To the: Bucharest Stock Exchange – Department of Operations Issuers Regulated Markets Financial Supervision Authority - General Directorate Supervision - Issuers Division

Communiqué as per the provisions of Law 24/2017, ASF Regulation 5/2018 and of BVB Code

Date of communiqué: 13 May 2022

Name of Issuer Company: NPG TRANSELECTRICA SA, Company Managed by Two-tier System Headquarters: Bucharest 1, Blvd. Gheorghe Magheru 33 Working location: Bucharest 3, Str. Olteni 2-4 Phone / fax numbers: 021 30 35 611/021 30 35 610 Single registration code: 13328043

Number in the Trade Register: J40/8060/2000 Share capital subscribed and paid: 733.031.420 RON

LEI Code: 254900OLXCOUQC90M036

Regulated market where the issued securities are transacted: Bucharest Stock Exchange

Important event to report: Abstract of financial results from Quarter I 2022

Such reporting includes:

Stand-alone Interim Simplified Financial Statements on 31 March 2022
Quarterly report about the activities of NPG Transelectrica SA in January-March 2022

In Q1 2022 Transelectrica registered decrease in activity profitability compared to Q1 2021, determined by higher electricity price procured on the DAM, which was four times higher than last year and led to higher expenses with RON 162 mn for one's technological consumption than the previous year (+173%).

Despite a difficult year 2021 and the difficulties encountered in Q1 2022, the Comapny management took a cautious approach, which led to positive result and compliance with all financial commitments.

Total operational revenues obtained in January-March 2022 registered 69% growth compared to the same period of last year (RON 1,231 mn in Q1 2022 against RON 726 mn in Q1 2021), mainly determined by higher average transmission tariff and an increase in the revenues achieved on the balancing market.

In Q1 2022 the electricity consumption within SEN registered decrease in all the three months. In the first place this was owed to higher prices of primary fuels, which was mirrored in the final electricity price while on the other hand average temperature values of January and February provided positive abnormal values above climatic norms.

Segment of profit allowed activities: The main area of basic business recorded ▲30% revenue increase, mainly determined by greater revenues from the transmission tariff approved by ANRE and by interconnection revenues.

Segment of zero profit activities: The main area of zero profit activities recorded revenue increase in Q1 2022 as well as of costs on the balancing market, twice higher than in Q1 2021. In accordance with ANRE regulations, non-null monthly balances (revenue surpluses) resulting from these activities will be compensated by ex-post (negative) tariff correction that ANRE applies into the tariff of years after that when such surplus was registered.

Indicators	M. U.	Q1 2022	Q1 2021	∆
Financial
Charged energy volume	[TWh]	14.35	14.93	▼ 4%
PROFIT ALLOWED ACTIVITIES
Total revenues	[RON mn]	431	333	▲ 30%
Average transmission tariff (achieved)	[RON/MWh]	23.89	20.48	▲ 17%
Transmission revenues and other activities revenues on the energy	[RON mn]	419	323	▲ 30%
market
EBITDA	[RON mn]	55	122	▼ 55%
Amortisement	[RON mn]	63	64	▼ 2%
EBIT	[RON mn]	(8)	58	n/a
ZERO PROFIT ACTIVITIES
EBIT	[RON mn]	21	38	▼ 46%
ALL ACTIVITIES (PROFIT ALLOWED AND ZERO PROFIT)
EBIT	[RON mn]	13	96	▼ 87%
Net profit	[RON mn]	8	82	▼ 90%
Operational
Net internal consumption	[TWh]	14.9	15.5	▼ 4%
Net internal output	[TWh]	14.1	15.2	▼ 7%
Net import	[TWh]	0.8	0.3	▲ 190%

The report on Company activities in January-March 2022 and the Stand-alone Interim Simplified Financial Statements on 31 March 2022 are available beginning with 13 May 2022 as follows:

Online on the www.transelectrica.ro website, section Investor Relations Periodical Reports / Reports, namely https://www.transelectrica.ro/rapoarte-2022;

At Company offices: Str. Olteni 2-4, Bucharest 3;

Gabriel ANDRONACHE Executive Director General Directorate Chairman

Florin-Cristian TATARU Directorate Member

NPG Co. TRANSELECTRICA

Quarterly report January – March 2022

REPORT ON THE ECONOMIC – FINANCIAL ACTIVITIES

OF NPG Co. TRANSELECTRICA SA

In accordance with the provisions of article 67 from law 24/2017 on the capital market and

Regulation 5/2018 issued by the Financial Supervisory Authority (ASF)

for the time period ended on 31 March 2022

Data raportului:	13 May 2022
Name of trading company:	NATIONAL POWER GRID COMPANY TRANSELECTRICA SA, company managed under two-tier system
Working location:	Bucharest 3, Str. Olteni 2 - 4, postal code 030786
Phone/fax numbers:	021 303 5611/ 021 303 5610
Code with the ONRC:	13328043
Number with the RC:	J40/ 8060/ 2000
LEI Code (Legal Entity Identifier)	254900OLXOUQC90M036
Date of Company establishment:	31.07.2000/ GEO 627
Share capital:	733,031,420 RON, subscribed and paid
Regulated market where the issued securities are transacted:	Bucharest Stock Exchange, Premium category
Main characteristics of the issued securities:	73,303,142 shares of 10 RON/nominal value each, as dematerialised, nominative, ordinary, indivisible and freely transactable shares as of 29.08.2006 under TEL symbol
Market value:	1,466,062,840 RON (20.00 RON/share on 31.03.2022)
Accounting standard applied:	International financial reporting standards
Audit:	The quarterly financial statements prepared on 31.03.2022 have not been audited. The amounts corresponding to December 31, 2021 are audited by the external financial auditor.

RESPONSIBLE PERSONS' STATEMENT

To the best of our knowledge, the stand-alone interim simplified financial statements as of and for the three months' period ended on 31 March 2022 have been elaborated in accordance with the International Accounting Standard 31 "Interim Financial Reporting" and they provide an accurate image in compliance with the real situation of the financial position and profit and loss account of NPG Co. Transelectrica SA.

This report comprises fair complete information about the economic-financial situation and the activities of NPG Co. Transelectrica SA.

Bucharest, 6 May 2022

Key figures of Q1 2022 vs Q1 2021

KEY FIGURES

⁹¹RON mn ▼ -18% Acquisition of tangible and intangible assets y/y 23.74 RON mn ▼ -48% Fixed assets recorded in the accounts (commissioning) y/y

▲	69% y/y	Revenues	2.28%	*	▼	- 0.53 y/y	pp	OTC
▼	-53% y/y	EBITDA	11.30	TWh	▼	-1% y/y		Transmitted energy***

OTC – one's Own Technological Consumption (grid losses)

* Share of one's own technological consumption in the electricity taken over by the electricity transmission grid (transmitted energy)

** The charged quantity is defined by the electricity amount extracted from public interest networks (transmission and distribution networks), less the electricity exports

*** The transmitted quantity is defined by the power amount physically carried in the transmission network

Note: For reading facility and result understanding, certain figures provided in graphs and/or tables use mn RON as measuring unit and are rounded up to it. This presentation convention might determine in certain circumstances minor differences between totalling figures and totals obtained by summing up the components.

Financial data

The summary of financial results on 31 March 2022 is provided in the tables below. The Q1 2022 financial results have not been audited, and their extended version for the same period is provided in the Annexes to this Report.

Stand-alone profit or loss statement
[RON mn]	Q1 2022	Q1 2021	Δ	Δ (%)
	1	2	3=1-2	4=1/2
Billed energy volume [TWh]	14.35	14.93	(0.58)	(4%)
ALLOWED PROFIT ACTIVITIES
Operating revenues	431	333	98	30%
Transmission and other revenues on the electricity market, of	419	323	96	30%
which:
Regulated tariff	343	306	37	12%
Other revenues on the electricity market	7	7	(0)	n/a
Interconnection	70	10	59	n/a
Other revenues	13	10	2	23%
Operating expenses	377	211	165	78%
System operating expenses	274	109	165	152%
Repairs and maintenance expenses	18	15	3	19%
Personnel expenses	61	49	12	24%
Other expenses	24	38	(14)	(37%)
EBITDA	55	122	(67)	(55%)
Depreciation	63	64	(1)	(2%)
EBIT	(8)	58	(66)	n/a
ZERO PROFIT ACTIVITIES
Operating revenues	799	393	406	103%
Technological system services revenues	134	173	(39)	(23%)
Balancing market revenues	665	220	445	202%
Operating expenses	778	355	423	119%
Technological system services expenses	121	143	(22)	(15%)
Balancing market expenses	657	212	445	210%
EBIT	21	38	(17)	(46%)
ALL ACTIVITIES (WITH PROFIT ALLOWED AND ZERO
PROFIT)
Operating revenues	1,231	726	504	69%
Operating expenses	1,155	567	589	104%
EBITDA	75	160	(84)	(53%)
Depreciation	63	64	(1)	(2%)
EBIT	13	96	(83)	(87%)
Financial result	(2)	(1)	(1)	n/a
EBT	11	94	(84)	(89%)
Income tax	3	12	(10)	(80%)
Net profit	8	82	(74)	(90%)

Stand-alone statement of financial position
[RON mn]	Q1 2022	2021	Δ	Δ (%)
	1	2	3=1-2	4=1/2
Non-current assets
Tangible assets	3,822	3,815	8	0%
Assets of the usage rights for leased assets - buildings	28	30	(2)	(7%)
Intangible assets	7	7	0	1%
Financial assets	82	82	0	0%
Total	3,939	3,933	6	0%
Current assets
Inventories	42	40	2	4%
Receivables	3,443	2,996	448	15%
Income tax to be recovered	18	21	(3)	(15%)
Cash and cash equivalents	90	252	(162)	(64%)
Total	3,593	3,309	284	9%
Total assets	7,532	7,242	290	4%
Shareholders' Equity	3,366	3,355	11	0%
Non-current liabilities
Deferred revenues	447	443	4	1%
Borrowings	73	79	(6)	(8%)
Other borrowings and similar liabilities – Building leasing	21	23	(2)	(9%)
Other non-current liabilities	177	177	(1)	(0%)
Total	718	723	(5)	(1%)
Current liabilities
Trade payables and other liabilities	3,142	3,034	108	4%
Current borrowings	216	25	191	n/a
Other borrowings and similar liabilities – Building leasing	8	8	0	1%
Other current liabilities	82	98	(16)	(16%)
Total	3,447	3,164	283	9%
Total liabilities	4,166	3,887	278	7%
Total shareholder's equity and liabilities	7,532	7,242	290	4%

Stand-alone statement of cash flows
[RON mn]	Q1 2022	Q1 2021	Δ	Δ (%)
Cash flows before changes to working capital	62	145	(82)	(57%)
Cash flows from operating activities	(251)	(30)	(221)	n/a
Net cash from operating activities	(253)	(34)	(220)	(n/a
Net cash used in investing activities	(91)	(111)	20	18%
Net cash used in financing activities	182	(8)	191	n/a
Net increase/(decrease) in cash and cash equivalents	(162)	(153)	(9)	(6%)
Cash and cash equivalents as of 1 January	252	554	(302)	(54%)
Cash and cash equivalents at the end of the period	90	401	(311)	(78%)

OPERATIONAL RESULTS

Charged volume of electricity

Between January and March 2022, the total amount of electricity charged for services provided on the electricity market (14.35 TWh) decreased by 4% compared to the same period of 2021 (the difference between the two periods being - 0.6 TWh).

Operational revenues

Total operational revenues between January and March 2022 increased by 69% compared to the same period of the previous year (RON 1,231 mn in Q1 2022 compared to RON 726 mn in Q1 2021), mainly due to the increase in the average tariff amid the decrease in the amount of electricity delivered to consumers as well as the significant increase of revenues achieved on the balancing market.

The profit allowed activities segment registered an increase of 30% in revenues (RON 431 mn in Q1 2022 compared to RON 333 mn in Q1 2021), mainly determined by the increase of transmission revenues and other revenues on the energy market (RON 419 mn in Q1 2022 compared to RON 323 mn in Q1 2021). The increase in revenues is influenced by the increase in the average transmission tariff (for regulated transmission tariff revenues), but also by the evolution of interconnection revenues, mainly determined by the use of interconnection availabilities, by the increase in electricity market prices Europe-wide as well as the energy deficit in Europe. Default allocations, capacity and energy being simultaneously allocated, are strongly influenced by changes in the electricity price on European stock exchanges.

Between January and March 2022, the revenues from interconnection capacity allocation registered a significant increase of RON 59.2 mn compared to the same period last year, corresponding to:

the utilisation of interconnection capacity by traders on the electricity market,
increasing the interest of participants to purchase interconnection capacity (the market fluctuates depending on their need to purchase)
the energy deficit Europe-wide,
the unit price of electricity that has increased throughout the European Union, causing large price differences between coupled markets.

The mechanism for allocating interconnection capacity consists of organizing annual, monthly, daily and intraday tenders. The annual, monthly and intraday ones (only on the border with Serbia) are explicit - only the transmission capacity is tendered, and the daily ones (border with Hungary and Bulgaria) and the intraday ones (borders with Hungary and Bulgaria) are implicit are allocated simultaneously with energy and capacity, through the coupling mechanism.

On June 17, 2021, the Romanian Day-Ahead Market started operating in a coupled mechanism at European level, with the implementation of the DE-AT-PL-4M MC project, also known as Interim Coupling, the Romania-Hungary border being integrated in the single day-ahead market coupling (SDAC). As of October 27, 2021, the Romania-Bulgaria border has been integrated into the single day-ahead market coupling (SDAC), cross-border capacity between Romania and Bulgaria being implicitly allocated.

The use of net revenues from the allocation of interconnection capacity is made in accordance with the provisions of updated ANRE Order no. 171/2019 and EU Regulation no. 943 of June 5, 2019 on the internal electricity market, as a source of investment financing for the modernization and development of interconnection capacity with neighbouring systems.

In coupled markets, energy transactions are made without paying capacity reservation fees on lines, which facilitates trade and the coupling mechanism takes energy flows from the cheapest to the most expensive markets.

Revenues from electricity transacted for OTC were mainly obtained by selling excess energy on the Intraday Market managed by OPCOM and under BRP CIGA Energy, on the Balancing Market.

The launch of the coupled intraday market at European level has ensured greater market liquidity and diversification of traded products under the XBID/SIDC project.

OTC transaction revenues were lower in Q1 2022 compared to Q1 2021 (from RON 6.1 mn in Q1 2021 to RON 5.8 mn in Q1 2022).

In the first quarter of 2022 as well as during 2021, the main factors that had a significant impact on revenues/expenditures in energy transactions to cover PTC, are the legislative changes on the electricity balancing market, with applicability from 1 February 2021 (e.g. 15-minute settlement, application of the single settlement price on the balancing market).

* ITC , reactive energy, OTC transactions, energy exchanges

Revenues from zero-profit activities registered a significant increase of 103% (+ RON 406 mn), from RON 393 mn on March 31, 2021 compared to RON 799 mn on March 31, 2022 mainly determined by the increase by RON 445 mn of revenues on the balancing market.

The higher revenues on the balancing market were owed mainly to the following issues:

regulation
price limits of offers on the balancing market were removed according to the Regulation for balancing market settlement and Regulation for scheduling dispatchable generating units, dispatchable consumers and dispatchable storage installations, approved by ANRE Order 61/31.02.2020;
removing the obligation to participate on the balancing market, according to the Regulation for calculating and settling imbalances of the balancing responsible parties - single imbalance price and for amending some orders of the President of the National Energy Regulatory Authority, approved by ANRE Order no. 213/25.11.2020;
the balancing market applied the 15 minutes' settlement interval;
the single settlement price was applied on the balancing market from 1 February 2021 onward;
beginning with 01 June 2021 a new set was applied of common settlement rules for international electricity exchanges and unplanned exchanges (calculation methodology FSKAR – Financial Settlement of k△f, ACE and Ramping Period), providing financial settlement between Transmission System Operators and thus removing the compensations in kind by the Settlement Centres of Brauweiler (Germany) and Laufenburg (Switzerland) determined according to ENTSO-E methodology.
the application, starting with January 1, 2022, of the rules for imbalance netting between all TSOs, according to the IN (Imbalance Netting) Platform. In

this sense, from 01.01.2022 the European platform, International Grid Control Cooperation (IGCC)/IN Platform (Imbalance Netting) for the imbalance netting process between all TSOs, which perform the automatic frequency restoration process under part IV of Regulation (EU) 2017/1485.

market operation
the manner of contracting on the markets before the balancing one, at local and regional level;
the development of the average price recorded on the balancing market;
the development of hydraulicity;
the development of electricity generation and consumption;
the trend of the CO2 certificates' development,
the common settlement rules for planned energy exchanges and the common settlement rules for unplanned energy exchanges established in accordance with the provisions of Regulation (EU) no. 1485/2017 establishing a guideline on the operation of the electricity transmission system and Regulation (EU) no. 2195/2017 establishing a guideline on electricity system balancing.

The regulations applied in the national legislation in accordance with the provisions of Regulation (EU) 2019/943 of the European Parliament and Council of 5 June 2019 regarding the electricity market, namely settlement made at 15 minutes' granularity, the single settlement price on the balancing and the management of COVID-19 nation-wide have had and will have significant impact on the revenues/costs of the balancing market.

The balancing market management has a specific regulatory framework containing regularisation mechanisms which compensate the revenue excess or deficit in the expenses necessary to develop such activities. Thus according to ANRE regulations the nonnull monthly balances (revenue surpluses) resulting from such activities will be compensated by ex-post tariff correction (negative correction) applied by ANRE in the tariff of years following that when such balances were registered.

During January-March 2022, revenues from technological system services decreased by 23% compared to January-March 2021 (RON 134 mn on March 31, 2022 compared to RON 173 mn on March 31, 2021), due to the decrease in the tariff approved by ANRE for these services amid the reduction of the amount of electricity delivered to consumers by a percentage of 4%.

The regulatory framework specific for technological system services includes regularisation mechanisms providing compensation of revenue excess/deficit compared to expenses necessary for such activities. Thus according to ANRE regulations the revenue surplus/deficit against costs recognised for such activities will be compensated by ex-post (negative/positive) tariff correction applied by ANRE in the tariff of years following that when such surplus/deficit was registered. The revenue surplus/deficit against costs resulting from such activities is calculated for the tariff scheduling period.

Operational expenses

Total operational expenses (amortisement included) made in January-March 2022 registered an increase of 93% compared to the similar period of the previous year (RON 1,218 mn in Q1 2022 compared to RON 631 mn in Q1 2021).

In the profit allowed activities segment expenses (amortisement included) registered an increase of 60% (RON 439 mn in Q1 2022 compared to RON 275 mn in Q1 2021).

OTC: In Q1 2022, expenses for one's own technological consumption were higher by 173% (+ RON 162 mn) compared to Q1 2021, taking into account the following aspects:

due to its characteristics, the Own Technological Consumption (OTC) in the Power Transmission Grid (RET) is strongly dependent on weather conditions, the structure of electricity generation and consumption nation-wide, the distribution of electricity flows in the internal transmission network and on the interconnection lines with the neighbouring power systems, its value being almost not controllable at all amid an interconnected and coupled regional energy market;
the average price of energy purchased on DAM/IDM, which in Q1 was more than 4 times higher than the similar period of 2021, significantly exceeding the values recorded in recent years, the same trend is

noted Europe-wide, which has a significant impact on the costs incurred to cover OTC;

the unpredictability of the market is proved by the sharp and quick rise in prices, amid the increase in the price of the carbon certificate, a level of electricity generation capacity insufficient to replace generation based on fossil fuels, especially coal, in the context of market liberalisation, lack of competition from producers and competition from suppliers for the purchase of energy, in order to be able to fulfill its contracts with the many customers who have chosen the free market;
maintaining the high prices on the wholesale electricity market much higher than in the first quarter of 2021 as well as compared to the situation in previous years.
legislative changes in the balancing market (elimination of bid price limits on the balancing market, elimination of the obligation to participate in the balancing market, application of the single settlement price on the balancing market, transition of the balancing market to the 15-minute settlement interval) led to more than 2 times higher increases in the average price of energy purchased on the Balancing Market.

Average acquisition prices*

*- the average price was calculated at net value (purchase - sale)

On all markets there are considerably higher average prices than in Q1 2021, and the acquisition mix (net quantity) has the following components in the two analyzed periods:

Expenditures on electricity consumption in RET substations increased by 96% in January-March 2022 compared to January-March 2021 (RON 11.8 mn in 2022 compared to RON 6 mn in Q1 2021) due to price increases for the acquisition of electricity but also to the applicable legislative amendments starting with July 1, 2021, respectively the provisions of ANRE Order no. 82/2021.

In view of executing electricity transmission activities in electric substations and safely operate the National Power System Transelectrica has to procure electricity to cover the consumption of auxiliary services in high voltage power stations managed by the Company.

Inter TSO Compensation (ITC) Expenses

Monthly payment obligations/collection rights of each transmission system operator (TSO) are established under the compensation/settlement mechanism for the effects of using the electricity transmission grid (RET) to transit electricity in-between the TSOs that adhered to this ENTSO-E mechanism.

Between January and March 2022, these expenditures were 16% higher than in the same period of the previous year.

The zero-profit activities segment registered an increase of costs by 119% (RON 778 mn on March 31, 2022 compared to RON 355 mn on March 31, 2021), mainly determined by the increase of expenses on the balancing market.

The Company procures technological system services from producers in order to maintain safe operation of SEN and the quality of electricity transmitted at parameters required in applicable technical norms.

Such services are contracted as follows:

under regulatory regime according to Governmental Decisions and Decisions issued by the National Regulatory Authority in the Energy domain (ANRE);
by means of competitive mechanisms.

Technological system services are procured by competitive regime using daily bids, in accordance with the provisions of Regulation (EU) 2019/943 of the European Parliament and Council of 5 June 2019.

In the first quarter of 2022, the contracting of technological system services under regulated regime was carried out only for Reactive Energy. Transelectrica contracted Reactive Energy from Hidroelectrica SA, according to ANRE Decision no. 1078/2020.

The value of the expenses regarding the technological system services in Q1 2022, registered a decrease of 15% compared to those in Q1 2021 (RON 121 mn in Q1 2022 compared to RON 143 mn in Q1 2021)

The value of TSS acquisition costs for Q1 2022 was mainly determined by the following factors:

purchase prices of system services on the competitive market:
- the average purchase price of the secondary control reserve of RON 79.10/hMW;
- the average purchase price of the fast tertiary control reserve, power surge of RON 43.80/hMW;
- the average purchase price of the fast tertiary control reserve, power reduction of RON 9.42/hMW.
in 2022 the technological system services market showed high concentration for technological system services of secondary reserve (RS).

The Company re-invoices the technological system services procured from generators to ANRE – licensed electricity suppliers, which eventually benefit of such services.

For 2022 it is estimated that the procurement of technological system services through import/export daily bids in accordance with the provisions of Regulation (EU) 2019/943 of the European Parliament and of the Council of 5 June 2019, the evolution of ANRE's regulatory framework on the electricity market will have a significant impact on the development of technological system services procurement costs within Transelectrica.

Expenses regarding the balancing market made in Q1 2022, were higher by RON 445 mn compared to those achieved in Q1 2021. These expenses result from the notifications achievements of the participants on this market.

Operational result

Profit allowed activities registered negative result in Q1 2022, decreasing by RON 66 mn compared to the one registered in the same period last year.

The current situation of prices on the wholesale electricity market is fundamentally different from the situation in Q1 2021, strongly influenced by the increase in prices on the electricity market.

The difference is significant and obvious Europe-wide, not only in Romania.

In this respect, the development of wholesale energy prices on the European spot market can be observed. The situation Europe-wide has deteriorated rapidly since the second half of 2021, with energy stress being unprecedented, especially for electricity and natural gas, fuels for electricity production.

In this situation, the short-term centralised markets organized by the Electricity Exchanges registered unprecedented historical prices, and for the next period no significant price decreases are expected

EBIT generated by zero-profit activities registered positive RON 21 mn, decreasing RON 17 mn against that recorded in the same interval of last year.

The zero-profit regulatory framework contains regularisation mechanisms that compensate for the excess or deficit of revenue relative to the level of expenditure required to carry out those activities.

For balancing market management, according to ANRE regulations, the non-zero monthly balances (income surpluses) resulting from the development of this activity are to be compensated by ex-post tariff correction (negative correction) applied by ANRE in the tariff in the years following those when the balances were recorded.

For technological system services, according to ANRE regulations, the surplus/deficit of income compared to the included costs resulting from the development of this activity is to be compensated by ex-post tariff correction (negative/positive correction) applied by ANRE in the tariff in the years following the one in which the surplus/deficit in question was recorded. The income surplus/deficit compared to the costs resulting from this activity is calculated over the scheduling periods of the tariff.

Gross result (EBT)

The gross result registered a decrease in the analyzed period, from RON 94 mn in Q1 2021 to RON 11 mn in Q1 2022.

The dynamics between the result recorded in Q1 2022 compared to Q1 2021, broken down by profit constitutive components, is provided in the following graph:

Financial result

The net financial result registered in Q1 2022 is negative in the amount of RON 2 mn.

It was mainly influenced by the interest rates applied during the analysed period but also by the development of the national currency's exchange rate against Euro, the currency in which the Company has contracted bank loans to finance investment programs

The RON/Euro and RON/USD exchange rate in Q1 2022 is provided in the following graph:

Net result

The net result registered a decrease in the analyzed period, reaching RON 8 mn in Q1 2022, compared to RON 81.9 mn registered in 2021.

FINANCIAL POSITION

Non-current assets

They registered in the first quarter of 2022 compared to 2021 a slight increase in the amount of RON 6 mn, against a background of higher tangible assets underway, mainly determined by investments made into high voltage substations and lines.

Assets of the usage rights for leased assetsbuildings

Pag | 10 Such assets related to the usage rights for leased assets - buildings represent the right to use the Company-rented spaces in Platinum Office Building, according to the provisions of IFRS 16 – Leasing Contracts.

Beginning with 01.10.2020 the new lease contract (C232/2020 concluded with Dagesh Rom SRL) became effective, which is valid for 5 years.

As of March 31, 2022, the accounting value of the usage rights for Company-leased spaces in the Platinum Office Building amounted to RON 28 mn.

Financial assets

As of March 31, 2022, they did not register changes compared to December 31, 2021, remaining at the value of RON 82 mn.

Current assets

Current assets increased by 9% on March 31, 2022 (RON 3,593 mn) compared to December 31, 2021 (RON 3,309 mn), mainly due to the increase in trade receivables, advances to suppliers and recoverable VAT.

Trade receivables increase by RON 70 mn (RON 2,264 mn as of March 31, 2022 compared to RON 2,194 mn as of December 31, 2021). The most important developments were:

clients from the operational activity which due to the increase in the volume of transactions resulting from the market coupling in the first quarter of 2022 compared to the fourth quarter of 2021 generated a higher balance of receivables from the operational activity (RON 1,744 mn on March 31, 2022 compared to RON 1,408 mn as of December 31, 2021).
clients on the balancing market, which due to the decrease in the volume of transactions recorded a decrease in the balance of customers from contracts concluded for this type of activity on March 31, 2022 (RON 307 mn) compared to December 31, 2021 (RON 567 mn).

The main clients on balance on the electricity market are represented by: OPCOM, MAVIR, Ciga Energy SA, Electrica Furnizare SA, Cinta Energy SA, RAAN, Enel Energie SA, E.ON Energie Romania SA, IBEX, Tinmar Energy.

The share of the fore-mentioned clients is about 75% in total trade receivables.

As of March 31, 2022, the Company records receivables from the bonus-type support scheme for the promotion of high-efficiency cogeneration of approximately 9% (similar to December 31, 2021) of the total trade receivables. The increase of 1% related to the balances of the analyzed period was mainly determined by the increase of the invoiced value for the collection of the monthly contribution.

The Company carries out activities under the bonus-type support scheme to promote high efficiency cogeneration in its capacity of support scheme administrator in accordance with the provisions of HGR 1215/2009, its "main attributions being to collect monthly the cogeneration contribution and to pay bonuses each month".

As of March 31, 2022, the Company registers receivables in the amount of RON 210 mn, represented by the invoices issued related to the bonus-type support scheme for the promotion of high efficiency cogeneration, of which:

overcompensation for the period 2011-2013 in the amount of RON 76.70 mn, respectively from RAAN - RON 63.46 mn and CET Govora SA - RON 13.23 mn;
undue bonus for 2014 in the amount of RON 3.91 mn, respectively from RAAN – RON 1.98 mn, and CET Govora – RON 1.93 mn;
undue bonus for 2015 in the amount of RON 0.56 mn, respectively from CET Govora – RON 0.53 mn, Interagro – RON 0.03 mn;
undue bonus for 2020 in the amount of RON 0.52 mn from Donau Chem;
contribution for uncollected cogeneration from electricity cLIENTS' suppliers in the amount of RON 21.2 mn, respectively from: Transenergo Com - RON 5.88 mn, PetProd - RON 4.39 mn, Romenergy Industry - RON 2.68 mn , RAAN – RON 2.38 mn, UGM Energy – RON 1.50 mn, CET Govora – RON 0.90 mn, KDF Energy – RON 0.88 mn and others.

As of the date of this report, the Company has fully collected the receivables related to the overcompensation of the activity regarding the support scheme for 2021 (amount of RON 22.89 mn): CET Govora (RON 15.04 mn), BEPCO (RON 4.26 mn) and Electrocentrale Bucharest (RON 3.59 mn), as well as the amount of RON 32.63 mn from the undue bonus established by ANRE Decisions for 2022, from the following producers: Bepco SRL, Hunedoara Energy Complex, Oltenia Energy Complex, CET Govora, Colonia Cluj Napoca Energie, Contourglobal Solutions, Electrocentrale București, Electro Energy Sud, Electroutilaj SA, Poligen Power, Soceram SA, Termoficare Oradea and UATAA Motru.

To extinguish receivables generated by overcompensation and undue bonus the Company requested the producers qualified under the support scheme to make mutual compensations. In case of generators (RAAN, CET Govora) that did not agree with such manner of extinguishing mutual receivables and liabilities the Company has applied and further applies the provisions of article 17 para. 5 from Order 116/2013 of ANRE president approving the Regulation establishing the collection mode of the contribution for high efficiency cogeneration and the payment mode of the bonus for electricity generated under high efficiency cogeneration, and withheld from payment the related amounts under the support scheme.

Other receivables on 31 March 2022 amounted to RON 195 mn and mainly included:

sundry debtors (RON 161 mn), of which:

the net position of the support scheme regarding high efficiency cogeneration, debt position, in the amount of RON 56.98 mn.

The net position of the support scheme is the difference between:

the value of the contribution collected from the electricity clients' suppliers, the value of the overcompensation for producing electricity and heat in high efficiency cogeneration, the undue bonus to be collected from the producers, according to ANRE decisions, on the one hand, and
the amount of the cogeneration bonus, the precompensation and the unpaid bonus paid to the high-efficiency cogeneration energy producers, beneficiaries of the support scheme, on the other hand.
delay penalties calculated for defaulting clients, in the amount of RON 95.75 mn (of which the amount of RON 35.36 mn represents penalties related to the support scheme). The greatest delay penalties were registered by the following clients: RAAN (RON 16.90 mn), Romelectro (RON 14.75 mn), CET Govora (RON 9.61 mn), Electrocentrale București (RON 9.41 mn), Eco Energy SRL (RON 8.91mn), Petprod SRL (RON 8.89 mn), Next Energy Partners (RON 8.39 mn), Total Electric Oltenia (RON 3.29 mn), OPCOM (RON 2.40 mn),
compensations owed by suppliers for their non-delivery of electricity: Arelco Power (RON 0.99 mn) and Enol Grup (RON 2.54 mn), impairment allowances were registered for the compensations owed by suppliers from operational activities,
receivables recoverable from OPCOM representing VAT related to the contribution in kind to the subsidiary's share capital amounting to RON 4.52 mn.

deferred expenses amounting to RON 17.6 mn mainly represented by: expenses related to the acquisition of OTC (RON 6.6 mn), international fee ENTSO-E (RON 4.4 mn), ANRE annual contribution for 2022 (RON 2.8 mn), taxes and fees for 2022 (RON 2.6 mn), rent and maintenance of office buildings (RON 0.7 mn), RCA and CASCO policies;

other non-current receivables in sum of RON 4.3 mn, of which RON 4.2 mn represent guarantees for temporary land occupation, calculated and withheld according to article 39 para. (1), para. (2) & para. (5) of Law 46/2008 on the Forestry Code, in order to achieve the investment objective of the 400 kV OHL Resita – Pancevo (Serbia);
other social receivables in sum of RON 4 mn representing medical leaves the employer paid to employees, which will be recovered from the National Health Insurance House, according to applicable legislation.

