | ||
| - owners of the Company |
(9,366) | 13,718 |
| - non-controlling interests |
(18) | - |
| Total comprehensive income/(loss) | (9,384) | 13,718 |
The accompanying notes are an integral part of these condensed consolidated interim financial statements.
Chief Executive Officer Chief Financial Officer Alexandru – Aurelian Chirita Stefan Alexandru Frangulea
FOR THE SIX MONTH PERIOD ENDED 30 JUNE 2022 (All amounts are in THOUSAND RON, if not otherwise stated)
| ibu b le At tr ta |
he to t ow ne rs o |
f t he Co mp an |
y | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| S ha re ita l ca p |
S ha re ium pr em |
Tr ea su ry ha s res re se rve |
Ca ita l p rib ion nt ut co s in kin d fro m ha ho lde s re rs |
Re lua ion t va re se rve |
Le l g a re se rve s |
Re ine d ta ing ea rn s |
l To ta |
No n llin nt co ro g int ts er es |
To l ta ity eq u |
||
| lan Ba at 1 J ce an ua ry 20 22 ( d ite d ) au |
3, 46 4, 43 6 |
10 3, 04 9 |
( 75 37 2) , |
7 | 10 2, 82 9 |
40 8, 40 5 |
95 0, 22 8 |
4, 95 3, 58 2 |
- | 4, 95 3, 58 2 |
|
| Co he ive in mp re ns co me Lo for he rio d t ss pe (re d ) vie we |
- | - | - | - | - | - | ( 48 0 ) 17 5, |
( 48 0 ) 17 5, |
( 18 ) |
( 49 8 ) 17 5, |
|
| Ot he he ive in r c om pre ns co me l c he ive lo To ta om pr e ns ss (r iew d ) ev e |
- - |
- - |
- - |
- - |
- - |
- - |
8, 32 7 ( 16 7, 15 3 ) |
8, 32 7 ( 16 7, 15 3 ) |
- ( 18 ) |
8, 32 7 ( 16 7, 17 1) |
|
| Tr ion it h o ct an sa s w wn er s f t he Co o mp an y (r iew d ) ev e Co rib ion nd nt ut s a d ist rib ion ut s |
|||||||||||
| Div ide nd he f s t o t ow ne rs o he t Co mp an y |
- | - | - | - | - | - | ( 2, 79 9 ) 15 |
( 2, 79 9 ) 15 |
- | ( 2, 79 9 ) 15 |
|
| l t ion it h To ta t ra ac ns s w he f t he t ow ne rs o (r iew d ) Co mp an y ev e |
- | - | - | - | - | - | ( 15 2, 79 9 ) |
( 15 2, 79 9 ) |
- | ( 15 2, 79 9 ) |
|
| Ot he ha in ity r c ng es eq u (r iew d ) ev e |
|||||||||||
| Tra fer f r lua tio ns o ev a n d e e t eta ine ing res erv o r arn s du de nd e t cia tio o pre n a f p dis ls o lan ert t po sa rop y, p d e ipm t an qu en |
- | - | - | - | ( 6 ) 5, 54 |
- | 6 5, 54 |
- | - | - | |
| Ac isit ion f s bs idia wit h qu o u ry llin tro int sts no n-c on g ere |
18 | - | - | - | - | - | - | - | - | ( 40 6 ) |
( 40 6 ) |
| Ba lan 30 Ju 20 22 at ce ne (r iew d ) ev e |
3, 46 43 6 4, |
10 3, 04 9 |
( 37 2) 75 , |
97 28 7 , |
3 40 8, 40 |
63 82 2 5 5, |
63 3, 63 4, |
0 ( 42 4) |
63 3, 20 6 4, |
(Continued on page 8)
FOR THE SIX MONTH PERIOD ENDED 30 JUNE 2022 (All amounts are in THOUSAND RON, if not otherwise stated)
| At ibu b le he f t he Co tr ta to t ow ne rs o mp an y |
||||||||
|---|---|---|---|---|---|---|---|---|
| ha S re ita l ca p |
ha S re ium pr em |
Tr ea su ry ha s res re se rve |
Pr id ita l e- p a ca p rib ion in nt ut co s kin d fro m ha ho lde s re rs |
lua ion Re t va re se rve |
l Le g a re se rve s |
ine d Re ta ing ea rn s |
l To ta ity eq u |
|
| lan 20 21 ( d ite d ) Ba at 1 Ja ce nu ar au y |
3, 46 4, 43 6 |
10 3, 04 9 |
( 75 37 2) , |
7 | 11 6, 37 2 |
39 2, 27 6 |
1, 75 9, 50 6 |
5, 76 0, 27 4 |
| Co he ive in mp re ns co me |
||||||||
| Pro fit for he rio d (re vie d ) t pe we |
- | - | - | - | - | - | 76 07 0 , |
76 07 0 , |
| Ot he he ive in r c om pre ns co me |
( 1) 4, 47 |
( 1) 4, 47 |
||||||
| l c he ive in (r iew d ) To ta om pr e ns co me ev e |
- | - | - | - | - | - | 71 59 9 , |
71 59 9 , |
| Tr ion it h o f t he ct an sa s w wn er s o Co (r iew d ) mp an ev e y rib ion nd d ist rib ion Co nt ut ut s a s |
||||||||
| ide nd he f t he Div s t o t Co ow ne rs o mp an y |
- | - | - | - | - | ( 4) 24 7, 87 |
( 4) 24 7, 87 |
|
| l t ion it h t he f t he To ta t ra ns ac s w ow ne rs o Co (r iew d ) mp an y ev e |
- | - | - | - | - | ( 24 7, 87 4) |
( 24 7, 87 4) |
|
| Ot he ha in ity (r iew d ) r c ng es eq ev e u |
||||||||
| fer f r Tra lua tio tai d to ns o ev a n r ese rve re ne du de nd di ls o f rni e t cia tio ea ng s o pre n a sp os a lan nd uip rty t a nt pro pe , p eq me |
- | - | - | - | ( ) 7, 95 3 |
- | 7, 95 3 |
- |
| Ba lan 30 Ju 20 21 (r iew d ) at ce ne ev e |
3, 46 4, 43 6 |
10 3, 04 9 |
( 75 37 2) , |
7 | 10 8, 41 9 |
39 2, 27 6 |
1, 59 1, 18 4 |
5, 58 3, 99 9 |
The accompanying notes are an integral part of these condensed consolidated interim financial statements.
Alexandru – Aurelian Chirita Stefan Alexandru Frangulea
Chief Executive Officer Chief Financial Officer
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE SIX MONTH PERIOD ENDED 30 JUNE 2022
(All amounts are in THOUSAND RON, if not otherwise stated)
| Six month period ended | |||
|---|---|---|---|
| Note | 30 June 2022 (reviewed) |
30 June 2021 (reviewed) |
|
| Cash flows from operating activities | |||
| (Loss)/Profit | (175,498) | 76,070 | |
| Adjustments for: | |||
| Depreciation | 9,933 | 10,040 | |
| Amortisation | 238,279 | 232,035 | |
| Reversal of impairment of property, plant and equipment, net |
- | (137) | |
| Gain on disposal of property, plant and equipment | (466) | (118) | |
| Impairment of trade and other receivables, net | 11 | 50,036 | 39,763 |
| Adjustments for assets held for sale, net | 79 | 181 | |
| Changes in employee benefits obligations | 1,673 | - | |
| Change in provisions, net | 15 | 2,117 | 9,630 |
| Net finance cost | 57,467 | 11,680 | |
| Income tax (benefit)/expense | 10 | (28,926) | 27,276 |
| Share of loss of associates | 8 | - | |
| 154,702 | 406,420 | ||
| Changes in: | |||
| Trade receivables | (655,244) | (173,301) | |
| Subsidies receivables | 7 | (1,132,076) | - |
| Other receivables | 17,201 | (930) | |
| Prepayments | (9,882) | (7,245) | |
| Inventories | (12,342) | (1,960) | |
| Trade payables | 68,103 | (13,789) | |
| Other payables | 215,466 | 43,405 | |
| Employee benefits | (23,031) | (3,575) | |
| Deferred revenue | 9,728 | 610 | |
| Cash generated from/(used in) operating activities |
(1,367,375) | 249,635 | |
| Interest paid | (50,350) | (10,976) | |
| Income tax paid | - | (18,363) | |
| Net cash generated from/(used in)operating activities |
(1,417,725) | 220,296 |
(Continued on page 10)
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE SIX MONTH PERIOD ENDED 30 JUNE 2022
(All amounts are in THOUSAND RON, if not otherwise stated)
| Six month period ended | |||
|---|---|---|---|
| Note | 30 June 2022 (reviewed) |
30 June 2021 (reviewed) |
|
| Cash flows from investing activities | |||
| Payments for purchase of property, plant and equipment |
(4,948) | (5,734) | |
| Payments for network construction related to concession agreements |
(261,383) | (238,015) | |
| Payments for purchase of other intangible assets | (1,890) | (1,168) | |
| Proceeds from sale of property, plant and equipment |
2,454 | 864 | |
| Interest received | 443 | 1,399 | |
| Payments for acquisition of Subsidiaries | 18 | (3,006) | - |
| Net cash used in investing activities | (268,330) | (242,654) | |
| Cash flows from financing activities | |||
| Proceeds from long term bank borrowings | 14 | 113,451 | 122,896 |
| Proceeds from overdrafts | 14 | 1,737,525 | - |
| Repayment of long-term bank loans | 14 | (46,461) | (24,129) |
| Payment of lease liabilities | (9,630) | (7,958) | |
| Dividends paid | (152,291) | (246,811) | |
| Net cash generated from financing activities | 1,642,594 | (156,002) | |
| Net decrease in cash and cash equivalents | (43,461) | (178,360) | |
| Cash and cash equivalents at 1 January | (405,572) | 405,963 | |
| Cash and cash equivalents at 30 June | 12 | (449,033) | 227,603 |
The accompanying notes are an integral part of these condensed consolidated interim financial statements.
