Societatea Energetica Electrica S.A Annual Report 2023

FY2023 Annual Report · Societatea Energetica Electrica S.A
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Annual
REPORT

2023

2

3

Summary

04

06

Message from the 

Chair of the Boards of 

Directors

Message from the Chief 

Executive Officer

08

366

370

2023 Directors’ Report

Explanations Regarding 

the Differences between 

Consolidated Financial 

Statements OMFP 

2844/2016 vs IFRS-EU

2023 Separate Financial 

Statements

438

446

524

INDEPENDENT AUDITOR’S 

2023 Consolidated 

REPORT on 2023 

Financial Statements 

separate financial 

(OMFP 2844/2016) 

statements

INDEPENDENT AUDITOR’S 

REPORT on 2023 

consolidated financial 

statements (OMFP 
2844/2016)

years from the admission to trading on the Bucharest 
Stock Exchange and London Stock Exchange.

Electrica Group is a key player in the energy sector, active in the 
distribution, supply, production, and energy services segments, 
serving over 3.9m users.

532

614

624

2023 Consolidated 

INDEPENDENT AUDITOR’S 

Financial Statements 

REPORT on 2023 

Statement of the 

Management

(IFRS-EU) 

consolidated financial 

statements (IFRS-EU)

2023 ANNUAL REPORTSUMMARY2023 ANNUAL REPORT4

5

MESSAGE FROM 
THE CHAIR OF THE BOARD OF DIRECTORS

With a challenging year behind us, we are proud to look back on Electrica Group’s achievements 
in 2023 and move confidently and enthusiastically towards the future. Last year saw a remarkable 
development, highlighting the team’s ability to successfully navigate the energy market complexities 
and to turn obstacles into opportunities for growth and innovation.

2023 marked a significant milestone in the company’s path to excellence, managing to generate a 
financial result that reflects solid performance at consolidated level and efficiency of cost optimization 
strategies. This result is proof of our ongoing commitment to efficiency, sustainability and innovation.

In the context of a constantly changing energy landscape, Electrica has adapted and refined its 
strategy in force to meet the needs of the customers and of the market and to ensure a smooth 
transition to a green economy, at the end of the year being launched the strategy for the next six 
years. The new strategic directions are meant to strengthen the Group’s position on the energy market 
and to accelerate performance growth, bringing benefits for customers through diversification and 
improvement of the portfolio of services, and also benefits for shareholders through stable long-term 
results. 

As we look to the future, our strategy for 2024-2030 is clear and ambitious. We aim to accelerate the 
transition to green energy and to contribute to achieving the national and European sustainability 
goals. We are determined to explore new growth opportunities and to harness the potential of 
emerging technologies for creating innovative and sustainable energy solutions.

The year 2024 also represents a transition phase from the Fourth Regulatory Period (RP4) to the Fifth 
Regulatory Period (RP5), which will bring important news for the industry. Therefore, the watchword of 
this year should be flexibility - the willingness to find the best solutions, to adapt to a world in constant 
transformation.

At the same time, 2024 also marks the 10th anniversary of the company’s listing on the capital market. 
This milestone opened new horizons for Electrica, by accessing capital for strategic investments and 
expansion in related fields. Moreover, the listing strengthened the commitment to transparency and 
excellence in corporate governance, building a solid foundation for the relationship with shareholders 
and investors. This anniversary is the opportunity to reaffirm Electrica Group’ vision and to renew 
its commitment to all stakeholders. It is an opportunity to celebrate past achievements but, more 
importantly, to look with optimism and determination to the future. 

In conclusion, I would like to express my gratitude to all those who contributed to Electrica’s success 
- the dedicated team, partners, shareholders and, of course, customers. Together, we will continue to 
innovate, to grow and to contribute to a greener and more sustainable world!

D um it ru Chi riță
Chair of the Board of Directors of Electrica

MESSAGE FROM THE CHAIR OF THE BOARDS OF DIRECTORSMESSAGE FROM THE CHAIR OF THE BOARDS OF DIRECTORS2023 ANNUAL REPORT2023 ANNUAL REPORT6

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MESSAGE FROM THE CEO
The energy sector continues to undergo a stage marked by significant transformations globally 
and locally, against the backdrop of climate change, legislative developments, and technological 
innovations. With over 125 years of experience and a solid team, Electrica has successfully responded 
to the challenges, meeting the set objectives, although the path has not always been easy.

The year 2023 was defined by our commitment to green energy and strategic investments. We focused 
on developing renewable energy production, expanding in this segment being more than just a 
business decision. It is part of our vision to contribute to building a sustainable future for Romania. As a 
Romanian company, we take responsibility for innovating and implementing solutions that benefit not 
only us and our customers but society as a whole. This is the direction we pursue with determination, 
with a strong focus on promoting a green economy and ensuring a cleaner environment for future 
generations.

At the same time, thanks to optimization measures and the joint effort of the Group, we achieved 
solid financial results. The Electrica Group ended 2023 with an 11% increase in consolidated net profit, 
amounting to 620.4 million lei, and a 27% increase in EBITDA, reaching a value of 1,732.7 million lei.

Together, we have succeeded in increasing the capacity of Group companies to optimize their 
operations, make investments, even exceeding 100% in the distribution area, improve network access, 
and, very importantly, better coordinate field activities. We continued to invest heavily in modernizing 
our IT infrastructure and management systems, as well as in cybersecurity, all contributing to the 
safety and improvement of the quality of services offered to our customers. The optimization process 
is a complex and continuous one, naturally pursuing the interests of both our customers and our 
shareholders.

Also, through our distribution operator, last year we achieved another important milestone - attracting 
non-reimbursable financing totalling about a quarter of a billion euros for the development and 
modernization of the networks we manage. This is the largest amount in the field. 

In terms of recognition, for the third consecutive year, Electrica has been among the companies 
that received a maximum score of 10 in the VEKTOR evaluation, the indicator of communication with 
investors for companies listed on the stock exchange. Moreover, this has been a constant concern 
for us, as throughout the year we were one of the three companies selected in the Investor Relations 
and Liquidity Support Program run by the European Bank for Reconstruction and Development and the 
Bucharest Stock Exchange.

Also, another remarkable achievement is the inclusion of Electrica in the international FTSE Russell 
indices starting on 18 March 2024, which complements the fact that Electrica shares recorded an 
exceptional yield both in 2023 (43.4%) and in the first quarter of 2024 (16%), exceeding the BET-TR index 
(40% in 2023, respectively 10.8% in the first quarter of 2024).

Also in 2023, Electrica maintained its position as 7th in the Top 50 most valuable Romanian brands, 
being the highest position occupied so far. The company’s brand market value, estimated in the 
ranking, reached 260 million euros, representing a 28% increase compared to 2022.

Last but not least, I want to thank each member of the Electrica team for their dedication and effort in 
2023. I am grateful to our partners, collaborators, shareholders, and, of course, our customers for the 
trust they have placed in us and for the constant support they have provided. Collectively, we hold the 
power to craft a greener and more prosperous future for Romania’s energy landscape!

Al ex a ndru Chiriță 
Electrica’s CEO

MESSAGE FROM THE CHIEF EXECUTIVE OFFICERMESSAGE FROM THE CHIEF EXECUTIVE OFFICER2023 ANNUAL REPORT2023 ANNUAL REPORT8

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DIRECTORS’ REPORT 
FOR THE YEAR 2023

(based on the individual and consolidated financial statements 

prepared in accordance with the International Financial Reporting 

Standards as adopted by the European Union) – IFRS-EU

REGARDING THE ECONOMIC AND FINANCIAL ACTIVITY OF 

SOCIETATEA ENERGETICA ELECTRICA S.A. and ELECTRICA GROUP 

as well as

(based on the individual and consolidated financial statements 

prepared in accordance with the Order of the Ministry of Public 

Finance no. 2844/2016 for the approval of the Accounting 

Regulations in accordance with International Financial Reporting 

Standards) – OMFP 2844/2016

REGARDING THE ECONOMIC AND FINANCIAL ACTIVITY OF 

SOCIETATEA ENERGETICA ELECTRICA S.A. and ELECTRICA GROUP 

in compliance with art. 63 of the Law no. 24/2017 on issuers of 

financial instruments and market operations and with annex no. 

15 to ASF Regulation no. 5/2018 and the Bucharest Stock Exchange 

for the 12-month period ended 31 December 2023 

Code

NOTE: This report contains the financial analysis of both sets of 

financial statements mentioned above, which were drawn up 

and submitted to the approval of the Ordinary General Meeting 

of Shareholders on 27 April 2023 by the Board of Directors of 

Electrica S.A.. Further in this report, where there are differences 

between financial indicators, the corresponding standard will be 

expressly marked (S-IFRS-EU, respectively S-OMFP 2844/2016)

Free translation from Romanian, which is the official and binding version, and will 

prevail, in the event of any discrepancies with the English version

10

11

Contents

Identification details of Electrica

1  Electrica 2023 Overview

1.1

1.1.1

1.1.2

2023 Key financial data

2023 Key financial data - S-IFRS-EU

2023 Key financial data - S-OMFP 2844/2016

1.2

Key events in 2023

1.2.1

1.2.2

1.2.3

1.2.4

1.2.5

1.2.6

1.3

1.3.1

1.3.2

1.3.3

1.3.4

Decisions of ELSA’s BoD

General Meetings of Shareholders (GMS)

Other relevant events

Litigations with significant impact on the financial performance

Distribution segment

Supply segment

Subsequent events to the balance sheet date

General Meetings of Shareholders

Decisions of ELSA’s BoD

Other relevant events

Litigation

2  Electrica Group

2.1

2.2

2.3

2.4

Organizational structure

Key elements of the 2024 – 2030 Corporate Strategy

Outlook

Key factors, directions and significant market trends affecting the operational 
results of Electrica Group

3  Electrica on the capital markets

3.1

3.2

3.2.1

3.2.2

Ownership structure

Shares evolution on BSE and Global depository receipts (GDRs) evolution on LSE

BSE shares:

Global Depositary Receipts (GDRs) on the LSE:

14

16

18

18

19

26

26

28

29

40

45

47

50

50

50

51

53

55

56

59

63

68

75

76

77

77

78

3.3

3.4

3.5

3.6

3.7

Investor relations (IR)

Related parties transactions

Dividends policy

Dividend distribution

Own shares

4  Corporate Governance in ELSA

4.1

4.2

4.3

4.4

4.5

4.6

4.7

4.8

4.9

Corporate Governance Code

General Meeting of ELSA’s Shareholders

Shareholders’ rights

ELSA’s Board of Directors

The activity of ELSA’s Board of Directors and of its consultative  
committees in 2022

ELSA’s Executive management

Remuneration of the Directors and of the Executive Managers with mandate 
agreements

Statement regarding the corporate governance “Comply or Explain”

Implementing action plans undertaken by signing the framework agreement 
with EBRD

4.10

Internal audit activity report for 2023

5  Operating activity of Electrica in 2023

5.1

Operating segments

5.1.1

5.1.2

5.1.3

5.1.4

Distribution segment

Supply segment

Energy services segment

Electricity production

5.2

Fixed assets

5.2.1

5.2.2

Tangible assets – summarize key aspects of their location and main 
characteristics

Tangible assets – summarize key aspects of their attrition

81

83

83

84

85

87

88

90

92

94

108

116

122

122

132

141

143

144

145

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148

149

149

150

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5.2.3

5.2.4

5.3

5.4

5.5

5.6

5.7

5.8

5.9

Investments

Aspects of ownership of tangible assets

Procurement

Sales activity

Personnel

Environmental considerations

Research and development activities

Significant aspects of the impact of subsidies on the capitalization of 
additional costs related to technological consumption (NL) 

Principle of business continuity – substantiation and working hypothesis

6  Electrica financial reporting for 2023

6.1

6.1.1

6.1.2

6.2

6.2.1

6.2.2

6.3

6.3.1

6.3.2

6.4

6.5

6.6

6.7

6.8

6.9

7  Statements

Consolidated statement of the financial position

Consolidated statement of the financial position – S-IFRS-EU

Consolidated statement of the financial position – S-OMFP 2844/2016

Consolidated statement of profit or loss

Consolidated statement of profit or loss – S-IFRS-EU

Consolidated statement of profit or loss – S-OMFP 2844/2016

Consolidated cash flow statement

Consolidated cash flow statement –S-IFRS-EU

Consolidated cash flow statement- S-OMFP 2844/2016

Separate statement of the financial position

Separate statement of profit or loss

Separate cash flow statement

Restatements – S-IFRS-EU

Risk management

Description of the main features of internal control and risk management 
systems in relation to the financial reporting process

152

157

157

158

162

166

168

169

170

173

174

174

180

186

186

192

199

199

203

207

212

214

218

220

233

237

Appendix 1 – Litigations

A.1

Electrica Group litigations in 2023:

A.1.1

A.1.2

A.1.3

A.1.4

A.1.5

Disputes with ANRE

Fiscal matter disputes

Other significant litigations (with a value higher than EUR 500 thousand)

Litigations against the Romanian Court of Accounts

Other litigations with significant impact204

Appendix 2 – Details of the main investments of Electrica Group during 2023

Appendix 3 – Applicable regulatory framework

A.3.1

Applicable legal framework compared to 2023 vs 2022

A.3.1.1

Distribution activity

A.3.1.2

Supply activity

A.3.2

Changes to the legal framework in 2023/2024 up to the date of approval of 
the financial statements

A.3.2.1

Distribution segment

A.3.2.2

Supply segment

Appendix 4 – Corporate Governance

A.4.1

A.4.2

A.4.3

A.4.4

The Board of Directors of ELSA’s subsidiaries

Executive management of ELSA’s subsidiaries

Number of shares owned by the managers of Electrica Group

General Meetings of Shareholders of ELSA subsidiaries

Appendix 5 – Table list

Appendix 6 – Figures list

Glossary

240

240

240

242

245

256

257

267

281

281

281

313

340

340

347

351

351

352

355

356

358

360

362

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Identification details of Electrica

Report date: 25 March 2024

Name of the Issuer: Societatea Energetica Electrica S.A.

Headquarter: 9, Grigore Alexandrescu Street, 1st District, Bucharest, Romania

Telephone/fax number: +4021.208.5999; +4021.208.5998

Fiscal code: 13267221

Trade Registry No: J40/7425/2000 

LEI Code (Legal Entity Identifier): 213800P4SUNUM5AUDX61

Subscribed and paid share capital: RON 3,464,435,970

Main characteristics of issued shares: 346,443,597 ordinary shares of 10 RON nominal value, out of 

which 6,890,593 treasury shares and 339,553,004 shares issued in dematerialized form and freely 

transferable, nominative, tradable and fully paid.

Regulated market where the issued securities are traded: the company’s shares are listed on the 

Bucharest Stock Exchange (ticker: EL) and the Global Depositary Receipts (ticker: ELSA) are listed on 

the London Stock Exchange.

Reporting period: 2023 Year (period 1 January - 31 December 2023)

Applicable accounting standards:

Audit:

• 

International Financial Reporting Standards as 

The consolidated financial statements (both sets, S-IFRS-

approved by the European Union (“IFRS-EU”)

EU and S-OMFP 2844/2016) and respectively the individual 

•  Order of the Ministry of Public Finance no. 2844/2016 

financial statements as of and for the period ended 31 

for the approval of the Accounting Regulations in 

December 2023 are audited by an independent financial 

accordance with International Financial Reporting 

auditor.

Standards (OMFP 2844/2016)

Table 1. Company details

ISIN

ROELECACNOR5

US83367Y2072

Ordinary Shares

GDR

Bloomberg Symbol

Currency

0QVZ

RON

Nominal Value

RON 10 

ELSA:LI

USD

-

Stock Market

Bucharest Stock Exchange REGS

London Stock Exchange MAIN MARKET

Ticker

Source: Electrica

EL

ELSA

2023 DIRECTORS’ REPORT2023 ANNUAL REPORT2023 DIRECTORS’ REPORT2023 ANNUAL REPORT16

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1. ELECTRICA 2023
OVERVIEW

18

19

1.1  2023 Key financial data 
1.1.1  2023 Key financial data - S-IFRS-EU

S-IFRS-EU: In 2023, the net result of the Electrica Group was a profit of RON 772.1 mn., a result generated 

mainly by the performance of the distribution segment in the context of decreasing electricity costs to 

cover NL. as a result of the implementation of the MACEE centralized purchase mechanism, according to 

which producers are to sell 80% of the available energy at a price of 450 RON/MWh, impact mitigated by the 

increase in volumes of electricity needed to cover grid losses.

S-IFRS-EU: For the supply segment, both in 2023 and 2022, the effect of retail electricity prices was covered 

by subsidies received from the state authorities as a result of the application of the electricity and natural 

gas price cap mechanism, following the application of Ordinance 27/2022, as amended and supplemented. 

The way these schemes were implemented and the mechanism for the settlement of the amounts 

granted as support to customers, ex-post from the state budget to the electricity suppliers, generated 

constraints in terms of cash flow, as well as uncertainties regarding the full recovery of these amounts by 

the suppliers. In this context, EFSA has adapted its medium and long-term strategy to manage the impact 

of these measures on the company’s activities in a responsible and sustainable manner in the context of a 

regulatory framework that has undergone many successive and major changes in recent times.

S-IFRS-EU: As of 31 December 2023, the Group has a capital structure with net debt position  of RON 3,835 

mn. (31 December 2022: RON 3,051 mn., respectively 31 December 2021: RON 1,056 mn.).

Figure 1: Consolidated revenue of Electrica 
Group (RON mn.) - S-IFRS-EU

Figure 2: EBITDA (RON mn.) and EBITDA margin 
(%)- S-IFRS-EU

10,010
10,010

9,8179,817

9,401

9,273

7,1797,179

6,597

17.5%

1,714

3.7%

374

-1.8%

(128)

Green Certificates Revenues
Revenues excl Green Certificates

EBITDA

EBITDA Margin

Source: Electrica

Source: Electrica

S-IFRS-EU: The revenues of the Electrica Group in 2023, 2022 and 2021 were RON 9,817 mn., RON 10,010 mn., 

respectively RON 7,179 mn.

Figure 3: Consolidated net profit (RON mn.) - 
S-IFRS-EU

Figure 4: Net debt (RON mn.) - S-IFRS-EU

Table 2. Key financial data for 2023 – 2021 - S-IFRS-EU

(RON mn.)

Revenue

Other operating income

Operational costs

EBITDA 

EBIT

Gross profit

Net profit

2023

9,817

3,499

2022*

10,010

2,841

2021

7,179

196

(12,123)

(12,973)

(7,980)

1,714

1,192

898

772

374

(123)

(288)

(240)

(128)

(606)

(632)

(553)

Source: Electrica
*The amounts for 2022 have been restated, detailed in sub-chapter 6.7 of this report

S-IFRS-EU: As can be seen in the graphs below, the EBITDA margin increased by RON 1,340.5 mn. in 2023 

compared to 2022 (vs. RON 502 mn. increase in 2022 compared to 2021), while the net profit margin 

increased by RON 1,012.6 mn. (vs. increase RON 312.5 mn. in 2022 compared to 2021).

1 Adjusted EBITDA (Earnings before interest, tax, depreciation and amortisation or namely EBITDA) is defined and calculated as profit/
(loss) before tax adjusted for i) depreciation, amortization and impairment/reversal of impairment of property, plant and equipment and 
intangible assets, and iii) net finance income. EBITDA is not an IFRS measure and should not be treated as an alternative to IFRS measures. 
Moreover, EBITDA is not uniformly defined. The method used to calculate EBITDA by other companies may differ significantly from that used 
by the Group. As a consequence, the EBITDA presented in this note cannot, as such, be relied upon for the purpose of comparison to EBITDA 
of other companies.

7.9%

-2.4%

3,051

3,835

-7.7%

1,056

Net Result

Net Result Margin

Source: Electrica

Source: Electrica

1.1.2  2023 Key financial data - S-OMFP 2844/2016

S-OMFP 2844/2016: In 2023, the net result of the Electrica Group was a profit of RON 620 mn., a result 

generated mainly by the performance of the distribution segment in the context of decreasing electricity 

costs to cover NL. as a result of the implementation of the MACEE centralized purchase mechanism, 

according to which producers are to sell 80% of the available energy at a price of 450 RON/MWh, impact 

mitigated by the increase in volumes of electricity needed to cover grid losses.

Starting from 30 September 2022, the Company applies the provisions of GEO no. 119/2022, whereby the 

additional costs with the purchase of electricity made in the period 1 January 2022 - 31 August 2023, in 

order to cover its own technological consumption, compared to the costs recognized in the regulated 

tariffs, are capitalized quarterly. For the evolution in terms of financial performance 2023 vs 2022, in 2023, 

the capitalized NL for the period 01 January - 31 December 2023 was approx. 18 mn. RON compared to 2022 

2 Net debt/(Cash) is defined as bank borrowings + bank overdrafts + financial leases + funding for concession agreements - cash and cash 

equivalents – restricted cash - bank deposits, treasury bills and government bonds.

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when a value of 989 mn. RON was recorded, the Group managing to reduce the additional costs related to 

S-OMFP 2844/2016: As of 31 December 2023, the Group has a capital structure with net debt position  of RON 

the purchase of electricity for NL on the distribution segment. The operational performance was motivated 

3,835 mn. (31 December 2022: RON 3,051 mn., respectively 31 December 2021: RON 1,056 mn.).

by the decrease in NL costs and by the reduction of other operational costs as well as by higher revenues 

from reactive energy. It should be mentioned that the intangible assets built up together with the income 

from capitalisation of NL costs are non-cash, in the coming periods they will be recovered in terms of 

billings and subsequently receipts, starting from 01 April 2023.

S-OMFP 2844/2016: For the supply segment, both in 2023 and 2022, the effect of retail electricity prices 

was covered by subsidies received from the state authorities as a result of the application of the electricity 

and natural gas price cap mechanism, following the application of Ordinance 27/2022, as amended and 

supplemented. The way these schemes were implemented and the mechanism for the settlement of 

the amounts granted as support to customers, ex-post from the state budget to the electricity suppliers, 

generated constraints in terms of cash flow, as well as uncertainties regarding the full recovery of these 

amounts by the suppliers. In this context, EFSA has adapted its medium and long-term strategy to manage 

the impact of these measures on the company’s activities in a responsible and sustainable manner in 

the context of a regulatory framework that has undergone many successive and major changes in recent 

times.

S-OMFP 2844/2016: The revenues of the Electrica Group in 2023, 2022 and 2021 were RON 9,817 mn., RON 

10,010 mn., respectively RON 7,179 mn. 

Table 3: Key financial data for 2023 – 2021 - S-OMFP 2844/2016

(RON mn.)

Revenue

Other operating income

Capitalised costs of intangible non-current assets

2023

9,817

3,499

19

2022

10,010

2,841

989

2021

7,179

196

-

Figure 5: Consolidated revenue of Electrica 
Group (RON mn.) - S-OMFP 2844/20166

Figure 6: EBITDA (RON mn.) and EBITDA margin 
(%) - S-OMFP 2844/2016

10,010
10,010

9,8179,817

7,1797,179

6,597

9,401

9,273

-1.8%

13.6%

1,363

17.7%

1,733

Green Certificates Revenues
Revenues excl Green Certificates

EBITDA

EBITDA Margin

Source: Electrica

Source: Electrica

Figure 7: Consolidated net profit (RON mn.) - 
S-OMFP 2844/2016

Figure 8: Net debt (RON mn.) - S-OMFP 
2844/20166

5.6%

559

6.3%

620

(553)

-7.7%

3,051

3,835

1,056

Operational costs

(12,323)

(13,011)

(7,980)

Net Result

Net Result Margin

EBITDA 

EBIT

Gross profit

Net profit

Source: Electrica

1,733

1,011

717

620

1,363

829

664

559

(128)

(606)

(632)

(553)

Source: Electrica

Source: Electrica

DISTRIBUTION SEGMENT

Essential market information:

S-OMFP 2844/2016: As can be seen in the graphs below, the EBITDA margin increased by RON 370 mn. in 

•  Electricity distribution in Romania is fulfilled mainly by six electricity distribution system operators, 

2023 compared to 2022 (vs. RON 1,491 mn. increase in 2022 compared to 2021), while the net profit margin 

regulated by ANRE;

increased by RON 61 mn. (vs. increase RON 1,112 mn. in 2022 compared to 2021).

•  Each company is responsible for the exclusive distribution of electricity in the region for which it is 

3 Adjusted EBITDA (Earnings before interest, tax, depreciation and amortisation or namely EBITDA) is defined and calculated as profit/
(loss) before tax adjusted for i) depreciation, amortization and impairment/reversal of impairment of property, plant and equipment and 
intangible assets, ii) impairment of assets held for sale and iii) net finance income. EBITDA is not an IFRS measure and should not be treated 
as an alternative to IFRS measures. Moreover, EBITDA is not uniformly defined. The method used to calculate EBITDA by other companies may 
differ significantly from that used by the Group. As a consequence, the EBITDA presented in this note cannot, as such, be relied upon for the 
purpose of comparison to EBITDA of other companies.

authorized, under a concession agreement concluded with the Romanian State;

•  PPC (formerly Enel) owns three distribution companies each, while Electrica through Distributie Energie 

Electrica Romania (formed by the merger at 31 December 2020 of Societatea de Distributie a Energiei 

Electrice Transilvania Nord, Societatea de Distributie a Energiei Electrica Transilvania Sud and Societatea 

de Distributie a Energiei Electrice Muntenia Nord), owns 3 network zones, CEZ through Distributie Oltenia 

and E.ON through Delgaz Grid own the remaining two;

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•  Electrica Group is a key player in the electricity distribution sector, both in terms of areas covered and of 

KEY FINANCIAL INDICATORS FOR DISTRIBUTION SEGMENT

number of users served;

•  The estimated Regulated Assets Base (RAB) value at the end of 2023 was RON 7.2 bn (nominal terms);

• S-IFRS-EU: In 2023, revenues from the electricity distribution segment increased by 

•  203,391 km of electric lines - 7,604 km for High Voltage (“HV”), 46,941 km for Medium Voltage (“MV”) and 

148,846 km for Low Voltage (“LV”);

•  Total area covered: 97,196 km2, 40.8% of Romania’s territory;

•   3.93 mn. users (2023) for the distribution activity;

•   17.05 TWh of electricity distributed in 2023, a decrease of 3.8% as compared to 2022;

•  39.7% market share for the distribution of electricity to final users in 2022 (based on distributed 

quantities, according to ANRE report for 2022).

Figure 9: Romanian electricity distribution map

Source: Electrica

Figure 10: Evolution of the number of users (mn.)

Figure 11: Quantity distributed (TWh)

9.559.55

5.785.78

3.773.77

9.679.67

5.875.87

3.803.80

9.799.79

9.99.9

5.965.96

6.066.06

3.833.83

3.883.88

44.90
44.90

44.1044.10

46.30
46.30

44.65
44.65

27.1727.17

26.62
26.62

27.83
27.83

26.93
26.93

17.73
17.73

17.48
17.48

18.47
18.47

17.73
17.73

Electrica

Others

Electrica

Others

Source: ANRE Report for performance indicators’ monitoring 
2022, Electrica

Source: ANRE Report for performance indicators’ monitoring 2022, 
Electrica

approximately RON 1,014.8 mn., or 29.9%, to RON 4,411.5 mn., from RON 3,396.6 mn. in 2022 
mainly due to the effect of the RON 407.6 mn. increase in revenues recognized under IFRIC 
12 (recognised on the basis of the stage of completion of the works, in accordance with the 
accounting policy on the recognition of revenue from construction contracts), to which was 
added the increase in distribution tariffs as well as the decrease in volumes of electricity 
distributed, with a net impact of RON 725.9 mn. or 39.9%.

• S-IFRS-EU: The net profit of the segment is RON 637.8 mn. in 2023, compared to the net loss 

of RON 491.2 mn. in 2022. The net profit is favourably influenced by the increase of revenue of 
RON 1,014.8 mn., reaching RON 4,411.5 mn. in 2023 compared to RON 3,396.6 mn. in 2022. 
• S-OMFP 2844/2016: In 2023, revenues from the electricity distribution segment increased 

by approximately RON 1,014.8 mn., or 29.9%, to RON 4,411.5 mn., from RON 3,396.6 mn. in 2022 
mainly due to the effect of the RON 407.6 mn. increase in revenues recognized under IFRIC 
12 (recognised on the basis of the stage of completion of the works, in accordance with the 
accounting policy on the recognition of revenue from construction contracts), to which was 
added the increase in distribution tariffs as well as the decrease in volumes of electricity 
distributed, with a net impact of RON 607.2 mn. or 24.9%.

• S-OMFP 2844/2016: EBITDA in the distribution segment was favourably influenced in 2022 by 
revenues from the production of intangible assets from the capitalisation of additional costs 
with NL which contributed with an increase of RON 989.3 mn. compared to 2023 when their 
contribution was only RON 18.6 mn.. 

• S-OMFP 2844/2016: The net profit of the segment is RON 486.0 mn. in 2023, compared to the 
net profit of RON 308.2 mn. in 2022. The net profit is unfavourably influenced by the increase 
of the negative financial result by RON 57.7 mn., reaching RON 209.8 mn. in 2023 compared to 
the negative financial result of RON 152.0 mn. in 2022. 

• Also, at the beginning of the current RP4 regulatory period, ANRE made a total negative 

closing correction to RP3 amounting to RON (855) mn. (nominal terms) and RON (665) mn. 
(2018 terms), of which RON (341) mn. (2018 terms) for meters recognized as investments in 
RP2 (2008-2013). The meter correction was challenged in court by the distribution subsidiary 
of Electrica Group, because in 2013 ANRE recognized the meters in RAB based on the principle 
of non-discrimination of all distribution operators, although they were not registered as fixed 
assets. The total negative correction related to RP3 decreased the regulated profitability 
related to RP4, with the value for 2023 being (93) mn. RON (nominal terms).

Figure 12: Revenues - distribution segment (RON 
mn.) - S-IFRS-EU

4,4114,411

Figure 13: EBITDA – distribution segment (RON 
mn.) - S-IFRS-EU

2,731

3,397

1,436
1,436

Source: Electrica

Source: Electrica

372

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Figure 14: Net Profit – distribution segment (RON 
mn.) - S-IFRS-EUU

Figure 15: Net debt/(cash) – distribution 
segment (RON mn.) - S-IFRS-EU

KEY FINANCIAL INDICATORS FOR SUPPLY SEGMENT

1,397

1,530
1,530

Revenues from electricity and natural gas supply decreased in 2023 by approximately RON 905.8 mn., or 

11.1%, to RON 7,280.3 mn. from RON 8,186.0 mn. in 2022.

Source: Electrica

Source: Electrica

Figure 16: Revenues - distribution segment (RON 
mn.) - S-OMFP 2844/2016

Figure 17: EBITDA – distribution segment (RON 
mn.) - S-OMFP 2844/2016

4,4114,411

3,397

2,731

1,455
1,455

1,017

Source: Electrica

Source: Electrica

Figure 18: Net Profit – distribution segment (RON 
mn.) - S-OMFP 2844/2016

Figure 19: Net debt/(cash) – distribution 
segment (RON mn.) - S-OMFP 2844/2016

1,397

1,530
1,530

706

Source: Electrica

Source: Electrica

SUPPLY SEGMENT

Essential market data (according to ANRE Report for November 2023)

• The supply market comprises both competitive segment and universal service and supplier of last resort 

(US and SoLR);

•  Universal service and supplier of last resort segment comprises five suppliers of last resort nominated at 

national level;

•  Competitive segment comprises 92 suppliers, (last resort suppliers active on Retail Market competitive 

segment included) from which 85 are relatively small (<4% market share);

Electrica Furnizare (EFSA) has a total market share of 16.61%; and on the competitive market has a share of 

10.25% (ANRE Report - November 2023). By comparison, in 2022 Electrica Furnizare had a total market share 

Quantities of electricity supplied decreased in 2023 by approximately 9%, due to the decrease in the 

customer portfolio, as well as the decrease in consumption at the national level (as an effect of electricity 

price increases but also energy efficiency measures implemented).

In terms of EBITDA, the supply segment recorded in 2023 a decrease to RON 305.5 mn. from the EBITDA of 

RON 390.9 mn. recorded in 2022, and also a decrease in the EBITDA margin from 4.8% in 2022 to 4.2% in 2023.

The supply segment has a net cash financial position that increased compared to 2022 by approx. 443.0 

mn. RON, reaching 1,892.4 mn. RON in 2023. 

Figure 20: Revenues - supply segment (RON 
mn.)

8,1868,186

Figure 21: EBITDA - supply segment (RON mn.)

5,772
5,772

5,188

7,570

7,280
7,280

6,731

4.8%

390.9

4.2%

305.5

-7.6%

Green Certificates Revenues
Revenues excl Green Certificates

EBITDA

EBITDA Margin

Source: Electrica 

Source: Electrica 

Figure 22: Net profit - supply segment (RON mn.)

Figure 23: Net debt/(Cash) - supply segment

3.2%

1.4%

1,892
1,892

1,449

-6.8

Net Result

Net Result Margin

242

of 17.96% and a competitive market share of 12.79% (ANRE report - December 2022).

Source: Electrica 

Source: Electrica

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1.2  Key events in 2023

During 2023 the following main events took place: 

1.2.1  Decisions of ELSA’s BoD

Changes in the composition of the BoD and 
BoD Committees

May 2023. 

•  On 31 July 2023, the Board of Directors of 

•  On 27 January 2023, ELSA’s Board of Directors 

Electrica decided to modify the Audit and Risk 

decided to establish a new consultative 

Committee component, for the period starting 

committee within its structure, the Climate 

with 1 August 2023 and until 31 December 2023.

Governance and Public Affairs committee.

The Climate Governance and Public Affairs 

–  Mr. Radu Mircea Florescu – Chair;

Audit and Risk Committee:

Committee:

–  Mr. Dragos-Valentin Neacsu – Chair;

–  Mr. George Cristodorescu – Member; 

–  Ms. Valentina Elena Siclovan – Member;

–  Mr. Iulian Cristian Bosoanca – Member.

–  Mr. Iulian Cristian Bosoanca – Member.

• On 15 December 2023, Electrica’s Board of 

Electrica decided the re-election of the BoD 

•  During the meeting from 15 May 2023, the Board 

Chair and to maintain the composition of its 

of Directors of the Company took note of the of 

consultative committees until 31 January 2024.

the ending of the mandate agreement of Mr. 

Cristodorescu George, BoD member.

Regarding the composition of ELSA’s BOD, on 31 

December 2023, it was the following:

•  On 16 May 2023, Electrica’s Board of Directors 

decided to modify as follows the composition for 

two of its consultative committees, for the period 

starting 17 May 2023 and until 31 December 2023, 

namely:  

The Strategy and Corporate Governance 

Committee:  

–  Mr. Gicu Iorga – Chair; 

–  Mr. Dragos Valentin Neacsu – Member; 

–  Mr. Adrian-Florin Lotrean – Member. 

The Climate Governance and Public Affairs 

Committee: 

– Mr. Dragos Valentin Neacsu – Chair; 

–  Mr. Radu Mircea Florescu – Member; 

–  Mr. Cristian Bosoanca – Member.

•  On 19 July 2023, Electrica’s Board of Directors 

appointed Ms. Valentina Elena Siclovan as 

interim member of the BoD, starting 24 July 

2023 until the next Ordinary General Meeting of 

Shareholders, on the position vacant since 15 

–  Mr. Iulian Cristian Bosoanca – Chair;

–  Mr. Gicu Iorga – Member;

–  Mr. Ion Cosmin Petrescu – Member;

–  Mr. Adrian-Florin Lotrean – Member 

(independent);

–  Mr. Dragos-Valentin Neacsu – Member 

(independent);

–  Mr. Radu Mircea Florescu – Member 

(independent);

–  Ms. Valentina Elena Siclovan – Member 

(independent)

Regarding the composition of the ELSA’s BoD 

Committees, on 31 December 2023, it was the 

following:

The Audit and Risk Committee:

–  Mr. Radu Mircea Florescu – Chair; 

–  Ms. Valentina Elena Siclovan – Member;

–  Mr. Iulian Cristian Bosoanca – Member.

The Nomination and Remuneration Committee:

–  Mr. Adrian-Florin Lotrean – Chair; 

–  Mr. Radu Mircea Florescu– Member;

–  Mr. Ion Cosmin Petrescu – Member. 

Development Officer (appointed for 4 years 

The Strategy and Corporate Governance 

–  Ms. Livioara Sujdea – Chief Distribution 

Committee: 

–  Mr. Gicu Iorga – Chair; 

Officer (appointed for twice 4 years 

mandate, starting 1 February 2021) and 

–  Mr. Dragos-Valentin Neacsu – Member;

Chief People Officer (interim, starting 3 

–  Mr. Adrian-Florin Lotrean – Member.

January 2022).

mandate, starting 15 March 2023);

The Climate Governance and Public Affairs 

Other BoD decisions

Committee:

–  Mr. Dragos Valentin Neacsu- Chair;

•  On 7 March 2023, Board of Directors of Electrica 

–  Mr. Radu Mircea Florescu – Member;

decided to convene the Ordinary General 

–  Mr. Cristian Bosoanca – Member.

Meeting of Shareholders and the Extraordinary 

BoD decisions regarding ELSA’s Executive 
Management

General Meeting of Shareholders, on 27 April 

2023.

•  In the meeting of 26 April 2023, the Board of 

Directors of Electrica approved the consolidated 

• On 27 February 2023, 26 April 2023, 24 August 

value of the Investment Plan (CAPEX) of the 

2023 and 14 December 2023, ELSA’s Board of 

Group for the year 2023. 

Directors decided to extend the term of office 

•  On 27 June 2023, Electrica’s Board of Directors 

granted to Mr Alexandru - Aurelian Chirita, 

decided to convene the Extraordinary General 

as Acting CEO, under the same conditions. 

Meeting of Shareholders of Societatea 

Currently, Mr. Chirita has a CEO mandate of until 

Energetica Electrica S.A., on 16 August 2023.

31 December 2024 (inclusively).

•  On 4 July 2023, Electrica’s Board of Directors 

•  On 27 February 2023, ELSA’s Board of Directors 

convened the Extraordinary General Meeting of 

decided to extend the duration of the mandate 

Shareholders of Societatea Energetica Electrica 

of Mr. Stefan-Alexandru Frangulea, as interim 

S.A. on 23 August 2023.

CFO, for a period of 2 years, until 27 February 

•  On 3 October 2023, Electrica’s Board of Directors 

2025 (inclusively). Currently, Mr. Frangulea 

convened the Extraordinary General Meeting of 

has a CFO mandate until 27 February 2025 

Shareholders of Societatea Energetica Electrica 

(inclusively).

S.A., on 22 November 2023.

•  On 14 March 2023, ELSA’s Board of Directors 

•  On 30 October 2023, Electrica’s Board of Directors 

decided the appointment of Ms. Ioana - Andreea 

convened the Ordinary General Meeting of 

Lambru, as Chief Business Development Officer 

Shareholders and Extraordinary General Meeting 

(CBDO), starting with 15 March 2023, for a four-

of Shareholders of Societatea Energetica 

year period. 

Electrica S.A. on 20 December 2023.

•  On 27 June 2023 the BoD acknowledged that, on 1 

•  On 30 November 2023, Electrica’s Board of 

June 2023, the mandate agreement of Mr. Mircea 

Electrica, at the request of the Ministry of 

Modran, CIO, was effectively terminated upon 

Energy, on behalf of the Romanian State, as a 

lapse of the 4-year duration.

shareholder of Electrica SA with 48.7948% of the 

share capital, decided to convene the Ordinary 

Regarding the composition of ELSA’s Executive 

General Meeting of Shareholders on 26 January 

Management, on 31 December 2023, it was the 

2024.

following:

•  On 14 December 2023, Electrica’s Board of 

–  Mr. Alexandru-Aurelian Chirita – CEO 

Electrica approved the Corporate Strategy of 

(appointed until 31 December 2024);

Electrica Group for 2024-2030.

–  Mr. Stefan-Alexandru Frangulea - CFO 

(appointed until 27 February 2025);

–  Ms. Andreea Lambru – Business 

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1.2.2  General Meetings of Shareholders (GMS)

OGMS and EGMS from 27 April 2023

EGMS from 23 August 2023

•  On 27 April 2023, the Ordinary General Meeting 

•  On 23 August 2023, the EGMS took place, 

of Shareholders (OGMS) and the Extraordinary 

physically and online through the voting 

General Meeting of Shareholders (EGMS), which 

platform https://electrica.voting.ro/, with a 

took place physically and online through the 

quorum of 78.4741% of the total voting rights and 

voting platform https://electrica.voting.ro/, with 

76.9133% of the share capital of the Company, 

a quorum of approx. 76.8% of the total voting 

which mainly approved:

rights, approved mainly:

–  In principle, the merger by absorption 

–  The separate and consolidated financial 

between Electrica (ELSA), Electrica Productie 

statements, drafted in accordance with 

Energie SA (EPE), Electrica Energie Verde 1 

OMFP 2844/2016 and IFRS-EU;

SRL (EEV) and Green Energy Consultancy & 

–  The total gross dividend value of RON 

Investments SRL (GECI), with Electrica (ELSA) 

39,999,343, the gross dividend per share 

as absorbing company;

of RON 0.1178, the date of payment of the 

–  The increase of the guarantee granted by 

dividends for the year 2022 as 23 June 2023 

ELSA within the nonrevolving term facility, 

and the registration date as 31 May 2023;

concluded between EBRD and DEER, in order 

–  The 2023 individual and consolidated 

to finance the current activity, especially 

budgets;

the purchase of the electricity necessary to 

–  A revision of the Remuneration Policy for 

cover the own technological consumption 

Directors and Executive Managers;

and the liquidity deficit. The amount of the 

–  The appointment of Deloitte Audit SRL as 

credit facility will increase from RON 180 mn. 

financial auditor for 3 years.

up to RON 240 mn.

Also, the OGMS and EGMS rejected some 

EGMS from 22 November 2023

modifications to the remuneration of the directors, 

the replacement of the long-term remuneration 

•  On 22 November 2023, the EGMS took place, 

plan for executive managers within the Electrica 

physically and online through the voting 

Group from granting virtual shares (OAVT) to 

platform https://electrica.voting.ro/, with a 

granting free shares, and, implicitly, the program for 

quorum of 77.03% of the total voting rights and 

buyback by the Company of its own shares.

75.49% of the share capital of the Company, 

EGMS from 16 August 2023

which mainly approved:

–  Increasing the loan ceilings for the EFSA 

and DEER (Electrica subsidiaries), up to 

•  On 16 August 2023, EGMS took place physically 

RON 850 mn. for each, with the Electrica SA 

and online through the voting platform https://

guarantee (which is not a real guarantee);

electrica.voting.ro/, with a quorum of approx. 

–  The conclusion of an additional act to the 

76.7% of the total voting rights. EGMS approved: 

loan agreement between DEER and the EIB 

–  The documentation on the basis of which 

land ownership certificates (Romanian 

“CADP”) are to be obtained: “Teren incinta 

Beius”; “Teren cladire Administrativa 

Oravita”; „Teren cladire Statie 110kv Otelu 

Rosu”.

(93414/7Dec2021) to increase the amount 

granted for the financing of the investment 

plan for the period 2012-2023 from  

EUR 90 mn. to EUR 120 mn..

–  Completing the secondary activities 

of Electrica SA with two new activities 

and updating the Articles of Association 

accordingly.

OGMS and EGMS from 20 December 2023

•  On 20 December 2023, the OGMS and EGMS took 

place, physically and online through the voting 

platform https://electrica.voting.ro/, with a 

quorum of 76.65% of the total voting rights, which 

mainly approved:

–  The election of Ms. Valentina Elena Siclovan, 

proposed by the shareholder European 

Bank for Reconstruction and Development 

(EBRD), as an independent member to fill 

the vacant position within Electrica BoD;

–  The separate interim financial statements 

for the first 9 months of 2023 of Electrica SA, 

in view of the Merger between ELSA and EPE, 

GECI and EEV1;

–  Implementation and completion, by 

31 December 2023, of the merger by 

absorption between Electrica SA (ELSA), as 

the absorbing company, and its subsidiaries 

EPE, GECI and EEV1, as absorbed companies.

1.2.3  Other relevant events

•  On 20 January 2023, the Ministry of Energy, as 

located near Vulturu locality, Vrancea county. 

the concessionaire, amended the concession 

The project is in the “ready-to-build” phase.  

contract with the Electrica Group for the 

distribution segment to reflect that, in the 

•  On 7 March 2023 Electrica published the 

event of early termination of the concession 

consolidated annual financial statements for the 

contract, for any reason, the concessionaire 

year 2022, drawn up in accordance with OMFP 

would reimburse the Group the current value 

2844/2016, and on 27 March 2023 published 

of the costs of purchasing electricity for own 

the consolidated annual financial statements 

technological consumption compared to the 

for the year 2022, drawn up in accordance with 

costs included in the regulated tariffs. 

the International Financial Reporting Standards 

adopted by the European Union (IFRS-EU), as well 

•  On 6 February 2023, Electrica has completed 

as an announcement explaining the differences 

the acquisition of the project company Green 

between the two sets of consolidated financial 

Energy Consultancy & Investments S.R.L., which 

statements. 

develops the photovoltaic project “Vulturu”, with 

a designed installed capacity of 12 MWp DC 

•  On 13 March 2023, Electrica organized a web 

(peak power at the panels level) and 9.75 MW 

conference – Presentation of the Financial 

AC (authorised power for delivery into the grid), 

Results for FY 2022

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•  On 24 March 2023, Electrica completed the 

•  On 23 June 2023, Electrica informed its 

is a request submitted by SPEEH Hidroelectrica 

Results for Q3 2023. 

acquisition of the project company Sunwind 

shareholders and investors that the 2022 

S.A. against ANRE. 

Energy SRL, which develops the photovoltaic 

Sustainability Report is available on Electrica’s 

•  On 23 November 2023, Electrica announced 

project “Satu Mare 2”, with a designed installed 

website.  

capacity of 27.055 MW, located near Botiz 

•  On 25 August 2023, Electrica published the H1 

that the annulment appeal against the decision 

2023 Simplified Consolidated Interim Financial 

issued by the ICCJ on 25 February 2022 in file 

locality, Satu Mare county. The project is in the 

•  On 30 June 2023, Electrica informed its 

Statements and the Board of Directors’ 

3889/2/2018 was settled. 

“ready-to-build” phase.  

shareholders that its subsidiary Distributie 

Consolidated report for H1 2023 prepared in 

•  On 31 March 2023, Electrica announced the 

EUR 6.25 mn. non-reimbursable financing 

Finance 2844/2016. 

publication in the Official Gazette no. 266 from 

through the Modernisation Fund, the total 

attraction of a new non-reimbursable financing 

of RON 17.4 mn. through the Modernization Fund. 

Energie Electrica Romania (DEER) has attracted 

accordance with the Order of Ministry of Public 

•  On 29 November 2023, Electrica announced the 

30 March 2023 of the ANRE Order no. 27 from  

amounts drawn, up to 30.06.2023, being  

•  On 30 August 2023, Electrica organized a web 

29 March 2023, through which the specific tariffs 

EUR 64 mn.  

for the electricity distribution service, applicable 

conference – Presentation of the Financial 

•  On 15 December 2023, Electrica announced that 

Results for H1 2023. 

the BoD approved the Corporate Strategy of 

from 1 April 2023 for Distributie Energie Electrica 

•  On 7 July 2023, Electrica announced its 

Electrica Group for 2024-2030. 

Romania S.A. (DEER) were modified.  

shareholders and investors of the fact that, 

•  On 20 September 2023, Electrica published 

•  On 28 April 2023, the company published the 

of Appeal partially admitted the claim 

Financial Statements and the Board of Directors’ 

that it met all the criteria for entering the 

2022 Annual Report. 

made by Electrica and partially annulled the 

Resolution no. 12/27.02.2017 and the Decision 

Standalone Report for H1 2023 prepared in 

international FTSE Russell indices in 2024. 

accordance with the Order of Ministry of Public 

•  On 15 May 2023 was published the Q1 2023 

no. 12/27.12.2016, issued by the Romanian Court 

Finance 2844/2016. 

condensed consolidated interim financial 

of Accounts, regarding the following deviations 

•  On 22 December 2023, Electrica informed about 

the specific tariffs applicable to DEER from 1 

in file no. 2229/2/2017*, the Bucharest Court 

the H1 2023 Condensed Separate Interim 

•  On 20 December 2023, Electrica announced 

statements and the Board of Directors’ 

from the Decision (respectively to the correlative 

•  On 28 September 2023, Electrica published 

January 2024.

consolidated report for Q1 2023. 

measures). The decision is subject to appeal, 

the H1 2023 Simplified Consolidated Interim 

•  On 15 May 2023, the Company informs its 

shareholders that, following the resolution of the 

•  On 18 July 2023, Electrica informed its 

Consolidated Report for H1 2023 prepared 

in accordance with IFRS-EU. Previously, on 

ordinary general meeting of the shareholders 

shareholders and investors about the regulatory 

20 September 2023, Electrica published an 

dated 27 April 2023, will pay the dividends for the 

news on electricity distribution - 2024 will 

financial year 2022, starting with 23 June 2023.  

represent a transition period from the fourth 

announcement release in which it reiterated the 

differences between the consolidated financial 

within 15 days from its communication. 

Financial Statements and the Board of Directors’ 

regulatory period (RP4) to the fifth regulatory 

statements prepared according to OMFP 

•  On 17 May 2023, Electrica announced the final 

period (RP5). 

settlement by the High Court of Cassation and 

Justice (ICCJ) of the litigation against ANRE in 

•  On 2 August 2023, Electrica published the Interim 

file 7614/2/2018. 

Key Operational Indicators for Q2 2023.  

2844/2016 and those prepared according to 

IFRS-EU. 

•  On 25 October 2023, Electrica published the 

Interim Key Operational Indicators for Q3 2023.

•  On 22 May 2023, Electrica organized a web 

•  On 16 August 2023, Electrica’s Management 

conference – Presentation of the Financial 

organized a Workshop for the presentation of the 

•  On 27 October 2023, Electrica announced to the 

Results for Q1 2023. 

merger proposed for the in-principle approval 

market the information published on the jut.

•  On 25 May 2023, Electrica announced the 

definitive resolution by the High Court of 

•  On 18 August 2023, Electrica informed its 

on the EGMS on 23 August 2023. 

ro portal in connection with file 724/1285/2023 

opened at the Cluj Specialized Court. 

Cassation and Justice (ICCJ) of the appeal filed 

shareholders and investors that Electrica’s 

•  On 30 October 2023, Electrica published the 

by Electrica Furnizare (EFSA) in file 6665/3/2019. 

subsidiary, Electrica Furnizare S.A. (EFSA), was 

simplified standalone financial statements for 

•  On 19 June 2023, Electrica announced its 

file no. 1927/2/2019 (Bucharest Court of Appeal) 

Merger by absorption subject for EGMS approval 

shareholders and investors that its subsidiary 

as a forced intervener (defendant), together 

on 20 December 2023. 

introduced in the case which is the object of the 

the first 9 months of 2023, on the occasion of the 

Distributie Energie Electrica Romania (DEER)  

with all the other last resort suppliers in 2019. 

has attracted EUR 57 mn. non-reimbursable 

EFSA was summoned for the term of 23 October 

•  On 20 November 2023, Electrica organized a 

financing through the Modernisation Fund. 

2023. The object of the court file no. 1927/2/2019 

web conference – Presentation of the Financial 

Transactions with related parties

During 2023, until 31 December 2023, ELSA published 

25 announcements, according to art. 108 of Law 

no. 24/2017, reporting transactions concluded 

in this period between EFSA – OPCOM, DEER – 

OPCOM, DEER – EFSA, EFSA - Transelectrica, DEER - 

Hidroelectrica, whose cumulated value in the case 

of each announcement case exceeds the threshold 

of 5% of ELSA’s net assets, calculated on the basis 

of Electrica’s latest available individual financial 

statements.

Also, on 31 January 2023, Electrica published the 

Auditor’s report regarding the transactions reported 

in H2 2022 according to Art. 108 Law 24/2017 (R).

On 31 July 2023, Electrica informed the shareholders 

of the date of publication of the independent limited 

assurance report of the financial auditor on the 

transactions reported by Electrica in the period from 

1 January to 30 June 2023, in accordance with the 

provisions of Article 108 of Law 24/2017.

Also, on 11 August 2023, Electrica published the 

Auditor’s report regarding the transactions reported 

in H1 2023 according to Art. 108 Law 24/2017 (R).

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All these announcements and auditor’s reports can 

guarantees until 31 December 2024. 

ING Bank, withing the cash pooling structure, 

mn. which extends the validity of Overdraft limit 

be found on ELSA’s website, at this address: https://

which modifies the commercial conditions and 

until 14 April 2024, and the validity of the Facility 

www.electrica.ro/en/investors/results-and-reports/

•  On 30 January 2023, EFSA concluded with Banca 

establishes the automatic renewal of the facility. 

for issuing letters of guarantee until 14 April 2025. 

current-reports-art-108/.

Transilvania, SE Electrica SA as co-debtor, the 

At the same time, additional acts for the intraday 

For more details, please see chapter 3.4 in the 

Additional Act no.3 to the Loan Agreement 

credit limit, within the cash-pooling structure, 

•  On 18 May 2023 was signed the Additional Act no. 

current report. 

no.11673879/02.02.2022, in amount of RON 190 

were concluded between DERR, EFSA, SERV, EEV1, 

2 to the Loan Agreement no. GRIM/43778 dated 

 Treasury matters
Loans related to third-parties

•  On 9 January 2023, was signed the Additional 

mn., which extends the validity of the facility until 

SE Electrica SA and ING Bank, regarding the 

19 May 2022, concluded by EFSA and Unicredit 

30 January 2024 and changes the commercial 

automatic renewal. 

conditions. 

Bank SA, SE Electrica SA as guarantor, through 

which the value of the loan is converted from 

•  On 3 March 2023, EFSA concluded with BRD the 

RON to EUR 60.8 mn., extends the validity of 

Act no.2 to the Loan Agreement no. 2022012502 

•  On 3 February 2023, EFSA concluded with BRD the 

Additional Act no.3 to the Loan Agreement no. 

Overdraft limit until 18 May 2024, and the validity 

concluded by DEER and BCR which extends the 

Additional Act no.2 to the Loan Agreement no. 

17/8130/2022 dated 4 February 2022, SE Electrica 

of the Facility for issuing letters of guarantee 

validity of overdraft limit of RON 220 mn. and the 

17/8130/2022 dated 4 February 2022, SE Electrica 

SA as co-debtor, in amount of RON 220 mn., 

until 17 May 2025. 

validity for issuing bank guarantees until  

SA as co-debtor, in amount of RON 220 mn., 

which extends the validity until 2 February 2024.  

25 January 2024. 

which extends the validity until 5 March 2023.  

•  On 25 May 2023 was signed the Additional Act 

•  On 18 January 2023, was signed the Additional 

•  On 7 February 7, 2023 was signed the Additional 

Act no.5 to the multi-product Credit Facility 

2022, concluded by DEER and Raiffeisen Bank SA, 

Act no.4 to the Loan Agreement no. 10091385 

Act no. 4 to the Loan Agreement no. 111 dated 

Agreement no. 201910080129, for overdraft and 

in amount of RON 220 mn., which extends the 

dated 16 December 2020 concluded by DEER and 

April 16, 2019, for credit line and issuance of bank 

issuance of bank guarantee letters, concluded 

validity of Overdraft limit until 26 July 2023. 

Banca Transilvania, which extends the validity 

guarantees, in amount of RON 160 mn. between 

by EFSA and BCR, which increases the value of 

of Overdraft limit until 01 February 2024, and 

SE Electrica SA, EFSA, SERV and BNP PARIBAS, 

the overdraft limit up to RON 165 mn. 

•  On 31 May 2023 was signed the Additional Act no. 

the validity of the Facility for issuing letters of 

which modifies the commercial conditions.  

6 to the Loan Agreement no. 201910080129 dated 

guarantee until 01 February 2025. 