Down payments to suppliers paid on 31 March 2022 are represented by debtor suppliers for services amounting to RON 929 mn and mainly represent sums from transactions related to the price-coupling mechanism (ICP – Interim Coupling Project, SIDC - Single Intraday Coupling and SDAC - Single Day-ahead Coupling) (RON 870.5 mn for ICP & SDAC and 58.1 mn for SIDC).

The start of the new successful SDAC Single Day-ahead Coupling took place on October 28, 2021 and is the result of cooperation between Nominated Electricity Market Operators (NEMOs) and Transmission System Operators (TSOs) in Bulgaria and Romania, respectively IBEX EAD, OPCOM SA, ESO EAD and Transelectrica.

VAT to recover represents the amount not recovered (related to the settlements of December 2021 - March 2022) of RON 267.5 mn. On May 4, 2022, the Company received from the state the amount of RON 169.4 mn.

The policy of Transelectrica consists in registering impairment allowances for value losses in quantum of 100% for clients under dispute, insolvency and bankruptcy and 100% of trade receivables and other receivables not collected for more than 180 days, except for outstanding receivables generated by the support scheme. The Company also makes individual analysis of uncollected trade receivables and other receivables.

The greatest impairment allowances as of March 31, 2022, calculated for trade receivables and related penalties, were recorded for CET Govora (RON 25.1 mn), Eco Energy SRL (RON 24.7 mn), Petprod SRL (RON 23.5 mn), Arelco Power (RON 14.8 mn), Total Electric Oltenia SA (RON 14.2 mn), Romenergy Industry (RON 13.5 mn), Romelectro SA (RON 12.9 mn) GETICA 95 (RON 12.5 mn), Elsaco Energy (RON 9.3 mn), RAAN (RON 8.5 mn).

Liabilities

Non-current liabilities amounting to RON 718 mn on March 31, 2022 registered a decrease of 1% compared to the value recorded on December 31, 2021 in the amount of RON 723 mn.

Interest-bearing liabilities

As of March 31, 2022, the value of non-current loans decreased compared to December 31, 2021, mainly due to repayments made under existing loan agreements. Instead, the value of current loans increased from the balance of RON 25 mn in December 2021 to RON 216 mn on March 31, 2022 by contracting current bank loans for the current activity.

At the same time, current debt increased by 9%, from RON 3,164 mn on December 31, 2021 to RON 3,447 mn on March 31, 2022, mainly due to the increase in current loans but also trade payables and other liabilities.

Impact on the evolution of trade payables had:

suppliers on the energy market which decreased by RON 39 mn and record a balance in the amount of RON 1,893 mn in Q1 2022 compared to RON 1,855 mn in 2021

This evolution was mainly influenced by:

the increase of the debt balance related to the operational activity by RON 288 mn, which was mainly determined by the payment in the second quarter of 2022 of the payment obligations outstanding on March 31, 2022, resulting mainly from the coupling of the electricity markets.

The suppliers on the electricity market are mainly represented by: IBEX, Hidroelectrica SA, OPCOM, MAVIR, Electrocentrale București SA, S Complexul energetic Oltenia SA, Joint Allocation Office, CIGA Energy SA, CINTA Energy SA, Electrica Furnizare SA. As of March 31, 2022, their share in total energy suppliers is about 89%.

- the decrease of the debts related to the balancing market by RON 325 mn was determined by the decrease of the volume of transactions registered on the balancing market in the first quarter of 2022, compared to December 2021.

- the decrease of the debts related to the support scheme to suppliers (producers) by RON 1 mn was determined by the decrease of the value of the monthly bonus for high efficiency cogeneration from March 2022, compared to December 2021.

As of March 31, 2022, there are payment obligations to suppliers (producers) in the amount of RON 35.5 mn

(RAAN – RON 32.2 mn and CET Govora SA – RON 3.4 mn), representing the monthly cogeneration bonus, preovercompensation for 2014 and 2015, bonus not granted for 2015.

The amounts representing the debts of the Company related to the support scheme towards RAAN and CET Govora were withheld from payment based on art. 17 para. 5 of the Order ANRE President no. 116/2013, as suppliers (producers) record payment obligations to the Company on the bonus support scheme.

"Other debts" which increased by RON 198 mn, registering an increase from the balance of RON 965.5 mn in 2021 to RON 1,163 mn in Q1 2022.

The "other debt" structure is as follows:

sundry debtors in the amount of RON 8.8 mn (decreased by RON 137 mn compared to December 31, 2021) are mainly represented by solution contracts for connection to RET (RON 4.7 mn), studies for synchronous interconnection of systems from Ukraine and the Republic of Moldova with the continental European system (RON 1.4 mn), related royalty Q1 2022,
client creditors as of March 31, 2022 are in the amount of RON 1,068 mn (increased by RON 316 mn compared to December 31, 2021) of which RON 1,068.3 mn and represent amounts received in advance from OPCOM (RON 942.2 mn), MAVIR (RON 118 mn), and IBEX (RON 8.1 mn) in transactions related to price coupling mechanisms, ICP (Interim Coupling Project), SIDC (Single Intraday Coupling) and SDAC (Single Day-ahead Coupling ).
liability for assets related to usage rights of leased assets - buildings, according to the provisions of IFRS 16 - Leasing contracts, is in the amount of RON 29.1 mn (non-current liability RON 20.8 mn, current liability RON 8.3 mn).
other liabilities in the amount of RON 56.8 mn are mainly represented by payment bonds of contracts on the electricity market concluded by CNTEE Transelectrica SA in the amount of RON 33.8 mn, non-requestable VAT during the reporting period of RON 22.7 mn.

Provisions decreased in value in the first quarter of 2022 compared to 2021, from RON 51.7 mn on December 31, 2021 to RON 38.9 mn on March 31, 2022, a decrease mainly determined by:

the decrease of the value of the provisions set up for litigations which on March 31, 2022 are in the amount of RON 20.5 mn compared to RON 31.2 mn registered at the end of 2021,
provisions for mandate contracts which on March 31, 2022 have a balance of RON 18.4 mn and which mainly represent the remuneration of executive and nonexecutive directors, remuneration consisting of the variable component related to the OAVT packages allocated and not valued during the mandates between 2013-2017.

Shareholders' equity

Equity registered an increase mainly determined by the registration in the retained earnings of the net profit in the amount of RON 8 mn, achieved on March 31, 2022. Thus the equity on March 31, 2022 is worth RON 3,366.4 mn compared to RON 3,355.1 mn in 2021.

DEVELOPMENT OF SHARES

(01-Jan-2022 la 31-March-2022)

2022 started with a trading price of 22.80 lei/share. At the end of the period, the market capitalization was 1,466 mn lei, the share's price being 20.00 lei/share. The minimum trading price was registered on 07.03.2022, of 17.40 lei/share, the maximum of 23.50 lei/share being reached on 11.01.2022.

The company has the ability to adapt to the economic context generated by the energy crisis aggravated by the war between Russia and Ukraine, the repercussions being observed even in the share price which at the end of the period fell by 12% from the reference value at the beginning of the year, consequently the market value registered a decrease of RON 205 mn.

Development of TEL share

During the first quarter of 2022, the trading of TEL shares on the Romanian capital market registered 5,159 transactions with an average number of 82 transactions/day and 729,619 traded shares, with a total value of 14,763 thousand lei.

Transelectrica shares belong in the structure of the following stock exchange indexes: BET-NG, BET, BET-TR, BET-XT, BET-XT-TR, BET-BK, BETPlus, BET-TRN, and BET-XT-TRN.

Among those, the most representative for the Company are:

BET index (Bucharest Exchange Trading reference index of the capital market showing the development of the most liquid 19 companies listed on BVB's regulated market)
BET-NG index (Bucharest Exchange Trading Energy & Related Utilities - sectoral index mirroring the development of energy companies and of the associated utilities listed on BVB's regulated market)

According to the latest adjustment date registered on 11.03.2022, TEL shares have a share of 1.10% in the BET index and 3.67% in the BET-NG index.

The development of the TEL share against the two indexes is provided in the graph below:

MAIN RISKS AND UNCERTAINTIES

Risk is an objective concept, which means it is measurable and can be minimised using preventive measures. Risk exposure occurs when a share provides a possible gain or loss, which cannot be anticipated for certain.

Incertitude refers to a situation when there are several alternatives leading to a specific result, but the result probability is not certain. This is owed to insufficient information or knowledge about current state of affairs. Consequently, it is difficult to define or predict future results or events.

Obviously knowing the threats enables their classification depending on the likelihood of their occurrence, on the size of impacts over objectives and on the costs implied by the measures meant to reduce the occurrance chances or to limit unwanted effects.

In entire Transelectrica risks are periodically systematically analysed pertaining to one's activities, elaborating the Risk Register of identified risks and the corresponding Measure Plan towards limiting the possible consequences of such risks, according to legal provisions.

Among the elements that can impact the Company's liquidity are:

Interest rate fluctuation; the Company attempts to minimise such risk both by negotiating the best interest rates and by contracting credits with fixed interest rate;
Exchange rate variation; at present Transelectrica has got a single hard currency credit (Euro);
The provisions of financing agreements: finance contracts comprise clauses regarding compliance with certain financial indicators, control changes over the Company, and pari passu clauses.

Breaching these clauses can entail, based on preliminary notification and a reasonable amount of time, anticipated credit payment; some credits include penalty clauses for anticipated repayment.

To date the Company did not receive notification of anticipated reimbursement for the failure to comply with assumed obligations.

Credit risk: the Company incurs financial loss because of a contractual partner's incapacity or refusal to comply with his contractual obligations; such risk mainly results from trade receivables, cash and cash equivalents. As measure to limit consequences the Company aims at concluding contracts with partners with sound solvability and a rating of "investment grade",
Risk of not cashing securities under investment projects: the main cause of this risk results from bank or insurance companies providing security services without the financial capacity to pay the liabilities assumed under the securing instuments issued,
The fiscality level, including the introduction of new charges and taxes.

In the first quarter of 2022, but also at the end of 2021 other identified risks that could influence the financial performance of the Company:

Risk of credit rating deterioration when indicators and the macro-political environment worsen and/or the Company's financial performance gets worse. This risk reflects a complex of factors with potential effect over the financing costs on the credit market, which can significantly impact the Company taking into account the substantial capital amount necessary to be drawn to finance the investment plan of the following years. On the other hand the Company rating depends strongly on Romania's sovereign rating. There is a risk that the rating agencies will demote Romania as a result of accelerated inflation, which tends to exceed 10%, but also as a result of the uncertain situation at the country's borders.

As of October 19, 2021, the Company has improved its rating (Corporate Family Rating) being evaluated by the agency Moody's Investors Service at the level of the sovereign rating, respectively Baa3, stable outlook.

investment risk as result of financial difficulties caused both by historical liabilities, the competitive environment and by their management;
the risk of non-collecting sums of money as a result of the execution of the guarantee instruments which were the basis for guaranteeing the advances received by the executors within the investment projects;
difficult process of procurement of works from the RET Maintenance Program, which may lead to its incomplete implementation;
difficult process of acquisitions of works from the Annual Investment Program, which can lead to the achievement below its scheduled quantitative or qualitative levels.
risks materialized at the level of territorial transmission units, namely, damage/failure/unavailability of 220 kV and 400 kV OHLs, primary equipment in substations, transformer units and/or compensation coils, protection and automation systems, controlmonitoring (SCC) systems, direct current and alternating current service facilities, fire prevention and extinguishing installations, communication/telecommunication systems, affecting the health and safety of personnel, releases/discharges of harmful substances environment (smoke, SF6, oil, fuels, etc.).

The Company does not only treat the consequences of events that might occur but applies reactive management, implementing measures meant to mitigate risk occurrence.

At the same time periodical reviews of risks, as provided by standards, lead to resource re-allocation in accordance with changed classifications and, implicitly, changed priorities.

Transelectrica pays proper importance to analysing the risk environment and timely detection of possible risks that might occur in the future, which should be approached in due time.

Throughout Q1 2022 the Company did not find it impossible to comply with its financial obligations.

At the same time, the Company pays attention to the efficient management of the treasury by maintaining sufficient liquid resources to be able to meet its obligations as they mature, as well as the availability of financing through active credit facilities.

The current situation of wholesale electricity prices continues to maintain the same trend started in 2021 when the average price of energy purchased on DAM was 4 times higher than the similar period of 2020, significantly exceeding the values recorded in recent years.

In this context, the Company faces in some periods a lack of cash caused by accelerated price increases on both the Day-Ahead Market and the Intraday Market to achieve an OTC coverage as close as possible to the delivery time.

To tackle this situation, Transelectrica used short-term financing by contracting loans as revolving credit lines.

Thus, there are no risks and uncertainties for the next months of the financial year 2022, other than those presented above, which would affect the Company's liquidity.

Operational data

ENERGY BALANCE WITHIN SEN

Analyzing the evolution of the components of the energy balance, in the period January - March 2022, there were decreases in net internal consumption¹ and net electricity output, by 4% and 7% compared to the same period of the previous year.

Physical exporting cross-border exchanges increased by 4% in Q1 2022 compared to Q1 2021, and cross-border import flows increased by 42%.

GENERATION MIX

Regarding the generation mix, in the period January - March 2022 compared to the similar period of 2021, there was a decrease of the Thermal component by 5% and the Hydro component by 30%. Increases were recorded from the Nuclear component, in a percentage of 5% and from Renewable sources in a percentage of 20%.

Examining the shares of net output mix components for the period January - March 2022, it is observed that the largest share, 36%, is represented by the Thermal component followed by the Hydro component 24%, and the energy produced from renewable and nuclear sources has a share of approximately 21% and 20% respectively.

NATIONAL GENERATION FLEET

The installed capacity in thermal power plants decreased by about 22%, from 7,627 MW installed on March 31, 2021, to 5,966 MW installed on March 31, 2022.

The installed capacity for the period January - March 2022 versus January - March 2021, is shown in the following graphs:

Installed capacity Q1 2022 (18,569 MW, gross)

Installed capacity Q1 2021 (20,226 MW, gross)

¹ Values do not include the consumption of auxiliary services from electricity generating plants; the net consumption value includes the losses of transmission and distribution networks as well as the consumption of pumps from pumping storage hydropower substations

In the first quarter of 2022, electricity demand at SEN level decreased in all three months, with values between 0.16% in January and 5.04% in February, respectively.

The first quarter of 2022 ended with a decrease in consumption, which was influenced on the one hand by the increase in prices for primary fuels, a phenomenon that was reflected in the final price of electricity, and on the other hand, the average temperatures in January and February recorded positive anomalies, being above the climatological norms. Production also decreased by 7.18%.

CROSS-BORDER FLOWS

The distribution of physical import/export flows on the interconnection lines between January and March 2022 compared to January - March 2021 is as follows:

exports on the Bulgarian, Hungarian and Ukrainian borders decreased and increased on the border with Serbia and Moldova, and imports increased on the border with Bulgaria, Hungary and Ukraine and decreased on the border with Serbia.

Specifically, compared to the period January - March 2021, physical export flows decreased with Bulgaria (- 19% -104 GWh), Hungary (-65% - 134 GWh) and Ukraine (-82% - 132 GWh) and increased on the border with Serbia (+413 GWh) and Moldova (+ 132GWh), at the same time as the increase in physical import flows on the interconnection lines with Bulgaria (+443 GWh), Hungary (+ 35% +106 GWh) and Ukraine ( + 72% +226 GWh), and decrease on Serbia (-80% -223GWh).

The physical import and export flows across each border are as follows:

Between January and March 2022, the total allocated capacity on the interconnection lines for export increased significantly compared to the same period of 2021 to Serbia.

Trade in the first quarter of 2022 includes the amount of imported and exported electricity as a result of the Company's participation as an operational member in the European Imbalance Netting (IGCC) platform, as of December 17, 2021.

Usage rate of total allocated capacity (%)

The usage rate of total capacity rights on one border and one direction represents the ratio, expressed in percentage points, between the electricity associated to achieved (notified) commercial exchanges during one month and the electricity corresponding to the total capacity rights.

Compared to the first quarter of 2021, there was an increase in the allocated capacity to imports, respectively an increase of 15% in trade in imports, a decrease of 67% in trade in exports and 97% of transited energy, against the background of a much lower hydraulicity compared to last year and in the conditions of a lower internal consumption of electricity compared to the similar period of 2021.

Transelectrica, as a Transmission System Operator, invests in increasing interconnection capacities in the context of alignment with European requirements, as follows:

From 1 June 2021, a new set of common rules for the settlement of planned energy exchanges and unplanned energy exchanges applies (FSKAR calculation methodology - Financial Settlement of k△f, ACE and Ramping Period) which provides carrying out a financial settlement between the Transmission System Operators and the System, thus eliminating the in-kind compensations determined according to the ENTSO-E methodology by the Settlement Centers in Brauweiler (Germany) and Laufenburg (Switzerland), which the Company trades on the Day-Ahead Market.

The respective Settlement Centers will transmit the results to each Transmission System Operator in the form of daily files containing the intended exchanges and unintentional exchanges (quantities - prices) calculated for the respective Transmission System Operator, on each settlement interval.

The price set is the weighted average of the prices for trading on the Day-Ahead Markets in all ENTSO-E Member States, the prices being in Euro/MWh.

The costs and revenues highlighted in the invoice received from JAO regarding the settlement of energy related to unintentional exchanges will be included in the settlement calculation from the Balancing Market, in accordance with the provisions of ANRE Order no. 33/2021, regarding the amendment and completion of the Regulation for the calculation and settlement of imbalances of the parties responsible for balancing single imbalance price, approved by ANRE Order no. 213/2020.

Revenue and expenditure on intentional energy exchanges (FSKAR-FCP-EU) and unintentional energy exchanges (FSKAR-EU) are recorded on the indicators of balancing market revenues and balancing market expenditures, taking into account settlement of energy market imbalances, with intentional and unintended trade being integrated into the balancing market settlement mechanism;

As of January 1, 2022, the European platform, International Grid Control Cooperation (IGCC)/IN Platform (Imbalance Netting) for the process of compensating for imbalances between all TSOs, which performs the automatic frequency restoration process under Part IV of Regulation (EU) 2017/1485.

It should be noted that the International Grid Control Cooperation (IGCC) is the project that was chosen in 2016 by ENTSO-E to become the future European platform for the process of offsetting imbalances, as defined in Regulation (EU) 2017 / 1485 of the Commission of 2 August 2017 establishing a guideline on the operation of the electricity transmission system (art. 22).

The IGCC initiative was launched in 2010 by German operators and later extended to Central European systems, as a way of optimizing the secondary frequency control, by reducing the counter-actions of member operators' regulators, resulting in thus an optimized use of the system reserve "Automatic Frequency Restoration Reserve" of the aFRR, overall.

ONE'S OWN TECHNOLOGICAL CONSUMPTION

Compared to the first quarter of 2021, in the first quarter of 2022 OTC in RET decreased by approx. 19%, and the percentage OTC decreased from 2.81% to 2.28%.

The factors that significantly influenced the OTC between January and March 2022, such as precipitation and the distribution of cross-border physical flows, are not under the control of Transelectrica.

OTC DEVELOPMENT FACTORS

In January 2022 the OTC decreased by 7.3% compared to January 2021, mainly due to the better distribution of physical flows on the interconnection lines, which led to a reduction in electricity transmission at long distance from sources, but also favorable weather conditions, characterized by lower rainfall, which led to lower corona losses.

The percentage of losses compared to the electricity input into RET outline decreased from 2.94% in January 2021 to 2.42% in January 2022. The electricity input into the outline increased by 3.6% in January 2022 (141 GWh) compared to for the same period in 2021, as a result of an increase of 3.2% (100.3 GWh) in energy received from producers connected to RET and 10.1% (46.6 GWh) in energy received from imports, against the background of the decrease by 1.8% (5.9 GWh) of the one received from RED.

In February 2022, OTC decreased by 26.7% compared to February 2021, mainly due to the more advantageous distribution of physical flows on the interconnection lines and the favorable distribution of production, which led to a reduction in electricity transmission at long distance from sources, but also from the favorable meteorological conditions, characterized by lower precipitation, which determined lower corona losses.

The percentage of losses related to the electricity input into RET outline decreased from 2.93% in February 2021 to 2.04% in February 2022. The electricity input into the outline decreased by 2.8% (100.8 GWh) in February 2022 compared to the similar period of 2021, against the background of the decrease of the energy received from the producers connected directly to RET by 7.4% (220.3 GWh) and of the one from RED by 7.3% (17.1 GWh), amid the increase in energy received from imports by 33.3% (106.7 GWh).

In March 2022, OTC increased by 0.8% compared to March 2021, mainly due to the more unfavorable distribution of physical flows on the interconnection lines in the south of the country, which led to an increase in electricity transmission at long distance from sources.

The percentage of losses related to the electricity input into RET outline decreased from 2.57% in March 2021 to 2.36% in March 2022. The electricity input into the outline decreased by 2.8% (106 GWh) in March 2022 compared to similar period in 2021, against the background of the decrease of the energy received from the producers connected directly to RET by 13.4% (406.1 GWh) and of the one received from RED by 21.1% (69.5 GWh), amid the energy increase received from imports by 83.8% (369.7 GWh). The amount of precipitation was lower, which led to lower corona losses.

Pag | 19 In conclusion, over the whole of the first quarter of 2022, OTC in RET decreased by about 19.4% compared to the same period in the first quarter of 2021, due to the more advantageous distribution of physical flows on the interconnection lines in the first two months and favorable weather conditions throughout the period, which led to lower corona losses. Compared to the energy input into the outline, the losses decreased from 2.81% to 2.28%.

It should be noted that the values for March 2022 are preliminary.

Investments

NON-CURRENT ASSETS REGISTERED IN ACCOUNTING BOOKS

The increase in the total value of tangible assets on 31 March 2022 compared to 31 March 2021 was determined by the increase in the value of tangible assets in progress simultaneously with the recording of the depreciation of tangible assets.

The value of fixed assets registered in accounting books in Q1 2022 is RON 23.7 mn (RON 45.5 mn in the same period of 2021) decreasing by RON 21.8 mn.

The balance of tangible assets in progress on March 31, 2022, in the amount of RON 931.5 mn, is represented by the ongoing projects, the most significant being listed below:

The 400 kV double circuit OHL Cernavodă-Stâlpu and connection in Gura Ialomiței – RON 301.6 mn;
Converting the Porțile de Fier Reșița Timișoara Săcălaz - Arad axis to 400 kV, stage I - the 400 kV simple circuit OHL Porțile de Fier - (Anina) – Reșița – RON 98.2 mn;
Connecting the 400 kV OHL Isaccea Varna and OHL Isaccea - Dobrudja in the 400 kV substation Medgidia Sud – RON 59.4 mn;
Refurbishing 220/110 kV Hăşdat substation RON 53.7 mn;
Connecting to RET the 300 MW Ivești WPP, the 88 MW WPP Fălciu 1 and 18 MW WPP Fălciu 2 through the new (400)/220/110 kV Banca substation – RON 46.9 mn;
Installing the 400 MVA, 400/231/22 kV AT2 and related bays in substation Iernut; upgrading the command control system of the 400/220/110/6 kV substation Iernut – RON 23.8 mn;
Upgrading 400 (220)/110/20 kV Munteni substation RON 31.7 mn;
Upgrading 220/110/20 kV Răureni substation RON 25.5 mn;
Refurbishing 220/110 kV Iaz substation RON 23.5 mn;
Upgrading 220/110 kV Dumbrava substation RON 21.2 mn;
400 kV d.c. OHL Gutinaș Smârdan RON 18.9 mn;
Upgrading 220/110/20 kV Arefu substation RON 17.9 mn;
Extension of 400 kV Gura Ialomiţei substation with two bays: 400 kV OHL Cernavodă 2 and 3 – RON 15.4 mn;
Refurbishing 400/110/20 kV Smârdan substation RON 14.5 mn;
110 kV, 220 kV and 400 kV mobile bays RON 14.3 mn;
Refurbishing 110 kV Medgidia Sud substation RON 13.7 mn;
Extending the 400 kV substation Cernavodă, stage I+II, replacing 2 shunt reactors, connecting new lines – RON 12.2 mn;
Converting the Porțile de Fier Reșița Timișoara Săcălaz - Arad axis to 400 kV - Stage I - 400/220/110 kV Reşiţa substation – RON 11 mn.

PROCUREMENT OF ASSETS

The procurements of tangible and intangible assets in Q1 2022 amounted to RON 91.3 mn, a lower amount compared to the same period of 2021 when procurements were of RON 111.9 mn.

In Q1 2022 there was an increase in the value of tangible fixed assets in progress mainly represented by the execution of investment works in high voltage power stations and lines, as follows:

400 kV d.c. OHL Gutinaș Smârdan RON 18.9 mn;
Installing the 400 MVA, 400/231/22 kV AT2 and related bays in substation Iernut; upgrading the command control system of the 400/220/110/6 kV substation Iernut – RON 10.2 mn;
Refurbishing 220/110 kV Iaz substation RON 7.4 mn;
The 400 kV double circuit OHL Cernavodă-Stâlpu and connection in Gura Ialomiței – RON 7 mn;
Converting the Porțile de Fier Reșița Timișoara Săcălaz - Arad axis to 400 kV, stage I - the 400 kV simple circuit OHL Porțile de Fier - (Anina) – Reșița – RON 5.5 mn;
Upgrading power supply at UNO-DEN headquarters RON 3.7 mn;
Connecting the 400 kV OHL Isaccea Varna and OHL Isaccea - Dobrudja in the 400 kV substation Medgidia Sud – RON 2.7 mn;
Pag | 21 Extension of 400 kV Gura Ialomiţei substation with two bays: 400 kV OHL Cernavoda 2 and 3 – RON 2.6 mn;
Upgrading 220/110 kV Dumbrava substation RON 2.5 mn;
Refurbishing 220/110/20 kV Ungheni substation RON 2.5 mn;
Refurbishing 220/110/20 kV Baru Mare substation RON 2.2 mn.

In Q1 2022, the greatest transfers from tangible assets in progress to tangible assets, amounting to RON 23.7 mn, are represented mainly by the commissioning of investment objectives as follows:

Upgrading the 110 kV & 400 (220 kV) installations of Focșani Vest substation – RON 8.3 mn;
Upgrading 110 kV Bacău Sud and Roman Nord substations of the 400 kV axis Moldavia – RON 6.9 mn;
Upgrade with a view to remove galloping on the 400 kV OHL of Bărăgan – Fetești area. Reducing galloping effects on the 400 kV OHL București Sud - Gura Ialomiței and the 400 kV OHL Cernavodă - Gura Ialomiței (circuit 2) – RON 3.7 mn;
Relocation of high voltage networks 220 kV OHL d.c. Lotru – Sibiu Sud, Lot 1 km 0+000 – km 13+170 – RON 3.3 mn;
Refurbishing 220/110 kV Turnu Severin Est substation – RON 0.8 mn.

INVESTMENT ACTIVITY on 31.03.2022

Investment expenses as of 31 March 2022 are detailed by main chapters in the annual investment plan correlated with the main chapters in the Company's Development Plan and are as follows:

No	Types of expenditures	2022	Achieved
		Investment	(thou. RON)
		Programme* (thou. RON)	3M 2022	3M 2021
	Total general (A+B)	466,933	73,146	82,586
A	Cheltuieli proprii Companiei	447,239	72,606	82,126
B	Investiţii finanţate din tarif de racordare	19,694	540	460

*2022 AIP revision A2

On March 31, 2022 the investment plan was achieved 15.7%. Compared to the achievements in Q1 2021, investment expenses made in Q1 2022 decreased by 11.43%.

COMPANY FINANCIAL INVESTMENTS

In Europe the energy sector is under change with emphasis on the transition from a prevailingly national development model of the energy sector to an European integrated coordinated development model continentalwide, enabling also tailoring to national specific features while targeting the legitimate interests of European states.

In this context the Company has affiliated to the following entities:

TSCNET
JAO
SEE RSC

TSCNET (TSCNET Services GmbH)

It was established to serve the Transmission System Operators (TSO) of eastern-central-western European part (CORE region) in view of coordinated implementation of European network codes. Affiliation means participating to the shareholders of TSCNET by purchasing company shares.

Decision 9 of SEGA of 05 June 2018 approved Company affiliation to the Security Coordinating Centre of CORE region, TSCNET by participating to its share capital with 470,500 Euro (1 share – 2.500 EUR).

JAO (Joint Allocation Office)

Beginning with 2019 bids allocating long-term capacities have been performed in coordinated manner by JAO, which was nominated Operator of the Single Allocation Platform (SAP).

Transelectrica was invited by JAO to become part of its shareholders.

Decision 10 of SEGA of 20 August 2018 approved the Company's affiliation to the Joint Allocation Office (JAO) by cash subscription of 259,325 Euro, being allotted 50 shares.

SEE RSC (Centre Coordinating the Electricity Network of South-Eastern Europe)

Through the Romanian – Bulgarian border Romania is part of the coordinated calculation region of cross-border transfer capacities South-East Europe (SEE). In terms of regional coordination of operational safety services, this region will be served by an independent legal entity exercising the part of regional operational safety coordination centre (further called SEE RSC).

Pag | 22 The Company's affiliation to the shareholders of SEE RSC became effective on 22.05.2020 by cash subscription of 50,000 Euro, being allotted 50,000 shares.

On February 25, 2022, the Shareholders' Extraordinary

General Assembly approved the Company's exit from Selene CC shareholding, with the full recovery of the capital invested by the Company so far (50,000 Euro).

Significant events

JANUARY - MARCH 2022

Joint integration tests and the new launch date of the Core Flow-Based Market Coupling project

The project parties involved in the Core Flow-Based Market Coupling project have reported that the first phase of Full Integration Testing (FIT) has been successfully completed on January 13, 2022.

FIT testing focused on the functionality of all systems involved in the FB MC process and between them, proved that the solution is able to perform the FB MC process.

Execution of Civil Sentence no. 3982/08.10.2018 of the Bucharest Court of Appeal

Following the sentence of the Bucharest Court of Appeal, of ANRE Decision no. 167/16.02.2022 and of the ANRE Document 29104/17.02.2022, the following are established:

The regulated purchase price of the technological system services provided by Hidroelectrica for Transelectrica, recalculated for the past periods is:

01.07.2015 30.06.2016 amounting to RON 676.67/hour-group and
01.07.2016 30.06.2017 amounting to RON 713.42/hour-group.

The price difference resulting from the prices approved by ANRE through Decisions 1377/25.06.2015 and 1035/22.06.2016 related to Decision 167/16.02.2022 amounts to RON 21,340,716, according to ANRE specifications, detailed below:

Item name	M.U.	ANRE Decision no. 1377/2015	ANRE Decision no. 1035/2015
TSS-RE supply recalculated regulated price	RON/hour group	686.67	713.42
TSS-RE supply regulated price approved in the previous decision	RON/hour group	86.85	101.91
Difference to be recovered TSS-RE supply regulated price	RON/hour group	589.82	611.51
Number of TSS-RE supply hours	hour group	17,074	18,430
Difference to be recovered	RON	10,070,587	11,270,129
Total difference to be recovered (Decision no.1377/2015 and Decision no. 1035/2015)		RON 21,340,716

Transelectrica, will pay to Hidroelectrica the total amount mentioned until 31.12.2022, and will fully recover the amount of RON 21,340,716, through the regulated tariff for system services, in the next tariff period.

Agreement for EIB advisory services

In order to improve the management processes of investment projects by removing existing obstacles and streamlining activities, the Company has signed a free support service agreement with the European Investment Bank (EIB), with the aim of conducting an indepth analysis of the Company's internal processes.