The non-cash transactions are disclosed in Note 12.
Alexandru – Aurelian Chirita Stefan Alexandru Frangulea
These financial statements are the condensed consolidated interim financial statements of Societatea Energetica Electrica S.A. ("the Company" or "Electrica SA") and its subsidiaries (together "the Group") as at and for the six month period ended 30 June 2022.
The registered office of the Company is 9 Grigore Alexandrescu Street, District 1, Bucharest, Romania. The Company has sole registration code 13267221 and Trade Register registration number J40/7425/2000.
As at 30 June 2022 and 31 December 2021, the major shareholder of Societatea Energetica Electrica S.A. is the Romanian State, represented by the Ministry of Energy with a share of ownership of 48.79% from the share capital.
The Company's shares are listed on the Bucharest Stock Exchange and the global depository receipts ("GDRs") are listed on the London Stock Exchange (LSE). The shares traded on the London Stock Exchange are the global depositary receipts, one global depositary receipt representing four shares. The Bank of New York Mellon is the depositary bank for these securities.
| Subsidiary | Activity | Sole registration code |
Head Office |
% shareholding as at 30 June 2022 |
% shareholding as at 31 December 2021 |
|---|---|---|---|---|---|
| Distributie Energie Electrica Romania S.A. ("DEER") |
Electricity distribution in geographical areas Transilvania Nord, Transilvania Sud and Muntenia Nord |
14476722 | Cluj Napoca |
99.99999929% | 99.99999929% |
| Electrica Furnizare S.A. | Electricity and natural gas supply |
28909028 | Bucuresti | 99.9998415011992% | 99.9998415011992% |
| Electrica Serv S.A. | Services in the energy sector (maintenance, repairs, construction) |
17329505 | Bucuresti | 99.99998095% | 99.99998095% |
| Electrica Producție Energie S.A |
Electricity generation | 44854129 | Bucuresti | 99.9920% | 99.9920% |
| Electrica Energie Verde 1 S.R.L.* ("EEV1" – former Long Bridge Milenium S.R.L.) |
Electricity generation | 19157481 | Bucuresti | 100%* | 100%* |
| Sunwind Energy S.R.L. | Electricity generation | 42910478 | Constanta | 60% | - |
| New Trend Energy S.R.L. | Electricity generation | 42921590 | Constanta | 60% | - |
As at 30 June 2022 and 31 December 2021, the Company's subsidiaries are the following:
*indirect shareholding - Electrica Energie Verde 1 S.R.L. is 100% owned by Electrica Furnizare S.A. subsidiary.
As at 30 June 2022 and 31 December 2021, the Company's associates are the following:
| Associate | Activity | Sole registration code |
Head Office |
% shareholding as at 30 June 2022 |
% shareholding as at 31 December 2021 |
|---|---|---|---|---|---|
| Crucea Power Park S.R.L. | Electricity generation | 25242042 | Constanta | 30% | 30% |
| Sunwind Energy S.R.L. | Electricity generation | 42910478 | Constanta | - | 30% |
| New Trend Energy S.R.L. | Electricity generation | 42921590 | Constanta | - | 30% |
| Foton Power Energy S.R.L. | Electricity generation | 43652555 | Constanta | 30% | 30% |
On 21 March 2022, the Group acquired an additional 30% of the shares and voting interests in Sunwind Energy S.R.L.. As a result, the Group's equity interest increased from 30% to 60%, granting control of Sunwind Energy S.R.L.. (for further details please see Note 18).
On 27 May 2022, the Group acquired an additional 30% of the shares and voting interests in New Trend Energy S.R.L.. As a result, the Group's equity interest increased from 30% to 60%, granting control of New Trend Energy S.R.L.. (for further details please see Note 18).
The activities of the Group include operation and construction of electricity distribution networks and electricity and natural gas supply to final consumer, as well as energy production from renewable sources. The Group is the electricity distribution operator and the main electricity supplier in Muntenia Nord area (Prahova, Buzau, Dambovita, Braila, Galati and Vrancea counties), Transilvania Nord area (Cluj, Maramures, Satu Mare, Salaj, Bihor and Bistrita Nasaud counties) and Transilvania Sud area (Brasov, Alba, Sibiu, Mures, Harghita and Covasna counties), operating with transformation station and 0.4 kV to 110 kV power lines.
The distribution tariffs approved by the National Authority for Energy Regulation ("ANRE") are as follows (RON/MWh, presented cumulatively for medium and low voltage levels):
| Orders 221, 222, 220/09.12.2020 | ||||||||
|---|---|---|---|---|---|---|---|---|
| 1 January 2021 – 31 December 2021 | ||||||||
| High voltage | Medium voltage | Low voltage | ||||||
| Transilvania Nord Area | 19.23 | 66.35 | 173.93 | |||||
| Transilvania Sud Area | 22.23 | 67.47 | 178.78 | |||||
| Muntenia Nord Area | 18.72 | 56.87 | 184.75 |
| Order 119/25.11.2021 | ||||||||
|---|---|---|---|---|---|---|---|---|
| 1 January 2022 -31 March 2022 | ||||||||
| High voltage | Medium voltage | Low voltage | ||||||
| Transilvania Nord area | 21.79 | 48.13 | 122.78 | |||||
| Transilvania Sud area | 22.34 | 45.49 | 127.04 | |||||
| Muntenia Nord area | 21.02 | 43.54 | 140.68 |
| Order 28/23.03.2022 Starting 1 April 2022 |
||||||||
|---|---|---|---|---|---|---|---|---|
| High voltage | Medium voltage | Low voltage | ||||||
| Transilvania Nord area | 23.77 | 57.49 | 144.73 | |||||
| Transilvania Sud area | 24.63 | 54.52 | 158.84 | |||||
| Muntenia Nord area | 23.35 | 56.70 | 175.26 |
(All amounts are in THOUSAND RON, if not otherwise stated)
Due to the increase in energy price on the international and national markets and the impact thereof on Romanian consumers, starting with 1 November 2021 up to 31 March 2022, consumer support schemes were implemented as approved by Order no. 118/2021, approved and modified by Law no. 259/2021 and amended by Order no. 130/2021, Order no. 2/2022, and Order no. 3/2022. The following support mechanisms have been put in place: compensation of household consumers for part of the electricity invoices, exemption (until 31 January 2022) of several types of nonhousehold consumers from payment of regulated tariffs and other taxes/contributions, capping the selling price for household and non-household consumers (until 31 January for certain types of non-household consumers, starting 1 February 2022 for all non-household consumers), suspending the invoice payment for vulnerable consumers.
The amounts compensated will be received by the Group from the National Agency for Payments and Social Inspection ("ANPIS") for household consumers and from the Ministry of Energy for non-household consumers. The amounts should be recovered in 30 days after submitting the required documentation to ANPIS or Ministry of Energy.
On 18 March 2022, it was issued the Government Emergency Ordinance (GEO) no. 27 related to the application between 1 April 2022 – 31 March 2023 of new capping schemes for electricity and natural gas, as well as the regularization with the new calculation schemes for the period 1 November 2021 – 31 March 2022. The Ordinance also provides for the method for implementing these schemes and the settlement mechanism of the amounts granted as support to customers and their recoverability from the State budget including the regularization of the amounts to be recovered based on the new schemes for the period 1 November 2021 up to 31 March 2022.
Electricity producers are entitled by to receive a certain number of green certificates for each MWh of electricity produced from renewable sources and injected into the network, according to Law no. 220/2008 and based on the accreditation issued by ANRE. Photovoltaic Stanesti Park is accredited to receive a number of six green certificates for each MWh of electricity produced and delivered, out of which for the period 2013-2020, two green certificates were postponed for trading and are to be recovered in equal tranches from 1 January 2021 to 31 December 2030.