•  On 17 March 2023, was signed the Loan 

08 October 2019, concluded by EFSA and BCR, in 

•  On 23 January 2023, was signed the Additional 

Paribas, SE Electrica SA acting as guarantor, the 

EBRD, SE Electrica SA as guarantor (corporate 

the commercial conditions, extends the validity 

Act no.1 to the Loan Agreement no. 350 dated 06 

Additional Act no. 1 to the Loan Agreement no. 

guarantee), in amount of RON 180 mn., for 

of the loan until 31 May 2024 and the validity of 

September 2022 concluded by EFSA and Alpha 

148 dated December 24, 2021, for issuing bank 

working capital and validity until 31 January 

the Facility for issuing letters of guarantee until 

Bank Romania, SE Electrica SA as guarantor, in 

guarantees, in amount of RON 220 mn., which 

2028. 

07 October 2025. 

•  On 17 February 2023, EFSA concluded with BNP 

Agreement no. 53747, concluded by DEER and 

amount of RON 165 mn. through which modifies 

•  On 13 March 2023, was signed the Additional 

no. 1 to the Loan Agreement no. 20 dated 26 May 

amount of EUR 60 mn., through which is added 

modifies the commercial conditions and validity 

the movable mortgage over receivables. 

of the bank guarantees. 

•  On 28 March 2023, ELSA concluded with 

•  On 06 June 2023 was signed the Additional Act 

Vista Bank the Additional Act no.1 to the Loan 

no. 3 to the Loan Agreement no. WB/C/379 dated 

•  On 27 January 2023, was signed the Additional 

•  On 17 February 2023, EFSA signed with ING 

Agreement no. FA 8376 dated 30 December 2022, 

25 March 2022, concluded by DEER and ING Bank 

Act no.5 to the Credit facility agreement no. 3189 

Bank, SE Electrica SA acting as guarantor, the 

which increases the value limit of the facility 

NV, SE Electrica SA as guarantor, which converts 

dated 28 January 2020, in amount of RON 210 

Additional Act no. 4 to the Loan Agreement no. 

(overdraft and issuance of bank guarantee 

the value of the Overdraft credit facility from RON 

mn., concluded by SE Electrica SA and ING Bank, 

WB/C/14 dated 18 February 2022, in amount of 

letters) up to RON 125 mn. 

withing the cash pooling structure, extending 

EUR 34.3 mn. which extends the validity until 16 

to EUR, up to the value of EUR 10 mn., modifies 

the commercial conditions and the validity of 

the validity until 27 February 2023. At the same 

February 2024. 

•  On 11 April 2023 was signed the Additional Act 

the loan until 22 March 2024 with automatic 

time, additional acts for the intraday credit 

no. 3 to the Loan Agreement no. 56 dated 26 

extension for 12 months. 

limit, within the cash-pooling structure, were 

•  On 20 February 2023, was signed the Credit 

October 2021, concluded by EFSA and Raiffeisen 

concluded between DERR, EFSA, SERV, EEV1, SE 

Facility Agreement no. 49183, concluded by DEER 

Bank SA, SE Electrica SA as guarantor, in amount 

•  On 07 June 2023 was signed the Additional Act 

Electrica SA and ING Bank, with validity until 27 

and Garanti BBVA, SE Electrica SA as guarantor, 

of RON 150 mn., which extends the validity of 

no. 5 to the Loan Agreement no. 240PJ dated 

February 2023.  

a non-cash facility for the issuance of bank 

Overdraft limit until 28 July 2023, and the validity 

30 June 2020, concluded by DEER and INTESA 

•  On 27 January 2023, EFSA concluded with 

until 20 April 2025.  

until 31 December 2024. 

extends the validity of Overdraft limit until 03 July 

guarantee in amount of RON 103 mn. and validity 

of the Facility for issuing letters of guarantee 

SANPAOLO, in amount of EUR 27.3 mn., which 

Raiffeisen Bank, SE Electrica SA as guarantor, 

2024. 

the Additional act no. 2 to the Loan Agreement 

•  On 27 February 2023, was signed the Additional 

•  On 13 April 2023 was signed the Additional Act no. 

no. 56, dated 26 October 2021, which extends 

Act no. 6 to the Credit facility agreement no. 

1 to the Loan Agreement no. 20220406018 dated 

•  On 26 July 2023 was signed the Additional Act 

the validity of the overdraft until 28 April 2023 

3189 dated 18 January 2020, in amount of RON 

15 April 2022, concluded by EFSA and BCR, SE 

no. 2 to the Loan Agreement no. 20 dated 26 May 

and the validity of the facility for issuing bank 

210 mn., concluded by SE Electrica SA and 

Electrica SA as guarantor, in amount of RON 220 

2022, concluded by DEER and Raiffeisen Bank SA, 

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in amount of RON 220 mn., which modifies the 

•  On 05 September 2023 was signed the 

03 March 2026 in the form of a revolving loan 

•  On 28 December 2023, the Additional Act no.6 to 

commercial conditions and extends the validity 

Additional Act no. 2 to the Loan Agreement 

ceiling.  

of Overdraft limit until 25 August 2023. 

no. 350 dated 06 September 2022, concluded 

the Credit Agreement GRIM/75912/2017 dated 19 

July 2017, was signed by SE Electrica SA, SERV and 

•  On 27 July 2023 was signed the Additional Act 

as guarantor, in amount of EUR 60 mn., which 

3/2023 to the Overdraft Credit Facility Agreement 

loan was extended until 31 December 2031 and 

no. 4 to the Loan Agreement no. 56 dated 26 

extends the validity of Credit Line until 06 

with the possibility of issuing letters of guarantee 

the drawing period until 31 December 2024. 

by EFSA and Alpha Bank SA, SE Electrica SA 

•  On 21 December 2023, the Additional Act no. 

UniCredit Bank SA, whereby the maturity of the 

October 2021, concluded by EFSA and Raiffeisen 

September 2024. 

Bank SA, SE Electrica SA as guarantor, in amount 

and opening letters of credit No. 61/2021, was 

signed by EFSA and Raiffeisen Bank SA, SE 

of RON 150 mn., which extends the validity of 

•  On 11 September 2023 was signed the Additional 

Electrica SA as guarantor, extending the validity 

Overdraft limit until 28 August 2023, and the 

Act no. 3 to the Loan Agreement no. 350 dated 

of the overdraft limit and the facility for issuing 

validity of the Facility for issuing letters of 

06 September 2022, concluded by EFSA and 

letters of guarantee until 24 March 2024. 

guarantee until 31 December 2024. 

Alpha Bank SA, SE Electrica SA as guarantor, in 

amount of EUR 60 mn., through which the value 

•  On 21 December 2023, the Additional Act 

•  On 04 August 2023 it was signed the Multicredit 

of the facility is converted from EUR to RON, up to 

no.6/2023 to the Credit Facility Agreement 

Facility Agreement no. RQ23079467247483 

the maximum value of RON 300 mn.; the facility 

no.56 dated 26.10.2021, was signed by EFSA and 

concluded by EFSA and CEC Bank, SE Electrica 

can be used in EUR and RON. 

SA as guarantor, by which the Lender provides 

Raiffeisen Bank SA, SE Electrica SA as guarantor, 

whereby the movable mortgage on all the 

the Borrower with a multi-credit facility up to 

•  On 02 November 2023 was signed the Additional 

collections related to any commercial contracts 

the value of RON 150 mn., as follows: a credit 

Act no. 1 to the Loan Agreement dated 03 

line valid until 03 August 2025 and a facility for 

November 2021, concluded by SE Electrica SA 

entered into with eligible clients approved by 

the Bank, established by the Movable mortgage 

issuing bank guarantees valid until 03 August 

with Erste Group Bank AG and Raiffeisen Bank SA 

contract no.56/IC/2023, ancillary contract to 

2026.  

as Borrower, by which the amount of facility is 

Contract 56/2021, is extinguished. 

reduced from 750 mn. RON to 450 mn. RON and 

•  On 09 August 2023 was signed the Additional Act 

the validity of the credit line is extended until 03 

•  On 22 December 2023, the Loan Agreement 

no. 3 to the Loan Agreement no. 20 dated 26 May 

November 2024. 

2022, concluded by DEER and Raiffeisen Bank SA, 

No.1430 was signed, concluded by DEER and 

EXIM BANCA ROMANEASCA SA, SE Electrica SA 

in amount of RON 220 mn., which modifies the 

•  On 15 December 2023 was signed the Additional 

as guarantor, whereby a non-revolving loan in 

commercial conditions and extends the validity 

Act no. 2 to the Loan Agreement no. 165 dated 

of Overdraft limit until 26 May 2024. 

27 December 2022, concluded by EFSA and BNP 

the amount of RON 250 mn. was granted, for 

the financing of current activity, valid until 21 

•  On 22 August 2023 was signed the Additional 

of RON 240 mn., by which the limits of the facility 

Paribas, SE Electrica SA as guarantor, in amount 

December 2027.  

Act no. 5 to the Loan Agreement no. 56 dated 26 

are modified as follows: the value of the facility 

•  On 22 December 2023, the Amendment Letter 

October 2021, concluded by EFSA and Raiffeisen 

is extended to RON 440 mn. until the date of 30 

No.1 was signed, with reference to the financing 

Bank SA, SE Electrica SA as guarantor, in amount 

January 2024; on 31 January 2024, the amount 

of RON 150 mn, which extends the validity of 

of the facility is reduced by RON 90 mn. and 

contracts no. 92.394/2020-0391, 93.414/2020-

0391 and the related guarantee agreements, 

Overdraft limit until 28 July 2024, and the validity 

becomes RON 350 mn.; on 31 March 2024, the 

concluded by DEER and the European Investment 

of the Facility for issuing letters of guarantee 

amount of the facility is reduced by RON 100 mn. 

Bank (EIB), SE Electrica SA as guarantor, whereby 

until 31 December 2024. 

and becomes RON 250 mn., and starting with 01 

amendments to certain clauses and definitions 

April 2024, the value of the facility will be RON 

have been agreed to allow disbursements under 

•  On 22 August 2023 was signed the Additional 

250 mn. 

Act no. 2 to the Loan Agreement no. 61 dated 

the two Financing Agreements. 

24 December 2021, concluded by EFSA and 

•  On 18 December 2023, the Additional Act 

•  On 22 December 2023, was signed the 

Raiffeisen Bank SA, SE Electrica SA as guarantor, 

no.1 to the Multicredit Facility Agreement no. 

in amount of RON 220 mn., which modifies 

RQ23079467247483/04.08.2023 was signed 

Amendment no.1 to the Financing contract 

dated 17 March 2023, concluded between DEER 

IBAN account and the validity of Overdraft limit 

between EFSA and CEC Bank, SE Electrica SA as 

and the European Bank for Reconstruction 

until 24 December 2023, and the validity of the 

guarantor, whereby it was agreed to supplement 

and Development (EBRD), SE Electrica SA as 

Facility for issuing letters of guarantee until 24 

the credit facility by the amount of RON 50 

guarantor, whereby the credit facility was 

December 2024. 

mn. up to the maximum ceiling of RON 200 

increased by RON 60 mn., up to the maximum 

mn., starting from 18 December 2023 and until 

ceiling of RON 240 mn.

Intragroup Loans

•  On 04 April 2023, was signed the Additional Act 

no. 1 to the Internal Treasury Convention dated 

16 December 2020, concluded by SE Electrica SA 

and Electrica Energie Verde 1 SRL (EEV1), which 

modifies the commercial conditions. 

•  On 04 April 2023, was signed the Additional 

Act no. 3 to the Internal Treasury Convention 

no. 25 dated 05 February 2020, concluded by 

SE Electrica SA and EFSA, which modifies the 

commercial conditions. 

•  On 07 April 2023, SE Electrica SA concluded with 

Sunwind Energy SRL the Loan Agreement no. 36, 

in amount of RON 1.8 mn. and validity until 06 

April 2024, for the repayment of the shareholder’ 

s loan granted to Sunwind Energy by Mr. Emanuel 

Muntmark and payment of the invoice related to 

the development services provided by Monsson 

Alma SRL to Sunwind Energy SRL. 

•  On 13 June 2023, was signed the Additional 

Act no. 2 to Loan Agreement no. 40 dated 14 

June 2022, concluded by SE Electrica SA and 

Societatea New Trend Energy SRL, which extends 

the validity until 13 June 2024. 

•  On 15 June 2023, was signed the Additional 

Act no. 1 to the Internal Treasury Convention 

no. 26 dated 05 February 2020, concluded by 

SE Electrica SA and SERV, which modifies the 

commercial conditions. 

•  On 19 June 2023, was signed the Additional 

Act no. 4 to the Loan Agreement no. 68 dated 

27 October 2022, concluded by SE Electrica SA 

and Societatea GREEN Energy Consultancy& 

Investments SRL, which modifies the object of the 

contract. 

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•  On 24 October 2023, was signed the Additional 

RON 8.5 mn... 

•  On 30 June 2023, SE Electrica SA concluded with 

•  On 14 July 2023, was signed the Additional 

Act no. 5 to Loan Agreement no. 40 dated 14 

DEER the Contract no. 54, valid until 31 December 

Act no. 1 to Loan Agreement no 46 dated 15 

June 2022, concluded by SE Electrica SA and 

•  On 29 December 2023, was signed the Additional 

2024, in order for ELSA to carry out, at DEER’s 

July 2022, concluded by SE Electrica SA and 

Societatea New Trend Energy SRL, which extends 

Act no. 3 to Loan Agreement no. 61 dated 22 

request, the necessary steps with UniCredit Bank, 

Societatea Electrica Productie Energie SA, which 

the amount of the facility up to RON 7.6 mn. and 

September 2022, concluded by SE Electrica SA 

in order for the bank to issue bank guarantees in 

extends the validity until 14 July 2024. 

modifies the clause regarding the purpose of 

and EFSA, by which the maximum amount for 

amount of RON 187 mn.. 

granting the facility. 

•  On 11 August 2023 SE Electrica SA concluded with 

which ELSA will facilitate the obtaining of bank 

guarantees by EFSA is increased up to RON 150 

•  On 30 June 2023, was signed the Additional Act 

EFSA the Transaction Agreement no.62, which 

•  On 14 October 2023, was signed the Additional 

mn., and extends the utilization period until 12 

no. 1 to the Internal Treasury Convention no. 

regulates contractual aspects in connection 

Act no. 1 to Loan Agreement no. 73 dated 10 

December 2024 and validity until 31 December 

22 dated 05 February 2020, concluded by SE 

with the amount used by EFSA based on the 

November 2022, concluded by SE Electrica SA 

2025. 

Electrica SA and DEER (formerly SDMN), which 

Internal Treasury Convention. 

and Societatea Sunwind Energy SRL, which 

modifies the commercial conditions. 

modifies the commercial conditions and extends 

•  On 29 December 2023, was signed the Additional 

•  On 30 June 2023, was signed the Additional Act 

Additional Act no. 3 to Loan Agreement no. 40 

July 2023, concluded by SE Electrica SA and 

no. 1 to the Internal Treasury Convention no. 

dated 14 June 2022, concluded by SE Electrica 

•  On 16 November 2023, was signed the Additional 

DEER, which extends the utilization period until 12 

23 dated 05 February 2020, concluded by SE 

SA and Societatea New Trend Energy SRL, which 

Act no. 2 to Loan Agreement no. 61 dated 22 

December 2024 and validity until 31 December 

Electrica SA and DEER (formerly SDTS), which 

extends the amount of the facility up to RON 2.5 

September 2022, concluded by SE Electrica SA 

2025.

•  On 08 September 2023, was signed the 

the validity until 25 October 2024. 

Act no. 1 to Loan Agreement no. 54 dated 07 

modifies the commercial conditions. 

mn.. 

•  On 30 June 2023, was signed the Additional Act 

•  On 25 September 2023, was signed the 

no. 1 to the Internal Treasury Convention no. 

Additional Act no. 1 to Loan Agreement no. 63 

24 dated 05 February 2020, concluded by SE 

dated 27 September 2022, concluded by SE 

and EFSA, by which the maximum amount for 

which ELSA will facilitate the obtaining of bank 

guarantees by EFSA is increased up to RON 115 

mn., and establish the utilization period until 12 

December 2023 and validity until 31 December 

 Guarantees offered by ELSA, for its subsidiaries
and other third parties
Corporate guarantees within the credit facilities force

Electrica SA and DEER (formerly SDTN), which 

Electrica SA and Societatea Sunwind Energy 

2024. 

modifies the commercial conditions. 

SRL, which modifies the purpose of granting 

•  On 30 June 2023, was signed the Additional Act 

September 2024. 

no. 2 to the Internal Treasury Convention no. 

with FOTON POWER ENERGY S.R.L. the Additional 

Act 1 to the Loan Agreement no. 73/11.10.2023, 

23 dated 05 February 2020, concluded by SE 

•  On 09 October 2023, was signed the Additional 

which increased the amount of the loan by up to 

Electrica SA and DEER (formerly SDTS), which 

Act no. 4 to Loan Agreement no. 40 dated 14 

RON 1.0 mn. RON, so that the total amount of the 

modifies the commercial conditions. 

June 2022, concluded by SE Electrica SA and 

loan is RON 3.6 mn... 

the facility and extends the validity until 25 

•  On 29 November 2023, SE Electrica SA signed 

Societatea New Trend Energy SRL, which modifies 

•  On 13 July 2023, SE Electrica SA concluded with 

the clause regarding the purpose of granting the 

•  On 18 December 2023, SE Electrica SA signed with 

EFSA the Transaction Agreement no. 57, which 

facility. 

regulates contractual aspects in connection 

EFSA the Loan Agreement No.90/18.12.2023 in the 

amount of RON 100 mn. for financing the working 

with four bank guarantees for which ELSA carried 

•  On 11 October 2023 SE Electrica SA concluded 

capital, with maturity date 02 November 2024. 

out, at EFSA’s request, the necessary steps with 

with Foton Power Energy SRL the Loan Agreement 

the UniCredit Bank, in order for the bank to issue 

no. 73, in amount of RON 2.6 mn. and validity 

•  On 21 December 2023, SE Electrica SA signed with 

the bank guarantees. 

until 10 October 2024, in order to finance the 

working capital.  

•  On 13 July 2023, was signed the Additional Act 

no. 1 to the Contract no. 61 dated 22 September 

•  On 17 October 2023, was signed the Additional 

SUNWIND ENERGY S.R.L. the Additional Act No. 2 

to the loan contract no. 63/27.09.2022, which 

increased the amount of the loan by up to RON 

0.5 mn., so that the total amount of the loan is 

2022, concluded by SE Electrica SA and EFSA, 

Act no. 5 to Loan Agreement no. 68 dated 27 

RON 1.7 mn... 

by which the maximum amount for which ELSA 

October 2022, concluded by SE Electrica SA and 

will facilitate the obtaining of bank guarantees 

GREEN ENERGY CONSULTANCY & INVESTMENTS 

•  On 21 December 2023, SE Electrica SA signed with 

by EFSA, is increased for a limited period (until 

SRL, which modifies the clause regarding the 

New Trend Energy SRL the Additional Act no.6 

September 20, 2023) from RON 90 mn to RON 

purpose of granting the facility and extends the 

to the Loan Agreement no.40/14.06.2022, which 

101 mn., and the commercial conditions are 

validity until 26 October 2024. 

modified. 

increased the amount of the loan by up to RON 

0.9 mn. so that the total amount of the loan is 

•  On 16 April 2019, was signed the Credit Facility 

Agreement no. 111, concluded by SE Electrica 

SA, EFSA, SERV and BNP PARIBAS, in amount of 

RON 160 mn., amended by Additional Act no. 

1, 2, 3 and 4, with SE Electrica SA as guarantor 

(corporate guarantee). The value of the 

guarantee, which is not a real guarantee, is a 

maximum of RON 160 mn.  

•  On 25 June 2020, was signed Loan Agreement 

no. 76/8130/2020, concluded by DEER (SDTN) 

and BRD, in amount of RON 100 mn., amended 

by Additional Act no. 1, with SE Electrica SA as 

guarantor (corporate guarantee). The value of 

the guarantee, which is not a real guarantee, is a 

maximum of RON 110 mn..  

•  On 25 June 2020, was signed the Loan 

Agreement no. 74/8130/2020, concluded by 

DEER (SDTS) and BRD, in amount of RON 80 

mn., amended by Additional Act no. 1, with SE 

Electrica SA as guarantor (corporate guarantee). 

The value of the guarantee, which is not a real 

guarantee, is a maximum of RON 88 mn.  

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•  On 14 September 2020, was signed the Loan 

EFSA and BNP PARIBAS, in amount of RON 220 

no. GRIM/43778/CSC, concluded by EFSA and 

concluded by EFSA and CEC Bank, in amount 

Agreement no. 20200911050, concluded by 

mn., amended by Additional Act no. 1, with SE 

Unicredit Bank SA, in amount of EUR 60.8 mn., 

of RON 150 mn., increased by Additional Act to 

DEER (SDMN) and BCR, in amount of RON 155 

Electrica SA as guarantor (corporate guarantee). 

amended by Additional Act no. 1 with SE Electrica 

RON 200 mil, with SE Electrica SA as guarantor 

mn., amended by Additional Act no. 1, with SE 

The value of the guarantee, which is not a real 

SA as guarantor (corporate guarantee). The 

(corporate guarantee). The value of the 

Electrica SA as guarantor (corporate guarantee). 

guarantee, is a maximum of RON 242 mn.. 

value of the guarantee, which is not a real 

guarantee, which is not a real guarantee, is a 

The value of the guarantee, which is not a real 

guarantee, is a maximum of EUR 66.9 mn.  

maximum of RON 200 mn..  

guarantee, is a maximum of RON 170.5 mn.  

•  On 02 February 2022, was signed the Loan 

Agreement no. 11673879, concluded by EFSA 

•  On 06 September 2022, was signed the Loan 

•  On 22 December 2023, was signed the Loan 

•  On 02 July 2021, was signed the Loan Agreement 

and Banca Transilvania, in amount of RON 190 

Agreement no. 350, concluded by EFSA Alpha 

Agreement No.1430, concluded by DEER and EXIM 

no. 52212, concluded by DEER and EBRD, in 

mn., amended by Additional Act no. 1, 2, 3 and 

Bank, in amount of RON 300 mn., amended by 

BANCA ROMANEASCA SA, in amount of RON 250 

amount of RON 195.1 mn., with SE Electrica SA as 

4 with SE Electrica SA as guarantor (corporate 

Additional Act no. 1, 2 and 3 with SE Electrica SA 

mn., SE Electrica SA as guarantor (corporate 

guarantor (corporate guarantee). The value of 

guarantee). The value of the guarantee, which is 

as guarantor (corporate guarantee). The value 

guarantee). The value of the guarantee, which is 

the guarantee, which is not a real guarantee, is a 

not a real guarantee, is a maximum of RON 209 

of the guarantee, which is not a real guarantee, 

not a real guarantee, is a maximum of RON 325 

maximum of RON 246.3 mn..  

mn..  

is a maximum of RON 300 mn..  

mn.. 

•  On 14 July 2021, was signed the Loan Agreement 

•  On 04 February 2022, was signed the Loan 

•  On 22 December 2022, was signed the Loan 

• On 31 December 2023, the value of the corporate 

no. FI N° 92.394, concluded by DEER and BEI, in 

Agreement no. 17/8130/2022, concluded by EFSA 

Agreement no. 1218, concluded by DEER and 

guarantees (which are not real guarantees), 

amount of EUR 120 mn., with SE Electrica SA as 

and BRD, in amount of RON 220 mn., amended by 

EXIM BANK, in amount of RON 250 mn., with SE 

established by ELSA within the credit facilities, is 

guarantor (corporate guarantee). The value of 

Additional Act no. 1, 2, 3 and 4 with SE Electrica SA 

Electrica SA as guarantor (corporate guarantee). 

RON 6,119 mn..

the guarantee, which is not a real guarantee, is a 

as guarantor (corporate guarantee). The value 

The value of the guarantee, which is not a real 

maximum of EUR 144 mn..  

of the guarantee, which is not a real guarantee, 

guarantee, is maximum of RON 325 mn..  

•  On 26 October 2021, was signed the Credit 

Facility Agreement no. 56, concluded by EFSA 

•  On 18 February 2022, was signed the Credit 

and Raiffeisen Bank SA, in amount of RON 150 

Facility Agreement no WB/C/14, concluded by 

mn., amended by Additional Act no. 1, 2, 3, 

EFSA and ING Bank, in amount of EUR 34.3 mn., 

4, 5 and 6, with SE Electrica SA as guarantor 

amended by Additional Act no. 1, 2, 3, 4 and 5 

is a maximum of RON 242 mn..  

•  On 27 December 2022, was signed the Credit 

Facility Agreement no. 165, concluded by EFSA 

and BNP Paribas, in amount of RON 240 mn., 

increased by Additional Act to RON 440mn., 

with SE Electrica SA as guarantor (corporate 

(corporate guarantee). The value of the 

with SE Electrica SA as guarantor (corporate 

guarantee). The value of the guarantee, which is 

guarantee, which is not a real guarantee, is a 

guarantee). The value of the guarantee, which is 

not a real guarantee, is a maximum of RON 484 

maximum of RON 150 mn.. 

not a real guarantee, is a maximum of EUR 37.7 

mn..  

•  On 07 December 2021, was signed Loan 

mn..  

Agreement no. FI N° 93.414, concluded by 

•  On 25 March 2022, was signed the Credit 

•  On 20 February 2023, was signed the Loan 

Agreement no. 49183 concluded by DEER 

DEER and BEI, in amount of EUR 90 mn., with SE 

Facility Agreement no. WB/C/379, concluded by 

and GarantiBBVA, in amount of RON 103 mn., 

Electrica SA as guarantor (corporate guarantee). 

DEER and ING Bank, in amount of RON 205 mn., 

amended by Additional Act no. 1 with SE Electrica 

The value of the guarantee, which is not a real 

amended by Additional Act no. 1, 2 and 3 with SE 

SA as guarantor (corporate guarantee). The 

guarantee, is a maximum of EUR 108 mn.. 

Electrica SA as guarantor (corporate guarantee). 

•  On 24 December 2021, was signed the Credit 

guarantee, is a maximum of RON 225.5 mn..  

Facility Agreement no. 61, concluded by EFSA 

and Raiffeisen Bank SA, in amount of RON 220 

•  On 15 April 2022, was signed the Credit Facility 

mn., amended by Additional Act no. 1, 2 and 3 

Agreement no. 20220406018, concluded by EFSA 

The value of the guarantee, which is not a real 

value of the guarantee, which is not a real 

guarantee, is a maximum of RON 103 mn..  

•  On 17 March 2023, was signed the Loan 

Agreement no. 53747 concluded by DEER and 

EBRD, in amount of RON 180 mn., increased by 

with SE Electrica SA as guarantor (corporate 

and BCR, in amount of RON 220 mn., amended 

Additional Act to RON 240 mn., with SE Electrica 

guarantee). The value of the guarantee, which is 

by Additional Act no. 1 with SE Electrica SA as 

not a real guarantee, is a maximum of RON 220 

guarantor (corporate guarantee). The value of 

SA as guarantor (corporate guarantee). The 

value of the guarantee, which is not a real 

mn..  

the guarantee, which is not a real guarantee, is a 

guarantee, is a maximum of RON 312 mn..  

•  On 24 December 2021, was signed the Credit 

•  On 04 August 2023 was signed the Multicredit 

Facility Agreement no. 148, concluded by 

•  On 19 May 2022, was signed the Loan Agreement 

Facility Agreement no. RQ23079467247483 

maximum of RON 242 mn.  

 Parent Corporate Guarantees

•  On 01 September 2021, the Parent Corporate 

Guarantee in amount of RON 29 mn., amended 

on 04 November 2021, was established in favor 

of EFSA, having as beneficiary ENGIE ROMANIA SA, 

validity date 31 January 2024.  

•  On 11 November 2021, the Parent Corporate 

Guarantee was established in favor of EFSA, 

having as beneficiary AXPO ENERGY ROMANIA 

SA, in amount of RON 4.9 mn., validity date 31 

January 2024.  

•  On 15 December 2021, the Parent Corporate 

Guarantee in amount of RON 14.5 mn., was 

established in favor of EFSA, having as 

beneficiary MVM PARTNER, validity date 29 

February 2024.  

• 

 On 16 May 2022, the Parent Corporate Guarantee 

in amount of RON 14.3 mn., was established 

in favor of EFSA, having as beneficiary AXPO 

BULGARIA EAD, validity date 31 January 2024. 

• 

 On 14 December 2022, the Parent Corporate 

Guarantee in amount of RON 62.1 mn., was 

established in favor of EFSA, having as 

beneficiary COMPLEXUL ENERGETIC OLTENIA, 

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validity date 15 February 2024.  

•  On 28 December 2022, the Parent Corporate 

Guarantee in amount of RON 118.8 mn., 

was established in favor of EFSA, having as 

beneficiary COMPLEXUL ENERGETIC OLTENIA, 

validity date 15 February 2024.  

•  On 29 December 2022, two Parent Corporate 

Guarantees in amount of RON 1.9 mn. each, 

were established in favor of EFSA, having as 

beneficiary BIOENERGY SUCEAVA, validity date 25 

January 2024. 

As of 31 December 2023, the amount of the 

Parent Corporate Guarantees (which are not real 

guarantees), constituted by ELSA in favor of EFSA, is 

RON 247.5 mn..

1.2.4  Litigations with significant impact on the financial performance

Case no.  1221/1285/2022

Case  no. 1100/1/2023

Following the appearance in the public space 

Societatea Energetica Electrica S.A. (ELSA) filed an 

of some information regarding the submittal by 

annulment appeal against civil decision no. 5599 

Eurototal Comp SRL Bucuresti of an insolvency 

of 22 November 2022, by which the High Court 

petition against Electrica’s subsidiary, Distributie 

of Cassation and Justice rejected the appeal 

Energie Electrica Romania SA (DEER), registered on 

declared by ELSA against Sentence no. 707/2019, 

28 December 2022 under file no. 1221/1285/2022 by 

pronounced by the Bucharest Court of Appeal in file 

the Specialized Courthouse Cluj, Electrica informs its 

no. 3889/2/2018.  

shareholders and investors that DEER was informed 

about this file registration by Eurototal Comp SRL 

The annulment appeal was registered under no. 

on 31 December 2022, the date on which the total 

1100/1/2023 of the High Court of Cassation and 

invoiced balance of RON 1,255 mn. was already fully 

Justice. On 22.11.2023, the Court dismissed the 

paid, the debit being thus extinguished and the 

annulment appeal filed by ELSA as inadmissible.

request of the above-mentioned insolvency claim 

remaining without object.

The file no. 3889/2/2018 has as object the 

On 02 May 2023, Cluj Court of Appeal found 

77/20.12.2017, and in the alternative, the reduction 

Eurototal Comp’s recourse to be null, the decision 

of the fine established for ELSA up to the minimum 

being final.

legal level of 0.5% of ELSA’s turnover, by  

annulment of the Competition Council Decision no. 

re-individualizing the alleged anti-competitive 

the same court for re-examining the main action. 

act, with the retention and full capitalization of all 

The term in this case is 28 March 2024.

mitigating circumstances applicable to ELSA. By the 

Decision of the Competition Council no. 77/20.12.2017 

The file has as object Societatea de Distributie a 

was found the breaching of the provisions of art. 5 

Energiei Electrice Transilvania Sud SA (at present 

par. (1) of the Competition Law no. 21/1996 and art. 

DEER) and Electrica`s request for the cancellation of 

101 par. (1) TFEU by several companies which have 

the Order of ANRE President no. 199/2018 regarding 

sold meters and related measuring equipment 

the approval of specific tariffs for the electricity 

for electricity in Romania, in the procedures for 

distribution service and the price for reactive 

the award of supply contracts in the period from 

electricity, for Societatea de Distributie a Energiei 

27 November 2008 to 30 September 2015 and by 

Electrice Transilvania Sud - S.A. 

Electrica, as a facilitator, in the period from 24 

November 2010 to 30 September 2015. The sanction 

The action was rejected by the trial court, Electrica 

applied to Electrica consists in a fine amounting 

and SDEETS filed an appeal against this decision.

to RON 10,800,984.04 (paid by ELSA), representing 

2.98% of the total turnover achieved in the financial 

Case no. 7614/2/2018

year 2016. In determining the amount of the fine, it 

was taken into account that (i) Electrica cooperated 

On 16 May 2023, the High Court of Cassation and 

fully and effectively with the Public Competition 

Justice definitively resolved case no. 7614/2/2018 

Council during the investigation procedure, outside 

and dismissed the claim. 

the scope of the leniency policy and beyond the 

legal duty to cooperate, and (ii) it is for the very first 

The file had as object the cancellation for partial 

time when the authority retains the role of facilitator 

revocation of the Tariff Pricing Methodology for 

for a company organizing public procurement 

Electricity Distribution Service, approved through the 

procedures. On the merits of the case that was 

ANRE President Order no. 169/2018, as regards Art. 

the subject of file 3889/2/2018, by Sentence no. 

5 RAB definition, art. 18-19, art. 26, art. 33-34, art. 39, 

707/25.02.2019, the Bucharest Court of Appeal 

art. 43-44, art. 47-49, art. 54-57, art. 64, art. 67-68, 

rejected the annulment action as unfounded, and 

art. 93-94, art. 103, art. 107, art. 126 paragraph 1, art. 

the High Court of Cassation and Justice rejected 

129 of the Methodology approved through the Order 

the appeal declared by ELSA against the above 

and issuing a new Order, taking into account the 

sentence. 

observations submitted by the companies.

On November 22, 2023, the High Court of Cassation 

Case  no. 6665/3/2019

and Justice rejected, as inadmissible, the annulment 

appeal filed by ELSA against civil decision no. 5599 

The High Court of Cassation and Justice cancelled 

of November 22, 2022, by which the appeal declared 

as unfounded the appeal declared by EFSA 

by ELSA against Sentence no. 707/2019. This decision, 

against civil decision no. 1492 of 07 October 2022, 

pronounced in file no. 1100/1/2023, is final. At this 

pronounced by the Bucharest Court of Appeal in file 

moment there is no financial impact of this court 

no. 6665/3/2019. The ruling pronounced is final. 

decision, the fine established by the Competition 

Council for ELSA being paid on 11 October 2018.

We mentioned that the claims requested by EFSA 

Case  no. 435/2/2019

amounted RON 6,232,398.04, representing claims 

according to the Decision of the Court of Accounts 

no. 11/2016 and the Inspection Report of the Court 

On 26 April 2023, the High Court of Cassation and 

of Accounts no. 5799/29Nov2016 and also the legal 

Justice settled the appeal filed by Societatea de 

interest namely: the amount of RON 793,234.07 

Distributie a Energiei Electrice Transilvania Sud SA 

representing the legal interest calculated from 

(at present DEER) and Electrica S.A. in the file no. 

the date when Electrica S.A. collected the sums 

435/2/2019, by admitting it and sending the case to 

of money (the total amount of which is RON 

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6,232,398.04) until 31 March 2019, the legal interest 

provision for the exclusive needs of the company 

responsibility in the contested Decision, items 1 to 

Enel Energie Muntenia S.A., E.ON Energie Romania 

calculated from 31 March 2019 until the date of 

was not provided, respectively with the value of 4 

8, with the consequence of removing the measures 

S.A., Electrica Furnizare S.A. (with its branches 

execution of an enforceable court decision and 

technical studies purchased for activities that are 

ordered in items 1, 3 to 9 inclusively; the partial 

Electrica Furnizare Muntenia Nord, Electrica Furnizare 

the legal interest calculated from the date of 

not found in the object of activity of the verified 

cancellation of the Court of Accounts’ Resolution 

Transilvania Sud, Electrica Furnizare Transilvania 

the enforceable court decision up to the date of 

entity, being related to activities belonging to other 

no. 12/27.02.2017 through which Electrica’s appeal 

Nord)., and the court admitted the request to bring 

effective payment by Electrica S.A. of the principals 

legal entities (electricity distribution subsidiaries), 

against the Court of Accounts’ Decision no. 

the suppliers of last resort into the case. As the 

debit in the amount of RON 6,232,398.04. By the 

without being invoiced to the subsidiaries for the 

12/27.12.2016 was rejected, respectively regarding 

time of this announcement, the litigation is in the 

decision no. 2336 of 1 October 2021, the Bucharest 

recovery of the expense. The four studies are related 

the irregularities and the ordered measures, 

evaluation process within the legal department. 

Tribunal rejected as unfounded the request filed 

to the electricity distribution activities carried out by 

and additionally the extension with at least 12 

by EFSA and by the decision no. 1492 of 7 October 

the electricity distribution subsidiaries (Transilvania 

months of the deadlines for the fulfilment of all the 

From a preliminary analysis of the Legal Department: 

2022, the Bucharest Court of Appeal rejected as 

Sud, Muntenia Nord and Transilvania Nord), which 

measures ordered to Electrica through Decision no. 

(i) of Hidroelectrica’s claims, it results that for the 

unfounded the appeal filed by EFSA against the 

are organized as separate legal entities, activating 

12/27.12.2016. 

decision of the Bucharest Tribunal.

in a field in which the entity (Electrica) is not 

contracts concluded with Electrica Furnizare, the 

differences would be to approximately RON 77.85 

Case no. 2229/2/2017*

it own such electricity distribution networks; - 

settled in this case being 27 March 2024.

action, it turns out that for Electrica Furnizare, in 

licensed by ANRE to carry out activities, nor does 

The decision was appealed by both parties, the term 

mn.; (ii) in relation to the claims from the legal 

On 6 July 2023, Bucharest Court of Appeal partially 

exceeding the period 17 July 2013-01 September 

Case  no. 1927/2/2019

admitted the claim made by Electrica and partially 

2013, the measure being maintained for the rent 

partially annulled item 5 (measure II.7), for the rent 

the situation in which the court would order the 

obligation of ANRE to issue a new Decision regarding 

the regulated price for the energy purchased by 

annulled the Resolution no. 12/27.02.2017 and the 

related to the period 17 July 2013- 01 September 2013 

Electrica’s subsidiary, Electrica Furnizare S.A. (EFSA), 

Electrica Furnizare from SPEEH Societatea Energetica 

Decision no. 12/27.12.2016, issued by the Romanian 

- Making payments, during July 2013 - June 2014, in 

was introduced in the case which is the object 

Electrica S.A. 9, Grigore Alexandrescu str. 010621 

Court of Accounts, regarding the following 

the estimated amount of RON 36,385, for expenses 

of the file no. 1927/2/2019 (Bucharest Court of 

District 1, Bucharest, Romania Phone: 021-208 59 99; 

deviations from the Decision (respectively to the 

without a legal basis, respectively for expenses 

Appeal) as a forced intervener (defendant). EFSA 

Fax: 021-208 59 98 Fiscal Registration Certificate RO 

correlative measures): - annulled item 1 (measure 

with the rent of a building classified as company 

was summoned for the term of 23 October 2023. 

13267221 J40/7425/2000 Share capital: 3.464.435.970 

II.3) - The hiring of funds in the estimated amount 

housing for the benefit of the CEO, considering that 

The object of the court file no. 1927/2/2019 is the 

LEI www.electrica.ro Public Hidroelectrica in the 

of RON 224,622,940 (without VAT), for the execution 

the housing was not granted in accordance with the 

request submitted by SPEEH Hidroelectrica S.A. 

period 1 March 2019 – 31 December 2019 on the basis 

of works related to the objective “AMR system 

law; - annulled item 6 (measure II.8) - Unjustified 

against ANRE, through which SPEEH Hidroelectrica 

of regulated contracts, because this court decision, 

necessary for the measurement activity and 

increase in expenses amounting to RON 2,400, 

S.A. requested: i. the partial annulment of the ANRE 

doubled by the issuance of a new ANRE Decision, 

consumption dispatcher at Electrica SA level”, for 

representing land valuation services, engaged in the 

President’s Decision no. 324/25.02.2019 regarding 

could lead to the triggering of other litigations 

which the purchased goods, although they were 

same year, several times, with the same appraiser, 

the establishment of regulated prices for delivered 

regarding the status of these contracts and in 

highlighted in the accounting, are not physically 

for the same patrimonial elements; - annulled item 

electricity and quantities of electricity sold based 

relation of the regulated price differences. According 

found in the patrimony nor were they used for the 

7 (measure II.9) - Non-compliance with the legal 

on regulated contracts between 1 March 2019 and 

to what was presented by SPEEH Hidroelectrica, 

activities carried out according to the object of 

provisions regarding good management in the use 

31 December 2019 by SPEEH Hidroelectrica S.A.; ii. 

in the public offer prospectus in June 2023: “The 

activity, being necessary for the performance of 

of funds, respectively the employment of services at 

issuing a Decision approving the regulated price 

resolution of the case (1927/2/2019) is significantly 

the activity of other legal entities (the company’s 

overvalued prices by awarding a service contract to 

for the electricity sold by SPEEH Hidroelectrica, 

influenced by the decision pronounced by the 

subsidiaries); - annulled item 2 (measure II.4) - The 

an economic operator who presented a price offer 

between 1 March 2019 and 31 December 2019, based 

court for the appeal filed by Hidroelectrica against 

unjustified increase in the expenses with technical 

higher than those of other competitors. 

on regulated contracts concluded with suppliers 

ANRE Order no. 10/2019 regarding the approval 

assistance services in the estimated amount 

of last resort in compliance with legal provisions; 

of the pricing methodology (file no. 1170/2/2019). 

of RON 2,337,657.50 (without VAT), intended for 

Also, the head of claim regarding the extension 

iii. the payment to Hidroelectrica of the amounts 

Because the appeal that was the subject of file no. 

carrying out the activities of other legal entities 

of the implementation deadlines was rejected 

representing the damage suffered as a result of 

1170/2/2019, was rejected by the final decision of the 

(the distribution subsidiaries); - annulled item 3 

as unfounded and it was noted that the plaintiff 

the effects of the ANRE President’s Decision no. 

High Court of Cassation and Justice, Hidroelectrica 

(measure II.5) - Unjustified increase in operating 

reserved the right to submit a separate claim for the 

324/25.02.2019, the amount to which is added the 

anticipates that the decision in file no. 1927/2/2019 

expenses with the amount of RON 74,667.60 

legal expenses incurred in the case. 

legal interest related to the loss suffered, damage 

will be unfavorable”. 

(without VAT), representing maintenance services 

related to the period 1 March 2019 to 31 December 

for the equipment located in the communications 

The file no. 2229/2/2017* on the docket of the 

2019. 

infrastructure of the subsidiaries, which are 

Bucharest Court of Appeal has as its object, mainly, 

In the event that, following the analysis carried out 

by the legal department, additional information 

separate legal entities; - annulled item 4 (measure 

the partial annulment of the Court of Accounts’ 

We mention that ANRE requested the introduction 

will result that will lead to a different conclusion on 

II.6) – Unjustified increase in operating expenses 

Decision no. 12/27.12.2016, issued by the director of 

in the case as forced interventionist of the following 

the possible outcome of the litigation, Electrica will 

with services in the estimated amount of RON 

Directorate 2 within Department IV, respectively: 

last resort suppliers: Cez Vanzare S.A., Enel Energie 

inform the shareholders and investors.

273,500 (without VAT), for which proof of their 

regarding the irregularities found to be Electrica’s 

S.A. (with the licensed areas Banat and Dobrogea), 

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The next term in the case is 18 March 2024. 

Regarding transparency, Electrica reaffirmed its 

IEC 27001:2018. Additionally, also in October 2023, 

Case  no. 724/1285/2023

the legality of the negative certificate of verification, 

Sustainability Report for the seventh consecutive 

Management System from the certification body 

the court ruled as follows: “it can be clearly seen 

year. This report provides detailed information 

SRAC Cert affiliated with IQNet, in accordance with 

Following the appearance on portal.just.ro of 

that the payment was made as an immediate 

about all the companies within the Electrica Group, 

the requirements of the international standard SR EN 

In case no. 621/117/2023, in which the EC challenged 

commitment to stakeholders by publishing the 

Electrica S.A. obtained certification for the Energy 

information on the file no. 724/1285/2023, regarding 

consequence of the formulation of a petition for 

and can be accessed on the company›s official 

ISO 50001:2019. 

the filing by Eurototal Comp SRL Bucharest (EC) 

the opening of insolvency proceedings against 

website. Additionally, all these reports formed the 

of an application for the opening of insolvency 

the defendant, because immediately after the 

basis for evaluating sustainability-related aspects.

During the year 2023, the companies DEER and 

proceedings against Electrica SA, Distributie Energie 

formulation of this petition to the court, the 

Electrica Romania SA (DEER), Electrica makes the 

defendant paid the countervalue of the invoices 

•   Certifications

following clarifications: 

related to the hand cream, including the penalties 

claimed by the claimant, although through all 

Between the distribution subsidiary of Electrica 

communications between the parties previously 

SA, DEER, as Contracting Entity – Beneficiary and 

issued, it refused to pay the countervalue of the 

the company EC, as Supplier, the Sectoral Product 

hand cream for the reasons shown. For these 

Contract no. 5003/28Sep2022 – for the supply of 

reasons, since it is clear from the evidence 

“Hygienic and sanitary materials: hand cream, hand 

submitted that the applicant has improperly 

washing paste, nail brush, to–el, soap, toilet paper” 

performed the contractual obligations assumed 

was carried out, the contract price being RON 

under the sectoral contract for products No 

1.074.973 plus VAT. 

5003/28Sep2022, the document contested in 

the present case was duly issued, so that the 

On 28 December 2022, the Specialized Court of Cluj 

applicant’s claim is unfounded”. Judgment no. 

registered EC’s request for the opening of insolvency 

636/20Mar2023 remained final by decision no. 

In October 2023, Electrica S.A. underwent the annual 

audit for the supervision of the Integrated Quality 

Management System - Environment - Occupational 

Health and Safety - Information Security in 

accordance with the requirements of international 

reference standards SR EN ISO 9001:2015, SR EN 

ISO 14001:2015, SR ISO 45001:2018, and SR EN ISO/

1.2.5  Distribution segment

EFSA underwent annual surveillance audits of 

the Integrated Quality Management System - 

Environment - Occupational Health and Safety, 

implemented in accordance with the requirements 

of the reference standards ISO 9001:2015, ISO 

14001:2015, and ISO 45001:2018. These audits were 

conducted by the external certification body SRAC 

Cert. No major non-conformities were identified.

proceedings against DEER – file no. 1221/1285/2022. 

6/25May2023 pronounced by the Cluj Court of 

For the distribution segment, the significant 

1 April 2022-31 March 2023, as well as for the 

After the communication of the request, DEER 

Appeal. 

proceeded to pay the allegedly due amounts. We 

changes in the Romanian legislation were detailed 

amendment and completion of some normative 

at Appendix 3.1.1. Based on these changes, the 

acts in the field of energy and the amendment 

remind that Electrica informed investors about the 

On 25 October 2023, a new insolvency file was 

expected effects refer to: 

file 1221/1285/2022 from December 2022 through the 

registered with the Cluj Specialized Court, under 

of the GEO no. 119/2022 for amending and 

supplementing the GEO no. 27/2022 regarding 

current report of 3 January 2023. 

number 724/1285/2023, by EC. 

•  GEO no. 119/2022 for the amendment and 

the measures applicable to final customers 

The Cluj Specialized Court, by Judgment no. 

At the term of 11.01.2024, the court takes note of the 

measures applicable to final customers in the 

the period 1 April 2022-31 March 2023, as well 

74/12Jan2023, took note of the waiver of the creditor 

renunciation of the creditor EUROTOTAL COMP S.R.L., 

electricity and natural gas market in the period 

as for the modification and completion of 

EC to the judgement of the application for the 

when judging the request to open the insolvency 

1 April 2022—31 March 2023, as well as for the 

some normative acts in the field of energy: (i) 

opening of insolvency proceedings filed against 

procedure filed against the debtor DEER, it finds that 

modification and completion of some normative 

in the period 1 January 2023-31 March 2025 

DEER SA, the decision remaining final by Decision 

DEER’s appeal remains without object; without court 

acts in the field of energy - in force starting 

the mechanism for the centralized purchase 

no.115/02May2023 pronounced by the Cluj Court of 

costs. At the same time, the court takes note of the 

from 1 September 2022: (i) the additional costs 

of electricity is established; (ii) OPCOM is 

Appeal.

parties’ manifestation of will to waive the appeal. 

with the purchase of electricity, made between 

designated as the sole purchaser, it buys the 

The sentence is final.

1 January 2022 and 31 August 2023, in order to 

electricity from the planned producers and 

completion of GEO no. 27/2022 regarding the 

in the electricity and natural gas market in 

Subsequently, within the framework of the file no. 

133/117/2023*, DEER requested the reimbursement 

of the not due payments and accessories and 

•   Corporate image

also issued a negative certificate of verification 

as a result of the non-fulfilment of contractual 

obligations by the company EC. By Judgment no. 

2227/17Oct2023 the court admitted DEER’s claim. 

The decision can be appealed within 15 days from 

the communication. Subsequent to this judgment, 

EC made a partial payment of the amount it was 

obliged to pay. 

Mainly, as a result of the PR & Communication 

efforts, Electrica maintained its position at number 7 

in the top of the most valuable Romanian brands in 

2023. This represents the company›s highest ranking 

to date. In the same top, the brand›s market value 

is estimated at EUR 260 mn., an increase of 28% 

compared to the previous year.

cover the NL, compared to the costs included in 

sells the purchased electricity to the electricity 

the regulated tariffs, are capitalized quarterly, 

suppliers who have contracts concluded with 

RRR = 50% of the RRR applicable to each periods; 

final customers, the electricity transport and 

GEO no. 119/2022 was approved and amended 

system operator and the electricity distribution 

by Law no. 357/2022, application period 1 

operators, for covering the own technological 

January 2023 – 31 March 2025. 

consumption of the networks operated by them. 

DO can buy from OPCOM through an annual/

•  GEO no. 153/2022 for the amendment and 

monthly mechanism 75% of the amount of NL 

completion of GEO no. 27/2022 regarding the 

forecasted and validated by ANRE at the price of 

measures applicable to final customers in the 

450 RON/MWh, and producers can sell to OPCOM 

electricity and natural gas market in the period 

through an annual/monthly mechanism 80% of 

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the amount produced forecasted and validated 

2024, the net accounting value of the fixed 

investments from EU funds only if they did not 

to use the place of consumption and to keep 

by ANRE and Transelectrica at the price of 450 

assets included in the RAB on 31 December 

benefit from the PCI incentive. 

its destination for a period of at least 15 years 

RON/MWh. GEO no. 153/2022 was approved and 

2023; (vi) The regulated rate of return for the 

from the date of the PIF, otherwise he is obliged 

amended by Law 206/2023. 

year 2024 is maintained at the value of 6.39%; 

(vii) The inflation corrections related to RP4 will 

•  Law no. 158/2023 for the amendment and 

to return to the OD the value of the design 

completion of the Electricity Law no. 123/2012 

and execution of the connection installation, 

•  ANRE order no. 129/2022 for the approval of the 

be calculated in 2024 and added to the target 

provides that for the supply of equipment and 

proportionally with the period remaining unused, 

Methodological Norms for the recognition in 

income of 2025, which represents the first year 

aggregates for irrigation and for economic 

gradually, in accordance with ANRE regulations. 

tariffs of the additional costs with the purchase 

of RP5; (viii) The deadline for submitting to ANRE 

operators that carry out activities included in 

of electricity to cover the own technological 

the documentation substantiating the tariffs and 

CAEN codes 01 Agriculture, hunting and related 

•  The regulation approved by ANRE Order no. 

consumption compared to the costs included 

the investment program for the year 2024 was 15 

services and CAEN 10 Food industry, DSO has 

99/2023 allows granting to the TSOs and DSO 

in the regulated tariffs, application period 

August 2023. 

1 January 2022 – 31 August 2023 - (i) the 

the obligation to ensure the financing and 

the right to own, develop, manage or operate 

realization of the design and execution works 

electrical energy storage facilities (ISE) that 

quarterly capitalization of the additional costs 

•  OD sent to ANRE the data for monitoring the 

of the connection installation of the non-

represent fully integrated network components 

with NL compared to the costs included in the 

simulation of the application of binomial tariffs 

domestic final customer, whose length will be 

(CRCI). CRCI cannot be used by the TSO/

regulated tariffs; (ii) the capital costs related 

for the year 2022 until 31 March 2023. 

up to 2.5 km located on the territory and for 

DSO to buy or sell electricity on the electricity 

to the year 2022 are recognized in a distinct 

the connection installations that exceed the 

markets: for the purpose of system balancing 

component related to the additional cost with NL 

•  The modification of the Investment Procedure by 

length of 2.5 km, the financing of the difference 

or congestion management or to cover the own 

applicable starting on 01 April 2023, outside the 

ANRE Order no. 6/2023 considers the recognition 

from the network falls on the responsibility of 

technological consumption of the electricity 

7% limitations imposed for tariff increases; (iii) 

of DO investments in energy storage and 

the non-domestic final customer. The counter 

network.

the recognized NL price for 2022 will be equal to 

production for control and NL: (i) inclusion in the 

value of the design and execution works of the 

the reference price calculated as an average 

category of justifiable investments of energy 

connection installation will be recognized in the 

among network operators, increased by 5%; (iv) 

production installations from renewable sources 

tariff by ANRE, the resulting assets become the 

the additional cost with NL capitalized in 2023 

for NL supply and control consumption from 

will be included in the separate NL component 

the station; (ii) the inclusion in the category of 

applicable in 2024. By ANRE Order no. 104/2023, 

necessary investments of electricity storage 

the application period was changed until March 

facilities; (iii) the possibility for DO to own 

31, 2025, according to the changes approved by 

storage facilities, by way of exception from 

Law no. 357/2022. 

the provisions of the Energy Law (art. 46^1 

para. (1)), only with prior approval by ANRE; 

•  ANRE order no. 79/2023 regarding the 

(iv) establishing the method of calculating 

modification and completion of the Methodology 

the economic efficiency of investments in 

for establishing tariffs for the electricity 

production/storage, to be recognized by ANRE. 

distribution service, approved by ANRE Order 

no. 169/2018 with the following changes: (i) The 

•  The Methodology for the evaluation of 

year 2024 represents the transition period from 

investments in projects of common interest 

the fourth period (RP4) to the fifth regulatory 

(PCI) approved by the ANRE Order no.1.2023 is 

period (RP5); (ii) The target income of the DO 

modified as follows: (i) expanding the scope 

for the year 2024 is established according to 

of the Methodology for DO investments (in 

the Methodological Norms that complete the 

addition to TSOs), (ii) granting a 1% RRR incentive 

Methodology (Annex 1^1); (iii) In 2024, ANRE 

for PCI, (iii) expanding the scope of the type 

approved for DEER regional distribution tariffs 

of PCI from electric transmission networks, 

established on the basis of a single regulated 

to: a) electrical transmission and distribution 

income and a single NL target; (iv) The forecast 

networks; b) offshore networks for energy from 

for NL price for the year 2024 is calculated as 

renewable sources; c) projects that integrate 

a weighted average considering 75% the price 

innovative technical solutions and which, 

approved by MACEE and 25% the DAM price for 

although they have low capital costs, involve 

May 2023; (v) The value of the RAB achieved on 

significant operating costs. The Methodology 

31 December 2023 will be calculated in 2024, 

for establishing distribution tariffs was also 

and the DO will transmit to ANRE, until 31 May 

modified by granting the RRR incentive of 2% for 

property of OD from the moment the connection 

installation is installed. The applicant, a future 

non-domestic end customer, has the obligation 

1.2.6  Supply segment

The regulatory framework has undergone significant 

1.  Price cap for household and non-household 

changes over the last decade, in terms of full 

consumers according to GEO no. 27/2022, with 

liberalization of electricity and natural gas market, 

subsequent amendments and additions;

supply and distribution activities unbundling, 

2. Limitation of average acquisition price 

implementation of renewable energy support 

considered for determining the amounts to be 

scheme, support for electricity consumers and price 

recovered from state budget to 1,300 RON/MWh 

capping for final consumers.

initially, lowered to 900 RON/MWh in present 

Starting 1 November 2021, against the background of 

- amendment according to Law no.206/2023 

the increase in energy and natural gas price on the 

(approving GEO 153/2022), except for acquisition 

international and national markets, the energy crisis, 

intended for Supply of Last Resort, where this 

as well as the effects caused by these increases 

limitation does not apply;

among population in Romania, a series of support 

3. Centralized Electricity Purchase Mechanism 

schemes have been applied to electricity and gas 

(CEPM): the mechanism provides that OPCOM, 

consumers, by establishing compensation and 

as the sole purchaser, buys electricity from 

capping schemes between 1 November 2021 and 31 

producers (electricity producers with an 

March 2025.

installed power capacity equal to or greater 

than 10 MW) and sells purchased electricity 

Therefore, the year 2023 was under the influence of 

to suppliers who have contracts with end 

the following features:

customers, transmission system operator and 

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distribution system operators to cover their own 

The categories of customers benefiting from natural 

technological consumption; the price paid by 

gas cap in 2023: 

Due to recent changes in world energy market, 

OPCOM to energy producers for sold electricity 

• household customers – the maximum price is 

including EU, each member state of the European 

quantities is 450 RON/MWh, and the OPCOM 

capped at 0.310 RON/KWh;

Union must modify its own energy sector legal 

selling price to economic operators is also 450 

•  non-household customers - the maximum 

framework in order to protect civil society’s interests, 

RON/MWh (OPCOM has the right to charge 

price is capped at 0.370 RON/KWh for an annual 

on the one hand, and on the other hand to ensure 

a balance and adequate functionality on the local 

energy market by supporting energy suppliers.