This support also aims to expand access to a base of national and international contractors, who until now and for reasons to be identified have not collaborated with Transelectrica.

Convening the Shareholders' Ordinary and Extraordinary General Assembly

The Company's Directorate convened on February 25, 2022 the Shareholders' Ordinary and Extraordinary General Assembly with the following main items on the agenda:

Establishing the Investment Programme for the financial year 2022 and the estimates for 2023 and 2024
Approval of the 2022 Income and Expense Budget as well as estimates for 2023 and 2024
Approval of the Company's exit from the shareholding of the regional center for the coordination of the operational safety of power systems in South-Eastern Europe - Selene CC.
TSOs in Continental Europe are fully engaged in synchronization with the power systems of Ukraine and Moldova

At the meeting of the Energy Council on 28 February 2022, Member States stressed the importance of the possibility of urgently synchronizing the Ukrainian electricity network with the electricity network of Continental Europe and the need to consider the impact on the Republic of Moldova.

TSOs in Continental Europe focus on identifying the key conditions needed to support Ukraine's electricity supply as a matter of priority and are committed to responding positively to the request and have analysed the conditions for emergency synchronization, at the same time ensuring the security of the supply system in Continental Europe. ( www.entsoe.eu).

The Republic of Moldova and Ukraine have completed the process of synchronization with the European energy network ENTSO-E

On 11 March, the Continental Europe TSOs concluded that the conditions for the emergency synchronization of the Moldovan-Ukrainian electricity systems with that of Continental Europe had been met and completed the technical procedures for connecting the networks on 16 March 2022.

Throughout the process, the TSOs of Continental Europe receive support from the European Commission, the Member States and the regulators. ( www.entsoe.eu).

Extension of mandates and changes in the management bodies' membership

In accordance with its statutory and legal responsibilities, the Supervisory Board decided in the meeting of March 23, 2022, regarding the termination by the expiration on time (24.04.2022) of the mandates of provisional Directorate members Mr. Gabriel ANDRONACHE, Ștefăniță MUNTEANU, Cătălin Constantin NADOLU, Marius-Viorel STANCIU and Florin Cristian TĂTARU, the following:

the extension, based on the conditions of art. 64² of GEO no. 109/2011 on the corporate governance of public enterprises with later amendments and additions, with 2 months starting with 25.04.2022, of the mandates of the following provisional Directorate members:
- Gabriel ANDRONACHE,
- Ştefăniţă MUNTEANU,
- Cătălin-Constantin NADOLU and
- Florin-Cristian TĂTARU.
the appointment as Directorate member, based on the conditions of art. 64² of GEO no. 109/2011 on the corporate governance of public enterprises with later amendments and additions, for a term of 2 months starting with 25.04.2022, of Mr. Bogdan TONCESCU, this appointment becoming effective under the condition of express acceptance of the mandate of NPG Co.Transelectrica SA Directorate member.
for April 25 June 24, 2022, Directorate chairman, alternatively called Executive Director General or Chief Executive Officer – "CEO" of National Power Grid Company Transelectrica SA, was appointed Mr. Gabriel ANDRONACHE, in accordance with the provisions of art. 23 para. (1) of the Articles of Association of National Power Grid Company Transelectrica SA.

Presentation of the annual financial results 2021

The presentation of the 2021financial results took place on March 25, 2022. The teleconference started at 12:00 (Romanian time).

Regulated tariffs applicable from April 1, 2022

On 28.03.2022, ANRE Order no. 33/23.03.2022 was published in the Official Gazette no. 299/28.03.2022, regarding the change of the transmission service average tariff, of the components of the transmission tariff for electricity injection into the grid (TG) and for taking out electricity from the grid (TL), charged by the Company. Therefore, the regulated tariffs related to the electricity transmission service, applicable from April 1, 2022, are:

Service	Applied tariff from 01 January 2022	Applied tariff from 01 April 2022	Variation
	RON/MWh	RON/MWh	%
Transmission service average tariff, of which	23.96	28.10	+17.3%
Transmission tariff – electricity injection into the grid – (TG)	1.49	2.53	+69.8%
Transmission tariff – componenta de taking out electricity from the grid – (TL)	22.47	25.57	+13.8%

LATER EVENTS

Major indirect holdings of NN Group N.V. (over 5% of TEL's share capital)

The percentage held, in concert, on April 11, 2022 by NN Group N.V., is 5.62% of the Company's share capital.

Decision no. 3 of the Shareholders' Ordinary General Assembly of April 18, 2022

On April 18, 2022, the Shareholders' Ordinary General Assembly approved the appointment, starting with April 22, 2022 and until August 21, 2022, of the following Supervisory Board members with a mandate of four months:

Mrs. Oana-Cristina BALACCIU; Mr. Adrian-Nicolae BLĂJAN; Mr. Cătălin-Andrei DASCĂL; Mr. Victor- Florin DUMITRIU; Mr. Dumitru Virgil ORLANDEA; Mr. Costin-Mihai PĂUN; Mr. Alexandru-Cristian VASILESCU.

At the same time, it established the Supervisory Board members' remuneration as being calculated according to art. 8 of GEO no. 109/2011, approved with modifications and additions by Law no. 111/2016 and approved the mandate contract form to be concluded with the Supervisory Board members and the power of attorney of the person who will sign on behalf of the Company the mandate contracts of the Supervisory Board members.

Decision no. 4 of the Shareholders' Ordinary General Assembly of April 28, 2022

On April 28, 2022, SOGA approved:

The stand-alone financial statements of National Power Grid Company Transelectrica SA for the financial year 2021;
Consolidated financial statements of National Power Grid Company Transelectrica SA for the financial year 2021;
The distribution of the accounting profit remaining after the deduction of the income tax on 31.12.2021;
Establishing the reserves related to the revenues achieved from the allocation of transmission capacity on the interconnection lines in 2021, from the excess achieved from the taxable and non-taxable revaluation reserves upon change of destination;
Discharge of the Directorate members and the Supervisory Board members for the financial year 2021.

Convening the Shareholders' Extraordinary General Assembly

The Company's Directorate convened on May 16, 2022 SEGA, with the following agenda:

Approval of the completion of the object of activity of the Company with the activities codified according to CANE: 3511 Electricity production and the corresponding modification of the Articles of Association by adding in art. 6 let. B of the following wording: "Electricity production (exclusively for the Company's own consumption) - the activity of electricity generating installations; including thermal, nuclear, hydroelectric, gas turbine, diesel and recoverable energy plants - CAEN code 3511".
Approval of the relocation of the registered office of the Company from Bucharest, Blvd. G-ral Gheorghe Magheru no. 33, in Bucharest 1, 2-4 Olteni Street, Bucharest 3, "Platinum Center" Building and the corresponding amendment to Article 3 paragraph (1) of the Articles of Associatrion, the new wording being as follows:

"(1)" Transelectrica "has its main headquarters in Romania, Bucharest Municipality, 2-4 Olteni Street, district 3, the "Platinum Center" Building and the secondary headquarters in Blvd. Hristo Botev no. 16 - 18, district 3."

The CARMEN Smart Grid Project has officially become a Project of Common Interest of the European Union

The Carpathian Modernized Energy Network (CARMEN) Smart Grid project, developed by Delgaz Grid SA and NPG Co. Transelectrica SA in partnership with the Hungarian transmission operator, MAVIR Magyar Villamosenergia-ipari Átviteli Rendszerirányító ZRt, received final approval from the European Union, being included on the fifth list of Energy Projects of Common Interest (PCI).

Projects of Common Interest are key cross-border energy infrastructure projects for building a more integrated and resilient European internal energy market and pursuing energy and climate goals.

The current PCI List includes 98 projects: 67 projects in the field of electricity transmission and storage, 20 in the field of natural gas, 6 projects in CO2 networks and 5 projects in smart grids.

The CARMEN project has a value of approximately 150 mn EUR, the application for funding will be submitted in the second half of 2022.

The implementation will take place over a period of 6 years, starting with the year 2023 and until 2028.

Appointment of Chairman and Advisory Committees within the Supervisory Board

On May 3, 2022, the Supervisory Board elected Mr. Cătălin-Andrei DASCĂL as SB Chairman and appointed the members of the advisory committees of the Supervisory Board as follows:

Nomination and Remuneration Committee:
- Alexandru-Cristian VASILESCU chairman
- Oana-Cristina BALACCIU
- Costin-Mihai PĂUN
- Dumitru Virgil ORLANDEA
- Cătălin-Andrei DASCĂL.
Audit Committee:
Oana-Cristina BALACCIU chairman
Adrian-Nicolae BLĂJAN
Victor- Florin DUMITRIU
Cătălin-Andrei DASCĂL
Costin-Mihai PĂUN.
Energy Security Committee:
- Costin-Mihai PĂUN chairman
- Alexandru-Cristian VASILESCU
- Victor- Florin DUMITRIU
- Adrian-Nicolae BLĂJAN
- Dumitru Virgil ORLANDEA.

SHAREHOLDER STRUCTURE

The structure of Company shareholders on 31.03.2022 was the following:

Shareholder name	No. of shares	Shares in total
Romanian State - GSG	43,020,309	58.7%
PAVĂL Holding	4,753,567	6.5%
Privately Managed Pension Fund NN	4,007,688	5.5%
Other shareholders – legal persons	16,147,255	22.3%
Other shareholders – natural persons	5,374,323	7.3%
Total	73,303,142	100%

TARIFFS

Transmission tariff (transmission service + functional system service)

In accordance with the Methodology establishing tariffs of electricity transmission services approved by ANRE President Order no. 171/2019, with later amendments and additions brought by ANRE Order no. 153/2020, establishing the determining method of regulated revenues and the calculation of regulated tariffs for electricity transmission services, which also include a component for the functional system service.

COMPONENȚA DIRECTORATULUI

On the date of this report Directorate membership is the following:

Gabriel ANDRONACHE	Directorate Chairman
Ștefăniță MUNTEANU	Directorate Member
Cătălin-Constantin NADOLU	Directorate Member
Bogdan TONCESCU	Directorate Member
Florin-Cristian TĂTARU	Directorate Member

In view of the above, the table below shows:

the average tariff for the electricity transmission service, with the related component:
- electricity injection into the grid (TG);
- taking out electricity from the grid (TL),

with effect from January 1, 2022, according to ANRE Order no. 124/24.11.2021.

Tariff	m.u.	Applied tariff 1 Jan – 31 Dec 2021	Applied tariff 1 Jan – 31 Mar 2022	Difference (%)
Average electricity transmission tariff	RON/MWh	20.55	23.96	16.59%
Transmission tariff – electricity injection into the grid	RON/MWh	1.30	1.49	14.62%
Transmission tariff – taking out electricity from the grid	RON/MWh	19.22	22.47	16.91%

When establishing the tariffs presented in the table above, the results of the annual corrections for 2020 (expost corrections), calculated separately for the regulated activities of transmission and functional system services due to the fact that in 2020 different Tariff Methodologies were applied and, consequently, separate tariffs for these activities.

Thus, the correction factors for the closing of 2020, which had a significant contribution to the change in tariffs presented in the table above, are detailed as follows:

Corrections related to the transmission service

a) The correction related to the differences in the amounts of extracted electricity and the purchase price of OTC. The correction value is – RON 30,395,017.
b) The correction related to the income obtained from the application of the electricity transmission tariff. The correction value is + RON 36,417,075.

The correction related to the revenue obtained from the tariff was calculated as: the difference between the regulated income approved for 2020 adjusted with the difference of the correction applied to the tariff from 1 January 2021 for 1–15 January 2021 to reflect the reduction of TSO contribution to ANRE budget that was not considered on January 1, 2021 (on January 1, 2021 the contribution was calculated at the level of 1% starting with January 1, 2021) and the income achieved in 2020.

c) The difference between the percentage values related to the inflation for 2020, communicated by the National Forecast Commission within the 2019 Autumn Forecast vs. 2021 Spring forecast. The correction value is – RON 9,133,135.

NFC – Autumn forecast 2019	NFC – Spring forecast 2021
2020	2020
3%	2.06%

d) Correction related to uncontrollable operating and maintenance costs. The correction value is + RON 3,816,197.
e) Correction related to electricity transmission between TSOs. The correction value is – RON 5,177,692.
- Corrections related to the functional system service

The corrections related to the functional system service for 2020 amounted to +RON 14,545,122 and were made in accordance with the provisions of the Methodology for establishing the system service tariffs, approved by ANRE Order no. 45/2017, applicable to the functional system service for 2020.

Tariff	m.u.	Applied tariff 1 Mar - 31 Dec 2021	Applied tariff 1 Jan – 31 Dec 2022	Difference (%)
System service	RON/MWh	10.82	9.32	-13.86%

In accordance with the provisions of the Methodology for establishing the system service tariffs, approved by the Order of the National Energy Regulatory Authority President no. 45/2017, with later amendments and additions, when determining the regulated income and the system service tariff for 2022 (presented in the table above), the following were taken into account:

Corrections:

a) The second tranche of the correction determined upon the approval of the tariff valid from March 1, 2021 and recalculated taking into account the inflation rates achieved, amounting to – RON 56,414,653;
b) Income from penalties amounting to RON 1,200,000.

Scenarios:

a) For the acquisition of the secondary control reserve (power surge), the quantities requested by TEL were considered. At the same time, the used price was updated to RON 75.80 lei/hMW, in accordance with TEL request, representing the weighted average price for March - September 2021;
b) The required quantities were not considered for the purchase of the secondary control reserve (power reduction), considering that the need for the secondary control from the previous tariff periods

(achieved values) is around 3,900,000 hMW, and the amount of secondary control reserve (power surge) was considered at the level of 3,828,000 hMW;

c) For the acquisition of fast tertiary reserve (power surge), the required quantities were considered. At the same time, the used price was updated to RON 46.96/hMW, in accordance with TEL request, representing the weighted average price for March - September 2021;
d) For the acquisition of fast tertiary reserve (power reduction), the required quantities were considered. At the same time, the used price was updated to RON 12.33/hMW, in accordance with TEL request, representing the weighted average price for March - September 2021;
e) For the acquisition of reactive electricity, the requested quantities and the price of RON 199.68/hour-group were considered, price approved by ANRE Decision no. 1078/29.06.2020;

DISPUTES

The most important disputes impacting the Company are provided further: Note: To facilitate reading and understanding, all amounts of this chapter are expressed in RON (Lei)/EURO.

ROMENERGY INDUSTRY

The object of the file no. 2088/107/2016 is "Bankruptcy - Application for registration in the bankruptcy mass".

Transelectrica applied for registration in the credit table with the amount of 16 mn lei. The claim was admitted and entered in the Preliminary Table.

The deadline was set at 16.05.2022, for the continuation of the bankruptcy procedure, by capitalizing the goods and recovering the receivables.

RAAN

The object of the file no. 9089/101/2013/a140 is an action in claims / appeal against the Supplementary Table of claims against the debtor RAAN.

Observations: As a result of the registration in part of the total amount requested by Transelectrica in the amount of 89,360,986.06 lei and of the address no. 4162 / 03.10.2016, by which the judicial liquidator communicates the fact that only the amount of 11,264,777.30 lei was entered in the supplementary table in the category of claims that resulted from the continuation of the debtor's activity, and the amount of 78,096,208.76 lei was rejected, an appeal was filed within the legal deadline at the Supplementary Table of Claims.

At the trial date of 14.02.2019, it was ordered to connect the file no. 9089/101/2013/a152 to the file no. 9089/101/2013 / a140 (having as object claims request for payment).

Solution Decision 163 / 20.06.2019: Admits the exception of forfeiture. It admits in part the main action as well as the related appeal. Obliges the defendant to pay to the plaintiff the amount of 16,950,117.14 lei, a claim born during the procedure, ordering its registration in the table of creditors constituted against the debtor RAAN with this amount. Otherwise, reject the related claims.

Transelectrica filed an appeal within the legal deadline. The appeal was dismissed as unfounded. Transelectrica has filed a request for review for the contrary of the decisions, which is registered under no. 1711/54/2019 and which will be tried at the High Court of Cassation and Justice. The exceptions of lateness and inadmissibility were discussed. ICCJ solution: admits the exception of late request for revision. The next deadline is 02.06.2022.

There are also other cases between RAAN and Transelectrica in various stages of the trial. RAAN actions against NPG Transelectrica SA deriving from contract no. C137 / 08.04.2011.

File no. 3694/3/2016 - Claims 15,698,721.88 lei. Judgment period on 08.11.2021: the case was suspended until the final settlement of Cases no. 26024/3/2015 and no. 28458/3/2017.

File no. 24206/3/2015 - Transelectrica requested the court to find the legal compensation of the amount of 16,896,664 lei. An appeal was declared, which was rejected as unfounded by the ICCJ on December 9, 2021.

File no. 26024/3/2015 - The object of the file: the obligation of the subscriber to pay the amount of 10,048,628.86 lei. ICCJ solution from 01.03.2022: Admits the appeal declared by RAAN and sends the case to a new trial at CAB.

File no. 28458/3/2017 - The object of the file: the obligation of the subscriber to pay the total amount of 2,106,843 lei. ICCJ solution: Rejects as unfounded the appeal declared by the Company against the civil decision no. 825/2021 of May 12, 2021 pronounced by CAB. final

File no. 28460/3/2017 - The object of the file: the obligation of the subscriber to pay the total amount of 12,346,063 lei. CAB solution 27.09.2021: Suspends the trial of the appeal until the final settlement of the files no. 28458/3/2017, no. 26024/3/2015.

CET Govora

File no. 2428/2/2014 - through the appeal that is the object of the introductory request, the plaintiff CET Govora requests the annulment of the Decision of the President of ANRE no. 738 / 28.03.2014, and by the Clarification submitted on 29.10.2014 requested that, in case of admission of the appeal, to order the refund of the amounts of money withheld by the administrator of the support scheme, NPG Transelectrica SA, in execution of the overcompensation decision, for the recovery of the amount of 53,742,755 lei.

By the Meeting Notes registered in the file on 13.10.2021, respectively from 04.01.2022, the plaintiff CET Govora SA requests the admission of the request for clarification of the action submitted for the term of 29.10.2014, indicating that the amount extinguished by compensation with the reciprocal receivables between

CET Govora SA and NPG Transelectrica SA is in the amount of 40,507,668.67 lei.

Transelectrica was brought into the case, as a forced intervener, by the close of the hearing on 18.10.2021.

By the request for accessory intervention in the interest of CET Govora SA, Valcea County - Valcea County Council requests the admission of the action formulated by CET Govora and the annulment of the Decision of the President of ANRE no. 738 / 28.03.2014, considering that this is unmotivated, being an illegal act. The ruling is postponed to 13.05.2022.

RESITA CITY

File no. 2494/115/2018**, registered with the Caraş Severin Tribunal.

Object of the file: By the request for summons, the plaintiff Resita Municipality requests the obligation of the defendant Transelectrica SA to pay the following amounts: 2,129,765.86 lei, representing the rent for the land area temporarily occupied from the forest fund for 2015; 2,129,765.86 lei, representing land rent for 2016; 2,129,765.86 lei, representing land rent for 2018; penalizing legal interest from maturity to actual payment. Solution of the CS Tribunal: Suspends the trial of the summons filed by the plaintiff Resita Municipality, through the Mayor, in contradiction with the defendant Transelectrica, having as object claims, pursuant to art. 413 para. (1) pt.1 C.pr.civ. With an appeal for the duration of the suspension of the trial of the trial, at the hierarchically superior court. Document: Closing - Suspension 22.03.2021.

NAFA

File no. 8993/299/2018 by which the Company challenged the forced execution initiated on the basis of the executory title no. 13540 / 22.08.2017, which is based on the Tax Decision no. F-MC 439 / 30.06.2017 issued by NAFA - General Directorate for Administration of Large Taxpayers

Solution in brief: Admits the appellant's request for suspension of the trial. Based on art. 413 para. (1) point 1 proc. civil court suspends the trial until the final settlement of case no. 1802/2/2018, pending before the Bucharest Court of Appeal, Section VIII administrative and fiscal contentious. With an appeal for the entire duration of the suspension, the appeal request will be submitted to the court of district 1 Bucharest. Delivered in open court. Document: Closing - Suspension 17.04.2018.

File no. 1802/2/2018 - At the deadline of 20.10.2020 solution in brief: the suspended applications were partially admitted.

Decision no. 122 / 13.03.2018 was partially annulled, regarding the settlement of the appeal filed against the Tax Decision no. F-MC 439 / 30.06.2017 issued by NAFA - General Directorate for Solving Appeals and on 12.07.2017 by NAFA - The General Directorate for Administration of Large Taxpayers, but also the Fiscal Inspection Report no. F-MC 222 concluded on 30.06.2017, which was the basis for issuing the taxation decision, in the sense that:

removes the obligation to pay the profit tax in the amount of 18,522,280 lei, VAT in the amount of 5,694,636 lei and the fiscal accessories related to these main fiscal debts, in the amount of 48,436,653 lei, fiscal obligations established for the 349 fiscal invoices with special regime found lack of management of the applicant.
removes the non-deductible character when calculating the taxable profit of the amount of 27,001,727 lei, representing the technological system services invoiced by energy suppliers, considered non-deductible following the tax inspection and the obligation to pay the main and ancillary tax receivables related to this amount.
removes the non-deductible character when calculating the taxable profit of the amount of 343,629.91 lei. representing "weed removal services" and the obligation to pay the principal and ancillary tax claims in connection with this amount.
removes the non-deductible character when calculating the taxable profit of the amount of 230,685,491 lei, representing the expenses with products of promotional nature and protocol and the obligation to pay the main and accessory tax receivables in connection with this amount.
removes the non-deductible character of VAT in the amount of 46,417.1 lei, corresponding to the amount of 343,629.91 lei, representing "weed removal services" and the obligation to pay the main and accessory tax receivables in connection with this amount.
removes the non-deductible character of VAT in the amount of 37,693.88 lei related to the amount of 230,685.49 lei, representing expenses with products of a promotional and protocol nature and the obligation to pay the main and accessory tax receivables in connection with this amount.
removes the mention regarding the obligation of the Sibiu Transport Branch within NPG Transelectrica S.A. to register the amount of 576,846.80 lei as taxable income, at the latest on 30.06.2010, the date on which the registration of the verified unit at the credit table was accepted with this amount, the

mention regarding the character of taxable income when calculating the profit of the amount of 576,846.80 in accordance with the provisions of art. 19 para. 1 of Law no. 571/2003 regarding the Fiscal Code with the subsequent amendments and completions, corroborated with point 23 let. d of GD 44/2004 comprising the Methodological Norms for the application of Law no. 571/2003, the chapter regarding the profit tax, respectively chapter VII the function of the accounts from the Order no. 3055 of October 29, 2009 for the approval of the Accounting Regulations compliant with the European directives and the obligation to pay the main and ancillary tax receivables in connection with this amount.

removes from the Minutes the finding made regarding the "determination of the deductible value added tax lower than the one registered by the plaintiff, thus resulting in a difference in the amount of 13,141 lei" (annex no. 15) and the obligation to pay the main tax receivables and accessories in connection with this amount.
removes the obligation to pay late payment penalties that have a legal sanctioning regime, calculated for a period longer than 6 months from the date of starting the tax inspection, regarding the main tax obligations that were maintained by the court by this decision, as established by the Tax Decision no. F-MC 439 / 30.06.2017, issued on 12.07.2017, by NAFA - DGAMC, Tax Decision no. F-MC 439 / 30.06.2017, issued by NAFA - DGAMC and by Decision no. 122 / 13.03.2018, regarding the settlement of the appeal formulated against the Tax Decision no. F-MC 439 / 30.06.2017, issued by NAFA - General Directorate for the Settlement of Appeals.

The other provisions of the Decision no. 122 / 13.03.2018 are maintained, regarding the settlement of the appeal filed against the Tax Decision no. F-MC 439 / 30.06.2017. Otherwise, dismissed claims are rejected as unfounded.

Dismisses as unfounded the claim for costs consisting of the judicial stamp duty. Obliges the defendants, jointly and severally, to pay to the plaintiff the court costs in the amount of 4,000 lei, representing a fee for carrying out the expertise in the accounting-taxation specialty, proportionally with the admission of the request.

Transelectrica and NAFA filed an appeal in March 2022. Judgment period: 10.05.2022

CONAID COMPANY SRL

The object of the file no. 36755/3/2018 is a finding of unjustified refusal to conclude an additional act contracting RET connection C154 / 2012 and claims amounting to 17,216,093.43 lei, the damage suffered and 100,000 euros, equivalent to the estimated unrealized benefit.

Judgment period: 07.06.2022 - the expert evidence is administered.

OPCOM

File no. 22567/3/2019 - Object of the file: action in common law claims.

Obligation of the defendant OPCOM SA to pay the amount of 4,517,460 lei, related to the invoice series TEL 16 AAA no. 19533 / 29.07.2016, representing the equivalent value of VAT, related to the contribution brought by NPG Transelectrica SA to the share capital of OPCOM SA, issued based on the Loan Agreement no. 7181RO / 2003, commitment for financing the "Electricity Market Project" investment project.

Obligation of the defendant OPCOM SA to pay the amount of 1,293,778.27 lei related to the invoices TEL 19 T00 no. 17 / 28.01.2019 and TEL 19 T00 no. 131 / 10.07.2019 representing the penalizing legal interest, calculated for non-payment on time of the invoice series TEL 16 AAA no. 19533 / 29.07.2016.

Suspends the trial of the case until the final settlement of the case 31001/3/2017, having as object an action for annulment of the decision of the GMO Opcom (in which Transelectrica is not a party and in which on 01.02.2021 it was ordered to reject the declared appeals, the solution being final) .

TMB Solution Admits the prescription exception. Dismisses the action as time-barred. With the right to appeal within 30 days from the communication, which is submitted to the Bucharest Tribunal, Civil Section VI. Pronounced by making the solution available to the parties through the court registry. Document: Decision 3021 / 03.12.2021. To date, the decision in this case has not been drafted. After the drafting and communication of the Civil Sentence no. 3021 / 03.12.2021, the Company will be able to appeal against this decision.

File no. 24242/3/2021 - Bucharest Tribunal, Civil Section VI - Object of the file: The applicant OPCOM requests the finding of nullity act - contribution in kind.

Judgment period: 26.09.2022 for the administration of evidence.

GRAND VOLTAGE

The file no. 796/3/2021, registered before the Bucharest Tribunal, has as object the request for summons, by which the plaintiff Grand Voltage requests the obligation of the defendant NPG Transelectrica SA to repair the damage caused to the undersigned in the amount of 6,125,822.13 lei as following the culpable non-execution of the obligations related to the Works Contract no. C 111 / 23.05.2018 regarding "Connection of 100kV OHL Isaccea -Varna and 400 kV OHL Isaccea-Dobrujda in the 400 kV substation Medgidia Sud Stage II-OHL 400kV d.c. Medgidia Sud Station Connections ".

Judgment period: 09.05.2022 - no report of expertise.

ANRE

File no. 4921/2/2014 requesting either the modification of Order no. 51 / 26.26.2014, or the issuance of a new order, in which to recalculate the value of RRR at the level of 9.87% 1,0359, according to Transelectrica's internal analyzes) or, insofar as this request will be rejected, using the same percentage of 8.52% set by ANRE for 2013 and the first half of 2014.

On 06.10.2020, the request was rejected with the following solution in brief: the objection of inadmissibility was rejected as unfounded. The action was dismissed as unfounded. With appeal within 15 days from the communication. Pronounced by making the solution available to the parties, through the court registry. Decision 362/2020.

At the deadline of 11.01.2021, the request for completing the device is admitted. It is ordered to complete the operative part of the civil sentence no. 362 / 06.10.2020 with the solution given on the request for accessory intervention, in the sense that: the request for accessory intervention, formulated by the intervener ALRO SA in support of the defendant ANRE is admitted. With the right to appeal within 15 days from the communication, the appeal request will be submitted to the Bucharest Court of Appeal.

Transelectrica declared an appeal that will be judged on 11.05.2022. The dispute did not affect the relationship with ANRE.

COURT OF AUDIT

The object of the file with no. 1658/2/2014 is "cancellation of control documents" - Conclusion no. 7 / 20.02.2014 issued by the Court of Accounts

At the deadline of 13.06.2018, the action of the plaintiff-Transelectrica SA is admitted in part. Cancels in the conclusion part no. 7 / 20.02.2014, decision no. 37 / 9.12.2013 and the control report no. 35521 / 6.11.2012 issued by the defendant regarding the measures ordered by the decision indicated above in points I.1, I.3, I.6, I.8, I.11, II.14, II, 15, II.17, II.18, II.20, II.21, II.22 and partial measurement from point II.13 in the sense of removing the phrase "including those found in the case of facts issued by SC FLOREA ADMINSTRARE IMOBILIARĂ SRL". Dismisses the remainder of the applicant's action as unfounded. Approves the report of technical expertise on electricity prepared in the case of expert Toaxen Vasile.

Obliges the defendant to pay to the plaintiff the amount of 121,375 lei in court costs (partially the fees of experts for the judicial stamp duty). With the right to appeal within 15 days of communication. Document: Decision 2771 / 13.06.2018. Transelectrica filed an appeal on June 14, 2019.

In the public hearing of 21.10.2020, the appeals declared by the plaintiff and the defendant against the sentence no. 2771 of June 13, 2018 of the CAB - Section VIII administrative and fiscal contentious, as unfounded. Definitive.

Appeal against CCR Decision no. 8 / 27.06.2017

As a result of an audit carried out in 2017, the Court of Auditors ordered certain measures to be implemented by the Company as a result of deficiencies found during this audit. The company filed a number of 8 appeals against the measures ordered by the Romanian Court of Accounts (CCR) by Decision no. 8 / 27.06.2017, requesting their cancellation, as well as the Conclusion no. 77 / 03.08.2017, registered at the Company's registry under no. 29117 / 08.08.2017, respectively of the Control Report no.19211 / 26.05.2017. The appeals are pending before the Bucharest Court of Appeal (2 cases: file no. 6576/2/2017 regarding the annulment of the findings from points 7.1, 7.2 and 8, as well as the measure ordered in point II.10, deadline 20.01.2021, solution : the exceptions of inadmissibility, invoked by the objection, are rejected, the request is rejected, as unfounded and file no. 6581/2/2017 regarding the annulment of the findings from point 6 as well as the measure ordered in point II.9, with trial on 13.05. 2022) and on the role of the High Court of Cassation and Justice (file no. 6578/2/2017, regarding the annulment of the findings from point 9 as well as the measure ordered in point II.11, trial on 08.06.2022).

Five cases were definitively resolved, by rejecting the request for annulment by the Bucharest Court of Appeal and rejecting the appeals by the High Court of Cassation and Justice (file no. 6574/2/2017 regarding the annulment of the findings from point 5.2 as well as the measure ordered in point II.8, file no. 6577/2/2017 regarding the annulment of the findings from point 13 as well as of the measure ordered in point II.13, which became file no. 1614/1/2020, file no. 6580/2/2017 concerning the annulment of the findings in point 10 as well as the measure provided for in point II.12, the file no. 6582/2/2017 regarding the annulment of the findings from point 11 as well as the measure ordered in point I.5 and the file no.6583/2/2017 regarding the annulment of

the findings from point 5.1 as well as the measure ordered in point II.7 and II.8).

At the same time, the Company is involved in litigation with former members of the Management Board and the Supervisory Board, and for these litigations the Company has updated the provisions representing the equivalent value of the OAVTs (options for virtual shares), but also in lawsuits related to contract price adjustment claims. according to GEO no. 114/2018.