For the six month period ended 30 June 2022, the trading of green certificates was carried out at the minimum price on all markets, 144.6598 RON/CV (2021: 142.2107 RON/CV) as a result of the excess GC offered for sale compared to the suppliers' purchasing obligations.
Following the total liberalization of the electricity market from 1 January 2021 for all types of consumers, the international context of the energy markets characterized by an imbalance between supply and demand at European level, corroborated with the energy policies developed both at EU and national level, has led to an increase in electricity prices.
The aforementioned difficult conditions led to an increase in operating expenses, mainly for the acquisition of electricity for network losses of electricity distribution networks and for the supply activity. The unstable economic environment led to a decrease in financial performance for 2021 and continued in the six month period ended 2022, but with no significant difficulties in receivables collection.
The Group actively reviews and implements policies and strategies to recover from the loss generated by the increase in electricity price and liquidity management, which are mainly focused on revising the method used to determine the selling price to final consumers, concluding agreements with specific clauses, ensuring new financing facilities, closely monitoring suppliers and consumers payment terms, monitoring daily and forecasted cash flow.
The Group continues to closely monitor the macroeconomic outlook and as additional information will be available, their effects on the operations of Group companies and over financial results will be analyzed.
In February 2022 global geopolitical tensions significantly escalated following military interventions in Ukraine by the Russian Federation. As a result of these escalations, economic uncertainties in energy and capital markets have increased, with global energy prices expected to be highly volatile for the foreseeable future. As at the date of these interim financial statements, management is unable to reliably estimate the effects on the Groups financial outlook and cannot exclude adverse consequence on the business, operations, and financial position. Management believes it is taking all the necessary measures to support the sustainability and growth of the Group's business in the current circumstances and that judgements used in these financial statements remain appropriate.
These condensed consolidated interim financial statements ("interim financial statements") have been prepared in accordance with IAS 34 "Interim Financial Reporting" as adopted by the European Union. They do not include all the information required for a complete set of financial statements prepared in accordance with International Financial Reporting Standards ("IFRS") as endorsed by the European Union ("IFRS-EU") and these should be read together with the annual consolidated financial statements as at and for the year ended 31 December 2021. However, selected explanatory notes are included to explain events and transactions that are significant to an understanding of the changes in the Group's financial position and performance since the last annual consolidated financial statements as at and for the year ended 31 December 2021.
These condensed consolidated interim financial statements have been prepared for submission to the Bucharest Stock Exchange. These condensed consolidated interim financial statements were authorized for issue by the Board of Directors on 17 August 2022.
The consolidated condensed interim financial statements have been prepared on the going concern basis. In making this judgement management considers current trading performance and access to finance resources. The Group has prepared a forecast that includes the following assumptions:
(All amounts are in THOUSAND RON, if not otherwise stated)
Currently, the projections are based on the latest assumptions that include the application of GEO 27/2022. At the date of publication of these condensed consolidated interim financial statements, the regulatory position is under review and there may be additional laws that could have a negative impact on the Group's operational cash flows after the date of publication. Considering the importance of the Group both as a supplier and distributor of electricity for the Romanian market, having a market share of 39.9% (according to the latest ANRE 2021 report available for the distribution segment) in the electricity distribution and supply segment is market leader with a share of 17.23%, it is also a leader on the FUI market, with a market share of 28.11% and on the competitive market with a share of 13% (according to ANRE April 2022 report), and the fact as the main shareholder of Electrica SA is the Romanian State, the management believes that sufficient financing will be available to cover any financing requirement that could result from these uncertainties and the Group will be able to fulfil its obligations when due.
Access to new financing facilities from credit institutions was confirmed in the first 6 months of the year, the structure by which ELSA guarantees its subsidiaries being accepted by all the main banks of the Group and approved by all systemic banks in Romania. In addition, following discussions between ACUE, ANRE, the Ministry of Energy and the Ministry of Finance, it is expected to adopt a normative act regarding the acceptance of the capitalization of the price difference at CPT by energy operators/distributors for a period of up to 5 years, similar to the one provided for the recovery of this difference through tariffs, which leads to the improvement of financial indicators as EBITDA and operational profitability. The National Energy Regulatory Authority expressed its willingness to issue a comfort letter to confirm the amounts related to the price difference at CPT in order to capitalize them.
Based on the above forecasts and other information, taking into account the measures already implemented and the risk reduction strategies that may appear due to the instability of the economic environment, the Board of Directors has, at the time of approval of the condensed consolidated interim financial statements, reasonable expectations that the Group has of adequate resources to continue its operational activity in the foreseeable future. Thus, the management continues to adopt the going concern basis of accounting in preparing the consolidated financial statements.
In preparing these interim financial statements, management has made professional judgements, estimates and assumptions that affect the application of Group's accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates.
The significant professional judgements made by management in applying the Group's accounting policies and the key sources of estimation uncertainty were the same as those that applied to the annual consolidated financial statements as at and for the year ended 31 December 2021.
The condensed consolidated interim financial statements have been prepared on the historical cost basis except for land and buildings which are measured based on the revaluation model.
Except as described below, the accounting policies applied in these interim financial statements are the same as those applied in the Group's annual consolidated financial statements as at and for the year ended 31 December 2021.
The additional accounting policy will also be reflected in the Group's consolidated financial statements as at and for the year ending 31 December 2022.
The new amendments to existing standards that are effective starting with 1 January 2022 do not have a significant impact over the Group's condensed consolidated interim financial statements.
(All amounts are in THOUSAND RON, if not otherwise stated)
Grants that compensate the Group for expenses incurred are recognised in profit or loss as other income on a systematic basis in the periods in which the expenses are recognised, unless the conditions for receiving the grant are met after the related expenses have been recognised. In this case, the grant is recognised when it becomes receivable.
The following summary describes the operations of each reportable segment:
| Reportable segments | Operations |
|---|---|
| Supplying electricity and natural gas to final consumers (includes Electrica | |
| Electricity and natural gas supply | Furnizare S.A.). |
| Operation, maintenance and construction of electricity networks operated by the | |
| Electricity distribution | Group (includes Distributie Energie Electrica Romania S.A. and the activity |
| performed by Electrica Serv S.A within the distribution network). | |
| Production of electricity from renewable sources (includes Electrica Energie | |
| Electricity generation | Verde 1 S.R.L., Electrica Productie Energie S.A., Sunwind Energy S.R.L., New |
| Trend Energy S.R.L.). | |
| Repairs, maintenance and other services for electricity networks owned by other | |
| External electricity network | distributors (Electrica Serv S.A., without the activity performed in the electricity |
| maintenance | distribution segment). |
The Board of Directors of the Company reviews management reports of each segment. Segment earnings before interest, tax, depreciation and amortisation ("EBITDA") is used to measure performance because management believes that such information is one of the most relevant in evaluating the results of the segments.
There are varying levels of integration between the Electricity supply, Electricity distribution and External electricity network maintenance segment. This integration includes electricity distribution and shared electricity network maintenance services. Inter-segment pricing policy is determined on an arm's length basis.
All assets are allocated to reportable segments, except for investments in associates and deferred tax assets.