Subsidies to be received

As of 31 December 2023, the estimated amount to 

be received from the Ministry of Energy for subsidies 

is RON 2,595.5 mn. (31 December 2022: RON 1,280.7 

mn.), and from the County Agency for Payments 

and Social Inspection is worth RON 18.9 mn.. Of the 

amount of subsidies to be collected, RON 1,528.7 

mn. represents uncollected claims submitted to the 

state authorities and RON 1,085.9 mn. claims not yet 

submitted to the state authorities by 31 December 

2023.

market participants tariffs/commissions at the 

consumption of up to 50 GWh.

level of costs recorded through the organization 

of Centralized Electricity Purchase Mechanism). 

In order to carry out the transactions, OPCOM 

will organize an annual procurement procedure 

each month, as well as an additional monthly 

procurement procedure, for electricity quantities 

to be delivered in the following month; the 

annual and monthly quantities of electricity 

are binding on the electricity producers and 

economic operators for all settlement intervals 

each month (contracts are concluded by 

signature, within a maximum of three working 

days);

4. The mandatory natural gas underground 

storage was calculated by ANRE according 

to two criteria: obligation of all suppliers to 

store a quantity of gas that would cover 90% 

of Romania’s storage capacity and the market 

share of each supplier in 2022;

5. Obligation of natural gas producers to sell at 

the price of 150 RON/MWh the quantities needed 

to supply household customers/heat energy 

producers.

The compensated amounts are settled by the 

National Agency for Payments and Social Inspection 

(“ANPIS”) for household consumers and by the 

Ministry of Energy for non-household consumers.

Transactions on the competitive gross market 

are transparent, public, centralized and non-

discriminatory. Participants on the gross market 

can trade electricity based on bilateral contracts 

concluded on distinct markets.

Green certificates

Electricity suppliers have the legal obligation to 

purchase green certificates from renewable energy 

producers, based on the annual targets or quotas 

established by law, which apply to the amount 

of electricity purchased and supplied to final 

consumers. The cost of green certificates is billed to 

final consumers separately from electricity tariffs.

The impact of energy prices increase

After the full liberalization of electricity market 

The categories of customers benefiting from 

from January 1, 2021, for all types of consumers, 

electricity cap in 2023:3: 

the international context of energy markets 

•  household customers (consumption <100 

characterized by an unbalance between demand 

KWh/month - maximum price 0.68 RON/KWh, 

and supply at European level, combined with 

consumption range 100-300 KWh/month – by 

energy policies developed both at EU level and at 

delimiting the volume exceeding 255 KWh/

national level, it led to an increase in electricity 

month - respectively the price level capped at 

prices. Additionally, the strong increase in energy 

0.800 RON/KWh and with a maximum price of 1.3 

prices is both the result of external factors, such as 

RON/KWh;

exponential increase in emission certificates price, 

•  non-household customers - divided separately 

and of internal factors, such as large volumes of 

by activity field into three categories: 

energy traded on the Day-Ahead Market (DAM). 

customers benefiting from capping for 85% of 

The entire energy sector was affected by electricity 

consumption with a price capped at 1 RON/KWh, 

price.

customers benefiting from capping for 100% of 

consumption, price capped at 1 RON/KWh and 

The difficult conditions mentioned above have led 

the rest of the customers at a maximum price of 

to an increase in operating expenses, mainly for the 

1.3 RON/KWh.

purchase of energy for the NL and for the supply 

activity.

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1.3  Subsequent events to the balance sheet date

Below are presented the relevant events that took place at the Group level in the period between 31 

December 2023 and the date of the present report.

1.3.1  General Meetings of Shareholders

On 26 January 2024, the Ordinary General Meeting 

Also, Electrica shareholders approved with the 

of Shareholders approved the election of the 

majority of votes cast by the shareholders present 

following members of the Company’s Board of 

or represented:

Directors by applying the cumulative vote method:

•  Establishing the term of office of the members 

•  Mr. Ion-Cosmin Petrescu

•  Mr. Dumitru Chirita

•  Ms. Georgiana Bogasievici

•  Mr. Dragos-Valentin Neacsu

•  Mr. Adrian-Florin Lotrean

•  Mr. Marian-Cristian Mocanu

• Ms. Valentina-Elena Siclovan 

The following members of the Board of Directors are 

considered revoked: Mr. Iulian Cristian Bosoanca, 

Mr. Radu Mircea Florescu and Mr. Gicu Iorga. They 

were not reconfirmed as a result of applying the 

cumulative voting method, their mandate ending as 

a consequence on the OGMS date, according to the 

provisions of art. 167 paragraph (3) of Regulation no. 

5/2018 of the Financial Supervision Authority. 

elected by applying the cumulative voting 

method, for a period of 4 (four) years.

•  Establishing the remuneration due to the 

members of the Board of Directors elected 

by applying the cumulative vote method, 

respectively that established according to the 

Remuneration Policy for Administrators and 

Executive Directors, approved by the Resolution 

of the Ordinary General Meeting of Shareholders 

no. 1/27 April 2023.

•  Establishing the form of the mandate contract 

that will be signed with the members of the 

Board of Directors elected by applying the 

cumulative vote method, respectively the one 

approved by the Resolution of the Ordinary 

General Meeting of Shareholders no. 1 of 9 

February 2018.

The Audit and Risk Committee: 

The Climate Governance and Public Affair 

•  Ms. Valentina-Elena Siclovan – Chair; 

Committee: 

•  Mr. Adrian-Florin Lotrean – member; 

•  Mr. Dragos Valentin Neacsu – Chair 

•  Mr. Ion Cosmin Petrescu – member. 

•  Ms. Valentina-Elena Siclovan – member

•  Ms. Georgiana Bogasievici – member

1.3.3  Other relevant events 

On 19 January 2024, Electrica received from the 

All these announcements and auditor’s reports can 

European Bank for Reconstruction and Development 

be found on ELSA’s website, at this address: https://

(EBRD) a notification according to which, on 15 

www.electrica.ro/en/investors/results-and-reports/

January 2024, the EBRD disposed of a number 

current-reports-art-108/.

of 205,505 Electrica shares, falling below the 5% 

threshold provided by article 71 of Law 24/2017 

On 31 January 2024, Electrica published the Auditor’s 

on issuers of financial instruments and market 

Report on transactions reported in H2 2023 pursuant 

operations, thus reaching a holding of 4.9502% of 

to Art. 108 of Law 24/2017 (R).

the voting rights of Electrica calculated on the basis 

of all the shares to which voting rights are attached, 

For more details, please see chapter 3.4 in the 

even if for the shares own shares (6,890,593 own 

current report.

shares) their exercise is suspended, in accordance 

with the provisions of art. 71 (1) of Law no. 24/2017 

Treasury aspects

regarding issuers of financial instruments and 

market operations.

Loans related to third parties

On 14 February 2024, Electrica published the 

•  On 18 January 2024, the Intra-Group Domestic 

preliminary key performance indicators for Q4 2023.

Cash Pooling Services Agreement No. 

On 15 February 2024, Electrica published a current 

Generale SA and Societatea Energetica Electrica 

report regarding the final settlement of a case 

SA, as “Pool Leader” and DEER, as “Participating 

8/8130/2024 was signed between Groupe Societe 

1.3.2  Decisions of ELSA’s BoD 

against ANRE. 

Company”, to ensure the optimal management 

of the cash deficit or surplus in the bank 

On 22 January 2024 and subsequently on 25 March 

During the same meeting from 12 February 2024, 

On 22 February 2024, Electrica announced the 

accounts of each of the Group Companies. 

2024, ELSA’s Board of Directors decided to extend 

the Board of directors decided the following 

attraction of EUR 171 mn. Non-Reimbursable 

the duration of the mandate of Mr. Alexandru-

composition for its consultative committees, until 31 

Financing Through the Modernisation Fund.

•  On 18 January 2024, the Intra-Group Domestic 

Aurelian Chirita, as CEO, under the same conditions, 

Decemebr 2024: 

until 31 December 2024 (inclusively).

The Strategy and Corporate Governance 

Transactions with related parties

Cash Pooling Services Agreement No. 

9/8130/2024 was signed between Groupe 

Societe Generale SA. and SE Electrica SA, as “Pool 

During its meeting on 12 February 2024, ELSA’s BoD 

Committee: 

After 31 December 2023, Electrica published 6 more 

Leader” and EFSA and SERV, as “Participating 

elected Mr. Dumitru Chirita as the Chair of the Board 

•  Mr. Marian Cristian Mocanu – Chair; 

current report according to art. 108 of Law no. 

Companies”, to ensure the optimal management 

of Directors until 31 December 2024.

•  Mr. Dumitru Chirita – member; 

24/2017, reporting transactions concluded between 

of the cash deficit or surplus in the bank 

•  Mr. Dragos Valentin Neacsu – member. 

DEER – OPCOM, EFSA – OPCOM, DEER – EFSA and EFSA 

accounts of each of the Group Companies. 

Also, the Board of Directors decided, in accordance 

with art. 18, para. 14 from the articles of Association 

of the Company, to establish two vice-chair 

positions. Therefore the Board of Directors elected 

Mr. Dragos-Valentin Neacsu and Mr. Adrian-Florin 

Lotrean as Vice-Chairs, until 30 December 2024.

The Nomination and Remuneration Committee: 

•  Mr. Adrian-Florin Lotrean – Chair; 

•  Mr. Marian Cristian Mocanu – member; 

•  Mr. Ion Cosmin Petrescu – member. 

- TEL, as well as a current report for information on 

the signing of contracts on MACEE, for the year 2024, 

•  On 18 January 2024, the Loan Facility Agreement 

by DEER and EFSA. 

no.10/8130/2024 was signed by SE Electrica SA 

and BRD - Groupe Societe Generale SA within 

Also, on 30 January 2024, Electrica published the 

the cash-pooling structure, whereby the bank 

Auditor’s report regarding the transactions reported 

provides the borrower with a revolving credit 

in H2 2023 according to Art. 108 Law 24/2017 (R).

facility in the total amount of RON 150 mn., valid 

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until 17 January 2025, to finance the funding 

ING Bank, SE Electrica SA as guarantor, extending 

•  On 31 January 2024, SE Electrica SA concluded 

The amount of the Parent Corporate Guarantees 

needs of the Participating Companies and the 

the validity of the facility until 29 March 2024. 

the Loan Agreement no. 19 dated 31 January 

(which are not real guarantees), constituted by ELSA 

borrower within the structure from the Cash 

2024 with Foton Power Energy SRL, for a loan 

in favor of EFSA, is RON 161.6 mn.. 

Pooling Agreements. 

•  On 19 February 2024, was signed the contract FA 

in the amount of RON 245 mn. and 12 months 

•  On 22 January 2024, was signed the Additional 

Vista Bank, SE Electrica SA as guarantor, whereby 

necessary for the completion and operation of 

9178/19.02.2024, concluded between EFSA and 

validity, to finance the investment works 

 Subsidies receivables

Act no.3 to the Loan Agreement no. 2022012502 

a facility for working capital was granted, in the 

the photovoltaic power plant “Bihor”.

Subsequent to the reporting date, claims amounting 

concluded by DEER and BCR which extends 

amount of RON 17 mn., valid until 19 February 

the validity of the overdraft facility and bank 

2025. 

guarantees, in the amount of RON 220 mn., until 

30 April 2024. 

•  On 20 February 2024, was signed the contract 

02246681CR/01/20.02.2024, concluded between 

•  On 30 January 2024, was signed the 

EFSA and Vista Leasing IFN, SE Electrica SA as 

Additional Act no.4 to the Loan Agreement no. 

guarantor, whereby a facility for working capital 

11673879/02.02.2022, in the amount of RON 190 

was granted, in the amount of EUR 6 mn., valid 

mn., concluded by EFSA and Banca Transilvania, 

until 10 February 2025.

SE Electrica SA as guarantor, extending the 

validity of the facility until 30 January 2025 and 

amending the commercial terms. 

Intragroup Loans

 Guarantees established by ELSA, for its
 subsidiaries and other third parties
  Parent Corporate Guarantees

• On 01 February 2024, was signed the Additional 

act no.1 to the Parent Corporate Guarantee 

established on 14 December 2022 in favor 

of EFSA, having as beneficiary COMPLEXUL 

ENERGETIC OLTENIA. The amount of the guarantee 

was reduced to RON 32.1 mn. and the validity was 

extended until 10 March 2024. 

to RON 605 mn. were submitted to the state 

authorities for the period prior to 31 December 

2023 (invoices issued in October - November 

2023), subject to GEO no. 27/2022 applicable with 

subsequent amendments.

Legislation

The legislative changes with significant impact in 

the activity of the Electrica Group and published in 

the period between the closure of the financial year 

2023 and the date of this report are presented in 

Appendix A.3.2.

•  On 31 January 2024, was signed the Additional 

Act No. 5 to the Loan Agreement 10091385 

of 16.12.2020 concluded by DEER and Banca 

Transilvania SA, extending the validity of the 

period of use until 30 January 2025 and maturity 

until 31 January 2026 for the facility in amount of 

RON 160 mn., for credit line and for issuing bank 

guarantees. 

•  On 02 February 2024, was signed the Additional 

Act no.4 to the Loan Agreement no. 17/8130/2022 

dated 04 February 2022 concluded by EFSA and 

BRD, SE Electrica SA as guarantor, extending 

the validity of the facility in amount of RON 220 

mn. until 02 February 2025 and amending the 

commercial terms. 

•  On 8 February 2024, was signed the Additional 

Act no. 1 to the Credit Facility Agreement 

no. 49183, non-cash facility for issuing bank 

guarantees, concluded between DEER and 

Garanti BBVA, SE Electrica SA as guarantor, in 

the amount of RON 103 mn., which extended the 

validity of the facility until 20 April 2026. 

•  On 14 February 2024, was signed the Additional 

Act no. 5 to the Credit Facility Agreement no. 

WB/C/14 dated 18 February 2022 in the amount 

of EUR 34.3 mn., concluded between EFSA and 

• On 13 January 2024, was concluded the Interna 

Treasury Convention no.13/22.01.2024, between 

•  On 01 February 2024, was signed the Additional 

SE Electrica SA and EFSA, within the Cash Pooling 

act no.1 to the Parent Corporate Guarantee 

structure, to ensure the optimal management of 

established on 28 December 2022 in favor 

the cash deficit or surplus in the bank accounts 

of EFSA, having as beneficiary COMPLEXUL 

of each of the two companies. 

ENERGETIC OLTENIA. The amount of the guarantee 

was reduced to RON 62.8 mn. and the validity 

•  On 13 January 2024, was concluded the Interna 

was extended until 10 March 2024.

Treasury Convention no.14/22.01.2024, between 

SE Electrica SA and DEER, within the Cash Pooling 

structure, to ensure the optimal management of 

the cash deficit or surplus in the bank accounts 

of each of the two companies. 

•  On 13 January 2024, was concluded the Interna 

Treasury Convention no.15/22.01.2024, between 

SE Electrica SA and SERV, within the Cash Pooling 

structure, to ensure the optimal management of 

the cash deficit or surplus in the bank accounts 

of each of the two companies. 

•  On 23 January 2024, SE Electrica SA concluded 

the Loan Agreement no. 17 dated 23 January 

2024 with New Trend Energy SRL, for a loan in the 

amount of RON 200 mn. and 12 months validity, 

to finance the investment works necessary 

for the completion and operation of the 

photovoltaic power plant “Satu Mare 3”. 

1.3.4  Litigation 

Case no. 2790/1/2023 (former 360/2/2015)

On 14 February 2024, the High Court of Cassation 

Following Electrica’s request, the case was 

and Justice definitively settled the case no. 

suspended until the final resolution of Electrica’s 

2790/1/2023 (former number 360/2/2015), against 

file against ANRE no. 192/2/2015, having as its 

ANRE, rejecting Electrica’s recourse as unfounded 

object the annulment of ANRE’s President Order 

(the case was also dismissed on merits). The object 

no. 146/2014 regarding the establishment of the 

of the file is Electrica’s request for the annulment 

regulated rate of return applied to the approval of 

of ANRE President’s Order no. 156/2014 regarding 

tariffs for the electricity distribution service provided 

the approval of the specific tariffs for the electricity 

by concessionaire distribution operators starting 

distribution service and of the price for reactive 

from January 1, 2015 and the repeal of art. 122 of the 

electricity, for Societatea Comerciala “Filiala de 

Methodology for establishing tariffs for the electricity 

Distributie si Furnizare a Energiei Electrice Electrica 

distribution service, approved by the Order of the 

Distributie Transilvania Sud” S.A., now Distributie 

President of the National Energy Regulatory Authority 

Energie Electrica Romania S.A. (DEER), Electrica’s 

no. 72/2013.

subsidiary. 

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2. ELECTRICA GROUP

56

57

2.1  Organizational structure

Table 4. ELSA’s subsidiaries

Electrica Group is one of the main distributors and suppliers of electricity on the Romanian market.

Subsidiary

Activity

The main activity segments of the Group consist of the distribution of electricity to users, the supply 

of electricity to domestic and non-domestic consumers, the segment of services related to external 

distribution networks as well as the segment regarding the production of electricity from renewable 

sources.

Currently, the Group includes the parent company of the Group, Societatea Energetica Electrica SA (“ELSA”) 

and the following subsidiaries and associated entities::

•  Distributie Energie Electrica Romania S.A. („DEER”) resulted from the merger through absorption of 

the three distribution subsidiaries Societatea de Distributie a Energiei Electrice Muntenia Nord (“SDMN”), 

Societatea de Distributie a Energiei Electrice Transilvania Sud (“SDTS”) and Societatea de Distributie 

a Energiei Electrice Transilvania Nord (“SDTN”), the last one being the absorbing company. DEER is 

the main electricity supplier in Transilvania Nord area (Cluj, Maramures, Satu Mare, Salaj, Bihor and 

Bistrita Nasaud counties), Transilvania Sud area (Brasov, Alba, Sibiu, Mures, Harghita and Covasna 

counties) and Muntenia Nord area (Prahova, Buzau, Dambovita, Braila, Galati and Vrancea counties), 

ensuring the service of network users by operating the installations that work at 0.4 kV to 110 kV (power 

lines, substations and transformation stations). DEER holds exclusive distribution licenses for the 

aforementioned regions, which have a validity period until 2027, with the possibility of extension for a 

period of 25 years; 

•   Electrica Furnizare S.A. („EFSA”), company whose main activity is the supply of electricity to final 

consumers. EFSA holds an electricity supply license that covers the entire territory of Romania, which 

was renewed in 2021 for a period of 10 years, and a license for carrying out the activity of natural gas 

supply, valid until 2022. In view the expansion of the economic activities of Electrica Furnizare S.A. (EFSA) 

in Hungary, the electricity trading license was granted by the Hungarian Energy and Public Utilities 

Regulatory Authority (MEKH) for Electrica Furnizare, by Decision no. H879/2022. Also, the Group holds a 

natural gas supply license valid until 2032.  

•   Electrica Serv S.A. („SERV”) starting on 30 November 2020, the company absorbed Servicii Energetice 

Muntenia SA (“SEM”), following a merger process. SERV provides repair services and other related 

Sole 
registration 
code

Head Office

% shareholding 
as at 31 December 
2023

14476722

Cluj-Napoca

99.99999929%

Electricity distribution in 
geographical areas Transilvania 
Nord, Transilvania Sud and 
Muntenia Nord

Electricity and natural gas supply

28909028

Bucuresti

99.9998444099934%

Services in the energy sector 
(maintenance, repairs, 
construction)

17329505

Bucuresti

99.99998095%

Production of electricity

42910478

Constanta

Production of electricity

42921590

Constanta

Production of electricity

43652555

Constanta

100%

60%

60%

Distributie Energie 
Electrica Romania 
S.A. („DEER”)

Electrica Furnizare 
S.A. (“EFSA”)

Electrica Serv S.A. 
(“SERV”)

Sunwind Energy S.R.L. 
(“SWE”)

New Trend Energy 
S.R.L. (“NTE”)

Foton Power Energy 
S.R.L. (“FPE”)

Table 5. ELSA’s associates

Source: Electrica

Associate

Activity

Sole 
registration 
code

Head Office

% shareholding 
as at 31 December 
2023

Crucea Power Park 
S.R.L. (“CPP”)

Production of electricity

25242042

Constanta

40%

•   Crucea Power Park S.R.L. („CPP”) develops the wind project “Crucea Est”, with a designed installed 

capacity of 121 MW and a projected electricity storage capacity of 60 MWh (15 MW x 4h), located outside 

the Crucea commune, Constanta county.

Source: Electrica

services to third parties and various services to the companies in the group (car rental, building rental, 

Merger by absorption within the Group:

etc.). 

•   Sunwind Energy S.R.L. („SWE”) is developing the photovoltaic project “Satu Mare 2” with a designed 

the merger by absorption between Societatea Energetica Electrica SA (“ELSA”), Societatea Electrica 

installed capacity of 27 MW, located near Satu Mare and became subsidy on 21 March 2022 as a result of 

Productie Energie SA (“EPE”), Electrica Energie Verde 1 SRL (“EEV1”) and Green Energy Consultancy & 

ELSA owning 60% of shares. On 24 March 2023, ELSA bought the remaining shares up to 100%; 

Investments SRL (“GECI”) (together the “Companies”) and the participation of the Companies in the merger, 

•   New Trend Energy S.R.L. („NTE”) develops the photovoltaic project “Satu Mare 3”, with a designed 

Energie Verde 1 SRL and Green Energy Consultancy & Investments SRL as absorbed companies, with the 

capacity of 59 MW, located near Satu Mare and became subsidy on 27 May 2022 as a result of ELSA 

effective date of the merger being 31 December 2023.

with Societatea Energetica Electrica SA as absorbing company, Electrica Productie Energie SA, Electrica 

On 20 December 2023, the Extraordinary General Meeting of the Company’s Shareholders (EGMS) approved 

owning 60% of shares.  

•   Foton Power Energy S.R.L. („FPE”) develops the photovoltaic project “Bihor 1”, with a designed installed 

capacity of 77.5 MW, located near Oradea city and became subsidy on 31 July 2023 as a result of ELSA 

owning 60% of shares.

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Table 6. Long term investments owned by ELSA

Company

Activity

CCP.RO 
Bucharest S.A. 
(„CCP.RO”)

Source: Electrica

Financial brokerage activities, exclusively 
insurance activities and pension funds 
(risk management through derivative 
products on the energy market)

Sole 
registration 
code

Head Office

% shareholding 
as at 31 December 
2023

2.2  Key elements of the 2024 – 2030 Corporate Strategy

The results of the Corporate Strategy for 2019-2023 were the starting point for the analyzes and debates 

necessary to develop the Corporate Strategy for 2024-2030. The Board of Directors approved the new 

strategic directions and objectives, the document being available on the company’s website in the section 

17777754

Bucuresti

7.72%

Investors > Strategy overview > Key elements of Electrica Group’s Strategy for 2024-2030 – document 

•  On 8 December 2022, the effective subscription was made in the amount of RON 7 mn., equivalent to 

8.06% of the share capital of the company CPP.RO Bucharest S.A. after the increase of the share capital, 

CCP.RO thus becoming a financial investment owned by ELSA for the long term. Following the completion 

of the share capital increase process approved by the EGMS of the Company on 29 May 2023, in which 

ELSA did not participate, ELSA’s holding in the share capital of CCP.RO was reduced to 7.72% as of 18 

August 2023..

Electrica Group Structure at the Date of this Report

Distributie Energie 
Electrica Romania S.A.

(cid:23)(cid:21)
(cid:31)(cid:31)(cid:30)(cid:31)(cid:31)(cid:29)(cid:28)

Distribution Operator

(cid:27)(cid:26)(cid:26)(cid:29)(cid:28)

Sunwind Energy SRL

Photovoltaic project 
development company - 27 MW

Electrica Furnizare S.A.

(cid:23)(cid:21)
(cid:31)(cid:31)(cid:30)(cid:31)(cid:31)(cid:29)(cid:28)

New Trend Energy SRL

(cid:25)(cid:26)(cid:29)(cid:28)

serv

(cid:27)(cid:21)

FISE  Electrica Serv S.A.

(cid:23)(cid:21)
(cid:31)(cid:31)(cid:30)(cid:31)(cid:31)(cid:29)(cid:28)

Foton Power Energy SRL

(cid:25)(cid:26)(cid:29)(cid:28)

CCP.RO Bucharest S.A.

(cid:24)(cid:30)(cid:24)(cid:23)(cid:29)(cid:28)

Crucea Power Park SRL

(cid:22)(cid:26)(cid:29)(cid:28)

1)  Filiala de intretinere si Servicii Energetice

2) The existence of additional shareholders was imposed by the provisions of Art. 10, paragraph (3) of the 

Law no. 31/1990 regarding the companies. 

published on December 22, 2023.

The main strategic directions assumed are:

• Contribution to a green economy transition

• Promoting network security and business sustainability

• Accelerating the digital transition in the Group’s operations. By adopting strategic directions, aligned 

with those at national and European level, Electrica Group could play an important role in transforming 

the energy sector, contributing to a new era of energy that is sustainable, efficient and environmentally 

friendly.

Governance and investor relations remain in focus for the Group, pursuing continuous improvement and 

implementation of best practices in corporate governance and investor relations.

The general objectives proposed within the corporate strategy cover all Group operations and constitute 

the response adapted to new trends and market requirements: 

– 1. Diversification of renewable energy sources → Active contribution to large-scale projects to 

increase the share of renewable energy sources in the national energy mix through significant 

investments in the development and implementation of renewable energy technologies, such as 

solar, wind, CCGT and hydrogen potential, including energy storage solutions.

– 2. Implementing ESG in business models → Implementing a comprehensive governance framework 

for stakeholder engagement, while promoting sustainable practices across the Group, actively 

participating in initiatives aimed at reducing greenhouse gas emissions and combating climate 

change, investing in training programs and education to ensure a workforce prepared for the 

new requirements of the energy sector, awareness and education initiatives for communities and 

customers on the benefits and importance of sustainable energy.

– 3. Sustainable electrification and modern infrastructure → Investment in automation and 

development of smart grids for efficient grid management and smart energy distribution, as well 

as to support the transition to renewables, promoting sustainable mobility through investments in 

charging infrastructure for electric vehicles.

– 4. Energy efficiency and customer solutions → Implementing extensive energy efficiency programs 

in the Group’s operations and integrating digital technologies for optimizing and efficiently 

monitoring energy consumption, integrating innovative services, customized energy solutions and 

educational programs for customers in order to reduce energy consumption.

– 5. Digitalization and innovation → Automating business processes and integrating them on 

interconnected platforms to increase operational efficiency, develop virtual communication 

channels to improve customer experience, support innovative initiatives and develop strategic 

partnerships with other companies and organizations to share expertise and collaborate on 

innovative projects that contribute to the modernization of the organization and the transformation 

of the energy sector.

2023 DIRECTORS’ REPORT2023 DIRECTORS’ REPORT2023 ELECTRICA ANNUAL REPORT2023 ELECTRICA ANNUAL REPORTPhotovoltaic project development company - 59 MWPhotovoltaic project development company - 77 MWElectricity and natural gassupply companyEnergy services companyWind project development company - 121 MW60

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In addition to traditional areas of interest, namely 

embraces diversity, we remain committed 

term strategy. Thus, in the Distribution segment, 

Within the strategy there is a strong focus on the 

electricity distribution, electricity and natural gas 

to creating the most equitable and inclusive 

we aim to develop smart grids and increase their 

implementation of ESG (Environmental, Social, 

supply and energy services, there is a high interest 

workplaces, advancing diversity representation at 

flexibility to meet the needs of consumers and 

Governance) principles and the development of 

in developing new activities based on innovative 

every level of the organization.

to integrate electric vehicles. We aim to increase 

organisational excellence programmes. In view of 

technology, while continuing to monitor and 

network security, accelerate the digitisation process 

the geopolitical crisis in 2022, which has led to a 

analyze growth opportunities through mergers or 

By translating general strategic objectives into 

and improve business resilience to face future 

steep rise in energy prices, we are also focusing on 

acquisitions. It also aims at a closer relationship 

objectives and plans of specific initiatives, at the 

market challenges.

streamlining operational costs and securing funding 

with customers, based on skills development, but 

level of each Subsidiary, the organization adapts 

sources for future investments.

also on an offer of products and services in line with 

to market conditions, customer expectations and 

As a result of the implementation, as of 1 January 

their needs. 

the rapid pace of technology so as to deliver value 

2022, of the new unified target organization 

Ultimately, our strategy is a response to changes in 

Also, an important role will be played by optimizing 

consistently.

chart, whereby all structures in the area of 

the energy sector and market needs, and the need 

strategic activities (asset management, energy 

for continuous adaptation and innovation remains 

IT&C support functions and aligning with industry-

Distribution segment

management, integration program management, 

at the heart of our actions.

specific trends and solutions. In this context, beyond 

IT&C, strategic project management), financial 

the digitization of processes and their integration 

In the Distribution segment, the organizational 

and support activities have been brought together 

Establishing a predictable and incentivising 

into IT platforms, the development of smart grids, 

transformation process initiated in 2017 was 

under a single coordination at the level of the 

regulatory framework for the fifth regulatory 

the integration of smart meters into the rhythm 

consolidated by the legal merger of the three 

company resulting from the merger - Distributie 

period will boost investment in the modernisation, 

of their implementation plan, support for the 

Distribution Operators of the Group in 2020, under 

Energie Electrica Romania SA (DEER), in the coming 

automation and digitalisation of distribution 

operationalization of prosumers, etc. are foreseen 

the umbrella of Distributie Energie Electrica Romania 

years will continue the process of adaptation 

networks to meet the requirements of a sustainable 

in the distribution area. In the supply area, the 

SA (DEER). The post legal merger integration 

and continuous improvement of processes and 

energy infrastructure.

development of a customer-friendly interface, the 

facilitated the adaptation and improvement of 

supporting technology, as defined by the approved 

automation of contracting, reporting and invoicing 

processes and technology according to the new 

Strategy for the distribution segment. As a result 

To finance investments in the Distribution segment, 

processes and data exchange with all distributors 

strategy (horizon 2019-2023) and the program of 

of the implementation of the organisational 

investment financing mechanisms will be optimised, 

in Romania are critical elements supported by IT&C 

measures related to the integration.

transformation plan as of 1 February 2023, a number 

using both own sources and European funding 

in order to ensure strategic advantages for the 

Group’s business segments.

The current strategy, approved last December, 

is based on three main pillars: sustainable 

–  simplification and structuring of the 

upgrading networks and transforming them into 

decision-making chain by branches of 

smart grids, which will be reflected both in improved 

of strategic objectives have been pursued, such as:

programmes, which provide opportunities for 

The corporate governance framework continues 

growth of the company’s value, transformation 

activity;

network resilience and increased operational 

to improve, closely following the Corporate 

and sustainability through the implementation 

–  specialisation and professionalisation of 

efficiency.

Governance Action Plan established with the EBRD 

of ESG principles and organisational excellence 

since 2014. It was approved the establishment of the 

programmes, and efficiency through increased 

human resources in key activities;

–  reducing the NL by creating a well-

Climate Governance and Public Policy Committee 

network security, digitalisation and improved 

structured organisational branch so 

Supply segment

in order to prepare the necessary framework for 

business resilience.

implementing initiatives that contribute to achieving 

that there are no decision-making or 

operational bottlenecks;

In 2023, the company carried on the strategy from 

the EU’s objective of zero greenhouse gas emissions 

The long-term strategy is designed to position us at 

–  corporate cultural transformation of 

the previous year, focusing on securing its portfolio 

by 2050 and ensuring the long-term resilience of 

the forefront of the national energy transition and 

the organisation, focused on efficiency 

of customers by developing specific measures 

the companies within the Group, in light of potential 

contribute to achieving our 2030 and 2050 targets, 

and performance, ensuring business 

to increase client satisfaction. Also, traditional 

structural changes in the business environment, 

not only responding to today’s challenges but also 

sustainability;

electricity supply offer was enlarged with combined 

arising from climate change.

anticipating the future of the energy sector.

–  retention of highly skilled workforce;

electricity - gas and value-added services 

–  human resources concentration, 

packages.

From a process-oriented culture to a results-

Strategic objectives at Group level include 

development and specialisation;

oriented and customer-centered culture, through 

diversifying renewable energy sources, with a focus 

–  accelerating the adoption of best practices 

In 2023, EFSA continued the implementation of 

leadership and improving employee satisfaction, 

on generation and storage, to contribute to the 

and new technologies, bringing increased 

measures settled in order to transform the company 

we aim to realign the culture with the vision, mission 

transition to a green economy and to offer a variety 

transparency and reduced monitoring 

into an organization capable of successfully 

and core values of the organization to achieve the 

of services such as energy efficiency solutions and 

costs;

responding to current and future challenges of 

strategic objectives proposed in the horizon 2024-

exploring regional growth opportunities.

–  increasing financial and operational 

energy market, including improving the financial 

2030.

performance and keeping within ANRE 

situation, improving NPS, defining a competitive 

We are dedicated to cultivating a culture that 

situations, adaptability is a key element of the long-

Considering the market context and unpredictable 

regulated costs.

commercial program, improving positioning and 

transforming the organization into a flexible and 

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63

agile one.

costs;

Therefore, during 2023, evaluations will be continued 

for the construction of photovoltaic power plant 

at each organizational entity level with the aim of 

assembly works;

•  creation of a structure of qualified personnel 

identifying new measures necessary to improve the 

activity.

Also, as part of priority measures for upgrading and 

adjustment of internal IT systems during 2023, SAP 

ISU implementation project was carried out with 

January 2024 as deadline for migration to the new 

system.

Ethics remains a priority for the organization, as 

a preliminary requirement for the sustainable 

development of the Electrica Group. On medium 

term, it is desired the development of an ethics 

2.3  Outlook 

During 2019-2023, the global energy industry 

support, tax incentives and gas saving and storage 

has undergone significant transformations, and 

initiatives, some of which were also adopted in 

Romania has been directly affected by changes 

Romania. The REPowerEU plan, introduced in May 

at European and national level. One of the most 

2022, aimed to reduce dependence on fossil fuels 

notable developments has been the shift towards 

in Russia and included increasing the target for 

sustainable energy sources, with increasing 

renewables to 45% by 2030.

culture within Electrica Group, by moving from the 

investment in renewable energies such as solar, 

reactive stage to the integrity stage, by internalizing 

wind, hydro and geothermal. In the European 

In the Romanian context, adapting to the energy 

the ethical standards and the values of the 

context, this change has been supported by policies 

crisis and transforming the electricity market 

organization, understanding the ethics role as a 

and regulations adopted to promote the sustainable 

involves sustained efforts to increase the production 

value enhancing factor and providing a permanent 

development of the energy sector.

capacities of net-zero emission technologies and 

Services segment

internal control system which involves the entire 

company’s personnel.

Nationally, this transition has been reflected in 

essential to assess the impact of proposed reforms 

increased investment in renewable energy projects 

to ensure that they are efficient and appropriate for 

ensure the flexibility of the electricity system. It is 

The main development directions of SERV branch for 

the next period are:

•  further development of projects for the 

implementation of new activities: design and 

installation of B2B/B2C photovoltaic power 

plants, reactive energy compensation, power 

supply stations, smart metering solutions;

•  expansion of Electrica Serv’s activity on 

the services market outside the Group and 

consolidation of the business lines for the new 

activities identified, simultaneously with the 

improvement of the already existing activities 

for which the company has accumulated 

experience; 

•  the efficiency of maintenance and repair works 

for electricity distribution and transmission 

installations and investment works in the energy 

sector, with priority being given to compliance 

with the conditions imposed so that the result 

leads to “zero penalties”;

•  providing preventive and corrective 

maintenance services leading to safe and 

efficient electricity supply to consumers; 

•  significantly improve asset management, by 

leasing or selling “non-essential”/”non-core” 

assets;

•  optimising the real estate portfolio by selling 

intra-group assets; 

•  re-alignment of the operational staffing 

structure and reprioritisation of business lines;

•  reduction of administrative overheads, 

production costs, material, services and labour 

The CSR (Corporate Social Responsibility) activites 

such as wind farms and solar farms. The Romanian 

Romania’s specific energy mix.

still remain very important for the Electrica Group, 

government has encouraged this development by 

with multiple key areas being supported, with 

introducing support policies for renewable energies 

As Romanian consumers become more aware of 

hundreds of projects registered annually to benefit 

and measures to improve energy efficiency. In 

rising energy prices, the retail sector (retail sale 

from Electrica’s support. 

addition, technological and digital advances 

of energy) is facing significant transformations. 

have been integrated into industry, and the 

Energy suppliers should support consumers in their 

Also, an important role will be played by the 

implementation of artificial intelligence, Internet 

energy transitions by providing solutions for energy 

optimization of the IT&C support functions, they will 

of Things (IoT) and energy storage solutions have 

efficiency, consumption management and access 

have an increasingly important role for the base 

business lines; IT&C takes over the responsibility 

of capitalizing on the synergies, but also of 

supporting the specific competencies that offer 

become increasingly important in optimizing energy 

to affordable energy. Taking a more sustainable 

production, distribution and consumption processes 

approach and diversifying the offer of products 

nationwide.

and services becomes essential to respond to new 

energy market challenges in the specific national 

strategic advantages to the business units. In this 

Since September 2021, Romania has also felt the 

context.

context, beyond the processes’ digitization and 

their integration in IT platforms, the development 

impact of extremely high prices and significant 

volatility on European electricity markets, a 

Electrica Group operates in a key economic sector 

of smart grids, the smart meters’ integration in the 

phenomenon generated mainly by high natural gas 

and therefore is closely monitoring both the national 

rhythm of their implementation plan, support for the 

costs. This situation has contributed to an energy 

and the international context, in order to make 

operationalization of prosumers etc. are provided 

crisis in Europe, and Russia’s involvement in using 

the best decisions in the following period and for 

in the distribution area. In the supply area, the 

natural gas for political purposes has increased 

addressing the challenges on the short and medium 

development of a customer-friendly interface, the 

pressure. As a result, Romania has intensified its 

term. 

automation of contracting, reporting, and invoicing 

efforts to become energy independent and develop 

processes and data exchange with all Romanian 

its own production capacities, in order to reduce 

The current strategy of the Electrica Group is 

distributors are critical elements supported by IT&C 

dependence on resources from Russia.

built on a set of trends and assumptions, and the 

it is an activator of competitive advantages.

acceleration of digitization and the implementation 

In October 2022, the European Commission 

of Artificial Intelligence (AI) is one of its objectives. 

presented a set of measures to address the 

Thus, the already started efforts to support 

impact of high energy prices by providing revenue 

investments in IT tools and automation to increase 

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efficiency, reduce costs and optimize operations 

the field of energy, ANRE approved by ANRE 

of buildings, lighting, electric appliances, 

electricity market target model, which implies 

through artificial intelligence will continue.

Order no. 129/2022 Methodological norms for 

motor drives, heat pumps etc.); 

the development of Europe’s internal electricity 

Considering the energy policies developed at both 

with the purchase of electricity to cover own 

•  The smart metering implementation will offer 

with future trends and challenges in the energy 

the recognition in tariffs of additional costs 

market, will continue to evolve and be in line 

EU and national level, as well as the international 

technological consumption compared to the 

complex tariffs options to the consumers, 

industry; 

context of the energy markets, the following trends 

costs included in the regulated tariffs; 

detailed information regarding the consumption 

are expected to characterize on medium and long 

profile, which might lead to increased flexibility 

•  Process optimization based on artificial 

term the local electricity market:

•  Regulation (EU) 2022/1854, regarding an 

and demand reduction during peak periods. 

intelligence; 

•  Competition between players on the electricity 

emergency intervention to address the problem 

Thus, the consumers shall be better informed 

supply market in terms of diversifying the 

of high energy prices, provides for a maximum 

and involved in decision-making process, 

•  Using machine learning algorithms to optimize 

portfolio of products offered to customers with 

threshold of 180 Euro/MWh for solar, nuclear, 

as active participants. The smart metering 

production processes and minimize waste; 

a focus on the value-added products offered 

hydro, wind and lignite production, incomes 

implementation pace depends on the 

(especially energy efficiency) and digital 

above this threshold will be collected by the 

implementation calendar adopted at national 

•  Adopting similar AI strategies can optimize 

services offered (mobile applications, invoices 

state; 

and online payments, expanding customer 

level; 

energy production, increase equipment reliability 

and minimize operational expenses.

service through chat solutions); 

•  Electricity distributed generation technologies 

•  The development of the transmission and 

will determine the distribution operators to 

•  In the electricity distribution area, the regulatory 

adapt their processes and strategies regarding 

trend is to provide remuneration to the 

the upgrade and development of the network 

distribution operator considering both the 

and to offer solutions to the independent 

quality of the service, as well as the operational 

producers, considering the appearance of 

costs and efficiency based on comparative 

prosumers, which are active participants in 

analysis between DSOs. An element that affects 

the energy market; in this context, significant 

and will continue to significantly affect the 

investments are necessary in order to improve 

profitability of distribution companies is the 

both the transmission and the distribution 

increase in the purchase price of NL, a situation 

infrastructure. The high price of electricity 

which was partially regulated by the entry into 

in 2022 and the uncertainty of keeping the 

force of: (i) Government Emergency Ordinance 

electricity price cap in place has increased the 

no. 118/2021 regarding the establishment of a 

interest of consumers to produce part of their 

compensation scheme for the consumption 

energy independently, which has accelerated 

of electricity and natural gas for the cold 

the trend. The significant reduction in the cost 

season 2021-2022, (ii)Government Emergency 

of photovoltaic technologies represents a 

Ordinance no. 27/2022 on the measures 

development opportunity for smaller-scale 

applicable to final customers in the electricity 

generation projects, especially in the domestic 

and natural gas market between 1 April 2022 and 

area; 

31 March 2023, as well as for the modification 

and completion of some normative acts in the 

•  On the long term, full electric vehicles, light 

energy field, (iii) EMERGENCY ORDINANCE no. 

commercial vehicles and electrification 

119/2022 for the amendment and completion 

of railways are expected to increase the 

of GEO no. 27/2022 regarding the measures 

consumption of electricity in the transportation 

applicable to end customers in the electricity 

sector; 

and natural gas market in the period 1 April 2022 

- 31 March 2023, as well as for the modification 

•  Future development of technologies will support 

and completion of some normative acts in the 

energy efficiency policies such as:

field of energy, (iv) EMERGENCY ORDINANCE no. 

153/2022 for the amendment and completion 

of GEO no. 27/2022 and the amendment of GEO 

no. 119/2022, as well as for the modification 

and completion of some normative acts in 

–  Development of transmission and 

distribution networks, including smart grid 

and smart metering;

–  End-use energy efficiency (thermal integrity 

distribution infrastructure and long-distance 

interconnection will become a necessity. The 

Table 7. The key drivers of changes in the electricity market

Key drivers

Description

Impact on

GDP evolution 
and industry 
structure

The economic growth is a determinant factor of electricity demand. Although 
there is not a one-to-one relationship between GDP growth rate and electricity 
demand growth rate, there is a positive correlation, mainly between the 
industrial demand for electricity and economic growth. In the future, household 
and industrial electricity demand will also be influenced by energy efficiency 
policies.
Also the evolution of the number/quantity of energy produced/injected by 
consumers will determine differences between the trend in the amount of 
energy distributed and the trend in GDP.

GDP evolution 
and industry 
structure

Demographic 
evolution and 
technology 
development

In contrast with the demographic decline recorded at EU and Romanian 
level, the electricity consumption is positively impacted by the changes in 
the consumer behaviour and the increase in urbanization. For example, the 
massive increase in the number of connected devices and implicitly, in a less 
accelerated manner, in the electricity consumption, maintains the increasing 
trend of consumption.

Electricity 
consumption

Russia’s invasion of Ukraine has massively disrupted Europe and global 
energy markets, prompting the urgent need to identify a plan to stop the EU’s 
dependence on imports of fossil fuels from Russia.

International 
geopolitical 
context

REPower EU is the EU’s response plan to this context, a plan for the period 2022-
2030. The REPower EU plan sets out a series of measures to rapidly reduce 
energy and accelerate the green transition while increasing the resilience of 
the EU energy system.

Electricity prices

The plan targets 4 areas: Saving, diversifying sources, accelerating the shift to 
clean energy, investment and reform.

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Key drivers

Description

Impact on

Key drivers

Description

Impact on

The evolution of 
the electricity 
price in the 
market

Energy is an indispensable resource for both the population and the economic 
operators. Thus, the sharp increase in energy prices is reflected on the 
dynamics of consumer prices, respectively on the generalized increase in 
inflation rates.

The transactions concluded on the centralized platforms exceeded the 
threshold of 2,500 RON/MWh for the AN product and 4,000 RON/MWh for the 
short-term products related to the winter period, and on the DAM the weighted 
average price doubled compared to the beginning of 2022. The distribution 
operators purchase purchased energy for NL at a price four times higher than 
the ex-ante approved price in the distribution tariffs. In the period 1 January 
2023-31 March 2025, the mechanism for the centralized purchase of electricity 
is established, and OPCOM is designated as the sole purchaser.

Electricity prices 
and inflation 
rate

Technological 
development

Smart networks and smart meters will create benefits for the end consumers, 
distribution operators and suppliers in terms of energy efficiency, resource 
optimization and network operation, implementation of demand response 
etc. It is necessary to prepare the networks and to integrate the distributed 
resources (storage solutions, micro-grids, local production, electric machines, 
etc.), also considering the management of their impact.

Electricity 
prices and 
consumption

Electricity prices

Increase in 
environmental 
awareness

Romania has adopted the strategy “Europe 2020” - program 20-20-20, aiming 
to reduce greenhouse gas emissions, improve energy efficiency and raise the 
share of renewable energy. Moreover, the 2030 Framework provides even more 
ambitious targets and therefore more efforts are needed from governments 
and market players to achieve them. 

Renewable energy is the cheapest and cleanest energy available and can 
be generated domestically, reducing our need for energy imports. Energy 
efficiency and the use of renewable energy sources can enable industry to 
reduce the impact of market evolution. Energy saving is the cheapest, safest 
and cleanest way to reduce the repercussions of the trend in the energy 
market. In addition to energy efficiency measures, individual actions have a 
positive impact on energy bills (consumption and price level).

Electricity 
prices and 
consumption, 
regulatory 
framework

Changes in 
regulatory 
framework

The approved schemes to support customers in payment of electricity/
natural gas bills, with initial application between November 1, 2021 and March 
31, 2022, through which price caps, compensations for household customers 
and exemptions for SMEs were granted, later extended for the period April 1, 
2022 - March 31, 2025, by which the prices applicable to final customers were 
capped, assume ex post recovery of amounts related to these schemes by 
suppliers, risking affecting supply activity in case of delays in settling the 
amounts incurred by suppliers or of non-recovery in the situation where the 
costs recorded in the balancing market exceed the purchase costs by more 
than 5% or in the situation where the average purchase price exceeds the cap 
of 1,300 RON/MWh/ or 900 RON/ MWh after the publication of Law approving 
GEO 153/2022 in the Official Monitor.
Also, as a result of entering into force of the new Electricity and Natural Gas 
Supply Activity Performance Standard, more demanding requirements are 
applied regarding the quality of supply service and responsibility towards 
customers, including through the obligation of automatic payment of 
compensations to all customers categories, in case of non-compliance with 
standard indicators.

Since 2020, the regulatory framework for connections has changed 
repeatedly, the connection process being carried out successively on the 
basis of the following ANRE Orders: ANRE Order no. 160/2020 amending and 
supplementing the Regulation on the connection of users to the electricity 
networks of public interest, approved by the Order of the President of the 
National Energy Regulatory Authority no. 59/2013, ANRE Order no. 17/2021 
approving the Procedure for the connection to the public interest electricity 
networks of consumption sites belonging to non-household end-users through 
connection installations with lengths up to 2 meters. 500 metres and household 
customers, ANRE Order no. 18/2022 approving the Procedure for the connection 
to the low voltage public interest electricity networks of consumption sites 
belonging to household customers, ANRE Order no. 17/2022 amending and 
supplementing the Regulation on the connection of users to the public interest 
electricity networks, approved by the Order of the President of the National 
Energy Regulatory Authority no. 59/2013, ANRE Order no. 19/2022 approving the 
Procedure for the connection of consumption and production sites belonging 
to prosumers to public interest electricity networks, ANRE Order no. 4/2023 
amending and supplementing some orders of the President of the National 
Energy Regulatory Authority in the field of connection of users to the public 
interest electricity network.

In 2023, the free connection of irrigation equipment and appliances was 
introduced for non-household customers with CAEN code 01 Agriculture, 
hunting and related services and CAEN code 10 Food industry, for connection 
installations with a length of less than 2.5 km, the financing of the network 
difference exceeding 2.5 km is provided by non-household customers.

Also, as a result of the entry into force of the new Performance Standard for the 
electricity distribution activity, more demanding requirements on the technical 
quality of the distribution service and increased demands on the monitoring of 
technical quality parameters are applied.

At the same time, the changes regarding prosumers such as: the rules 
for selling electricity produced by prosumers, respectively quantitative 
compensation for customers with installed power of up to 200 kW and financial 
compensation for customers with installed power between 200 and 400 
kW, generated a flow of new requests for this customer segment, but also 
important changes to the invoicing IT system for this customer category.

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2.4  Key factors, directions and significant market trends  
affecting the operational results of Electrica Group

The significant increase in renewable energy production will generate a surplus in certain hourly segments, 

according to the production and consumption curve for the period 2022-2032. Although Romania’s energy 

efficiency has decreased in recent years, our country has a significant potential to improve indicators in this 

area.

In 2023, a series of challenges and opportunities of the electricity market have left their mark on the 

Electrica group:

•  Current distribution networks have an old infrastructure, with performance indicators (SAIDI, SAIFI) below 

the European average. The Green Deal will put additional pressure on networks, with tens of billions of 

euros of investment expected at European level; 

•  Network flexibility, achieved through storage, distributed generation aggregation and digitalised 

planning with artificial intelligence, can significantly reduce costs, by more than EUR 29 bn. annually at 

European level; 

•  Pressure on tariffs and competition in supply and generation markets require permanent cost control; 

•  ESG has become an essential component of the corporate agenda in response to stakeholder 

electricity production from renewable sources (40% by 2030);

•  The energy mix in Romania changes significantly in the medium and long term, mainly by increasing the 

production capacity of electricity from renewable sources;

•  “Democratization of energy” brings about important changes in the way electricity is transmitted and 

distributed;

•  The energy market will continue to register a production deficit both due to the accelerated growth 

in demand (caused by the electrification of transport and, partially, heating systems) and due to the 

environmental limitations to which energy production (European, regional, national) has committed;

•  The supply segment experiences unpredictable developments, with very frequent changes in incident 

legislation, which (at least so far) diminishes competition and relativizes any planning scenario;

•  Geopolitical developments in the region will remain at their peak in 2022, but we do not exclude the 

possibility of escalations;

•  Financial markets will allow access to advantageous funding sources to support companies’ investment 

programs, but companies’ involvement in ESG practices will play a role in the success of financing.

The IT&C activities within the group were reviewed and re-focused on the key areas of business support 

in accordance with the Group Strategy. Subsequently, the structure and projects in the subsidiaries were 

re-reviewed and accelerated to achieve the optimal level of support for electricity distribution and supply 

activities, including automation projects, digitization, friendly and simplified interface with external and 

internal customers. Emerging technologies, with an impact on the resilience of IT&C services, are constantly 

evaluated and monitored in the Group and tested in pilot mode in Electrica SA.

Cyber Security:

expectations; ESG can be a source of increasing company value through staff engagement, reduced 

•  Impact: Increasing cyber threats to critical infrastructure in the energy sector can affect the operations 

regulatory risks, lower capital costs and financing; 

•  Robust ESG strategy must cover topics that are holistically relevant and tailored to industry specificities; 

•  In order to fully capitalize on the opportunities offered by the energy transition, Electrica must go beyond 

ESG statements and reporting and implement concrete initiatives with significant impact.

and security of networks and systems.

•  Directions:

–  Development and implementation of advanced cyber security measures, including protection 

solutions against sophisticated attacks.

–  Strengthening capabilities for monitoring and responding to cyber incidents.

Electrica has the potential to become a leader in Romania’s energy transition by implementing an 

Digitization and Automationa:

ambitious strategy that takes into account the challenges and opportunities outlined above.

At the same time, digitization generates benefits on multiple levels: 

but also introduce new risks and dependence on IT systems.

•  Impact: The integration of digital technologies and the automation of processes can optimize efficiency, 

•  Improving customer value

•  Cost reduction

•  Efficiency

•  New sources of income

•  Reduced risks

•  Directions:

–  Implementing automation systems to improve the efficiency of operations and reduce human 

error.

–  Careful management of risks associated with increased reliance on digital technologies.

The end of 2023 meant the approval of a new corporate strategy, and the most important assumptions we 

Directions and Trends:

looked at were the followinge:

•  The European Union maintains targets for reducing greenhouse gas emissions from green energy 

production;

•  Romania’s GDP will have an upward and stable evolution in the medium term, even if some slowdown is 

possible in the near period of industrial production;

•  Romania will remain committed to achieving the objectives of the European Green Deal, focusing 

on reducing greenhouse gas emissions (55% reduction compared to 1990 by 2030) and increasing 

1.   The Internet of Things (IoT) in Smart Energy:

•  Impact: Increased connectivity through IoT can provide real-time data

•  Trends:

–  Expanding the use of IoT devices for monitoring and controlling energy infrastructure equipment.

–  Implementing security protocols to protect IoT devices.

2.  Predictive Analysis and Artificial Intelligence:

•  Impact: The use of predictive analytics and artificial intelligence (AI) can improve decision-making and 

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optimize operations but requires the management of sensitive data..

power consumption from the station or for the development of electricity storage facilities and the way to 

•  Trends:

integrate flexibility services. 

–  Integrating AI solutions to effectively anticipate and manage energy demand.

–  Using machine learning algorithms to identify and prevent security incidents.

3.   Smart Grids and Microgridd:

•  Impact: The development of smart grids and microgrids can improve the distribution and efficient use 

of energy.

•  Trends:

–  Implementation of automation technologies in smart grids to improve energy flow management.

–  Focus on cyber security to protect communications and control in smart grids.

4.  Blockchainin Energy:

•  Impact: Blockchain technology can ensure transparency, safety and efficient management of energy 

transactions.

•  Trends:

–  Development of blockchain solutions to facilitate decentralized energy transactions.

–  Using blockchain to ensure the authenticity and integrity of energy data.

5.   Green Energy and Sustainable Technology:

•  Impact:Integration of renewable energy sources can optimize energy distribution and consumption.

•  Trends:

–  Expansion of energy storage capacities to handle fluctuations generated by renewable sources.