ANNEX 1: Stand-alone statement of financial position

[RON mn]	Q1 2022	2021	Δ	Δ (%)
	1	2	3=1-2	4=1/2
ASSETS
Non-current assets
Tangible assets	3,822	3,815	8	-
Assets of the usage rights for leased	28	30	(2)	(7%)
assets - buildings
Intangible assets	7	7	-	1%
Financial assets	82	82	-	-
Total non-current assets	3,939	3,933	6	-
Current assets
Inventories	42	40	2	4%
Trade and other receivables	3,443	2,996	448	15%
Cash and cash equivalents	90	252	(162)	(64%)
Income tax to be recovered	18	21	(3)	(15%)
Total current assets	3,593	3,309	284	9%
Total assets	7,532	7,242	290	4%
SHAREHOLDERS' EQUITY AND
LIABILITIES
Shareholders' Equity
Share capital, of which:	733	733	-	-
Subscribed share capital	733	733	-	-
Share premium	50	50	-	-
Legal reserves	138	138	-	-
Revaluation reserves	753	769	(17)	(2%)
Other reserves	34	31	3	11%
Retained earnings	1,659	1,634	25	2%
Total shareholders' equity	3,366	3,355	11	0%
Non-current liabilities
Long term deferred revenues	447	443	4	1%
Long term borrowings	73	79	(6)	(8%)
Other loans and assimilated debts - Non	21	23	(2)	(9%)
current building lease liabilities
Deferred tax liability	117	117	(1)	(1%)
Employee benefits liabilities	60	60	-	-
Total non-current liabilities	718	723	(5)	(1%)
Current liabilities
Trade and other liabilities	3,142	3,034	108	4%
Other loans and assimilated debts -	8	8	-	1%
Current building lease liabilities
Other tax and social security liabilities	11	14	(3)	(23%)
Short-term borrowings	216	25	191	767%
Provisions	39	52	(13)	(25%)
Short-term deferred revenues	32	32	-	1%
Total current liabilities	3,447	3,164	283	9%
Total liabilities	4,166	3,887	278	7%
Total shareholders' equity and
liabilities	7,532	7,242	290	4%

ANNEX 2: Stand-alone profit or loss statement - unaudited

[RON mn]
Indicator	Q1 2022	Q1 2021	2021	2020	Budgeted Q1 2022	Achieved Q1 2022 vs 2021	Achieved Q1 2022 vs 2021 (%)	Achieved vs Budgeted Q1 2022	Achieved vs Budgeted Q1 2022 (%)
0	1	2	3	4	5	6=1-2	7=1/2	8=1-5	9=1/5
Operating revenues
Transmission revenues	419	323	1252	1035	406	96	9%	13	3%
System services revenues	134	173	624	795	148	(39)	(5%)	(14)	(9%)
Balancing market revenues	665	220	1823	495	409	445	90%	256	63%
Other revenues	13	10	57	42	9	2	6%	3	33%
Total operating revenues	1,231	726	3,756	2,367	972	504	21%	258	27%
Operating expenses
System operating expenses	274	109	576	310	222	165	53%	51	23%
Balancing market expenses	657	212	1810	495	409	445	90%	248	61%
Technological system services expenses	121	143	610	566	142	(22)	(4%)	(20)	(14%)
Depreciation and Amortisation	63	64	274	268	68	(1)	(0%)	(5)	(7%)
Personnel expenses	61	49	244	273	67	12	4%	(7)	(10%)
Repairs and maintenance expenses	18	15	97	98	24	3	3%	(6)	(23%)
Materials and consumables	3	2	10	8	3	1	14%	(1)	(25%)
Other operating expenses	21	37	123	170	39	(15)	(9%)	(17)	(45%)
Total operating expenses	1,218	631	3,745	2,188	974	587	27%	244	25%

Operating profit	13	96	11	180	(2)	(83)	(46%)	15	n/a
Finance income	2	2	6	10	2	(0)	(1%)	(0)	(11%)
Finance expenses	4	3	15	15	2	1	4%	1	60%
Net finance result	(2)	(1)	(9)	(5)	(0)	(1)	(14%)	(2)	n/a

Profit before income tax	11	94	2	175	(3)	(84)	(48%)	13	n/a
Income tax	3	12	1	30	0	(10)	(33%)	2	n/a
Profit	8	82	0.45	145	(3)	(74)	(51%)	11	n/a

ANNEX 3: Stand-alone cash flow statement – unaudited

[RON mn]	Q1 2022	Q1 2021	Δ
Cash flows from operational activities
Profit of the period	8.03	81.97	(73.9)
Income tax expense	2.53	12.45	(9.9)
Amortisement expense	62.65	63.96	(1.3)
Expenses with adjustments for trade receivables impairment	0.48	0.41	0.1
Revenues from reversal of adjustments for trade receivables	(0.28)	(0.81)	0.5
impairment
Losses from various debtors Net expenses with adjustments for various debtors impairment	0.00 0.07	0.04 (0.24)	(0.0) 0.3
Net expenditures with adjustments for inventories impairment	0.30	0.68	(0.4)
Net profit/ loss on sale of tangible assets	0.05	0.03	0.0
Net expenditures on adjustments of value regarding tangible assets	0.00	0.30	(0.3)
Net Expenses/Income regarding provisions for risks and expenses, net	(12.76)	(15.90)	3.1
Interest expense, interest revenue and unrealised exchange rate gains	1.40	1.87	(0.5)
Cash flows before changes to working capital	62.47	144.76	(82.3)
Changes in:
Clients and assimilated accounts - energy and other activities	(704.98)	(57.72)	(647.3)
Clients – balancing	259.31	(3.79)	263.1
Clients – cogeneration	(2.54)	3.33	(5.9)
Inventories Trade and other liabilities - energy and other activities	(1.67) 453.02	1.24 (78.90)	(2.9) 531.9
Liabilities - balancing	(325.35)	(26.04)	(299.3)
Liabilities - cogeneration	4.04	(10.50)	14.5
Debts paid Tax decision NAFA	0.00	(2.14)	2.1
Other loans and assimilated debts - Building lease	0.00	(2.19)	2.2
Other taxes and social insurance liabilities	(3.34)	(5.08)	1.7
Deferred revenues	7.55	7.05	0.5
Cash flows from operational activities	(251.48)	(29.99)	(221.5)
Interests paid	(1.60)	(1.04)	(0.6)
Income tax paid	0.00	(2.51)	2.5
Net cash generated from operational activities	(253.08)	(33.55)	(219.5)
Cash flows from the investment activity
Acquisition of tangible and intangible assets	(91.30)	(111.92)	20.6
Received Interests	0.25	0.76	(0.5)
Net cash used in investments	(91.05)	(111.16)	20.1
Cash flows used in financing activities
Repayments of non-current borrowings	(5.96)	(5.87)	(0.1)
Use of cogeneration credit line	45.57	0.00	45.6
Use of working capital credit line	145.11	0.00	145.1
Building leasing payments	(2.65)	(2.61)	(0.0)
Dividends paid Net cash used for financing	(0.04) 182.04	(0.01) (8.48)	(0.0) 190.5
Net increase/(diminution) of cash and cash equivalents	(162.10)	(153.19)	(8.9)

Cash and cash equivalents on 1 January	252.23	554.00	(301.8)
Cash and cash equivalents at the end of the period	90.13	400.82	(310.7)

Indicators	Formula	Q1 2022	2021
	Current assets	1.04	1.05
Current liquidity ratio (x)	Current liabilities
Indebedtness indicators (x):
	Debt capital x 100	8.6%	3.1%
(1) Indebtedness indicator	Shareholder's equity
	Debt capital x 100	7.9%	3.0%
(2) Indebtedness indicator	Committed capital
	Average client balance* x no.days	143.24	122.21
Clients' turnover (days)	Turnover
	Turnover	0.31	0.94
Non-current assets turnover (x)	Non-current assets

ANNEX 4: Economic-financial indicators of the reporting period

* The clients contributing to the turnover (energy, balancing, other clients, and clients with invoices to issue) were taken into consideration. The values corresponding to doubtful clients, the cogeneration scheme and the overcompensation were not included in the average balance.

ANNEX 5: Amending the Company's articles of association in Q1 2022

At the time of drafting this report, there are no amended articles of association in 2022.

ANNEX 6: Appointment/recalling deeds in January-March 2022

Directorate

At the meeting of 23.03.2022, the Supervisory Board members unanimously decided to extend by two months, starting with April 25, 2022, and until June 24, 2022, the mandates of the following provisional Directorate members: Gabriel ANDRONACHE, Ștefăniță MUNTEANU, Cătălin-Constantin NADOLU, and Florin-Cristian TĂTARU.

Also, pursuant to art. 64² paragraph (1) of GEO no.109/2022 on the corporate governance of public enterprises with later amendments and additions, they appointed Mr. Bogdan TONCESCU as a provisional Directorate member for a term of two months , starting with April 25, 2022 and ending with June 24, 2022.

Supervisory Board

According to the SOGA Decision no. 3/18.04.2022, it was decided to appoint, starting with April 22, 2022 and until August 21, 2022, the following members of the Company's Supervisory Board: Oana-Cristina BALACCIU; Adrian-Nicolae BLĂJAN; Cătălin-Andrei DASCĂL; Victor-Florin DUMITRIU; Dumitru Virgil ORLANDEA; Costin-Mihai PĂUN; Alexandru-Cristian VASILESCU, with a term of four months.

ANNEX 7 REPORT (according to SEGA Decision 4/29.04.2015) on the contracts signed in Q1 2022 to procure assets, services and works, which value is above 500,000 Euro/purchase (for assets and works) and above 100,000 Euro/purchase (for services)

				Value
No.	Contract number	Contractual object		thousand	thousand	Contract type	Legal base	Procurement procedure
				RON	Euro
0	1	2	3	4	5	6	7	8
1	C 588/2022	Revolving bank credit agreement for financing the working capital of NPG Co. Transelectrica SA	12	4,017.03	-	Services	Law 99/2016 + GD 394/2016	One's own procedure
2	C 624/2022	Revolving bank credit line	12	3,710	-	Supply	Law 99/2016 + GD 394/2016	One's own procedure
3	C 518/2022	Domestic and international air passenger services (framework agreement)	24	2,533	-	Services	Law 99/2016 + GD 394/2016	Open tender
4	SB 27/2022	Specialized security services, monitoring, intervention and intervention in special situations at TTU Sibiu facilities	4	829.7	-	Services	Law 99/2016 + GD 394/2016	One's own procedure
5	SB 28/2022	Cleaning and sanitation services at TTU Sibiu headquarters and substations	24	820.9	-	Services	Law 99/2016 + GD 394/2016	Open tender
6	BA 5/2022	Cleaning services at TTU Bacău and DET facilities	24	718.4	-	Services	Law 99/2016 + GD 394/2016	Open tender
7	TM 25/2022 Cleaning	services at TTU Timișoara headquarters - LOT 1 Timiș County	24	502.5	-	Services	Law 99/2016 + GD 394/2016	Open tender

Annex 6 – Glossary

"ANRE"	National Regulatory Authority in the Electricity domain
"BAR"	Regulated asset base
"BSE"	Bucharest Stock Exchange, operator of the regulated market where the Shares are transacted
"CEE"	European Economic Community
"Company". "CNTEE". "TEL"	National Power Grid Company Transelectrica SA
"OTC"	One's own Technological Consumption (grid losses)
"SB"	Supervisory Board
"DEN"	National Power Dispatcher
"EBIT"	Operational profit before interest and income tax
"EBITDA"	Operational profit before interest, income tax and amortisement
"EBT"	Operational profit before income tax
"ENTSOE"	European Network of Transmission and System Operators for Electricity
"GD"	Governmental decision
"IFRS"	International Financial Reporting Standards
"OHL"	Overhead lines
"Leu", "Lei" or "RON"	Romania's official currency
"MPF"	Ministry of Public Finance
"MO"	Romania's Official Gazette
"GO"	Governmental ordinance
"OPCOM"	Operator of Romania's Electricity Market OPCOM SA
"GEO"	Governmental emergency ordinance
"DAM"	Day-ahead Market
"RET"	Electricity Transmission Grid, electric network of national and strategic interest and nominal line voltage above 110 kV
"SEN"	National Power System
"RS"	Secondary control – frequency restoration reserve
"RTL"	Slow tertiary control – replacement reserve
"SMART"	Trading Company for Maintenance Services to the Electricity Transmission Grid SMART SA
"FSS"	Functional system services
"TSS"	Technological system services
"TEL"	Stock exchange indicator for Transelectrica
"TSR"	Total shareholders' return
"EU"	European Union
"m.u."	Measuring unit
"USD" or "US dollars"	American dollar, official currency of the United States of America
"WACC"	Weighted average cost of capital

CNTEE Transelectrica SA Company managed under two-tier system

Stand-alone Simplified Interim Financial Statements as of and for the three months' period ending on 31 March 2022

Elaborated in accordance with the International Accounting Standard 34 – "Interim Financial Reporting"

CNTEE Transelectrica SA

Stand-alone simplified statement of financial position on 31 March 2022 (All amounts are expressed in LEI, unless otherwise provided)

Note 31 March 2022 31 December 2021 Assets Non-current assets Tangible assets3,822,375,798 3,814,698,495 Assets representing rights of use under a leasing buildings 27,832,838 29,820,897 Intangible assets 7,181,761 7,105,259 Financial assets 81,742,973 81,742,973 Total non-current assets 4 3,939,133,370 3,933,367,624 Current assets Inventories 41,610,381 39,939,697 Trade and other receivables 5 3,443,212,940 2,995,581,608 Income tax to recover 17,957,102 21,213,984 Other financial assets - - Cash and cash equivalents 6 90,127,224 252,225,142 Total current assets 3,592,907,647 3,308,960,431 Total assets 7,532,041,017 7,242,328,055 Shareholders' equities and liabilities Shareholders' equities Share capital, of which: 733,031,420 733,031,420 - Share capital subscribed 733,031,420 733,031,420 Share premium 49,842,552 49,842,552 Legal reserves 137,926,619 137,926,619 Revaluation reserves 752,577,272 769,348,928 Other reserves 34,425,337 31,145,250 Retained earnings 1,658,610,740 1,633,807,204 Total shareholders' equities 7 3,366,413,940 3,355,101,973 Non-current liabilities Non-current deferred revenues 8 447,451,720 443,434,048 Borrowings 9 73,476,740 79,455,068 Other loans and assimilated liabilities - Building leasing – long term ¹⁰ 20,803,932 22,751,934 Liabilities regarding deferred taxes 10 116,615,548 117,343,340 Obligations regarding employees' benefits 59,960,381 59,960,381 Total non-current liabilities 718,308,321 722,944,771 Current liabilities Trade and other liabilities 10 3,141,613,832 3,033,542,108 Other loans and assimilated liabilities - Building leasing – short term ¹⁰ 8,321,573 8,273,431 Other tax and social security liabilities 11 10,983,864 14,323,661 Loans 9 215,616,670 24,871,963 Provisions 10 38,945,673 51,688,960 Current deferred revenues 8 31,837,144 31,581,188 Payable income tax - - Total current liabilities 3,447,318,756 3,164,281,311 Total liabilities 4,165,627,077 3,887,226,082 Total shareholders' equities and liabiltieis 7,532,041,017 7,242,328,055

The attached notes 1-21 constitute integrant part of these stand-alone interim simplified financial statements.

CNTEE Transelectrica SA Stand-alone profit and loss account for the three months' period ended on 31 March 2022 (All amounts are expressed in LEI, unless otherwise provided)

	Nota	3 months' period ended on 31 March 2022	3 months' period ended on 31 March 2021
Revenues
Transmission revenues		418,792,129	322,600,764
System service revenues		134,061,493	173,209,505
Revenues from the balancing market		665,038,635	220,223,106
Other revenues		12,611,174	10,281,649
Total revenues	13	1,230,503,431	726,315,024
Operational expenses
System operation expenses	14	(273,543,429)	(108,746,319)
Balancing market expenses	14	(657,086,973)	(212,154,838)
Expenses regarding technological system expenses	14	(121,301,215)	(143,061,438)
Amortisement		(62,648,873)	(63,962,431)
Personnel expenses	15	(60,861,169)	(48,981,102)
Repairs and maintenance		(18,347,902)	(15,372,382)
Materials and consumables		(2,588,813)	(1,528,814)
Other operational expenses	16	(21,471,152)	(36,712,391)
Total operational expenses		(1,217,849,526)	(630,519,715)
Operational profit		12,653,905	95,795,309
Financial revenues		1,683,662	1,818,872
Financial expenses		(3,776,596)	(3,200,232)
Net financial result	17	(2,092,934)	(1.381,360)
Profit before income tax		10,560,971	94,413,949
Income tax	12	(2,529,091)	(12,448,023)
Profit of this time period		8,031,880	81,965,926

The stand-alone interim simplified financial statements provided here were approved by the Company's management on 06 May 2022.

DIRECTORATE,

Chairman	Member	Member	Member	Member
Gabriel	Florin-Cristian	Stefanita	Catalin-Constantin	Bogdan
ANDRONACHE	TATARU	MUNTEANU	NADOLU	TONCESCU

Director, Economic-Financial and Administrative Unit	Manager, Accounting Department
------------------------------------------------------	--------------------------------

Ana-Iuliana DINU Georgiana-Beatrice STEFAN

The attached notes 1-21 constitute integrant part of these stand-alone interim simplified financial statements.

CNTEE Transelectrica SA Stand-alone statement of changes in shareholders' equities on 31 March 2022 (All amounts are expressed in LEI, unless otherwise provided)

	Share capital	Share premiums	Legal reserves	Revaluation reserves	Other reserves	Retained earning	Total
Balance on 1 January 2021 Comprehensive result of the period	733,031,420	49,842,552	137,832,724	841,699,025	17,441,687	1,615,652,289	3,395,499,697
Profit of the time period	-	-	-	-	-	449,891	449,891
Other comprehensive result items, of which: Recognition of defined benefit plan actuarial	-	-	-	-	-	9,222,556	9,222,556
gains Surplus from revaluation of tangible assets Deferred tax liability rel. to revaluation reserves				- -		- -	- -
Transfer of reval. reserves into retained earnings Total other comprehensive result items of period	-	-	-	(72,350,097) (72,350,097)	- -	72,350,097 81,572,653	- 9,222,556
Total comprehensive result of the period	- - -	- -	-	(72,350,097)	-	82,022,544	9,672,447
Other itmes Legal reserve indexation Other items – reserve reduction to increase the	-	-	93,895	-	-	(93,895)	-
capital				-	(599,411)	-	(599,411)
Total other items	-	-	93,895	-	(599,411)	(93,895)	(599,411)
Contributions from and distributions to shareholders
De-recognition of assets such as public domain	-	-	-	-	-	-	-
Subsidies related to assets belonging in the state's public domain	-	-	-	-	14,302,974	-	14,302,974
Distribution of dividends Total contributions from / distributions to	-	- -	-	-	-	(63,773,734)	(63,773,734)
shareholders Balance on 31 December 2021	-	-	-	-	14,302,974	(63,773,734)	(49,470,760)
	733,031,420	49,842,552	137,926,619	769,348,928	31,145,250	1,633,807,204	3,355,101,973
Balance on 1 January 2022	733,031,420	49.842,552	137,926,619	769,348,928	31,145,250	1,633,807,204	3,355,101,973
Comprehensive result of the period
Profit of the period	-	-	-	-	-	8,031,880	8,031,880
Other comprehensive result items, of which	- -	- -	-	-	-	-	-
Recognition of actuarial loss/profit of the defined benefit plan	- -	-	-	-	-	-	-
Surplus from revaluation of tangible assets Deferred tax liability rel. to revaluation reserves	- -	- -	- -	- -	- -	- -	- -
Transfer of revaluation reserves into retained				(16,771,656)		16,771,656	-
earnings Total other comprehensive result items	-	-	-	(16,771,656)	-	16,771,656	-
Total comprehensive result of the period	- -	-	-	-- (16,771,656)	-	24,803,536	8,031,880
Other elements Legal reserve indexation	-	-	-	-	-	-	-
Other items	-	-	-	-	-	-	-
Total other changes Contributions from / distributions to shareholders	-	-	-	-	-	-	-
De-recognition of assets such as public domain	-	-	-	-	-	-	-
Subsidies related to assets belonging in the state's public domain Distribution of dividends	- -	- -	- -	- -	3,280,087 -	- -	3,280,087 -
Total contributions from / distributions to shareholders	-	-	-	-	3,280,087	-	3,280,087
Balance on 31 March 2022	733,031,420	49,842,552	137,926,619	752,577,272	34,425,337	1,658,610,740	3,366,413,940

The attached notes 1-21 constitute integrant part of these stand-alone interim simplified financial statements.

CNTEE Transelectrica SA Stand-alone statement of cash flows on 31 March 2022

(All amounts are expressed in LEI, unless otherwise provided)

	3 months' period ended on 31 March 2022	3 months' period ended on 31 March 2021
Cash flows from operations
Profit of the period	8,031,880	81,965,926
Allowances for:
Income tax expense Amortisement expense	2,529,091 62,648,873	12,448,023 63,962,432
Expenses with allowances to impair trade receivables	476,827	406,059
Reversal of allowances to impair trade receivables	(278,653)
Losses from receivables and sundry debtors	-	(805.740) 35,619
Net expenses / revenues with allowances to impair sundry debtors	71,276	(238,547)
Net expenses / revenues with allowances to impair inventories	302,578	683,579
Net profit / loss from sale of tangible assets	48,652	29,020
Net expenses with value allowances regarding tangible assets	-	299,462
Net expenses / revenues regarding provisions for risks and expenses	(12,759,397)	299.462 (15,895,932)
Interest expense, interest revenue and unrealised exchange rate gains
din diferențe de curs valutar	1,398,383	1,873,074
Cash flows before changes in the current capital	62,469,510	144,762,975
Changes into:
Clients and assimilated accounts - energy and other activities
Clients - balancing	(704,975,290) 259,312,700	(57,723,267) (3,789,013)
Clients - cogeneration	(2,543,366)	3,332,191
Inventories	(1,670,684)	1,240,773
Trade and other liabilities - energy and other activities	453,024,094	(78(2.584.879) ,904,284)
Liabilities - balancing	(325,348,133)	(26,043,625)
Liabilities - cogeneration	4,035,411	(10,495,575)
Liabilities paid according to Taxation decision of ANAF	-	(2,140,264)
Other loans and assimilated liabilities - Building leasing	-	(2,191,410)
Other tax and social security liabilities	(3,339,797)	(5,080,790)
Deferred revenues	7,553,715	7,045,184
Cash flows from operational activities	(251,481,840)	(29,987,105)
Interest paid	(1,602,432)
Income tax paid	-	(1.043.610) (2,514,707)
Net cash generated from operations	(253,084,272)	(33,545,422)
Cash flows from investments
Procurements of tangible and intangible assets	(91,300,356)	(111,923,421)
Interest cashed	247,330	764,758
Other financial assets	-	-
Net cash used in investments	(91,053,026)	(111,158,663)
Cash flows used for financing
Repayments of non-current loans	(5,955,926)	(5,867,454)
Utilisation of cogeneration credit line	45,568,018	-
Utilisation of credit line for current capital	145,113,602	-
Payements of building leasing	(2,648,636)	(2,608,795)
Dividends paid	(37,678)	(6,621)
Net cash used for financing	182,039,380	(8,482,870)
Net increase /(decrease) of cash and cash equivalents	(162,097,918)	(153,186,955)
Cash and cash equivalents on 1 January	252,225,142	554,003,528
Cash and cash equivalents at the end fo this period	482.158.679 90,127,224	520.746.500 400,816,573

Note: On 31.03.2022 the liabilitiy of building leasing from "Other loans and assimilated liabilities - Building leasing" was reclassified into "Trade and other liabilities - electricity and other activities"

1. General information

The main business of CNTEE Transelectrica SA ("Company") consists in: providing electricity transmission and system services, balancing market operator, administrator of the bonus type support scheme, and other related activities. They are carried out according to the provisions of operational licence 161/2000 issued by ANRE, updated under ANRE Decision 758/21.04.2021, to the General conditions associated to the licence approved by ANRE Order 104/2014, with later amendments and additions and of the Company's final certification as transmission and system operator of the National Power System according to the ownership unbundling model as per ANRE Order 164/07.12.2015.

Official headquarters are in Blvd. General Gheorghe Magheru 33, Bucharest 1. At present the Company's executive group are active in the working location of Str. Olteni 2-4, Bucharest 3.

The stand-alone interim financial statements elaborated on 31 March 2022 have not been audited.

2. Bases of elaboration

a) Statement of conformity

These stand-alone interim simplified financial statements have been elaborated in accordance with IAS 34 Interim financial reporting. They do not include all the information necessary for a complete set of financial statements in accordance with the International Financial Reporting Standards (IFRS). Nevertheless some explanatory notes have been included to explain the events and transactions significant for understanding the changes occurred in the Company's financial position and performance since the last annual stand-alone financial statements of the date and for the financial period ended on 31 December 2021.

b) Professional reasoning and estimations

The significant reasoning that the governing team have used for the application of the Company's accounting policies and the main uncertainty sources regarding estimations were the same with those applied to the stand-alone financial statements as of and for the financial period ended on 31 December 2021.

3. Significant accounting policies

The accounting policies applied in these stand-alone interim financial statements are the same with those applied in the Company's stand-alone financial statements as of and for the financial year ended on 31 December 2021.

4. Tangible, intangible and financial assets

a) Tangible assets

The higher total value of tangible assets on 31 March 2022 compared to 31 December 2021 was determined by augmented values of tangible assets in progress while registering the amortisement of tangible assets.

Thus the growth of tangible asset amounts in the first quarter of 2022 was mainly determined by investments made into high voltage electric substations and lines as follows:

The 400 kV double circuit OHL Gutinaa Smardan 18,915,585;
Installing the 400 MVA, 400/231/22 kV AT2 and related bays in substation Iernut and upgrading the command control system of the 400/220/110/6 kV substation Iernut – 10,236,987;
Refurbishing the 220/110 kV substation Iaz 7,385,857;
The 400 kV double circuit OHL Cernavoda Stalpu and connection in Gura Ialomitei 6,996,033;
Converting the Portile de Fier Resita Timisoara Sacalaz Arad axis to 400 kV, stage I the 400 kV simple circuit OHL Portile de Fier - (Anina) - Resita – 5,489,923;
Upgrading the electricity supply in the offices of UNO-DEN 3,657,572;
Connecting the 400 kV OHL Isaccea Varna and Isaccea Dobrogea OHL in the 400 kV substation Medgidia Sud 2,658,939;

CNTEE Transelectrica SA

Notes to the stand-alone interim financial statements as of 31 March 2022 (All amounts are expressed in LEI, unless otherwise provided)

Extending the 400 kV substation Gura Ialomitei by two bays: the 400 kV OHL Cernavoda 2 & 3 2,592,379;
Upgrading the 220/110 kV substation Dumbrava 2,527,758;
Refurbishing the 220/110/20 kV substation Ungheni 2,469,986;
Refurbishing the 220/110/20 kV substation Baru Mare 2,223,790.

In the first quarter 2022 the greatest transfers of tangible assets underway into tangible assets, in sum of 23,744,124 are mainly represented by the commissioning of investment objectives, of which the most significant are the following:

Upgrading the 110 kV & 400 (220 kV) installations of substation Focsani Vest 8,336,456;
Upgrading the 110 kV substations Bacau Sud & Roman Nord of the 400 kV axis Moldova 6,904,234;

Upgrade with a view to diminish galloping on the 400 kV OHL-s in Baragan – Fetesti area; diminishing the galloping effects on the 400 kV OHL Bucharest South – Gura Ialomitei and 400 kV OHL Cernavoda – Gura Ialomitei (circuit 2) – 3,745,749;

Relocating high voltage networks, 220 kV double circuit OHL Lotru – Sibiu Sud, Lot 1 km 0+000 – km 13+170 – 3,280,087;

Refurbishing the 220/110 kV substationTurnu Severin Est 762,311;
DRONES 9 pieces 166,182;

Endowment with equipment necessary for data centres of TEL - Professional air conditioning and dehumidification units of industrial type – 117,000;

Consolidating the servers and data storage network (private cloud) 96,079;
Collecting rainwater that passes through the oil separators of the 220/110/20 kV substation Pitesti Sud 64,064;
Topographic instrumentation and computation technique (hardware & software) 61,500.

The balance of tangible assets under execution on 31 March 2022, amounting to 931,474,051 Lei, is represented by projects in progress, of which the most significant are provided below:

The 400 kV double circuit OHL Cernavoda Stalpu and connection in Gura Ialomitei 301,585,169;
Converting the Portile de Fier Resita Timisoara Sacalaz Arad axis to 400 kV, stage I the 400 kV simple circuit OHL Portile de Fier - (Anina) - Resita – 98,168,953;

Connecting the 400 kV OHL Isaccea - Varna and Isaccea - Dobrogea OHL in the 400 kV substation Medgidia Sud – 59,372,757;

Refurbishing the 220/110 kV substation Hasdat – 53,711,895;

Connecting to RET the 300 MW WPP Ivesti, 88 MW WPP Falciu 1 and 18 MW WPP Falciu 2 through the new (400)/220/110 kV substation Banca – 46,884,983;

Installing the 400 MVA, 400/231/22 kV AT2 and related bays in substation Iernut and upgrading the command control system of the 400/220/110/6 kV substation Iernut – 23,788,599;
Upgrading the 400 (220)/110/20 kV substation Munteni 31,664,205;
Upgrading the 220/110/20 kV substation Raureni 25,483,974;
Refurbishing the 220/110 kV substation Iaz 23,507,778;
Upgrading the 220/110 kV substation Dumbrava 21,157,332;
The 400 kV double circuit OHL Gutinas Smardan 18,915,585;
Upgrading the 220/110/20 kV substation Arefu 17,914,157;
Extending the 400 kV substation Gura Ialomitei by two bays: the 400 kV Cernavoda 2 & 3 15,403,061;
Refurbishing the 400/110/20 kV substation Smardan -14,480,893;
110 kV, 220 kV and 400 kV mobile bays 14,296,873;
Refurbishing the 110 kV substation Medgidia Sud 13,737,773;
Extending the 400 kV substation Cernavoda, stage I+II, Replacing 2 shunt reactors, connecting new lines 12,174,582;

Converting the Portile de Fier - Resita - Timisoara - Sacalaz - Arad axis to 400 kV, stage I - the 400/220/110 kV substation Resita – 10,930,368;

Refurbishing the 220/110/20 kV substation Ungheni – 9,537,607;

CNTEE Transelectrica SA

Notes to the stand-alone interim financial statements as of 31 March 2022 (All amounts are expressed in LEI, unless otherwise provided)

Converting the Portile de Fier - Resita - Timisoara - Sacalaz - Arad axis to 400 kV, stage II, the 400 kV double circuit OHL Resita - Timisoara - Sacalaz - 8.900.950;

Refurbishing the 220/110/20 kV substation Baru Mare 8.702.923;
Upgrading the electricity supply in the offices of UNO-DEN 8.196.639;
Upgrading the 220/110/20 kV substation Vetis primary equipment 6.644.714;
The 400 kV OHL Gadalin Suceava, including SEN interconnection 6.043.182;
HVDC Link 400 kV (Submarine cable Romania Turkey) 5.853.759;
Replacing autotransformers (AT) and transformers (T) in electric substations, stage 2, step 2, lot 1 & lot 2 5.533.661;
Integrated security system in electric substations, stage IV 4.816.604;
Consolidating the servers and data storage network (private cloud) 4.569.238;
Upgrading the 110 kV & 400 (220 kV) installations of substation Focsani Vest 4.506.969;
The 400 kV OHL Suceava Balti for the project part on Romania's territory 4.439.120;

Procuring and installing 21 monitoring systems for transformer units in substations of CNTEE Transelectrica SA – 3.814.648;

Converting the Portile de Fier - Resita - Timisoara - Sacalaz - Arad axis to 400 kV, stage II, the 400 kV double circuit OHL Resita - Timisoara - Sacalaz – 3.374.984;

Extending by new functions the control system and IT access supervision in the objectives of CNTEE Transelectrica SA – 3.200.918.

b) Intangible assets

The balance of intangible assets under execution on 31 March 2022, amounting to 5,726,825 Lei, is represented by projects underway, of which the most significant are provided below:

Implementing an Electronic Archive and Document Management system within CNTEE Transelectrica SA 5.474.290;
GE licence Software module to make capacity calculations based on flows 247.400.

c) Financial assets

Financial assets comprise the net value of shares the Company holds, amounting to 81,742,973 on 31 March 2022 and to 81,742,973 on 31 December 2021.

d) Assets representing rights of use under a lease - buildings

The assets relating to the usage rights of assets under a lease - buildings represent the utilisation right of spaces the Company rented in the Platinum office building, according to the provisions of IFRS 16, Leasing Contracts. Contract C232 became effective on 01.10.2020 and is valid for 5 years, amounting to 9,000,000 Euro (VAT free).