AS AT AND FOR THE SIX MONTH PERIOD ENDED 30 JUNE 2022
(All amounts are in THOUSAND RON, if not otherwise stated)
| S ix h p io d e nd d nt mo er e 30 Ju 20 22 ne iew d |
Ele ic ity ctr d n l at an ur a |
Ele ic ity ctr d ist rib ion ut |
Ele ic ity ctr ion at g en er |
Ex te l rn a lec ic ity tr e k tw ne or |
To l fo ta r b le ta re p or nt |
dq He rte a ua r |
Co lid at ion ns o lim ina ion t e s d an |
Co lid d at ns o e l to ta |
|---|---|---|---|---|---|---|---|---|
| (r ) ev e |
ly g as su p p |
int ma en an ce |
se g me s |
d ju stm ts a en |
||||
| l re Ex ter na ve nu es |
3, 80 64 4, 5 |
80 4, 75 5 |
18 2 7, |
12 20 9 , |
62 8, 79 4, 1 |
- | - | 62 8, 79 4, 1 |
| Int nt er- seg me rev en ue |
28 09 6 , |
75 3, 37 6 |
3, 45 8 |
22 22 8 , |
80 7, 15 8 |
- | ( ) 80 7, 15 8 |
- |
| Se nt g me rev en ue |
83 3, 2, 74 1 |
8, 1, 55 13 1 |
10 64 0 , |
34 43 7 , |
5, 43 5, 94 9 |
- | ( 80 8 ) 7, 15 |
8, 4, 62 79 1 |
| Ot he r i nc om e |
24 31 1, 4, 4 |
67 59 6 , |
48 | 91 3 7, |
31 9, 87 1, 1 |
33 9 1, |
( 16 88 0 ) , |
30 33 0 1, 4, |
| fit / ( los ) be fo Se nt ta g me pr o s re x |
25 3, 73 2 |
( ) 46 0, 83 3 |
6, 33 3 |
( ) 12 60 5 , |
( ) 21 3, 37 3 |
10 40 2 , |
( ) 1, 45 3 |
( 4) 20 4, 42 |
| fin (co ) / Ne t st inc an ce om e |
( 2) 27 51 , |
( ) 60 94 0 , |
( 4) 39 |
1, 22 9 |
( 7) 87 61 , |
31 59 5 , |
( ) 1, 44 5 |
( 7) 57 46 , |
| Am iza tio nd de cia tio ort n a pre n |
( 5, 90 4) |
( 23 4, 63 9 ) |
( 1, 18 2) |
( 5, 66 0 ) |
( 24 7, 38 5 ) |
( 82 7) |
- | ( 24 8, 21 2) |
| f a he ld for le Im irm t o ts pa en sse sa |
- | - | - | ( ) 79 |
( ) 79 |
- | - | ( ) 79 |
| Ad ju d E * ste BIT DA |
28 14 8 7, |
( 16 25 4) 5, |
90 9 7, |
( 8, 09 ) 5 |
12 1, 70 8 |
( 20 36 6 ) , |
( 8 ) |
10 1, 33 4 |
| ( Im irm ) / Re l o f im irm f t de d t t o pa en ve rsa pa en ra an |
( 52 10 6 ) |
1, 94 5 |
11 8 |
( 50 04 3 ) |
( 50 03 6 ) |
|||
| he b les ot eiv et r r ec a , n |
, | - | , | 7 | - | , | ||
| Se fit / ( los ) a fte nt r ta g me pro s x |
21 2, 80 0 |
( 39 2, 72 3 ) |
5, 28 9 |
( 9, 82 8 ) |
( 18 4, 46 2) |
10 41 7 , |
( 1, 45 3 ) |
( 17 5, 49 8 ) |
| loy be fits Em p ee ne |
( 2) 49 96 , |
( ) 30 5, 18 3 |
( ) 59 |
( 2) 19 62 , |
( ) 37 4, 82 6 |
( 2) 14 62 , |
- | ( ) 38 9, 44 8 |
| Ca l e dit ita p xp en ure |
2, 94 4 |
23 6, 31 8 |
- | 78 2 |
24 0, 04 4 |
83 3 1, |
- | 24 87 1, 7 |
| S ix h io d e nd d nt mo p er e |
||||||||
| 30 Ju 20 21 ne |
||||||||
| (r iew d ) ev e |
||||||||
| l re Ex ter na ve nu es |
2, 63 1, 78 8 |
60 7, 36 0 |
2, 02 1 |
18 90 4 , |
3, 26 0, 07 3 |
- | - | 3, 26 0, 07 3 |
| Int nt er- seg me rev en ue |
15 91 0 , |
67 3, 22 2 |
- | 10 40 6 , |
69 9, 53 8 |
- | ( 69 9, 53 8 ) |
- |
| Se nt g me rev en ue |
2, 64 7, 69 8 |
1, 28 0, 58 2 |
2, 02 1 |
29 31 0 , |
3, 95 9, 61 1 |
- | ( ) 69 9, 53 8 |
3, 26 0, 07 3 |
| Ot he r i nc om e |
13 88 8 , |
64 61 8 , |
- | 9, 37 5 |
87 88 1 , |
52 1 |
( 9, 85 6 ) |
78 54 6 , |
| Se fit / ( los ) be fo nt ta g me pr o s re x |
22 47 6 , |
10 3, 93 8 |
( 54 2) |
( 17 77 2) , |
10 8, 10 0 |
32 6, 49 6 |
( 33 1, 25 0 ) |
10 3, 34 6 |
| fin / (co ) Ne t inc st an ce om e |
2, 40 4 |
( ) 34 59 6 , |
( ) 40 0 |
50 8 |
( 4) 32 08 , |
35 1, 65 4 |
( ) 33 1, 25 0 |
( ) 11 68 0 , |
| nd de Am ort iza tio cia tio n a pre n |
( 6, 8 ) 71 |
( 22 8, 13 2) |
( 4) 1, 14 |
( 90 8 ) 4, |
( 24 0, 90 2) |
( 3 ) 1, 17 |
- | ( 24 2, 07 ) 5 |
| Re l o f im irm f p lan nd t o ert t a ve rsa pa en rop p y, |
||||||||
| uip nt, t eq me ne |
- | - | - | 13 7 |
13 7 |
- | - | 13 7 |
| f a he ld for le Im irm t o ts pa en sse sa |
- | - | - | ( 18 1) |
( 18 1) |
- | - | ( 18 1) |
| Ad ju d E BIT DA * ste |
26 79 0 , |
36 6, 66 6 |
1, 00 2 |
( 13 32 8 ) , |
38 1, 13 0 |
( 23 98 5 ) , |
- | 35 7, 14 5 |
| ( Im irm ) / Re l o f im irm f t de d t t o pa en ve rsa pa en ra an |
||||||||
| he b les ot eiv et r r ec a , n |
( 13 4) 14 , |
( 26 78 6 ) , |
- | 96 | ( 39 83 4) , |
71 | - | ( 39 76 3 ) , |
| Se fit / ( los ) a fte nt r ta g me pro s x |
88 3 17 , |
78 89 4 , |
( 7) 45 |
( 49 4) 15 , |
80 82 6 , |
32 6, 49 4 |
( 33 25 0 ) 1, |
76 07 0 , |
| fits Em loy be p ee ne |
( 50 08 5 ) , |
( 29 7, 54 5 ) |
( 15 ) |
( 25 52 0 ) , |
( 37 3, 16 5 ) |
( 16 89 5 ) , |
- | ( 39 0, 06 0 ) |
| Ca l e dit ita p xp en ure |
3, 75 1 |
18 2, 22 6 |
5 | 56 0 |
18 6, 2 54 |
99 3 |
- | 18 53 7, 5 |
AS AT AND FOR THE SIX MONTH PERIOD ENDED 30 JUNE 2022
(All amounts are in THOUSAND RON, if not otherwise stated)
| At 30 Ju 20 22 ne (r iew d ) ev e |
Ele ic ity ctr d n l at an ur a ly g as su p p |
Ele ic ity ctr d ist rib ion ut |
Ele ic ity ctr ion at g en er |
Ex l te rn a lec ic ity tr e k tw ne or int ma en an ce |
l fo To ta r b le ta re p or nt se g me s |
He dq rte a ua r |
Co lid ion at ns o lim ina ion t e s d an d ju stm ts a en |
lid d Co at ns o e l to ta |
|---|---|---|---|---|---|---|---|---|
| Se nt ts g me as se |
3, 07 3, 99 4 |
7, 57 4, 40 7 |
56 95 8 , |
42 1, 16 3 |
11 12 6, 52 2 , |
63 5, 55 9 |
( 2) 2, 20 1, 74 |
9, 56 0, 33 9 |
| Tra de d o he eiv b les t an ec a r r |
1, 77 4, 17 8 |
54 1, 31 0 |
2, 18 0 |
91 33 3 , |
2, 40 9, 00 1 |
52 7, 28 5 |
( 96 8, 70 9 ) |
1, 96 7, 57 7 |
| Su bs idie eiv b les s r ec a |
1, 13 2, 07 6 |
- | - | - | 1, 13 2, 07 6 |
- | - | 1, 13 2, 07 6 |
| Ca h a nd h e len iva ts s ca s qu |
40 0 44 , |
6, 06 0 11 |
6, 8 71 |
23 5, 1 |
2, 40 9 17 |
96 0 5, |
- | 8, 36 9 17 |
| Tra de d o he b les d s ho t rt an r p ay a an loy be fits ter m em p ee ne |
66 3, 1, 17 1 |
69 8, 70 7 |
22 12 5 , |
33 85 5 , |
2, 85 8 41 7, |
52 9 74 , |
( 94 9, 23 1) |
52 37 6 1, 1, |
| nk dra fts Ba ov er |
46 07 6 1, 7, |
69 3, 85 2 |
- | - | 2, 16 0, 92 8 |
20 8, 94 5 |
- | 2, 36 9, 87 3 |
| lia bi lity Lea se |
2, 48 7 |
35 88 7 , |
9, 99 5 |
2, 27 1 |
50 64 0 , |
24 5 |
- | 50 88 5 , |
| nk bo Ba wi rro ng s |
- | 69 9, 01 4 |
- | - | 69 9, 01 4 |
- | - | 69 9, 01 4 |
| At 3 1 D be r 2 02 1 ( d ite d ) ec em au |
||||||||
| Se nt ts g me as se |
1, 42 2, 31 6 |
8, 08 5, 80 2 |
41 20 6 , |
41 7, 74 4 |
9, 96 7, 06 8 |
18 2, 50 9 |
( 2, 26 6, 44 1) |
7, 88 3, 13 6 |
| de d o he b les Tra t eiv an r r ec a |
1, 21 6, 89 5 |
1, 05 7, 15 7 |
99 8 |
85 92 4 , |
2, 36 0, 97 4 |
75 10 6 , |
( 1) 1, 04 2, 86 |
1, 39 3, 21 9 |
| Ca h a nd h e len iva ts s ca s qu |
60 23 1 , |
14 5, 74 1 |
2, 63 5 |
46 6 7, |
21 6, 07 3 |
5, 75 7 |
- | 22 83 0 1, |
| Tra de d o he b les d s ho t rt an r p ay a an loy be fits ter m em p ee ne |
1, 38 0, 66 4 |
82 6, 25 6 |
24 37 3 , |
27 91 7 , |
2, 25 9, 21 0 |
53 55 1 , |
( 1, 01 6, 32 9 ) |
1, 29 6, 43 2 |
| Ba nk dra fts ov er |
29 8, 60 2 |
20 8, 10 9 |
- | - | 50 6, 71 1 |
12 0, 69 1 |
- | 62 7, 40 2 |
| Lea lia bi lity se |
3, 27 0 |
15 14 7 , |
- | 2, 61 4 |
21 03 1 , |
51 3 |
- | 21 54 4 , |
| nk bo Ba wi rro ng s |
- | 8, 48 62 9 |
- | - | 8, 48 62 9 |
- | - | 8, 48 62 9 |
*Adjusted EBITDA (Earnings before interest, tax, depreciation and amortisation) for operating segments is defined and calculated as segment profit/(loss) before tax of a given operating segment adjusted for i) depreciation, amortization and impairment/reversal of impairment of property, plant and equipment and intangible assets in the operating segment, ii) adjustments for assets held for sale and iii) net finance income in the operating segment. EBITDA is not an IFRS measure and should not be treated as an alternative to IFRS measures. Moreover, EBITDA is not uniformly defined. The method used to calculate EBITDA by other companies may differ significantly from that used by the Group. As a consequence, the EBITDA presented in this note cannot, as such, be relied upon for the purpose of comparison to EBITDA of other companies.