–  Use of sustainable technologies to reduce the carbon footprint of the IT infrastructure.

These directions and trends reflect the continued evolution of technology and its impact on the energy 

sector, highlighting the need for an integrated approach that takes into account both the advantages and 

challenges associated with emerging technologies.

In the distribution segment, the focus is on operational efficiency, by reducing technological and 

commercial losses, optimizing internal processes, ensuring an optimal level of resources used, on user 

orientation and ensuring their satisfaction, by improving the network access and the quality of service, on 

development of smart grid technologies and cost recovery. Increasing the operational performance will 

lead to a positive impact on the users’ experience, ensuring continuous supply security, at high quality 

and high standard interactions with our staff. In parallel, exploiting the significant optimization potential 

and reducing losses by streamlining the distribution operators’ activities are key factors in the optimal 

allocation of resources, so important in this regulatory period.

The year 2024 was approved by ANRE as the transition period towards the fifth regulatory period, the DEER 

distribution tariffs for the year 2024 are transitory and established on the basis of a single income, the NL 

target being unique for the total DEER. In the year 2024 distribution operators will submit to ANRE approval 

the data for substantiating the projection of revenues and profitability for the fifth regulatory period 2025-

2029.

The supply segment will focus on diversifying its activity through offers and services adapted to customer 

needs, on operational efficiency through optimized electricity sales and purchase processes, and on 

orientation towards customers and maximization of their satisfaction. The goal is to increase the supply 

segment, offer value-added solutions (products and services) and digitize specific operations and 

processes.

Taking into consideration that other factors that are not available at the date of this report (e.g. regulations 

and legislation being amended) or that have not been presented above, or that have not been taken into 

account by the Group, may occur and can have a significant impact on Group’s strategy implementation 

and evolution.

The regulatory framework has undergone significant changes over the last decade, including liberalisation 

of electricity and gas markets, unbundling of supply and distribution activities, implementation of the 

support scheme for renewable energy, support for electricity prosumers and end-customer price caps.

In 2023, the electricity market was completely liberalized for all customer categories and the price was set 

by suppliers through free market mechanisms, both for universal service offers and for offers related to 

competitive market, in compliance with price capping invoicing rules.

Regarding electricity and natural gas last-resort supply, a monthly rotation system was introduced for the 

Supplier of Last Resort nomination, which automatically takes over customers from all areas of the country. 

For this purpose, the Suppliers of Last Resort list is established according to the market share, each Supplier 

of Last Resort in the list being nominated by turn, monthly, to automatically take over the customers with 

no supplier. Thus, in 2023, EFSA was the nominated Supplier of Last Resort for electricity in May and October, 

and for natural gas in April and November 2023.

ANRE’ s development of the online platform for changing electricity and natural gas supplier (OPCS) helps 

energy market in Romania to achieve the objective provided by the European legislation regarding the 

change of supplier in 24 hours, starting with 2026.

Regarding the legislation related to prosumers, the change of electric power installed level in power plants 

from renewable energy sources belonging to prosumers, from 100 kW to 400 kW per place of consumption 

and the introduction of quantitative compensation led to an increase in the number of prosumers, which 

One of the main factors influencing the strategic decisions for the Distribution area is represented by the 

led to an increase of 185% in 2023 compared to 2022.

trend of energy market prices which negatively impacts in a significant way the cost of energy acquisition 

for network losses, with a significant negative impact over profitability if the method of capitalizing on 

the additional costs of the procurement of electricity for the NL or the mechanism for the centralized 

Just as importantly, in 2023 the New Regulation for Electricity Supply to Final Customers entered into force, 

approved by ANRE Order no. 5/2023, which triggered various innovations that had to be implemented in the 

procurement by OPCOM of energy for the NL does not lead to the improvement of the results. 

electricity supply activity.

An important factor is the alignment of strategic decisions with the 10-year development plan which 

was developed by DEER to be approved by ANRE, after public consultation with all stakeholders, and 

that includes both investment works for the production of energy from renewable sources for NL and the 

As part of price increase on electricity and natural gas markets at international and national level, as well 

as the effects caused by these increases for the Romania’ s population, a series of support schemes for 

electricity/natural gas customers are to apply, through the effect of GEO no. 27/2022 with the respective 

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changes and additions. Considering the implementation method of these schemes and the settlement 

•  Acceleration and optimization of the implemented digitization and development of synergies 

mechanism of amounts granted as support to clients, ex post from the state budget to electricity suppliers, 

within national supplier change platform, by adapting and homogenizing processes to optimize the 

they are generating constraints in terms of cash flow, and uncertainties regarding the full recovery of the 

relationship with clients;

respective amounts by suppliers.

•  Adapting to internal context created by liberalization of energy prices, as well as to the international one 

In this context, EFSA has adapted its medium and long-term strategy in order to manage the impact of 

•  Support measures granted to both household consumers and non-households;

these measures on company’s activities in a responsible and sustainable manner in the situation of a 

•  Maximizing the results obtained following the development of partnership relations in the dynamic 

regulatory framework that has seen numerous successive and high-impact changes in the recent period.

context created by liberalization.

causing supply fluctuations;

 The evolution of acquisition costs

2023 was characterized by an extremely low liquidity on gross market generated by the implementation at 

the end of 2022 of some measures in order to reduce electricity and natural gas price, GEO 27, GEO 119 and 

GEO 153, respectively.

New regulations were introduced, as follows:

•  The introduction of Centralized Electricity Purchase Mechanism (CEPM);

•  Capping the selling price on retail market for certain categories of end customers;

•  Mechanisms for recognizing the cost of acquisition achieved;

•  Overtaxing producers/traders on income obtained from the sale of electricity, if the average price 

exceeds 450 RON/MWh;

•  Limiting the profit from the wholesale of energy and natural gas to 2%, the difference set to be paid to 

the energy transition fund;

•  Limiting electricity exports;

•  Establishing the maximum value of the acquisition price recognized by suppliers, for energy billed to 

capped customers.

The average trading price of energy in the Day Ahead Market, in 2023, recorded a decrease of 

approximately 61% from 1,306.61 RON/MWh average price recorded in 2022 to 510.63 RON/MWh.

Over-taxation of the income obtained from energy sold by producers/traders as well as the obligation of 

large producers to sell the energy produced exclusively through CEPM resulted in a reduced number of 

transactions on the gross market.

For natural gas, the transaction price on the spot market decreased in 2023 by approximately 65.5% 

compared to the transaction price achieved in 2022, from 574.4 RON/MWh to 198.3 RON/MWh

Under these circumstances, the market low liquidity as a result of Centralized Electricity Purchase 

Mechanism introduction, the unpredictability created by the legislative framework as well as the limitations 

established by the government regarding the acquisition/sale prices of electricity and natural gas, it is 

difficult to forecast the evolution of wholesale electricity and natural gas market in 2024. In absence of 

major investments in new production and storage capacities but also of maintaining a reduced demand 

from consumers, it is estimated that prices will stabilize and be maintained at a level similar to those 

achieved in 2023.

The impact on customers

The impact on clients in the dynamic domestic and international context:

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3. ELECTRICA ON THE 
CAPITAL MARKETS

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77

3.1  Ownership structure 

Until July 2014, the Romanian State, through the Ministry of Economy, Energy and Business Environment, was 

the sole shareholder of ELSA. As of 4 July 2014, after the Initial Public Offering, the Company’s shares are 

listed on the Bucharest Stock Exchange (BSE – ticker EL), and the Global Depositary Receipts are listed on the 

London Stock Exchange (LSE – ticker ELSA). 

Subsequently, a secondary public offer took place, which ended on 3 December 2019, during which a total 

number of 208,554 new shares were subscribed, with a nominal value of RON 10 and a total nominal value of 

RON 2,085,540. 

As of 31 December 2023, the ownership structure according to the records of Depozitarul Central (the 

Romanian Central Depository) is presented below.

Table 8. Ownership structure

Shareholder

Number of 

shares

Stake held

(% of the share 

capital)

Percent of 

voting rights (%)

ELSA the right to receive dividends.

Figure 24: Ownership structure as of 31 March 2024

. 7 0 %

7

N I A   3

A

M

O

                                            R

THER LE G
    O

E R S O NS 40.57%

L  P

A

        R

O

M

ANIAN STA T E   4 8 . 7

7 %

S   4 . 9

C

O

O

T

U

H

2
.

N

E

T

R

8

7

R

I
E

%

S

N

O

S

R

E

L   P

A

U

D I V I D

I N

B E R D   ( U K )   3 . 0 1 %
ELECTRICA S.A 1.99%
BNY MELLON DRS (LSE) 0.58%

Shareholder

No. of Shares

Percentage of 
share capital (%)

Percentage of 
shares with 
voting right (%)

%

9

Romanian State through the Ministry of Energy

169.046.299

48.7948%

49.7850%

European Bank for Reconstruction and Development (EBRD)

10.423.457

3.0087%

3.0698%

Electrica

6.890.593

1.9890%

0%

Bank of New York Mellon - GDRs

2.010.808

0.5804%

0.5922%

Other legal persons

Individual persons

Total

140.547.720

40.5687%

41.3920%

17.524.720

5.0585%

5.1611%

346.443.597

100.00%

100.00%

The Romanian State, through the Ministry 

Energy, Bucharest, Romania

169,046,299

48.7948%

49.7850%

Source: Depozitarul Central, Electrica 

The European Bank for Reconstruction and 

17,355,272

5.0096%

5.1112%

Development

Electrica SA

6,890,593

1.9890%

-

BNY MELLON DRS, New York, USA

2,060,808

0.5948%

0.6069%

Other legal entities*

131,281,205

37.8940%

38.6629%

At 31 March 2024, ELSA’s shares were owned by a total of 13,637 shareholders, of which 252 legal entities 

and 13,385 individuals from 30 countries. 93.49% of the total number of shares (323,901,544 shares) were 

owned by investors with residence in Romania. Thus, foreign shareholders held 6.51% of the share capital 

(22,542,053 shares), the largest weight being represented by European citizens. Shareholders in the United 

Kingdom and Ireland held 3.38% of share capital, while those in the USA held 2.05%, in this category being 

included also the GDRs holders.

19,809,420

5.7179%

5.8340%

3.2  Shares evolution on BSE and Global depository receipts  

Individuals

TOTAL

Source: Depozitarul Central, Electrica 
Note 1: Shares with voting rights - 339,553,004, representing the total number of shares (346,443,597) without the number of own shares held 
by Electrica (6,890,593), for which the voting right is suspended
* Paval Holding, NN Group NV and Allianz SE hold, directly or indirectly, between 5% and 10% of the total number of shares with voting rights

346,443,597 

100.0000%

100.0000%

(GDRs) evolution on LSE

3.2.1  BSE shares:

ELSA’s shares are included in several BSE indices, including the BET index (the reference index for the 

Romanian capital market reflecting the performance of the most traded companies on the BSE’s regulated 

market), as well as in the BET-NG index (the sectorial index that reflects the evolution of the companies 

The shares presented to be held by the Bank of New York Mellon represent the global depositary receipts 

listed on BSE’s regulated market having as main activity energy and related utilities).

(GDRs) owned by ELSA shareholders that are traded on the London Stock Exchange (LSE). A global 

depositary receipt represents four shares. The Bank of New York Mellon is the depositary bank for these 

Between 4 July 2014 - 31 December 2023, ELSA’s shares recorded a minimum price of RON 6.10 (29 

securities.  

September 2022) and a maximum price of RON 14.96 (12 May 2017), therefore the weighted average price 

was RON 11.5.

Following the stabilization process after the June 2014 IPO, ELSA owns 6,890,593 of its shares, representing 

1.989% of the total share capital at 31 December 2022, with suspended voting rights, which does not entitle 

The gross dividends per share granted by ELSA in this period reached a cumulative value of RON 5.7995. 

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Thus, the aggregate yield generated by ELSA’s shares (along with dividends) from the IPO and until the end 

Table 9. BSE Shares and Global Depositary Receipts (GDRs) on LSE

of 2022 was 57.08%, of which 4.36% from share evolution and +52.72% from dividend yield.

From the IPO dated 4 July 2014 until the end of 2021, ELSA shares attracted a RON 4.317 bn. liquidity on BSE, 

with a daily average of RON 1.79 mn. During this period of about 9.5 years, 375.42 mn ELSA shares have been 

traded (including DEAL transactions), representing 108.4% of the share capital and 110.6% of the voting rights 

(total shares without ELSA’s own shares). Thus, the average daily turnover during this period on BSE was of 

156,099 shares.

The gross dividend per share granted by ELSA in 2023 (for 2022) was RON 0.1178, below those granted in the 

previous years, with a yield of 1.4% (computed at the ex-date closing price of RON 8.57 from 30 May 2023).

During 2023, ELSA shares attracted a liquidity of RON 247.1 mn. on BSE, with a daily average of RON 1 mn., 

increasing by 71% compared to 2022, the 10th in top trading data on BSE. The volume of shares traded was 

26 mn, increasing by 50% compared to 2022, so the daily average volume was 105,060 shares. The total 

volume of shares traded in 2023 accounted for 7.5% of the share capital. 

In order to support the liquidity of its listed shares, ELSA concluded at the end of 2022 two Market Making 

services for Issuer agreements, with SSIF BRK Financial Group S.A. and WOOD & Company Financial Services, 

a.s. Praga, for two years, starting 1 January 2023, with the main purpose of accessing the FTSE Russell 

international indices.

Thus, in 2023, Electrica shares met the liquidity criteria according to FTSE Russell methodology, respectively 

they recorded a median monthly volume above the minimum threshold of 76,576 shares (0.05% of free-

float) in 10 months out of the 12 of the year, and therefore, considering that the capitalization criteria was 

easily met, Electrica met all the conditions, according to internal calculations, for accessing the FTSE Russell 

Indices series.

The official announcement regarding the inclusion of Electrica shares in the FTSE Russell Indices was made 

on 27 February 2024, and the official inclusion in the FTSE Russell indices to take place at the meeting of 18 

March 2024. A statement in this regard was issued by Electrica on 28 February 2023 (https://www.electrica.

ro/wp-content/uploads/2024/02/ELSA_EN_Announcement_Inclusion-in-FTSE-Russell-indexes_28Feb2024_

LSE.pdf). 

3.2.2 Global Depositary Receipts (GDRs) on the LSE

The GDRs’ weight in ELSA’s total share capital diminished during the period following the Initial Public 

Offering, reaching a level of 0.59% at the end of 2023, compared to 10.17% at 4 July 2014.

The maximum price reached by the GDRs was USD 15.3, in September 2014 and the minimum price was USD 

5.25 on 9 November 2022. Subsequently, the GDRs’ price followed a fluctuating trend. During 2023 the trend 

was a upward, ending 2023 at a price of USD 9.90, increasing by 68% compared to the end of 2022 (USD 

5.90).

Indicator

4 Jul 2014 -

31 Dec 2023

2023

2022

Variation

2023 vs 2022

Bucharest Stock Exchange

Total liquidity (RON)

Average daily liquidity (RON)

Turnover (no. shares)

4,316,702,362 

247,111,195 

144,828,599 

-33.33%

1,794,884 

996,416 

574,717 

-33.33%

375,417,612 

26,054,922 

17,327,927 

-1.8%

Average daily turnover (no. shares)

156,099 

105,060 

68,762 

-1.8%

Market cap. - end of period (RON)

3,977,172,493

3,977,172,493

2,802,728,700 

-19.4%

Minimum price (RON)

Maximum price (RON)

Average price (RON)

6.10 

8.01 

6.10 

-37.8%

14.96 

11.56 

11.02 

-21.8%

11.50 

9.48 

8.36 

-32.1%

Price at the end of period (RON)

11.48 

11.48 

8.09 

-19.4%

ELSA Share price performance (%)

4.36%

41.9%

-19.4%

BET performance (%)

BET-NG performance (%)

Dividend(s)

ELSA’s Dividend(s) yield1 (%)

BET-TR Dividend(s) yield 1 (%)

-

-

-

119.1%

31.8%

-10.70%

58.8%

31.4%

-4.98%

5.7995

0.1178

0.45

-38.4%

52.72%

1.46%

4.48%

-22.9%

129.80%

8.15%

8.85%

30.1%

ELSA’s Adjusted price performance (%)2

25.20%

43.36%

-14.94%

BET-TR performance (%)

314.4%

39.9%

-1.85%

-

-

ELSA’s GDRs liquidity (USD)

162,825,743

229,723

427,357

-3.7%

London Stock Exchange

In the period since the IPO and until the end of 2023, 12.71 mn. GDRs have been traded, out of which 28,787 

GDRs in 2023, dropping by 48% compared to 2022 (55,452).

ELSA’s GDRs turnover (no. of GDRs)

12,710,816

28,787

55,452

54.6%

A summary of the previous mentioned aspects is found in following table. 

GDRs price performance (%)

Sursa: BVB, Electrica

-27.5%

67.8%

-34.44%

-

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Figure 25: Evolution of the adjusted closing price of ELSA’s shares vs BET-TR index during  

were exceeded, 10 RON (nominal value) and 11 RON (IPO price), unreached for about 2 years.

2023 and January 2024

EL:          +66.10%
BET-TR: +55.72%

43.36

39.93

3.00

ia n.- 2 3

fe b.-2 3

a r.- 2 3

m

a p r.- 2 3

ai-2 3

m

iu n.-2 3

iul.-2 3

a u g.-2 3

s e p t.- 2 3

o ct.-2 3

n o v.- 2 3

d e c.-2 3

ia n.- 2 4

fe b.-2 4

a r.- 2 4

m

Sursa: BVB, Electrica

BET-TR

Electrica adjusted price with  dividends

1 Computed at the previous periods’ last day close price (for comparability)
2 Computed together with dividend(s) granted during the analyzed period 

66.10

70.00

60.00

50.00

55.72

40.00

30.00

20.00

10.00

0.00

During 2023, the price of Electrica’s shares gradually recovered from the ground lost in 2022, benefiting both 

from the favorable market context - which recorded an impressive yield -, as well as from the financial 

results that continue to consolidate, on the background of the stabilization of prices on the energy market 

and of MACEE implementation. Two more delicate moments occurred, one in June, on the basis of the 

launch of the Public Offer of Hidroelectrica, an event that shifted the attention of many players from trading 

certain shares, including Electrica, and another in October, when the market reached an annual minimum 

of interest investors, on the background of the uncertainties related to the key interest rate of several 

central banks, the discussions regarding the future fiscal measures in the foundation of the budget for 2024, 

etc., these two months being the only ones in which the Electrica shares did not meet the liquidity criteria 

according to the FTSE Russell methodology.

Thus, if in the first five months of 2023 Electrica shares recorded an aggregate return above the market 

(BET-TR), from June to November, although they continued to have a consistent appreciation of 20%-30%, 

this was below that of the market, the gap with the market increasing in October to around 10 percentage 

points, and in November to 15 percentage points.

The month of December came instead with an impressive interest of investors for Electrica shares, being 

almost the best month in the history of Electrica on the BSE: 1) the highest monthly return was recorded, over 

17%, which contributed to the doubling of the aggregate return since the beginning of the year, from 22.35% 

(at the end of November) to 43.36% (at the end of December); 2) Electrica shares recovered the entire gap 

of 15 percentage points compared to the market (BET-TR) existing at the end of November, managing to 

close even above the market, with 3.4 percentage points (43.36% vs 39.93% - see the previous graph); 3) 

have met the liquidity criteria according to FTSE Russell for the 10th month out of the 12 of the year, which is 

equivalent to meeting all the conditions for entering the FTSE Russell indices in 2024; 4) the highest turnover 

of Electrica shares in the last 3.5 years was recorded, over 5.93 mn. shares; 5) two psychological thresholds 

Figure 26: Monthly trading volume and weighted average monthly closing price of shares on BSE (in RON) 

and GDRs on LSE (in USD) during 2023 and January 2024

 14,000,000

 12,000,000

 10,000,000

 8,000,000

 6,000,000

 4,000,000

8.44 

7.00 

 2,000,000

1,429,127

2,477,762

1,812,392

1,145,678

2,771,782

1,640,284

1,901,038

1,153,818

889,958

837,703

5,929,147

4,066,233

4,407,763

3,134,591

4,000

14,588

0

0

40

496

15,104

13,760

0

0

51,280

15,880

12,400

1,000

35,224

 -

ia n.- 2 3

fe b.-2 3

a r.- 2 3

m

a p r.- 2 3

ai-2 3

m

iu n.-2 3

iul.-2 3

a u g.-2 3

s e p t.- 2 3

o ct.-2 3

n o v.- 2 3

d e c.-2 3

ia n.- 2 4

fe b.-2 4

a r.- 2 4

m

 BSE -  Shares -  Mo nthly volume

 LSE  - GDRs - Monthly volume (shares equ iv.)

 BSE -  Shares -  Average monthly clos in g price (RON)

 LSE  - GDRs - Average monthly  clos ing price  (USD)

Source: BSE, LSE, Electrica

12.41 

 12.00

11,603,624

10.54 

 10.00

 8.00

 6.00

 4.00

 2.00

 -

3.3  Investor relations (IR)

Electrica’s management understands that, as 

any investor to be accurately and comprehensively 

a listed company, efficient and transparent 

informed can be found on the company’s website, in 

communication with investors is essential to gain 

the Investors section.

and maintain their trust, thus contributing to the 

company’s long-term success on the financial 

In 2023, with the participation of the entire executive 

market. During 2023, as every year since the listing 

management team of the Electrica Group, four 

in 2014, the management was actively involved in 

teleconferences were organized to present the 

activities dedicated to investors and analysts.

annual, quarterly and half-yearly financial results 

of the Group. The events were broadcast live via 

In order to inform stakeholders fairly, continuously 

webcast, and both the supporting documents 

and transparently, the Investor Relations 

and the recordings and transcripts of the 

department has disseminated numerous current 

teleconferences can be accessed on the company’s 

reports and announcements on the platforms of 

website, in the section Investors > Results and Reports 

the Bucharest Stock Exchange (BSE), the London 

> Presentations and other information.

Stock Exchange (LSE), the Financial Supervisory 

Authority (FSA), as well as on ELSA’s website. All 

ELSA’s management representatives also 

these documents, as well as the data necessary for 

participated in the most important national and 

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international conferences dedicated to investors 

promoted from Small Cap to Mid Cap/Large Cap 

aims to improve the visibility and liquidity of 

All actions undertaken during 2023 as well 

during 2023, interacting directly with dozens of 

and its shares were included in the MSCI Frontier 

companies listed on the capital market, the three 

as plans for the coming years have as main 

investors and analysts, both institutional and 

and MSCI Romania indices.

selected companies benefiting from personalized 

objective the implementation of the best investor 

individual:

advice provided by a team of professional investor 

program, increasing transparency and quality 

•  3 March 2023, WOOD Conference - Romania 

accessing FTSE Russell international indices, and in 

an IR strategy. Thus, during 2023, the company’s 

with a constant concern for retention, attraction 

Investor Day, London, UK

this regard, in order to stimulate investor interest 

investor relations strategy was outlined, in parallel 

and satisfaction of shareholders and investors. 

In 2023, Electrica aimed to meet the criteria for 

relations and communication consultants to achieve 

of communication with investors and analysts, 

•  7-8 September 2023, WOOD-BVB Conference - 

Romania Investor Days - Bucharest, Romania

and increase the liquidity of Electrica shares, and 

with the Corporate Strategy of Electrica Group, 

Evidence of the recognition of these efforts was the 

consequently to meet these criteria, it contracted 

which was approved by the Board of Directors on 14 

positioning in the top of listed companies in terms of 

•  5-8 December 2023, WOOD’s Winter Wonderland 

on the Romanian market, respectively Wood & 

two market makers with experience and results 

December 2023.

transparency and communication in the relationship 

with investors, by obtaining in 2023 the maximum 

EME Conference - Prague, Czech Republic

•  11 December 2023, Quarterly Report, quarterly 

conference organized by Ziare.Com and 

TradeVille for retail investors – Bucharest, 

Romania

During 2023, Electrica’s management organized 

a workshop both physically and online, with its 

shareholders, for consultations and in order to 

provide additional details on topics subject to their 

approval in principle through the EGMS of 23 August 

2023, respectively the merger by ELSA absorption of 

its renewable electricity production subsidiaries. 

Also, Electrica’s management, the investor relations 

team and specialists from within the Electrica Group 

organized during the year multiple workshops, both 

physical and online, with analysts and investors, 

both on company representatives’ initiative and 

at the analysts’ & investors’ proposal, in order to 

provide more details about regulatory, operational, 

financial and strategic aspects. On 23 November 

2023, the entire executive management of Electrica 

participated in such a hybrid event (physical and 

online) dedicated to local analysts. 

In 2023, ELSA continued to be an associate member 

of the Romanian Investor Relations Association 

(ARIR), being involved in its numerous projects. 

In ELSA’s 2019-2023 strategy, updated in April 

2022, one of Electrica’s strategic objectives was to 

increase its market value. In this respect, Electrica 

aimed, among other things, to be included and 

remain in relevant international indices.

In August 2023, Electrica was one of six companies 

Company Financial Services a.s. and BRK Financial 

Also, Electrica continues to partner with the 

grade, 10, for Vektor – Investor communication 

Group. 

Bucharest Stock Exchange (BSE) and supports 

indicator for companies listed in Romania, for the 

its platform BVB Research Hub, which aims to 

third consecutive year.

On 20 December 2023, the company informed its 

increase the visibility of listed companies, attract 

shareholders and investors about the degree of 

investors and analysts, offering the public, especially 

compliance with the criteria of the global index 

individual investors, access to informative and 

provider FTSE Russell, in view of the inclusion, for 

educational materials, tools and analyses through 

the first time, of Electrica (EL) shares in the FTSE 

its online portal, www.bvbresearch.ro. 

Global Equity Index Series (GEIS). Based on the 

internal monitoring, in line with the methodology of 

the global provider FTSE Russell, Electrica’s shares 

met the capitalization criterion throughout 2023 

and also passed the liquidity test (median daily 

trading volumes exceeded 0.05% of the number 

of free float shares) in 10 of the 12 months of 

2023. Thus, according to the methodology and 

thresholds published by FTSE Russell, Electrica 

shares will be included in the FTSE Global All Cap 

Index and, given the capitalization thresholds 

of the FTSE Global Equity Index Series (GEIS) 

published in November 2023, Electrica shares will 

be included in the FTSE Global Mid Cap Index (which 

requires a total capitalization of over USD 570 

mn. An announcement from FTSE Russell officially 

confirming the inclusion of Electrica shares in the 

mentioned indices was made on 27 February 2024, 

and the actual inclusion will be made starting with 

the trading session on 18 March 2024 (https://www.

electrica.ro/wp-content/uploads/2024/02/ELSA_

EN_Announcement_Inclusion-in-FTSE-Russell-

indexes_28Feb2024_LSE.pdf).

During 2023, Electrica was selected to participate 

in the joint programme of the European Bank for 

Reconstruction and Development (EBRD) and the 

Bucharest Stock Exchange (BSE) Investor Relations 

and Liquidity Support Programme (IRLSP), launched 

in Romania at the beginning of 2023. This program 

3.4  Related parties transactions

ELSA has the obligation to report the significant 

December 2022 - RON 199,818,824, on 30 June 2023 

transactions concluded by ELSA or its subsidiaries 

– RON 198,490,436 RON and on 30 September 2023 – 

with related parties, as per art. 108 of law no. 

RON 198,760,627). 

24/2017. „Significant transaction” means any 

transfer of resources, services or obligations, 

The 29 announcements related to these type of 

whether or not it involves the payment of a price, the 

transactions published by ELSA in 2023 and until 

individual or cumulative value of which represents 

17 January 2024 can be found on the company’s 

more than 5% of ELSA’s net assets, according to the 

website, at a https://www.electrica.ro/en/investors/

latest individual financial statements published 

results-and-reports/current-reports-art-108/.

by ELSA (in 2022, there were three references: on 31 

3.5  Dividends policy

ELSA’s dividend policy, updated in May 2022, can be 

Ordinary General Shareholders’ Meeting (OGMS) and 

accessed on the company’s website under section 

the approval of the dividend proposal by the OGMS. 

a https://www.electrica.ro/en/investors/corporate-

The shareholders receive dividends proportionally 

governance/corporate-policies/.

to their share in the company’s paid-up capital. The 

company will pay all dividends in RON.

ELSA’s dividends are distributed from the annual net 

distributable profit based on the annual individual 

Regarding the global deposit receipts that are 

audited financial statements, and/or from other 

traded on the London Stock Exchange, ELSA pays 

items of equity (e.g. retained earnings) set up at the 

dividends to the GDRs issuer proportionally to its 

level of the Company, after their approval by ELSA’s 

holdings. Holders of GDRs will then receive dividends 

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from the GDR issuer, proportionally to their holdings.

as finance income in ELSA’s individual financial 

Figure 28: Gross dividend per share (RON) and 

statements in year N and thus constitute the source 

dividend yield (%))

In selecting a certain dividend pay-out ratio 

of the net result from which ELSA declares and 

according to the dividend policy, the Board of 

subsequently pays dividends to its shareholders in 

Directors takes into consideration the following:

year N+1 (related to the result of year N).

The payment of dividends is subject to the general 

provisions on prescription (by reference also to the 

incidence of the provisions of art. 2554 of the Civil 

Code regarding the extension of the term). Thus, 

the payment of dividends that are not claimed 

within three years from the approved date of their 

payment will be prescribed and they can be kept by 

the Company.

•  Reducing the fluctuations in dividend yield from 

one period to the next, as well as the absolute 

dividend per share value; 

•  Electrica’s investment needs and opportunities;

•  Contributions of non-monetary items to net 

reported profit; 

•  Financial resources available for dividends 

payment as well as Electrica’s indebtedness; 

•  Dividend yield comparable to other listed 

companies in the industry or related sectors.

The dividend distribution rate from the distributable 

profit of the Electrica group subsidiaries will be 

consistent with the dividend policy in force. The 

dividends paid by the Group’s subsidiaries to ELSA 

in year N (related to year N-1 results) are recorded 

3.6  Dividend distribution

Figure 27: Gross dividends distributed (2014-
2022) (RON mn.)

291.6

244.7

251.4 245.4 247.5 246.1 247.9

The dividends1 distributed by ELSA fluctuated in the 
period 2014 - 2022, between RON 39.9 mn. and RON 
291.6 mn., and the dividend payout ratio2 was 96% in 
2014, 100% each year between 2015-2017, 87% in 2018 

(RON 35.57 mn. was distributed to “Others reserves”), 

100% in 2019, 87.5% in 2020 and 50% in 2021 (RON 

152.9 mn. was distributed to “Others reserves”).

152.8

40.0 40.0

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

The dividend payout ratio for 2022 was 174% (RON 

16.97 mn. was distributed from “Others reserves”).

Source: Electrica

6.9%

0.8600

6.1%

0.7217

7.3%

6.8%

5.2%

6.9%

6.0%

5.2%

0.7415 0.7237 0.7300 0.7248 0.7300

The yield of the dividend paid in 2023, for the 2022 

results, recorded a level of 1.4%, the gross dividend 

per share paid in 2023 being RON 0.1178. The 

dividend yield (%) is calculated as Gross dividend 

per share/Closing share price on BSE at ex-date.

0.4500

1.4%

0.1178

0.1178

1.0%

Thus, Electrica offered investors a stable return for 

each year in the period 2014 – 2021, in the range 

5.2% - 7.3%, with the exception of 2022, for which the 

yield and dividend level were affected by the energy 

2014

2015

2016

2017

2018

2019*

2020

2021

2022

2023

crisis.

Source: Electrica

 1  The dividends refer to each financial year indicated and are paid in the following year.

2 The dividend distribution rate is calculated as gross dividends/Net profit distributable on dividends, where Net profit distributable on dividends is net profit 
according to ELSA’s individual financial statements, except for mandatory distributions to legal reserves.

More details about dividends and their distribution can be found on the website:  https://www.electrica.ro/

en/investors/shares-and-shareholders/dividende_en/.

3.7  Own shares

In July 2014, ELSA bought back for price stabilization purposes, 5,206,593 ordinary shares and 421,000 Global 

Depositary Receipts, equivalent of 1,684,000 shares. The total amount paid for acquiring the shares and 

Global Depositary Receipts was RON 75.4 mn.. There were no changes in the number of the treasury shares 

until the date of the report.

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4. CORPORATIVE 
GOVERNANCE IN ELSA

88

89

ELSA confers a great importance to the principles of 

different structures of the company, employees 

the organization and functioning regulations of the 

inside information and market manipulation (Policy 

good corporate governance, considering corporate 

and the organizations that represent their interests, 

Board of Directors and those of its committees. 

regarding Market Abuse). 

governance a key element for the sustainable 

customers and business partners, suppliers, central 

The purpose of this policy is to prevent violations 

business growth and for the enhancement of long-

and local authorities, regulators and capital markets 

ELSA CGC is also a guide on business conduct and 

of the legal provisions regarding the misuse of 

term value for shareholders.

operators etc. 

corporate governance matters for the management 

inside information, by increasing the awareness 

ELSA constantly develops and adapts its corporate 

ELSA’s Code of Corporate Governance presents 

and for the employees of ELSA, as well as for other 

of all persons who possess inside information 

governance practices and model, both at 

primarily the main work methods, attributions and 

stakeholders, and provides information about the 

regarding the obligations, restrictions and sanctions 

standalone, as well as at Group level, so that it 

responsibilities of the management and supervisory 

company’s principles and policies. The corporate 

applicable in case of possession and abusive use of 

can align with the increasingly rigorous capital 

structures of the company, as well as those of the 

policies and documents referred to in ELSA CGC 

inside information or in case of market manipulation 

market requirements and with the best practices 

committees constituted to support these structures 

can be accessed on the company’s website in 

regarding ELSA’s securities.

in corporate governance at European level, and 

to fulfil their responsibilities.

the section Investors > Corporate Governance > 

also for creating opportunities and increase 

ELSA undertook, from the moment of the IPO 

Corporate policies and other documents.

All the owners of financial instruments of the 

competitiveness. 

and admission to trading from July 2014, the 

same type and class issued by ELSA are entitled 

The corporate governance represents the set of 

implementation of a corporate governance 

During 2023 the following corporate documents 

to equal treatment. In order to ensure efficient, 

principles standing at the basis of the governance 

action plan, as part of the framework agreement 

have been revised and published on Electrica’s 

active and transparent communication with its 

framework used for the company’s management 

concluded with the European Bank for 

website: Remuneration Policy for Directors and 

shareholders, within ELSA activates the investor 

and control. Transposed in the internal rules 

Reconstruction and Development. The standards 

Executive Managers – approved at the Electrica 

relations department and related processes have 

and regulations, these principles determine 

and measures provisioned in this plan have been 

OGMS of April 27, 2023, Policy on Organizing and 

been set up to ensure efficient and transparent 

the efficiency and effectiveness of the control 

implemented and continuously monitored. For more 

Running the General Meetings of Shareholders – on 

communication with investors, in compliance 

mechanisms aiming to protect and harmonize the 

details about this Action plan, please see chapter 

17 August 2022, and the Articles of Association – 

with the legal obligations in force, which can be 

interests of all the stakeholders – shareholders, 

4.9.

directors, executive managers, managers of 

4.1  Corporate Governance Code

Effective November 22, 2023.

found in the Investor Relation Corporate Disclosure 

Policy, applicable at ELSA level, available, in the 

In compliance with company’s policies and with the 

updated form, on the company’s website since 25 

procedures of the Code of Ethics and Professional 

August 2020. The company’s rules and procedures 

Conduct, the Audit and Risk Committee ensures that 

that establish the framework for organizing and 

the company’s activity is carried on with honesty 

conducting general meetings of shareholders 

and integrity, including the implementation of the 

are contained in ELSA’s GMS Policy, amended on 

Starting with 2014, ELSA adheres to and applies 

Investors > Corporate Governance.

whistle-blower policy. 

wilfully the provisions of the Corporate Governance 

17 August 2022 and available electronically on 

the company’s website in the sections Investors > 

Code issued by BSE, reviewed periodically. This 

ELSA’s compliance with BSE’s Corporate Governance 

ELSA has implemented a procedure for reporting 

General Meeting of Shareholders and Investors > 

code can be accessed on the BSE’s website at the 

Code is being thoroughly assessed, and as updates 

ethical deviations, irregularities and any other 

Corporate Governance > Corporate policies and 

following address: : https://www.bvb.ro/Regulations/

and developments appear, ELSA promptly reports 

aspects of non-compliance with the law that 

other documents.

Legal Framework/BvbRegulations. 

them to the capital market. The compliance with 

otherwise could cause image and/or commercial 

the provisions of the CGC issued by the BSE is 

prejudice or even involve legal sanctions, thus 

The section dedicated to investors is available on 

In order to ensure high standards of corporate 

presented annually in the Declaration on Corporate 

damaging the prestige and profitability of the 

ELSA’s website by accessing https://www.electrica.

governance, transparency and business integrity, 

Governance “apply or explain” in Chapter 4.8. This 

company. The whistle-blowing reporting system 

ro/en/investors/. Up-to-date essential information, 

ELSA also applies provisions of the LSE’s Corporate 

is also available on the company’s website in the 

which functions according to this procedure, as 

of interest for the investors, can be found in this 

Governance Code. 

section Investors > Corporate Governance > Comply 

well as the procedure itself, are available on ELSA’s 

section, providing access to documents governing 

or Explain.

website, in the Whistleblowing section. 

the company, in accordance with the provision of 

Formally, ELSA adopted the Code of Corporate 

the CGC issued by BSE. This section also contains 

Governance (ELSA CGC) starting with February 2015 

ELSA CGC embeds the general principles and 

Since ELSA’s shares are allowed for trading both on 

the name and contact details of the person who can 

and made it available to all the interested parties on 

conduct rules that set forth and regulate the 

the regulated market managed by Bucharest Stock 

provide, upon request of interested parties, relevant 

ELSA’s website, in the section Investors > Corporate 

corporate values, the responsibilities, the obligations 

Exchange (BSE), as well as on the market managed 

information regarding the activity of the company.

Governance.

and the business conduct of the company.

by the London Stock Exchange (LSE), ELSA is subject 

to the rules imposed by the national and European 

In 2020, the chapter 6 of the CGC ELSA regarding 

ELSA CGC contains the terms of reference and 

laws regarding market abuse prevention and the 

the risk management system was revised; in July 

the main responsibilities of the company’s 

regime applicable to inside information. Thus, ELSA 

2020 the amended ELSA CGC was published on the 

administrative and executive management, as 

has implemented a Policy on preventing the misuse 

company’s website and is available in the section 

they are detailed in ELSA’s Articles of Association, 

of inside information, unauthorized disclosure of 

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4.2  General Meeting of ELSA’s Shareholders

The General Meeting of Shareholders (“GMS”) is 

g.  to decide to file legal actions against the 

the main corporate governance body of ELSA, 

directors, managers as well as financial auditors 

deciding on the items as outlined in the Articles 

for damages they caused to the Company 

of Association. The convening, functioning, voting 

by breaching their obligations towards the 

method, as well as other provisions regarding the 

Company;

GMS are detailed in ELSA’s Articles of Association, 

which is available in electronic format on ELSA’s 

h.  to decide on mortgaging or leasing or closing of 

website: https://www.electrica.ro/en/the-group/

one or more units of the company;

about/constitutive-act/.

Starting with 1 February 2020, ELSA has in place a 

i. 

to appoint and revokes the financial auditor and 

policy on organizing and conducting the general 

to set the minimum term of the financial audit 

meetings of shareholders of the company, which 

contract; 

presents in detail aspects of interest for investors 

regarding the way of organizing and carrying 

j.  approves the Remuneration Policy for Directors 

out the GMS. It was updated in August 2022, it is 

and Managers (appointed by the board of 

extended by the introduction of electronic vote. 

directors);

The policy is available on the company’s website, 

under the section Investors > Corporate Governance 

k.  approves the Remuneration Report for Directors 

> Corporate Policies > Policy on organizing and 

and Managers (appointed by the board of 

running General Meetings of Shareholders.

directors);

ELSA’s ordinary general meeting of the 

l.  approves the overall limit of all Managers’ 

shareholders (OGMS) has the following main duties:

(appointed by the board of directors) 

remuneration and remuneration of Board 

a.  to appoint and revoke the members of 

members;

the Board and establish the level of their 

remuneration and other rights according to the 

m. to carry out any other duties set out by the law.

legal provisions;

b.  to establish the income and expenses budget, 

ELSA’s extraordinary general meeting of the 

to set out the activity schedule;

shareholders (EGMS) shall decide on the following:

exceeds, individually or cumulated, during any 

m. carrying out any bond issuance, as per the 

financial year, 20% of the total fixed assets, 

provisions of art. 10 of the Articles of Association, 

less receivables and rentals of tangible assets, 

or conversion of a category of bonds in a 

for a period of more than one year, whose 

different category or in shares;

individual or cumulative value compared to 

the same co-contractor or persons involved 

n.  approving the conversion of preferential 

or acting in concert exceeds 20% of the total 

and nominative shares from one category to 

value of fixed assets, less receivables at the 

another, according to the law;

date of conclusion of the legal act, as well as 

associations over a period of more than one 

o.  any other amendment to the Articles of 

year, exceeding the same value;

Association;

d.  leases of tangible assets for periods longer than 

p.  approval of the eligibility and independence 

one year, whose individual or cumulated value 

criteria with respect to the Board members;

towards the same co-contractor or involved 

persons or with whom it acts in concert exceeds 

q.  approval of the corporate governance strategy 

20% of the fixed assets value, less receivables 

of the Company, including the corporate 

at the time of entering in the relevant operation, 

governance action plan;

as well as joint ventures in excess of the same 

value and with a duration of over one year;

r.  donations within the limits of the competence 

provided in Appendix 1 to these Articles of 

e.  approving investment projects in which the 

Association; and

Company will be involved in accordance with 

the competence limits provided in Annex 1 to 

s.  approves granting of intragroup loans with a 

these Articles of Association, other than the 

value of more than EUR 50 mn. per operation;

ones provided in the annual investment plan of 

the Company;

t.  any other decision that requires the approval 

of the extraordinary general meeting of the 

f.  approving the issuance and admission 

shareholders.

to trading on a regulated market or on 

a multilateral trading facility of shares, 

depositary certificates, allotment rights or other 

The OGMS is convened at least once a year, within 

similar financial instruments; approving the 

a maximum of four months from the end of the 

competencies delegated to the Board;

financial year. Except for this situation, OGMS and 

c.  to establish the income and expenses budget 

a.  withdrawal of the preference right of 

consolidated at the group level;

shareholders upon subscription of new shares 

g.  changing the legal form;

EGMS are convened as many times as needed, 

being convened by ELSA’s Board of Directors 

whenever necessary for the activity of Electrica 

d.  to discuss, approve or amend the annual 

financial statements according to the reports 

b.  contracting any type of loans, debts or 

submitted by the Board and the financial 

obligations representing a loan, as well as 

issued by the Company;

auditors;

creating real or personal security related to 

these loans, in each case in accordance with 

e.  to approve the profit distribution according to 

the competence limits provided in Annex 1 to the 

the law and to establish the dividend; 

Articles of Association;

f. 

to decide on the management activity of the 

c.  operations regarding the acquisition, alienation, 

directors and on the discharge of liability, in 

exchange or creation of encumbrances over 

accordance with the law; 

fixed assets of the Company whose value 

h.  relocation of the registered office;

Group. The GMS may be convened also, upon the 

i.  changing the main or secondary business 

cumulatively, at least 5% of the share capital. In this 

request of shareholders representing, individually or 

objects;

case, the general meeting of the shareholders shall 

be convened by the Board of Directors within no 

j. 

increasing the share capital, as well as 

more than 30 days and shall meet within no more 

decreasing the share capital, according to the 

than 60 days from the date of receiving the request.

law;

k.  the merger or the separation;

l. 

the dissolution of the Company;

2023 DIRECTORS’ REPORTCORPORATE GOVERNANCE IN ELSA2023 DIRECTORS’ REPORTELECTRICA S.ACORPORATE GOVERNANCE IN ELSAELECTRICA S.A2023 ANNUAL REPORT2023 ANNUAL REPORT 
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4.3  Shareholders’ rights

The rights of all ELSA’s shareholders, independent 

shareholder of the company together with 

of their holdings, are protected according to the 

all rights and obligations deriving from this 

relevant legislation. Shareholders have, amongst 

capacity, in accordance with the law and the 

other rights provided under the company’s Articles 

Articles of Association;

of Association and the laws and regulations in 

force, the right to obtain information about ELSA’s 

•  The rights and obligations deriving from the 

operations and results, regarding the exercise of 

shares are transferred to the new acquirers 

voting rights and the voting results in the GMS. 

together with the shares; 

Shareholders have also the right to participate and 

•  When a nominative share becomes the 

vote in the GMS, as well as to receive dividends. 

property of several persons, the transfer 

Except for the shares owned by ELSA following the 

shall be registered only if they appoint a sole 

stabilization after the IPO in 2014, there are no shares 

representative for exercising the rights derived 

without voting rights. There are no shares granting 

from the shares; 

the right to more than one vote. 

Moreover, shareholders have the right to challenge 

by its social patrimony, and the liability of the 

the decisions of GMS or to withdraw from ELSA and 

shareholders is limited to the subscribed share 

•  The obligations of the company are secured 

to request the Company to acquire their shares, in 

capital;

certain conditions mentioned by the law. Likewise, 

one or more shareholders holding, individually or 

•  The shareholder that has, in a certain operation, 

jointly, at least 5% of the share capital, may request 

either personally or as representative of another 

the calling of a GMS. Those shareholders have also 

person, an interest contrary to the interest of 

the right to add new items to the agenda of a GMS, 

the company, must refrain from deliberations 

provided that those proposals are accompanied 

regarding the respective operation.

by a justification or a draft resolution proposed for 

approval and copies of the identification documents 

of the shareholders who make the proposals. 

The exercise of the rights by the holders of the 
depositary certificates5  is realized as follows:

The rights and obligations of the holders of 

•  The rights and obligations related to the 

the shares, as extracted from ELSA’s Articles of 

underlying shares based on which the 

Association, are:

depositary certificates were issued are 

exercised by the holders of the deposit 

•  Each share subscribed and fully paid in by 

certificates, proportionally to their holdings of 

the shareholders, in accordance with the law, 

deposit certificates and taking into account the 

grants the shareholders (i) the right to one vote 

conversion rate between underlying shares and 

in the general meeting of the shareholders, (ii) 

the deposit certificates;

the right to elect the management bodies, (iii) 

the right to participate to the profit distribution, 

•  The holder of the depositary certificates 

as well as (iv) other rights provided by these 

issued based on the underlying shares has the 

Articles of Association and by the legal 

capacity of shareholder within the meaning and 

provisions; 

for the application of Law 24/2017 on the issuers 

of financial instruments and market operations. 

•  The acquisition of the property right over a 

The issuer of the depositary certificates is fully 

share by a person, directly or indirectly, has 

responsible for informing the holders of the 

as effect the obtainment of the capacity of 

depositary certificates in a correct, complete 

5  According to ELSA’s Articles of Association reflecting the dispositions of Law no. 24/2017 on issuers of financial instruments and market operations.

and timely manner, observing the provisions 

to send the voting instructions of the holders of 

of the issuance documents of the depositary 

the depositary certificates related to the topics 

certificates, about the documents and the 

on the agenda of the general meeting of the 

informative materials related to a general 

shareholders;

meeting of shareholders, as made available to 

the shareholders by the Company.

•  Any reference date for the identification of 

the shareholders which have the right to take 

• 

In order to exercise its rights and obligations 

part and to vote in the general meeting of 

related to a general meeting of shareholders, 

the shareholders of the Company and any 

a holder of deposit certificates will send to 

registration date for the identification of the 

the entity where it has opened its account for 

shareholders which have rights deriving from 

deposit certificates the voting instructions 

their shares, as well as any other similar date 

for the topics on the agenda of the general 

set by the Company related to any corporate 

meeting of the shareholders, so that the 

events of the Company will be established in 

respective information is sent to the issuer of 

accordance with the applicable legal provisions 

the depositary certificates;

and with a prior notice sent with at least 15 free 

calendar days (in Romanian, zile calendaristice 

•  The issuer of the deposit certificates votes in 

libere) to the issuer of the deposit certificates, 

the general meeting of the shareholders of the 

in the name of which the underlying shares 

company in accordance with and within the 

are registered based on which the deposit 

limits of the instructions of the holders of the 

certificates mentioned above are issued. The 

deposit certificate which have this quality at the 

reference date will be prior with at least 15 

reference date;

working days to the deadline for submitting the 

power of attorney related to the vote..

•  The issuer of the deposit certificates may cast 

different votes for certain underlying shares in 

Transfer of shares

the general meeting of the shareholders than 

those expressed for other underlying shares;

The shares are indivisible. The company shall 

recognize a sole owner per each share, subject 

•  The issuer of the deposit certificates is fully 

to the provisions of article 11 paragraph (4) from 

responsible for taking all necessary measures, 

Articles of Association. 

so that the entity which keeps the records 

of the holders of the deposit certificates, the 

The partial or total transfer of shares between the 

intermediaries involved in the custody services 

shareholders or to third parties shall be carried out 

for holders of the deposit certificates on the 

according to the terms and procedure provided by 

market where the deposit certificates are 

the applicable legal provisions, including the capital 

traded and/or any other entities involved in 

markets legislation. 

recording the holders of the deposit certificates, 

2023 DIRECTORS’ REPORTCORPORATE GOVERNANCE IN ELSA2023 DIRECTORS’ REPORTELECTRICA S.ACORPORATE GOVERNANCE IN ELSAELECTRICA S.A2023 ANNUAL REPORT2023 ANNUAL REPORT94

95

4.4  ELSA’s Board of Directors

ELSA adopted a one-tier (unitary) corporate 

of Association, as well as of art. 20, point ii) 

Table 10. Members of the BoD in 2023

governance system, in accordance with the 

of the mandate contract concluded with Mr. 

principles of good corporate governance, 

Cristodorescu George.

transparency and accountability towards its 

shareholders and other categories of stakeholders, 

•  On 18 July 2023, following the legal termination 

aiming to support and drive the business 

of the mandate of Mr. George Cristodorescu, The 

development and the efficient exchange of relevant 

BoD nominates Ms. Valentina–Elena Siclovan 

corporate information.

as an interim member of the Board of Directors, 

starting on 24 July 2023 and until the date of the 

The Board of Directors (BoD) is responsible for 

next meeting of the Ordinary General Meeting of 

taking all the necessary measures to carry out, as 

Shareholders of Electrica.On 20 December 2023, 

well as to supervise the activity of the company. Its 

the GMS approved the election of Ms. Valentina-

structure, organization, duties and responsibilities 

Elena Siclovan as an independent Director with 

are established under the Articles of Association 

the duration of the mandate equal to the period 

and the Charter (organization and functioning 

remaining until the expiration of the mandate 

regulations) of the BoD.

related to the vacant position, i.e. until 28 April 

According to the provisions of the company’s 

2025.

Articles of Association, starting with 14 December 

On 26 January 2024, the GMS appointed a new 

2015, the BoD is composed of seven non-executive 

Board of Directors, through the cumulative vote 

directors, elected by the Ordinary General Meeting 

method, therefore, at the date of the Directors 

of Shareholders of the company for a four-year 

report, the BoD consists of the following members: 

mandate, out of which four must meet the criteria 

Mr. Ion-Cosmin Petrescu, Mr. Dumitru Chirita, Ms. 

of independence provided by the Articles of 

Georgiana Bogasievici, Mr. Dragos-Valentin Neacsu, 

Association.

Mr. Adrian-Florin Lotrean, Mr. Marian-Cristian 

Mocanu, Ms. Valentina-Elena Siclovan; 

During 2023, the Board of Directors’ structure has 

undergone changes, as follows:

•  At the beginning of the year, the BoD consisted 

of the following members: Mr. Iulian Cristian 

Bosoanca – Chair, Mr. George Cristodorescu, Mr. 

Radu Mircea Florescu, Mr. Gicu Iorga, Mr. Adrian-

Florin Lotrean, Mr. Dragos-Valentin Neacsu and 

Mr. Ion-Cosmin Petrescu; 

•  The members of the Board re-elected Mr. Iulian 

Cristian Bosoanca as Chair of the BoD starting 

with 01 January 2023 and until 31 December 

2023; 

•  On 15 May 2023, the BoD took note of the legal 

termination of the mandate of Mr. Cristodorescu 

George, in accordance with the provisions of 

art. 2030 para. (1) of the New Civil Code, of art. 

18 para. (10) letter d) of the company’s Articles 

1.

2.

3.

4.

5.

6.

7.

No

Name

Term of office (until 27 April 2025)

Status

Mr. Iulian Cristian 

Bosoanca

Mr. George 

Cristodorescu *

Mr. Radu Mircea 

Florescu

4 years

4 years

4 years

Chair,  
non-executive 
director 

non-executive 
director, 
independent

non-executive 
director, 
independent

Starting date 

of the first 

mandate

29 April 2020

28 April 2021

7 February 2019

Mr. Gicu Iorga

4 years

Mr. Adrian-Florin 

Lotrean

Mr. Dragos-Valentin 

Neacsu

Mr. Ion-Cosmin 

Petrescu

4 years

4 years

4 years

8. 

Ms. Valentina-Elena 

Siclovan

Starting with 24 July 2023 and until 
30 April 2024 or until the date of 
the next meeting of the Ordinary 
General Meeting of Electrica 
Shareholders

On 20 December 2023, the GMS 
approves the election of Ms. 
Valentina-Elena Siclovan as an 
independent member with the 
duration of the mandate equal 
to the period remaining until the 
expiration of the mandate related 
to the vacant position, i.e. until 28 
April 2025

non-executive 
director 

1 May 2017

non-executive 
director, 
independent

non-executive 
director, 
independent

28 April 2021

28 April 2021

non-executive 
director

28 April 2021

non-executive 

director, 

24 July 2023

independent

Source: Electrica 
* On 15 May 2023, the BoD took note of the legal termination of the mandate of Mr. Cristodorescu George, in accordance with the provisions of art. 2030 para. (1) 
of the New Civil Code, of art. 18 para. (10) letter d) of the company’s Articles of Association, as well as of art. 20, point ii) of the mandate contract concluded with Mr. 
Cristodorescu George

2023 DIRECTORS’ REPORTCORPORATE GOVERNANCE IN ELSA2023 DIRECTORS’ REPORTELECTRICA S.ACORPORATE GOVERNANCE IN ELSAELECTRICA S.A2023 ANNUAL REPORT2023 ANNUAL REPORT96

97

   Dumitru Chiriță

•  Chair of the Board of Directors
•  Non-executive Director appointed on 26 January 2024
•  Member of the Strategy and Corporate Governance 

Committee

At the date of issuing of this report, the members of the Board of Directors were the following:

No.

Name

Term of office 

(until 26 January 

2028)

Status

Starting date 

of the first 

mandate

1.

2.

3.

4.

5.

6.

7.

Mr. Dumitru Chirita

4 years

Chair, non-executive 

director

26 January 2024

Mr. Marian Cristian 

Mocanu

4 years

non-executive director, 

independent

26 January 2024

Ms. Georgiana 

Bogasievici

4 years

non-executive director 

26 January 2024

Ms. Valentina – Elena 

Siclovan

4 years

non-executive director 

independent

24 July 2023

Mr. Adrian-Florin Lotrean

4 years

non-executive director, 

independent

28 April 2021

Mr. Dragos-Valentin 

Neacsu

4 years

non-executive director, 

independent

28 April 2021

Mr. Ion-Cosmin Petrescu

4 years

non-executive director

28 April 2021

Source: Electrica

More details on the Board members’ biographies can be found on the Group’s website in the section 

Investors > Corporate Governance > Board of Directors.

Below are presented the most relevant aspects regarding the professional experience of the members of 

the Board in office at the date of this report, as well as of those in office in 2023.

Born in 1963, Mr. Dumitru Chirita has more than 
30 years of professional experience in the field 
of energy and labour relations, holding over 
time management positions in various key state 
institutions, in historical moments for Romania 
such as the accession to the European Union.