On 31 March 2022 the net value of the utilisation right for spaces the Company rented in Platinum office building amounted to 27,832,838 Lei.

For this contract the Company pays a monthly quantum of 16.67 Euro/m2 (VAT free) to lease office spaces, resulting an annual amount of about 1.8 mill. Euro.

5. Trade and other receivables

On 31 March 2022 and on 31 December 2021 trade and other receivables were as follows:

	31 March 2022	31 December 2021
Trade receivables	2,264,045,437	2,194,153,312
Other receivables	195,214,622	189,968,790
Down payments to suppliers	928,783,779	701,351,443
Recoverable VAT	267,462,192	122,134,375
Impairment allowances for doubtful trade receivables	(145,306,120)	(145,107,946)
Impairment allowances for other doubtful receivables	(66,986,970)	(66,918,366)
Total trade and other receivables	3,443,212,940	2,995,581,608

The structure of trade receivables is the following:

	31 March 2022	31 December 2021
Clients on the electricity market, of whom:	2,261,904,519	2,182,908,347
- Clients - operational activities	1,744,144,380	1,408,378,875
- Clients - balancing market - Clients - bonus type support scheme to promote high	307,414,144	566,726,844
efficiency cogeneration	210,345,995	207,802,628
Clients from other activities	2,140,918	11,244,965
Total trade receivables	2,264,045,437	2,194,153,312

• Transelectrica SA carries out its operational activities under the Operational Licence 161/2000 issued by ANRE, updated under Decision 758/ 21.04.2021 of ANRE President to provide electricity transmission services, system services and balancing market administration.

On 31 March 2022 clients on balance from operational activities increased compared to 31 December 2021, mainly determined by higher volume resulting from markets coupling in the first quarter 2022 compared to quarter 4 2021, this generating higher receivables on balance on 31 March 2022 compared to 31 December 2021.

The lower volume of transactions on the balancing market in the first quarter of 2022 compared to quarter 4 of last year has also determined a reduction in the clients' balance under contracts concluded for such activities.

The main clients represented in the total trade receivables are: OPCOM, MAVIR, Ciga Energy SA, Electrica Furnizare SA, Cinta Energy SA, RAAN, Enel Energie SA, E.ON Energie Romania SA, IBEX, Tinmar Energy. Their share is 74.55% in the total trade receivables.

• CNTEE Transelectrica SA performs activities under the bonus type support scheme to promote high efficiency cogeneration as administrator of the support scheme, in accordance with the provisions of HGR 1215/2009, "the main attributions being to collect monthly the cogeneration contribution and pay bonuses every month".

On 31 March 2022 the Company registered receivables to cash under the bonus type support scheme to support high efficiency cogeneration of about 9% (similarly on 31 December 2021) from the total trade receivables.

On 31 March 2022 clients from the bonus type support scheme to promote high efficiency cogeneration were registered with higher receivables, mainly determined by higher amounts invoiced for the collection of monthly contributions.

The Company on 31 March 2022 registered collectable receivables amounting to 210,345,995, which were represented by invoices issued under the bonus scheme to promote high efficiency cogeneration, of which:

2011-2013 overcompensation amounting to 76,702,140, namely from RAAN 63,467,054 and CET Govora SA 13,235,086;
2014 undue bonus amounting to 3,914,960, namely from RAAN 1,981,235 and CET Govora 1,933,725;
2015 undue bonus amounting to 563,899, namely from CET Govora 534,377, Interagro 29,523;
2020 undue bonus amounting to 522,181 from Donau Chem;
Cogeneration contribution not cashed from the suppliers of electricity consumers, in sum of 21,594,255, namely from: Transenergo Com – 5,882,073, Petprod – 4,391,193, Romenergy Industry – 2,680,620, RAAN- 2,385,922, UGM Energy – 1,504,046, CET Govora – 900,864, KDF Energy – 887,527 and others;

CNTEE Transelectrica SA Notes to the stand-alone interim financial statements as of 31 March 2022

(All amounts are expressed in LEI, unless otherwise provided)

Until the date of this financial reporting the Company cashed the receivables relating to the overcompensated activities of the 2021 support scheme (sum of 22,893,841) from CET Govora (15,041,215), BEPCO (4,257,616) and Electrocentrale Bucharest (3,595,000), as well as 32,632,040 of the undue bonus established by ANRE Decisions for 2022 from the following generators: Bepco SRL, Energy Complex Hunedoara, Energy Complex Oltenia, CET Govora, Colonia Cluj Napoca Energie, Contourglobal Solutions, Electrocentrale Bucharest, Electro Energy Sud, Electroutilaj SA, Poligen Power, Soceram SA, District Heating Oradea and UATAA Motru.

To extinguish receivables generated by overcompensation and undue bonus the Company requested the generators qualified under the support scheme to make mutual compensations. In case of generators that did not agree with this manner to extinguish mutual receivables and liabilities (RAAN, Electrocentrale Bucharest, and CET Govora) the Company has applied and further applies the provisions of article 17 para 5 from Order 116/2013 of ANRE President approving the Regulation establishing the collection mode of the contribution for high efficiency cogeneration and the bonus payment for the electricity generated under high efficiency cogeneration: "in case the generator did not make the payment in full to the support scheme administrator for its payment obligations resulted in accordance with the provisions of this Regulation, the support scheme administrator pays to the producer the difference between the producer invoices and its payment obligations under the support scheme, with explicit mention of the respective amounts on the payment document" and withheld from payment the due amounts under the respective support scheme.

On the docket of Mehedinti Tribunal, Section II Civil of Administrative & Fiscal Disputes file 9089/101/2013/a140 was registered pertaining to "claims in amount of 86,513,431", where the Company is claimant and the Autonomous Authority for Nuclear Activities – RAAN is defendant.

The law court summons filed by Transelectrica SA requested the instance to compel defendant RAAN to pay 86,513,431. On 19.05.2016 Mehedinti Tribunal, Section II Civil of Administrative & Fiscal Disputes pronounced hearing conclusion and ordered as follows: "In accordance with article 413 pt. 1 Civil Procedure Code decides suspending the case until settlement of file 3014/2/2014 found on the docket of the High Court for Cassation and Justice. Appeal right is valid during the entire suspension term; pronounced on 19 May 2016 at public hearing"; hearing term on 06.06.2019. Mention should be made file 3014/2/2014 on the docket of the High Court for Cassation and Justice pertained to appeal in order to cancel ANRE Decision 743/28.03.2014, the parties being RAAN (claimant) and ANRE (defendant).

Mention should be also made the hearing conclusion of 18.09.2013 issued by Mehedinti Tribunal under file 9089/101/2013 pronounced opening the general insolvency procedure against debtor Autonomous Authority for Nuclear Activities RA (RAAN).

Ruling 387/20.03.2014 of Mehedinti Tribunal confirmed the reorganisation plan of debtor Autonomous Authority for Nuclear Activities, proposed by the judiciary administrator Tudor&Asociatii SPRL and voted by the General Assembly of Creditors according to the minutes of 28.02.2014.

In the intermediate ruling 10/28.01.2016 pronounced by Mehedinti Tribunal, Section II Civil of Administrative & Fiscal Disputes, the syndic judge decided initiating the debtor's bankruptcy procedure based on article 107 para 1 let. C of Law 85/2006, as well as breaking up the debtor and cancelling its administration right.

Ruling 563/14.06.2016 of the Appeal Court Craiova, Section II Civil denied the appeals filed against the intermediate ruling 10/28.01.2016, pronounced by Mehedinti Tribunal, Section II Civil of Administrative & Fiscal Disputes.

Once submitting the receivable statement under RAAN's bankruptcy procedure Transelectrica SA can resort to the provisions of article 52 from Law 85/2006, applicable to RAAN's bankruptcy procedure, provisions resumed in article 90 of Law 85/2014 on the creditor's right to invoke compensation for its receivables with its debtor's to it, whenever the lawprovided conditions for legal compensation are complied with on the procedure opening date. Transelectrica SA was recoded with 11,264,777 Lei in the table of debtor RAAN, in the category of receivables resulting from the debtor's uninterrupted activity, the actual amount the Company requested being 89,360,986 Lei, but 78,096,208.76 Lei were not registered in the preliminary receivable table because "such sum was not recorded as owed liability in RAAN's accounting books". Moreover the judiciary liquidator considered the request to record 78,096,209 Lei was made late since it pertained to 2011 – 2013, for which reason the receivable statement should have been submitted when the insolvency procedure began, namely on 18.09.2013.

In consequence of registering only a part from the total amount requested by Transelectrica in quantum of 89,360,986.06 Lei and of letter 4162/03.10.2016, whereby the judiciary liquidator informed us only the sum of 11,264,777.30 Lei was recorded in the additional table of receivables resulting from continued debtor activities, while 78,096,208.76 Lei were denied. Contestation was submitted to the Additional receivables table within the legal term.

On the 14.02.2019 hearing term Mehedinti Tribunal decided joining file 9089/101/2013/a152 to file 9089/101/2013/a140 (pertaining to payment request). File judgment was deferred because the court deemed it useful for settlement to have ruling

CNTEE Transelectrica SA Notes to the stand-alone interim financial statements as of 31 March 2022

(All amounts are expressed in LEI, unless otherwise provided)

2969/26.09.2018 submitted, pronounced by the High Court of Cassation and Justice under file 3014/2/2014, pertaining to cancelling Decision 743/2014 of ANRE President.

Mehedinti Tribunal decided as follows: "It admits the exception of decline. It partly admits the main issue and associated contestation. It compels defendant RAAN to pay to claimant Transelectrica the amount of 16,950,117.14 Lei accrued during the procedure, judging to record it in the creditors' table constituted against debtor RAAN by this sum. The other associated demands are denied. In accordance with article 453 para 2 from the Civil Procedural Code it compels the defendant to pay 1000 Lei law court expenses to the claimant. Appeal right is granted. It was pronounced on 20.06.2019 at public hearing". Document: Ruling 163/2019 20.06.2019.

Transelectrica filed appeal within the legal term. The Appeal Court Craiova established the first hearing term on 30.10.2019; the appeal was denied as groundless. Transelectrica filed review request for contrary rulings, registered under file 1711/54/2019, with hearing term on 25.03.2020 to the Appeal Court Craiova, which was supposed to refer the file to the High Court of Cassation and Justice for competent settlement.

On 26.03.2020 the hearing term was changed and the following was set on 21.05.2020.

On 21.05.2020 the case was taken out of the docket with the following settlement: it admitted the exception of material incompetence of the Appeal Court Craiova and decided referring it to ICCJ, Section of Administrative & Fiscal Disputes; ruling 140/21.05.2020, next term on 03.02.2021.

On 03.02.2021 ICCJ admitted the exception of tardive revision request and did no longer pronounce on its inadmissibility.

Also there are 4 other files under various judgment stages between RAAN and Transelectrica.

In accordance with RAAN's bankruptcy file under number 9089/101/2013, on the 08.10.2020 and 04.02.2021 terms Mehedinti Tribunal deferred the case. Settlement in brief: a term was granted to continue liquidation procedures, represent the debtor's interests in the disputes found on the docket of law courts; to consolidate the creditors' amounts, to continue measures to recover receivables and the public auctions to capitalise the debtor's assets.

On the 14.10.2021 term the case was deferred with the following settlement in brief: "it provided term to continue the procedure, namely to capitalise the assets and carry out the other liquidation operations".

On the 10.02.2022 term the case was deferred, settlement in brief: "to carry out the procedure, namely capitalise the assets, collect receivables and perform the other liquidation operations; the parties will be summoned by means of BPI" and the following term was established on 02.06.2022.

CNTEE Transelectrica SA concluded with CET Govora SA an agreement to compensate and spread out the payment of amounts representing receivables from the 2011-2013 overcompensation and the 2014 undue bonus (Agreement C 135/30.06.2015 and Addendum 1/04.08.2015). The Agreement term was about 1 year (July 2015-August 2016) and it provided the Company's right to calculate and cash penalties during payment spread-out.

In accordance with such Agreement the Company's receivables collectable from CET Govora SA were compensated with its liabilities to CET Govora SA, represented by cogeneration bonus for May 2014 – October 2015 amounting to 40,507,669, withheld by applying the provisions of article 17 para 5 of ANRE President's Order 116/2013 and the Agreement provisions.

Since ANRE Decision 738/28.03.2014 was suspended by court civil ruling 3185/27.11.2015, which had determined the 2011-2013 overcompensation, CET Govora SA has no longer complied with the Agreement terms.

Beginning with 9 May 2016 the general insolvency procedure was initiated for CET Govora. In view of recovering the receivables accrued before opening the insolvency procedure the Company followed the specific procedures specified by the Insolvency Law 85/2014 and requested the court to admit its receivables, as per legal provisions. Taking into account the above, beginning with 9 May 2016 the Company ceased applying the provisions of article 17.5 from Order 116/2013 of ANRE President approving the Regulation establishing the collection mode of the contribution for high efficiency cogeneration and the bonus payment for electricity generated by high efficiency cogeneration and paid monthly the cogeneration bonus to CET Govora.

Civil ruling 2430/05.10.2016 of the High Court of Cassation and Justice admitted the appeal filed by ANRE against civil ruling 3185/27.11.2015, partly cancelled the sentence appealed against and denied the suspension request of CET Govora, such decision being final. Thus beginning with 05.10.2016 the effects of ANRE Decision 738/28.03.2014 are no longer suspended, bearing full effects.

Under such circumstances the Company applies the provisions of article 17 para 5 of ANRE Order 116/ 2013 for mutual receivables and liabilities occurred after the insolvency procedure, meaning withholding the bonus due to CET Govora SA up to the concurrence of amounts related to the support scheme that were not paid to the Company. Transelectrica was registered in the Preliminary and final receivables table with total amount of 28,200,440.31, of which 25,557,189.98 relates to the support scheme. Mention should be made the receivable amounting to 21,962,243.71 Lei, representing principal and penalties related to invoice 8116/08.04.2016, has been registered under the suspensive condition to pronounce a final juridical decision in favour of ANRE under file 2428/2/2014 on the docket of the Appeal Court Bucharest, pertaining to

CNTEE Transelectrica SA

Notes to the stand-alone interim financial statements as of 31 March 2022 (All amounts are expressed in LEI, unless otherwise provided)

cancelling ANRE decision 738/28.03.2014.

On the 18.07.2018 term Valcea Tribunal pronounced the following settlement:

It confirmed the reorganisation plan of SC CET Govora SA proposed by the judiciary administrator EURO INSOL SPRL, submitted on 25 May 2018 to the file and printed in the Bulletin of Insolvency Procedures 11924 of 13 June 2018;
It denied the contestations submitted by creditors: Energy Complex Oltenia SA, SNTFM CFR Marfa SA, Solek Project Delta SRL, Solek Project Omega SRL, Clean Energy Alternativ SRL and Solar Electric Curtisoara SRL;
It set the substance term to continue the procedure on 8 October 2018;

Appeal right was granted within 7 days from notification, to be performed by the Bulletin of Insolvency Procedures; pronounced at public hearing of 18 July 2018. Document: Ruling: 1196/18.07.2018.

Ruling 766/03.12.2018 of the Appeal Court Pitesti cancelled the amount of 28,013,984.83 representing a liability the Company registered in the Creditors' Table (File 1396/90/2016).

Under such circumstances the Company included the amount of 22,188,224.16 from the support scheme in the sundry debtors' account, which is analytically distinct - ANRE, and impacts the net position of the support scheme.

The amount of 22,188,224.16 represents receivable payable by CET Govora under the support scheme, in sum of 25,557,190, corrected with the bonus amounting to 3,368,966 the Company withheld according to article 17 para 5 from Order 116/2013 of ANRE President.

In accordance with item 11 of HG 925/2016 amending and adding HG 1.215/2009 establishing the criteria and conditions necessary to implement the support scheme to promote high efficiency cogeneration based on the useful heat demand, ANRE is going to elaborate the regulatory framework for the financial closure of this scheme. On the elaboration date of such notes on ANRE's site a project has been put to debate, the Draft Order to approve the Methodology establishing the principles applicable for the financial closure of the support scheme to promote high efficiency cogeneration.

In accordance with the provisions of Governmental Decision 925/2016 with later amendments and additions, provided above, the Company has not registered impairment allowance expenses for clients under the support scheme; the unrecovered amount of such receivables will be included in the cogeneration contribution.

Other receivables

On 31 March 2022 other receivables amounting to 195,214,622 included in the main:

Sundry debtors (161,382,615), of which:
- The net position of the support scheme to promote high efficiency cogeneration, a receivable position amounting to 56,978,651.

The net position of the support scheme represents the difference between:

The contribution amount to be collected from the suppliers of electricity consumers, the overcomensation amount from electricity and heat produced under high efficiency cogeneration, the undue bonus to recover from producers according to ANRE decisions, on the one hand and
The amount of cogeneration bonus, the ex-ante over-compensation and unpaid bonus payable to electricity generators under high efficiency cogeneration, as beneficiaries of the support scheme, on the other hand;
Payment delay penalties calculated to defaulting clients and amounting to 95,752,768 (of which 35,358,601 represents penalties under the support scheme). The greatest delay penalties were registered by the following clients: RAAN (16,901,449), Romelectro (14,745,495), CET Govora (9,606,504), Electrocentrale Bucharest (9,409,174), Eco Energy SRL (8,909,843), Petprod SRL (8,894,655), Next Energy Partners (8,395,132), Total Electric Oltenia (3,288,967), and OPCOM (2,398,658). Allowances were registered for the penalties calculated for late payment of operational activity receivables;
Compensations owed by suppliers for their non-delivery of electricity: Arelco Power (987,555) and Enol Grup (2,541,312). Impairment allowances were registered for the compensations owed by suppliers from operational activities;
Receivable to recover from OPCOM, representing VAT related to the Company's contribution in kind to the subsidiary's capital in sum of 4,517,460;
Deferred expenses amounting to 17,581,489, mainly represented by: expenses to procure CPT (6,570,823), international subscription to ENTSO-E (4,357,106), annual contribution to ANRE for 2022 (2,820,095), taxes and charges of 2022 (2,593,525), office spaces' lease and maintenance (742,740), RCA & CASCO policies (183,048) and others;
Other non-current receivables amounting to 4,256,474, of which 4,199,505 represent securities for temporary land

occupation, calculated and withheld according to article 39 para (1), para (2) and para (5) of Law 46/2008 on the Forestry Code, with a view to make the investment objective of the 400 kV OHL Resita – Pancevo (Serbia);

Other social receivables amounting to 3,994,362 representing medical leaves the employer paid to employees, which will be recovered from the National Health Insurance House according to applicable legislation.

Down payments to suppliers

On 31 March 2022 these are represented by supplier-debtors for services provided in amount of 928,783,779 and are mainly sums from the transactions under the price-coupling mechanism (ICP - Interim Coupling Project, SIDC - Single Intraday Coupling and SDAC - Single Day-ahead Coupling) (870,549,357 for ICP and SDAC, and 58,100,039 for SIDC).

The price coupling mechanism was applied beginning with 19 November 2014, date when the '4 Markets Market Coupling' project providing connection of the day-ahead electricity markets (DAM) from Romania, Hungary, Czech Republic and Slovakia became operational. On June 17th the Interim Coupling project was launched, which represents the day-ahead markets of 4MMC countries with the similar markets of Poland, Austria and Germany.

Such price coupling mechanism of day-ahead markets means the electricity exchanges correlate the electricity transactions for the following day based on bids, taking into account the interconnection capacity made available by the TSO, whereby it is implicitly allocated. CNTEE Transelectrica SA as TSO transfers electricity both in physical and commercial terms to the neighbouring TSO (MAVIR, Hungary) and manages the congestion revenues on the respective interconnection (article 139 from ANRE Order 82/2014), and in relation to OPCOM SA it is Implicit Participant to the Day-Ahead Market.

In its capacity of Transfer Agent and Implicit Participant CNTEE Transelectrica SA has the commercial task to settle the electricity transacted between OPCOM SA and MAVIR.

On 19 November 2019 the 2nd wave was launched under the single European intraday markets coupling (SIDC - Single Intraday Coupling), with first deliveries on 20 November. Seven countries: Bulgaria, Croatia, Czech Republic, Hungary, Poland, Romania and Slovenia joined the fourteen countries: Austria, Belgium, Denmark, Estonia, Finland, France, Germany, Latvia, Lithuania, Norway, the Netherlands, Portugal, Spain and Sweden that have been already operated under coupled regime since June 2018.

The single intraday markets coupling mechanism provides uninterrupted harmonisation of sale and purchase offers from market participants of a bidding zone with the sale and purchase offers within their own bidding zone and from any other bidding zone where cross-border capacity is available.

In its capacity of Transfer Agent CNTEE Transelectrica SA has the commercial task to settle the electricity transacted between OPCOM SA, MAVIR and IBEX.

28 October 2021 represented the start of the new successful coupling SDAC Single Day-ahead Coupling, result of the cooperation between the Nominated Electricity Market Operators (NEMO-s) and Transmission System Operators (TSO) of Bulgaria and Romania, namely IBEX EAD, OPCOM SA, ESO EAD and CNTEE Transelectrica SA. The purpose of SDAC is to create a pan-European single cross-border day-ahead electricity market. An integrated day-ahead market enhances the general efficiency of transactions by promoting effective competition, increasing liquidity and enabling a more efficient utilisation of generation resources all over Europe.

In its capacity of transfer agent for Romania's bidding zone CNTEE Transelectrica SA has the task to settle the electricity transacted between OPCOM SA and IBEX.

VAT to recover

Receivable VAT (267,462,192) is an amount related to settlements of December 2021 – March 2022, and October 2020. On 04 May 2022 the Company collected 169,402,800 Lei from the state.

Impairment allowances of trade receivables, doubtful trade receivables and other doubtful receivables

The policy of Transelectrica consists of registering impairment allowances for value losses in quantum of 100% for clients under dispute, insolvency and bankruptcy and 100% of trade receivables and other receivables not cashed for more than 180 days, except for outstanding receivables generated by the support scheme. The Company also makes case by case analysis of trade receivables and other uncollected receivables.

On 31 March 2022 the greatest impairment allowances calculated for trade receivables and their associated penalties were registered for CET Govora (25,108,898), Eco Energy SRL (24,736,066), Petprod SRL (23,539,650), Arelco Power (14,788,022), Total Electric Oltenia SA (14,185,577), Romenergy Industry (13,512,997), Romelectro SA (12,955,958), GETICA 95 (12,540,731), Elsaco Energy (9,276,118), and RAAN (8,516,707).

The Company took the following steps to recover such receivables adjusted for depreciation: court proceedings, registration in the creditors' table, requesting explanations from ANAF (for the VAT amount to be collected from Opcom), etc.

6. Cash and cash equivalents

It includes cash balances, demand funds and deposits with initial maturities up to 90 days from establishment date, which have insignificant exposure to the risk of changing their fair value, which the Company uses for management of current commitments.

On 31 March 2022 and 31 December 2021 cash and cash equivalents were as follows:

	31 March 2022	31 December 2021
1. Current accounts in banks and deposits with initial maturities up to 90 days, of which:	89,958,458	252,110,965
a) Current accounts in banks and deposits with initial maturities up to 90 days from current activities	42,881,464	39,926,219
b) Current accounts in banks and deposits with initial maturities up to 90 resctricted days, of which:	47,076,994	212,184,746
- Cash and cash equivalents from high efficiency cogeneration	3,624,506	157,024,160
- Cash and cash equivalents from the allocation of interconnection capacities used for network investments	574,311	3,154,664
- Cash from the connection fee	9,773,923	30,164,016
- European funds	24,770	287,049
- Other restricted accounts (securities on the electricity market and dividends)	33,079,484	21,554,857
Cash desk	109,944	114,177
Other cash equivalents	58,822	-
Total	90,127,224	252,225,142

7. Shareholders' equities

In accordance with the provisions of OUG 86/2014 establishing reorganisation measures for public central administration and amending and adding certain norms, on 20 February 2015 the Company's Shareholder Register recorded the transfer of 43,020,309 shares from the Romanian State's account managed by the Secretariat General of the Government into the Romanian State's account managed by the Ministry of Economy, Trade and Tourism.

In accordance with the provisions of article 2 from OUG 55/19 establishing reorganisation measures for public central administration and amending and adding certain norms, the Ministry of Economy, Trade and Business Environment Relations (MECRMA) was established by reorganising and taking over the activities of the Ministry of Economy, Trade and Tourism that was cancelled while also taking over the activities and structures in the SME domain from the Ministry of Energy, Small & Medium Sized Enterprises and Business Environment.

In accordance with Governmental Emergency Ordinance (OUG) 68/2019 establishing some measures for public central administration and amending and adding certain norms, published in Romania's Official Gazette 898/06.11.2019, beginning with 6 November 2019 the Secretariat General of Government exercises the rights and fulfils the obligations ensuing from the state shareholder capacity for the National Power Grid Company Transelectrica SA.

On 14.11.2019 the Central Depositary SA registered the transfer of 43,020,309 shares (representing 58.69% of the share capital) issued by CNTEE Transelectrica SA from the Romanian State's account through the Ministry of Economy into the Romanian State's account represented by the Government through the Secretariat General of Government, in consequence of applying the provisions of Governmental Emergency Ordinance 68/06.11.2019 establishing some measures for public central administration and amending and adding certain norms.

On 31 March 2022 the shareholders of CNTEE Transelectrica SA are: the Romanian State represented by the Secretariat General of Government that holds 43,020,309 shares (58.69%), NN Group NV holding 4,007,688 shares (5.47%), PAVAL

CNTEE Transelectrica SA

Notes to the stand-alone interim financial statements as of 31 March 2022 (All amounts are expressed in LEI, unless otherwise provided)

HOLDING having 4,753,567 shares (6.49%), other legal person shareholders holding 16,147,255 shares (22.03%) and other natural person shareholders with 5,374,323 shares (7.32%).

At the end of each reporting period the Company's share capital subscribed and fully paid amounting to 733,031,420 is divided into 73,303,142 ordinary shares of 10 Lei/share nominal value each corresponds to the one recorded with the Office of the Trade Register.

The shareholders' structure on 31 March 2022 and 31 December 2021 was the following:

	31 March 2022		31 December 2021
Shareholder	Number of shares	% of the share capital	Number of shares	% of the share capital
Romanian State through the SGG	43,020,309	58.69%	43,020,309	58.69%
Other legal person shareholders	16,147,255	22.03%	16,172,331	22.05%
PAVAL HOLDING	4,753,567	6.49%	4,753,567	6.49%
NN Group NV	4,007,688	5.47%	4,007,688	5.47%
Other natural person shareholders	5,374,323	7.32%	5,349,247	7.30%
Total	73,303,142	100.00%	73,303,142	100.00%

The increase of shareholders' equities on 31 March 2022 compared to 31 December 2021 was mainly determined by registering the net profit achieved amounting to 8,031,880 into retained earnings on 31 March 2022.

8. Deferred revenues

They are mmainly represented by: the connection fee, other investment subsidies, non-returnable European funds collected from the Ministry of European Funds and revenues from the utilisation of interconnection capacities.

On 31 March 2022 deferred revenues were as follows:

	31 March 2022	Of which: Current part on 31.03.2022	31 December 2021	Of which: Current part on 31.12.2021
Deferred revenues – allocation of			7,649,266	7,649,266
interconnection capacities	9,542,882	9,542,882
Deferred revenues – European funds	2,455,848	2,455,848	2,076,417	2,076,417
Funds from the connection fee	264,641,277	14,608,245	260,879,623	14,814,156
European funds	177,095,785	4,701,640	178,667,003	6,137,909
Other subsidies	25,553,072	528,529	25,742,927	903,440
Total	479,288,864	31,837,144	475,015,236	31,581,188

The development of current deferred revenues in January - March 2022 was the following:

	31 March 2022	31 December 2021
Balance at the beginning of the period	31,581,188	28,853,237
Deferred proceeds of the interconnection capacities	23,573,063	38,428,451
Proceeds from European funds	556,031	1,091,813
Transfer from non-current deferred revenues	(2,017,091)	(2,913,635)
Revenues from the utilisation of interconnection capacities	(21,679,447)	(33,452,345)
Revenues from European funds	(176,600)	(426,333)
Total	31,837,144	31,581,188

The development of deferred non-current revenues in January - March 2022 was the following:

	31 March 2022	31 December 2021
Balance at the beginning of the period	443,434,048	352,028,637
Connection subsidies	4,194,529	3,660,512
Non-repayable amounts	-	(93,133,164)
Non-returnable amounts to return	-	-
Transfer into deferred current revenues	5,297,177	203,482,936
Subsidies resumed into revenues	(5,474,034)	(22,604,873)
Total	447,451,720	443,434,048

9. Borrowings

● Non-current loans

On 31 March 2022 the amount of non-current loans diminished in comparison with 31 December 2021, mainly because of repayments made in compliance with existent loan agreements.

Loan movements during the three months' period ended on 31 March 2022 were as follows:

	Currency	Interest rate	Book value	Due date
Balance on 1 January 2022			103,314,496
New drawings			-
Repayments, of which:			(5,955,926)
EIB 25709	EUR	3.596%	(5,955,926)	10-Sep-2025
EIB 25710	EUR	3.856% + 2.847%	-	11-Apr-2028
Exchange rate difference on repayment date			29,635
Balance on 31 March 2022			715.958.91397 ,328,935

On 31 March 2022 & 31 December 2021 the non-current loan balances contracted from credit institutions were as follows:

Description	31 March 2022	31 December 2021
EIB 25709	41,679,685	47,648,371
EIB 25710	55,649,250	55,666,125
Total non-current loans from credit institutions, of which:	97,328,935	103,314,496
Current part of non-current loans	(23,852,195)	(23,859,428)
Total non-current loans, net of current instalments	73,476,740	79,455,068

The non-current part of loans will be repaid as follows:

	31 March 2022	31 December 2021
From 1 to 2 years	23,852,195	23,859,428
From 2 to 5 years	48,197,642	54,168,304
Beyond 5 years	1,426,903	1,427,336
Total	73,476,740	79,455,068

The Company has not applied hedging against risks associated to its liabilities in foreign currency or to its exposure to interest rate risks.

All non-current loans (EIB 25709 and EIB 25710 contracts) bear fixed interest rate.

● Current loans

They are detailed as follows:

	31 March 2022	31 December 2021
Current part of non-current credits	23,852,195	23,859,428
Current bank credit	190,681,621	-
Interest rates of current and non-current loans	1,082,854	1,012,535
Total current loans	215,616,670	24,871,963

● Loans contracted for current activities

On 30.03.2022 Transelectrica concluded the credit contract C624 with Banca Comerciala Romana for 12 months in order to finance the bonus type support scheme for high efficiency cogeneration as account overdraft, in amount of 175,000,000 and interest calculated depending on the reference ROBOR 1M rate, which is added 0% margin and 0.088% fee. The credit line has been secured by means of:

Chattel mortgage on the bank account opened with the bank;
Chattel mortgage on the receivables resulting from contracts on the contribution for high efficiency cogeneration concluded with Electrica Furnizare SA, Enel Energie SA, Enel Energie Muntenia SA, and EON Energie Romania SA.

On 31 March 2022 drawings of 45,568,018 were made from the credit line.

On 10.03.2022 Transelectrica concluded the credit contract C588 with Banca Transilvania for 12 months to finance the Company's current capital, in amount of 200,000,000 with interest calculated depending on the reference ROBOR 1M rate, which is added 0.05% margin.

The credit contract of 200 million Lei has been structured as follows:

175 million Lei revolving credit line used in order to cover temporary needs of current capital to pay the Company's outstanding liabilities in due time, for 12 months utilization until 09.03.2023;
25 million as ceiling to issue bank indeminity deeds, with 12 months' interval to issue deeds which will be valide for 24 months;

The credit line has been secured by means of:

Chattel mortgage on the bank account opened with the bank;
Chattel mortgage on the receivables resulting from contracts on the provision of electricity transmission serv ices and system services concluded with Electrica Furnizare SA, and Enel Energy SA;

On 31 March 2022 drawings in amount of 145,113,602 were made, while the ceiling for indemnity deeds has not been used.