AS AT AND FOR THE SIX MONTH PERIOD ENDED 30 JUNE 2022 (All amounts are in THOUSAND RON, if not otherwise stated)
| Six month period ended | ||
|---|---|---|
| 30 June 2022 (reviewed) |
30 June 2021 (reviewed) |
|
| Electricity distribution and supply | 4,200,569 | 3,024,076 |
| Supply of natural gas | 164,102 | 27,023 |
| Construction revenue related to concession agreements | 236,318 | 182,226 |
| Repairs, maintenance and other services rendered | 23,315 | 25,899 |
| Sale of green certificates | 2,232 | 480 |
| Services related to re-connection fees | 1,607 | 130 |
| Sales of merchandise | 648 | 239 |
| Total | 4,628,791 | 3,260,073 |
In respect of timing of revenue recognition, most of the Group's services provided are transferred to the customer over time, only a small part amounting to RON 1,088 thousand (six month period ended 30 June 2021: RON 1,010 thousand) being transferred at a point in time (e.g. metering services provided by the distribution companies, providing periodic data analysis to customers for certain taxes collected on their behalf).
| Six month period ended | |||
|---|---|---|---|
| 30 June 2022 (reviewed) |
30 June 2021 (reviewed) |
||
| Subsidies | 1,211,300 | - | |
| Rental income | 46,498 | 50,859 | |
| Late payment penalties from customers | 14,368 | 7,908 | |
| Other | 32,164 | 19,779 | |
| Total | 1,304,330 | 78,546 |
During the six month period ended 30 June 2022, Electrica Furnizare S.A. recognized subsidies in amount of RON 1,211,300 thousand, out of which RON 1,132,076 thousand remaining to be received from the Ministry of Energy following the application of the capping price mechanism for the electricity and natural gas as approved by Order no. 118/2021 with subsequent amendments and GEO no. 27/2022.
| Six month period ended | ||
|---|---|---|
| 30 June 2022 (reviewed) |
30 June 2021 (reviewed) |
|
| Electricity purchased | 4,409,233 | 1,853,503 |
| Green certificates purchased | 294,465 | 287,949 |
| Natural gas purchased | 233,898 | 25,098 |
| Total | 4,937,596 | 2,166,550 |
The supply subsidiary has a legal obligation to purchase green certificates from producers of electricity from renewable sources, based on annual targets or quotas set by law, which are applied to the quantity of electricity purchased and supplied to final customers. The cost of green certificates is then invoiced to final customers separately from electricity tariffs and included in the caption "Electricity distribution and supply" as presented in Note 6.
The calculation of basic and diluted earnings per share has been based on the following profit or loss attributable to
AS AT AND FOR THE SIX MONTH PERIOD ENDED 30 JUNE 2022 (All amounts are in THOUSAND RON, if not otherwise stated)
Company's shareholders and weighted-average number of ordinary shares outstanding:
Profit or loss for the period attributable to the Company's shareholders
| Six month period ended | ||
|---|---|---|
| 30 June 2022 (reviewed) |
30 June 2021 (reviewed) |
|
| Profit/(Loss) for the period attributable to the owners of the Company | (175,480) | 76,070 |
| Profit/(Loss) for the period attributable to Company's shareholders |
(175,480) | 76,070 |
For the calculation of the basic and diluted earnings per share, treasury shares (6,890,593 shares) were not treated as outstanding ordinary shares and were deducted from the number of issued ordinary shares.
The weighted average number of outstanding ordinary shares (unaudited and not reviewed) as at 30 June 2022 is 339,553,004 (30 June 2021: 339,553,004).
| Earnings per share | Six month period ended | ||
|---|---|---|---|
| 30 June 2022 | 30 June 2021 | ||
| (reviewed) | (reviewed) | ||
| Basic and diluted earnings/(loss) per share (RON) | (0.52) | 0.22 |
On 20 April 2022 the General Shareholders Meeting of the Company approved dividend distribution of RON 152,799 thousand (2021: RON 247,874 thousand). The dividend per share distributed is RON 0.45 per share (2021: RON 0.73 per share).
| Six month period ended | ||
|---|---|---|
| 30 June 2022 (reviewed) |
30 June 2021 (reviewed) |
|
| Tax expense | 14 | 18,514 |
| Deferred tax (benefit)/ expense | (28,940) | 8,762 |
| Total income tax (benefit)/expense | (28,926) | 27,276 |
AS AT AND FOR THE SIX MONTH PERIOD ENDED 30 JUNE 2022 (All amounts are in THOUSAND RON, if not otherwise stated)
| Balance at 30 June 2022 | ||||||
|---|---|---|---|---|---|---|
| 30 June 2022 | Net balance at 1 January 2022 |
Recognised in profit or loss |
Recognised in other comprehensive income |
Net | Deferred tax assets |
Deferred tax liabilities |
| Property, plant and equipment |
39,838 | (2,764) | - | 37,074 | - | 37,074 |
| Intangible assets related to concession agreements |
187,500 | 6,072 | - | 193,572 | - | 193,572 |
| Employee benefits | (23,940) | 2,462 | 1,550 | (19,928) | (19,928) | - |
| Impairment of trade receivables |
(24,732) | 1,080 | - | (23,652) | (23,652) | - |
| Tax loss carried forward Other items |
(95,972) (4,299) |
(37,490) 1,700 |
- - |
(133,462) (2,599) |
(133,462) (2,599) |
- - |
| Tax liabilities/(assets) before set-off |
78,395 | (28,940) | 1,550 | 51,005 | (179,641) | 230,646 |
| Set off of tax | 137,188 | (137,188) | ||||
| Net tax liabilities/(assets) |
(42,453) | 93,458 |
The Group recognised a deferred tax benefit mainly from the recognition of a deferred tax asset in relation to the tax loss of 2022 incurred by Distributie Energie Electrica Romania S.A. subsidiary. The recognition was based on the latest management assumptions and judgements in which the subsidiary will generate future taxable profit in the following 7 years, against which tax losses can be used. The 7-year period is the maximum period over which the companies are allowed to recover tax losses in the current tax jurisdiction (Romania).
| Balance at 30 June 2021 | ||||||
|---|---|---|---|---|---|---|
| 30 June 2021 | Net balance at 1 January 2021 |
Recognised in profit or loss |
Recognised in other comprehensive income |
Net | Deferred tax assets |
Deferred tax liabilities |
| Property, plant and equipment |
41,757 | (2,195) | - | 39,562 | - | 39,562 |
| Intangible assets related to concession agreements |
171,712 | 8,595 | - | 180,307 | - | 180,307 |
| Employee benefits | (22,603) | (1,041) | (709) | (24,353) | (24,353) | - |
| Impairment of trade receivables |
(20,859) | (1,370) | - | (22,229) | (22,229) | - |
| Tax loss carried forward Other items |
(7,765) (4,121) |
3,795 978 |
- - |
(3,970) (3,143) |
(3,970) (3,143) |
- - |
| Tax liabilities/(assets) before set-off |
158,121 | 8,762 | (709) | 166,174 | (53,695) | 219,869 |
| Set off of tax | 32,120 | (32,120) | ||||
| Net tax liabilities/(assets) |
(21,575) | 187,749 |
| 30 June 2022 (reviewed) |
31 December 2021 (audited) |
||
|---|---|---|---|
| Trade receivables, gross | 2,967,242 | 2,325,477 | |
| Bad debt allowance | (1,030,825) | (980,858) | |
| Total trade receivables, net | 1,936,417 | 1,344,619 |
Receivables from related parties are disclosed in Note 17.