For 13 years (legislatures: 2000-2004, 2008-
2012, 2012-2016, 2016-2017), Mr. Dumitru Chirita 
held the position of deputy in the Romanian 
Parliament, working within the Commission for 
Industries and Services as a member and vice-
president of this forum.

Since 2000, as a deputy, Mr. Chirita was a 
member and Secretary of the Commission for 
European Integration, actively participating in 
the negotiations with the European Parliament 
in the process for Romania’s accession to the 
European Union.

Between 2004 and 2008, Dumitru Chirita was the 
Vice-president of the National Health Insurance 
House, and in the period 2017 to 2023 he held 
the position of President of the Romanian Energy 
Regulatory Authority (ANRE).

Dumitru Chirita is a graduate of the Faculty 
of Law and International Relations - ‘Nicolae 
Titulescu’ University and a MA student of the 
University of Bucharest - Faculty of Law - MA in 
‘Labour and Industrial Relations”.

In his capacity as President of the ‘Univers’ 
National Federation of Electricity Trade Unions, 
President of the ‘Energia’ Free Trade Union 
and Vice-president of the Confederation of 
the National Trade Union Bloc, he constantly 
represented the interests of employees in the 
energy sector.

Dumitru Chirita also held the positions of 
member of the Board of Directors of the National 
Employment Agency and member of the 
Board of Directors of the National Council for 
Professional Training of Adults.

Mr. Chirita was elected as a non-executive 
director, member of the Board of Directors, by 
the Ordinary General Meeting of Shareholders of 
Electrica on 26 January 2024.

Starting with 12 February 2024 Mr. Chirita is the 
Chair of the Board of Directors and a member 
of the Strategy and Corporate Governance 
Committee.

2023 DIRECTORS’ REPORTCORPORATE GOVERNANCE IN ELSAELECTRICA S.A2023 ANNUAL REPORT   Dragoș Valentin Neacșu

Born in 1965, Mr. Neacsu has an extensive professional 
experience in the field of investment management and 
financial markets, for almost three decades.

   Adrian-Florin Lotrean

98

99

•  Vice-Chair of the Board of Directors
•  Non-executive Independent Director since 28 April 2021, 

re-elected on 26 January 2024

•  Chair of the Nomination and Remuneration Committee 

and member of the Audit and Risk Committee

•  Vice-Chair of the Board of Directors
•  Non-executive Independent Director since 28 April 2021, 

re-elected on 26 January 2024

•  Chair of the Climate Governance and Public Affairs 

Committee and Member of the Strategy and Corporate 
Governance Committee

• 

Mr. Neacsu is currently the CEO of the GS1 Romania 
Association, part of a global federation of 116 not-
for-profit organizations, with an activity focused on 
elaborating and promotion of global standards, that 
aim to create a common foundation for business 
administration, by uniquely identifying, accurately 
capturing and automatically sharing information about 
products, locations and assets.

Until October 2019, Mr. Neacsu held the position of Chief 
Executive Officer, Chair of the Board of SAI Erste Asset 
Management SA, previously being Director, Financial 
Advisory Services of Deloitte Consultancy SRL. Between 
February-September 2005 he was State Secretary 
Minister, Head of State Treasury within the Ministry of 
Public Finance. Between July 1998 and February 2005 
he held the position of President – CEO of SSIF Raiffeisen 
Capital & Investment S.A.

Among other relevant positions held by Mr. Neacsu: 
Member of the Board of Governors EFAMA (European 
Fund and Asset Management Association, between 
2013-2016), Romania’s representative in multilateral 
financial institutions (Council of Europe Bank (BDCE), 
Black Sea Trade and Development Bank (BSTDB)), 
Vice-president and then President of the Romanian 
Association of Asset Managers (AAF, between 2008-
2016), founding member and first Vice President 
of the Board of Romanian Association for Privately 
Managed Pension Funds (APAPR in 2004), Member of 
the Supervisory Board of BCR Pensii, Private Pension 
Fund Management Company S.A. (between 2009-
2019), Member of CEC Bank S.A Board (between 2005-
2006), Member of the Bucharest Stock Exchange Board 
of Governors (2001-2005), of the first Board after the 
demutualisation (2005) and between 2021 and 2024, 
as well as Independent Non-Executive Member of the 
Board of FINS IFN SA (2018-present), Board Member of 
the Romanian Business Leaders Foundation (2017-2023), 
member of the Board of “Merito” educational project 
(2017-present).

He is part of the first generation (1994-1995) of the 
Romanian-Canadian MBA Program, cooperation of 
UQAM and McGill Canadian universities, together with 
Academy of Economic Studies in Bucharest and holds 
a BA in Civil Engineering from Technical University 
Bucharest (1989).

Dragos-Valentin Neacsu is a non-executive 
independent member of the Board of Directors since 28 
April 2021.

From 6 May 2021 to 30 July 2023, he was a member 
of the Audit and Risk Committee. From 17 May 2023 to 
26 January 2024, he was member of the Strategy and 
Corporate Governance Committee and from 27 January 
2023, since its set up until 26 January 2024, he was the 
Chair of the Climate Governance and Public Affairs 
Committee.

He was re-elected by Electrica’s Ordinary General 
Meeting of Shareholders from 26 January 2024. Starting 
with 12 February 2024 Mr. Neacsu is Vice-Chair of 
the Board of Directors, member of the Strategy and 
Corporate Governance Committee and Chair of the 
Climate Governance and Public Affairs Committee.

Born in 1980, Mr. Lotrean holds currently 
the position of coordinating associate of 
Infinexa Restructuring SPRL and extensive 
professional experience in the field of insolvency, 
coordinating as insolvency practitioner, complex 
restructuring projects on production of thermal 
energy and electricity in cogeneration (for 
clients such as CET ARAD SA, Electrocentrale 
Constanta SA), being consultant to the judicial 
administrator of Electrocentrale Bucuresti SA 
and coordinating the restructuring procedure of 
Hidroserv S.A.

In terms of corporate governance, Mr. Lotrean 
had a significant impact as Chair of the 
Board of Directors of the Municipal Company 
Termoenergetica Bucuresti SA between May 
2021 and November 2023, a period in which the 
foundations were laid for the resumption of 
investments in the heating network in Bucharest. 
Previously, between September 2019 – December 
2020, Mr. Lotrean held the position of Member of 
the Board of Directors of Electroplast SA Bistrita, 
between November 2007 and February 2010 he 
was insolvency practitioner in the professional 
civil company Casa de Insolventa Transilvania 
S.P.R.L where he participated in the management 
of projects for more than 50 comercial 
companies.

Between January 2003 – November 2007, Mr. 
Lotrean held the position of Financial Consultant 
within SC Depofarm SLR, providing consultancy 
for the elaboration of projects financed from 
European funds, the elaboration of feasibility 
studies, business plans and financial-fiscal 
consultancy. Previously, between November 
2001 and December 2002, he held the position 
of specialized inspector within the Fiscal Control 
Department of the General Directorate of Public 
Finance Satu Mare.

Adrian Florin Lotrean is a non-executive 
independent member of the Board of Directors 
since 28th April 2021. From 6 May 2021 to 26 
January 2024 he was the Chair of the Nomination 
and Remuneration Committee and a member 
of the Strategy and Corporate Governance 
Committee.

He was re-elected by Electrica’s Ordinary 
General Meeting of Shareholders from 26 
January 2024. Starting with 12 February 2024 Mr. 
Lotrean is Vice-Chair of the Board of Directors, 
a member of the Audit and Risk Committee and 
the Chair of the Nomination and Remuneration 
Committee.

100

101

   Ion Cosmin Petrescu

•  Non-executive Director since 28 April 2021,  

re-elected on 26 January 2024

•  Member of the Audit and Risk Committee and of 
the Nomination and Remuneration Committee

Born in 1978, with an extensive professional 
experience in business development, sales and 
management, Mr. Cosmin Petrescu presently 
activates in FNGCIMM (The National Loan 
Guarantee Fund for SMEs), where he leads the 
activity of IT, State Aid and Reporting Divisions. 
Cosmin Petrescu is also the President of the 
working groups dedicated to the program 
IMMINVEST ROMANIA and for the relation with 
the European Bank of Reconstruction and 
Development.

Starting February 2021, he holds the position 
of Adviser within the Chancellery of the Prime 
Minister, on digitization issues.

Previously, starting with the year 2001, Mr. 
Petrescu held different positions within 
companies acting in the Oil&Gas sector where 
he proved competence in optimizing business 
processes (Lean Management).

Ion-Cosmin Petrescu is a non-executive director, 
member of the Board of Directors, starting 
28 April 2021. From 6 May 2021 to 26 January 
2024 was a member of the Nomination and 
Remuneration Committee.

He was re-elected by Electrica’s Ordinary 
General Meeting of Shareholders from 26 
January 2024. Starting with 12 February 2024 
Mr. Petrescu is member of the Audit and 
Risk Committee and of the Nomination and 
Remuneration Committee.

   Georgiana Bogasievici

•  Non-executive Director since 26 January 2024
•  Member of the Climate Governance and Public 

Affairs Committee

Born in 1991, Ms. Georgiana Bogasievici is a 
dedicated legal professional with experience 
in the field of law and public administration, 
reflected in her varied and significant roles.

With a legal career started at the Faculty of Law 
of the University of Bucharest, she deepened her 
knowledge with a master’s degree in Civil Law 
and Civil Procedure at Titu Maiorescu University.

She has demonstrated proficiency in 
environmental management and public 
procurement, occupying positions of legal 
advisor and leader in various public and private 
organizations.

English and Spanish are among her advanced 
language skills. Ms. Bogasievici has distinguished 
herself through communication and 
interpersonal skills, stress management and 
adaptability, qualities that make her a valuable 
addition to any team.

Ms. Bogasievici was elected as a non-executive 
director, member of the Board of Directors, 
by Electrica’s Ordinary General Meeting of 
Shareholders from 26 January 2024. Starting 
with 12 February 2024 Ms. Bogasievici is member 
of the Climate Governance and Public Affairs 
Committee.

102

103

   Valentina Elena Şiclovan 

•  Non-executive Independent Director since 24 July 

2023, re-elected on 26 January 2024

•  Chair of the Audit and Risk Committee and member 

of the Climate Governance and Public Affairs 
Committee

   Marian Cristian Mocanu

•  Non-executive Independent Director since 26 

January 2024

•  Chair of the Strategy and Corporate Governance 
Committee and member of the Nomination and 
Remuneration Committee

Born in 1983, Mr. Mocanu has more than 17 
years of experience as a business lawyer, being 
involved in both consultancy activities and in 
dispute resolutions projects, with an emphasis 
on insolvency and restructuring issues, corporate 
law (shareholders’ rights), including the defence 
of the interests of persons involved in complex 
investigations.

Throughout his career, Mr. Mocanu has advised 
and represented both local and international 
clients, thus building solid experience in a wide 
range of business sectors, such as real estate, 
energy, banking, automotive, IT&C, industrial 
production, or consumer goods.

Starting from 2020, Mr. Mocanu acts also as 
an insolvency practitioner, managing several 
insolvency cases during this period, with the 
purpose to ensure the highest possible degree of 
debt recovery.

Mr. Mocanu was elected as a non-executive 
independent director, member of the Board of 
Directors, by Electrica’s Ordinary General Meeting 
of Shareholders from 26 January 2024. Starting 
with 12 February 2024 Mr. Mocanu is the Chair 
of the Strategy and Corporate Governance 
Committee and member of the Nomination and 
Remuneration Committee.

Born in 1960, Ms. Şiclovan has an extensive experience, 
more than 20 years in senior executive positions, in 
public and private sector and 14 years in international 
financing.

She has started her executive career in the Ministry of 
Finance and in 2001 took an executive position in the 
Black Sea Trade and Development Bank as VP Banking, 
an international financial institution headquartered in 
Thessaloniki, Greece. Eventually she spent 14 years in 
this bank, the last 8 years as VP Finance/CFO, being fully 
involved in all strategic decisions.

Ms. Şiclovan has also experience in energy sector, 
holding for a period of time the position of Vice-
President, Business Development & Strategy, in Gaz de 
France Suez (Engie), responsible for the development of 
energy projects in South East Europe.

She was Board member in Tarom, member of the 
Interministerial Committee for Credits and Guarantees 
– Exim Bank and Board member in EnergoNuclear SA, 
representing GDF Suez.

From 1997 until 2000 Ms. Şiclovan represented Romania 
in the Boards of Directors of the Black Sea Trade 
and Development Bank and of the Council of Europe 
Development Bank.

Since 2022 she is independent Board member in 
ICME-ECAB, a Romanian company, part of the Hellenic 
Cables- Greece, one of the largest cable manufacturers 
in Europe.

Ms. Şiclovan has a degree in finance and accounting 
from the Romanian Academy of Economic Studies and 
she did her post-graduate studies (DESS – Master) at 
Paris- Dauphine University in France. She is financial 
auditor, member of the Romanian Chamber of Financial 
Auditors and she is certified in Corporate Governance 
(INSEAD Fontainebleau).

Ms. Şiclovan was appointed interim director by the 
Board of Directors of Electrica starting with 24 July 
2023. From 1 August 2023 to 26 January 2024 she was a 
member of the Audit and Risk Committee.

On 20 December 2023 Ms. Şiclovan was appointed 
as a non-executive independent director, member of 
the Board of Directors, by Electrica’s Ordinary General 
Meeting of Shareholders, and then was re-elected by 
Electrica’s Ordinary General Meeting of Shareholders 
from 26 January 2024. Starting with 12 February 2024 Ms. 
Şiclovan is the Chair of the Audit and Risk Committee 
and member of the Climate Governance and Public 
Affairs Committee.

104

105

Biographies of incumbent directors as of 31 December 2023, who were 
not reconfirmed in office (following the application of the cumulative 
voting method) by the Ordinary General Meeting of Shareholders on 26 
January 2024:

Mr. Iulian Cristian Bosoanca was non-executive director appointed on 29 April 2020, Chair of the Board 
of Directors since 18 July 2020, member of the Risk and Audit Committee, and member of the Climate 
Governance and Public Policy Committee since 27 January 2023.

Mr. Bosoanca was the Chair of the Board of Directors starting on July 18, 2020, he was a member of the Audit 
and Risk Committee starting on May 13, 2020 and a member of the Climate Governance and Public Policies 
Committee from January 27, 2023.

Born in 1976, he holds a bachelor’s degree in economics and law, he has a master’s degree in financial 
accounting management and he is an expert accountant and tax consultant. 

He holds relevant professional experience in the economic field, especially in the areas of finance, 
accounting, economic financial analysis and taxation, having over 20 years of practical activity. He also 
holds competences in management, compliance, legal, payroll and human resources, developed within 
practicing his activity for over 25 years and following graduated specializations or courses.

The basic profession, accounting and taxation, he carries out as a freelancer ever since 2008, within more 
companies, members of CECCAR, where he is also an associate and/or administrator/coordinator, but also 
individually, for the activities of accounting, fiscal and judicial expert.

Starting with 1998, Mr. Bosoanca held several positions, executive or management positions, being also 
a member of the Boards of Directors in various companies such as: Cazanele SA in the period August 
2005 – September 2006, Mehedinti County Health Insurance House in the period May 2012 – October 2014 
and Secom SA in the period September 2017 – May 2018, and National Road Infrastructure Management 
Company (CNAIR - Compania Nationala de Administrare a Infrastructurii Rutiere, in Romanian) in the period 
May 2020 - May 2021.

He coordinated a Board of Directors, being elected Chair of the Board of Directors of Secom SA from 
September 2017 to May 2018 and a Supervisory Board, being appointed Chair of the Supervisory Board of the 
State Assets Management Authority from April 2020 to May 2021.

From March 2020 to June 2023, as Director of the Cabinet Office, he managed the work of the Cabinet Office 
at the Ministry of Economy, Energy and Business Environment (December 2020) and the Ministry of Energy 
(June 2023).

In 2016, he was elected President of the Body of Expert Accountants and Certified Accountants in Romania, 
Mehedinti Branch, being re-elected in 2019. He also worked as a lecturer in the Body of Expert Accountants 
and Certified Accountants in Romania.

He is an authorized Mediator, a member of the Romanian Body of Mediators.

Mr. Radu Mircea Florescu was an independent non-executive director since 7 February 2019, Chair of the 
Audit and Risk Committee and member of the Nomination and Remuneration Committee.

Mr. Florescu was the Chair of the Audit and Risk Committee from May 6, 2021 to January 26, 2024, previously 
being a member of this committee between February 18, 2019 and December 31, 2020, a member of the 
Nomination and Remuneration Committee between May 6, 2021 and January 26 2024 and a member of the 
Strategy and Corporate Governance Committee between January 28, 2020 and May 6, 2021.

Born in 1961, Mr Radu Mircea Florescu is currently the CEO of Centrade | Cheil, South East Europe, the regional 
communications hub for Cheil Worldwide, coordinating 11 markets in the Adriatic and Balkan region.

For more than 40 years, Radu Florescu worked in top multinational companies from Fortune 500, activating 
in emerging countries, including programs financed from EU funds. Mr. Florescu began his career in 
trading at NYMEX where he coordinated all trading activities for petroleum products and precious metals. 
A graduate of Marketing and Finance from Boston College with a Bachelor of Science degree, Radu Mircea 
Florescu began his career in commodity trading with Merrill Lynch/EF Hutton at NYMEX (New York Mercantile 
Exchange), with a specific focus on WTI (West Texas Crude), fuel oil and gasoline. In 1989, he co-founded 
Centrade USA and became one of the leading pioneers for marketing and communication services on the 
Romanian market with the launch of Saatchi & Saatchi, SSX, Chainsaw Studios, Cable Direct and Zenith 
Media.

Radu Florescu has held other notable positions including nomination as member to numerous board 
positions: founding member and board member of IAA Romania, co-founder and member of the Union of 
Advertising Agencies of Romania (UAAR), member of the European Council of the European Association of 
Communication Agencies (EACA), representing Romania and Eastern Europe in Brussels (2012 - 2015, 2017 
and presently Treasurer), member of the Board of Directors and vice-president of the American Chamber 
of Commerce in Romania (2013 - 2015 and 2016 - 2021), member of TAROM’s Board of Directors (March 
2015 - June 2017), non-executive board member of SulNOx Group PLC, president of the Administrative 
Council of Foreign Democrats in Romania, coordinator and member of the Steering Committee for Coalition 
for Romania’s Development – the “umbrella” group and leading association representing the business 
community and trade sections from key foreign embassies in Bucharest.

Radu Mircea Florescu is also active in the field of social responsibility, having a long history of contribution 
in local community, presently acting as Member of the Board of Directors for different organizations such 
as AIESEC Romania (International Association of Students in Economics), Junior Achievement Program, 
OvidiuRo, Principesa Margareta Foundation, ASEBUSS and United Way Romania.

Mr. Gicu Iorga was a non-executive director since 1 May 2017 and Chair of the Strategy and Corporate 
Governance Committee. 

Mr. Iorga was the Chair of the Strategy and Corporate Governance Committee from May 6, 2021 to January 
26, 2024, previously being a member of this committee in the period of May 14, 2018 - February 18, 2019.. He 
was a member of the Nomination and Remuneration Committee in the periods November 13, 2017-May 14, 
2018, February 18, 2019 - January 28, 2020 and May 13, 2020 - May 6, 2021 and a member of the Audit and 
Risk Committee in the periods of December 12, 2018-February 18, 2019 and January 28, 2020-May 13, 2020.

Born in 1958, Mr. Gicu Iorga has an experience of over 35 years in the field of economics and public 
administration until November 2023 he held the position of Head of Customs Office within A.N.A.F. – D.G.V 
Bucharest.

Most of his professional activity was carried out in institutions such as National Customs Authority, A.N.A.F 
– General Customs Directorate, General Public Finances Directorate Bucharest and National Sanitary 
Veterinary and Food Safety Authority (A.N.S.V.S.A.). 

Starting with April 2017 and until November 2019 Mr. Gicu Iorga held the position of General Secretary within 
the Ministry of Energy where he coordinated the good functioning of the departments and functional 
activities within the Ministry. Further to that, starting March 2020 and until March 2021 he occupied the 
position of Deputy General Secretary within the Ministry of Economy, Energy and Business Environment.

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Four consultative committees support the activity 

Climate Governance and Public Policies 

-  Mr. Iulian Cristian Bosoanca – Member. 

Strategy and Corporate Governance Committee:

of the BoD, respectively the Nomination and 

Committee since 27 January 2023 

Remuneration Committee, the Audit and Risk 

Committee, the Strategy and Corporate Governance 

Committee and the Climate Governance and Public 

Policies Committee each of them composed of three 

directors and chaired by one of them. The majority 

members of the Nomination and Remuneration 

Committee and of the Audit and Risk Committee, as 

well as their Chairs, are independent directors. 

-  Mr. Dragos-Valentin Neacsu – Chair; 

-  Mr. George Cristodorescu – Member;

-  Mr. Iulian Cristian Bosoanca – Member

16 May – 30 July 2023

The consultative committees’ members are 

elected for a period of one year. Changes in the 

Nomination and Remuneration Committee:

-  Mr. Adrian-Florin Lotrean – Chair;

Strategy and Corporate Governance Committee:

-  Mr. Marian -Cristian Mocanu - Chair;

-  Mr. Gicu Iorga - Chair;

-  Mr. Dragos Valentin Neacsu – Member; 

-  Mr. Dragos Valentin Neacsu – Member; 

-  Mr. Dumitru Chirita – Member. 

-  Mr. Adrian-Florin Lotrean – Member. 

Climate Governance and Public Policies 

Climate Governance and Public Policies 

Committee 

Committee 

-  Mr. Dragos-Valentin Neacsu – Chair; 

-  Mr. Dragos-Valentin Neacsu – Chair; 

-  Ms. Valentina Elena Siclovan – Member;

-  Mr. Radu Florescu – Member;

-  Ms. Georgiana Bogasievici – Member.

composition of the committees during this period 

-  Mr. Radu Mircea Florescu – Member; 

-  Mr. Iulian Cristian Bosoanca – Member.

At the issue date of this report, the 
composition of the BoD Committees is as 

follows:

Nomination and Remuneration Committee: 

Mr. Dragos-Valentin Neacsu holds a number of 20 

According to the available information, there is 

no agreement, understanding or family relation 

between the directors of the company and 

another person who may have contributed to their 

appointment as directors. 

As of 31 December 2023, among the BoD members, 

ELSA shares.

According to the available information, the BoD 

members were not involved in litigations or 

administrative proceedings regarding their activity 

within the company or regarding their capacity to 

fulfil their duties within the company in the past five 

may intervene with the vacancy of a Board position. 

The organization, duties and responsibilities of 

each committee are set under ELSA’s Articles of 

Association, respectively in the committee Charters 

-  Mr. Ion Cosmin Petrescu – Member

Audit and Risk Committee:

and in the Company’s Corporate Governance Code.

-  Mr. Radu Mircea Florescu - Chair;

The composition of the committees during 2023, as 

it follows: 

-  Mr. Dragos-Valentin Neacsu – Member; 

-  Mr. Iulian Cristian Bosoanca – Member. 

01 January – 15 May 2023

Strategy and Corporate Governance Committee:

-  Mr. Gicu Iorga - Chair;

-  Mr. Dragos Valentin Neacsu – Member; 

-  Mr. Adrian-Florin Lotrean – Chair;

-  Mr. Marian -Cristian Mocanu – Member; 

-  Mr. Ion Cosmin Petrescu – Member

Nomination and Remuneration Committee: 

-  Mr. Adrian-Florin Lotrean – Member. 

Audit and Risk Committee:

-  Ms. Valentina Elena Siclovan - Chair;

years.

-  Mr. Adrian-Florin Lotrean – Member; 

-  Mr. Ion Cosmin Petrescu – Member. 

-  Mr. Adrian-Florin Lotrean – Chair;

Climate Governance and Public Policies 

-  Mr. Radu Mircea Florescu – Member; 

Committee 

-  Mr. Ion Cosmin Petrescu – Member

-  Mr. Dragos-Valentin Neacsu – Chair; 

Audit and Risk Committee:

-  Mr. Radu Mircea Florescu - Chair;

-  Mr. Dragos-Valentin Neacsu – Member; 

-  Mr. Iulian Cristian Bosoanca – Member. 

-  Mr. Radu Florescu – Member;

-  Mr. Iulian Cristian Bosoanca – Member.

31 July – 31 December 20233

Strategy and Corporate Governance Committee:

Nomination and Remuneration Committee:

-  Mr. Gicu Iorga - Chair;

-  Mr. George Cristodorescu – Member; 

-  Mr. Adrian-Florin Lotrean – Member. 

-  Mr. Adrian-Florin Lotrean – Chair;

-  Mr. Radu Mircea Florescu – Member; 

-  Mr. Ion Cosmin Petrescu – Member

Audit and Risk Committee:

-  Mr. Radu Mircea Florescu - Chair;

-  Ms. Valentina Elena Siclovan – Member; 

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4.5  The activity of ELSA’s Board of Directors and of its  

consultative committees in 2023

 Evaluation of the Board of Directors

Board evaluates annually its activity and that of 

its consultative Committees to identify areas of 

improvement, and to increase its efficiency. The 

•  Board coordination;

•  BoD committees;

•  Interactions between the BoD and the Executive 

team;

In 2023, the Board of Directors met 47 times; 

Below are presented the Board members’ 

purpose of the evaluation is to provide members 

•  Dynamics of the interactions and processes;

of these, 23 meetings were organized with the 

attendance (in person, by conference call, or by 

physical presence of the members, 6 were held by 

e-mail) in the meetings of the Board of Directors 

conference call, in accordance with Art. 18 para. 

and its committees in 2023.

20 of the company’s Articles of Association and 18 

meetings were organized electronically.

Table 11. Participation of the BoD members at the BoD meetings and of the committees meetings in 

2023

Name

The Strategy 

The Audit 

The Nomination 

and 

The Board of 

and Risk 

and 

Corporate 

Directors

Committee

Remuneration 

Governance 

(no. of 

(no. of 

Committee

Committee 

meetings 47)

meetings - 

(no. of meetings 

(no. of 

31)

- 20)

meetings - 

Iulian Cristian Bosoanca

George Cristodorescu

Radu Mircea Florescu

Gicu Iorga

Adrian-Florin Lotrean

Dragos-Valentin Neacsu

Ion-Cosmin Petrescu

Valentina Elena Siclovan

Source: Electrica

47

17

47

46

46

47

47

20

31

-

30

-

-

17

-

14

-

-

20

-

19

-

20

-

30)

12

-

29

30

16

-

-

Climate 

Governance 

and Public 

Policies 

Committee 

(no. of 

meeting – 6)

6

-

6

-

-

6

-

-

of the Board with an overview of their activity, 

strengths/weaknesses, performance and the 

potential of collective and individual development, 

in order to efficiently and effectively fulfil their 

responsibilities as members of the Board. 

According to the established mechanism, the 

evaluation is conducted either with the support of a 

consultant or by self-evaluation. 

The Board of Directors decided, to conduct 

the evaluation of its activity and functioning 

•  Performance management;

•  Strategic Management and Risk Management;

•  Innovation and digitalization;

•  Sustainability.

Following the evaluation, a detailed summary 

was made with the analysis of the result of the 

evaluation process. From the analysis of the results 

of the questionnaire, it emerged as a general 

conclusion that the development of the BoD activity 

during the year 2023 took place in good conditions, 

during 2023, internally, using a self-assessment 

the following being highlighted:

questionnaire, discussed and agreed by Board 

members.

•  The majority of respondents assessed the overall 

activity of the Board during 2023 as good, the 

The questionnaire, using a scale of 1 to 5, served to 

average marks awarded being between 3 and 5, 

perform an assessment of the Board’s activities in 

on a scale of 1-5;

the following areas:

•  Regarding the performance indicators of 

•  Specific KPIs as provided in the mandate 

the Board members, it was appreciated 

agreements (the main objectives defined by 

that the target was reached regarding the 

the General Meeting of Shareholders: Group 

implementation of corporate governance at 

strategy, Corporate Governance, Placement 

the group level, less in relation to the subsidiary 

of financial investments and Investments 

BoDs, at the same time new strategies were 

achievement in the distribution companies); 

developed at the group level;

•  Board Efficiency and Ways of Working of the 

•  Regarding the level of investments made and 

Board; 

•  Board interactions and activities’ dynamics;

•  Self-Assessment of each Board member;

•  Functioning of the Board Chair;

•  Board’s interactions with CEO/Management;

•  Board’s interactions with stakeholders

Previously, the evaluation of the Board of Directors 

activity in 2022 was carried out with the support of 

an external consultant. 

The evaluation process focused on the following 11 

dimensions relevant to the activity of the Board of 

put into operation in 2023, the set/expected 

level was reached, creating the conditions for 

the future development and improvement of 

the results recorded by the subsidiaries (eg: The 

second cash pooling scheme was developed, 

the mix diversified of financing by activating 

some medium-term facilities for investments 

of some IFIs Preparation of future issues of 

green and sustainability-linked bonds, as well 

as an issue of shares, following the inclusion 

of Electrica in the FTSE Russell regional/global 

indices; The second system of CashPool is 

approved and functional);

Directors and the market context of Electrica SA:

•  As in previous years, the ability of the Board 

•  Composition and expertise of the BoD;

•  Quality of information and materials;

•  Agenda and Board meetings;

to identify developments in the business 

environment in which the Company operates 

and potential opportunities was exploited, the 

general assessment being that the competence 

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of analysis and strategic planning is at a higher 

workshops on topics of common interest, 

report in the Directors’ Report;

•  makes recommendations to the Board on the 

level;

•  Regarding the efficiency and working method of 

stimulating interactive participation in periodic 

presentations, as well as in market events;

•  advises the Board on the appointment and 

dismissal of the Chief Executive Officer, makes 

the Board, the members appreciated that their 

•  Board members consider that the functionality 

recommendations on the appointment 

remuneration of subsidiaries’ board members 

and the general limits of remuneration for 

subsidiaries’ executive management;

contribution to the development of the company 

of the company’s management system can be 

and dismissal of the company’s executive 

•  monitors compensation trends within areas 

is substantial, considering further that it is 

improved;

management team after consulting with the 

relevant to the Group;

necessary to focus on the strategic aspects of 

the company. In addition, the current component 

of the Board was appreciated as a good one, 

which benefits from diversified expertise;

•  At the same time, the BoD appreciates as a 

critical point the improvement of the interaction 

with the company’s subsidiaries in order to 

ensure the achievement of the assumed 

Chief Executive Officer, and makes proposals on 

the appointment and dismissal of subsidiaries’ 

board of directors members in accordance with 

the Group Governance Policy;

•  oversees the remuneration process of the 

subsidiaries’ chief executive officer and 

executive managers according to the 

nomination and remuneration policy at the 

•  Regarding the identification and mitigation of 

strategic objectives;

•  recommends to the Board policies in the 

Group level;

risks, BoD members appreciated that the main 

risks and their management mechanisms have 

been identified, although some mechanisms are 

not under the company’s control;

•  The members of the Board appreciated 

the personal contribution made by each of 

the members in the activity carried out, the 

involvement and the impact of the adopted 

decisions;

•  The communication within the Board is positively 

appreciated, regarding the frequency and 

intensity of communication, the reduction 

of the time affected by physical meetings 

and the efficiency of the decision-making 

process, the issues addressed as well as the 

transparency and sincerity of the dialogue, 

and according to the assessment of the BoD 

members, the atmosphere from the level of the 

Board encourages the expression of all points 

of view, of open debates, a fact that constitutes 

one of the bases for the substantiation of the 

adopted decisions. The decisions were taken by 

•  Paying more attention to succession planning 

at the level of Senior Management as well as 

stimulating its implementation remains a point 

of interest for the Council in future activity;

•  At the same time, the BoD considers it 

appropriate to adopt measures that lead to 

the improvement of the meeting preparation 

process, respectively the size and format of the 

materials received.

 The Nomination and Remuneration
Committee

The Nomination and Remuneration Committee 

consists of three non-executive BoD members, two 

of its members are independent. 

The role of the Committee is to propose candidates 

for the BoD, to develop and propose to the Board the 

selection procedure of candidates for the executive 

managers’ positions and other management 

positions, to recommend the Board candidates 

for these positions, to formulate proposals on the 

managers’ and other management positions’ 

consensus, after the expression, discussion and 

remuneration. 

mediation of contradictory points of view. At the 

same time, the activity at the committee level 

has significantly improved in this interval;

•  Also, the activity submitted by the Chair received 

positive assessments from the respondents, 

especially regarding the facilitation of an open 

and constructive dialogue within the Board 

meetings.

The following aspects for improvement were 

suggested:

The Committee has the following responsibilities 
concerning nomination matters:

•  recommends to the Board a nomination policy, 

including a target Board profile, the process and 

principles to be considered by the shareholders 

when proposing candidates for company’s 

directors, and advises the Board regarding the 

nomination of interim directors in accordance 

with the policy;

•  It is still necessary to improve communication 

with the general public and strategic 

communication with shareholders, by running 

•  reviews the implementation of the nomination 

policy, submits a report to the Board on its 

implementation and presents a summary of this 

human resources field, including those covering 

recruitment and dismissal, talent management 

and development and succession planning 

across the company and its subsidiaries (the 

Group);

•  verifies at least once a year the number of 

mandates held in other companies by the 

members of the Board and by the executive 

managers, in order to evaluate their 

independence;

•  recommends to the Board a succession policy, 

both for the members of the board and for the 

•  oversees the annual evaluation process of the 

Board of Directors’ activity.

executive team;

•  supervises the process of annual evaluation of 

the effectiveness of the Council and its advisory 

committees;

•  periodically assesses the size, composition 

and Committee’s structure and makes 

recommendations to the Board with regard to 

any changes;

•  advises the Board on continuous skill 

development programmes for Board members 

and executive management;

•  oversees the nomination process of the 

appointment of subsidiaries’ CEOs and executive 

managers according to the nomination and 

remuneration policy.

The Nomination and Remuneration 
Committee met 20 times during 2023, among 
the main aspects on which the activity of the 

Committee focused, were the following:

•  Analysis of ELSA executive managers’ KPIs 

achievement for 2022 and establishing of the 

KPIs for 2023; 

•  Supervising the evaluation process of the Board 

of Directors’ activity during 2023;

•  Endorsing the proposals regarding the 

nomination of ELSA Managers and of the 

subsidiaries’ Board members;

•  Endorsement of the Remuneration Policy for the 

Company’s Directors and Executive managers;

The Committee has the following duties a 
regarding remuneratione:

The Audit and Risk Committee

The Committee is composed of three non-executive 

• advises the Board in relation to the 

BoD members, two of them being independent. The 

remuneration, incentive and compensation 

Committee’s composition provided the necessary 

policies of the company;

expertise in finance and risk management, 

•  advises the Board regarding the periodic review 

of the remuneration policy for Board members 

and executive managers;

according to legal requirements.

The main role of the Committee is to support 

the Board in fulfilling its duties of verifying the 

•  advises the Board in relation to the remuneration 

efficiency of company’s financial reporting, internal 

of the CEO and other executive managers, 

including the main remuneration components, 

annual and long term performance objectives 

and regarding evaluation methodology;

control and risk management. While fulfilling this 

role, the Committee advises the Board regarding 

the assessment of the annual report and annual 

financial statements, whether the documents are 

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accurate, balanced and comprehensive and provide 

• makes recommendations to the Board on 

and assesses the associated risks regarding 

•  advises the Board in monitoring and assessing 

all the necessary information for the shareholders’ 

the appointment, rotation or dismissal of the 

such transactions.

evaluation of the financial performance. 

company’s external auditor;

The Committee has the following duties in terms of 

financial reporting:

•  examines and monitors the financial reporting 

process, the integrity of annual and interim 

financial statements, at standalone and 

consolidated levels, or of disclosures made by 

ELSA and its subsidiaries;

•  reviews press releases announcing financial 

or operational results related to or derived 

from such financial statements, as well as any 

financial information or earning guidance, to be 

provided to financial analysts or rating agencies, 

by analyzing the fairness and adequacy of the 

•  reviews the plan, activity and findings of the 

external auditor; 

•  assesses the independence and objectivity 

of the external auditor and monitors the 

compliance with relevant ethical and 

professional guidance, including the 

requirements on the rotation of audit partners;

•  monitors the application of the legal standards 

and generally accepted internal audit standards;

•  endorses the internal audit reports, the 

recommendations made by the internal 

auditors and the plans of measures for the 

implementation of the recommendations;

content and presentation of such statements or 

•  performs any other activities established by the 

information;

Board and the law;

•  regularly reviews the adequacy of the Group’s 

•  regularly reviews the adequacy of the key 

accounting policies;

•  reviewes the financial forecast policy of the 

internal control policies, including fraud 

detection and bribe prevention policies;

Company and recommends, to approval, 

•  reviews the operations between affiliated parties 

towards Board of Directors; 

•  reviews and advises the Board on whether the 

in accordance with a policy drafted by the 

Committee and approved by the Board;

content of the annual report, taken as a whole, 

•  analyzes the annual report prepared by 

represents a fair, balanced and understandable 

the Internal Audit Department and/or Risk 

account for shareholders and provides them 

Management, which evaluates the effectiveness 

with the information necessary to assess the 

of the internal control system within the Group.

Company’s performance.

Regarding the audit and internal control 
matters, the Committee has the following 
responsibilitiesi:

The Committee has the following responsibilities 

concerning risk management matters:

•  reviews regularly the main risks facing the 

company and the Group, recommending to the 

•  endorses, for the Board’s approval, the annual 

Board adequate policies for risks identification, 

plan at Group level, based on the annual risk 

mapping, management and mitigation;

assessment, as well as any significant changes 

to the plan and receives periodic reports on 

activities, important findings and follow-up of 

internal audit reports;

•  monitors the main categories of risks that are 

recorded annually in the management report 

in order to reduce them and to evaluate the 

efficiency of the risk management system within 

• periodically reviews the charter and internal 

the Group;

audit manual and submits them to the Board, for 

approval;

•  makes recommendations to the Board on 

financing methods, including proposals for 

• advises the Board on the appointment, dismissal 

contracting any type of loans and securities 

and remuneration of the Head of Internal Audit 

associated with these loans; 

Department;

•  makes recommendations to the Board regarding 

• monitors the adequacy, effectiveness and 

major economic transactions within the 

independence of the internal audit function;

authority of the General Meeting of Shareholders 

The Audit and Risk Committee met 31 times 

during 20233, among the main aspects on which 

the activity of the Committee focused, being the 

following:

•  Analysis of the financial statements of ELSA 

at standalone and consolidated level for the 

financial year of 2022, as well as the financial 

statements of company’s subsidiaries for the 

financial year of 2022, together with the financial 

auditor report and recommendations, issued 

during the auditing process;

•  ELSA’s budget execution, the consolidated 

budget execution and the quarterly financial 

results;

•  Monitoring of the internal audit plan for 2023 

and analysis of its achievement, as well as 

the reports submitted by the Internal Audit 

Department, proposing recommendations;

•  Monitoring the implementation of the 

recommendations made by the internal audit 

department.

The internal audit activity is carried out by a 

structurally separate organizational unit (the 

internal audit department), within the Company. To 

ensure the fulfilment of its main functions, it reports 

functionally to the BoD through the Audit and Risk 

Committee and administratively to the CEO.

The Strategy and Corporate Governance 
Committee 

The Committee is composed of three non-executive 

BoD members, holding the necessary expertise in 

performing the committee’s specific duties, two of 

them being independent. The Committee has the 

the Group’s performance in relation to the 

approved strategic plan, budgets, investment 

plans, industry trends, local and regional 

market trends, company’s competiveness and 

technological advances;

•  periodically reviews the overall strategic 

planning process, including the process of 

developing the medium-term strategic plan, 

makes recommendations on the issues that can 

be improved in strategic planning and provides 

feedback to the executive management;

•  makes recommendations to the Board 

regarding the proposed acquisitions, 

divestments, investment projects, joint-ventures 

and collaboration projects, especially assessing 

their alignment with the Group’s strategy;

•  performs any other activities or assume 

responsibilities regarding strategic matters 

which may be delegated periodically to the 

Committee by the Board.

Regarding the tasks of the Committee on 

restructuring, they mainly relate to the following:

•  reviews and makes recommendations to 

the Board with respect to the development 

and implementation of the Group’s overall 

restructuring plans and objectives, including any 

decision regarding the conduct or efficiency of 

core businesses;

•  regularly reviews the organizational structure 

and chart of the company, and makes 

recommendations to the Board in this regard;

•  performs any other activities or responsibilities 

on restructuring matters as may be periodically 

delegated to the Committee by the Board.

following duties in terms of strategy:

Also, the Committee has duties in terms of 

•  makes proposals to the Board on the 

development of the medium-term strategic 

plan, makes recommendations on the strategic 

direction, priorities and long term objectives of 

ELSA and its subsidiaries;

•  reviews management proposals on the Group’s 

consolidated annual budget, subsidiaries’ 

annual budgets, investment plans of the 

Group companies and makes relevant 

recommendations to the Board;

corporate governance:

•  oversees and monitors the company’s 

compliance with legal and contractual 

obligations on corporate governance, as well 

as other applicable corporate governance 

principles and makes recommendations to the 

Board;

•  regularly reviews the company’s Corporate 

Governance Code, the Charter of the Board 

of Directors and the company’s Articles of 

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Association and makes recommendations 

to the Board on relevant amendments to the 

company’s corporate governance policy and 

documentation;

Climate Governance and Public Policies 
Committee

The committee is made up of three non-executive 

members of the CA, two of them being independent. 

•  submits the Group Governance Policy to the 

The Committee component provided expertise and 

• (8) Ensuring the consistent, transparent 

• (12) Monitoring and assessing the 

communication on the material climate risks 

accomplishment rate of the key performance 

identified to all stakeholders, especially to 

indicators related to the climate goals, and 

investors and to the regulatory and supervisory 

issuing recommendations for the Board with 

authorities, if applicable. 

respect to the review of such goals, or to taking 

Board for approval and regularly reviews it 

understanding of threats and opportunities arising 

• (9) Defining a set of long-term performance 

sanctioning measures, as applicable; 

indicators and some key performance indicators 

• (13) Periodically reviewing the internal policies 

to help reaching the goal of ”zero impact of 

and regulations with an impact on the climate 

the greenhouse gas emissions caused by 

goals, and drafting recommendations intended 

the business of the Electrica Group on the 

for the Board in relation to the adequacy of the 

environment”, to be submitted to the Board for 

investment level within the Group, as those are 

approval; 

necessary to reach the climate goals within the 

• (10) Conveying some recommendations with 

set timeframe; 

respect to setting the annual targets for the key 

• (14) Ensuring a climate of trust, by cooperating 

performance indicators set for the executive 

with the investors in order to understand 

management, following consultations with 

their topics of interest and priorities, with the 

the executive management and after having 

purpose of accomplishing an effective climate 

obtained the latter’s commitment; 

governance. 

• (11) Ensuring the alignment of the methods for 

The Climate Governance and Public Policies 

rewarding the executive management in order 

Committee met 6 times during the year 2023, 

to promote the Company’s sustainability and 

among the main aspects on which the Committee’s 

welfare, on the long term. The Committee shall 

activity was focused, including the following: 

consider issuing some recommendations to 

include the key indicators related to climate 

goals within the reward schemes included in the 

Remuneration Policy for Directors and Executive 

Managers; 

– ESG Electrica score report analysis;

– Request to establish the assigned 

responsibles for the implementation of the 

ESG strategy at Group level;

– Endorsement of the Sustainability Strategy 

of the Electrica Group, 2024-2030

thereafter;

from climate change.

•  reviews the company’s Delegation of Authorities 

policy and the company’s Delegation of 

Authority standard in order to ensure that the 

delegation of authorities to management allows 

for effective and efficient decision-making 

process, and makes recommendations to the 

Board in this respect;

•  reviews the company’s policy for corporate 

social responsibility and stakeholder 

engagement, and makes recommendations to 

the Board in this regard;

•  makes recommendations to the Board on 

improving the quality of information flows to 

the Board, including the improvement of reports 

sent, key performance indicators presented 

to them, and guidelines for preparing Board 

documents and presentations;

•  drafts reports or materials related to corporate 

governance, upon the Board request.

The committee has the following responsibilities:

• (1) Ensuring the preparation, at Electrica Group 

(the Group) level, of the framework required 

for implementing initiatives contributing to 

compliance with the EU objective of zero 

greenhouse gas emissions by 2050, at national 

level; 

• (2) Implementing at Group level the Principles 

of the World Economic Forum for an effective 

climate governance, while using corporate 

governance for company transition towards a 

low carbon emission economy; 

• (3) Ensuring long-term resilience for the 

companies of the Group in terms of potential 

structural changes of the business environment 

triggered by the climate changes; 

• (4) Providing an optimal mix of know-how, 

relevant experience, and capacity to justify the 

debates – all necessary for the decision-making 

During the year 2023, the Committee met 30 times, 

process within the Board, based on a proper 

among the main aspects on which the activity of the 

knowledge and understanding of the threats 

Committee focused, being the following:

and opportunities that arose as a result of the 

•  Analysis of the opportunities and the efficiency 

climate changes; 

of investments in different renewable production 

• (5) Establishing the most effective way of 

capacities and participation in various 

competitive processes in this regard; 

integrating considerations pertaining to climate 

change within the organisational structures of 

•  Endorsement of the amendments to the ELSA’s 

the Company; 

Articles of Association; 

• (6) Monitoring the provision of a continuous 

•  Endorsement of the Revenue and Expenditure 

assessment process by the executive 

Budget for the year 2023;

•  Analysis of the revision of the Electrica Corporate 

Strategy 2024-2030;

•  Endorsement of the Corporate Human Resources 

Strategy 2024-2026(2030);

•  Endorsement of the of changes to the 

Organization Chart;

•  Endorsement of the Project and the Merger 

Process through the absorption of some 

companies (EPE, GECI and EEV1).

management, as well as the materiality of the 

risks and opportunities deriving from climate 

reasons for the Company on a short, medium, 

and long term; 

• (7) Ensuring a permanent exchange of opinions 

and a continuous dialogue within the industry, 

with the decision-makers in terms of public 

policies, with the investors, and the other 

stakeholders in order to encourage the joint use 

of relevant methodologies and the exchange of 

information; 

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4.6  ELSA’s Executive management

In accordance with ELSA’s Articles of Association, the Board of Directors (BoD) appoints and revokes the CEO, 

More details on the in place executive managers’ biographies can be found on ELSA’s website in the section 

as well as the other executives with mandates and also approves their empowerments.

- https://www.electrica.ro/en/investors/corporate-governance/executive-management/.

The duties of the company’s directors (including those of the Managing Director) are laid down in the 

According to the information held by ELSA, there is no contract, understanding or family relationship 

mandate contracts on the basis of which the directors carry out their activities within ELSA, ELSA’s internal 

between the executive managers of the Company and another person who may have contributed to their 

rules of organisation and operation and the applicable legal provisions.

appointment as executive managers.

During the meetings held on 27 February 2023, 26 April 2023, 24 August 2023, 14 December 2023 and 22 

According to available information, ELSA’s executive managers mentioned in this chapter have not been 

January 2024, the ELSA Board of Directors decided to extend the term of office granted to Mr. Alexandru - 

involved, in the last five years, in any litigations or administrative proceedings related to their activity within 

Aurelian Chirita, as interim CEO, under the same conditions. Mr. Chirita’s CEO mandate currently lasts until 31 

the company and neither to their capacity to fulfil their work-related duties in the Group.

December 2024 (inclusively).

During the meeting held on 27 February 2023, the ELSA Board of Directors decided to extend the term of 

office granted to Mr. Stefan - Alexandru Frangulea, as interim Chief Financial Officer, for a period of 2 years, 

until 27 February 2025 (inclusively). Mr. Frangulea’s CFO mandate currently lasts until 27 February 2024 

(inclusively).

At its meeting of 14 March 2023, the ELSA Board of Directors decided to appoint Ms. Ioana - Andreea Lambru 

as Executive Director of the Business Development Department, starting from 15 March 2023, for a period of 4 

years.

On 27 June 2023, the Board of Directors took note of the fact that on 1 June 2023, the contract of mandate of 

the Director of Information Technology, Mr. Mircea Modran, effectively terminated on the expiry of the four-

year term.

Following these changes, during 2023, ELSA’s executive directors, appointed under the terms of office, are 

presented in the table below.

Table 12. ELSA’s Executive management during 2023, appointed on the basis of mandate contracts 

Name

Function

The Executive Manager’s mandate

Alexandru-Aurelian Chirita

Chief Executive Officer

17 May 2022 – 31 March 2024

Stefan Alexandru Frangulea Chief Financial Officer

4 January 2022 – 27 February 2025

Livioara Sujdea

Chief Distribution Officer

1 February 2017 – 31 January 2021, the 
mandate being renewed for a period of  
4 years, respectively 1 February 2021 -  
31 January 2025

Mircea Toma Modran

Chief IT & C Officer 

1 June 2019 - 1 June 2023

Ioana Andreea Lambru

Business Development Officer

15 March 2023 – 14 March 2027

Source: Electrica

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   Alexandru-Aurelian 
   Chiriță

•  Chief Executive Officer (CEO)
• 
•  Starting on 2 June 2023 - Interim Chief Information 

17 May 2022 – 31 December 2024

Officer (CIO)

   Ștefan-Alexandru 
   Frangulea

•  Chief Financial Officer (CFO)
•  04 January 2022 – 27 February 2025

Starting with 4 January 2022, Mr. Ștefan 
Alexandru Frangulea has taken over the position 
of Chief Financial Officer, his mandate being until 
27 February 2025 (inclusively).

Ștefan-Alexandru Frangulea has 20 years 
of experience in the financial-banking and 
energy sectors, in areas such as: corporate 
banking, corporate treasury, corporate finance, 
strategy, financial and capital markets, general 
management, business development, having 
held various executive and management 
positions.

A graduate of the Academy of Economic 
Studies, Finance, Banking, Insurance and Stock 
Exchanges as well as the professional Executive 
MBA programs of the Wirtschaftsuniversität Wien 
(WU) and IEDC Bled School of Management, 
Ștefan joined the Electrica team in February 
2018 as Director of the Department Treasury, 
Debt Collection and Credit Risk Management, 
subsequently changed following the 
modification of the organizational chart to 
Director of the Treasury Department (Head of 
Treasury).

Ștefan-Alexandru Frangulea is one of the 
founding members and currently Vice-President 
of the Board of Directors of the Association of 
Treasurers from Romania (ATR), the professional 
organization of corporate treasurers in our 
country, affiliated to the European Association of 
Corporate Treasurers (EACT) and International 
Group of Treasury Associations (IGTA). Also he 
is a member of the Association of Independent 
Administrators from Romania.

Alexandru Chiriță is a professional with a 
substantial experience in the legal and energy 
fields. He earned his Bachelor’s degree from the 
Faculty of Law at the University of Bucharest 
in 2008, and subsequently dedicated nearly a 
decade to practicing law.

Throughout his career, he has amassed 
comprehensive expertise in consultancy on 
various legal matters, encompassing corporate 
law, commercial transactions, and litigation. His 
profound understanding of legal frameworks, 
coupled with his aptitude for devising and 
executing effective legal strategies, has been 
instrumental in achieving organizational 
objectives.

Alexandru Chiriță’s multidisciplinary background 
is evident in his academic accomplishments. He 
holds a Master’s degree in Law and European 
Governance from the National School of Political 
and Administrative Studies (SNSPA), a Master’s 
degree in European Union Law, and a Bachelor’s 
degree in Law from the Faculty of Law at the 
University of Bucharest. He is currently pursuing a 
Doctorate in Administrative Sciences at SNSPA.

As an active member of the professional 
community, Alexandru Chiriță participates in 
several organizations, such as The International 
Association of Privacy Professionals, the 
European Law Institute, the United Nations 
Association of Romania, and the Romanian 
Arbitration Institute.

Before joining Electrica, he held the positions of 
Legal Manager and Data Protection Manager at 
Hidroelectrica. In these capacities, he formulated 
and executed legal and data protection 
strategies, ensuring compliance with regulatory 
mandates, managing litigation and disputes, 
and supervising contract negotiations. His legal 
acumen and experience have proven invaluable 
in his role as CEO of Electrica, a position he has 
held since May 2022.

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   Ioana Andreea Lambru

•  Chief Business Development Officer (CBDO)
• 

15 March 2023 – 14 March 20277

Starting from March 15, 2023, Ms. Ioana-Andreea 
Lambru took over the position of Business 
Development Executive Officer, for a period of 4 
years.

Ms. Lambru is a graduate of the Faculty of 
International Financial-Banking Relations at the 
Romanian American University.

With over 10 years of professional experience 
in public administration, Ms. Ioana-Andreea 
Lambru was, for the last 6 years before joining 
the Electrica team, the Chair of the Supervisory 
Board of Hidroelectrica company.

   Livioara Şujdea

•  Chief Distribution Officer
• 
•  Starting on 3 January 2022 - Interim Chief People 

1 February 2017 – 31 January 2025

Officer (CPO)

Starting from 1 February 2017, Ms. Livioara Şujdea 
took over the position of Distribution Executive 
Director, for a period of 4 years. Following her 
reconfirmation in this role, Ms. Şujdea’s second 
mandate began on 1 February 2021, for another 
period of 4 years. Between 2017 and 2021, she 
was a Member of the Boards of Directors of the 
Electrica’s Group Distribution companies.

With over 26 years of experience in the energy 
field, of which, 15 years in top management 
positions within large electricity and gas 
companies, Livioara Șujdea previously held 
various positions including Deputy General 
Director and Board Member of E .ON Moldova 
Distributie, E.ON Gas Distributie, E.ON Distributie 
Romania, Director of Operation and Maintenance 
in Delgaz Grid, Deputy General Director and 
Board Member at E.ON Energie.

Livioara Șujdea is a graduate of the “Gheorghe 
Asachi” Technical University in Iasi – Faculty of 
Electrical Engineering, majoring in Energetics, 
where she also holds a master’s degree in 
management and Commercial Engineering. 
She also holds an Executive MBA specializing 
in General Management at the University 
of Sheffield UK and a Diploma in Strategic 
Management and Leadership at the Chartered 
Management Institute London UK (CMI).

Livioara Șujdea has extensive experience in 
corporate reorganization, mergers and post-
merger integration, business optimization, 
regulatory affairs, transformation processes, 
operational excellence, change management 
and performance management.

She is a member of the Professional Women 
Network and the Association of Independent 
Administrators, she graduated the 
Competencies for Effective Boards Program, 
Women on Boards Academy, The Henley Board 
Program, Saïd Business School, University of 
Oxford Artificial Intelligence Programme and 
Organizational Leadership at ESMT Berlin.

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4.7  Remuneration of the Directors and of the Executive 
Managers with mandate agreements

Table 13. ELSA’s compliance with the provisions of the BSE Corporate Governance Code

No.

 Provisions of the BSE Corporate
Governance Code

Other remarks

The remuneration of administrators and executive 

The remuneration policy has the following 

directors within Electrica is carried out in 

objectives urmatoarele obiectivele:

Section A

Responsibilities

accordance with the provisions of the Remuneration 

Policy for Administrators and Executive Directors 

(Policy) which was approved by the Ordinary 

General Meeting of Shareholders (AGOA).

The last revision of the Policy was approved during 

the AGOA on 27 April 2023 without any changes to 

the remuneration limits previously established by 

the GMS for Directors and Executive Directors. The 

amendments cover some additions, in order to 

present in a transparent manner, the elements of 

fixed and variable remuneration, including financial 

and non-financial benefits, in any form, which are 

granted to the directors. 

In developing the Remuneration Policy, good 

practices used internationally and nationally for 

similar companies were taken into account, as 

identified after the listing of the company. 

The remuneration policy for directors and executives 

is reviewed annually by the NRC and describes the 

main pillars of remuneration, as well as the terms, 

conditions and non-financial benefits approved by 

ELSA’s corporate bodies.

•  setting clear remuneration thresholds and 

guidelines;

•  establishing the remuneration structure;

•  ensuring the correlation between the 

remuneration levels within ELSA.