10. Trade and other liabilities

On 31 March 2022 and 31 December 2021 trade and other liabilities were as follows:

	31 March 2022	31 December 2021
Suppliers on the electricity market	1,854,509,527	1,893,042,316
Asset suppliers	101,185,329	158,369,109
Suppliers of other activities	43,484,372	38,990,780
Amounts owed to employees	8,525,300	8,675,618
Other liabilities	1,163,034,809	965,489,650
Total	3,170,739,337	3,064,567,473

On 31 March 2022 and 31 December 2021 liabilities on balance on the electricity market amounted to 1,854,509,527, namely to 1,893,042,316 and provided the following structure:

	31 March 2022	31 December 2021
Suppliers on the electricity market, of whom:
- Suppliers - operational activity	1,413,325,707	1,125,210,670
- Suppliers - on the balancing market	224,593,217	549,941,350
- Suppliers - bonus type support scheme to promote high efficiency cogeneration	216,590,603	217,890,296
Total	1,854,509,527	1,893,042,316

Suppliers on the electricity market are mainly represented by: IBEX, Hidroelectrica SA, OPCOM, MAVIR, Electrocentrale Bucharest SA, Energy Complex Oltenia SA, Joint Allocation Office, CIGA Energy SA, CINTA Energy SA, and Electrica Furnizare SA. On 31 March 2022 their share in the total electricity suppliers was about 88.60%.

The higher balance of "liabilities associated to operational activities" was mainly determined by paying in second quarter of 2022 the payment liabilities on balance on 31 March 2022, mainly resulted from electricity markets coupling.

The lower balance of "liabilities associated to the balancing market" was determined by a lower volume of transactions registered on the balancing market in the first quarter of 2022, as compared to the fourth quarter of 2021.

The decrease of "liabilities associated to the support scheme" to suppliers (producers) was determined by lower amounts of monthly bonuses for high efficiency cogeneration in March 2022 compared to December 2021.

On 31 March 2022 payment liabilities were registered to suppliers (producers) in amount of 35,549,294 (RAAN – 32,180,328 and CET Govora SA – 3,368,966), representing monthly cogeneration bonuses, ex-ante overcompensation of 2014 and 2015, unpaid bonus in 2015. The amounts representing Company liabilities under the support scheme to RAAN and CET Govora were withheld for payment according to article 17 para 5 of Order 116/2013 of ANRE president, because suppliers (producers) register payment liabilities to the Company under the bonus type support scheme.

The Company requested the suppliers (generators) that did not pay the overcompensation invoices the agreement to compensate mutual liabilities at their minimum by means of the Institute of Management and Informatics (IMI), which is uniformly managing all information received from tax-payers according to HG 685/1999.

Generators (RAAN and CET Govora) did not agree with this manner of extinguishing mutual receivables and liabilities, therefore the Company has applied and further applies article 17 para 5 from Order 116/2013 of ANRE President approving the Regulation establishing the collection mode of the contribution for high efficiency cogeneration and the bonus payment for electricity generated under high efficiency cogeneration: "in case the generator did not make the payment in full to the support scheme administrator for its payment obligations resulted in accordance with the provisions of this Regulation, the support scheme administrator pays to the producer the difference between the producer invoices and its payment obligations under the support scheme, with explicit mention of the respective amounts on the payment document" and withheld from payment the due amounts under the respective support scheme.

CNTEE Transelectrica SA concluded with CET Govora SA an agreement to compensate and spread out the payment of amounts representing receivables from the 2011-2013 overcompensation and the 2014 undue bonus (Agreement C 135/30.06.2015 and Addendum 1/04.08.2015). The Agreement term was about 1 year (July 2015-August 2016) and it provided the Company's right to calculate and cash penalties during payment spread-out.

In accordance with such Agreement the Company's receivables collectable from CET Govora SA were compensated with its liabilities to CET Govora SA, represented by cogeneration bonuses for May 2014 – October 2015 amounting to 40,507,669, withheld by applying the provisions of article 17 para 5 from Order 116/2013 of ANRE President and the Agreement provisions.

Since ANRE Decision 738/28.03.2014 was suspended by court civil judgment 3185/27.11.2015, which had determined the 2011-2013 overcompensation, CET Govora SA has no longer complied with the Agreement terms. Beginning with 9 May 2016 the general insolvency procedure was initiated for CET Govora. Taking into account the provisions of the Insolvency Law 85/2014 the Company ceased, beginning with 9 May 2016, to apply the provisions of article 17.5 from Order 116/2013 of ANRE President approving the Regulation establishing the collection mode of the contribution for high efficiency cogeneration and the payment mode of the bonus for electricity generated under high efficiency cogeneration and pays monthly the cogeneration bonus owed to CET Govora. Civil ruling 2430/05.10.2016 of the High Court of Cassation and

CNTEE Transelectrica SA Notes to the stand-alone interim financial statements as of 31 March 2022

(All amounts are expressed in LEI, unless otherwise provided)

Justice admitted the appeal filed by ANRE against civil ruling 3185/27.11.2015, partly cancelled the sentence appealed against and denied the suspension request of CET Govora. Thus, beginning with 05.10.2016 the effects of ANRE Decision 738/28.03.2014 are no longer suspended, bearing full effects.

Under such circumstances the Company applies the provisions of article 17 para 5 of ANRE Order 116 / 2013 for mutual receivables and liabilities accrued after the insolvency procedure, meaning withholding the bonus due to CET Govora SA up to the concurrence of amounts related to the support scheme that were not paid to the Company.

The lower balance of "asset suppliers" on 31 March 2022 against 31 December 2021 was due to payments reaching due dates.

The liabilities to "suppliers of other activities" are mainly represented by liabilities related to services provided by third parties which did not reach due dates, but are higher compared to 31 December 2021.

On 31 March 2022 the Company did not register outstanding liabilities to suppliers, the state budget or local institutions.

Liabilities registered under "other liabilities" are structured as follows:

	31 March 2022	31 December 2021

Sundry creditors Client - creditors	8,820,573 1,068,098,197	145,712,314 751,982,307
Dividends to pay	196,510	234,188
Liabilities - Current building lease	8,321,573	8,273,431
Liabilities - Non-current building lease	20,803,932	22,751,934
Other liabilities	56,794,024	36,535,476

Total	1,163,034,809	965,489,650

"Sundry creditors" amounting to 8,820,573 on 31 March 2022 mainly represent: 4,667,369 solution study contracts for RET connection; 41,329 studies for synchronous interconnection of the power systems from Ukraine and Republic Moldova with the European continental system; 1,371,458 royalty of quarter 1, 2022 and others.

"Client creditors" on 31 March 2022 amounted to 1,068,098,197, of which 1,068,369,123 represent deferred amounts from OPCOM (942,223,469), MAVIR (118,057,936) and IBEX (8,087,718) by transactions under price-coupling mechanisms: ICP (Interim Coupling Project), SIDC (Single Intraday Coupling) and SDAC (Single Day-ahead Coupling).

On 31 March 2022 unpaid dividends owed to Company shareholders amounting to 196,510. These amounts are at the shareholders' disposal by means of the transfer agent.

On 31 March 2022 the liability for assets representing rights of use under a lease - buildings, according to the provisions of IFRS 16 – Leasing Contracts amounted to 29.125.505, of which:

Current liability: 8,321,573;
Non-current liability: 20,803,932.

"Other liabilities" amounting to 56,794,024 are mainly represented by the performance bonds of contracts on the electricity market that CNTEE Transelectrica SA concluded in amount of 33,843,183; non-demandable VAT in the reporting period amounting to 22,734,001 and others.

Provisions

On 31 March 2022 and 31 December 2021 provisions were as follows:

	31 March 2022	31 December 2021
Provisions for disputes	20,508,042	31,199,387
Provisions for mandate contracts	18,430,241	20,478,148
Other provisions	7,390	11,425
TOTAL	38,945,673	51,688,960

Provisions for disputes on balance on 31.03.2022 amounting to 20,508,042 are mainly represented by provisions constituted for the following disputes:

File 36755/3/2018 - claimant Conaid Company SRL (17,216,093) – more details on this file are provided in Note 19 – Disputes and contingencies.

File 3083/3/2020 - claimant NUCLEARELECTRICA SA (1,472,785)

On 26.06.2020 Nuclearelectrica summoned the Company to court in order to pay 1,290,533.156 Lei representing negative imbalance and 182,251.94 Lei as legal interest.

After several terms when the case was deferred (26.06.2020, 16.10.2020, 11.12.2020) for various reasons, on the 22.12.2020 term the Instance compelled the Company to pay the claimant 1,290,533.156 Lei as compensatory damage, and upon such payment updating this amount by the inflation rate of 27.09.2018 until actual payment; to pay 182,251.94 Lei as penalty legal interest calculated as of 27.09.2018 until 31.01.2020, and to further pay the penalty legal interest calculated as of 01.02.2020 until actual payment. It also compelled the defendant to pay the claimant 23,441.66 Lei as law suit expenses, consisting of judiciary stamp tax. It denied as groundless the defendant's request to be paid law court expenses. Appeal right was granted within 30 days from notification. (Ruling 2698/2020 22.12.2020).

CNTEE Transelectrica SA filed appeal. At the 25.11.2021 hearing session the Appeal Court Bucharest admitted the appeal. It partly changed the civil ruling appealed against, meaning: It denied the summons as groundless. It maintained the first instance's provision to deny as groundless the defendant's request for law court expenses. It compelled the intimatedclaimant to pay to the appelant-defendant 20,591.66 as appeal court expenses. Appeal right was granted within 30 days from notification, to be submitted to the Appeal Court Bucharest, Section VI Civil.

Nuclearelectrica filed appeal, which is under filter.

"Provisions for mandate contracts" amounted to 18,430,241 on 31 March 2022, and represented the remuneration of executive and non-executive administrators (variable component of the allocated OAVT packages not capitalised during mandate terms executed in 2013-2017).

"Other provisions" in amount of 7,390 mainly represent holidays not taken.

11. Other tax and social security liabilities

On 31 March 2022 and 31 December 2021 other tax and social security liabilities comprised:

	31 March 2022	31 December 2021
Contribution to social security funds	8,054,926	10,987,591
Salary tax	1,597,491	1,966,512
Other payable taxes	1,331,447	1,369,558
Total	10,983,864	14,323,661

On 31 March 2022 the Company registered payment liabilities for contributions to the social security funds, salary tax and other taxes, which were due and paid in April 2022.

12. Income tax

The Company's current and deferred income tax is determined at 16% statutory rate.

The income tax expense in the first quarter 2022 and first quarter 2021 was the following:

	Q I 2022	Q I 2021
Current income tax	3,256,882	13,915,613
Deferred income tax	(727,791)	(1,467,590)
Total	2,529,091	12,448,023

13. Operational revenues

They comprise the revenues which were obtained by the Company's provision of transmission and system services on the electricity market, allocating the interconnection capacities, balancing market operation services and other revenues.

Tariffs approved by ANRE for services provided on the electricity market in quarter 1 2022 and quarter 1 2021 were as follows:

	Average transmission tariff	System service tariff
Order 124/25.11.2021 for 01 January – 31 March 2022	23.96	9.32
Order 10/24.02.2021 for 01 March – 31 March 2021	20.55	10.82
Order 214/09.12.2020 for 01 January – 28 February 2021	20.55	11.96

The average electricity transmission tariff has two components: tariff for electricity injection into the grid (TG) and tariff for electricity extraction from the grid (TL).

Zone tariffs of transmission services introducing electricity in the grid (TG) and extracting electricity from the grid (TL) were approved by ANRE Order 124/2021 beginning with 01 January 2022.

The electricity quantity delivered to consumers, where tariffs were applied for services provided on the electricity market was the following:

	Q I 2022	Q I 2021
Electricity quantity delivered to consumers (MWh)	14,345,315	14,925,052

Operational revenues achieved in quarter 1 2022 and in quarter 1 2021 were as follows:

	Q I 2022	Q I 2021
Transmission revenues	342,653,430	305,622,731
Revenues from the allocation of interconnection capacities	69,590,515	10,388,921
Reactive electricity revenues	554,686	121,252
Inter TSO Compensation (ITC) revenues	211,248	327,691
Revenues of CPT transactions	5,782,250	6,140,169
Transmission revenues – total	418,792,129	322,600,764
Revenues from technological system services	134,053,961	173,135,187
Revenues with unplanned exchanges on the DAM	-	74,318
Revenues of unplanned/scheduled exchanges-FSKAR-Ukraine	7,532	-
System service revenues – total	134,061,493	173,209,505
Balancing market revenues	665,038,635	220,223,106
Other revenues	12,611,174	10,281,649
Total revenues	1,230,503,431	726,315,024

Transmission revenues

They registered increase in amount of 37,030,699 in quarter 1, 2022 compared to quarter 1, 2021, as determined by higher average transmission service tariffs approved by ANRE (according to the fore-mentioned ANRE-approved tariffs in previous time periods) when the electricity quantity delivered to consumers decreased 3.88%, namely 579,737 MWh.

Revenues from the allocation of interconnection capacities

They increased in amount of 59,201,594 in quarter 1, 2022 compared to quarter 1, 2021 as corresponding to the utilisation of available interconnection capacities by traders on the electricity market.

The market allocating the interconnection capacities is fluctuating and prices develop depending on the demand and need of electricity market participants to procure interconnection capacity. The increase during the studied period was due both to the unit electricity price grown in all the European Union, determining a great price difference between coupled markets and to the electricity deficit registered Europe-wide. Implicit allocations provide capacity and electricity simultaneously and are strongly influenced by the electricity price variations on European exchanges.

The allocation mechanism of interconnection capacities consists in organising annual, monthly, daily and intraday bids. The annual, monthly and intraday bids (only on the Serbian border) are explicit as only the transmission capacity is auctioned, while the daily ones (Hungarian and Bulgarian borders) are implicit and capacity is simultaneously allocated with electricity through the coupling mechanism.

Since beginning with 19 November 2014 a regional power exchange was established by Romania, Hungary, the Czech Republic and Slovakia, the assumption is to have these four countries reaching to a single electricity price transacted on spot markets. Capacity allocation between Romania and Hungary, the only country of the other 3 Romania has frontier with is carried out by transporters: Transelectrica and MAVIR by common mechanism under a bilateral agreement. On 17 June 2021 Romania's Day-Ahead Market began operating under European coupling mechanism, having once implemented the DE-AT-PL-4M MC project, also known as Interim Coupling; thus the Romanian - Hungarian border was integrated into the single day-ahead markets coupling (SDAC). Beginning with 27 October 2021 the Romanian - Bulgarian frontier was integrated into the single day-ahead markets couplin (SDAC), and the cross-border capacity between Romania and Bulgaria is implicitly allocated.

Beginning with 2016 the UIOSI principle was implemented on the Bulgarian border and from 2017 onward on the Serbian border as well. In accordance with such principle market participants that do not use the capacity they had won at annual and monthly bids are remunerated (by Transelectrica) for this capacity. The unused capacity is later sold under daily bids.

Beginning with November 2019 the 2nd wave was launched under the single European solution for intraday markets coupling (SIDC – Single Intraday Coupling). The single intraday markets coupling mechanism provides continuous harmonisation (matching) of sale and purchase offers from market participants of a bidding zone with the sale / purchase offers within their own bidding zones and any other bidding zone where cross-border capacity is available. Thus, explicit intraday bids are performed only on the Serbian border, being implicit on the Bulgarian and Hungarian frontiers (within SIDC).

Net revenues from the allocation of interconnection capacities are utilised in accordance with the provisions of ANRE Order 171/2019 and of Regulation (EU) 943/2019 regarding the internal electricity market as financing source of investments to upgrade and develop the interconnection capacities with neighbouring systems.

Revenues of CPT transactions

Such CPT transaction revenues were mainly achieved by selling the excess electricity on the Intraday Market managed by OPCOM and by BRP CIGA ENERGY on the Balancing Market. Such revenues were smaller by 357,919 in the first quarter of 2022 compared to the first quarter of 2021.

Revenues from technological system services

Such revenues registered decrease in amount of 39,081,226 in quarter 1, 2022 compared to quarter 1, 2021 as determined both by a diminished tariff approved by ANRE for such services (according to the fore-mentioned ANRE-approved tariffs in previous time periods) and by the 3.88% reduced electricity quantity delivered to consumers, namely by 579,737 MWh.

Technological system service activities have got specific regulatory framework, which contains regularising mechanisms that compensate the revenue excess or deficit compared to the expenses necessary to carry out such activities. Thus, in accordance with ANRE's regulations, the revenue surplus / deficit compared to recognised costs resulting from these activities will be compensated by ex-post (negative/positive) tariff correction applied by ANRE into the tariff of years following that when such surplus / deficit was recorded. The revenue surplus / deficit against costs resulting from such activities are calculated during tariff scheduling periods.

Balancing market revenues

They increased in amount of 444,815,529 in quarter 1, 2022 compared to quarter 1, 2021, mainly determined by the following issues:

Regulatory issues:

Bidding limits were removed from the balancing market according the Regulation on the balancing market operation and settlement and the Regulation to schedule dispatchable generators, dispatchable consumers and dispatchable storage installations approved by ANRE Order 61/31.03.2020;
Eliminating the obligation to participate on the balancing market according to the Regulation to calculate and settle the imbalances of balancing responsible parties – single imbalance price and amending certain Orders of the President of the National Regulatory Authority in the Energy domain, approved by ANRE Order 213/25.11.2020;
The balancing market adopted the settlement interval of 15 minutes;
Beginning with 1 February 2021 a single settlement price has been applied on the balancing market;
Beginning with 01 June 2021 a new set of common settlement rules was applied for electricity scheduled and unplanned exchanges (FSKAR calculation methodology – Financial Settlement of k△f, ACE and Ramping Period) which provides financial settlement between Transmission System Operators thus removing the compensations in kind determined according to ENTSO-E's methodology by the Settlement Centres of Brauweiler (Germany) and Laufenburg (Switzerland), which CNTEE Transelectrica SA transacted on the Day-Ahead Market. Settlement Centres will transmit the results to each Transmission System Operator as daily files with scheduled and unpalnned exchanges (quantities – prices) calculated for such Transmission System Operator and each settlement interval. The established price is the weighted average of transaction prices on the Day-Ahead Markets of all ENTSO-E member states, such prices being expressed in Euro/MWh. Costs and revenues pointed out in JAO's invoice regarding settlement of electricity from unplanned exchanges will be included in the settlement calculation of the Balancing Market according to the provisions of ANRE Order 33/2021 amending and adding the Regulatlion to calculate and settle imbalances of balancing responsible parties – single imbalance price, approved by ANRE Order 213/2020.

Revenues, namely expenses related to scheduled electricity exchanges (FSKAR-FCP-EU) and unplanned electricity exchanges (FSKAR-EU) are registered under balancing market revenues, namely balancing market expenses taking into account the changed settlement rules for imbalances on the electricity market, as the scheduled and unplanned electricity exchanges are integrated into the settlement mechanism of the balancing market;

Beginning with 01 January 2022 imbalance compensation rules are applied between all TSO-s according to the IN (Imbalance Netting) Platform. In this respect the European platform became operational as of 01.01.2022, the International Grid Control Cooperation (IGCC) or IN (Imbalance Netting) Platform to compensate imbalances of all TSO-s providing automatic frequency restoration based on part IV of Regulation (EU) 2017/1485.

Mention should be made the International Grid Control Cooperation (IGCC) is the project selected in 2016 by ENTSO-E to become the future European imbalance netting platform, as defined in the Commission Regulation (EU) 2017/1485 of 02 August 2017 establishing a guideline on electricity system operation (article 22). The IGCC initiative was launched in 2010 by German operators and later was extended in central European systems, representing an optimisation of the frequency-control power secondary control by reducing the contrary actions of regulators of member operators, thus resulting an optimised utilisation of the Frequency Restoration Reserve with automatic activation (aFRR), overall.

Market operation issues:
- The contracting mode on the local and regional markets previous to the balancing one;
- The development of the average price registered on the balancing market;
- The development of hydraulic capacity;
- The development of the electricity generation and load;
- The development trend of CO² certificates;
- The common settlement rules for scheduled electricity exchanges and the common settlement rules for unplanned electricity exchanges according to the provisions of Regulation (EU) 1485/2017 establishing a guideline on electricity system operation and Regulation (EU) 2195/2017 establishing a guideline on electricity balancing;

The regulations implemented in the national legislation according to the provisions of Regulation (EU) 2019/943 of the European Parliament and Council of 5 June 2019 regarding the electricity market, the settlement made at 15 minutes', the application of the single settlement price on the balancing market, the European development context of the electricity market, the development of CO2 certificate prices and the management of Covid-19 spreading country-wide had and will still have significant impact on the balancing market revenues / costs.

The regulatory framework specific for balancing market administration contains regularising mechanisms that compensate the revenue excess or deficit compared to the expenses necessary to carry out such activities. Thus, in accordance with ANRE's regulations the non-null monthly balances (revenue surplus / deficit) resulted from these activities will be compensated by means of ex-post (negative / positive) tariff correction, which ANRE applies to the tariff of years following that when such balances were recorded.

14. System operation and balancing market expenses

Expenses made in the first quarter of 2022 compared to the first quarter of 2021 were as follows:

	Q I 2022	Q I 2021
Expenses regarding one's technological consumption	255,366,490	93,444,473
Congestion expenses	157,055	177
Expenses for electricity consumption in RET substations	11,783,383	6,017,688
Expenses regarding functional system services	-	3,905,056
Inter TSO Compensation (ITC) expenses	6,236,501	5,378,925
Total operational expenses	273,543,429	108,746,319
Expenses regarding technological system services	121,301,215	143,061,438
Balancing market expenses	657,086,973	212,154,838
Total	1,051,931,617	463,962,595

Expenses regarding one's technological consumption

They are expenses made to purchase electricity from the free electricity market, namely the Centralised Market of Bilateral Contracts (PCCB), the Day-Ahead Market (DAM), the Balancing Market (PE) and the Intraday Market (PI) in order to cover one's own technological consumption (CPT / losses) within RET.

Such expenses regarding one's technological consumption were higher by 161,922,017 in quarter 1, 2022 compared to quarter 1, 2021 taking into account some issues such as:

Given its characteristics one's Technological Consumption (CPT) in the Electricity Transmission Grid (RET) strongly depends on meteorological conditions, the electricity generation & consumption structure nation-wide, on the distribution of electricity flows in the internal transmission network and on interconnection lines with neighbouring power systems, its value being very little controllable or even not at all, given the regional interconnected and coupled electricity market;
Market unpredictibility was manifest by fast great price increase as a result of EU de-carbonation policies, in the context of higher prices for carbon emission certificates, of insufficient electricity generating capacities to replace output based on fossil fuel, especially coal; in the context of market liberalisation, the war in Ukraine, the absent competition between generators and absent competition of suppliers when purchasing electricity in order to carry out their contracts with many clients that selected the free market;
The current situation of prices on the wholesale electricity market is fundamentally different from the circumstances of quarter 1, 2021 and from previous years. This difference is outstanding and obvious all over the European continent, not only in Romania. In this respect the wholesale electricity prices can be noticed in development on the European spot market, in the context of international circumstances. The European situation deteriorated rapidly since the beginning of the year, with an unprecedented energy stress especially for electricity and natural gas, which constitutes fuel to generate electricity;
The average electricity price procured on the DAM was 1,084.73 Lei, more than four times higher in January March 2022 compared to the same period of 2021, significantly exceeding the values registered these last years. The same trend is noticed Europe-wide, hich has significant impact on the costs recorded in order to cover CPT;
The legislative changes occurred on the balancing market (removing the price limits of offers on the balancing market, eliminating the obligation to participate on the balancing market, the application of a single settlement price on this market and the settlement interval of 15 minutes) have led to higher average electricity prices procured on the Balancing Market;

Congestion expenses

Congestions (network restrictions) are electricity transmission demands beyond the technical capacity limits of the network, requiring corrective actions of the transmission system operator; they occur whenever, during operation scheduling or real

CNTEE Transelectrica SA Notes to the stand-alone interim financial statements as of 31 March 2022 (All amounts are expressed in LEI, unless otherwise provided)

time operation the power flow between two system nodes or zones leads to incompliance with the security parameters in the operation of a power system.

In the fist quarter of 2022 congestion expenses amounting to 157,055 were recorded, mainly determined by:

Congestions registered in January 2022, which required reduced output in certain wind power parks of south-eastern Romania caused by the power transit through SEN from Bulgaria to Hungary and Ukraine, overlapped by very high WPP generation. They determined very great power flows on the 400 kV OHL Smardan – Gutinas and on several lines from Moldova and Transylvania, and in certain cases even on north-southern SEN, exceeding the admissible flow values of characteristic sections 5 and 6 from SEN.

Expenses for electricity consumption in RET substations

CNTEE Transelectrica SA has to procure electricity to cover the consumption for auxiliary services in high voltage electricity substations managed by the Company, with a view to provide safe electricity transmission in electric substations and secure operation of the National Power System (SEN).

Such expenses grew by 5,765,695 the first quarter of 2022 compared to the first quarter of 2021, increase owed to higher electricity procurement prices, as well as to the legislative changes applicable as of 01 July 2021, namely the provisions of ANRE Order 82/2021.

Inter TSO Compensation (ITC) expenses

They represent monthly payment obligations / collection rights of each transmission system operator (TSO). Such expenses are established under the compensation / settlement mechanism for the effects of using the electricity transmission network (RET) for electricity transits in-between TSOs of the countries that have adhered to such ENTSO-E mechanism. In quarter I 2021 ITC expenses were 857,576 higher compared to the same period of last year.

Expenses regarding technological system services

The Company procures such services from generators with a view to provide secure SEN operation and qualitative electricity transmitted at parameters required in technical applicable norms, based on the needs established by the National Power Dispatcher (organisational unit of the Company) that is responsable for the stable secure operation of SEN.

Such services are procured both under competitive and under regulated regime (according to the Decisions issued by the National Regulatory Authority in Energy) in case of reactive electricity reserves.

Technological system services are procured under competitive regime by means of daily auctions according to the provisions of Regulation (EU) 2019/943 of the European Parliament and Council of 5 June 2019.

In the first quarter of 2022 technological system services were contracted under regulated regime only for reactive electricity according to ANRE Decision 1078/2020, being provided by the Company Generating Electricity in Hydropower Plants Hidroelectrica SA.

Expenses regarding technological system services decreased in amount of 21,760,223 in quarter 1, 2022 compared to quarter 1, 2021. Procurement prices of system services on the competitive market in quarter 1, 2022 were around the following values:

Average procurement price of secondary control reserves at 79.10 Lei/hMW;
Average procurement price of fast tertiary control, power upgrade at 43.80 Lei/hMW;
Average procurement price of fast tertiary control, power downgrade at 9.42 Lei/hMW;

Also in quarter 1, 2022 a high concentration was manifest on the technological system services market for secondary reserve (RS).

For the following intervals of 2022 estimations are technological system services will be procured by daily auctions per direction according to the provisions of Regulation (EU) 2019/943 of the European Parliament and Council of 5 June 2019, while the developments of ANRE's regulatory framework for electricity procurement will have significant impact on the costs to procure system services within CNTEE Transelectrica SA.

Balancing market expenses

Such expenses made in quarter 1, 2022 amounted to 657,086,973 and were 444,932,135 higher than those made in quarter 1, 2021. These expenses result from the notifications / achievements of market participants .

15. Personnel expenses

	Q I 2022	Q I 2021
Expenses with employees' salaries	54,433,825	49,141,166
Social expenses	544,019	424,468
Tickets granted to employees	2,254,000	2,266,980
Expenses under the mandate contract and other committees,
commissions	979,683	1,025,127
Social security and protection expenses	4,649,984	5,264,320
Provisions constituted for salary and assimilated expenses	(2,051,943)	(9,296,339)
Other expenses	51,601	155,380
Total	60,861,169	48,981,102

Total personnel expenses made in quarter 1, 2022 registered increase compared to quarter 1, 2021, mainly determined by the variation of certain expense items such as: higher personnel salaries and social expenses, and resuming parts of the constituted provisions into revenues together with payments made for OAVT certificates (OAVT = remunerations of executive and non-executive administrators consisting of variable component of OAVT packages allocated and not capitalised during the mandate terms executed in 2013-2017), and payments made under enforceable court orders the Company received.

16. Other operational expenses

	Q I 2022	Q I 2021

Other expenses with services provided by third parties	16,991,918	15,825,046
Postal expenses and telecommunication fees	93,669	181,594
Royalty and rent expenses	1,464,078	1,435,271
(Net) operational expenses with impairment allowance of current assets	572,028	45,351
Other expenses, of which:	2,349,459	19,225,129
- (Net) expenses for provisions for other operational expenses	(10,707,454)	(6,264,513)
- OAVT expenses according to court rulings	1,787,623	9,419,836
- Tax and charge expenses (ANRE tax, natural monopoly tax, other	4,810,188	7,548,295
local taxes and charges)	1,454,224	1,419,009
- International subscription expenses
- Electricity procured for administrative utilisation	1,306,024	141,662
- Expenses for natural gas procured	882,327	490,321
- Travel expenses	637,201	679,618
- Merchandise expenses	405,177	247,010
- Sponsorship expenses	400,820	43,920
- Personnel transportation expenses	347,939	321,349
- Fine and penalty expenses, mainly from disputes	316,631	2,849,793
- Other fiscalyl non-deductible operational expenses	51,390	1,539,089
- Other operational expenses	657,369	789,740
Total	21,471,152	36,712,391

In the first quarter of 2022 such expenses diminished in amount of 15,241,239 compared to the first quarter of 2021, mainly determined by the variation of certain expense items such as:

Certain provisions constituted for disputes were resumed into revenues;
Certain expense items were diminished, such as: OAVT expenses paid under enforceable court rulings (performance bonus associated to OAVT Certificates granted to former executive and non-executive members and not capitalised by them, remuneration according to mandate contracts concluded in 2013 – 2017), tax and charge expenses, fines and penalties under existent disputes, etc.;
Certain expense items increased, such as: electricity procured for administrative consumption, expenses for natural gas procured, etc.

17. Net financial result

	Q I 2022	Q I 2021
Interest revenues	244,734	628,881
Revenues from exchange rate differences	1,412,283	1,165,626
Other financial revenues	26,645	24,365
Total financial revenues	1,683,662	1,818,872
Interest expenses	(1,672,751)	(1,131,285)
Expenses from exchange rate differences	(2,103,845)	(2,068,947)
Total financial expenses	(3,776,596)	(3,200,232)
Net financial result	(2,092,934)	(1,381,360)

On 31 March 2022 the Company registered net financial result (loss) amounting to 2,092,934 which is 711,574 higher than that recorded in the same period of 2021. It was mainly mainly influenced by interest rates applied during the studied interval, but also by the development in the exchange rate of the national currence against foreign currencies the Company has contracted bank loans to finance its investment programmes.

On 31 March 2022 in the total amount of 1,672,751 (interest expenses) 291,549 represent interest calculated for assets representing rights of use under a lease - buildings according to the provisions ofIFRS 16 – Leasing contracts.

The national currency's exchange rate on 31 March 2022 compared to that on 31 March 2021 was the following:

Currency	31.03.2022	31.03.2021
Lei / Euro	4.9466	4.9251
Lei / US Dollar	4.4508	4.1969

18. Disputes and contingencies

i) Disputes in progress

The managerial team regularly analyse the ongoing disputes, and after consulting with legal representatives decide the need to create provisions for the amounts involved or their mention in the financial statements.

Taking into account the existing information the Company's management believes there are no significant ongoing disputes in which the Company is defendant, except for the following ones:

• NATIONAL AUTHORITY FOR NUCLEAR ACTIVITIES (RAAN)

On the docket of Mehedinti Tribunal, Civil Section II, Administrative and Fiscal Disputes Section file no. 3616/101/2014 was recorded, involving the "claims in the amount of 1,090,831.70, value of invoice no. 1300215/31.12.2013", a file in which the Company is defendant and claimant - the National Authority for Nuclear Activities RAAN.