(All amounts are in THOUSAND RON, if not otherwise stated)
Following the adoption of Order no. 118/2021 with subsequent amendments approved by Law no. 259/2021 with subsequent amendments and Order no. 226/2021 on the capping and compensation mechanism, part of the receivables of Electrica Furnizare S.A. subsidiary from sale of electricity and gas to final consumers will be recovered from the Romanian State through the National Agency for Payments and Social Inspection and Ministry of Energy. The amounts estimated to be received are RON 7,401 thousand (31 December 2021: RON 59,271 thousand) from the National Agency for Payments and Social Inspection for household consumers and RON 36,676 thousand (31 December 2021: RON 11,420 thousand) from the Ministry of Energy for non-household consumers.
The amounts will be recovered in 30 days after submitting the required documentation to the National Agency for Payments and Social Inspection or Ministry of Energy, as applicable.
The reconciliation between the opening balances and the closing balances of the impairment on the lifetime expected credit losses is as follows:
| Lifetime expected credit losses | Six month period ended | ||
|---|---|---|---|
| 30 June 2022 (reviewed) |
30 June 2021 (reviewed) |
||
| Balance as at 1 January (audited) | 980,858 | 949,573 | |
| Loss allowance recognized | 62,747 | 47,072 | |
| Loss allowance reversed | (12,437) | (7,309) | |
| Amounts written off | (343) | (273) | |
| Balance as at 30 June (reviewed) | 1,030,825 | 989,063 |
Bad debt allowances are determined according to IFRS 9 "Financial instruments" based on "expected credit loss" model. In applying IFRS 9, the Group has identified 5 clusters of customers based on shared risk characteristics: 3 separate clusters for the distribution subsidiary and 2 clusters (households and non-households) for the supply subsidiary.
A significant part of the bad debt allowances refers to clients in litigation, insolvency or bankruptcy procedures, many of them being older than five years. The Group will derecognize these receivables together with the related allowances after the completion of bankruptcy procedures. These receivables were treated separately in computing the allowance according to IFRS 9.
| 30 June 2022 (reviewed) |
30 June 2021 (reviewed) |
|
|---|---|---|
| Total cash and cash equivalents in the condensed consolidated statement of financial position |
178,369 | 316,578 |
| Overdrafts used for cash management purposes | (627,402) | (88,975) |
| Total cash and cash equivalents in the condensed consolidated statement of cash flows |
(449,033) | 227,603 |
| Restricted cash - short term | - | 320,000 |
The Group has overdrafts from various banks (ING Bank N.V., Raiffeisen Bank, Banca Comerciala Romana, Banca Transilvania, BNP Paribas, Intesa Sanpaolo Bank and BRD – Groupe Societe Generale) with a total overdraft limit of up to RON 2,503,800 thousand and maturities ranging from July 2022 to January 2024.
Only a part of the overdrafts in amount of RON 627,402 thousand are used for cash management purposes, the rest of the overdrafts are used in financing the current activity (please see Note 14) .
The following information is relevant in the context of the consolidated statement of cash flows. Non-cash activity includes:
AS AT AND FOR THE SIX MONTH PERIOD ENDED 30 JUNE 2022 (All amounts are in THOUSAND RON, if not otherwise stated)
| 30 June 2022 (reviewed) |
31 December 2021 (audited) |
|||
|---|---|---|---|---|
| Current | Non current |
Current | Non current |
|
| VAT payable | 276,693 | - | 133,833 | - |
| Liabilities towards the State | 7,533 | - | 7,148 | - |
| Other liabilities | 196,831 | 38,226 | 130,282 | 32,732 |
| Total | 481,057 | 38,226 | 271,263 | 32,732 |
Other liabilities include mainly guarantees, connection fees, habitat tax and cogeneration contribution.
Other non-current liabilities refer to guarantees from customers related to electricity supply.
Proceeds and payments of borrowings during the six month period ended 30 June 2022 were as follows:
| Currency | Interest rate | Maturit y year |
Long term bank borrowings |
Overdrafts not used for cash management purposes |
|
|---|---|---|---|---|---|
| Balance at 1 January 2022 (audited) | 628,489 | - | |||
| Proceeds during the period, out of which: EBRD |
RON | Floating rate (1.15% + interbank rate + ROBOR spread) |
2031 | 113,451 | - |
| Proceeds from overdrafts | - | 1,737,525 | |||
| Total proceeds | 113,451 | 1,737,525 | |||
| Accumulated interest | 5,071 | 4,946 | |||
| Payment of interest | (1,536) | - | |||
| Payments of borrowings, out of which: | |||||
| BRD | RON | 3.99% | 2026 | (10,400) | - |
| BRD | RON | 3.85% | 2028 | (12,857) | - |
| Banca Transilvania | RON | 4.59% | 2027 | (8,929) | - |
| UniCredit Bank | RON | 3.85% | 2026 | (4,800) | - |
| BCR | RON | ROBOR 3M+1% | 2028 | (9,475) | - |
| Total payments of borrowings | (46,461) | - | |||
| Balance at 30 June 2022 (reviewed) |
699,014 | 1,742,471 |
(All amounts are in THOUSAND RON, if not otherwise stated)
As at 30 June 2022 and 31 December 2021, the long term bank borrowings are as follows:
| Lender | Borrower | Balance at 30 June 2022 (reviewed) |
Balance at 31 December 2021 (audited) |
|---|---|---|---|
| Banca Transilvania | Distributie Energie Electrica Romania S.A. | 89,300 | 98,227 |
| UniCredit Bank | Distributie Energie Electrica Romania S.A. | 43,636 | 48,498 |
| BRD | Distributie Energie Electrica Romania S.A. | 247,929 | 271,199 |
| BCR | Distributie Energie Electrica Romania S.A. | 119,023 | 128,243 |
| EBRD | Distributie Energie Electrica Romania S.A. | 199,126 | 82,322 |
| Total, out of which: | 699,014 | 628,489 | |
| Current portion of the long-term bank borrowings | 588,914 | 508,197 | |
| Accumulated interest | 5,071 | 1,536 | |
| Long term borrowings | 105,029 | 118,756 |
As at 30 June 2022, the overdrafts are as follows:
| Lender | Borrower | Overdrafts used for cash management purposes |
Overdrafts not used for cash management purposes |
|---|---|---|---|
| BTRL | DistributieEnergieElectricaRomaniaS.A. | 109,748 | 47,098 |
| BTRL | ElectricaFurnizareS.A. | - | 186,867 |
| BCR | DistributieEnergieElectricaRomaniaS.A. | - | 216,784 |
| BCR | ElectricaFurnizareS.A. | 16,066 | 230,934 |
| INTESA SAN PAOLO | DistributieEnergieElectricaRomaniaS.A. | 98,354 | 36,646 |
| ING Bank N.V. | ElectricaSA | 120,691 | 87,228 |
| ING Bank N.V. | ElectricaFurnizareS.A. | - | 154,070 |
| Raiffeisen Bank | DistributieEnergieElectricaRomaniaS.A. | - | 183,462 |
| Raiffeisen Bank | ElectricaFurnizareS.A. | 282,543 | 61,006 |
| Unicredit Bank SA | ElectricaFurnizareS.A. | - | 298,983 |
| BRD | ElectricaFurnizareS.A. | - | 211,264 |
| BNP Paribas | ElectricaFurnizareS.A. | - | 23,183 |
| Total | 627,402 | 1,737,525 | |
| Accumulated interest | 4,946 | ||
| Total Overdrafts | 2,369,873 |
The agreement with Banca Comerciala Romana stipulates one financial covenant: leverage ratio (Net Consolidated Debt to Consolidated EBITDA) for the 12 months period ending on the last day of the Group's financial year and each 12 months period ending on the last day of the first half of the Group's financial year, of no more than 3:1, which should be fulfilled by the Borrower. The Group exceeded its maximum leverage threshold as at 30 June 2022 and 31 December 2021, the entire amount of the loan being repayable on demand.
As at 30 June 2022 and 31 December 2021, due to the breach in the covenant, the Group presented the entire loan payable in "Current portion of long-term bank borrowings" on the consolidated statement of financial position. The Group has obtained a waiver form the fulfillment of this condition for the loan to not be repayable on demand (please see Note 20).