Starting with 2022, the Company has prepared and 

published annually the Remuneration Report for 

Directors and Executive Directors , in accordance 

with the provisions of Law 24/2017 on issuers of 

Financial instruments and market operations. The 

annual Report is approved at the Electrica Ordinary 

General Meeting of Shareholders (OGMS) (https://

www.electrica.ro/en/investors/general-meetings-

of-shareholders/), with the aim of presenting an 

overview of the remuneration and benefits granted 

and/or owed during the last financial year, to the 

managers individually, including new recruits 

and former managers in accordance with the 

Company’s remuneration Policy.

4.8  Statement regarding the corporate governance 
“Comply or Explain” 

The  present  Statement  reflects  ELSA’s  status  of 

column has been removed from the table below. Also, 

compliance with the new BSE Corporate Governance 

since the Compliance status is YES in all sections, the 

Code as of 29 February 2024.

column  „YES/NO/PARTIALLY”  is  no  longer  present  in 

the table below:

Note: considering the fact that there are no mentions 

for “Reason for non-compliance”, the corresponding 

A.1.

All companies must have an internal 
Board regulation which includes the 
terms of reference/responsibilities of 
the Board and the key management 
functions of the company, and which 
applies, among other things, the General 
Principles of this Section.

•  The company had elaborated ever since February 2015 
ELSA’s Corporate Governance Code (ELSA’s CGC) that 
included the Articles of Association of the Company, the 
rules of organization and functioning of the BoD and of 
its committees. All these documents mentioned above 
contain the terms of reference/the responsibility of BoD, 
as well as those of the key management functions of 
the company.

•  In 2016, the Board carried out an extensive project 

to review the Articles of Association and the 
above-mentioned regulations in order to detail the 
responsibilities of the Board, of its committees and 
of the management team, taking into account the 
recommendations made in the Evaluation Report of the 
Board’s activity in the previous year.

•  In recent years, these documents have undergone 
successive revisions to align with domestic and 
international best practices.

•  In 2022, the Board of Directors (“BoD”) started a project 

to revise the Articles of Association of Societatea 
Energetica Electrica S.A. with the purpose of increasing 
corporate governance standards, focused on: ï ensuring 
full compliance with all relevant legal provisions, 
especially by referring to the legislative changes that 
occurred after the last general review of the Articles 
of Association; ï clarifying the provisions susceptible 
to interpretations and, implicitly, generating a risk of 
non-compliance; ï incorporating the latest unbundling 
trends and practices.

•  At the same time, an internal consultation process 
was carried out regarding the amendment of the 
Articles of Association. The resulted proposed changes, 
in principle, aim to: - the addition of CAEN codes 
necessary for Electrica to provide a series of services 
for the benefit of its subsidiaries; - the correlation, 
from a terminological point of view, of the provisions 
of the Articles of Association with the changes in the 
legislation specific to the capital market; - aligning 
the provisions of the Articles of Association with the 
relevant legal provisions, especially by referring to the 
legislative changes that occurred after the last general 
revision of the Articles of Association; - updating with 
provisions regarding all the committees organized 
within the BoD, respectively regarding the Strategy and 
Corporate Governance Committee; - clarification of the 
granting of mandates necessary to express the vote in 
the general shareholders’ meetings of the subsidiaries 
directly owned by the Company; - flexibility of the 
decision-making mechanism, etc. 

•  The most recent versions of the Articles of Associations, 

ELSA’s CGC and the Charter of the BoD and its 
Committees are available on the company’s website in 
the section Investors -> Corporate Governance.

•  The last update of ELSA’s CGC took place in July 2020, 

and the last update of the Articles of Association was on 
22 November 2023.

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No.

 Provisions of the BSE Corporate
Governance Code

Other remarks

No.

 Provisions of the BSE Corporate
Governance Code

Other remarks

A.2.

A.3.

A.4.

Provisions for the management of 
conflict of interest should be included in 
the Board regulation.

Such provisions are mentioned in ELSA’s CGC, in the Articles 
of Association, in the Code of Ethics and Professional 
Conduct, and in the BoD organization and functioning 
regulation.

The current version of the Code of Ethics and Professional 
Conduct entered into force on 1 January 2022 and is 
available on the company’s website in the section Investors 
-> Corporate Governance -> Corporate policies and other 
documents

The Board of Directors must consist of at 
least five members.

ELSA’s BoD consists of seven members since 14 December 
2015.

The majority of the members of the 
Board of Directors must have no 
executive function. In the case of 
Premium Companies no less than two 
non-executive members of the Board of 
Directors should be independent. Each 
independent member of the Board of 
Directors should submit a declaration 
at the time of its nomination for election 
or re-election as well as when any 
change in its status occurs, indicating 
the elements on the basis of which it is 
considered independent in terms of its 
character and judgement and according 
to the following criteria: 

A.4.1. is not the General Manager/
Executive Director of the company or a 
company controlled by it and has not 
held such a position for the past five (5) 
years; 

A.4.2. is not an employee of the company 
or a company controlled by it and has 
not held such a position for the past five 
(5) years; 

A.4.3. does not and did not receive 
additional remuneration or other 
advantages from the company or from 
a company controlled by it, other than 
those corresponding to the quality of a 
non-executive director;

 A.4.4. is not or has not been an 
employee or has not had a contractual 
relationship, during the previous year, 
with a significant shareholder of the 
company, shareholder who controls 
more than 10% of voting rights or with a 
company controlled by him; 

All the members of ELSA’s BoD are non-executive. 
According to the Articles of Association, at least four out of 
seven members must be independent. The independence 
criteria stipulated in the Articles of Association are similar 
and even more restrictive than those in the BSE’s Corporate 
Governance Code. Currently, four out of seven members 
are independent. All independent members submitted 
a declaration of independence, at the time of their 
appointment by the OGMS. Details can be found in their 
biographies, available on the company’s website, in the 
Investors > Corporate Governance section > the Board of 
Directors.

A.4.5. does not have and did not 
have in the previous year a business 
or professional relationship with the 
company or with a company controlled 
by it, either directly or as a customer, 
partner, shareholder, member of the 
Board/Administrator, General Manger/
Executive Director or employee of a 
company if, by its substantial nature, this 
report may affect its objectivity; 

A.4.6. is not and has not been for the 
last three years the external or internal 
auditor or partner or associate employee 
of the current external financial or 
internal auditor of the company or a 
company controlled by it; 

A.4.7. is not the general manager/
executive director of another company 
where another general manger/
executive director of the company is a 
non-executive director; 

A.4.8. has not been a non-executive 
director of the company for more than 
twelve years; A.4.9. has no family ties to 
a person in the situations mentioned in 
points A.4.1. and A.4.4..

Other relatively permanent professional 
commitments and obligations of a Board 
member, including executive and non-
executive Board positions in companies 
and not-for-profit institutions, must be 
disclosed to shareholders and potential 
investors before appointment and during 
his/her term of office.

The professional background of the proposed candidates, 
as well as of the current Board members are available 
on ELSA’s website in the Investors > General Meeting 
of Shareholders > 2024 GMS > General Meeting of 
Shareholders as of 26 January 2024 section. Their 
biographies contain all the relevant information requested 
by this provision of the Code. The updated biographies 
of each member of the Board are presented annually in 
the Directors’ Report and on the company’s website in 
the section Investors > Corporate Governance > Board of 
Directors.

Any member of the Board should 
submit to the Board information on 
any relationship with a shareholder 
who holds, directly or indirectly, shares 
representing more than 5% of all voting 
rights.

When a Board member has entered into a relation with 
a shareholder who directly or indirectly holds shares 
representing more than 5% of all voting rights, he/she 
promptly informed the entire Board.

The company should appoint a Board 
secretary responsible for supporting the 
Board’s work.

The company has established the General Secretary 
Department, which is directly subordinated to the Board of 
Directors.

The corporate governance statement 
will inform whether an evaluation of 
the Board has taken place under the 
leadership of the chair or the nomination 
committee and, if so, will summarize the 
key measures and changes resulting 
from it. The company should have a 
policy/guide regarding the evaluation of 
the Board including the purpose, criteria 
and frequency of the evaluation process.

This provision was applied starting with 2015, the BoD 
carrying out an annual assessment process of its activity 
with the support of an external consultant (in 2015, 2017, 
2020 and 2022), or using a self-assessment questionnaire 
(in 2016, 2018, 2019 and 2021).

More details are provided in the 2015-2017 Annual Reports 
in chapters 6.1 and 6.2, for 2018 and 2019, 2020, 2021 2022 
and 2023 in chapter 4.5..

A.5.

A.6.

A.7.

A.8.

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No.

 Provisions of the BSE Corporate
Governance Code

Other remarks

No.

 Provisions of the BSE Corporate
Governance Code

Other remarks

A.9.

A.10.

A.11.

The corporate governance statement 
must contain information on the number 
of meetings of the Board and committees 
during the last year, directors’ attendance 
(in person or absent) and a report of the 
Board and committees on their activities.

Details regarding the compliance with this provision 
are presented in the Annual Report, in the Corporate 
governance chapter. For 2023, please see chapter 4.5. of 
the Annual Report.

The corporate governance statement 
must contain information on the exact 
number of the independent members of 
the Board of Directors.

The Board of Premium Companies 
must set up a nomination committee 
of non-executive members that will 
lead the procedure of nomination of 
new members to the Board and will 
make recommendations to the Board 
on the appointment and the revocation 
of the Chief Executive Officer and the 
management team. The majority of the 
members of the nomination committee 
must be independent.

Four out of seven members of the BoD are independent 
and this is specified in the Annual Report. More details are 
provided in the Annual Report for 2023 in chapter 4.4.

On ELSA’s website, in the section Investors > Corporate 
Governance > Board of Directors, it is specified exactly 
which members are independent.

The Articles of Association and ELSA’s CGC highlight 
the existence of this committee (Nomination and 
Remuneration Committee - NRC), its members and 
responsibilities. 

The NRC composition is reviewed annually, in accordance 
with the NRC organization and functioning regulation 
(Charter) and at the beginning of each new mandate 
of a new member of the BoD. In May 2021, its structure 
was revised according to the changes that occurred 
in the board structure. According to the NRC’s Charter, 
in December 2021 the current structure of the NRC was 
established, two of the members being independent.

In 2023, the RNC component established in 2022 was 
squared. Following the election of new members in BoD 
Electrica in January 2024, starting February 12, 2024, NRC 
has a new component. Details of the composition of the 
RNC are given in Chapter 4.4. of the Annual Report for 2023.

Section B

Risk management and internal control 
system

B.1.

The Board must set up an audit 
committee in which at least one 
member must be an independent 
non-executive director. A majority of 
members, including the Chair, must 
have proven that they are adequately 
qualified relevant to the functions and 
responsibilities of the committee. At least 
one member of the audit committee 
must have proven and appropriate 
audit or accounting experience. In the 
case of Premium Companies, the audit 
committee must consist of at least three 
members and the majority of the audit 
committee must be independent.

The Articles of Association and ELSA’s CGC highlight the 
existence of this committee (Audit and Risk Committee - 
ARC), its structure and responsibilities.

The ARC structure is reviewed annually, according to ARC 
Charter and at the beginning of each new mandate of the 
BoD.

In May 2021, its structure was revised according to changes 
in the BoD structure. In accordance with the ARC Charter, 
the current composition of the ARC was voted in December 
2021, in which two of the members are independent, and 
was held until 1 August 2023. Starting 1 August 2023 a 
new composition of the ARC started its mandate until 26 
January 2024. Following the election of new members in 
BoD Electrica in January 2024, starting February 12, 2024, 
ARC has a new component. Details are presented in 
chapter 4.4..

B.2.

The Chair of the audit committee must 
be an independent non-executive 
member.

On the 6 May 2021 and subsequently, on 15 December 
2021 and on 20 December 2022, Mr. Radu Mircea Florescu, 
independent non-executive board member was elected 
and respectively re-elected as Chair of the Audit and Risk 
Committee. Mr. Florescu was Chair until 26 January 2024.

At the date of this Report, the Chair of the Audit and Risk 
Committee is Ms. Valetina Elena Siclovan starting with 12 
February 2024.

B.3.

B.4.

B.5.

Among its responsibilities, the audit 
committee must carry out an annual 
assessment of the internal control 
system.

The assessment must consider the 
effectiveness and purpose of the 
internal audit function, the adequacy 
of risk management and internal 
control reports submitted to the audit 
committee of the Board, the promptness 
and effectiveness with which the 
executive management solves the 
deficiencies or weaknesses identified as 
a result of the internal control and the 
submission of relevant reports to the 
Board’s attention.

The audit committee must assess 
conflicts of interests in connection with 
the transactions of the company and its 
subsidiaries with related parties.

B.6.

The audit committee must assess the 
effectiveness of the internal control 
system and risk management system.

According to the organization and functioning regulation, 
the Audit and Risk Committee (ARC) has the following 
responsibilities on internal control issues:

(i) regularly review the adequacy and implementation of 
key internal control policies, including fraud detection and 
bribery prevention policies; 

(ii) reviewing related parties transactions in accordance 
with a policy developed by the Committee and approved 
by the Board; 

(iii) analysis of the annual report prepared by the Internal 
Audit Department and/or Risk Management Department 
assessing the effectiveness of the internal control system 
within the Group.

Such reports are annually presented. The assessment 
report for 2022 specified in the CGC was presented and 
discussed by the Audit and Risk Committee in the meeting 
on 28 February 2023. 

The 2023 report will be discussed during the meeting on 
29 April 2024.

The assessment is carried out annually. The assessment 
report for 2022 specified in the CGC will be presented and 
discussed by the Audit and Risk Committee during at its 
meeting on 24 March 2023. 

The date of analysis of the report in question has not been 
set for the 2023 Report.

The ARC has at least the following responsibilities on risk 
management issues:

(i) regularly review of the main risks to which the company 
and the Group are exposed, recommending to the Board 
appropriate policies for identifying, mapping, management 
and risk reduction;

(ii) annual analysis of a management report that assesses 
the effectiveness of the risk management system within the 
Group.

Based on the ARC Charter’s provisions, the evaluation 
report for the year 2022 was presented and discussed by 
the Audit and Risk Committee at its meeting on 27 February 
2023. 

Based on the ARC Charter’s provisions, the evaluation 
report for the year 2023 was presented and discussed by 
the Audit and Risk Committee at its meeting on 28 February 
2024. 

Details regarding the ARC activity for year 2023 are 
presented in chapter 4.5 of the Annual Report.

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Section C

Fair rewards and motivation

B.7.

B.8.

B.9.

B.10.

B.10.

B.11.

B.12.

The audit committee must monitor 
the application of legal standards 
and generally accepted internal audit 
standards. The audit committee must 
receive and assess the reports of the 
internal audit team.

Whenever the Code mentions reports 
or analysis initiated by the Audit 
Committee, these must be followed 
by regular (at least annual) or ad-hoc 
reports to be submitted to the Board 
afterwards.

No shareholder may be granted 
preferential treatment over other 
shareholders with regards to 
transactions and agreements concluded 
by the company with shareholders and 
their related parties.

The Board must adopt a policy to ensure 
that any transaction of the company 
with any of the companies with which 
it has close relations whose value is 
equal to or more than 5% of the net 
assets of the company (according to 
the latest financial report), is approved 
by the Board following a mandatory 
opinion of the Board’s audit committee 
and fairly disclosed to shareholders 
and potential investors, to the extent 
that these transactions fall under the 
category of events subject to reporting 
requirements.

Internal audits must be carried out by 
a separate structural division (internal 
audit department) within the company 
or by hiring an independent third-party 
entity.

In order to ensure the performance 
of the main functions of the internal 
audit department, it must report 
functionally to the Board through the 
audit committee. For administrative 
purposes and within the framework of 
management’s obligations to monitor 
and reduce risks it must report directly to 
the chief executive officer.

The ARC has the following responsibilities on internal audit 
issues: 

(i) approval of an annual audit plan at Group level, based 
on an annual risk assessment, as well as any significant 
changes to the plan and receipt of periodic reports on 
activities, key findings and follow up of internal audit 
reports;

(ii) advising the Board on the appointment, revocation and 
remuneration of the Head of Internal Audit Department;

(iii) monitoring the adequacy, effectiveness, and 
independence of the internal audit function.

Details regarding the ARC activity are presented in 
chapter 4.5 of the Annual Report.

ARC reports periodically to the BoD.

C.1.

Provisions on this matter are included in ELSA’s CGC and in 
the Policy on Transactions with Related Parties.

The Policy regarding the transactions with Related Parties, 
has been updated in July 2020 and covers all the required 
aspects.

The internal audit is carried out by the Internal Audit 
Department, a structurally separate entity.

The Internal Audit Department reports functionally to the 
BoD through the ARC, while administratively reports to the 
CEO.

The company must publish on its 
website the remuneration policy, and 
include in its annual report a statement 
of the remuneration policy during 
the annual period under review. The 
remuneration policy must be formulated 
in such a way as to allow shareholders 
to understand the principles and 
arguments underlying the remuneration 
of the members of the Board and the 
CEO, as well as the members of the 
Management Board in two-tier board 
systems. It should describe how the 
process is managed and decision-
making on remuneration, detail the 
components of executive management 
remuneration (such as salaries, annual 
bonus, long term incentives related to 
the value of shares, benefits in kind, 
pensions, and others) and describe the 
purpose, principles and assumptions 
underlying each component (including 
general performance criteria for any 
form of variable remuneration). In 
addition, the remuneration policy must 
specify the duration of the executive 
manager’s contract and the notice 
period provided for in the contract as 
well as any compensation for revocation 
without just cause. The remuneration 
report must present the implementation 
of the remuneration policy for the 
persons identified in the remuneration 
policy during the annual period under 
review.

Any essential change in the 
remuneration policy must be published 
in a timely manner on the company’s 
website.

In accordance with Law 24/2017, as amended and 
subsequently supplemented by Law no. 158/2020 (Art.92 
^ 1), on 28 April 2021, ELSA GMS approved the updated 
Remuneration Policy for Directors and Executive Managers, 
in which all the aspects stipulated by this statement 
are detailed. This policy was subsequently updated and 
approved by the OGMS on 20 April 2022.

The Remuneration Policy for Directors and Executive 
Managers is available on ELSA website, under Investors 
> Corporate Governance > Corporate Policies and other 
documents.

In previous years, issues related to the implementation 
of the Remuneration Policy were presented in the annual 
report. For the year 2021 ELSA has prepared a report on the 
remuneration of the administrators and executive directors 
to be submitted to the consultative vote of the ELSA GMS, 
according to the applicable legislative provisions. Also, for 
2022, this report will be submitted for the consultative vote 
of the OGMS on 27 April 2023. Also, for 2023, this report will 
be submitted to the consultative vote of the GSM on 25 
April 2024.

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Section D

Building value through investors’ 
relations

The company must have an Investor 
Relations function – indicating to the 
public the person(s) responsible or the 
organizational unit. In addition to the 
information required by legal provisions, 
the company must include on its website 
a section dedicated to Investor Relations, 
both in Romanian and English, with 
all relevant information of interest to 
investors, including:

D.1.1. Main corporate regulations: the 
articles of association, the procedures 
regarding the general meetings of 
shareholders.

D.1.2. Professional CVs of members of the 
company’s management bodies, other 
professional commitments of the board 
members, including executive and non-
executive positions on board of directors 
of companies or non-profit institutions

D.1.3. Current and periodic reports 
(quarterly, semi - annual and annual 
reports);

D.1.4. Information related to general 
meetings of shareholders; D.1.5. 
Information on corporate events;

D.1.6. The name and contact details of 
a person who should be able to provide 
relevant information upon request;

D.1.7. Corporate presentations (e.g. 
investors presentations, quarterly results 
presentations, etc.), financial statements 
(quarterly, semi - annual, annual), audit 
reports and annual reports.

The company will have a policy on the 
annual distribution of dividends or other 
benefits to shareholders, proposed 
by the CEO or the Management Board 
and adopted by the Board, in the 
form of a set of guidelines that the 
company intends to follow regarding the 
distribution of net profit. The principles 
of the annual distribution policy to 
shareholders will be published on the 
company’s website.

D.1.

D.2.

The company has both an Investor Relations department 
and a section dedicated to Investor Relations on its website 
(in both Romanian and English). All relevant information for 
investors is published under the Investors section on ELSA’s 
website.

Electrica was appreciated for the third consecutive year 
in 2022 with the maximum grade in the Vektor evaluation, 
Vektor being the indicator of the communication with 
investors for listed companies

The BoD last revised the Dividends Policy at its meeting 
on 24 May 2022. It is published on ELSA’s website, in the 
Investors > Corporate Governance > Corporate Policies and 
other documents section.

The company will adopt a policy 
regarding the forecasts, whether they 
are made public or not. The forecasts 
refer to quantified conclusions of studies 
aimed at determining the overall impact 
of a number of factors for a future 
period (so called assumptions): by its 
nature, this projection has a high level 
of uncertainty, the actual results may 
differ significantly from the forecasts 
initially presented. The forecast policy 
will determine the frequency, period 
envisaged and the content of the 
forecasts. Forecasts, if published, may 
only be part of annual, semi -annual or 
quarterly reports. The forecast policy 
should be published on the company’s 
website.

The rules of general meetings of 
shareholders should not limit the 
participation of shareholders in general 
meetings and the exercise of their rights. 
Changes to the rules will take effect 
at the earliest, starting with the next 
general meeting of shareholders

The BoD last revised the Forecasts Policy in its meeting 
on 14 February 2018. It is published on ELSA website, in the 
Investors > Corporate Governance > Corporate Policies and 
other documents section.

ELSA rules and procedures that establish the framework 
for the organization and conduct of general meetings of 
shareholders are part of ELSA’s Policy on organizing and 
running the General Meetings of Shareholders, available 
from the beginning of 2020 and in its nmost updated form 
from August 2020, in electronic form on ELSA website in 
the section Investors > Corporate Governance > Corporate 
Policies and other documents.

Also, the rules of general meetings of shareholders 
are mentioned in each convening notice, published in 
accordance with the legal and statutory requirements 
approximately 45 days before each meeting.

Additionally, to facilitate the non-discriminatory 
participation of all shareholders to the GMS meetings, 
including remotely, Electrica implemented, starting with 
2022, a platform for participating and voting online for the 
GMS (for the shareholders that are present in the meeting 
room or remotely, through electronic means), system used 
in meetings.

The external auditors should attend the 
general meetings of shareholders when 
their reports are presented.

External auditors attend each OGMS in which the financial 
situations and annual reports are approved.

The Board will present to the annual 
general meeting of shareholders a 
brief assessment of the systems of 
internal control and significant risks 
management, as well as opinions on 
issues subject to the decision of the 
general meeting.

The directors’ annual report, presented to the annual 
general meeting of shareholders together with the 
financial statements, contains the BoD’s assessments 
on the systems of internal controls and significant risk 
management.

As a practice, all the documents subject of the GSM 
approval are endorsed by the BoD; this is clearly stated in 
the documents presented to the shareholders.

D.3.

D.4.

D.5.

D.6.

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actions on the following main directions: 

see chapter 4.4.

which the organization operates, through concerted 

members and the election of its members, please 

Any professional, consultant, expert 
or financial analyst may attend the 
shareholders’ meeting on the bases 
of a prior invitation from the Board. 
Accredited journalists may also attend 
the general meeting of shareholders, 
unless the Chair of the Board decides 
otherwise.

The quarterly and semi-annual financial 
reports will include information in both 
Romanian and English on key factors 
influencing changes in sales levels, 
operating profit, net profit and other 
relevant financial indicators, both from 
quarter to quarter as well as from one 
year to another.

A company will hold at least two 
meetings/teleconferences with analysts 
and investors each year. The information 
presented on these occasions will 
be published in the investor relations 
section of the company’s website at the 
date of the meetings/teleconferences.

If a company supports different forms 
of artistic and cultural expression, sport 
activities, educational or scientific 
activities, and considers that their 
impact on the innovative character and 
competitiveness of the company part of 
its mission and development strategy, 
it will publish the policy regarding its 
activity in this area.

D.7.

D.8.

D.9.

D.10.

Source: Electrica

In this respect, the agreement of the shareholders present 
at the General Meetings was requested each time it was 
the case.

 The quarterly and half-yearly financial reports can 
be consulted on the company’s website in the section 
Investors> Results and Reports> Financial results and fulfil 
all the requirements.

ELSA organizes quarterly teleconferences with analysts 
and investors and publishes presentations and audio 
recordings of the teleconference on the ELSA website, in the 
section Investors > Results and Reports > Presentations and 
other information.

Information regarding the CSR activities can be found 
online on the company’s website, in the CSR section. 

The projects and activities supported each year are 
presented in ELSA’s annual Sustainability Reports, available 
on the ELSA website, in the section CSR > Non-financial 
Reporting.

4.9  Implementing action plans undertaken by signing the  

framework agreement with EBRD

The company’s initial public offering and 

the sustainability principles at Group level.

dual listing process involved the signing of a 

framework agreement with the European Bank for 

As for the development of a culture of integrity 

Reconstruction and Development (EBRD), which 

and compliance at Electrica Group level, in line 

includes action plans aiming at key dimensions for 

with the EBRD standards, the year 2023 meant 

the company’s transformation: developing a culture 

maintaining the compliance framework from an 

of integrity and compliance, adopting best practices 

ethical perspective and updating it in accordance 

regarding corporate governance and incorporating 

with the evolutions of the social and legal context in 

•  maintaining the organizational structures 

dedicated to ethics and compliance;

Nomination and Remuneration Policies

•  monitoring the compliance in relation to the 

framework defined by the Code of Ethics and 

Professional Conduct and subsequent policies 

and procedures.

Having mainly a preventive role in relation to 

the risks to which the organization is exposed, 

compliance adds value to each business, 

but in order to be effective, the compliance 

framework must be adapted to the organization 

transformations and to be aligned permanently with 

legislative changes, external environment trends 

and business ethics’ best practices. 

The information and awareness activities regarding 

the provisions of the compliance framework from 

the ethical perspective of the organization’s staff 

were carried out exclusively through the online 

environment.

ELSA uses nomination and remuneration principles 

in accordance with best practices for the 

appointment and remuneration of directors and 

executive management. In this respect, the Profile 

of the Board of Directors and the Policy for recruiting 

and nomination of the candidates for executive 

management were elaborated. 

The remuneration policy for directors and executives 

of ELSA (Policy) is reviewed periodically by the 

nomination and remuneration Committee and 

describes the main pillars of remuneration as well 

as the terms, conditions and non-financial benefits 

approved by ELSA’s corporate bodies. 

As a result of the change of the European and 

national legal framework, according to the 

European Directive no. 828/2017, transposed into 

national legislation by Law no. 24/2017, as it was 

subsequently amended and supplemented by 

Law no. 158/2020 (Art.92^1). The Policy was revised 

Regarding the organizational structures dedicated 

and approved at the ordinary General meeting of 

to ethics and compliance, these exist at each 

shareholders (OGMS), presenting transparently 

company level from the Group. 

The action plan regarding corporate governance 

The implementation of the Corporate Governance 

Action Plan, assumed as part of the Framework 

Agreement with EBRD, has been considered since 

the IPO and the company’s listing. The standards 

and measures it envisaged have been implemented, 

maintained and continuously monitored.

Selection of independent directors

The EBRD guidelines were included in ELSA’s Articles 

of Association adopted on 4 July 2014, being 

maintained in the context of increasing the total 

number of directors from five to seven, by adopting 

the Extraordinary General Meeting of Shareholders 

decision from 10 November 2015; out of the seven 

directors, four must meet the independence criteria.

For details about ELSA’s Board of Directors, its 

the elements of fixed and variable remuneration, 

including financial and non-financial benefits, in 

any form, that may be granted to Directors. 

In the year 2023, no changes were made to 

the Policy; the remuneration limits previously 

established by the General Shareholders’ Meeting 

(GMS) for Administrators and Executive Directors 

remain unchanged.

Starting from 2023, the company has published 

the Remuneration Report for Administrators and 

Executive Directors for the year 2022, in accordance 

with the provisions of Law 24/2017 regarding issuers 

of financial instruments and market operations. The 

report was approved during the Ordinary General 

Shareholders’ Meeting (OGMS) Electrica on 27 April 

2023 and can be accessed at the following link: 

[Remuneration Report for Directors and Executive 

Managers of Electrica, for 2022]. The purpose of the 

report is to provide an overview of the remuneration 

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and benefits granted and/or due during the 

processes, subprocesses, and activities conducted, 

last financial year to the executives individually, 

the workflow for reporting, and the establishment 

including newly recruited and former executives, in 

of responsibilities and dedicated competencies are 

accordance with the company’s Policy.

described.

guaranteed by Electrica S.A. for financing DEER’s 

assessment for the investment projects included in 

CAPEX Plan 2021 – 2023. The revised ESAP includes 

the CAPEX Plan. If DEER is to develop and implement 

the following actions, their status of implementation 

impact assessments under national legislation for 

being also mentioned in the following section.

investment projects targeting certain installations, 

For details regarding the remuneration of the Board 

Code of Conduct 

members and of the executive management of 

ELSA, please see chapter 4.7. 

EBRD requirements are covered by the Code of 

Ethics and professional Conduct. Regarding the 

Advisory Committees of the Board of Directors 

Whistleblowing Policy, it has been updated and is 

In order to increase the effectiveness of its 

available on the company’s website.

activity, ELSA’s Board of Directors has established 

the following committees with advisory role: 

During 2023, follow-up actions were carried out 

Organogram of EHS management structure and 

update certification

Develop an organogram presenting the EHS 

management structure from Group-level 

management, to County-level implementation 

within DEER. Make this accessible on the Group 

intranet portal, alongside the existing E&S Policy, 

the Nomination and Remuneration Committee, 

in relation to the provisions of the Code at group 

under their management systems page and shared 

the Audit and Risk Committee, the Strategy and 

level, or to prevent the occurrence of any forms of 

with all staff.

Corporate Governance Committee and The Climate 

conduct contrary to the provisions of the Code and 

Governance and Public Affairs Committee. For 

subsequent policies applicable at Group level. 

details, please see chapter 4.5. 

Internal Control and Audit Framework 

Compliance with BSE Corporate Governance Code 

In the course of the year 2023, the organizational 

structure of DEER included the Health and Safety 

Department, with Zonal Health and Safety Offices 

(MN, TN, and TS), and the Quality and Environment 

which are not initially foreseen (including cutting 

protected tree species), they must be developed 

according to EU standards.

The EBRD will be informed about the environmental 

impact studies related to investment projects 

carried out at the level of DEER by sending the post 

link on their website.

The inclusion in the Electrica Group’s Annual 

Sustainability Report of a summary of 

environmental impact studies with reference to 

non-technical summaries for CAPEX investment 

projects posted on DEER’s website.

During 2022, the documentation governing the 

On 4 January 2016, the new BSE Corporate 

Management Office.

internal audit activity at Electrica Group level 

Governance Code entered into force and, on this 

No Environmental impact Studies were required 

under Law 292/2018 Annex 5E for the development 

approved in November 2019 was maintained and 

occasion, ELSA published on 8 January 2016 the 

The certification of DEER’s Environmental 

of the distribution infrastructure included in DEER 

applied. This documentation was approved in its 

„Corporate Governance Code Apply or Explain” 

Management System in accordance with the ISO 

Investment Plan until now. 

first version by the BoD at the beginning of 2015 and 

statement according to the new provisions. ELSA 

14001:2015 standard was obtained in April 2021.

includes the Internal Audit Charter, the Audit Manual 

publishes the updated statement yearly and reports 

and the Auditor’s Code of Ethics, its last update 

promptly to the capital market any update of its 

dating from 2019. The documents are available on 

compliance.

ELSA’s website in the section The group > Internal 

Audit. For details about the internal audit please see 

On its turn, ELSA adopted its own Corporate 

Throughout the year 2023, the Company maintained 

its certification in accordance with the requirements 

of the ISO 14001:2015 and ISO 45001:2018 reference 

standards, granted by the external certification 

chapter 4.10. and for more details on the internal 

Governance Code since the beginning of 2015, its 

body SRAC Cert.

control, please see chapter 6.10.

last update being approved by the BoD on 23 June 

Permits 

DEER will ensure that it obtains all necessary 

authorizations/certificates from the Ministry of 

Culture, as well as environmental ones from local 

authorities with competence in the field, according 

to the Urban planning Certificate for the investment 

ELSA’s Articles of Association

2020. This version, as well as the policies and other 

corporate documents referred to by the Corporate 

Governance Code of ELSA are available on the 

EBRD guidelines were included in the Articles of 

company’s website in the Investors > Corporate 

Association of ELSA adopted on 4 July 2014. 

Governance section (https://www.electrica.ro/en/

In 2023, ELSA’s Articles of Association were updated 

investors/corporate-governance/). 

according to ELSA Board of Directors’ decisions from 

22 November 2023. All versions of the ELSA Articles 

For details, please consider chapters 4.8 and 4.1. 

of Association adopted since the listing of the 

At the same time, at the level of the Electrica Group, 

company are available on its website in the section 

a Market Abuse Policy was developed, adopted by all 

The group > About > Articles of Association.

subsidiaries.

Clear lines of competence and responsibility 

The Environmental and Social Action Plan (ESAP)

In the documentation of our own IMS (Integrated 

Management System) developed at the level of 

ELSA and its subsidiaries, which documents the 

During 2022 the Environmental and Social 

Action Plan was updated by SAP as part of the 

Loan Agreement signed by DEER with EBRD and 

Project-Specific Risk Assessments 

projects carried out.

Development and implementation of a standardized 

instrument for the assessment of social and 

environmental risks (methodology) and its 

application for the categories of works/works 

included in the CAPEX Plan 2021-2023.

All the necessary authorizations/certificates 

according to the Urban planning Certificate were 

obtained for all the investment projects included in 

the CAPEX Plan at DEER level. 

Social, environmental and SSM risks, as well as 

mitigation measures are included in DEER technical 

projects for investment works, a methodology being 

developed to ensure a unitary approach across all 

technical projects.

Environmental impact studies

Obtaining the building permit is conditioned by 

obtaining all the approvals required in the Urban 

planning Certificate.

Stunting environmental and social requirements 

Environmental management plans for the works 

must be developed by contractors before starting 

Continue to implement the legal requirements 

work, based on the risk assessments carried out 

in the field of environment regarding the impact 

at the level of Electrica group and the specific 

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instructions of the group companies. These plans 

staff reduction at group level are included in the 

•  Increased selective collection and recovery of 

capacitors with PCB content in operation. The 

must be stunned by the contractor (general 

Collective Labour Agreement signed with the trade 

recyclable waste.

contractor) to all sub-contractors. 

unions and renegotiated every two years. 

process is monitored annually through reporting, 

and the results are published in the Electrica 

Technical projects including the section on social, 

In the case of reorganisation decisions, such 

environmental and SSM risks and measures to 

initiatives will be designed in accordance with 

reduce them are part of the contract signed with 

best practice and in compliance with national 

contractors and are binding on them and their 

legislation. In 2023 there were NO restructurings 

subcontractors. 

and NO collective redundancies. 

•  Installation of GPS, GPS monitoring (via the 

Group’s Sustainability Report.

SafeFleet platform), route optimization, fuel 

consumption monitoring, periodic technical 

maintenance of the vehicle fleet.

Health and Safety System and Policy

Maintaining the certification of the SSO 

•  Reduction in the number of business-related 

Management System according to ISO 45001:2018 

trips.

for DEER. Revision of OSH policy 

Ensuring the accommodation of workers 

Analysis of greenhouse gas emissions

•  Staff awareness through the inclusion of 

The certification of the Occupational Health and 

Check the accommodation conditions provided 

to workers who cannot return home daily (where 

relevant), ensuring it at an adequate level of quality 

and in accordance with the EBRD/IFC guidelines..

The development of a study on greenhouse gas 

(GHG) emissions at the level of Electrica Group’s 

operations and the identification of areas with 

potential emission reduction, with the publication of 

results in the Electrica Group’s Sustainability Report. 

An annual presentation of the implementation 

The accommodation conditions for its staff 

status of measures and progress made in reducing 

are checked and controlled at the time of the 

emissions is included in the Sustainability Report.

accommodation.

In the year 2023, at the DEER level, the procedure 

regarding the On-site Environmental Control was 

revised, introducing the mandatory verification of 

accommodation conditions in the control activities 

for contracted investment works. . 

Restructuring with reduced personnel

The company will develop and maintain provisions 

on personnel reduction (collective/individual 

redundancies) in the collective Labour Agreement 

and will plan restructuring initiatives in alignment 

with the EBRD guidelines in the field, so as to 

minimize the social and economic impact of staff 

reductions, if necessary. These initiatives will be 

designed in accordance with good practice and in 

compliance with national law. The Company shall 

inform the Bank of any major restructuring (more 

than 500 affected employees) and shall submit 

a plan for tarting/reducing the impact at least 1 

The determination of the level of greenhouse gas 

(GHG) emissions for the activities of the Electrica 

Group in the year 2022 and the identification of 

areas with potential emission reduction were 

carried out at the level of each company within the 

Group. The results are published in the Electrica 

Group’s Sustainability Report for the year 2023.

At the DEER level, the measures taken aimed at 

reducing both direct and indirect emissions include:

•  Analysis and increase in the percentage of 

distributed electrical energy purchased from 

renewable sources.

•  Modernization of energy facilities.

•  Implementation of a program to reduce 

Specific Energy Consumption (NL).

•  Installation of own renewable energy sources 

(photovoltaic panels).

month before the CIM is terminated. Restructuring 

•  Application/adherence to regulations for 

programs that will affect more than 100 employees, 

optimizing and improving energy consumption 

but less than 500 employees will be presented in 

in DEER’s administrative and technological 

carbon footprint reduction aspects in the topics 

Safety Management System in accordance with 

covered in the IMS - Environmental Protection 

the ISO 45001:2018 standard was maintained at 

training.

Energy management  

the DEER level in the year 2023, with no major non-

conformities recorded by the external certification 

body SRAC Cert.

Implementation and certification of the Energy 

Management System, in accordance with the 

requirements of ISO 50001 standard at the level of 

the Electrica Group. 

Azbestos

The implementation of the Energy Management 

System at DEER level is foreseen after the 

completion of the organizational transformation 

project following the merger of distribution 

operators, so that the certification will be obtained 

in 2024. 

PCB 

Continuation at DEER level of the program to 

eliminate PCBs (polychlorinated biphenyls) from 

electrical installations in operation, the deadline for 

complete disposal being 2028, with annual reporting 

to the EBRD. 

The process of eliminating Polychlorinated 

Biphenyls (PCBs) from the operating electrical 

installations continued throughout the year 2023, 

ensuring the company’s compliance with the 

national elimination program within the established 

timeframe (2028), as per Government Decision 

1497/2008. In 2023, a total of 400 capacitors with 

PCB content and 1 transformer with PCB content 

Carrying out a study on asbestos-containing 

materials for the targeted transformation stations 

(by the CAPEX Plan) and developing an asbestos 

management plan for the locations included in the 

CAPEX Plan, in order to facilitate a comprehensive 

investigation, DEER must also ensure that, all 

electrical equipment is insulated and safe during 

the study. Waste management procedures during 

investment works documented by environmental 

management plans during work should include 

preventive measures/approaches to situations 

where asbestos is identified during work and should 

comply with the asbestos Management Plan. 

Maintain a plan to assess and eliminate asbestos 

risk. 

DEER continued to monitor the state of degradation 

of the asbestos-cement coating for the posts, 

transformation stations and administrative 

buildings, being replaced with other materials by 

third-party companies during the restoration/

modernization works..

the Annual Report. 

spaces.

were removed from operation.

Community Health & Safety 

The provisions on restructuring/reorganisation with 

•  Reduction of operating time through the 

appropriate use of ITC equipment.

As of the end of the year, there were still 1089 

After the implementation of the CAPEX Plan, the 

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distribution infrastructure must be inspected 

overhead power lines with underground cables), in 

Electromagnetic Fields

branch for the year 2023. 

periodically to verify that the equipment is properly 

accordance with the applicable legal provisions, 

installed and that the elements that ensure the 

especially at the community level. 

Continue monitoring potential impacts from 

electromagnetic fields (EMF) from transformer 

The bird mortality situation in 2023 at the DEER level 

is as follows:

Emergency Preparedness and Response

stations and transmission lines in compliance with 

National legislation with respect to EMF. .

Checking the emergency plans and ensuring the 

endowment of all locations with extinguishers within 

There are studies on electromagnetic fields for the 

the validity term, in accordance with the provisions 

distribution infrastructure of DEER indicating that 

 – 145 incidents resulting from bird interaction with 

electrical installations (collision/electrocution)

 – 161 deceased birds (mostly crows, storks, rooks).

of the legislation in force. .

they are within the limits of national legislation. 

Avoiding and mitigating against bird deaths

For all locations owned by DEER, there are defined 

fire prevention plans. Preventive measures are 

implemented and consist of: Control of compliance 

with legal regulations by own authorized personnel; 

DEER analyzes options for including electromagnetic 

field measurements for new installations in the 

commissioning process and for independent 

studies. 

regular entry for all categories of employees, in 

Land Acquisition Framework

protection of the community (for example, when 

electrocution) are functional/applied as part of the 

infrastructure maintenance plan. Any unprotected 

equipment that could cause damage to the local 

community must be reported and repaired/

replaced. 

Throughout the year 2023, DEER continued 

monitoring the degradation status of asbestos-

cement roof coverings associated with posts, 

transformer stations, and administrative buildings. 

Replacement with other materials was arranged 

by third-party companies during refurbishment/

modernization works.

Working at Height and Lockout/Grounding 

Instruction 

and installations complies with the regulations in 

force at national level. Completion of the electrical 

separation and working at height instruction/

instructions. 

The SSM instructions on the de-voltage and the 

provision of the working area for networks and 

distribution installations, as well as on working 

at height, are in force and comply with national 

regulations. 

Visual Impacts

taking into account local communities’ perception 

of their construction (through environmental and 

social management plans) in compliance with 

national legislation in this field. 

accordance with the approved annual training 

programs; evacuation and intervention exercises 

in case of emergency situations; maintenance 

of fire prevention and extinguishing equipment 

and facilities for each location with authorized 

Ensuring that the SSM documentation providing 

providers; maintenance of unobstructed access on 

rules for the voltage removal and ensuring the 

evacuation routes; additional actions to prevent 

working area for electricity distribution networks 

fires for the hot and cold season. 

establishing and implementing mitigation/reduction 

measures, if necessary (if measurements indicate 

overruns of the legislated level). 

At DEER level, in the year 2023, the instruction ‘DEER-

I3-PS-06 - Environmental Protection Control’ was 

developed, including Annex 1.1 - ‘Noise Measurement 

Assessing the visual impact for new networks in the 

Program.’ The instruction pertains to environmental 

design phase and establishing mitigation measures, 

control, incorporating the activity of monitoring 

e.g. moving lines underground, changing routes by 

noise levels for DEER installations.

Noise monitoring

program. 

Monitoring the noise level for areas with high 

No new land surveys were required for the 

sensitivity (residential, hospitals, schools) that claim 

development of the distribution infrastructure that 

the noise level generated by DEER equipment and 

is the subject of the Investment Plan so far. 

If it will be necessary to purchase land for the 

implementation of the CAPEX Program, a document 

will be developed to define the Land acquisition 

Framework (LAF), which will present the Electrica 

policy on fair compensation and compliance of the 

procurement process with the relevant national 

legislation and RP5. It will ensure compliance with 

this framework for installations part of the CAPEX 

Bird death monitoring

Develop and implement a system for monitoring 

mortality among birds due to their collision with 

LEA, providing annual estimates of mortality. The 

monitoring will be done by on-site trips with search 

on the ground.  

DEER has developed and approved the 

instruction DEER-I5-PS-06 regarding ‘Monitoring 

The continuation of the replacement of the lines 

with classical (uninsulated) conductor with twisted 

(insulated) conductors, within the investment 

projects carried out in areas with significant 

activity of birds, defined by the relevant NGOs 

and environmental authorities. It will continue 

the installation of stork nests on the low and 

medium voltage LEA poles and the installation 

of electoinsulating sheaths to protect all these 

species that have their habitats in DEER activity 

areas. Mapping sensitive areas from a biodiversity 

perspective. If necessary, bird markers shall be 

used and the risk of electric shock of birds shall be 

reduced by a suitable design of the insulation of 

electrical installations. It will be considered for all 

new or modernized LEA to have safety elements that 

will lead to the avoidance of mortality among birds. 

In the design phase for new networks or the 

modernization of existing electrical networks, DEER 

adopts technical solutions designed to ensure 

the protection of biodiversity and considers the 

replacement of overhead lines with underground 

lines, of non-insulated conductors with twisted 

conductor, the installation of insulating sheaths. 

Technical guidelines are being developed to 

ensure a unified approach to the design of power 

grids at DEER level, which will include standardized 

measures for bird protection. 

The procedure for random discoveries (cultural 

values) 

Adoption of a Protocol on random discoveries 
in order to identify and effectively manage any 

discoveries with cultural value that occurred 

during the implementation of the projects. This 

At the level of each branch, sound level meters 

Bird Mortality Resulting from Interaction with 

are available, and during the year 2023, the 

noise measurement program was planned 

and implemented. Records of these noise 

Electrical Installations,’ based on alerts from 

SCADA systems and field inspections to identify 

carcasses. According to the provisions of Annex 

At the design stage DEER adopts technical 

measurements are documented in the ‘Noise Level 

1 of the instruction, the ‘Bird Mortality Monitoring 

solutions taking into account the visual impact of 

Monitoring Register,’ which is maintained at the 

Register Resulting from Interaction with Electrical 

its future distribution installations (replacement of 

branch level..

Installations’ was developed at the level of each 

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protocol should define the internal communication/

resolution in their legal framework in accordance 

escalation chain, the notification of relevant 

with the legal requirements (ANRE). The complaints 

institutions with regard to discovered objects/sites, 

registered directly with DEER will be recognized 

the information of the personnel involved in the 

and resolved in accordance with the regulations 

projects on the possibility of such discoveries and 

in force (ANRE) (between 15 days and 30 days to 

the way of surrounding the area in order to protect 

respond, depending on the nature of the complaint/

against destruction or alteration of the discoveries, 

complaint). 

where necessary. The protocol will be aligned with 

the rules for the application of Law 50/1991 on the 

authorization of construction works. 

The mechanism for monitoring complaints is 

defined according to the regulations in force and 

available on DEER website. Records of complaints 

The accidental Discovery Protocol is part of all DEER 

and complaints are kept and submitted to ANRE 

contracts as a separate section/clause.

regulator upon request or during the performed 

Update Stakeholder Engagement Policy (SEP)

Updating the engagement methods used in 

controls. 

Community Guide to Security

accordance with the policy in order to align with 

Develop a guide that contains relevant information 

what is actually done and developing the section on 

about the process of electricity distribution. The 

complaints and integrity warnings. 

guide addresses with priority the local communities 

In the context of specific legislation transposing 

EU unbundling directives, DEER is working toward 

finalizing its own stakeholder engagement policy 

involving all relevant departments. The policy will be 

published on the company’s website after obtaining 

all necessary corporate approvals. 

Stakeholder Engagement for the 2021-2023 CAPEX 

Plan

Development of a stakeholder engagement plan 

dedicated to the CAPEX Program 2021 – 2023 

to ensure that all the necessary involvement/

consultation activities are carried out during the 

implementation of the following projects included in 

the CAPEX Program financed by the EBRD.  

DEER has a stakeholder engagement plan, and the 

Investment Plan section will be presented on DEER 

website. 

A unitary mechanism for monitoring complaints/

complaints 

Development and implementation of a unitary 

it system at DEER level of registration, analysis, 

served by DEER activity and presents details 

regarding: DEER’s emergency procedure for the 

safe erection of the fallen LEA poles; the activities 

of involvement of the interested parties and the 

mechanism for submitting complaints/complaints; 

Determination of the levels of electromagnetic 

fields in transformer and LEA stations and its 

impact on health; risk related to theft of electricity, 

etc. Consideration will also be given to the 

implementation of other mechanisms to raise 

awareness of the local community about the 

safety in the use of electricity energy (through the 

European Commission’s “Energy saving” program 

(“Economie la energie”), for example. 

Ensuring reporting in line with the provisions of 

the EU Directive on non-financial reporting and 

including in the Sustainability Report relevant 

information on the climate impact produced in 

accordance with the Green and Social Taxonomy 

adopted since 2022. 

The Electrica Group publishes its annual 

sustainability report in accordance with the 

provisions of the EU Directive on non-financial 

reporting. 

4.10 Internal audit activity report for 2023

The Internal Audit Squad is responsible for 

the implementation degree of the audit 

conducting risk-based audit missions at Group 

recommendations related to the issued reports;

• 5.  At the request of Management Board three 

ad-hoc missions were carried out in a mixed 

team ELSA-EFSA, missions accomplished at EFSA 

level;

• 6.  Based on the integrity warning analysis 

procedure, 13 warnings were received through 

the „whistleblower” system. Out of the total 

number of warnings received in 2023, 10 

warnings have been assessed, and 3 of those 

received towards the end of the year are 

still under analysis, with only one of them 

undergoing analysis at the Internal Audit Squad 

ELSA level.

The audit reports are agreed by executive 

management and further submitted to the Audit 

and Risk Committee of ELSA, as well as to the 

Board of Directors. Following the conclusion of the 

audit engagements and after agreeing the audit 

recommendations with the responsible persons, the 

Internal Audit Squad works together with the audited 

structures in order to draw up the action plans 

aimed to reduce or eliminate the identified risks.

companies’ level. 

The Internal Audit Squad performs its activity based 

on an annual audit plan, which is endorsed by 

the Audit and Risk Committee, and subsequently 

approved by the Board of Directors. The 2023 Audit 

Plan included assurance and operational missions, 

as well as ad-hoc audit missions started after their 

validation by the Audit and Risk Committee. The 

Audit Plan is aligned with the risk register at Group 

level and prioritizes the main risks identified for the 

major business areas.

During 2023, assurance audit missions were 

carried out, as well as various ad-hoc missions on 

the most important business activities. The audit 

missions were performed on major projects or 

events within the Group, but also on procurement 

activity, activity of the squad Investor Relations and 

Project Management. The Audit and Risk Committee 

together with the Board of Directors analyzed the 

audit reports regarding the findings identified, as 

well as the action plans established to remedy 

them.

Throughout 2023, the Internal Audit Squad team 

consisted of one person with management role, one 

person with a full – time and two persons with part 

time work (2h/week).

Among the most important audit missions carried 

out in 2023 are:

• 1. 

Evaluation and audit of procurement 

activity. The audit report contains 4 findings of 

which 0 with hight impact;

• 2. 

Evaluation and auditing of the activity of 

the squad Investor Relations. The audit report 

contains 5 findings of which 0 with hight impact;

• 3. 

Evaluation and auditing of Project 

Management. The audit report contains 3 

findings of which 0 with hight impact;

• 4.  Three “follow-up” missions were carried 

out, which were aimed to identify and monitor 

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5. OPERATING
ACTIVITY
OF ELECTRICA IN 2023

144

145

5.1  Operating segments 

The operations of each reportable segment are summarized below.

Table 14. Operating segments

Segments

Operations

Electricity and gas supply

Purchasing and supplying electricity and gas to end consumers (EFSA, including 
the trading and representation activity on the Balancing Market as Balance 
Responsible Party – BRP)

Electricity distribution

Electricity distribution service (include DEER and activity performed by SERV within 
distribution segment)

Electricity generation

Production of electricity from renewable sources (photovoltaic panels)

External electricity network 
services

Repairs, maintenance, and other services for electricity networks owned by other 
distributors (includes Electrica SERV SA activity without the one mentioned above 
for the distribution segment)

Headquarters

Includes corporate services at parent level

Source: Electrica

The figure below shows the areas covered by the Group subsidiaries and the number of customers/users 

they serve.

Figure 29: The geographical coverage of the companies in the Electrica Group in 2023

NETWORK AREA OF 
TRANSILVANIA NORTH

1.37 mn. users

NETWORK AREA OF 
MUNTENIA NORTH

1.35 mn. users

NETWORK AREA OF 
TRANSILVANIA SOUTH

1.22 mn. users

ELECTRICA FURNIZARE (EF)
3.5 mn. consumption places

Source: Electrica 
Note: The figure refers to the company’s number of consumption places/users at 31 December 2023

5.1.1  DISTRIBUTION SEGMENT

Electrica Group’s distribution segment, starting with 

on the principle of remunerating in tariffs the 

1st of January 2021 refers to the activity of DEER (with 

justifiable costs recorded by the distribution system 

the following network areas: Transylvania North, 

operator, the main source of profit of the distribution 

Transylvania South and Muntenia North) and SERV.

company being the rate of return of capital invested 

The electricity distribution segment is a regulated 

in the distribution activity.

area of activity, in which operations are conducted 

The tariffs are adjusted annually, taking into 

in a geographically limited area in accordance 

account the operational performance achieved, the 

with the concession agreement, the nature of the 

quantities of electricity distributed, the quantities 

services provided, and the specific obligations 

and the purchase price of electricity needed 

are stipulated in the license conditions of the 

to cover network losses (NL), controllable and 

concessionaire operator. Thus, the electricity 

noncontrollable costs, the change in reactive energy 

distribution subsidiary of Electrica Group is the 

revenues from forecasted values, the depreciation 

energy distribution operator in Transylvania North 

and carrying out expected capitalizable expenses, 

(Cluj, Maramures, Satu Mare, Salaj, Bihor and 

the changes in actual gross profit from other 

Bistrita-Nasaud counties), Transylvania South 

activities compared to the forecasted one, as well 

(Brasov, Alba, Sibiu, Mures, Harghita and Covasna 

as the corrections in previous periods carried out 

counties) and Muntenia North (Prahova, Buzau, 

according to the methodology.

Dambovita, Braila, Galati and Vrancea counties), 

operating electrical installation with voltages 

between 0.4 kV and 110 kV.

On 31 December 2023, the Group was in a 

surplus position, estimated at about RON 150 mn. 

(representing corrections related to the year 2023), 

DEER holds the exclusive electricity distribution 

which will be recovered through the distribution 

license in these regions of network areas valid until 

tariffs of the following years.

the year 2027, with an extension clause for another 

25 years. Within its service for distribution activity, 

SERV provides maintenance, repair and various 

services to group companies (car rental, rental of 

buildings etc.) as well as repairs and other related 

services to third parties.

The current regulatory period (the fourth regulatory 

period – RP4) began on 1 January 2019 and it ended 

on 31 December 2023. ANRE sets the annual level 

of distribution tariffs in RON per MWh for each 

distribution company, respectively on each network 

area in case of a merged DSO and for each voltage 

The specific distribution tariffs are determined 

level (high, medium and low). The invoiced tariffs 

and approved by ANRE based on the “tariff basket 

are summed up according to the related voltage 

cap” method as set out in ANRE Order no. 169/18 

level (e.g., the medium voltage tariff includes 

September 2018 regarding the approval of the tariff 

the high voltage tariff, and the low voltage tariff 

setting methodology for the electricity distribution 

includes the high voltage and medium voltage 

service (applicable in the fourth regulatory period 

tariff).

2019 - 2023), with subsequent amendments, 

and respectively GEO no. 1/15 January 2020 and 

ANRE Order no. 75/6 May 2020 regarding the 

establishment of RRR applied to the approval of 

tariffs for the electricity distribution service.

ANRE determines the annual regulated revenue 

required for each year of the regulatory period 

on the basis of the projections submitted by the 

distribution operators in accordance with the 

methodological requirements at the beginning of 

The regulatory method “tariff basket cap” aims to 

the regulatory period.

avoid significant fluctuations in the tariffs applied 

to the users for electricity distribution. The model 

for determining the regulated income is based 

The year 2024 represents the transition period from 

the fourth period (RP4) to the fifth regulatory period 

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(RP5), the target income of the DSO for the year 

for DEER regional distribution tariffs established on 

Competitive market

2024 is established according to the Methodological 

the basis of a single regulated income and a single 

At the end of 2023, a number of 97 licensed 

participants had transferred responsibility to PRE 

Norms approved by ANRE Order no. 79/2023 that 

NL target.

complete the Methodology. In 2024, ANRE approved 

The electricity distribution tariffs approved by ANRE starting with 1 April 2023 are as follows (RON/MWh):

Table 15. The electricity distribution tariffs approved by ANRE starting with 1 April 2023

RON/MWh

DEER 
area

 Applicable starting with 01 April 2023

ANRE Order no.