Civil ruling 127 pronounced on 10 October 2014 by Mehedinti Tribunal admitted the request filed by claimant RAAN and ordered CNTEE Transelectrica SA to pay the amount of 1,090,831.70 Lei, the value of invoice 1300215/31.12.2013.

The Company filed appeal and requested the Law Court to decide in the ruling to be pronounced to admit the appeal as filed, to cancel the decision and sentences appealed against, refer the case to the territorial competent court for judgment, and to ascertain fulfilment of requirements from articles 1616-1617 of the Civil Code, reason for which it was also required to declare the occurrence of mutual debts compensation and their redemption up to the smallest amount among them, namely the total amount requested by the claimant in the application for summons, ordering the appeal - claimant to pay the expenses made with this appeal.

The appeal was registered on the docket of the High Court of Cassation and Justice that decided to reverse decision 843/2015 and to remand the case for retrial to the same court, the Appeal Court Craiova.

Ruling 124/2017 of the Appeal Court Craiova admitted the appeal filed by Transelectrica and cancelled sentence 127/2014 pronounced by Mehedinti Tribunal, while the case was referred for retrial to Bucharest Tribunal, Section VI Civil. On the

CNTEE Transelectrica SA

Notes to the stand-alone interim financial statements as of 31 March 2022 (All amounts are expressed in LEI, unless otherwise provided)

docket of the Bucharest Tribunal the case was registered under no. 40444/3/2017 which by civil ruling 4406/04.12.2017 admitted the request filed by RAAN and ordered Transelectrica to pay the amount of 1,090,831.70 Lei. The sentence was appealed against. Hearing term was established on 13.12.2018.

In 2014-2015 the Company withheld for payment the bonus owed to RAAN under the support scheme according to the provisions of ANRE regulations, namely article 17 para 5 from Order 116/2013 of ANRE president.

Under such circumstances RAAN calculated penalties for late payment of the due cogeneration bonus amounting to 3,496,914, withheld from the payment by the Company on account of non-cashed receivables. The Company refused paying the amount of 3,496,914 and did not register it as liability in the support scheme.

File 9089/101/2013/a152 pertains to contesting the additional Receivables Table against debtor RAAN, the litigated amount being 89,360,986 Lei.

Transelectrica SA was recorded in the table of debtor RAAN with only 11,264,777 Lei, under receivables resulting from continued activities of such debtor but the amount the Company requested was 89,360,986 Lei. The sum of 78,096,209 Lei was not registered in the preliminary receivables table because "it does not appear as owed amount in the accounting books of RAAN". Moreover the judiciary liquidator considered the request to register in the table the sum of 78,096,209 Lei has been executed late as it pertained to 2011 – 2013, for which reason the receivable statement should have been made when the insolvency procedure had been instituted, namely on 18.09.2013. Contestation of the preliminary Receivables Table was submitted within the legal term and Mehedinti Tribunal admitted the accounting expertise evidence.

On the 14.06.2018 term case judgment was suspended until settlement of file 3014/2/2014 found on the docket of the ICCJ, and on 14.02.2019 Mehedinti Tribunal decided joining file 9089/101/2013/A152 to file 9089/101/2013/a140 (pertaining to claims – payment request). Thus file judgment was postponed because the court considered it useful for case settlement to submit Civil ruling 2969/26.09.2018, pronounced by the High Court of Cassation and Justice under file 3014/2/2014, with respect to cancelling decision 743/2014 of ANRE President.

The settlement of Mehedinti Tribunal by Ruling 163 / 20.06.2019 was: It admitted the exception of decline. It partly admitted the main issue and associated contestation. It compelled defendant RAAN to pay to claimant Transelectrica the amount of 16,950,117.14 Lei accrued during the procedure, judging to record it in the creditors' table constituted against debtor RAAN. The other associated demands were denied. In accordance with article 453 para 2 from the Civil Procedural Code it compelled the defendant to pay 1000 Lei law court expenses to the claimant. Appeal right was granted. It was pronounced at public hearing. Document: Ruling 163/20.06.2019.

On the 06.11.2019 term the Appeal Court Craiova denied the appeal of Transelectrica as groundless. This final decision was pronounced under ruling 846/06.11.2019.

Transelectrica filed review request for contradictory rulings, registered under file 1711/54/2019 with hearing term on 25.03.2020 in the Appeal Court Craiova, which will refer the file to the High Court of Cassation and Justice for competent settlement.

On 26.03.2020 the hearing termen was changed and the following one was set on 21.05.2020.

On 21.05.2020 the case was taken out of the docket under the following settlement: the exception of material incompetence of the Appeal Court Craiova was admitted and the decision was taken to refer the case to ICCJ, Administrative and Fiscal Disputes Section; Ruling 140/21.05.2020. Term 03.02.2021.

On the 03.02.2021 hearing term ICCJ admitted the exception of tardive review request and did no longer pronounce on its inadmissibility.

Also, there are other 4 files between RAAN and Transelectrica under various court judgment stages.

Under RAAN's bankruptcy file 9089/101/2013 Mehedinti Tribunal established on 11.06.2020 to defer the case. Settlement in brief: a term was granted to continue liquidation procedures, to represent the debtor's interests in the disputes found on the dockets of law courts, to consolidate the creditors' list, to continue measures to recover receivables, to continue public auctions pertaining to capitalising the debtor's assets.

On the 14.10.2021 hearing term the case was deferred, settlement in brief being: "It granted term to continue the procedure, namely capitalize the assets and perform the other liquidation operations".

On the 10.02.2022 hearing term the case was deferred, settlement in brief being: "to carry on the procedure, namely capitalise the assets, collect receivables and perform the other liquidation operations. The parties will be summoned by BPI" and the next term was established on 02.06.2022.

• ROMANIA'S COURT OF AUDIT

Following an inspection performed in 2013, the Court of Audit issued several measures to be implemented by the Company as a result of some deficits, which were detected upon such control. The decision and protocol issued by the Court of Audit have been appealed before the Appeal Court of Bucharest, file 1658/2/2014 being constituted, pertaining to "cancellation of control deeds" – Conclusion 7/20.02.2014 issued by the Court of Audit.

On 13.06.2018 the claimant's suit was partly admitted. It cancelled a part of conclusion 7/20.02.2014, decision 37/9.12.2013 and the audit report 35521/6.11.2012 issued by the defendant with respect to the measures in the above decision indicated in points I.1, I.3, I.6, I.8, I.11, II.14, II, 15, II.17, II.18, II.20, II.21, II.22 and partially the measure of pt. II.13, meaning to remove the phrase "including what has been found about the invoices issued by FLOREA ADMINISTRARE IMOBILIARA SRL". The court rejected the remainder of the claimant's request as groundless. It standardised the electric power expertise report executed for this case by expert Toaxen Vasile. It compelled the defendant to pay 121,375 Lei law suit expenses to the claimant (partially expert fees and judiciary stamp tax). Document: Ruling 2771/13.06.2018.

During the public hearing on 21.10.2020 the claimant's and defendant's appeals against ruling 2771 of 13 June 2018 pronounced by CAB, Section VIII of Administrative and Fiscal Disputes were denied as groundless, such decision being final.

Term: 28.10.2021, settlement details: CHANGED TERM

As result of an audit conducted in 2017 the Court of Audit issued certain measures to be implemented by the Company as it ascertained certain deficits. CNTEE Transelectrica SA filed 8 contestations against the measures decided by Romania's Court of Audit (CCR) by Decision 8/27.06.2017, requesting their cancellation as well as cancelling the Conclusion 77/03.08.2017, registered in the Company under number 29117/08.08.2017, and the Audit Report 19211/26.05.2017. Contestations are under settlement: On the docket of the Appeal Court Bucharest (2 files: 6576/2/2017 on cancelling the findings from items 7.1, 7.2 and 8, as well as the measure decided in item II.10, term on 20.01.2021, settlement: the inadmissibility exceptions invoked by request were denied, the request was denied as groundless and file 6581/2/2017 on cancelling the findings from item 6, and the measure decided in item II.9, hearing term on 17.09.2021), on the docket of the High Court of Cassation and Justice (4 files: 6577/2/2017 on cancelling the findings from item 13, and the measure decided in item II.13, turned into file 1614/1/2020, with hearing term set on 27.01.2022, file 6578/2/2017, on cancelling the findings from item 9 and the measure decided in item II.11, hearing term on 08.06.2022, file 6574/2/2017 on cancelling the findings regarding item 5.2 and the measure decided in item II.8, hearing term on 19.10.2021). Three files were settled for good by the Appeal Court Bucharest's denial of the cancellation request and recourses denied by the High Court of Cassation and Justice (file 6583/2/2017 on cancelling the findings regarding item 5.1 and the measure decided in item II.7 and II.8 and file 6582/2/2017 on cancelling the findings regarding item 11, and the measure decided in item I.5; file 6580/2/2017 on cancelling the findings regarding item 10 and the measure decided in item II.12).

In case of file 6574/2/2017 on the hearing 19.10.2021 recourses were denied as groundless, which were filed by the recurrent-claimant National Power Grid Company Transelectrica SA against civil sentence 1074 of 8 March 2018 and against Hearing conclusion of 11 January 2018, pronounced by the Appeal Court Bucharest, Section VIII Administrative & Fiscal Disputes; final. It was pronouced at public hearing on 19 October 2021.

In January-July 2020 Romania's Court of Audit performed control to all the Territorial Transmission Units of CNTEE Transelectrica, and in 25.05-27.08.2020 the check continued in the Company's executive branch. CCR's control pertained to "control of the situation, development and administration of the state's public and private domains and of the legality of revenues obtained and expenses made in 2017-2019" within CNTEE Transelectrica SA.

Such inspection on the fore-mentioned topic began on 25.05.2020 in the Company's executive branch but CCR suspended it to initiate a different audit to "control the management of public resources during the emergency state". This began on 02.06.2020 and ended on 26.06.2020.

The Audit Report executed by CCR auditors about the "control on the management of public resources during the emergency state", registered under number 24225/26.06.2020 in the Company, ascertained no deficiency, consequently no Decision was issued with measures to be applied.

When the inspection with respect to the administration of the state's public and private domains, and to the legality of revenues obtained and expenses made in 2017-2019 ended on 06.10.2020, Audit Report 40507/06.10.2020 was issued and on 09.11.2020 Romania's Court of Audit issued Decision 15 through Department IV, which contained 10 measures to be applied by 31.05.2021, which CCR extended upon Company's request until 31.12.2021.

The Company filed objections and submitted Contestation 50090/26.11.2020, registered under number 139775/26.11.2020 at the Court of Audit's, requesting cancellation of such measures. CCR auditors examined and studied the Contestation submitted by the Company and issued Conclusion 2 of 10.03.2021 admitting cancellation of one measure of the 10 decided. The Company's Contestation is under settlement by the Appeal Court Bucharest.

• ANRE

CNTEE Transelectrica SA filed complaint against Order 51/26.06.2014 of ANRE President, registered with ANRE under no. 47714/4.08.2014, and a contestation before the Appeal Court Bucharest under file 4921/2/2014, requesting either the amendment of the aforementioned Order or the issuance of a new one, which should recalculate the RRR value at the level of 9.87% (recalculated with a (β) coefficient of 1.0359, according to the internal analyses conducted by Transelectrica) or, should this complaint be rejected, using the same percentage of 8.52% set by ANRE for 2013 and in semester 1, 2014.

On 26.06.2014 ANRE Order 51 was issued and published in the Official Gazette 474/27.06.2014 regarding approval of the average tariff for transmission services, the system service tariffs and zone tariffs for transmission services charged by the National Power Grid Company Transelectrica SA and cancelled annex 1 to Order 96/2013 of ANRE President approving the average tariff for transmission services, the system service tariffs and zone tariffs for transmission services and the tariffs for reactive electricity charged by economic operators of the electricity sector. The values taken for the calculation of the regulated rate of return (RRR) by ANRE according to the Methodology establishing the tariffs of electricity transmission services approved by ANRE Order 53/ 2013 ("Methodology") determined the RRR at 7.7%.

On the 27.03.2018 term the expert fee placed on the claimant's behalf was paid and a letter will be sent to the expert in order to execute the agreed expertise report and submit it to the file.

On 25.09.2018 the settlement in brief was to resume the letter to the expert with a view to make the expertise report and submit it to the file, in order to prove it is impossible to submit the expertise report by the hearing term, in which respect it decided postponing the case.

At the hearing term on 22.01.2019 the court agreed in principle the accessory intervention request to the defendant's interest (ANRE), expressed by intervenient ALRO SA, appeal granted with the principal issue. On 25.06.2019 the decision was taken to postpone the case to enable the parties to get acquainted with the content of the expertise report and a new hearing term was set on 10.09.2019.

On the 10.09.2019 term taking into account the request of the claimant's representative to get acquainted with the content of objections filed by the intervenient and to be able to answer them, considering also the claimant has equally submitted meeting notices accompanied by writs requiring translation, it admitted the case postponement request and decided setting a new hearing term on 03.12.2019.

On the 03.12.2019 term the decision was to postpone the case and set a new hearing term in order to resend letter to the expert to submit his answers to the objections made to the file, mention should be made he was to appear in court at the next hearing term. It will draw the expert's attention to submit a copy of his answer to objections to each party before the hearing term.

On the following term, 12.05.2020, the file was suspended during the entire emergency state.

On 23.06.2020 the case was deferred to enable the parties to get acquainted with the answer to objection. Also on the 21.07.2020 term the case was deferred with this settlement: letter to the expert to show up in court.

On 06.10.2020 the request was denied with the following settlement in brief: the exception of inadmissibility was denied as groundless. The suit was denied as groundless; appeal within 15 days from notification. It was pronounced by placing the settlement at the parties' disposal by the court clerk; Ruling 362/2020.

On 16.11.2020 the case was deferred. Settlement in brief: In accordance with article 230 of the Civil Procedural Code, the 17.11.2020 hearing term is changed ex officio to 11.01.2021. It decided notifying the parties a copy of the term changing conclusion; appeal right was granted with the substance issue.

On the 11.01.2021 term the settlement in brief was: it admitted the request to complete the device. It decided completing the device for civil sentence 362/06.10.2020 was decided with settlement on the accessory intervention request, meaning that: it admitted the accessory intervention request of intervenient ALRO SA to support defendant ANRE; appeal right within 15 days from notification, to be submitted to the Appeal Court Bucharest. It was pronounced on 11.01.2021 by placing the settlement to the parties' disposal by means of the court clerk.

Mention should be made this dispute has not impacted the relationship with ANRE or the Company's financial results.

• OPCOM

File 22567/3/2019 was registered on the docket of Bucharest Tribunal pertaining to "claims", a file where the Company is claimant and OPCOM SA is defendant.

Claimant CNTEE Transelectrica SA in its summons requested the instance to pronounce a ruling deciding to:

CNTEE Transelectrica SA

Notes to the stand-alone interim financial statements as of 31 March 2022 (All amounts are expressed in LEI, unless otherwise provided)

Compel defendant OPCOM SA to pay 4,517,460 Lei under invoice TEL 16 AAA 19533/29.07.2016, representing the VAT amount of the contribution made by CNTEE Transelectrica SA to the share capital of OPCOM SA, issued under Loan Contract 7181RO/2003, a commitment to finance the investment of the "Electricity Market Project";
Compel defendant OPCOM SA to pay 1,293,778.27 Lei under invoices TEL 19 T00 17/28.01.2019 and TEL 19 T00 131/10.07.2019, representing legal penalising interest calculated for the defendant's failure to pay in due time invoice TEL 16 AAA 19533/29.07.2016;
Compel defendant OPCOM SA to pay law court expenses;

On the 03.07.2020 term the court submitted to the parties' debate the request to suspend judging file 22567/3/2019, expressed by OPCOM but it remained to be pronounced.

On the 17.07.2020 hearing term the court pronounced the following settlement in brief: "It suspended judging the case until final settlement of file 31001/3/2017; appeal right was granted during the entire suspension. It was pronounced by placing the settlement at the parties' disposal by the court clerk on 17.07.2020. Document: Conclusion – Suspension 17.07.2020".

After final settlement of file 31001/3/2017 CNTEE Transelectrica SA filed request to replace file 22567/3/2019 on the docket, since the case suspension reason ceased. Bucharest Tribunal replaced the case on the docket and established the hearing term on 05.11.2021.

On this term after the case call-over the instance enabled the parties to talk about the "exception of prescription of the material right to action". When the parties formulated their verbal conclusions about such exception the instance remained to pronounce itself on it, but it deferred pronouncement to 03.12.2021.

On 03.12.2021 Bucharest Tribunal pronounced the following settlement in brief: "It admitted the exception of the prescription for the material right to action. It denies the case as prescribed; appeal right was granted within 30 from communication, to be submitted to Bucharest Tribunal, Section VI Civil. It was pronounced by placing the settlement at the parties' disposal on 03.12.2021. Document: Ruling 3021/2021 03.12.2021".

Mention should be made to date the pronounced ruling under this file has not been drawn. When Civil Ruling 3021/ 03.12.2021 has been written and notified the Company can file appeal against it.

File 24242/3/2021 was on the docket of Bucharest Tribunal for settlement, whereby claimant is OPCOM SA, iar CNTEE Transelectrica SA is defendant.

This file pertains to ascertain the nullity of the deed - contribution in kind, substantiated by intangible assets, the transaction platform of the Commercial and Regional Electricity Exchanges, financed by loans contracted by CNTEE Transelectrica SA from IBRD under loan contract 7181RO/17.07.2003, as well as by own sources of CNTEE Transelectrica SA, which were obtained under service and deliverable contracts: P081406-O-C.78, P081406-O-C.125 and P081406-O-C.300/2005, substantiated by AGEA Decision 6/15.06.2016 and, later on, AGOA Decision 2/25.05.2017 and AGOA Decision 7/24.05.2018.

On the 11.04.2022 hearing term the instance placed the exceptions mentioned by CNTEE Transelectrica SA to the parties' debate by contestation. On the same term the evidence proposed to be given under the case was discussed. The court deferred pronouncement to the new term established on 26.09.2022, in order to submit the financial-accounting expertise proof to be brought to this file.

• CONAID COMPANY SRL

In 2013 Conaid Company SRL summoned CNTEE Transelectrica SA for its unjustified refusal to sign an addendum to the connection contract or a new connection contract and requested compensations for the expenses incurred up to that date amounting to 17,419,508 Lei and for unrealised profits in 2013-2033 amounting to 722,756,000 EUR. To date the Company has not concluded an addendum to the connection contract because the suspensive terms included in the contract were not complied with by Conaid Company SRL. A new connection contract should have been concluded by 11 March 2014, expiry date of the technical connection endorsement. File 5302/2/2013 was found on the docket of the High Court of Cassation and Justice, Section of Administrative and Fiscal Disputes, and pertained to an obligation to issue an administrative deed; law court stage – appeal and hearing term on 09.12.2015. On this term the High Court of Cassation and Justice admitted in principle the appeals and set a hearing term of such appeals, for the main issue, on 08 April 2016. Panel 4 was entrusted to summon the parties.

Case judgement was deferred to 17.06.2016, when the court postponed pronouncement to 29.06.2016, when it pronounced Ruling 2148/2016 whereby it decided as follows: "It denies the exceptions invoked by the recurrent-claimant SC Conaid Company SRL by means of the judiciary administrator RVA Insolvency Specialists SPRL and by the recurrent-defendant the National Power Grid Company Transelectrica SA. It admits the appeal filed by the defendant National Power Grid Company Transelectrica SA against the hearing conclusion of 18 February 2014 and civil ruling 1866 of 11 June 2014 pronounced by the Appeal Court Bucharest, Section VIII of Administrative and Fiscal Disputes. It cancels the contested

CNTEE Transelectrica SA Notes to the stand-alone interim financial statements as of 31 March 2022 (All amounts are expressed in LEI, unless otherwise provided)

conclusion and partly the ruling and refers the case to Bucharest Tribunal, Section VI Civil to settle the claimant's case in contradiction with the National Power Grid Company Transelectrica SA. It maintains the other ruling provisions as regards the claimant's suit against the National Regulatory Authority in the Energy domain. It denies the appeals filed by claimant SC Conaid Company SRL by means of the judiciary administrator RVA Insolvency Specialists SPRL and by the intervenient SC Duro Felguera SA against civil ruling 1866 of 11 June 2014, pronounced by the Appeal Court Bucharest, Section VIII of Administrative and Fiscal Disputes. It denies the appeal filed by the defendant National Power Grid Company Transelectrica SA against the hearing conclusion of 25 March 2014, pronounced by the Appeal Court Bucharest, Section VIII of Administrative and Fiscal Disputes; final". It was pronounced at public hearing on 29 June 2016.

The case was registered under file 12107/3/2017 on the docket of Bucharest Tribunal. The Tribunal's civil sentence 4364/23.11.2017 admitted the exception of inadmissibility and denied the request as inadmissible. It also denied the intervention request on the claimant's behalf. Appeal right was granted within 30 days from notification. The appeal was filed to the Appeal Court Bucharest, Section VI Civil and the court clerk office notified it on23.11.2017.

On 02.11.2018 on the docket of Bucharest Tribunal, Section VI Civil new summons were filed by Conaid Company SRL under file 36755/3/2018, by which the claimant requested the court to compel Transelectrica SA to "repair the prejudice caused to the claimant as a result of the defendant's culpable non-execution of obligations in quantum of 17,216,093.43 Lei, consisting of actual damage incurred and unrealised benefit, provisionally estimated at 100,000 Euro... taking into account the unjustified refusal of Transelectrica SA to conclude and sign an addendum to Contract C154/27.04.2012, and in case the instance deem in formal terms the claimant's obligation of suspensive terms cannot be considered as fulfilled, such nonexecution is owed to the exclusive guilt of Transelectrica SA, as the defendant prevented the compliance with the terms".

On the 15.10.2019 term it denied as groundless the exceptions of absence of active processual capacity and absence of interest. It joined the exception of prescription to the main issue; appeal right on the same date with the main issue. It was pronounced by placing the settlement to the parties' disposal by means of the court clerk.

It established the term on 26.11.2019 to continue investigating the case and summon the parties; appeal right on the same date with the main issue. It was pronounced by placing the settlement to the parties' disposal by means of the court clerk.

It was deferred to provide the expertise evidence and a new term was established on 21.01.2020.

On 21.01.2020 the case was deferred for expertise and the next term was set on 31.03.2020.

On the 31.03.2020 term the settlement in brief was: It was lawfully suspended as per article 42 para 6 of Decree 195/2020 of Romania's president instituting the emergency state on Romanian territory, during the entire emergency state.

After several postponments to execute the expertise report a new term was established on 07.06.2022.

• ROMENERGY INDUSTRY

File 2088/107/2016 on the docket of Alba Tribunal pertains to "Bankruptcy - Request to be included in the creditors' list". Transelectrica filed request to be recorded in the creditors' list with 16,112,165.18 Lei; the receivable was admitted and recorded in the preliminary Table.

Settlement in brief: It established the term on 14.10.2019 to continue the bankruptcy procedure by capitalising the assets and recovering the receivables. The judiciary liquidator was to execute and submit to the file: - every 15th day of the month the monthly activity reports of the preceding month as provided in para 1 of article 59 from Law 85/2014; - 5 days before the verification term the synthetic report of 120 days, provided in the final part of para 3 of article 59, Law 85/2014.

On the hearing term of 27.01.2020 the verification term was set on 11.05.2020, to continue the bankruptcy procedure by capitalising the goods and recovering the assets. The judiciary liquidator was to execute and submit to the file: - every 15th day of the month the monthly activity reports of the preceding month as provided in para 1 of article 59 from Law 85/2014; - 5 days before the verification term the synthetic report of 120 days, provided in the final part of para 3 of article 59, Law 85/2014.

On 11.05.2020 judgment was lawfully suspended during the emergency state instituted on Romania's territory. On the 22.06.2020 term the case was deferred. Settlement in brief: the report on the funds obtained by liquidating the debtor's assets and the 03.06.2020 distribution plan were approved.

On the 05.10.2020 term the case was deferred. Settlement in brief: a term was set on 18.01.2021 to continue the bankruptcy procedure by capitalising the debtor's assets. The judiciary liquidator will execute and submit to the file: - every 15th day of the month, the monthly activity reports of the preceding month as provided in para 1 of article 59 from Law 85/2014; - 5 days before the verification term, the synthetic report of 120 days provided in the final part of para 3 of article 59, Law 85/2014.

CNTEE Transelectrica SA

Notes to the stand-alone interim financial statements as of 31 March 2022 (All amounts are expressed in LEI, unless otherwise provided)

On the 18.01.2021 the case was deferred. Settlement in brief: It approved Report 1334 on the funds obtained by liquidating the debtor's assets and Plan 1335 to distribute the funds.

On the 27.09.2021 term a new term was set on 31.01.2022 to continue the bankruptcy procedure, capitalise the assets and recover receivables.

On the 31.01.2022 term a new one was set on 16.05.2022 to continue the bankruptcy procedure by capitalising the assets and recovering receivables. The judiciary liquidator will execute and submit to the file: - every 15th day of the month, the monthly activity reports of the preceding month as provided in para 1 of article 59 from Law 85/2014; - 5 days before the verification term, the synthetic report of 120 days provided in the final part of para 3 of article 59, Law 85/2014.

• RESITA CITY

File 2494/115/2018* AND file 2494/115/2018** registered on the docket of Caras Severin Tribunal pertained to summons whereby the claimant Resita City requests compelling defendant Transelectrica SA to pay the following amounts:

2,129,765.86 Lei representing rent for the land temporarily taken up from the forest fund in 2015;
2,129,765.86 Lei representing land rent for 2016;
2,129,765.86 Lei representing land rent for 2018;
2,129,765.86 Lei representing land rent for 2019;
2,129,765.86 Lei representing land rent for 2020;
Legal penalising interest from due date until actual payment;

Settlement in brief: It admitted the exception of territorial incompetence for Caras Severin Tribunal. It declined the settlement competence of the request filed by claimant Resita City through the mayor in contradiction with defendant CNTEE Transelectrica SA in favour of Bucharest Tribunal. No appeal according to article 132 para 3 Civil Procedural Code. It was pronounced at public hearing on 11 March 2019. Document: Ruling 313/11.03.2019.

On the hearing term of 25.10.2019 the exception was admitted of territorial incompetence of Bucharest Tribunal. It declined the settlement competence of this case in favour of Caras-Severin Tribunal. It ascertained the occurrence of a negative competence conflict between Bucharest Tribunal and Caras-Severin Tribunal. It suspended the case and referred the file to the High Court of Cassation and Justice, in order to settle the negative competence conflict. No appeal was granted; pronouncement will take place by placing the settlement at the parties' disposal through the court clerk by Ruling 2376/25.10.2019.

On the 16.07.2020 term the High Court of Cassation and Justice by ruling 1578 established the case settlement competence in favour of Caras Severin Tribunal, Section I civil.

On the 16.11.2020 term the court deferred the case and granted time for study of writs submitted to the file on this hearing term by the representative of CNTEE Transelectrica SA, establishing a new hearing term on 22.03.2021.

On 22.03.2021 settlement in brief: It suspended the summons filed by claimant Resita City by its Mayor in contradiction with defendant National Power Grid Company Transelectrica SA pertaining to claims according to article 413 para (1) pt.1 of the Civil Procedural Code; appeal right granted during the entire suspension, to be filed with the superior court.

• ANAF

In 2017 the general fiscal inspection ended which began in Transelectrica SA on 14.12.2011, a control targeting the December 2005 - December 2010 interval.

Such general fiscal audit began on 14.12.2011 and ended on 26.06.2017, date of final discussions with Transelectrica SA. When this audit has been completed ANAF - DGAMC established additional fiscal obligations payable by the Company, namely income tax and VAT, as well as accessory fiscal liabilities (interest/delay indexations and penalties) with respect to

technological system services (STS) invoiced by energy suppliers, considered non-deductible after the fiscal audit. In accordance with the taxation decision F-MC 439/30.06.2017, in total sum of 99,013,399 Lei, ANAF – DGAMC established additional fiscal liabilities payable by the Company, amounting to 35,105,092 Lei, as well as accessory fiscal ones (interest/delay indexations and penalties), amounting to 63,908,307 Lei.

In the main ANAF's Tax inspection report records the following additional payment liabilities: corporate tax amounting to 13,726,800 plus accessories, owed for a number of 123 unused invoices identified as missing (they were destroyed in the fire that broke out the night of 26-27 June 2009, at the business office from Millennium Business Centre from 2-4 Armand Calinescu Street, District 2, where the company carried out its activity), documents under special regime.

These invoices were subject to a dispute with ANAF, the latter sending a tax inspection report on 20 September 2011 which estimated the amount of collected VAT for a number of 123 unused invoices identified as missing.

CNTEE Transelectrica SA

Notes to the stand-alone interim financial statements as of 31 March 2022 (All amounts are expressed in LEI, unless otherwise provided)

The Company filed contestation against Taxation Decision F-MC 439/30.06.2017 within the legal term according to OG 92/2003 on the Civil Procedural Code.

ANAF issued the enforcement title 13540/22.08.2017 based on which the additional payment liabilities were executed as established under the Taxation Decision F-MC 439/30.06.2017.

The Company requested cancellation of the enforcement title 13540/22.08.2017 from the Appeal Court, under file 7141/2/2017. Settlement in brief: it admitted the exception of material incompetence of the Appeal Court Bucharest, SCAF. It declined the material competence of case settlement in favour of Law Court of Bucharest 1; no appeal granted. It was pronounced at public hearing on 08.02.2018. Document: Ruling 478/2018 of 08.02.2018.

After such competence declination file 8993/299/2018 was registered on the docket of Law Court of Bucharest 1 whereby the Company contested the enforcement made under the enforcement title 13540/22.08.2017, based on the Taxation Decision F-MC 439/30.06.2017.

After the Company's contestation of the fiscal administrative deed Decision F-MC 439/30.06.2017 ANAF notified the Company its Decision 122/13.03.2018 whereby it rejected as groundless the contestation filed by CNTEE Transelectrica SA, such decision being received on 16.03.2018, after submitting the summons under file 1802/2/2018.

Settlement in brief: It admitted the judgment suspension request filed by the contester. In accordance with article 413 para (1) pct. 1 of the Civil Procedural Code it suspended judgment until final settlement of file 1802/2/2018, on the docket of the Appeal Court Bucharest, Section VIII Administrative and Fiscal Disputes. Appeal right was granted during the entire suspension; appeal to be submitted to the Law Court Bucharest 1. It was ruled in open court. Document: Conclusion - Suspension 17.04.2018.

File 1802/2/2018 is on the Appeal Court's docket, whereby the Company contested the administrative fiscal Decision F-MC 439/30.06.2017.

On the session term 06.11.2018 the court admitted the administration of the expertise evidence, in the accounting – fiscal specific domain. Hearing scheduled for: 12.05.2020.

Pronouncement was deferred on CAB's hearing term of 21.07.2020.

On 30.07.2020 the case was replaced again on the docket for additional explanations.