The agreement with European Bank for Reconstruction and Development stipulates two financial covenants: interest coverage ratio (EBITDA for the 12 months preceding the date of calculation to interest payments on all Financial Debt due or accrued during such period) of not less than 3.00:1.00, which should be fulfilled by the Borrower and Net Debt to Consolidated EBITDA for the 12 months preceding the date of calculation of not more than 3.00:1.00 to be fulfilled by the guarantor Electrica SA at each financial year and of the first half of each financial year. Any breach in either of the covenants would constitute non-compliance leading to repayment of the loan on demand.
As at 31 December 2021 and 30 June 2022, the Group exceeded its maximum threshold for the covenant Net Debt to Consolidated EBITDA and recognized the entire debt in "Current portion of long-term bank borrowings" on the Consolidated Statement of Financial Position.
On 24 February 2022, EBRD issued a waiver letter in respect to the Loan agreement for:
(a) the Guarantor's Financial Ratio, but in respect of its financial year ending 31 December 2021 only;
(b) the Event of Default that has occurred and is continuing pursuant to Section 7.01(b) (Financial ratio) of the Loan Agreement, but only in respect of the Guarantor's failure to comply with the Guarantor's Financial Ratio for the financial year ending 31 December 2021.
As at 30 June 2022, The Group is in the process of obtaining a new waiver for the loan to not be repayable on demand.
3) European Investment Bank loan agreement
The agreement with European Investment Bank with a maximum loan value of EUR 120,000 thousand, out of which no drawings were yet made, stipulates two financial covenants: interest coverage ratio (the ratio of EBITDA to Net Finance Charges) shall not be less than 3x and net leverage ratio (the ratio of total Net Debt to EBITDA) shall not be more than 3x, calculated at each relevant period, which must be fulfilled by the guarantor Electrica SA. Relevant period means each period of 12 months ending on or about the last day of the Financial Year and each period of 12 months ending on or about the last day of each Financial Semester. As at 30 June 2022 and 31 December 2021, the Group exceed the maximum threshold for both covenants, bearing the risk of not being able to make drawings from the loan.
In the loan agreements with BRD-Groupe Societe Generale, due to the existence of the non-performance clause with cross effect, whereby the non-fulfillment of financial obligation resulting from other loan agreements concluded with other credit institutions constitutes a breach of current contractual terms having as possible effect repayment on demand, as at 30 June 2021 and 31 December 2021, the Group presented the entire loan payable in "Current portion of long-term bank loans" in the consolidated statement of financial position.
| Fiscal | Others | Total provisions | |
|---|---|---|---|
| Balance at 1 January 2022 (audited) | 1,084 | 33,838 | 34,922 |
| Provisions recognised | - | 8,044 | 8,044 |
| Provisions used | - | (2,895) | (2,895) |
| Provisions reversed | - | (3,032) | (3,032) |
| Balance at 30 June 2022 (reviewed) |
1,084 | 35,955 | 37,039 |
As at 30 June 2022 provisions mainly refer to benefits upon the termination of executive directors' mandate contracts in the form of a non-compete clause of RON 1,268 thousand (31 December 2021: RON 3,971 thousand) and for various claims and litigations involving the Group companies with a total amount of RON 34,687 thousand (31 December 2021: RON 30,951 thousand).
According to IFRS 9, financial assets are measured at amortised cost because they are held within a business model to collect contractual cash flows and these cash flows consist solely of payments of principal and interest on the principal amount outstanding.
The Group assessed that the carrying amount is a reasonable approximation of the fair value for the financial assets and financial liabilities.
The fair value measurements are categorised into different levels in the fair value hierarchy based on the inputs to valuation techniques used. The different levels are defined as follows:
As at 30 June 2022 and 31 December 2021, the major shareholder of Societatea Energetica Electrica S.A. is the Romanian State, represented by the Ministry of Energy with a share of ownership of 48.79% from the share capital.
| Six month period ended | ||||
|---|---|---|---|---|
| 30 June 2022 | 30 June 2021 | |||
| (reviewed) | (reviewed) | |||
| Executive management compensation | 18,257 | 13,596 |
Executive management compensation refers to both the managers with mandate contract and those with labour contract, from both the subsidiaries and Electrica SA. This also includes the benefits in the event of the termination of mandate contracts for executive directors.
Compensations granted to the members of the Board of Directors were as follows:
AS AT AND FOR THE SIX MONTH PERIOD ENDED 30 JUNE 2022
(All amounts are in THOUSAND RON, if not otherwise stated)
| Six month period ended | ||||
|---|---|---|---|---|
| 30 June 2022 | 30 June 2021 | |||
| (reviewed) | (reviewed) | |||
| Members of the Board of Directors | 1,879 | 2,398 |
The Group has transactions with companies in which the State has control or significant influence in the ordinary course of business, related mainly to the acquisition of electricity and gas, transport and system services and sale of electricity. Significant purchases and balances are mainly with electricity and gas producers/suppliers, as follows:
| Purchases (excluding VAT) | Balance (including VAT) | |||
|---|---|---|---|---|
| Supplier | Six month period ended 30 June 2022 (reviewed) |
Six month period ended 30 June 2021 (reviewed) |
30 June 2022 (reviewed) |
31 December 2021 (audited) |
| OPCOM | 1,208,099 | 507,357 | 23,903 | 29,203 |
| Transelectrica | 485,402 | 322,976 | 139,234 | 155,931 |
| Nuclearelectrica | 331,473 | 257,852 | 32,446 | 43,343 |
| Complexul Energetic Oltenia | 211,004 | 195,033 | 25,269 | 31,502 |
| Hidroelectrica | 287,156 | 125,926 | 67,636 | 19,711 |
| Electrocentrale Bucuresti | 181,919 | - | - | - |
| ANRE | 10,295 | 4,858 | 5,124 | 132 |
| Transgaz | 4,094 | - | 134 | 1,226 |
| SNGN Romgaz SA | 52,686 | - | 3,278 | 3,305 |
| Others | 3,477 | 7,613 | 936 | 1,332 |
| Total | 2,775,605 | 1,421,615 | 297,960 | 285,685 |
The Group also makes sales to other entities in which the State has control or significant influence representing electricity supply, of which the most significant transactions are the following:
| Sales (excluding VAT) | Balance, gross (including VAT) |
Allowance | Balance, net | |
|---|---|---|---|---|
| Client | Six month period ended 30 June 2022 (reviewed) |
30 June 2022 (reviewed) |
||
| OPCOM | 155,939 | 21,802 | - | 21,802 |
| Transelectrica | 87,884 | 53,010 | - | 53,010 |
| Hidroelectrica | 37,837 | 6,600 | - | 6,600 |
| CN Romarm | 11,064 | 4,740 | - | 4,740 |
| SNGN Romgaz | 20,644 | 12,537 | - | 12,537 |
| Transgaz | 7,953 | 1,604 | - | 1,604 |
| CFR Electrificare | 5,083 | 398 | - | 398 |
| CN Remin SA | 718 | 71,435 | (71,216) | 219 |
| Oltchim | - | 536,156 | (536,156) | - |
| C.N.C.A.F. MINVEST SA | - | 26,802 | (26,802) | - |
| CET Braila | 9 | 3,371 | (3,361) | 10 |
| Termoelectrica | - | 1,206 | (1,206) | - |
| National Agency for Payments | ||||
| and Social Inspection | - | 7,401 | - | 7,401 |
| Ministry of Energy (*) | - | 1,168,752 | - | 1,168,752 |
| Others | 20,979 | 5,662 | (647) | 5,015 |
| Total | 348,110 | 1,921,476 | (639,388) | 1,282,088 |
(All amounts are in THOUSAND RON, if not otherwise stated)
(*) During the six month period ended 30 June 2022, Electrica Furnizare S.A. recognized subsidies in amount of RON 1,132,076 thousand, to be received from the Ministry of Energy, following the application of the capping price mechanism for the electricity and natural gas as approved by Order no. 118/2021 with subsequent amendments and GEO no. 27/2022.
| Sales (without VAT) |
Balance, gross (including VAT) |
Allowance (including VAT) |
Balance, net | |
|---|---|---|---|---|
| Client | Six month period ended 30 June 2021 (reviewed) |
31 December 2021 (audited) |
||
| OPCOM | 32,886 | 28,468 | - | 28,468 |
| Transelectrica | 17,209 | 27,091 | - | 27,091 |
| SNGN Romgaz SA | 11,703 | 1,664 | - | 1,664 |
| Hidroelectrica | 5,062 | 2,638 | - | 2,638 |
| CN Romarm | 7,044 | 1,093 | - | 1,093 |
| CFR Electrificare | 4,794 | 507 | - | 507 |
| C.N.C.F CFR SA | 3,763 | 701 | (1) | 700 |
| CNAIR | 3,768 | 962 | - | 962 |
| Municipiul Galati | 4,545 | 12 | (12) | - |
| Transgaz | 405 | 1,571 | - | 1,571 |
| CN Remin SA | 269 | 71,216 | (71,216) | - |
| C.N.C.A.F MINVEST SA | - | 26,802 | (26,802) | - |
| Oltchim | - | 536,156 | (536,156) | - |
| CET Braila | 11 | 3,361 | (3,361) | - |
| Termoelectrica | - | 1,206 | (1,206) | - |
| National Agency for Payments and | - | 59,271 | - | 59,271 |
| Social Inspection | ||||
| Ministry of Energy | - | 11,420 | - | 11,420 |
| ANAR-Adm.Nat.Apele Romane | 97 | - | - | - |
| Consiliul Judetean Galati | 5,383 | - | - | - |
| Others Total |
9,531 106,470 |
2,204 776,343 |
(536) (639,290) |
1,668 137,053 |
On 21 March 2022 the Group acquired an additional 30% of the shares and voting interests in Sunwind Energy S.R.L.. As a result, the Group's equity interest increased from 30% to 60%, gaining control of Sunwind Energy S.R.L..