High 
Voltage

Medium 
Voltage

Low 
Voltage

31.23

69.44

229.96

29.09

71.38

182.24

28.48

62.32

171.97

In 2023, electricity trading in the gross market was 

EFSA, of which:

carried out on the basis of directly negotiated 

bilateral contracts, of transactions carried 

out transparently on the centralized markets 

administered by OPCOM as well as on the spot 

markets also administered by OPCOM.

The Emergency Ordinances issued by the 

Government with the aim of implementing 

measures to protect the end customer in the sense 

of establishing cap prices as well as the over 

taxation of revenues from the sale of electricity on 

the gross market, have generated extremely low 

liquidity in this market.

PRE Electrica - The Party Responsible for Balancing

•  14 suppliers representing 14.43% of the total PRE;

•  5 distribution operators representing 5.15% of the 

total PRE;

•  78 producers representing 80.42% of the total 

PRE.

The distribution companies of the Electrica Group 

have delegated their responsibility to PRE EFSA.

The Balancing Market, the component of the gross 

energy market, is a market for which each license 

holder must either assume balancing responsibility 

or transfer balancing responsibility to a PRE. By 

transferring the responsibility to a party responsible 

for balancing, there is the advantage of aggregating 

The representation activity in the Balancing Market 

imbalances, in the sense of reducing costs on the 

as the Party Responsible for Balancing (PRE) was 

Balancing Market compared to the situation where 

29.20

58.33

198.81

carried out by EFSA.

27/29 March 2023

26.94

60.90

157.27

26.85

55.74

150.17

2.03

2.15

1.63

11.11

31.15

10.48

24.97

6.58

21.80

Starting with 2023, the client portfolio is diversified, 

being made up of producers (hydro, thermal, 

wind, photovoltaic, biogas, biomass), suppliers 

and distribution operators, ensuring the balancing 

service of over 21% of the total electricity 

consumption in Romania.

5.1.3  ENERGY SERVICES SEGMENT

the producer/supplier/distributor would constitute 

itself as the Party Responsible for Balancing.

MN

TN

TS

MN

TN

TS

MN

TN

TS

The specific tariff,  
composed of:

The main component

The component related to 
additional costs with NL

Source: ANRE

5.1.2  SUPPLY SEGMENT

The Group’s portfolio also includes the energy 

installation of photovoltaic panels and reactive 

services segment (equipment maintenance, repairs 

energy compensators, smart lighting solutions, 

and other ancillary services related to the grid), 

backup power, smart metering.

mainly provided to distribution companies outside 

the Group.

SERV’s main objectives for the coming period are:

•  Expansion of the activity on the service market 

The Electrica Group operates on electricity supply 

last resort suppliers and the competitive market. On 

segment through its subsidiary, EFSA, both on the 

both markets, electricity can be sold/acquired gross 

Until 30 November 2020, the segment was 

outside the ELSA group and consolidation in the 

regulated electricity market (Supplier of Last Resort) 

or retail.

and in the competitive market, at national level. 

EFSA detains an electricity supply license that covers 

the entire territory of Romania, which was extended 

in 2021 for a period of 10 years. It also holds a license 

for carrying out the activity of supplying natural gas, 

valid until 2032.

The electricity market is divided into the market of 

The market for universal service and providers of 

last resort

Currently, EFSA supplies approximately 1.6 mn. 

clients with 1.8 mn. places of consumption under 

universal service and last resort.

represented by SEM, and after the merger by 

business lines of new activities simultaneously 

absorption between SERV and SEM, the segment 

with reactivation of old activities for which there 

includes SERV’s energy services business.

is accumulated experience;

•  Adapting the business and staff structure 

Electrica Serv will multiply its efforts to develop the 

to make the activity more efficient and 

market for green energy power generation solutions 

compensate for the losses incurred in the last 

- photovoltaic power plants and reactive energy 

fiscal years;

compensators - by strengthening its partnership 

•  Consolidation of the current financial situation 

with Electrica Furnizare in finding solutions and 

and reinvestment of resources for the 

opportunities for customer efficiency through the 

development of the company in new directions.

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5.1.4  ELECTRICITY PRODUCTION

For the production segment, the development of 

Green certificates

already purchased projects continued in order to 

reach the ready to build stage, respectively:

Producers of electricity from renewable energy 

sources (RES) have the right, according to Law no. 

•  Final development on the final process of 

220/2008, to receive a certain number of green 

obtaining all necessary permits to start 

certificates, depending on the technology used 

construction for renewable projects;

(for example: Hydraulics, wind, solar, geothermal, 

biomass, wind energy, bioliquids, biogas), for each 

5.2  Fixed assets 
5.2.1  Tangible assets – summarize key aspects of their location and 

main characteristics

The number of users and volume of installations as of 31 December 2023 at the level of the three distribution 

regions (North Transylvania area - TN area, South Transylvania area - TS area and North Muntenia area - 

MN area) and total DEER (Romania Electrical Energy Distribution) are quantified as follows:

•  Continuing the planning and construction 

of start-up activities for projects that have 

MWh produced and delivered in the network and for 

Table 16. Number of users and volume of installations as of 31 December 2023

a certain period of time, depending on the degree of 

Stanesti photovoltaic Park has the right to receive, 

starting with February 2013, for a period of 15 

Geographical coverage

(fifteen) years, 6 (six) green certificates for each 

Number of users, of which:

reached the ready to build stage during 2023, 

novelty of the group/power plant. 

respectively:

•  Conduct a competitive procedure for the 

selection of the EPC Contractor, sign the EPC 

Contract and start the implementation phase 

for the Vulturu project;

•  Start the competitive procedure for the 

selection of the EPC Contractor for the 

implementation of the Satu Mare 2 project.

MWh of electricity produced and delivered in 

the grid, of which, for the period 1 July 2013 - 31 

December 2020, according to Law 23/2014 and Law 

184/2018, 2 (two) green certificates were postponed 

from trading, to be recovered in equal monthly 

installments starting with 1 January 2021 until 31 

In addition to the above-mentioned issues, activities 

December 2030.

are continued on:

•  Evaluation of opportunities for the acquisition 

of new RES projects and/or the establishment of 

partnerships through the acquisition of majority 

stakes in RES projects (already developed by 

potential partners);

•  Project development activities started for: 

natural gas generation, energy storage in 

batteries;

•  Start of planning activities for the 

operationalisation of the production segment 

phased both in line with the development 

and implementation timetable for energy 

generation and storage projects, as well as the 

merger process and absorption into ELSA of the 

subsidiaries EPE, EVE1 and GECI.

The green certificates issued by Transelectrica 

for the production carried out by the Stanesti 

photovoltaic park, during the validity period of 

the accreditation decision issued by ANRE, can be 

traded, according to GEO 24/2017, until 31 March 

2032, respectively, after the expiry of the validity 

period of the accreditation decision (31 January 

2028 in the case of Stanesti photovoltaic park). 

The green certificates can be traded on the OPCOM 

spot, forward or combined markets. The selling 

price must be between the minimum and maximum 

values established by Law no. 220/2008 for the 

establishment of the system for the promotion 

of electricity production from renewable energy 

sources, republished, with subsequent amendments. 

Revenues from the sale of green certificates are 

recognised as profit or loss at the time of their sale 

on the market.

UM

km²

no.

no.

no.

no.

km

km

km

km

km

km

km

km

km

km

TN

MN

TS

 Total

34,162

28,962

34,072

97,196

1,366,852 

1,347,725 

1,217,704 

3,932,281 

34 

42 

45 

121 

4,573 

4,614 

3,152 

12,339 

1,362,245 

1,343,069 

1,214,507 

3,919,821 

53,288 

59,767 

46,081 

159,136 

2,191

2,146

3,150 

7,487 

11,874 

12,664 

10,530 

35,067 

39,223 

44,958 

32,401 

116,582 

18,377 

24,482 

17,596 

60,455 

18,183 

12,615 

13,458 

44,255 

37

17

63

117

4,486 

3,596 

3,791 

11,874 

13,659 

9,001 

9,603 

32,264 

8,052 

2,543 

3,199 

13,793 

high voltage (HV – 110 Kv)

 medium voltage (MV)

 low voltage (LV)

Overhead power lines length, out of 

which:

high voltage (HV – 110 Kv)

 medium voltage (MV)

 low voltage (LV)

 out of which connections

Underground power lines length, out of 

which:

high voltage (HV – 110 Kv)

medium voltage (MV)

low voltage (LV)

out of which connections

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UM

TN

MN

TS

 Total

Table 17. Degree of attrition of the installations

Cumulative power of transformers/

power AT

in power stations

(HV/MV + MV/MV), out of which:

in HV/MV power stations

in MV/MV power stations

MVA

MVA

MVA

MVA

6,339 

8,943 

6,892 

22,174 

High voltage power lines (110 kV)

Underground power lines 

3,776 

5,898 

4,167 

13,841 

Overhead power lines

3,728 

5,545 

4,161 

13,434 

Medium voltage power lines

Underground power lines 

48

353

6

407

Overhead power lines

Switching stations/Transformer stations

MVA

2,564 

3,045 

2,725 

8,333 

Low voltage power lines

Underground power lines 

No. of substations, out of which:

HV/MV power stations

MV/MV power stations

Number of switching stations and 

transformer stations

Source: Electrica

pcs

pcs

pcs

pcs

122 

93 

29

215 

127 

 88

105 

101 

4

442 

321 

121

9,527 

10,731 

9,802 

30,060 

5.2.2 Tangible assets – summarize key aspects of their attrition

Most of the distribution installations currently in the patrimony of the electricity distribution company 

(detailed by geographical areas) within Electrica Group, about 80% of the total volume, was built in the 

Source: DEER

Overhead power lines

Substations

Transformers

Pole - mounted

Concrete enclosure

Pad - mounted

Underground

Concrete base

TN

25%

74%

46%

56%

51%

56%

69%

44%

50%

70%

15%

10%

MN

45%

64%

62%

57%

67%

63%

73%

48%

65%

76%

95%

8%

TS

50%

75%

62%

59%

73%

67%

60%

50%

75%

20%

85%

12%

period 1960-1990, in the successive stages of development of the National Energy System. This has led 

The lands on which the existing electrical distribution networks are located at the entry into force of Law 

to a wide variety of equipment currently in operation. These represent installations made with Romanian 

13/2007 are and remain the public property of the state. 

technology in the period 1960 - 2000, where there is a high degree of physical and moral wear and tear. It 

should be noted that the installations put into operation between 1980 - 2000 (approximately 10%) gradually 

exceed the normal operating time.

A relatively small category, representing about 20% of the total installations, is represented by the new 

installations, put into operation after 2000 and which are made to technical standards that meet the 

current requirements.

Depending on the voltage level, categories of installations, the year of commissioning and the specific 

operating conditions, the degree of attrition of the installations can be assessed as follows:

In general, electric distribution networks are developed on public land of the state (public roads, land of the 

UAT) and partly on private land (those that serve mainly the user who owns the property) for the location of 

transformative posts and/or individual bransings. 

In most cases the location of new distribution networks/installations is made in compliance with the urban 

regulations of the area. It is intended that the delimitation of the operator/user installations to be carried 

out at the limit of the private domain, with access from the public road. 

Maintenance of tangible assets, modernization and development of new assets is carried out on the basis 

of the annual maintenance plans and annual investment plans approved by ANRE. 

The annual investment plans are approved both as a total value cap, with a minimum required level, to be 

achieved, at the value of the annual depreciation, as well as detailed covering every investment goal. 

The annual maintenance plans are valorically approved by ANRE and must be carried out in the amount of 

at least 95%.

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In 2023, Electrica Group companies realized the following investments, compared to the planned values.

Table 19. Investments planned 2023 vs achieved 2023(RON mn.)

Electrica Group subsidiary (RON mn.)

Planned 2023

Achieved 2023

DEER zone TN

DEER zone TS

DEER zone MN

EFSA

ELSA

SERV

EPE

GEC&I

SWE

Total

Source: Electrica

240.0

303.0

282.0

65.2

19.4

10.5

16.3

52.0

94.8

273.6

329.0

345.9

32.4

2.8

2.1

-

1.1

1.5

1,0832.2

988.4

At Electrica Group level, in 2023, the consolidated CAPEX plan was achieved at a rate of 91.2% compared to 

the plan approved by the Board of Directors of ELSA in April 2023, and for the distribution subsidiary DEER, the 

average degree of achievement is of 114.9% compared to the approved plan.

The synthetic structure of investments achieved (CAPEX) by the distribution subsidiary in 2023 is presented 

in the table below (for details of the most important investments see Appendix 2).

5.2.3 Investments

The investments at Electrica Group level have been prioritized considering especially the distribution 

company’s assets degree of wear, and with a particular focus on the improvement of the distribution 

service quality, the safety in operations, as well as the increase in efficiency.

The Group will continue to modernize and to develop the smart distribution network by installing smart 

network infrastructure systems, such as SCADA, SAD, electricity measurement systems etc., in order to 

improve the energetic and operational efficiency, to improve the network flexibility, the distribution service 

quality and to ensure the continuity in the electricity supply and the networks’ safety.

In the investments program implementation, the Group’s strategy and in particular the following criteria are 

ensured:

•  tracking the inclusion of regulated investments in the RAB;

•  non-regulated investments of the Group must provide an internal rate of return higher than the 

weighted average cost of capital;

•  the proposed investment program must follow the Group’s financial strategy of maintaining a solid 

capital structure.

Thus, those categories of capital expenses that contribute to the development of a profitable and 

sustainable distribution activity, as well as to the creation of the conditions of access to the electricity 

distribution network for the consumers and electricity producers, in accordance with market requirements, 

are prioritized, based in particular on:

•  distribution automation by integrating of the installation in SCADA, SAD, DMS etc.;

•  modernizing the equipment from the substations and the medium voltage network;

•  introducing equipment with reduced technological losses, higher operating efficiencies and 

environmentally friendly;

•  modernizing of the medium and low voltage distribution network and connections;

•  expansion of modern systems for measuring electricity consumption and transmitting consumption 

data.

At the same time, the Group is considering investments in the upgrade of IT infrastructure and IT systems, 

considering both the legal requirements regarding data protection and the positive effect on the quality of 

the services provided. 

The following table presents the investment program approved by ANRE for the distribution area within 

Electrica Group for the period 2019 - 2023 (in 2018 real terms): 

Table 18. Investment program approved by ANRE for 2019-2023 (RON mn.)

Commissioning program approved by ANRE for the period 2019 - 2023 (RON mn.)

2019

2020

2021

2022

2023

Total

190

200

200

590

175

190

190

555

170

170

160

500

160

170

160

490

160

160

165

485

855

890

875

2,620

SDTN

SDTS

SDMN

Total

Source: ANRE

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Table 20. The synthetic structure of investments achieved by distribution subsidiary in 2023 

Figure 30: The structure of CAPEX achievements for distribution operator within the Group,  

(RON mn.)

in 2023 (RON mn.)

Category of works (RON mn.)

Total

Efficiency, out of which:

Energy efficiency/NL

Operational efficiency

Quality of distribution service, out of which:

Continuity of supply

Energy quality

Legal obligations (network extention/reinforcement)

Connections (additional to the plan)

Other categories, from which

Endowments (including auto)

Projects and studies

Modernization of buildings, premises

Total

Source: Electrica

The main investments of the Electrica Group were focused in 2023 on improving the quality of the 

distribution service, as well as on increasing the energy and operational efficiency.

% 

28%

19%

8%

62%

20%

11%

11%

19%

11%

6%

1%

4%

Other categories

102 - 11%

Connections
(additional to the plan)

179 - 19%

Legal obligations (network
extention/reinforcement)

104 - 11%

Energy quality

106 - 11%

Energy efficiency/NL

183 - 19%

Operational efficiency

80 - 8%

Continuity of supply

194 - 20%

262

183

80

583

194

106

104

179

102

57

6

39

948

100%

Source: Electrica 

The approved plan of investments to be commissioned in 2023 for Societatea Distributie Energie Electrica 

(DEER), the distribution company within Electrica group, was in total amont of RON 764.1 mn., this value also 

including investments carried forward, for the year 2022 (RON 135.6 mn.). 

The total value of the investments carried out and commissioned in 2023 by DEER is RON 777.1 mn. 

representing an average percentage of 102% compared to the total planned value. 

From the total of RON 777.1 mn. investments carried out and commissioned, RON 559.7 mn. are related 

to 2023 plan, RON 121.9 mn. are additional works from legal obligations and RON 95.5 mn. represent 

investments carried forward from 2022 plan.

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1,331

1,420

1,519

1,624

1,728

1,851

1,938

2,016

2,098

2,443

Obligations of the distribution license holder:

Table 21. PIF plan vs achieved 2023 (RON mn.)

DEER (RON mn.)

Total 2023  
plan

Total achieved 
2023

Total percentage of 
achievement %

MN area

TS area

TN area

Total DEER

Source: Electrica

249.8

278.9

235.3

764.0

257.3

266.7

253.1

 777.1

103%

96%

108%

102%

As a result of investments made during 2014-2023, the value of the Regulated Assets Base (RAB) of the 

Group’s distribution operators has progressively changed, with an increasing evolution, and is as follows:

Table 22. RAB evolution 2014-2023 (RON mn.)

20146 

2015

2016

2017

2018

2019*

2020*

2021*

2022*

2023**

RAB 
(RON mn.)

SDTN

SDTS

SDMN

Total

Source: Electrica

1,333

1,377

1,388

1,475

1,521

1,679

1,772

1,838

1,889

2,235

1,486

1,543

1,581

1,679

1,769

1,909

2,030

2,094

2,150

2,501

4,150

4,340

4,488

4,779

5,019

5,440

5,739

5,948

6,137

7,179

Considering the significant volume of investments required for the next period, efforts have been intensified 

to access the non-reimbursable financing schemes: Large Infrastructure Operational Program (POIM), 

Modernization Fund, National Recovery and Resilience Plan (PNRR).

In 2023, DEER developed five projects with an eligible value of RON 231 mn. within the Large Infrastructure 

Operational Program (POIM) 2014-2020.

30 projects were submitted for financing from the Modernization Fund (FM), total amounting ~ EUR 1.2 bn. 

(without VAT), of which the eligible amount is ~ EUR 0.9 bn.. At the end of 2023, six of these had financing 

contracts signed and are ongoing. The projects aim at increasing the reliability and capacity of the 

distribution network, the quality of the distribution service and energy efficiency, ensuring the safety of 

electricity supply for existing users as well as ensuring the possibility of connecting future consumers and 

producers.

DEER also submitted within the competitive call of National Recovery and Resilience Plan (PNRR/2022/C6/M 

ENERGIE/I1), projects for installing photovoltaic systems to cover the own consumption in substations and 

headquarter, eight of these being in pre-contracting stage at the end of 2023.

6   In 2018, ANRE communicated the final value of the investments recognised for 2014, due to this reason starting with 2014 the RAB values    
  have been modified.
*   Modified value as a result of unused FA and exits from RAB between 2019 and 2022
**  The value may change as a result of the final closing of 2023 and the analysis carried out by ANRE.

5.2.4 Aspects of ownership of tangible assets 

The operation of assets is realized: 

i)  under the concession contract, by which the Concendent (Ministry of Energy) has transmitted to the  

concessionaire (distribution operator) the right and obligation to operate the activities and service  

of electricity distribution;

ii)  based on the distribution license - ANRE Order 73/2014 - regarding the approval of the general  

conditions associated with the licenses for the provision of the electricity distribution service.

During the period of validity of the license, the license holder has the exclusive right to provide the electricity 

distribution service, under the conditions of the regulations in force, in the area defined under the specific 

conditions associated with the license, using the electrical distribution network that it holds as owner or with 

any other legal title, provided under the specific conditions associated with the license, in compliance with 

the provisions of the concession contract concluded with the contracting authority. 

In order to ensure the normal functioning of the distribution network that it operates, the license holder 

has the right to exercise, under the conditions of the Law, the rights provided by the law for the holders of 

licenses on land and public or private property of other natural or legal persons and on the activities carried 

out by natural and legal persons in the vicinity of the components of the electrical distribution network, as 

well as the right of access to public utilities. 

•  The obligation to allow the use of the electrical distribution network;

•  Ensuring the connection to public interest electricity networks; 

At the request of any natural or legal person, the license holder is obliged to provide access to the 

distribution network provided under the specific conditions associated with the license, in order to make a 

new connection or to modify an existing connection. 

•  Development of the electrical distribution network.

The license holder is obliged to carry out planning and development works of the distribution electrical 

networks, under conditions of technical and economic efficiency, according to the provisions of the law and 

in compliance with the technical regulations in force.

5.3  Procurement

The acquisition activity at the level of ELSA and its subsidiaries is carried out in accordance with the legal 

provisions in force, as well as its own procedures and regulations as the case may be, aiming to cover the 

needs of goods, services and works for the smooth running of the Group’s activities. 

In the case of distribution subsidiary DEER, the sectoral procurement legislation is observed, mainly Law no. 

99/2016 on sector acquisitions and GD no. 394/2016 approving the methodological norms for the application 

of the provisions regarding the award of the sectoral contract/framework agreement of Law no. 99/2016 on 

sector acquisitions.

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In some cases, the acquisitions are carried out and centralized by delegating the coordination of the 

Regarding the supply segment, although it holds an important position on the electricity supply market, 

acquisition to a group company, with the primary objective of reducing costs, optimizing the acquisition 

EFSA faces strengthening competition on the market it operates on.

and ensuring a unitary policy within the Group. Among the purchases made centrally, we mention D&O 

insurance services, the purchase of services to determine the carbon footprint of the Electrica Group for the 

year 2022 and the purchase of Communications Services, voice and data, fixed and mobile.

The figures below show the market shares of Electrica Group for the supply activity on 30 November 2023 

(based on supplied volumes):

Figure 32: Total market shares, 2023

Figure 33: Competitive Market, 2023 

5.4  Sales activity

Electrica Group’s revenues are influenced mainly by the distribution and supply segments. The contribution 

of the distribution segment to the total revenues was 25.9% in 2023, while the contribution of the supply 

segment was 74.2%.

Others

33.94%

The Group’s distribution operators (one operator from 1 January 2021) are natural monopolies in their 

respective markets and as such, they hold a dominant position. In addition, the Group’s distribution 

operators have a legal monopoly in their relevant regions; hence, other entities cannot set up a competing 

electricity distribution business. 

The following figure shows the national market share (based on the quantities of distributed electricity) 

held by the Group’s subsidiaries in the electricity distribution segment, according to the 2022 ANRE report for 

performance indicators’ monitoring.

Engie România

4.07%

CEZ Vânzare 

5.17%

Hidroelectrica

13.14%

E.ON Energie România
9.11%

Figure 31: Market share of distribution segment in 2022

Source: ANRE monthly report (November 2023)

Electrica Furnizare

16.61%

PPC2

17.96%

Others

40.48%

Electrica Furnizare
10.25%

PPC2

17.66%

E.ON Energie România
6.62%

CEZ Vânzare ; 
4.46%

Engie România

4.85%

Hidroelectrica
15.68%

Source: ANRE report (November 2023)
Notes: *”Others” segement includes suppliers with individual market 
share under 4%
**PPC includes PPC ENERGIE and PPC ENERGIE MUNTENIA

DEER TN,
13.32%

DEER TS,
12.69%

DEER MN
13.69%

Others, 60.30%

Figure 34: Volume of electricity supplied on 

Figure 35: Evolution of consumer numbers 

the retail market (TWh)

(ths.)

9.2 

9.3 

9.4 

4.9 

5.1 

3.8 

8.6 

0.9 

2.4 

4.4 

4.2 

5.6 

5.4 

7.8 

1.5 

2.2 

4.2 

2019

2020

2021

2022

2023

Competitive

Un iversal  Service

Last Resort Supplier

3,553 

3,583 

3,510 

3,498 
36 

3,495 
26 

1,953 

1,817 

1,746 

3,284 

3,269 

1,556 

1,645 

1,724 

269 

2019

314 

2020

2021

2022

2023

Competitive

Un iversal  Service

Last Resort Supplier

Source: ANRE Report for performance indicators’ monitoring 2022

Source: Electrica

Source: Electrica

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 Figure 36: Consumers structure with split on 

Figure 37: Consumers structure with split on 

•  14 suppliers representing 14.43% of the total PRE;

electricity volumes supplied in 2023

revenues in 2023

•  5 distribution operators representing 5.15% of the total PRE and 

•  78 producers representing 80.41% of the total PRE.

NON-HOUSEHOLD -
LAST RESORT SUPPLIER

19.00%

NON-HOUSEHOLD -
LAST RESORT SUPPLIER

26.31%

Figure 38: PRE Electrica Furnizare Members 

HOUSEHOLD -
LAST RESORT SUPPLIER

0.03%

HOUSEHOLD -
LAST RESORT SUPPLIER

0.04%

HOUSEHOLD -
UNIVERSAL SERVICE

HOUSEHOLD - 
COMPETITIVE MARKET

NON-HOUSEHOLD - 
COMPETITIVE MARKET

27.74%

27.72%

HOUSEHOLD -
UNIVERSAL SERVICE

16.75%

HOUSEHOLD - 
COMPETITIVE MARKET

25.05%

25.51%

NON-HOUSEHOLD - 
COMPETITIVE MARKET

31.84%

15%

5%

80%

Source: Electrica

Source: Electrica

Major client exposure 

Source: Electrica

Suppliers

Distributors

Producers

EFSA does not have a significant exposure to a certain industrial sector that could have major influence 

In 2023, more than 300 bilateral contracts, exchanges with OPCOM respectively, were notified to 

on company’s activity. The position of market leader gives the essential advantage of having a very 

Transelectrica (OTS).

large portfolio of customers and thus the effect of risk dispersion is obtained and therefore the risk of 

its concentration does not emerge. This advantage was confirmed during the pandemic, proving that 

the economic sectors affected by the pandemic, although they generate significant exposures, cannot 

represent sources of systemic risks at the level of company’ s entire portfolio. Another advantage held by 

EFSA is the possession of a considerable portfolio of household clients.

However, certain consumers such as hospitals, ambulance stations, schools, nurseries and kindergartens, 

air or naval traffic services are considered to be of special importance and cannot be disconnected by 

the electricity distributor, as they are considered vulnerable consumers. Customers who come under the 

incidence of insolvency law can benefit from its protection against creditors and therefore possibly also 

from electricity suppliers for the supply contracts in force at the time of insolvency proceedings opening.

PRE Electrica - the Party Responsible for Balancing

The activity of representation in the Balancing Market as the Party Responsible for Balancing (Electrica 

Furnizare PRE) is carried out by Electrica Furnizare SA based on the electricity supply license no. 

2279/04.08.2021.

PRE EFSA’s client portfolio is diversified, consisting of producers (hydro, thermal, wind, photovoltaic, biogas, 

biomass), suppliers and distribution operators. 

At the end of 2023, a number of 97 licensed participants had transferred responsibility to PRE EFSA, of which:

Starting from February 2021, settlement in PE is carried out at 15-minute intervals using the single-price 

methodology according to ANRE Order no. 213/2020. The single price turns into a dual, excess and loss price, 

in the intervals where the conditions in the Order are met.

EFSA’s PRE uses the internal unbalance allocation method in settlement, so that PRE members benefit from 

cost reduction/increase in revenue for dual price ranges (single price ranges do not allow compensation).

During January - November 2023, out of a total number of 32,064 intervals, the dual price was applied to a 

number of 2,558 intervals (7.98%). As a result of the internal allocation of unbalances, within the PRE EFSA 

there was an improvement in excess and loss prices by 29.03 RON/MWh compared to the unbalance prices 

calculated by OPCOM/OTS (a degree of compensation of approximately 49%.

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January-November 2023

Excess Average Price OPCOM/OTS

Excess Average Price EFSA PRE

353.91

382.940 

Ensuring the necessary human resources for the key business areas, staff training and capitalizing on their 

potential, expertise and skills, in order to increase work productivity and individual performance, are treated 

as priority topics.

As of 31 December 2023, approximately 71% of the Group’s employees represent directly productive staff, 

and 29% represent indirectly productive staff, including technical, economic, social and administrative 

Loss Average Price OPCOM/OTS

Loss Average Price EFSA PRE

personnel.

473.03

444.000

Table 24. Group’s employment by age, 2021 - 2023

Source: Electrica

Age category

31 December 2023

31 December 2022

31 December 2021

Electrica Furnizare SA, through the PRE Service, operates on the Intraday Market (IM) starting from February 

2021 to buy/sell the electricity volumes not traded on the Day-Ahead Market (DAM).

For 2023, the Intraday Market trading results are as follows:

•  On purchase - the quantity of 39,342.45 MWh at an average price of 618.25 RON/MWh;

•  For sale - the quantity of 15,166.80 MWh at an average price of 870.44 RON/MWh.

Out of a total traded for purchase on IM OPCOM of 128,014.35 MWh (at an average price of 642.92 RON/MWh), 

EFSA traded a volume of 39,342.45 MWh representing a percentage of about 31%, and of the total traded for 

sale on IM OPCOM of 152,180.43 MWh (at an average price of 753.17 RON/MWh). EFSA traded a quantity of 

15,166.80 MWh representing a percentage of about 10%.

under 18

18-30

31-40

41-50

51-60

over 60 years old

Total

Source: Electrica

0.01%

6.03%

14.27%

33.58%

42.94%

3.17%

100%

0.00%

5.10%

14.70%

34.30%

43.30%

2.60%

100%

0.00%

4.76%

16.06%

34.96%

41.44%

2.85%

100%

5.5  Personnel

On 31 December 2023, Electrica Group had 7,945 employees. The table below provides an overview of the 

employment in the Group, by business segments, at the end of the specified years. Starting with 2020, the 

figures include also the mandate contracts.

Table 23. Number of employees evolution 2019 – 2023

Organizational entity/year

  2023*

Electricity distribution segment - DEER

DEER - MN 

DEER - TN 

DEER - TS 

Services segment - SERV 

Supply segment – EFSA

Services related to other distribution networks – SEM 

(included in SERV starting December 2020)

Headquarters – ELSA

Total 

Source: Electrica

6,589

2,186

2,301

2,102

473

796

-

87

7,945

2022

6,555

2,211

2,262

2,082

469

816

-

71

2021

6,454

2,156

2,259

2,039

612

838

-

2020

7,213

2,184

2,248

2,087

694

793

-

109

120

2019

6,972

2,191

2,233

2,085

463

896

296

128

*According to the modified reporting methodology to INS, the employees number from 31.12.2023 also includes 29 persons who worked 
based on a mandate agreement.

As of 31 December 2023, about 98% of the 

depending on the workforce need.

Group’s employees are Union members and their 

employment conditions are governed by the 

Collective Labor Agreement, which will expire on 17 

May 2024 for ELSA and between February- June 2024 

The improvement and continuous development 

of the performance management system have 

contributed to the achievement of Electrica Group 

for the Group’s subsidiaries. The Electrica Group did 

key objectives, set for the 2019-2023. 

not face Union actions in 2023.

Both ELSA and its subsidiaries have drawn updated 

policies, procedures and internal regulations that 

contain provisions regarding employment, non-

discrimination, occupational health and safety, 

employer and employees’ rights and obligations, the 

procedure for solving the employees’ complaints, 

the labor discipline, disciplinary sanctions and 

deviations, rules regarding the disciplinary 

procedure, criteria and procedures for the 

The long-term strategic objectives, set at the end 

of 2023, outlined a broad framework for business 

development and viability, covering areas such 

as renewable energy, service diversification, ESG 

integration in business concepts, digitization 

and organizational excellence. In line with these 

objectives, we focus our efforts on attracting, 

motivating and retaining a qualified and diverse 

workforce, necessary to support the initiatives for 

the next period, in the conditions of an accentuated 

professional evaluation of employees, succession 

dynamics of the labor market.

and final provisions.

The Group is involved in the life of the communities 

in which it operates, supporting children of families 

with modest material possibilities to remain in the 

education system, and at the same time, forming 

To ensure a work environment where employees 

feel valued and fulfilled, we focus on continuous 

professional development, including the acquisition 

of skills and competences in the “green” and digital 

fields. In light of the sharp increase in interest in 

renewable energy, energy efficiency, digitization and 

ESG principles, we are committed to implementing 

7,911

8,013

8,126

8,292

a solid base of young electricians who will be 

able in the future to join the distribution company, 

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training and development programs to improve 

of international best practices was developed 

These accidents were caused by failure to comply with the instructions on health and safety at work, due to 

existing skills and attract new talent with the 

to increase the maturity of the performance 

the carelessness of workers, one of which was a road accident. There were no fatalities during the reporting 

necessary expertise.

management system within Electrica, which 

period. 

To support the fulfilment of these objectives and to 

attract talented young people, we aim to develop 

internship programs, participate in innovation 

projects, establish educational partnerships and 

launch mentoring programs. These initiatives will 

contribute not only to attracting and developing 

talent, but also to promoting a culture of innovation, 

considers the continuous improvement of the 

employee evaluation process and the development 

of the necessary tools to build a solid performance-

based system. At the level of the entire Group, the 

360-degree evaluation process was carried out, 

with the aim of developing a culture of feedback 

within the organization. 

sustainability and social responsibility.

The training programs carried out at the Electrica 

Group level considered both the constant evolution 

and the improvement of the Group employees’ 

skills. The company’s management supports the 

principle of development through continuous 

training by involving employees in these programs, 

thus supporting them to effectively address their 

professional challenges.

We continue to promote diversity and inclusion 

at every level of the organization and leverage 

modern technologies to streamline human resource 

management and encourage innovation and 

sustainable development.

In order to improve the employer’s image in the 

post-pandemic context, the hybrid („work from 

home/office”) system was implemented within 

the Electrica Group, complying with the internally 

defined processes, regarding workplace safety and 

human resources activity management. 

In 2023, it was continued the methodological 

and conceptual framework for the application 

HEALTH AND SAFETY AT WORK

In 2023, all the companies of the Electrica Group 

maintained their Integrated Quality-Environment 

Management System certification, which ensures 

the compliance of the companies with the legal 

requirements in the field of occupational health 

Figure 39: Frequency index 2021-2023

1.55

1.03

1.16

0.75

0.63

0.78

0.66

1.8

1.6

1.4

1.2

1

0.8

0.6

0.4

0.2

0

2021

2022

2023

Group

Nationa l

Industry

IF* is a statistical indicator recommended by the 

International Labour Organization (ILO) through 

the Resolution on Statistics of Occupational Injuries 

adopted in October 1998 as it correlates the number 

0.89

0.8

of accidents with the number of workers, increasing 

the comparability of organisation’s performance in 

the field of OSH and eliminating distortions caused 

by the size of these organisations (number of 

employees in each organisation).

Source: Electrica

*the year 2023, the data published by the Ministry of Labor and Social Solidarity is as of September 30, 2023, with the final figures set to be 
published on April 15, 2024. 

Starting from the year 2021 and continuing in the following years, IF for Electrica Group’s performance has 

consistently remained below both the industry average in which it operates and the national average.

Aspects regarding the employees health

and safety and with those of the SR ISO 45001:2018 

referential. There is thus a guarantee that services 

and processes are provided and carried out in 

safe conditions for the company’s own staff and 

contractors, as well as for customers.

The Electrica Group’s field of activity does not 

Prevention, monitoring and occupational health 

involve a risk of developing diseases caused 

insurance at Electrica Group level was carried out 

exclusively by working conditions, so no 

by doctors with specialisation in occupational 

occupational diseases have been recorded in 2023 

medicine through dedicated service contracts 

or in previous years.

and was followed up at ELSA level for the portfolio 

companies through reports.

The work accidents situation and specific indicators at Electrica Group level

In 2023 there were 9 work related accidents within 

similar situations that need to be implemented by 

Electrica Group, increasing compared to 2022, but 

the company. 

there were no fatal accidents.

The complex of complementary causes and 

of accidents per 1,000 employees is for 2023 at the 

contributing factors that led to the occurrence of 

Group level 1.17‰, registering an increase compared 

each of these accidents was analysed at DEER level 

to 2022, correlated with the increase in the number 

by the legally constituted committees, and the 

of accidents at the Group level.

investigation files include the measures to prevent 

The frequency index (FI), expressed as the number 

Actions to improve safety and health of employees at work place 

At the company level, training and control activities 

The shift in organizational culture and focus on 

in the field of occupational health and safety (SSM) 

values such as safety, responsibility, discipline, 

have been maintained. The conducted controls are 

and collaboration is a lengthy process that 

primarily oriented towards ensuring compliance 

requires sustained human and financial effort. This 

with current instructions and regulations, the 

is achieved through the implementation of the 

violation of which was identified as the main cause 

following actions:

for accidents in 2023. These controls target both 

internal and contractor personnel, with the long-

term objective of achieving ‚zero’ accidents for both 

groups.

•  Development and implementation of a 

dedicated policy and programs to promote 

responsibility and compliance with occupational 

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health and safety rules, as well as accident 

In 2023 the total number of SSM - SU training hours 

The calculation of emissions for all companies within the Group was conducted with the support of an 

prevention measures;

reached 333,792 compared to 315,295 SSM - SU 

external specialized consultant, using the GHG Protocol standard. The result indicates that a significant 

•  Consultation of workers from all workplaces in 

the process of improving the work environment 

and conditions;

•  Development of a communication system for 

events/near misses in the field of SSM through 

IT&C platforms, ensuring quick and easy 

communication with the option of anonymity, 

if desired, for electricians, coupled with 

encouragement for reporting;

training hours in 2022, motivated by the increase in 

source of GHG emissions continues to be the own technological consumption (OTC) from distribution 

personnel numbers in 2023 compared to 2022.

networks (results can be analyzed in the Sustainability Report for the year 2022, published in June 2023, 

available on the website www.electrica.ro).

At the Group level, a number of 902 OSH controls 

were carried out, to identify deficiencies that could 

At the level of the distribution operator DEER within the Group, the PCB (polychlorinated biphenyls) 

generate risks for the safety and health at work of 

elimination program from operating electrical installations continued in 2023, complying with the legally 

employees, followed by immediate treatment of the 

established national deadline of 2028 for their total elimination (cf. Government Decision no. 1497/2008), 

non-compliances found.

with a considerable reduction observed.  

In 2023 a total of 2,435 controls in the field of 

occupational health and safety were conducted 

Figure 40: PCB capacitors in operation at the end of 2023 compared to 2022

•  Provision of entry-level devices and minimal 

by certified personnel, compared to 1,999 controls 

voice and data subscriptions for directly 

in 2022. Following these controls, preventive and 

productive workers to extend and operationalize 

corrective measures were established with the aim 

reporting platforms;

of reducing the incidence of workplace accidents 

and mitigating associated risks. 

1489

1089

Despite numerous inspections by Territorial 

Labor Inspectorates and Emergency Situations 

Inspectorates during the reference period, none of 

the Electrica Group companies faced sanctions.

•  Communication of occupational health and 

safety objectives to all contractors of Electrica 

Group companies, as well as monitoring 

them regarding compliance with legal 

requirements and specific instructions in the 

field. Establishment of a working group with 

representatives from all Group companies to 

develop the necessary tools for better SSM 

management in relation to contractors;

•  Communication to users and communities of 

the risks associated with unauthorized access 

to facilities managed by Electrica Group 

companies, both physical risks (such as electric 

shock, fall hazards) and legal risks.

2022

2023

Source: Electrica

And throughout the year 2023, the principles of selective waste collection and recycling of waste categories 

generated at the Group level were maintained—whenever the requirements for this are met—or their 

destruction with authorized operators. This effort aims to contribute to the reduction of environmental 

pollution and the maintenance of the health of both humans and animals.

Figure 41: The quantity of waste (in tons) generated and the treatment methods 

3824

4358

Recycle

5.6  Environmental considerations

The amount of expenses in the environmental protection domain within the Electrica Group in the year 2023 

was RON 17.8 mn.. These expenses continued to be allocated primarily for the prevention and protection 

against forest fires, waste collection and disposal, protection and conservation of flora and fauna species, 

land protection, etc.

At the Electrica Group level, efforts are made to obtain a detailed understanding of the environmental 

impact of our activities and to identify optimal solutions for their management. In 2023, monitoring of 

greenhouse gas emissions (GHG) levels within the companies of the Electrica Group continued, along with 

their evaluation.

4432

Source: Electrica

Coincineration

Incineration

Storage

Temporary storage 
(own warehouses)

6,7

67,4

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Following external certification/surveillance audits conducted by the certification body SRAC Cert 

throughout the year 2023, the companies within the Electrica Group have maintained the certifications 

for their own Integrated Quality - Environment - Health and Safety Management Systems. These systems 

are managed responsibly and efficiently, addressing the environmental aspects specific to the activities 

carried out, in accordance with legal requirements and the provisions of the reference standard SR EN ISO 

14001:2015.

5.7  Research and development activities

Electrica Group is promoting technological 

organizations (companies, universities, etc.), 

innovation by participating in research and 

coordinated by Intrasoft International, Belgium, with 

development projects financed/co-financed 

a duration of 36 months starting from October 2021.

through European funds, which aims to empower 

the resilience of energy systems with an increasingly 

complex structure but also more vulnerable to 

cyber-attacks.

In 2023, Electrica, in cooperation with University 

POLITEHNICA of Bucharest (UPB), created a test 

laboratory for various countermeasure scenarios 

of possible cyber attacks on electricity distribution 

Thus, with the integration of an increasing number 

networks.

of distributed generation sources in the distribution 

network increases the role of intelligent technologies 

Electrica achievements: 

as well in network operation by remote monitoring, 

control, or operation and even more by network 

self-healing implementation.

•  Use case 4 defining - Proactive islanding, that 

fulfills an efficient detection of cyber threats: 

addressing and mitigating cyber-attacks in the 

standards.

In this context, Electrica participates in the European 

project ELECTRON - resilient and self-healed 

EleCTRical power Nanogrid, financed by the EU, 

which addresses the need to protect the distribution 

network against a variety of threats, ranging from 

cyberattacks, dynamic and evolving Advanced 

Persistent Threats (APT), and privacy violations, to 

electricity disturbances.

The project aims at delivering a new-generation 

EPES (Electrical Power and Energy System) platform, 

capable of empowering the resilience of energy 

systems through risk assessment, anomaly 

detection and prevention, failure mitigation and 

energy restoration, and personnel training. 

The project is carried out by a consortium of 34 

•  Analysis of the opportunity to implement the 

platforms proposed in the project - in the 2nd 

year of the project; 

the 2nd year of the project; 

•  Threat level and types of attackers - in the 2nd 

year of the project; 

• Testing of ELECTRON components - to ensure 

increased resistance of the energy system, 

while ensuring business continuity and critical 

5.8  Significant aspects of the impact of subsidies on the  

capitalization of additional costs related to technological  
consumption (NL)

Distribution segment

Having regard to the following aspects concerning 

the legislative changes in the energy sector 

concerning the recognition in tariffs of the additional 

costs of the purchase of electricity to cover their 

technological consumption compared to the costs 

included in the regulated tariffs, introduced by: 

period 1 April 2022 – 31 March 2023, as well as 

for the modification and completion of some 

normative acts in the field of energy: for the 

period 1 January 2023 – 31 March 2025, it is 

established the mechanism of centralized 

purchase of electric energy. GEO no. 153/2022 

was approved and amended by Law 206/2023. 

•  ANRE order no. 129/2022 for the approval of 

the methodological norms regarding the 

recognition in tariffs of the additional costs with 

the acquisition of electricity to cover the own 

technological consumption compared to the 

costs included in the regulated tariffs; Modified 

by ANRE Order no. 104/2023, which modifies 

the application period until March 31, 2025, 

and supplementing the Government Emergency 

Ordinance no. 27/2022 on the measures 

applicable to final customers in the electricity 

and natural gas market during 1 April 2022-

31 March 2023, as well as amending and 

supplementing some normative acts in the 

field of energy. GEO no. 119/2022 was approved 

• Transposing the provisions of the normative acts 

from the primary and secondary legislation into 

the financial accounting area by MF order no. 

3900/2022 regarding the approval of accounting 

specifications in the application of the provisions 

of art. III of Government Emergency Ordinance 

no. 119/2022 amending and supplementing 

Government Emergency Ordinance no. 27/2022 

on the measures applicable to final customers 

in the electricity and natural gas market 

between 1 April 2022 - 31 March 2023, as well as 

for the modification and completion of some 

normative acts in the field of energy. MF order 

no. 5378/2023 regarding the approval of some 

accounting clarifications in application of the 

provisions of art. III paragraph (1) from GEO no. 

119/2022 for the amendment and completion 

of the GEO no. 27/2022 regarding the measures 

applicable to final customers in the electricity 

and natural gas market during the period 1 

April 2022 – 31 March 2023, as well as for the 

amendment and completion of some normative 

acts in the field of energy, adds the period 1 

•  GEO. no. 153/2022 for the amendment and 

January 2024 - 31 March 2025.

completion of GEO no. 27/2022 regarding the 

measures applicable to final customers in the 

electricity and natural gas market in the period 

1 April 1 2022 – 31 March 2023, as well as for the 

amendment and completion of some normative 

acts in the field of energy and the amendment 

Starting with September 2022, it is allowed to 

capitalize, recognize and report additional costs 

related to the own technological consumption (NL) 

of distribution operators. 

•  Vulnerability and impact analysis: estimating the 

and amended by Law no. 357/2022, application 

severity of a vulnerability on a certain asset - in 

period 1 January 2023 – 31 March 2025. 

operations of the energy community - in the 3rd 

of the GEO. no. 119/2022 for amending and 

year of the project.

supplementing the GEO. no. 27/2022 regarding 

the measures applicable to end customers in 

the electricity and natural gas market in the 

The growing number of cyber security incidents 

Romanian Energy Chain - in the 1st year of the 

according to the changes approved by Law no. 

in the energy system as well as the need for 

project; 

shielding against a variety of threats require 

357/2022. 

novel and holistic solutions that employ cutting 

• Implementation of Security and confidentiality 

•  Emergency Ordinance no. 119/2022 amending 

edge technologies to detect and mitigate threats, 

requirements for users according to the 

ensuring compliance with the latest cyber security 

legislation - in the 2nd year of the project; 

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5.9  Principle of business continuity – substantiation and  

working hypothesis

The going concern principle implies that the entity 

to the latest ANRE report October 2022 for the supply 

continues its normal operations without going into 

segment) as market share on the electricity supply 

liquidation or significantly reducing its activity.

market and having as main shareholder of Electrica 

This report and the consolidated financial 

statements published by the Grouo have been 

prepared on the going concern basis. In making this 

judgement management considers current trading 

performance and access to finance resources. The 

SA the Romanian State, the management believes 

sufficient financing will be made available to cover 

any financing requirements arising from market 

uncertainty and Group will be able to meet its 

obligations as they fall due. 

Group has prepared a forecast that includes the 

Based upon the above projections and other 

following assumptions: 

information, given the measures already 

implemented and the strategies to reduce the 

• A continuation of the support scheme until 

risks which may occur due to the instability of the 

31 March 2025 according to the applicable 

economic environment, the Board of Directors has, 

legislation but with a more stable flow of 

at the time of approving this report, a reasonable 

repayments of the reimbursement requests for 

expectation that the Group has adequate resources 

subsidies as compared with last year, as the 

to continue in operational existence for the 

mechanism has been operationally improved; 

foreseeable future. Thus, they continue to adopt the 

going concern basis of accounting in preparing this 

• It is planned to renew confirmed financing 

report and the consolidated financial statements 

facilities up to RON 4,961.5 mn., including 

published by the Group.

overdraft limits of RON 2,736.4 mn. and RON 

2,225.1 mn. limit on long-term loans. 

• The use of the as yet unconfirmed facilities in the 

form of overdrafts amounting to RON 574.1 mn. 

will be drawn down, of which RON 250.0 mn. will 

be repaid during the forecast period.

At the date of issuance of this report the regulatory 

position may be further amended and there may 

be further laws enacted which could adversely 

impact the Groups operating cash flows during 

the forecast period. Given the current market 

uncertainties, the Group is closely monitoring the 

market context and is continuously analysing the 

opportunities for optimisation of debt and increase 

of bank overdrafts and long-term loans. In light of 

the importance of the Group as the supplier and 

distributed of electricity on the Romanian market, 

having 39.7 % (according to the latest ANRE report 

2022 for the distribution segment) as market share 

on the electricity distribution and 17.72 % (according 

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6. ELECTRICA
FINANCIAL REPORTING 
FOR 2023

174

175

The presentation of the Group’s consolidated financial information in chapters 6.1.1, 6.2.1, 6.3.1 and 6.7 

is based on the consolidated financial statements that have been prepared in accordance with the 

International Financial Reporting Standards (“IFRS”) adopted by the European Union (“IFRS-EU”). These 

consolidated financial statements are presented in RON, which is the functional currency of all companies 

within the Group.

The presentation of the Group’s consolidated financial information in chapters 6.1.2, 6.2.2, 6.3.2 is based 

on the consolidated financial statements prepared in accordance with OMFP no. 2844/2016. These 

consolidated financial statements are presented in RON, which is the functional currency of all companies 

within the Group.

6.1  Consolidated statement of the financial position

6.1.1  Consolidated statement of the financial position – S-IFRS-EU

The following table presents the consolidated statement of the financial position.

Table 25. Consolidated statement of the financial position 2023-2021 (RON. mn) – S-IFRS-EU

31 December 
2023

31 December 
2022*

Variation 
2023/2022 abs

31 December 
2021

ASSETS

Non-current assets

Intangible assets related to 

concession agreements

Goodwill

Other intangible assets

6,220.5 

5,675.9

544.7 

5,514.6

 24.7 

 27.8 

12.0

12.9

Property, plant and equipment

 595.0 

499.4

Investments in associates

Other investments

Deferred tax assets

Other non-current assets

Right of use assets

 16.6 

 7.0 

 32.4 

 52.0 

 41.0 

18.8

7.0

30.2

2.4

52.2

Total non-current assets

7,017.0 

6,310.7

 12.7 

 15.0 

 95.6 

 (2.2)

 - 

 2.2 

 49.6 

 (11.2)

 706.3

-

9.0

505.4

25.8

-

83.5

1.7

20.9

6,160.9

Current assets

Trade receivables

Other receivables

 2,540.4 

2,466.0

 74.4 

1,344.6

 93.8 

127.3

 (33.4)

48.6

31 December 
2023

31 December 
2022*

Variation 
2023/2022 abs

31 December 
2021

Cash and cash equivalents

Subsidies receivables

Inventories

Prepayments

Current income tax receivable

Assets held for sale

 377.2 

 2,614.5 

 115.7 

 12.9 

 - 

 0.3 

334.9

1,280.8

114.0

13.9

24.0

0.3

 42.3 

221.8

 1,333.7 

 1.7 

 (1.0)

 (24.0)

 (0.0)

-

73.0

5.0

23.8

5.4

Total current assets

 5,754.9 

4,361.1

 1,393.7 

1,722.2

Total assets

12,771.9 

10,671.8

2,100.1 

7,883.1

EQUITY AND LIABILITIES

Equity

Share capital

Share premium

Treasury shares reserves

Pre-paid capital contributions in kind 

from shareholders

Revaluation reserve

Legal reserves

Retained earnings

 3,464.4 

3,464.4

 103.0 

 (75.4)

0.0

 159.5 

 449.4 

 1,259.4 

103.0

(75.4)

0.0

92.1

429.6

554.6

-

-

-

 67.4 

 19.8 

 704.8 

3,464.4

103.0

(75.4)

0.0

102.8

408.4

950.2

Total equity attributable to 

shareholders of the Company

5,360.4 

4,568.5

792.0 

4,953.6

Non-controlling interests

 (0.5)

(0.5)

 0.0 

-

Total equity attributable to 

shareholders of the Company

5,360.0 

4,567.9

792.0 

4,953.6

Liabilities

Non-current liabilities

Lease liability – long term

Deferred tax liabilities

Employee benefits

Other liabilities

 29.1 

 121.3 

 151.4 

 37.2 

34.5

60.3

117.3

72.4

Long-term bank borrowings

 794.3 

647.2

 (5.3)

 61.0 

 34.1 

 (35.3)

 147.2 

12.1

161.9

149.2

32.7

118.8

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Total non-current liabilities

 1,133.3 

931.7

 201.7 

474.7

31 December 
2023

31 December 
2022*

Variation 
2023/2022 abs

31 December 
2021

Current liabilities

Lease liability – short term

Bank overdrafts

Trade payables

Other payables

Deferred revenue

Employee benefits

Provisions

Current income tax liability

Current portion of long-term bank 

borrowings

 14.1 

 2,851.2 

 1,671.5 

 1,035.1 

 7.8 

 120.5 

 41.2 

 13.9 

523.3

19.2

2,571.0

1,407.1

867.5

24.8

114.2

53.7

1.1

113.5

 (5.2)

 280.2 

 264.4 

 167.6 

 (16.9)

 6.4 

 (12.5)

 12.8 

9.4

627.4

891.3

271.3

9.7

101.1

34.9

-

409.8

509.7

Trade receivables

Trade receivables mainly include unpaid invoices issued up to the reporting date for the supply and 

distribution of electricity and services, penalties for late payment and estimated receivables relating to 

electricity delivered and services rendered up to the year-end but invoiced after the year-end.

Trade receivables increased by RON 74.4 mn. in 2023, or 3%, from RON 2,466.0 mn. to RON 2,540.4 mn. at 31 

December 2023.

Cash and cash equivalents

Cash and cash equivalents include cash balances, demand deposits and current accounts with banks.

Cash and cash equivalents increased by RON 42.3 mn., or 12.6%, to RON 377.2 mn. from RON 334.9 mn. in 

2022.

Table 26. Cash and cash equivalents 2023-2021 – S-IFRS-EU 

(RON mn.)

31 December 
2023

31 December 
2022

31 December 
2021

Total current liabilities

 6,278.6 

5,172.2

 1,106.5 

2,454.9

Bank current accounts

 223.2 

 141.7 

 167.8 

Total liabilities

7,411.9 

6,103.8

1,308.1 

2,929.6

Total equity and liabilities

12,771.9 

10,671.8

2,100.1 

7,883.1

Source: Consolidated financial statements of Electrica Group as of 31 December 2023
*The amounts for 2022 have been restated, detailed in sub-chapter 6.7 of this report

The materiality threshold established internally at the Group level for analysis of main indicators 

(presented below) is worth RON 85.7 mn., representing 5% of EBITDA.

Fixed assets

Call deposits

Cash in hand

 154.0 

 193.2 

-

 - 

 53.9 

 0.1 

Total cash and cash equivalents in the consolidated 
statement of financial position

 377.2 

 334.9 

 221.8 

Overdrafts used for cash management purposes

 - 

 - 

(627.4)

Total cash and cash equivalents in the consolidated 
statement of cash flows

 377.2 

 334.9 

(405.6)

Fixed assets increased by RON 706.3 mn. in 2023, or 11.2%, from RON 6,310.7 mn. at 31 December 2022 to RON 

Source: Consolidated financial statements of Electrica Group as of 31 December 2023

7,017.0 mn. at 31 December 2023, this change being mainly the cumulative effect of:

•  RON 544.7 mn. increase in network investments made by the distribution subsidiaries (the most relevant 

Share capital and share premium 

values of investments and start-ups are shown in Appendix 2);

The issued share capital in nominal terms consists of 346,443,597 ordinary shares at 31 December 2023 and 

•  increase of RON 95.6 mn. in property, plant and equipment, mainly as a result of the revaluation of 

property, plant and equipment at fair value on 31 December 2023. 

Current assets

2022 with a nominal value of RON 10 per share. 

The company recognizes the changes in its share capital only after their approval in the General Meeting 

of Shareholders and their registration with the Trade Register. Contributions made by the shareholder, 

which are not registered with the Trade Register at the end of the year, are recognized as “Pre-paid capital 

In 2023, current assets increased by RON 1,393.8 mn. compared to 2022, or 32.0%, from RON 4,361.1 mn. to RON 

5,754.9 mn., mainly due to an increase of RON 1,333.8 mn. in subsidies receivable in 2023.

contributions in kind from shareholders”.

There were no changes in the number of shares in 2023.