On the 20.10.2020 term the request was partly admitted with the following settlement in brief: the litis-pended requests were partly admitted; Ruling 122/13.03.2018 was partly cancelled, on settling the contestation filed against Taxation Decision F-MC 439/30.06.2017 issued by the National Agency of Fiscal Administration, General Dispute Settlement Division, Taxation Decision F-MC 439/30.06.2017 issued on 12.07.2017 by the National Agency of Fiscal Administration, General Directorate Managing Large Tax-Payers, Taxation Decision F-MC 439/30.06.2017 issued by the National Agency of Fiscal Administration, General Directorate Managing Large Tax-Payers and the Tax audit report F-MC 222 concluded on 30.06.2017, which was used for the taxation decision, meaning: - it removed the paying liability of the income tax amounting to 18,522,280 Lei, VAT in sum of 5,694,636 Lei and fiscal accessories pertaining to such main fiscal debts in quantum of 48,436,653 Lei, fiscal liabilities established for the 349 fiscal invoices of special regime found as missing from the claimant's books; it removed the non-deductible nature of 27,001,727 Lei when calculating the taxable income, sum representing technological system services invoiced by electricity suppliers, considered as non-deductible after the fiscal audit and compelling the payment of main fiscal arrears and accessories on this amount; it removed the non-deductible nature of 343,629.91 Lei when calculating the taxable income, sum representing "weed-removing services" and payment obligation for the main fiscal arrears and accessories pertaining to such sum; it removed the non-deductible nature of 230,685,49 Lei when calculating the taxable income, sum representing expenses for promotional and protocol objects and payment obligation for the main fiscal arrears and accessories pertaining to such sum; it removed the non-deductible nature of VAT in quantum of 46,417.1 Lei pertaining to 343,629.91 Lei, representing "weed-removal services" and payment obligations of the main fiscal arrears and accessories of this amount; it removed the non-deductible nature of VAT in quantum of 37,693.88 Lei pertaining to 230,685.49 Lei representing expenses for promotional and protocol products and payment obligation for the main fiscal arrears and accessories of such amount; it removed the mention about obliging the Transmission Branch Sibiu of CNTEE Transelectrica SA to register 576,846.80 Lei as taxable revenue on 30.06.2010 at the latest, date when the audited unit was accepted to be recorded in the creditors' table with such sum; it maintained the mention about the taxable revenue nature of 576,846.80 Lei when calculating the profit according to the provisions of article 19 para 1 of Law 571/2003 on the Fiscal Code, with later amendments and additions, corroborated with item 23 let. d of HG 44/2004 including the Methodological Norms to apply Law 571/2003, income tax chapter, namely chapter VII on the function of accounts from Order 3055 of 29 October 2009 approving the accounting regulations compliant with European directives and compelling the payment of main fiscal arrears and accessories of such sum; it removed the Minutes ascertaining the "determination of the deductible value added tax lower than that recorded by the claimant, thus resulting a difference of 13,141 Lei" (annex 15) and compelling the payment of main fiscal arrears and accessories of this amount; it removed the payment obligation for delay penalties of penalising juridical regime, calculated for more than 6 months from the inception date of the fiscal audit, regarding the main fiscal liabilities maintained by judgment in this ruling, as established by the Taxation Decision F-MC 439/30.06.2017 issued on 12.07.2017 by the National Agency of Fiscal Administration, General Directorate Managing Large Tax-Payers, Taxation Decision F-MC 439/30.06.2017 issued by the

National Agency of Fiscal Administration, General Directorate Managing Large Tax-Payers and Decision 122/13.03.2018 on settling the contestation against the Taxation Decision F-MC 439/30.06.2017 issued by the National Agency of Fiscal Administration, General Dispute Settlement Division. It maintained the other provisions of Taxation Decision 122/13.03.2018 on settling the contestation against the Taxation Decision F-MC 439/30.06.2017 2017 issued by the National Agency of Fiscal Administration, General Dispute Settlement Division, the Taxation decision F-MC 439/30.06.2017 issued on 12.07.2017 by the National Agency of Fiscal Administration, General Directorate Managing Large Tax-Payers, Taxation decision F-MC 439/30.06.2017 issued by the National Agency of Fiscal Administration, General Directorate Managing Large Tax-Payers. It denied the other litis-pended requests as groundless. It denied as groundless the request to grant court expenses as judiciary stamp tax. It compelled the defendants to jointly pay to the claimant the law court expenses amounting to 4000 Lei, representing fee for the accounting-fiscal expertise, in proportion to request admission. Appeal right was granted within 15 days from notification, to be submitted to the Appeal Court Bucharest; Ruling 382/20.10.2020.

The parties filed appeal in March 2022.

On 12.04.2022 the Appeal Court Bucharest deferred the case on 10.05.2022, in order to enable the claimant to get acquainted with the contestation content.

• GRAND VOLTAGE

File 17976/3/2021 registered on the docket of Bucharest Tribunal pertained to summons whereby claimant Grand Voltage requested compelling defendant CNTEE Transelectrica SA to pay and repair the prejudice caused to the subscribed in quantum of 6,125,822.13 Lei as a result of culpable failure to perform the obligations under Work Contract C 111/23.05.2018 regarding the "100 kV OHL Isaccea -Varna and 400 kV OHL Isaccea-Dobrujda connection in the 400 kV substation Medgidia Sud, stage II- the 400 kV double circuit OHL joining substation Medgidia Sud". Hearing term: 09.05.2022 – absent expertise report.

• OTHERS

The Company is involved in significant disputes especially to recover trade receivables (e.g.: Next Energy Partners, Petprod SRL, Total Electric Oltenia SA, Independent Authority for Nuclear Activities, Romenergy Industry SRL, Energy Holding SRL, UGM Energy Trading SRL, CET Iasi, CET Bacau, CET Braila, CET Govora, CET Brasov, Elsaco Energy SRL, Arelco Power SRL, Arelco Energy SRL, Menarom PEC SA Galati and others).

The Company registered allowances for value losses from clients and other disputed trade receivables, as well as for clients under bankruptcy.

At the same time the Company is involved in disputes with former Directorate and Supervisory Board members pertaining to their mandate contracts the Company concluded with them. The Company has constituted a provision for such disputes.

ii) Contingencies

On 31 March 2022 contingent liabilities amounted to 25,162,828. They are associated to disputes pertaining to claims, representing additional costs after the minimum salary indexation in constructions for investment contracts.

File 20780/3/2020 - claimant ENERGOMONTAJ SA (7,092,389)

The file pertains to claims, representing additional costs related to the minimum salary indexation in constructions and compelling to conclude an addendum to contract C54/2018.

Contract C54/2018 related to the investment project - Refurbishing the 220/110 kV substation Craiova Nord.

After seveal postponements of terms because of absent expertise report, the following term was established on 20.04.2022. On the 20.04.2022 hearing term the TMB admitted the cancellation request of the judiciary expertise report filed by claimant ELECTROMONTAJ SA. It decided cancelling the Judiciary Technical Expertise Report in accounting speciality elaborated by expert OPRESCU RUXANDRA and executing a new expertise with the following targets:

Determining the additional costs borned by claimant ELECTROMONTAJ SA after indexation of the minimum salary in constructions to the amount of 3,000 Lei/month for work provided under work contract C54 din 27.02.2018 in January 2019 - January 2021;
Determining the additional costs generated by the indexation of the minimum salary in constructions to the amount of 3,000 Lei/month for work to be provided under work contract C54 din 27.02.2018, beginning with February 2021 until work completion.

A new hearing term was granted on 23.06.2022.

File 25896/3/2020 - claimant Electromontaj Bucharest (10,000,000)

The file pertains to claims, representing additional costs related to the minimum salary indexation in constructions for the

investment contract C229/2015 - Converting the Portile de Fier - Resita - Timisoara - Sacalaz - Arad axis to 400 kV / the 400 kV OHL Portile de Fier (Anina) – Resita.

Hearing term: 07.06.2022 – to submit the expertise report.

File 27001/3/2021 – claimant Romelectro (3,523,710)

The file pertains to claims, representing additional costs related to the minimum salary indexation in constructions for the investment contract C264/2017 - Upgrading the 110 kV substations Bacau Sud and Roman Nord of the 400 kV axis Moldova.

Hearing term: 03.06.2022.

File 22368/3/2021 – claimant Romelectro (2,275,653)

The file pertains to claims, representing additional costs related to the minimum salary indexation in constructions for the investment contract C260/2017 - Upgrading the 110 și 400(220) kV installations of substation Focsani Vest. Hearing term: 10.06.2022.

File 30801/3/2021 – claimant Romelectro (2,271,075)

The file pertains to claims, representing additional costs related to the minimum salary indexation in constructions for the investment contract C145/2018 - Refurbishing the 110 kV substation Medgidia Sud.

At the session on 20.04.2022 the TMB settlement was: "It admitted the accounting expertise report with the following targets:

The expert shall specify wheteher Romelectro fulfils the condition provided in article 66 of OUG 114/2018, namely whether 80% of Romelectro's turnover is obtained from constructions, both in the year before the reference one (2018) and during the reference period (2019);
The expert shall calculate the cost difference generated by higher human resource salaries used actually by Romelectro in the execution of Contract C145/2018 during the reference period and in the first two months before it, namely:

a) To specify for each employee (human resource actually used) individually whether it touched 3000 Lei/month salary or higher in November and December 2018;

b) When did the human resource's salary grew to 3000 Lei/month;

c) What is the difference between the previous salary and that required by OUG 114/2018;

d) Whether in 01.11.2018 - 31.12.2018 Romelectro reduced the salaries of human resources used;

e) Specify which is the real cummulated cost difference in the human resource's salary used by Romelectro to actually carry out the work under Contract C145/2018 in the reference period.

The expert shall determine based on analytic cost estimates, what is the percentage, namely the amount by which Transelectrica should adjust the price of Contract C145/2018 for the man labour of the work remaining to be executed as of 01.01.2019 following the legislative changes brought abut by OUG 114/2018 meaning it increased the minimum salary in construction to 3000 Lei/month;
The expert shall determine the delay days/months registered in the execution of work under Work Contract C145/2018 as a result of financial problems met by Romelectro SA because Transelectrica refused to pay the adjusted value, namely how was the execution schedule impacted by such price inadjustment by Transelectrica under this Contract after the legislative changes instituted by OUG 114/2018, which increased the minimum salary in constructions to 3000 Lei/month. It established the hearing term on 29 April 2022, 09:00 h, when the parties will be summoned.

On the hearing term of 29 April 2022 the case was deferred to submit the evidence and a term was set on 24.06.2022.

All files pertaining to claims representing additional costs requested by claimants under work execution contracts will be shown in the amount of investments as they are settled in court and invoiced by such partners, except for law court expenses and penalties established in court.

At present there are disputes on the dockets with Romania's Court of Audit regarding its controls of 2013, 2017 and 2020, provided in detail in the Disputes chapter.

Taking into account the Court of Audit's findings registered in its Decisions following controls to the financial statements elaborated each quarter, semester and year we have specified it is possible to result additional fiscal liabilities for payment but, for the time being, they cannot be accurately determined according to the terms provided in Standard IAS 37 - Provisions, contingent liabilities.

19. Affiliated parties

i)	Transactions with subsidiaries held by the Company

Entity	Country of origin	31 March 2022 % of shares	31 December 2021 % of shares
SMART SA *)	Romania	100	100
TELETRANS SA	Romania	100	100
ICEMENERG SA **)	Romania	-	-
OPCOM SA	Romania	97.84	97.84
FORMENERG SA	Romania	100	100
ICEMENERG SERVICE SA ***)	Romania	100	100

The net value of shares held by the Company in its subsidiaries was of 78,038,750 on 31 March 2022 and of 78,038,750 on 31 December 2021.

The gross value of Company's participations into its subsidiaries is as follows:

SMART SA

Company SMART SA with headquarters in Blvd. Magheru 33, Bucharest 1 and central offices in the working location of Blvd. Gheorghe Sincai 3, Formenerg Building, 1st floor, Bucharest 4 has as main business execution of maintenance work for the transmission-dispatcher system; it was established under HG 710/19.07.2001 on 1 November 2001.

The Shareholders' General Extraordinary Assembly of Co. Smart SA approved by Decision 14/10.12.2014 to increase the capital of Co. Smart SA by contribution in kind, namely the value of lands which ownership certificates were obtained for.

On 30.12.2014 the Office of the Trade Register from Bucharest Tribunal settled the request to register the indexation of share capital of Co. Smart SA.

Beginning with 25.01.2016 the National Office of the Trade Register executed the change in the shareholder structure of Co. Smart SA, namely a mention about the state portfolio administration, a change required according to article 10 of OUG 86/2014, amended and updated.

Thus, on 31 December 2021 the share capital of Co. SMART SA was of 38,528,600 divided into 3,852,860 nominative shares, each worth 10 Lei, which was subscribed and fully paid by the Company.

On 31 March 2022 the structure of shareholders in Co. Smart SA was the following:

CNTEE Transelectrica SA	- number of shares:	3,852,860
	- participation quota to benefits and losses: 100%

TELETRANS SA

Company TELETRANS SA with headquarters in Blvd. Hristo-Botev 16 – 18, Bucharest 3 and central offices in the working location of street Polona 68-72, Business Centre, Bucharest 1 has as main business maintenance services of process and managerial information, specific telecommunication and information technology services within RET, telephone, data transmissions and was established by AGA Decision 3/2002.

The share capital on 31 March 2022 amounted to 6,874,430 and was fully subscribed and paid.

ICEMENERG SA

Company Subsidiary of the Energy Research and Modernising Institute ICEMENERG SA with headquarters in Blvd. Energeticienilor 8, Bucharest 3 has as main business the research and development in physical and natural sciences, innovation, studies, development strategies, design activities, urbanism, engineering and other technical services, being established by HG 1065/04.09.2003.

In the Company's account books on 31 March 2022 the share capital of Subsidiary Icemenerg SA was 1,083,450 subscribed and fully paid.

**) On 07.04.2014 the National Office of the Trade Register admitted file 121452/03.04.2014 pertaining to cancelling the

CNTEE Transelectrica SA Notes to the stand-alone interim financial statements as of 31 March 2022 (All amounts are expressed in LEI, unless otherwise provided)

Subsidiary Energy Research and Modernising Institute ICEMENERG SA Bucharest. Order 123/13.03.2014 (registration deed also licensing the operation) enabled recording the 'National Energy Research-Development Institute Bucharest' with the Trade Register (HGR 925/2010). The Company filed complaint against the ORC director's resolution enabling registration of cancellation for Subsidiary ICEMENERG SA Bucharest in the trade register.

Bucharest Tribunal, Section VI Civil by ruling 3569/14.07.2014 pronounced under file 15483/3/2014, where the Company was in contradiction with defendants Energy Research and Modernising Institute Icemenerg SA Bucharest and the National Energy Research-Development Institute Icemenerg Bucharest, denied the Company's complaint on grounds that HG 925/2010 was not abrogated until the cancellation date with the ORC. The Appeal Court notified on 24.02.2015 the settlement pronounced under file 15483/3/2014 namely Ruling 173/2015, denying the appeal of CNTEE Transelectrica SA as groundless, such sentence being final.

Transelectrica SA filed cancellation contestation against Ruling 173/2015 pronounced by the Appeal Court Bucharest, under file 1088/2/2015 found on the docket of the Appeal Court Bucharest, Section VI Civil, with hearing term on 13.05.2015. On 13.05.2015 Ruling 777/2015 of the Appeal Court Bucharest denied as groundless the cancellation contestation, such ruling being final.

At its reunions of 28.03.2016 and 30.08.2016 AGEA did not approve reducing the share capital of CNTEE Transelectrica SA by 1,084,610 Lei, representing the share capital subscribed and paid of Subsidiary ICEMENERG SA Bucharest, by diminishing the Romanian State's participation to the share capital of CNTEE Transelectrica SA, in the application of provisions from HG 925/2010.

In 2015 the Company registered impairment allowance amounting to 1,083,450 for the shares held in the Subsidiary Energy Research and Modernising Institute ICEMENERG SA Bucharest which was cancelled.

OPCOM SA

Company OPCOM SA with headquarters in Blvd. Hristo Botev 16-18, Bucharest 3, with legal personality has as main business the organisation, administration and supervision of the energy market and was established by HG 627/2000.

On 31 March 2022 the share capital was of 31,366,090, of which 8,778,790 represents share capital subscribed and fully paid. The share capital difference amounting to 22,587,300 is represented by the Company's contribution in kind, namely intangible assets: the 'Electricity trade exchange OPCOM' and the 'Regional electricity exchange OPCOM', financed from the Company's own sources and from IBRD funds and valuated according to the Valuation Report 786/15.03.2016 issued by JPA Audit & Consultancy SRL.

The amendment in the articles of association of Co. OPCOM SA based on AGEA Decision 6/15.06.2016 was recorded on 11.07.2016 at ONRC according to the Registration Certificate of mentions.

On 31.12.2018 the share capital represented by indexation with the Company's contribution in kind amounting to 22,587,300 was registered in the financial statements submitted by OPCOM to AGA's approval, being specified as share capital subscribed and not fully paid.

On 13.02.2018 the Shareholders' general extraordinary assembly of Subsidiary OPCOM SA approved increasing the share capital of Company Electricity and Natural Gas Market Operator OPCOM SA ("OPCOM SA") by 678,790 Lei by contribution in kind represented by the value of land which the company obtained the land Ownership Certificate for, series M03 12899/27.02.2014 issued by the Ministry of Economy. Such contribution in kind was evaluated by an expert valuator designated by the ONRC. In exchange for the contribution in kind to the share capital the company issued to the new shareholder Romanian State through the Ministry of Economy a number of 67,879 new nominative shares of 10 Lei nominal value each.

On 20.03.2019 the National Office of the Trade Register from Bucharest Tribunal settled the registration request of share capital increase of OPCOM SA.

On 31 March 2022 the share capital of OPCOM SA was of 31,366,090 Lei, representing a number of 3,136,609 nominative shares of 10 Lei each and a 97.84% participation quota of CNTEE Transelectrica SA to benefits and losses.

FORMENERG SA

Company FORMENERG SA with headquarters in Blvd. Gh. Sincai 3, Bucharest 4 and legal personality has as main business the initial and continuous professional training in all domains of activity for power engineering personnel, as well as for other beneficiaries and it was established by AGA Decision 33/2001.

On 31 March 2022 the share capital was 1,948,420 fully subscribed and paid.

ICEMENERG SERVICE SA

Company ICEMENERG SERVICE SA seated in Bucharest City 3, Blvd. Energeticienilor 8 has as main business the design, manufacture, implementation, repair, upgrade and market instrumentation, equipment, specific installations specializatin the country and abroad.

HG 2294/09.12.2004 approved the transfer of the shares package held by the Trading Company Subsidiary Energy Research and Modernising Institute ICEMENERG SA Bucharest in the Trading Company Subsidiary ICEMENERG-SERVICE SA Bucharest to the National Power Grid Company Transelectrica SA.

The Company registered in 2016 impairment allowance of 493,000 for the shares held in ICEMENERG SERVICE SA.

On 09.06.2017 Bucharest Tribunal, Section VII Civil ordered the bankruptcy by simplified procedure of debtor Company Subsidiary ICEMENERG SERVICE SA, designating Solvendi SPRL as provisional judiciary liquidator.

On 31 March 2022 the share capital was of 493,000, subscribed and fully paid.

The balances of Company subsidiaries are as follows:

	Trade receivables*)		Trade	liabilities
AFFILIATED ENTITY	31 March 2022	31 December 2021	31 March 2022	31 December 2021
SMART SA	881,797	713,183	28,272,845	8,944,881
TELETRANS SA	142,760	145,830	16,772,802	13,435,678
FORMENERG SA	-	-	-	-
OPCOM SA	1,009,639,028	634,763,661	1,003,307,699	627,502,394
TOTAL	1,010,663,585	635,622,674	1,048,353,346	649,882,953

*) Trade receivables are provided at gross value.

The transactions performed in quarter 1, 2022 and quarter 1, 2021 with Company subsidiaries are detailed as follows:

	Sales		Achiziții
AFDILIATED ENTITY	Quarter I 2022	Quarter I 2022	Quarter I 2022	Quarter I 2021
SMART SA	319,469	175,495	26,931,852	13,634,292
TELETRANS SA	178,604	95,603	9,906,016	6,994,724
FORMENERG SA	-	-	286	-
OPCOM SA	1,642,166,363	147,141,881	542,250,145	205,538,282
Total	1,642,664,436	147,412,979	579,088,299	226,167,298

ii) Salaries of Company management

Salaries paid to management for their services mainly comprise the basic salary and benefits when their labour contract ends as well as post-employment. These are detailed as follows:

	Quarter I 2022	Quarter I 2021
Short term benefits	5,767,259	5,063,306
Other long term benefits	11,341	26,800
Total	5,778,600	5,090,106

20. Credit risk

This is the risk by which the Company incurs financial loss for a client's failure to comply with contractual obligations or a counterpart's under a financial instrument. Such risk results mainly from trade receivables as well as cash and cash equivalents.

The counterparty risk treatment relies on Company's internal and external success factors. External success factors, which systematically reduce this risk are: decentralising the energy sector with distinct generation, transmission, distribution and supply activities, and the client interface is represented by the supplier; electricity transactions on the Romanian market takes place on two market segments: the regulated and the competitive market. Internal success factors for the treatment of the counterparty risk include: diversifying the clients' portfolio as well as the number of services provided on the electricity market.

Financial assets that might expose the Company to the collection risk are mainly trade receivables and cash and cash equivalents. The Company has applied a number of policies providing that services are sold to clients with proper collection, by including in trading contracts their obligation to constitute financial securities. The value of receivables net of value loss allowances represents the maximum amount subjected to the collection risk.

The maximum exposure to the collection risk on the report date was:

	31 March 2022	31 December 2021
Financial assets
Net trade receivables	2,118,739,317	2,049,045,366
Other net receivables and down payments to suppliers	1,057,011,431	824,401,867
VAT to recover	267,462,192	122,134,375
Cash and cash equivalents	90,127,224	252,225,142
Other financial assets	-	-
Total	3,533,340,164	3,247,806,750

The age of receivables on the elaboration date of the financial position statement is provided below:

	Gross value	Impairment allowance	Gross value	Impairment allowance
	31 March 2022	31 March 2022	31 December 2021	31 December 2021
Not reached to maturity	2,022,516,346	466,750	1,935,282,443	43,381
Due date exceeded 1 – 30 days	773,355	-	22,558,019	-
Due date exceeded 31 – 90 days	6,234,398	40,205	(343,107)	-
Due date exceeded 90 – 180 days	106,425	1,788	13,072,815	12,540,751
Due date exceeded 180 – 270 days	12,582,541	12,552,216	92,051	22,582
Due date exceeded 270 – 365 days	545,241	24,373	622,364	74,967
More than one year	221,287,131	132,220,788	222,868,727	132,426,265
Total	2,264,045,437	145,306,120	2,194,153,312	145,107,946

The age of other receivables on the elaboration date of the financial position statement is provided below:

	Gross value	Impairment allowance	Gross value	Impairment
	31 March 2022	31 March 2022	31 December 2021	allowance 31 December 2021
Not reached to maturity	1,284,792,211	3,187	915,346,210	8,469,053
Due date exceeded 1 – 30 days	12,621,113	11,260,155	197,143	14
Due date exceeded 31 – 90 days	1,254,486	6,587	11,358,697	2,107,673
Due date exceeded 90 – 180 days	8,882,867	-	1,350,180	483,743
Due date exceeded 180 – 270 days	4,077,176	622,609	1,170,464	482,365
Due date exceeded 270 – 365 days	2,219,197	1,541,523	3,420,760	970,217
More than one year	77,613,543	53,552,909	80,611,154	54,405,301
Total	1,319,460,593	66,986,970	1,013,454,608	66,918,366

Transelectrica's policy consists in recording 100% impairment allowances for value losses for clients under disputes, insolvency and bankruptcy and 100% of trade receivables and other receivables not collected within 180 days, except for outstanding receivables generated by the support scheme. Also the Company makes individual analysis of trade receivables and other uncollected receivables.

The greatest impairment allowances on 31 March 2022, calculated for trade receivables and their associated penalties were registered for CET Govora (25,108,898), Eco Energy SRL (24,736,066), Petprod SRL (23,539,650), Arelco Power (14,788,022), Total Electric Oltenia SA (14,185,577), Romenergy Industry (13,512,997), Romelectro SA (12,955,958), GETICA 95 (12,540,731), Elsaco Energy (9,276,118), and RAAN (8,516,707).

The development of impairments allowances for clients was the following:

	31 March 2022	31 December 2021
Balance on 1 January	145,107,946	134,733,880
Recognition of impairment allowances	476,827	14,686,349
Impairment allowances resumed	278,653	4,312,283
Balance at the end of the period	145,306,120	145,107,946

The development of impairment allowances for other receivables was the following:

	31 March 2022	31 December 2021
Balance on 1 January	66,918,366	56.855,137
Recognition of impairment allowances	71,276	14,780,396
Impairment allowances resumed	2,672	4,717,167
Balance at the end of the period	66,986,970	66,918,366

Financial assets that might submit the Company to the collection risk are trade receivables and cash and cash equivalents. The Company has put in practice a series of policies making sure the services are sold to clients with proper collection, by including in their trading contracts the obligation to constitute financial securities. The value of receivables net of value allowances represents the maximum amount exposed to the collection risk. The collection risk associated to such receivables is limited, because such amounts are mainly owed by state-owned companies.

Cash has been placed into financial institutions considered as providing minimum risk.

21. Later events

• Indirect major holdings of NN Group NV (over 5% of the share capital of TEL)

The percentage held in intended mode on 11 April 2022 by NN Group NV was of 5.62% of the Company's share capital.

• Decision 3 of the Shareholders' General Ordinary Assembly of 18 April 2022

On 18 April 2022 the Shareholders' General Ordinary Assembly approved beginning with 22 April 2022 until 21 August 2022 appointing the following Supervisory Board members in the Company, with four months' mandate:

Mrs. Oana-Cristina BALACCIU;
Mr. Adrian-Nicolae BLAJAN;
Mr. Catalin-Andrei DASCAL;
Mr. Victor- Florin DUMITRIU;
Mr. Dumitru Virgil ORLANDEA;
Mr. Costin-Mihai PAUN;
Mr. Alexandru-Cristian VASILESCU.

At the same time they established the remuneration of Supervisory Board members as being calculated according to article 8 of OUG 109/2011, approved with amendments and additions by Law 111/2016 and approved the form of the mandate contract to be concluded with Supervisory Board members and the person that will sign the mandate contracts of Supervisory Board members on behalf of the Company.

• Decision 4 of the Shareholders' General Ordinary Assembly of April 2022

On 28 April 2022 the Shareholders' General Ordinary Assembly approved:

The stand-alone financial statements of the National Power Grid Company Transelectrica SA for 2021 financial year;
The consolidated financial statements of the National Power Grid Company Transelectrica SA for 2021 financial year;
Accounting profit distribution, which remained after income tax deduction on 31.12.2021;
Constituting the reservesfor the revenues achieved by allocating transmission capacity on interconnection lines in 2021,
from the surplus obtained of taxable and non-taxable revaluation reserves when their destination changes;
Releasing the Directorate and Supervisory Board members of their managerial liability for 2021;

• Convocation of the shareholders' general extraordinary assembly

The Company Directorate convened on 16 May 2022 the Shareholders' general extraordinary assembly with the following agenda:

Approving the addition in the Company's business of activities encoded according to CAEN code: 3511 Electricity generation and changing accordingly the Articles of Association by adding article 6 let. B with this formulation: "Electricity generation (exclusively for the Company's own consumption) - activity of electricity generating installations; including thermal, nuclear, hydropower plants, with gas turbines, diesel and recoverable energy – CAEN code 3511".
Approving the move of the Company's headquarters of Bucharest City 1, Blvd. General Gheorghe Magheru 33 to Bucharest City 3, Str. Olteni 2-4, Platinum Centre Building and changing accordingly article 3 para (1) of the Articles of association, the new formulation being: "(1) Transelectrica has its headquarters in Romania, Bucharest City 3, Str. Olteni 2-4, Platinum Centre Building and secondary offices in Blvd. Hristo Botev 16-18, Bucharest 3".

• Smart Grid CARMEN project has officially become Project of Common Interest of the European Union

The Smart Grid Carpathian Modernised Energy Network (CARMEN) project developed by Delgaz Grid SA and CNTEE Transelectrica SA under partnership with the Hungarian transmission operator MAVIR Magyar Villamosenergia-ipari Átviteli Rendszerirányító ZRt, received the final approval from the European Union, being included in the fifth list of energy Projects of Common Interest (PCI).

Projects of Common Interest are key projects of power cross-border infrastructure with a view to achieve a more integrated and resilient internal European electricity market and supervise the energy and climate objectives.

The current PCI List includes 98 projects: 67 projects of electricity transmission and storage, 20 of natural gas, 6 of CO2 networks 5 projects of smart grids.

CARMEN project amounts to about 150 million Euro, its financing request will be submitted in the second half of 2022.

Implementation will last 6 years beginning with 2023 until 2028.

• Appointing the Chairman and the Consultative Committees of the Supervisory Board

On 3 May 2022 the Supervisory Board elected Mr. Catalin-Andrei DASCAL as chairman and designated the members of consultative committees of the Supervisory Board as follows:

Nomination and remuneration committee:

Alexandru-Cristian VASILESCU – chairman Oana-Cristina BALACCIU Costin-Mihai PAUN Dumitru Virgil ORLANDEA Catalin-Andrei DASCĂL

Audit committee:

Oana-Cristina BALACCIU – chairperson Adrian-Nicolae BLAJAN Victor- Florin DUMITRIU

Cătălin-Andrei DASCAL

Costin-Mihai PAUN

Energy security committee:

Costin-Mihai PAUN – chairman

Alexandru-Cristian VASILESCU

Victor- Florin DUMITRIU

Adrian-Nicolae BLAJAN

Dumitru Virgil ORLANDEA

AI Terminal

C.N.T.E.E. Transelectrica

2299_10-q_2022-05-13_cbda3cc3-e7c1-4aa4-8712-3eda10929b3b.pdf

Date of communiqué: 13 May 2022

Important event to report: Abstract of financial results from Quarter I 2022

Such reporting includes:

Gabriel ANDRONACHE Executive Director General Directorate Chairman

NPG Co. TRANSELECTRICA

REPORT ON THE ECONOMIC – FINANCIAL ACTIVITIES

OF NPG Co. TRANSELECTRICA SA

In accordance with the provisions of article 67 from law 24/2017 on the capital market and

Regulation 5/2018 issued by the Financial Supervisory Authority (ASF)

for the time period ended on 31 March 2022

RESPONSIBLE PERSONS' STATEMENT

Key figures of Q1 2022 vs Q1 2021

KEY FIGURES

91RON mn ▼ -18% Acquisition of tangible and intangible assets y/y 23.74 RON mn ▼ -48% Fixed assets recorded in the accounts (commissioning) y/y

Financial data

OPERATIONAL RESULTS

Charged volume of electricity

Operational revenues

Operational expenses

Inter TSO Compensation (ITC) Expenses

Operational result

Gross result (EBT)

Financial result

Net result

FINANCIAL POSITION

Non-current assets

Assets of the usage rights for leased assetsbuildings

Financial assets

Current assets

Liabilities

Interest-bearing liabilities

Shareholders' equity

DEVELOPMENT OF SHARES

(01-Jan-2022 la 31-March-2022)

MAIN RISKS AND UNCERTAINTIES

Operational data

ENERGY BALANCE WITHIN SEN

GENERATION MIX

NATIONAL GENERATION FLEET

Installed capacity Q1 2022 (18,569 MW, gross)

CROSS-BORDER FLOWS

ONE'S OWN TECHNOLOGICAL CONSUMPTION

OTC DEVELOPMENT FACTORS

Investments

NON-CURRENT ASSETS REGISTERED IN ACCOUNTING BOOKS

PROCUREMENT OF ASSETS

INVESTMENT ACTIVITY on 31.03.2022

COMPANY FINANCIAL INVESTMENTS

TSCNET (TSCNET Services GmbH)

JAO (Joint Allocation Office)

SEE RSC (Centre Coordinating the Electricity Network of South-Eastern Europe)

Significant events

JANUARY - MARCH 2022

Agreement for EIB advisory services

Extension of mandates and changes in the management bodies' membership

Presentation of the annual financial results 2021

Regulated tariffs applicable from April 1, 2022

LATER EVENTS

Major indirect holdings of NN Group N.V. (over 5% of TEL's share capital)

Decision no. 3 of the Shareholders' Ordinary General Assembly of April 18, 2022

Convening the Shareholders' Extraordinary General Assembly

The CARMEN Smart Grid Project has officially become a Project of Common Interest of the European Union

Appointment of Chairman and Advisory Committees within the Supervisory Board

SHAREHOLDER STRUCTURE

TARIFFS

Transmission tariff (transmission service + functional system service)

COMPONENȚA DIRECTORATULUI

Corrections related to the transmission service

Corrections:

Scenarios:

DISPUTES

ROMENERGY INDUSTRY

RAAN

CET Govora

RESITA CITY

NAFA

CONAID COMPANY SRL

⁹¹RON mn ▼ -18% Acquisition of tangible and intangible assets y/y 23.74 RON mn ▼ -48% Fixed assets recorded in the accounts (commissioning) y/y