On 27 May 2022 the Group acquired an additional 30% of the shares and voting interests in New Trend Energy S.R.L.. As a result, the Group's equity interest increased from 30% to 60%, gaining control of New Trend Energy S.R.L..
The Group has concluded that the acquired set is a business.
Taking control of both New Trend Energy S.R.L. and Sunwind Energy S.R.L. will enable the Group to develop a portfolio of electricity generation capacities from renewable sources.
The Consideration transferred for the shares acquired was as follows:
| New Trend Energy S.R.L. (31 May 2022) |
Sunwind Energy S.R.L. (31 March 2022) |
Total | |
|---|---|---|---|
| Cash | 802 | 2,204 | 3,006 |
| Fair value of pre-existing interest | 4,786 | 2,190 | 6,976 |
| Consideration transferred | 5,588 | 4,394 | 9,982 |
The Group incurred acquisition-related costs of RON 100 thousand relating to external legal fees and due diligence costs. These costs have been included in "Other operating expenses" in the condensed consolidated statement of profit or loss.
The following table summarises the recognised amounts of assets acquired and liabilities assumed at the date of acquisition:
| New Trend Energy S.R.L. (31 May 2022) |
Sunwind Energy S.R.L. (31 March 2022) |
Total | |
|---|---|---|---|
| Property, plant and equipment | 273 | 163 | 436 |
| Right of use assets | 6,095 | 2,864 | 8,959 |
| Trade and other receivables | 46 | 20 | 66 |
| Cash and Cash equivalents | 7 | - | 7 |
| Total assets | 6,421 | 3,047 | 9,468 |
| Trade and other payables | (1) | (1) | (2) |
| Finance lease liability | (6,764) | (3,184) | (9,948) |
| Other non-current liabilities | (332) | (191) | (523) |
| Other payables | (8) | - | (8) |
| Total liabilities | (7,105) | (3,376) | (10,481) |
| Net assets | (684) | (329) | (1,013) |
Goodwill arising from the acquisition has been recognised as follows:
| New Trend Energy S.R.L. (31 May 2022) |
Sunwind Energy S.R.L. (31 March 2022) |
Total | |
|---|---|---|---|
| Consideration transferred | 5,588 | 4,394 | 9,982 |
| NCI, based on their proportionate interest in the recognised amounts of the assets and liabilities |
(274) | (132) | (406) |
| Fair value of identifiable net assets | 684 | 329 | 1,013 |
| Goodwill | 5,998 | 4,591 | 10,589 |
The goodwill is attributable mainly to the know-how of the projects and the synergies expected to be achieved from integrating the companies into the Group's existing business. None of the goodwill recognized is expected to be deductible for tax purposes.
Tax audits are frequent in Romania, consisting of detailed verifications of the accounting records of taxpayers. Such audits sometimes take place after months, even years, from the date liabilities are established. Consequently, companies may be found liable for significant taxes and fines. Moreover, tax legislation is subject to frequent changes and the authorities demonstrate inconsistency in interpretation of the law.
Income tax returns may be subject to revision and corrections by tax authorities, generally for a five year period after they are completed.
The Group may incur expenses related to previous years' tax adjustments because of controls and litigations with tax authorities. The management of the Group believes that adequate provisions and liabilities were recorded in the consolidated financial statements for all significant tax obligations; however, a risk persists that the tax authorities might have different positions.
The former SDEE Muntenia Nord S.A. subsidiary (currently Distributie Energie Electrica Romania S.A.) was subject to a tax audit performed by the Local Taxes Department of Galati City Hall that referred to the taxes on buildings paid for the period 2012-2016. The tax audit was finalized in December 2019, when the fiscal inspection report was communicated to the subsidiary. The fiscal report established additional payment obligations for the subsidiary representing building tax for the period 01.01.2012-31.12.2015 in the total amount of RON 24,831 thousand, of which principal in amount of RON 12,051 thousand and related late-payment penalties computed as of October 2019, in amount of RON 12,780 thousand. Against Galati City Hall, former SDEE Muntenia Nord S.A. subsidiary (currently Distributie Energie Electrica Romania S.A.) filed a legal request registered at Ploiesti Court of Appeal. At the term of 21 June 2022, the action was dismissed as being unfounded having the possibility to appeal against the ruling within 15 days from the official communication of the sentence.
The Group recognised an expense of RON 12,051 thousand during the year ended 31 December 2019.
The Group is involved in a series of litigations and claims (eg. with ANRE, ANAF, Court of Accounts, claims for damages, claims over land titles, labour related litigations etc.).
As summarised in Note 15, the Group made provisions for the litigations or claims for which the management assessed as probable the outflow of resources embodying economic benefits due to low chances of favourable outcomes of those litigations or disputes. The Group does not discloses information in the financial statements and did not made provisions for litigations and claims for which management assessed a remote possibility of outflow of economic benefits.
If applicable, the Group discloses information on the most significant amounts subject to litigations or claims for which the Group did not make provisions as they relate to possible obligations that arise from past events whose existence will be confirmed only by the occurrence or non-occurrence of uncertain future events not wholly within the control of the Group (ie. litigations for which different inconsistent sentences were issued by the courts, or litigations which are in early stages and no preliminary ruling was issued so far).
On August 1, 2022, was signed additional Act no. 1/11673879 to Credit Agreement no. 11673879/02.02.2022 concluded by EFSA and Banca Transilvania SE Electrica SA as co-debtor, extending the validity of the ceiling of RON 190,000 th until 31.08.2022.
On August 3, 2022, was signed additional Act no. 1/03.08.2022 to Credit Agreement no. 17/8130/2022 dated 04.02.2022 concluded by EFSA and BRD GROUPE SOCIETE GENERALE SA, SE Electrica SA as co-debtor by which the validity of the ceiling of RON 220,000 th is extended until 02.03.2023.
On August 3, 2022, was signed additional Act no. 1 to the Credit Facility Agreement no. WB/C/14 dated 18.02.2022 concluded by EFSA and ING Bank NV, SE Electrica SA as guarantor, which eliminates the possibility of using the Credit Facility for the purpose of issuing guarantee instruments and the date of final repayment, respectively the period of draw will not be later than 16.09.2022.
On 6 July 2022, Electrica SA signed, as buyer, with Mr. Vlad-Mihai Ungureanu and Mr. Tudor-Nicolae Ungureanu, as sellers, a shares sales and purchase agreement ("SPA") in one project company having as main object of activity the production of energy from renewable sources. The SPA concerns the acquisition of 100% of the shares of Green Energy Consultancy & Investments S.R.L., wholly owned by the sellers, for an estimated total price of EUR 600,000.
The final price will be determined by adjusting the total estimated price depending on the production capacity, based on a contractually established calculation formula. Green Energy Consultancy & Investments S.R.L. develops the photovoltaic project "Vulturu", with a designed installed capacity of 12 MWp DC (peak power at the panels level) and 9.75 MW AC (power authorised for delivery into the grid), located near Vulturu locality, Vrancea county.
After 30 June 2022, RON 391,711 thousand were collected from the State for capping subsidies, so that from the total subsidies registered under GEO no. 118/2021 (applicable to the period January-March 2022), RON 150,061 thousand remained to be collected and of the total subsidies registered under GEO no. 27/2022 (starting with April 2022), RON 589,814 thousand remained to be collected from the State.
Chief Executive Officer Chief Financial Officer
Alexandru – Aurelian Chirita Stefan Alexandru Frangulea
Deloitte Audit S.R.L. Clădirea The Mark Tower Calea Griviței nr. 82-98 Sector 1, 010735 București, România
Tel: +40 21 222 16 61 Fax: +40 21 222 16 60 www.deloitte.ro
To the shareholders, Societatea Energetica Electrica S.A.
Răzvan Ungureanu, Statutory Auditor
For signature, please refer to the original signed Romanian version.
Registered in the Electronic Public Register of Financial Auditors and Audit Firms under no. AF 4866
On behalf of:
Registered in the Electronic Public Register of Financial Auditors and Audit Firms under no. FA 25
The Mark Building, 84-98 and 100-102 Calea Grivitei, 8 th Floor and 9th Floor, District 1 Bucharest, Romania August 17, 2022
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