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Table 27. Number of shares 2023 - 2021 – S-IFRS-EU

Table 29. Legal reserves 2023-2021 (RON mn.) – S-IFRS-EU

Number of ordinary shares

2023

2022

2021

Number of shares at 1 January

346,443,597

346,443,597

346,443,597

Shares issued during the year

-

-

-

Number of shares at 31 December

346,443,597

346,443,597

346,443,597

Source: Electrica

Revaluation reserves

The reconciliation between the opening balance and the closing balance of the revaluation reserve is 

presented below: 

Table 28. Revaluation reserves 2023-2021 (RON mn.) – S-IFRS-EU

Balance at 1 January

2023

92.1

2022

102.8

2021

116.4

Revaluation surplus of land, land improvements and 

buildings

85.5

-

-

Release of revaluation reserve to retained earnings 

corresponding to depreciation and disposals of property, 

(4.4)

(10.7)

(13.5)

plant and equipment

Deferred tax liability arising on revaluation of land, land 

improvements and buildings

(13.7)

-

-

Balance at 1 January 2021

Set-up of legal reserves

Balance at 31 December 2021

Set-up of legal reserves

Balance at 31 December 2022

Set-up of legal reserves

Balance at 31 December 2023

Legal reserves

 392.3 

 16.1 

 408.4 

 21.2 

 429.6 

 19.8 

 449.4 

Source: Consolidated financial statements of Electrica Group as of 31 December 2023

Non-current liabilities

to RON 2,851.2 mn., from RON 2,571.0 mn. at the end 

of 2022, to cover the financing needs of current 

Non-current liabilities increased from RON 931.7 mn. 

activities.

as at 31 December 2022 to RON 1,133.3 mn. as at 31 

December 2023. 

Trade payables

This evolution is a net effect of the variation of 

As of 31 December 2023, trade payables increased 

the main categories of long-term debts, the most 

by approximately RON 264.4 mn. to RON 1,671.5 

significant of which is the increase in the balances 

mn. from RON 1,407.1 mn. as at 31 December 2022 

of long-term loans (CEC Bank and Exim Bank), 

mainly due to the increase in the balance of energy 

through drawings made in 2023 mainly to finance 

suppliers as a result of changes in the energy 

the Group’s investments.

Current liabilities

market as well as the increase in the balance 

of suppliers in relation to capital expenditure. 

Electricity suppliers are mainly state-owned 

electricity producers.

Balance at 31 December

159.5

92.1

102.8

In 2023, current liabilities increased by RON 1,106.4 

Source: Consolidated financial statements of Electrica Group as of 31 December 2023

Legal reserves

The legal reserves are established as 5% of the profit before tax according to the individual statutory 

financial statements of companies within the Group, until the total legal reserves reach 20% of the paid-up 

share capital of each company, according to legal provisions. These reserves are deductible for income tax 

purposes and are not distributable.

mn. to RON 6,278.6 mn. from RON 5,172.2 mn. at 

Other payables

the end of 2022, mainly due to the evolution of the 

categories listed below.

Current portion of long-term bank borrowings 

The current portion of long-term bank loans 

recorded an increase of 409.8 mn. RON, as a result 

of the short-term loan with ERSTE Group Bank, 

Raiffeisen Bank and the maturity of the loan with 

Vista Bank under 12 months..

As of 31 December 2023, other liabilities increased 

by approximately RON 167.5 mn. to RON 1,035.1 mn. 

from RON 867.5 mn. as of 31 December 2022, of 

which VAT payable increased in 2023 by RON 23.7 

mn. and other liabilities increased by RON 122.2 

mn.. Other payables mainly include guarantees, 

sundry creditors, connection fee, habitat tax and 

cogeneration contributions.

Overdrafts

The overdrafts increased in 2023 by RON 280.2 mn. 

2023 ANNUAL REPORT2023 ANNUAL REPORT2023 DIRECTORS’ REPORTELECTRICA FINANCIAL REPORTING FOR 20232023 DIRECTORS’ REPORTELECTRICA FINANCIAL REPORTING FOR 2023180

181

31 
December 
2023

31
December 
2022

Variation 
2023/2022 
abs

31 
December 
2021

 3,464.4 

3,464.4

 103.0 

103.0

 (75.4)

(75.4)

 159.5 

92.1

 449.4 

429.6

 0.0 

 0.0 

 0.0 

 67.4 

 19.8 

 1,907.0 

1,353.9

 553.1 

3,464.4

103.0

(75.4)

102.8

408.4

950.2

6.1.2  Consolidated statement of the financial position – 

S-OMFP 2844/2016 

The following table presents the consolidated statement of the financial position.

EQUITY AND LIABILITIES

Table 30. Consolidated statement of the financial position 2023-2021 (RON. mn) – S-OMFP 2844/2016

31 
December 
2023

31
December 
2022

Variation 
2023/2022 
abs

31 
December 
2021

ASSETS

Non-current assets

Intangible assets related to concession 

agreements

6,220.5 

5,675.9

544.7 

5,514.6

Intangible assets related to NL capitalization

770.9

951.6

(180.7)

Goodwill

Other intangible assets

 24.7 

 27.8 

12.0

12.9

Property, plant and equipment

 595.0 

499.4

Investments in associates

Other investments

Deferred tax assets

Other non-current assets

Right of use assets

 16.6 

 7.0 

 32.4 

 52.0 

 41.0 

18.8

7.0

30.2

2.4

52.2

 12.7 

 14.9 

 95.6 

 (2.2)

 - 

 2.2 

 49.6 

 (11.2)

-

-

9.0

505.4

25.8

-

83.5

1.7

20.9

Total non-current assets

7,787.9 

7,262.3

 525.7 

6,160.9

Equity

Share capital

Share premium

Treasury shares reserves

Revaluation reserve

Legal reserves

Retained earnings

Total equity attributable to shareholders of the 

Company

Liabilities

Non-current liabilities

Lease liability – long term

Deferred tax liabilities

Employee benefits

Other liabilities

Subsidies receivables

 2,614.5 

1,280.8

 1,333.7 

Current assets

Trade receivables

Other receivables

Cash and cash equivalents

Inventories

Prepayments

Current income tax receivable

Assets held for sale

Total current assets

 2,540.4 

2,466.0

 74.4 

1,344.6

Long-term bank borrowings

 794.3 

647.2

Total non-current liabilities

 1,256.7 

1,083.9

 93.8 

 377.2 

127.3

334.9

 (33.5)

 42.3 

 115.7 

 12.9 

 - 

 0.3 

114.0

13.9

24.0

0.3

 1.7 

 (1.0)

 (24.0)

 (0.0)

48.6

221.8

-

73.0

5.0

23.8

5.4

 5,754.9 

4,361.1

 1,393.7 

1,722.2

Current liabilities

Lease liability – short term

 14.1 

19.2

 (5.1)

Bank overdrafts

Trade payables

Other payables

Deferred revenue

Employee benefits

Provisions

 2,851.2 

2,571.0

 1,671.5 

 1,035.1 

 7.8 

 120.5 

 41.2 

1,407.1

867.5

24.8

114.2

53.7

 280.2 

 264.4 

 167.6 

 (17.0)

 6.3 

 (12.5)

Total assets

13,542.8 

11,623.3

1,919.5 

7,883.1

 29.1 

 244.7 

 151.4 

 37.2 

34.5

212.6

117.3

72.4

 (5.4)

 32.1 

 34.1 

 (35.2)

 147.1 

 172.8 

12.1

161.9

149.2

32.7

118.8

474.7

9.4

627.4

891.3

271.3

9.7

101.1

34.9

Total equity attributable to shareholders of the 

Company

6,008.0 

5,367.8

640.2 

4,953.6

Non-controlling interests

 (0.5)

(0.5)

 0.0 

-

6,007.5 

5,367.2

640.3 

4,953.6

2023 ANNUAL REPORT2023 ANNUAL REPORT2023 DIRECTORS’ REPORTELECTRICA FINANCIAL REPORTING FOR 20232023 DIRECTORS’ REPORTELECTRICA FINANCIAL REPORTING FOR 2023182

183

31 
December 
2023

31
December 
2022

Variation 
2023/2022 
abs

31 
December 
2021

Cash and cash equivalents

Cash and cash equivalents include cash balances, demand deposits and current accounts with banks.

Cash and cash equivalents increased by RON 42.3 mn., or 12.6%, to RON 377.2 mn. from RON 334.9 mn. in 2022

Current income tax liability

 13.9 

Current portion of long-term bank borrowings

523.3

1.1

113.5

 12.8 

-

409.8

509.7

Table 31. Cash and cash equivalents 2023-2021 – S-OMFP 2844/2016

Total current liabilities

 6,278.6 

5,172.2

 1,106.4 

2,454.9

(RON mn.)

31 December 
2023

31 December 
2022

31 December 
2021

Total liabilities

7,535.3 

6,256.1

1,279.2 

2,929.6

Bank current accounts

 223.2 

 141.7 

 167.8 

Total equity and liabilities

13,542.8 

11,623.3

1,919.5 

7,883.1

Source: Consolidated financial statements of Electrica Group as of 31 December 2023

Call deposits

Cash in hand

 154.0 

 193.2 

 0.0 

 - 

 53.9 

 0.1 

The materiality threshold established internally at the Group level for analysis of main indicators (presented 

below) is worth RON 86.6 mn., representing 5% of EBITDA.

Total cash and cash equivalents in the consolidated 
statement of financial position

 377.2 

 334.9 

 221.8 

Fixed assets
Fixed assets increased by RON 525.7 mn. in 2023, or 7%, from RON 7,262.3 mn. at 31 December 2022 to RON 

7,787.9 mn. at 31 December 2023, this change being mainly the cumulative effect of: 

Overdrafts used for cash management purposes

 - 

 - 

(627.4)

Total cash and cash equivalents in the consolidated 
statement of cash flows

 377.2 

 334.9 

(405.6)

•  RON 544.7 mn. increase in network investments made by the distribution subsidiaries (the most relevant 

values of investments and start-ups are shown in Appendix 2); 

Source: Consolidated financial statements of Electrica Group as of 31 December 2023

•  decrease of 180.6 mn. RON in the capitalization of additional costs with NL; 

Share capital and share premium 

• increase of RON 95.6 mn. in property, plant and equipment, mainly as a result of the revaluation of 

property, plant and equipment at fair value on 31 December 2023.

The issued share capital in nominal terms consists of 346,443,597 ordinary shares at 31 December 2023 and 

2022 with a nominal value of RON 10 per share. 

Current assets
In 2023, current assets increased by RON 1,393.8 mn. compared to 2022, or 32.0%, from RON 4,361.1 mn. to RON 

5,754.9 mn., mainly due to an increase of RON 1,333.8 mn. in subsidies receivable in 2023.

Trade receivables

Trade receivables mainly include unpaid invoices issued up to the reporting date for the supply and 

distribution of electricity and services, penalties for late payment and estimated receivables relating to 

electricity delivered and services rendered up to the year-end but invoiced after the year-end.

Trade receivables increased by RON 74.4 mn. in 2023, or 3%, from RON 2,466.0 mn. to RON 2,540.4 mn. at 31 

December 2023.

The company recognizes the changes in its share capital only after their approval in the General Meeting 

of Shareholders and their registration with the Trade Register. Contributions made by the shareholder, 

which are not registered with the Trade Register at the end of the year, are recognized as “Pre-paid capital 

contributions in kind from shareholders”.

There were no changes in the number of shares in 2023.

Table 32. Number of shares 2023 - 2021 – S-OMFP 2844/2016

Number of ordinary shares

2023

2022

2021

Number of shares at 1 January

346,443,597

346,443,597

346,443,597

Shares issued during the year

-

-

-

Number of shares at 31 December

346,443,597

346,443,597

346,443,597

Source: Electrica

2023 ANNUAL REPORT2023 ANNUAL REPORT2023 DIRECTORS’ REPORTELECTRICA FINANCIAL REPORTING FOR 20232023 DIRECTORS’ REPORTELECTRICA FINANCIAL REPORTING FOR 2023 
184

185

Revaluation reserves

Table 34. Legal reserves 2023-2021 (RON mn.) – S-OMFP 2844/2016

The reconciliation between the opening balance and the closing balance of the revaluation reserve is 

presented below: 

Table 33. Revaluation reserves 2023-2021 (RON mn.) – S-OMFP 2844/2016

Balance at 1 January

92.1

102.8

2023

2022

2021

116.4

Revaluation surplus of land, land improvements and 

buildings

85.5

-

-

Release of revaluation reserve to retained earnings 

corresponding to depreciation and disposals of property, 

(4.4)

(10.7)

(13.5)

plant and equipment

Deferred tax liability arising on revaluation of land, land 

improvements and buildings

(13.7)

-

-

Balance at 31 December

159.5

92.1

102.8

Source: Consolidated financial statements of Electrica Group as of 31 December 2023

Legal reserves

The legal reserves are established as 5% of the profit before tax according to the individual statutory 

financial statements of companies within the Group, until the total legal reserves reach 20% of the paid-up 

share capital of each company, according to legal provisions. These reserves are deductible for income tax 

purposes and are not distributable.

Balance at 1 January 2021

Set-up of legal reserves

Balance at 31 December 2021

Set-up of legal reserves

Balance at 31 December 2022

Set-up of legal reserves

Balance at 31 December 2023

Legal reserves

 392.3 

 16.1 

 408.4 

 21.2 

 429.6 

 19.8 

 449.4 

Source: Consolidated financial statements of Electrica Group as of 31 December 2023

Non-current liabilities 

Overdrafts

Non-current liabilities increased from RON 1,083.9 

The overdrafts increased in 2023 by RON 280.2 mn. 

mn. as at 31 December 2022 to RON 1,256.7 mn. as at 

to RON 2,851.2 mn., from RON 2,571.0 mn. at the end 

31 December 2023. 

of 2022, to cover the financing needs of current 

This evolution is a net effect of the variation of 

the main categories of long-term debts, the most 

Trade payables

activities.

significant of which is the increase in the balances 

of long-term loans (CEC Bank and Exim Bank), 

through drawings made in 2023 mainly to finance 

the Group’s investments.

Current liabilities

In 2023, current liabilities increased by RON 1,106.4 

mn. to RON 6,278.6 mn. from RON 5,172.2 mn. at 

As of 31 December 2023, trade payables increased 

by approximately RON 264.4 mn. to RON 1,671.5 

mn. from RON 1,407.1 mn. as at 31 December 2022 

mainly due to the increase in the balance of energy 

suppliers as a result of changes in the energy 

market as well as the increase in the balance 

of suppliers in relation to capital expenditure. 

Electricity suppliers are mainly state-owned 

the end of 2022, mainly due to the evolution of the 

electricity producers.

categories listed below.

Other payables

Current portion of long-term bank borrowings 

The current portion of long-term bank loans 

recorded an increase of 409.8 mn. RON, as a result 

of the short-term loan with ERSTE Group Bank, 

Raiffeisen Bank and the maturity of the loan with 

Vista Bank under 12 months.

As of 31 December 2023, other liabilities increased 

by approximately RON 167.5 mn. to RON 1,035.1 mn. 

from RON 867.5 mn. as of 31 December 2022, of 

which VAT payable increased in 2023 by RON 23.7 

mn. and other liabilities increased by RON 122.2 

mn.. Other payables mainly include guarantees, 

sundry creditors, connection fee, habitat tax and 

cogeneration contributions.

2023 ANNUAL REPORT2023 ANNUAL REPORT2023 DIRECTORS’ REPORTELECTRICA FINANCIAL REPORTING FOR 20232023 DIRECTORS’ REPORTELECTRICA FINANCIAL REPORTING FOR 2023186

187

6.2  Consolidated statement of profit or loss

6.2.1  Consolidated statement of profit or loss – S-IFRS-EU

The following table presents the consolidated statement of profit or loss of Electrica Group for 2023, 2022 

and 2021. 

Table 35. Consolidated statement of profit or loss (RON mn.) – S-IFRS-EU

Key financial indicators for 2023 and their evolution compared to 2022:

•   Revenues: RON 9,816.6 mn., down RON 193.3 mn., or 1.9%; 

•  EBITDA: positive RON 1,714.1 mn., up RON 1,340.5 mn. or 358.8%;

•  EBIT: positive RON 1,191.8 mn., up RON 1,314.4 mn.;

•  EBT: positive RON 897,9 mn., up RON 1,185.6 mn.;

•  Net result: net profit of 772.1 mn. RON, up by 1,012.6 mn. RON.

Revenues and other income 

Revenue

Other income

2023

2022*

Variation 
2023/2022

2021

In 2023, Electrica recorded total revenues (including other operating revenues) of RON 13,315.1 mn., an 

increase of RON 464.3 mn., or 3.6%, from RON 12,850.9 mn. in 2022; the variation is generated by the evolution 

 9,816.8 

10,009.9

 (496.1)

7,178.9

of other operating revenues, which mainly represent subsidies for the supply segment. 

 3,498.6 

2,841.0

 657.6 

195.8

Revenues

Electricity and natural gas purchased  

 (9,058.0)

(10,506.8)

 1,448.8 

(5,694.7)

(976.4)

(593.5)

(382.9)

(485.8)

As at 31 December 2023, Electrica recorded revenues of RON 9,816.6 mn., a decrease of RON 193.3 mn. 

compared to 31 December 2022, being the net effect of the following main factors:  

Construction costs related to concession 

arrangements

Employee benefits

 (962.1)

(823.4)

 (138.7)

(802.7)

•  RON 926.5 mn. decrease in the supply segment; 

Repairs, maintenance and materials 

 (95.2)

(88.2)

 (7.0)

(102.4)

•  the increase of RON 725.9 mn. in revenues from the distribution segment.

Depreciation and amortization

 (524.5)

(496.3)

 (28.2)

(480.8)

Impairment for trade and other receivables, net

(75.8)

(112.3)

36.5

(70.6)

Figure 42: Revenue for 2023 and comparative information (RON mn.) – S-IFRS-EU

Other operating expenses

 (431.4)

(353.0)

 (78.4)

(343.1)

Operating profit

 1,191.8 

(122.6)

 1,314.4 

(605.5)

Finance income

Finance costs

Net finance cost

Profit before tax

Income tax expense

Profit for the year

Earnings per share

 3.4 

9.7

 6.3

 (297.2)

(174.7)

 (122.5)

 (293.8)

(165.0)

 (128.8)

2.6

(29.5)

(26.9)

 897.9 

(287.6)

 1,185.6 

(632.4)

 (125.8)

47.2

 (173.0) 

79.5

 772.1 

(240.5)

1,012.6 

(552.9)

Basic and diluted earnings per share (RON)

2.27

(0.71)

2.98

(1.63)

Source: Electrica

Source: Consolidated financial statements of Electrica Group as of 31 December 2023
*The amounts for 2022 have been restated, detailed in sub-chapter 6.7 of this report

The materiality threshold established internally at the Group level for analysis of main indicators 

(presented below) is worth RON 85.7 mn., representing 5% of EBITDA.

10,010 

609 

9,817 

543 

9,401 

9,273 

7,179 

582 

6,597 

2021

2022

2023

Green C ertificates

Revenu es

Revenu es  excl

Green C ertificates

2023 ANNUAL REPORT2023 ANNUAL REPORT2023 DIRECTORS’ REPORTELECTRICA FINANCIAL REPORTING FOR 20232023 DIRECTORS’ REPORTELECTRICA FINANCIAL REPORTING FOR 2023188

189

Electricity and natural gas purchased 

EBITDA and EBITDA margin

In 2023, purchased electricity expenditure decreased by RON 1,448.8 mn., or 13.8%, to RON 9,058.0 mn. from 

RON 10,506.8 mn. in the comparative period.

This variation is mainly generated by the significant decrease in the cost of electricity and natural gas 

purchased for the supply activity and for the NL hedging, as well as the cost of green certificates (re-

invoiced cost).

Electricity purchase prices fell in 2023 as a result of the implementation of the MACEE centralised purchase 

mechanism, under which generators are obliged to sell 80% of available energy at a price of 450 RON/MWh, 

an impact mitigated by the increase in electricity volumes needed to cover grid losses.

Table 36. Electricity, natural gas and goods purchased 2023-2021 (RON mn.) – S-IFRS-EU

(RON mn.)

2023

2022

Variation 
2023/2022

2021

Electricity purchased to cover network losses

1,039.9

1,987.2

(947.3)

1,087.1

Figure 43: EBITDA and EBITDA margin for 2023 and comparative information (RON mn. and %) – 

S-IFRS-EU

17.5%

1,714 

-1.8%

(128)

3.7%

374 

EBITDA

EBITDA Margin

Source: Electrica

Operating profit

Electricity, natural gas and goods and 

purchased for supply

Transmission and system services related to 

supply activities

Green certificates

7,202.1

7,613.1

(411.0)

3,750.0

272.6

297.4

(24.8)

275.9

same period last year, with the EBIT evolution mainly due to the favourable impact of lower purchased 

The Group Operating profit (EBIT) increased increased by approximately RON 1,314.4 mn., compared to the 

543.4

609.1

(65.7)

581.7

electricity and natural gas costs.

Figure 44: EBIT and EBIT margin for 2023 and comparative information (RON mn. and %) – 

Total electricity and natural gas purchased 

9,058.0

10,506.8

(1,448.8)

5,694.7

S-IFRS-EU

Source: Electrica

Construction costs 

In 2023, the costs for the construction of electricity grids in connection with concession agreements 

increased by RON 382.9 mn. or 64.5% to RON 976.4 mn. from RON 593.5 mn. recorded in 2022, correlating 

with the evolution of the investments recognizable in RAB made in 2023, which were at a higher level than in 

2022.

(606)

-8.4%

-1.2%

(123)

12.1%

1,192 

EBIT

EBIT Margin

Source: Electrica

2023 ANNUAL REPORT2023 DIRECTORS’ REPORTELECTRICA FINANCIAL REPORTING FOR 2023MESSAGE FROM THE CHAIR OF THE BOARDS OF DIRECTORS2023 ANNUAL REPORT190

Net finance cost  

Net financial expenses (loss from net financial activity) at group level increased by RON 128.8 mn. in 2023 

compared to 2022, as a result of the increase in financial expenses, correlated with the increase in external 

financing.

Profit before tax 

The Group recorded a gross profit in the amount of RON 897.9 mn. compared to loss of RON 287.6 mn. in 

2022 as a result of the factors mentioned above.

Income tax expense 

The tax on income was an expense of RON 125.8 mn. in 2023, generated by the incurred gross profit.

Net result for the year

As a result of the factors presented above, in 2023 the net result of the exercise materialized in a profit of 

RON 772.1 mn., having an increase of RON 1,012.6 mn. compared to the loss of RON 240.5 mn. recorded in 

2022.

Figure 45: Net profit and Net profit margin for 2023 and comparative information (RON mn. and 

%) – S-IFRS-EU

7.9%

-2.4%

Net Result

Net Result Margin

-7.7%

Source: Electrica

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5
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NL Capitalization

Regulated result 2023

Regulated amortiz.

Controlable cost

NL realized

Deviation of NL. reg. capit.

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2023 ANNUAL REPORT2023 ANNUAL REPORT2023 DIRECTORS’ REPORTELECTRICA FINANCIAL REPORTING FOR 20232023 DIRECTORS’ REPORTELECTRICA FINANCIAL REPORTING FOR 2023 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
192

193

6.2.2 Consolidated statement of profit or loss – S-OMFP 2844/2016

The materiality threshold established internally at the Group level for analysis of main indicators 

(presented below) is worth RON 86.6 mn., representing 5% of EBITDA.

The following table presents the consolidated statement of profit or loss of Electrica Group for 2023, 2022 

and 2021. 

Table 37. Consolidated statement of profit or loss (RON mn.) – S-OMFP 2844/2016

Key financial indicators for 2023 and their evolution compared to 2022:

•   Revenues: RON 9,816.6 mn., down RON 193.3 mn., or 1.9%; 

•   EBITDA: positive RON 1,732.7 mn., up RON 369.8 mn. or 27.1%;

Revenue

Other income

Capitalised costs of intangible non-current 

assets

2023

2022

Variation 
2023/2022

2021

•   EBIT: positive RON 1,011.1 mn., up RON 182.2 mn.;

•   EBT: positive RON 717.3 mn., up RON 53.4 mn.;

 9,816.6 

10,009.9

 (193.3)

7,178.9

•   Net result: net profit of 620.4 mn. RON, up by 61.6 mn. RON.

 3,498.6 

2,841.0

 657.6 

195.8

Revenues and other income 

 18.6 

989.3

(970.7)

 -

In 2023, Electrica recorded total revenues (including other operating revenues) of RON 13,315.2 mn., an 

increase of RON 464.3 mn., or 3.6%, from RON 12,850.9 mn. in 2022; the variation is generated by the evolution 

Electricity and natural gas purchased  

 (9,058.0)

(10,506.8)

 1,448.8 

(5,694.7)

of other operating revenues, which mainly represent subsidies for the supply segment. 

Construction costs related to concession 

arrangements

Employee benefits

(976.4)

(593.5)

(382.9)

(485.8)

Revenues

 (962.1)

(823.4)

 (138.7)

(802.7)

compared to 31 December 2022, being the net effect of the following main factors:  

As at 31 December 2023, Electrica recorded revenues of RON 9,816.6 mn., a decrease of RON 193.3 mn. 

Repairs, maintenance and materials 

 (95.2)

(88.2)

 (7.0)

(102.4)

• RON 269.5 mn. decrease in the supply segment; 

Depreciation and amortization

 (723.7)

(534.0)

 (189.7)

(480.8)

Reversal of impairment/(Impairment) for trade 

and other receivables, net

(75.8)

(112.3)

36.5

(70.6)

• the increase of RON 39.6 mn. in revenues from the distribution segment.

Other operating expenses

 (431.4)

(353.0)

 (78.4)

(343.1)

Figure 47: Revenue for 2023 and comparative information (RON mn.) – S-OMFP 2844/2016

Operating profit

 1,011.1 

828.9

 182.2 

(605.5)

Gain from bargain purchase of subsidiaries*

-

-

-

-

2.6

(29.5)

(26.9)

-

7,179 

582 

6,597 

10,010 

609 

9,817 

543 

9,401 

9,273 

 3.4 

9.7

 (6.3)

 (297.2)

(174.7)

 (122.5)

 (293.8)

(165.0)

 (128.8)

-

 717.3 

 (96.9)

-

663.9

(105.1)

-

 53.4 

(632.4)

 8.2 

79.5

 620.4 

558.8

 61.6 

(552.9)

2021

2022

2023

Basic and diluted earnings per share (RON)

1.83

1.65

0.18

(1.63)

Source: Consolidated financial statements of Electrica Group as of 31 December 2023
*the value is included in EBIT, is separated only for disclosure purposes

Source: Electrica

Green C ertificates

Revenu es

Revenu es  excl

Green C ertificates

Finance income

Finance costs

Net finance cost

Profit before tax

Income tax expense

Profit for the year

Earnings per share

2023 ANNUAL REPORT2023 ANNUAL REPORT2023 DIRECTORS’ REPORTELECTRICA FINANCIAL REPORTING FOR 20232023 DIRECTORS’ REPORTELECTRICA FINANCIAL REPORTING FOR 2023194

195

Income from the production of intangible assets 

31 March 2023, as well as amending and supplementing certain regulatory acts in the field of energy - in 

In the distribution segment, it is recognized the capitalization of additional costs with the purchase of electricity 

as income from the production of intangible assets in the amount of RON 18.6 mn. in 2023, compared to RON 

989.3 mn. realized in 2022. 

The capitalization of the additional cost with the purchase of electricity realized in the period April 1, 2022 to March 

31, 2025 in order to cover NL compared to the costs included in the tariffs approved for this period is provided for 

by GEO 119/2022, for the amendment and completion of GEO no. 27/2022, approved and amended by Law no. 

357/16 December 2022, and ANRE Order No. 129/2022 approving the Methodological Rules for the recognition in 

tariffs of additional costs for the purchase of electricity to cover own technological consumption compared to the 

costs included in the regulated tariffs published in MO 1019/19.10.2022, as amended and supplemented by ANRE 

Order No. 104. /2023.

Capitalised costs are amortised over a period of 5 years from the date of capitalisation and are reimbursed at 

50% of the regulated rate of return (RRR) approved by ANRE, applicable during the period of amortisation of these 

force since 20 December 2023. 

Correlation of the period of application of GEO 27/2022: The amounts capitalised under Art. III para. (1) of 

GEO no. 119/2022 amending and supplementing GEO no. 27/2022 on measures applicable to final customers 

in the electricity and natural gas market for the period from 1 April 2022 to 31 March 2023, as well as 

amending and supplementing certain regulatory acts in the field of energy, with subsequent additions, shall 

be recorded in the accounts under accounting article 208 “Other intangible assets”/separate item = 721 

“Income from the production of intangible assets”, as follows:

•  (f) as at 31 December 2023, for amounts relating to the period 1 September 2023 to 31 December 2023;

•  (g) quarterly, on the last day of each quarter, for the corresponding amounts for the period from 1 January 

2024 to 31 March 2025.

Electricity and natural gas purchased 

costs. These are recognised as a separate component in the regulated tariffs, referred to as the component 

In 2023, purchased electricity expenditure decreased by RON 1,448.8 mn., or 13.8%, to RON 9,058.0 mn. from RON 

related to additional costs with NL. 

10,506.8 mn. in the comparative period.

In both 2022 and 2023, the difference between the actual energy purchase costs and the ex-ante ANRE prices 

This variation is mainly generated by the significant decrease in the cost of electricity and natural gas purchased 

recognised in the distribution tariffs are capitalised as intangible assets. These costs will be recovered in tariffs in 

for the supply activity and for the NL hedging, as well as the cost of green certificates (re-invoiced cost).

5 years.

In 2023 ANRE amended the Methodology for setting tariffs for the electricity distribution service, by ANRE Order 

mechanism, under which generators are obliged to sell 80% of available energy at a price of 450 RON/MWh, an 

no. 79/2023 (Order) and defined 2024 as the transition period from the fourth regulatory period (RP4) to the fifth 

impact mitigated by the increase in electricity volumes needed to cover grid losses.

regulatory period (PR5). Thus, for DEER, in 2024 the zonal distribution tariffs established on the basis of a single 

regulated revenue and single NL targets for the total DEER are maintained.

Table 39. Electricity, natural gas and goods purchased 2023-2021 (RON mn.) –  

Electricity purchase prices fell in 2023 as a result of the implementation of the MACEE centralised purchase 

Capitalised costs with own technological consumption are recognised for each distribution zone, during 2023 

they were 18.6 mn. RON, related to the Muntenia Nord distribution zone, as shown in the table below:

Table 38. NL - intangible assets 2023 (RON mn.) – S-OMFP 2844/2016

Network 
distribution areas

Net carrying 
amount at 31 
December 2022

Capitalisation cost 
with NL Intangible 
asset 01 Jan-31 Dec 
2023 (gross value)

Amortisation 
during 2023

Net carrying 
amount at 31 
December 2023

Muntenia Nord area

 374.6 

Transilvania Nord area

 329.9 

Transilvania Sud area

 247.0 

 18.6 

 - 

 - 

 78.0 

 66.0 

 55.2 

Total

Source: Electrica

 951.6 

 18.6 

 199.2 

 315.2 

 264.0 

 191.8 

 770.9 

MF Order No. 5378/2023 approving certain accounting specifications in application of the provisions 

of Article III para. (1) of GEO no. 119/2022 amending and supplementing GEO no. 27/2022 on measures 

S-OMFP 2844/2016

(RON mn.)

2023

2022

Variation 
2023/2022

2021

Electricity purchased to cover network losses

1,039.9

1,987.2

(947.3)

1,087.1

Electricity, natural gas and goods and 

purchased for supply

Transmission and system services related to 

supply activities

Green certificates

7,202.1

7,613.1

(411.0)

3,750.0

272.6

297.4

(24.8)

275.9

543.4

609.1

(65.7)

581.7

Total electricity and natural gas purchased 

9,058.0

10,506.8

(1,448.8)

5,694.7

Source: Electrica

Construction costs

In 2023, the costs for the construction of electricity grids in connection with concession agreements 

increased by RON 382.9 mn. or 64.5% to RON 976.4 mn. from RON 593.5 mn. recorded in 2022, correlating 

with the evolution of the investments recognizable in RAB made in 2023, which were at a higher level than in 

applicable to end customers in the electricity and natural gas market during the period from 1 April 2022 to 

2022.

2023 ANNUAL REPORT2023 ANNUAL REPORT2023 DIRECTORS’ REPORTELECTRICA FINANCIAL REPORTING FOR 20232023 DIRECTORS’ REPORTELECTRICA FINANCIAL REPORTING FOR 2023196

197

EBITDA and EBITDA margin

financing, but also of the reduction in financial income, following the decrease in deposits. 

Figure 48: EBITDA and EBITDA margin for 2023 and comparative information (RON mn. and %) – 

Profit before tax

13.6%13.6%

1,363
1,363

17.7%17.7%

1,733
1,733

The Group recorded a gross profit in the amount of RON 717.3 mn. compared to RON 663.9 mn. in 2022 as a 

result of the factors mentioned above.

Income tax expense 

The tax on income was an expense of RON 96.9 mn. in 2023, generated by the incurred gross profit. 

Net result for the year

As a result of the factors presented above, in 2023 the net result of the exercise materialized in a profit of 

RON 620.4 mn., having an increase of RON 61.6 mn. compared to the profit of RON 558.8 mn. recorded in the 

period comparison of the year 2022.. 

EBITDA

EBITDA Margin

Figure 50: Net profit and Net profit margin for 2023 and comparative information  

(RON mn. and %) – S-OMFP 2844/2016

S-OMFP 2844/2016

-1.8%-1.8%

(128)
(128)

Source: Electrica

Operating profit

5.6%5.6%

559559

6.3%6.3%

620620

Net Result

Net Result Margin

(553)
(553)

-7.7%-7.7%

Source: Electrica

The Group Operating profit (EBIT) increased increased by approximately RON 182.2 mn., compared to the 

same period last year, with the EBIT evolution mainly due to the favourable impact of lower purchased 

electricity and natural gas costs.

Figure 49: EBIT and EBIT margin for 2023 and comparative information (RON mn. and %) – 

S-OMFP 2844/2016

8.3%8.3%

10.3%10.3%

1,011
1,011

EBIT

EBIT Margin

-8.4%-8.4%

Source: Electrica

Net finance cost 

Net financial expenses (loss from net financial activity) at group level increased by RON 128.8 mn. in 2023 

compared to 2022, as a result of the increase in financial expenses, correlated with the increase in external 

2023 ANNUAL REPORT2023 ANNUAL REPORT2023 DIRECTORS’ REPORTELECTRICA FINANCIAL REPORTING FOR 20232023 DIRECTORS’ REPORTELECTRICA FINANCIAL REPORTING FOR 2023198

6
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OMFP 2844 net result

Other OMFP 2844 adj.

OMFP 2844 adj. profit tax

OMFP 2844 adj. deprec.

OMFP 1802 result

Profit tax OMFP 1802

Financial result

Operating result

Other costs

Monopoly tax

Provision adjust.

Regulated deprec.

5
1
6
-

Accounting deprec.

NL Capitalization

Regulated result 2023

2
7
5
-

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Controlable cost

NL realized

capit.
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0
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6.3  Consolidated cash flow statement

6.3.1  Consolidated cash flow statement –S-IFRS-EU

The following table presents the consolidated statement of cash flows of Electrica Group for 2023, 2022 and 

2021.

Table 40. Consolidated cash flow statement (RON mn.) –S-IFRS-EU

Cash flows from operating activities

Profit for the year

Adjustments for:

Depreciation 

Amortization

Impairment of property, plant and equipment and 

intangible assets, net

2023

2022*

Variation
2023/2022

2021

 772.1 

 (240.5)

 1,012.6 

(552.9)

 16.4 

19.9

 (3.5)

21.1

 508.1 

476.5

 31.6 

459.7

-

-

-

(3.9)

Loss on disposal of property, plant and equipment and 

intangible assets

(0.1)

(0.4)

0.3

Evaluation of fixed assets recognized in profit, net

 (2.1)

-

 (2.1)

2.7

-

(Reversal of impairment)/Impairment of trade and other 

receivables, net

75.8

112.3

(36.5)

70.6

(Reversal of impairment)/Impairment of assets held for sale

-

-

-

Change in provisions, net

 (12.5)

18.8

 (31.3)

0.6

15.7

Net finance cost

 293.8 

165.0

 128.8 

26.9

Changes in employee benefits obligations

 - 

(4.4)

 4.4 

5.1

Corporate income tax expense

 125.8 

 (47.2)

 173.0 

(79.5)

Changes in:

Trade receivables

Other receivables

Prepayments

Inventories

Trade payables

Other payables

 1,777.4 

500.1

1,277.3 

(33.9)

 (309.2)

(1,286.7)

 977.5 

(391.4)

 5.6 

 0.9 

(13.9)

 (8.3) 

(22.9)

(8.8)

 9.7 

(2.2)

 (1.7)

(41.0)

 39.3 

(2.9)

 244.4 

494.6

(250.2)

274.8

 110.4 

570.2

(459.8)

32.5

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2023 ANNUAL REPORT2023 ANNUAL REPORT2023 DIRECTORS’ REPORTELECTRICA FINANCIAL REPORTING FOR 20232023 DIRECTORS’ REPORTELECTRICA FINANCIAL REPORTING FOR 2023 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
200

201

Employee benefits 

Deferred revenue

Subsidies receivables

2023

2022*

Variation
2023/2022

2021

28.5 

(6.5)

35.0 

(16.9)

15.1

(32.0)

(1,333.7) 

(1,280.8)

(52.9) 

3.2

4.0

-

2023

2022*

Variation
2023/2022

2021

Net cash from/(used in) financing activities

760.0 

1,848.6

(1,088.6)

(414.0)

Net (decrease)/increase in cash and cash equivalents

42.3 

113.1

(70.7)

(811.5)

Cash and cash equivalents at 1 January

334.9 

(405.6)

740.5 

406.0

Cash generated from operating activities

505.7 

(1,030.0)

1,535.7 

(138.9)

Overdrafts used for cash management purposes

-

627.4

(627.4)

-

Interest paid

Income tax paid 

 (278.5)

(149.4)

 (129.1)

(24.1)

 (59.0)

(1.2)

 (57.8)

(31.4)

Cash and cash equivalents at 31 December 

377.2 

334.9

42.3 

(405.6)

Source: Consolidated financial statements of Electrica Group as of 31 December 2023
*The amounts for 2022 have been restated, detailed in sub-chapter 6.7 of this report

The materiality threshold established internally at the Group level for analysis of main indicators 

(presented below) is worth RON 85.7 mn., representing 5% of EBITDA.

Net cash from operating activities

168.3 

(1,180.6)

1,348.9 

(194.4)

In 2023, the net increase in cash and cash equivalents amounted to RON 42.3 mn.

Cash flows from investing activities

Payments for purchases of property, plant and equipment

(10.4)

(8.3)

(2.1)

(10.5)

Payments for network construction related to concession 

agreements

(845.3)

(537.8)

(307.6)

(483.8)

Payments for purchase of other intangible assets

 (21.3)

(7.8)

 (13.5)

(6.3)

Proceeds from sale of property, plant and equipment

Interest received

Restricted cash

Net cash effect from gain of control over the acquired 

subsidiary

Payment for acquisition of associated

Payment for acquisition of subsidiaries

 0.2

 3.3 

 - 

 (1.9)

 (4.1)

 (6.3)

0.6

2.8

-

-

(0.0)

(4.5)

(0.4)

 0.5 

1.5

1.8

 - 

320.0

 (1.9)

-

 (4.1)

(25.8)

 (1.8)

-

The net cash generated by the operating activity 

The financing activity generated a decrease in cash 

was RON 168.3 mn.. The net profit for the period 

and cash equivalents of RON 1,088.6 mn. (positive 

was RON 772.1 mn.; the main adjustments for non-

impact due to lower borrowed cash than in 2022), 

monetary elements of the net profit were: the 

the main factors being withdrawals from long-term 

addition of depreciation of tangible and intangible 

bank loans of RON 742.7 mn., withdrawals from 

assets in the amount of RON 508.1 mn., the 

overdrafts in the amount of RON 271.9 mn., but also 

elimination of the impact of value adjustments for 

loan repayments of RON 187.7 mn.. Dividends were 

trade receivables of RON 75.8 mn., the addition of 

paid to shareholders, amounting to RON 40.1 mn..

the profit tax expense of RON 125.8 mn. and the net 

financial loss of RON 293.8 mn..

The changes in working capital had a positive effect 

of RON 505.7 mn.. This impact was generated by the 

negative impact of changes in subsidies receivable 

in the amount of RON 1,333.7 mn., trade and other 

receivables in the amount of RON 303.5 mn. and 

the positive impact of changes in trade and other 

payables in the amount of RON 354.8 mn., thus 

In 2022, the net increase in cash and cash 

equivalents amounted to RON 113.1 mn.

The net cash generated by the operating activity 

was loss of RON (1,180.6) mn. The net loss of the 

period was RON 240.5 mn.; main adjustments for 

the depreciation and amortization of RON 476.5 mn., 

eliminating the impact of the impairment of trade 

receivables of RON 112.3 mn. and the net finance cost 

decreasing the cash flow from operations (FFO) in 

of RON 165.0 mn..

Net cash used in investing activities

(885.9) 

(554.9)

(331.0) 

(203.2)

the amount of RON 1,777.4 mn.. Income tax paid and 

Cash flows from financing activities

Proceeds from long term bank borrowings

 742.7 

217.6

 525.1 

234.7

Proceeds from overdrafts

 271.9 

1,900.4

 (1,628.5)

-

Repayment of long term bank loans

 (187.7)

(92.9)

 (94.8)

(385.9)

Payment of lease liabilities

 (26.8)

(24.2)

 (2.6)

(15.2)

Dividends paid

 (40.1)

(152.3)

 112.2 

(247.6)

interest paid totalled RON 337.5 mn..

For the investment activity, cash was used in the 

amount of RON 885.9 mn., the highest values being 

related to payments for the construction of networks 

in connection with the concession agreements 

of RON 845.3 mn., these registering an increase 

in payments for investments of RON 307.5 mn. 

compared to the comparative period, and as a 

Changes in working capital had a negative effect, of 

RON 1,030.0 mn., the most significant impact being 

generated by the negative change in trade and 

other receivables, in the amount of RON 1,272.8 mn., 

in trade and other payables of RON 1,064.8 mn. (out 

of which, the change in employee benefits of RON 

6.5 mn., having a negative impact) and in subsidies 

receivables in amount of RON 1,280.8 mn.. Income 

tax paid and interest paid amounted to RON 150.6 

result of a larger investment plan made in 2023 vs. 

mn..

2022 in the distribution segment.

For the investment activity, the cash used was of 

2023 ANNUAL REPORT2023 ANNUAL REPORT2023 DIRECTORS’ REPORTELECTRICA FINANCIAL REPORTING FOR 20232023 DIRECTORS’ REPORTELECTRICA FINANCIAL REPORTING FOR 2023RON 554.9 mn., the most significant values being 

related to the payments for the construction 

and rehabilitation of RON 537.8 mn., these being 

increased y-o-y with RON 54.0 mn..

The financing activity generated a decrease in 

cash and cash equivalents of RON 2,262.6 mn., the 

main factors being the proceeds from long term 

bank borrowings of RON 217.6 mn., proceeds from 

overdrafts of RON 1,900.4 mn., reimbursement of 

loans of RON 92.9 mn. and the dividends paid to the 

shareholders, of RON 152.3 mn..

202

203

6.3.2 Consolidated cash flow statement- S-OMFP 2844/2016

The following table presents the consolidated statement of cash flows of Electrica Group for 2023, 2022 and 

2021.

Table 41. Consolidated cash flow statement (RON mn.) –S-IFRS-EU

Cash flows from operating activities

Profit for the year

Adjustments for:

Depreciation 

Amortization

2023

2022

Variation
2023/2022

2021

 620.4 

558.8

61.5

(552.9)

 16.4 

19.9

 (3.5)

21.1

 707.3 

514.2

 193.1 

459.7

Capitalised costs of intangible non-current assets

 (18.6)

(989.3)

 970.7 

-

Impairment of property, plant and equipment and 

intangible assets, net

(0.0)

(0.0)

(0.0)

(3.9)

Loss on disposal of property, plant and equipment and 

intangible assets

(0.1)

(0.4)

0.3

Evaluation of fixed assets recognized in profit, net

 (2.1)

-

 (2.1)

2.7

-

(Reversal of impairment)/Impairment of trade and other 

receivables, net

75.8

112.3

(36.5)

70.6

(Reversal of impairment)/Impairment of assets held for sale

-

-

-

Change in provisions, net

 (12.5)

18.8

 (31.3)

0.6

15.7

Net finance cost

 293.8 

165.0

 128.8 

26.9

Changes in employee benefits obligations

 - 

(4.4)

 4.4 

5.1

Corporate income tax expense

 96.9 

105.1

 - 

(79.5)

Changes in:

Trade receivables

Other receivables

Prepayments

Inventories

Trade payables

Other payables

Employee benefits 

 1,777.4 

500.1

1,277.3 

(33.9)

 (309.2)

(1,286.7)

 977.5 

(391.4)

 5.6 

(138.3)

 144.0 

(22.9)

 0.9 

(8.8)

 9.7 

(2.2)

 (1.7)

(41.0)

 39.3 

(2.9)

 244.4 

494.6

(250.2)

274.8

 110.4 

722.4

(612.0)

28.5 

(6.5)

35.0 

32.5

3.2

2023 ANNUAL REPORT2023 ANNUAL REPORT2023 DIRECTORS’ REPORTELECTRICA FINANCIAL REPORTING FOR 20232023 DIRECTORS’ REPORTELECTRICA FINANCIAL REPORTING FOR 2023204

205

Deferred revenue

Subsidies receivables

2023

2022

Variation
2023/2022

2021

(16.9)

15.1

(32.0)

(1,333.7) 

(1,280.8)

(52.9) 

4.0

-

Net (decrease)/increase in cash and cash equivalents

42.3 

113.1

(70.8)

(811.5)

Cash and cash equivalents at 1 January

334.9 

(405.6)

740.5 

406.0

2023

2022

Variation
2023/2022

2021

Cash generated from operating activities

505.7 

(1,030.0)

1,535.7 

(138.9)

Overdrafts used for cash management purposes

-

627.4

(627.4)

-

Interest paid

Income tax paid 

 (278.5)

(149.4)

 (129.1)

(24.1)

Source: Consolidated financial statements of Electrica Group as of 31 December 2023

 (59.0)

(1.2)

 (57.8)

(31.4)

The materiality threshold established internally at the Group level for analysis of main indicators 

(presented below) is worth RON 86.6 mn., representing 5% of EBITDA.

Cash and cash equivalents at 31 December 

377.2 

334.9

42.3 

(405.6)

Net cash from operating activities

168.3 

(1,180.6)

1,348.9 

(194.4)

Cash flows from investing activities

Payments for purchases of property, plant and equipment

(10.4)

(8.3)

(2.1)

(10.5)

Payments for network construction related to concession 

agreements

(845.3)

(537.8)

(307.6)

(483.8)

Payments for purchase of other intangible assets

 (21.3)

(7.8)

 (13.5)

(6.3)

Proceeds from sale of property, plant and equipment

Interest received

Restricted cash

Net cash effect from gain of control over the acquired 

subsidiary

Payment for acquisition of associated

Payment for acquisition of subsidiaries

0.2

 3.3 

 - 

 (1.9)

 (4.1)

 (6.3)

0.6

2.8

-

-

(0.0)

(4.5)

(0.4)

 0.5 

1.5

1.8

 - 

320.0

 (4.1)

(25.8)

 (1.8)

-

Net cash used in investing activities

(885.9) 

(554.9)

(331.0) 

(203.2)

Cash flows from financing activities

Proceeds from overdrafts

 271.9 

1,900.4

 (1,628.5)

-

Repayment of long term bank loans

 (187.7)

(92.9)

 (94.8)

(385.9)

Payment of lease liabilities

 (26.8)

(24.2)

 (2.6)

(15.2)

Dividends paid

 (40.1)

(152.3)

 112.2 

(247.6)

Net cash from/(used in) financing activities

760.0 

1,848.6

(1,088.6)

(414.0)

 (1.9)

-

of the profit tax expense of RON 96.9 mn. and the net 

financial loss of RON 293.8 mn..

In 2023, the net increase in cash and cash 

result of a larger investment plan made in 2023 vs. 

equivalents amounted to RON 42.3 mn.

2022 in the distribution segment.

The net cash generated by the operating activity 

The financing activity generated a decrease in cash 

was RON 168.3 mn.. The net profit for the period 

and cash equivalents of RON 1,088.6 mn. (positive 

was RON 620.4 mn.; the main adjustments for 

impact due to lower borrowed cash than in 2022), 

non-monetary elements of the net profit were: 

the main factors being withdrawals from long-term 

the addition of depreciation of tangible and 

bank loans of RON 742.7 mn., withdrawals from 

intangible assets in the amount of RON 723.7 mn., 

overdrafts in the amount of RON 271.9 mn., but also 

the elimination of the impact of value adjustments 

loan repayments of RON 187.7 mn.. Dividends were 

for trade receivables of RON 75.8 mn., the addition 

paid to shareholders, amounting to RON 40.1 mn..

The changes in working capital had a positive effect 

of RON 505.7 mn.. This impact was generated by the 

negative impact of changes in subsidies receivable 

in the amount of RON 1,333.7 mn., trade and other 

receivables in the amount of RON 303.5 mn. and 

the positive impact of changes in trade and other 

payables in the amount of RON 383.3 mn., thus 

decreasing the cash flow from operations (FFO) in 

interest paid totalled RON 337.5 mn..

In 2022, the net increase in cash and cash 

equivalents amounted to RON 113.1 mn.

The net cash generated by the operating activity 

was loss of RON (1,180.6) mn. The net profit of the 

period was RON 558.8 mn.; the main net profit’s 

adjustments for non-monetary elements were: 

eliminating the NL additional costs amounting 

to RON 989.3 mn., adding the depreciation and 

amortization of RON 534.1 mn., eliminating the 

impact of the impairment of trade receivables of 

RON 112.3 mn., adding the income tax of RON 105.1 

mn. and the net finance cost of RON 165.0 mn.

For the investment activity, cash was used in the 

amount of RON 885.9 mn., the highest values being 

related to payments for the construction of networks 

in connection with the concession agreements 

of RON 845.3 mn., these registering an increase 

in payments for investments of RON 307.5 mn. 

compared to the comparative period, and as a 

Changes in working capital had a negative effect, of 

RON 1,030.0 mn., the most significant impact being 

generated by the negative change in trade and 

other receivables, in the amount of RON 1,425.1 mn., 

in trade and other payables of RON 1,210.6 mn. (out 

of which, the change in employee benefits of RON 

Proceeds from long term bank borrowings

 742.7 

217.6

 525.1 

234.7

the amount of RON 1,777.4 mn.. Income tax paid and 

2023 ANNUAL REPORT2023 ANNUAL REPORT2023 DIRECTORS’ REPORTELECTRICA FINANCIAL REPORTING FOR 20232023 DIRECTORS’ REPORTELECTRICA FINANCIAL REPORTING FOR 20236.5 mn., having a negative impact) and in subsidies 

receivables in amount of RON 1,280.8 mn.. Income 

tax paid and interest paid amounted to RON 150.6 

mn.

For the investment activity, the cash used was of 

RON 554.9 mn., the most significant values being 

related to the payments for the construction 

and rehabilitation of RON 537.8 mn., these being 

increased y-o-y with RON 54.0 mn..

The financing activity generated a decrease in 

cash and cash equivalents of RON 2,262.6 mn., the 

main factors being the proceeds from long term 

bank borrowings of RON 217.6 mn., proceeds from 

overdrafts of RON 1,900.4 mn., reimbursement of 

loans of RON 92.9 mn. and the dividends paid to the 

shareholders, of RON 152.3 mn..

206

207

6.4  Separate statement of the financial position

Financial information selected from company’s separate statement of financial position.

Table 42. Separate statement of the financial position (RON mn.)

31 December 
2023

31 December 
2022

Variation 
2023/2022

31 December 
2021

ASSETS

Non-current assets

Property, plant and equipment

Intangible assets

Goodwill

145.1

1.1

1.4

98.9

0.1

-

Investments in subsidiaries

2,309.9

2,298.1

Investments in associates

Other investments

16.6

7.0

18.8

7.0

Loans granted to subsidiaries – long term

1,279.3

1,276.3

Right of use assets

4.0

0.3

46.1

1.0

1.4

11.8

(2.2)

-

2.9

3.8

100.1

0.1

2,285.2

25.8

-

1,276.3

0.5

Total non-current assets

3,764.5

3,699.6

64.9

3,688.0

Current assets

Cash and cash equivalents

Trade receivables

Other receivables

Inventories

Prepayments

Assets held for sale

 19.2

1.7

 597.8

-

1.0

0.3

105.6

0.8

501.5

-

1.0

0.3

Loans granted to subsidiaries – short 

term

89.7 

45.0

Total current assets

709.7

654.3

(86.5)

(0.9)

96.4

-

-

-

44.6

55.4

5.8

0.9

584.8

-

0.8

0.3

30.0

622.5

TOTAL ASSETS

4,474.2

4,353.8

120.3

4,310.5

2023 ANNUAL REPORT2023 ANNUAL REPORT2023 DIRECTORS’ REPORTELECTRICA FINANCIAL REPORTING FOR 20232023 DIRECTORS’ REPORTELECTRICA FINANCIAL REPORTING FOR 2023208

209

31 December 
2023

31 December 
2022

Variation 
2023/2022

31 December 
2021

quarter of the gross profit.

The materiality threshold established internally at individual level is worth RON 6.0 mn., representing a 

3,464.4

3,464.4

103.1

(75.4)

20.3

231.6

224.1

12.4

103.1

(75.4)

11.8

229.4

224.1

38.9

3.980.5

3,996.4

 - 

 3.3 

 1.3 

4.6

216.8

205.5

207.8

0.8

6.6

51.1

0.3

7.3

0.7

0.2

4.7

36.5

0.2

5.8

1.0

-

-

-

8.5

2.2

-

(26.5)

(15.9) 

 (100) 

3.2

 0.2 

216.8

(2.3)

0.6

1.9

14.6

0.1

1.5

(0.3)

 Crucea Power Park S.R.L.

31.07.2021

30%

(0.2)

Non-current assets 

The cost of investment, at the acquisition date, total 

value of RON 12.5 mn. are detailed below:

As of 31 December 2023, compared to 31 December 

2022, fixed assets increased by RON 64.9 mn., from 

RON 3,699.6 mn. to RON 3,764.5 mn..

Acquisition date 

At the end of 2023, property, plant and equipment 

increased by RON 46.1 mn. due to the merger by 

Percentage at the acquisition date 

Net value at the acquisition date 

absorption between Electrica SA as the absorbing 

Percentage of the Group from net (30%)  

(0.07)

company and Electrica Productie Energie SA, 

Electrica Energie Verde 1 SRL and Green Energy 

Consultancy & Investments SRL as absorbed 

companies. As a result of the merger and the 

revaluation at fair value of tangible fixed assets 

consisting of land and buildings, the Company’s 

tangible fixed assets increased by RON 44.2 mn., 

plus the increase in investments in subsidiaries 

Goodwill 

Investment cost at acquisition date 

12.6

  12.5

At 31 December 2023, the Company is 40% owned 

and is accounted for using the asset method in the 

separate financial statements in accordance with 

the Company’s policies. 

recorded in 2023 amounting to RON 11.8 mn..

Other receivables

Investments in associates

On 28 July 2021 and 7 December 2021, Electrica 

SA signed four contracts for the sale - purchase 

of shares in four project companies, whose main 

activity is the production of electricity from 

renewable sources. The sale-purchase contracts 

The cash-pooling receivables comprise Electrica 

SA’s receivables as at 31 December 2023 as cash-

pool leader in the two cash-pooling systems 

implemented at Group level. The increase in 2023 is 

due to the liquidity needs of the subsidiaries placed 

in cash pooling by the Company.

mention that in the first stage, the Group receives 

Cash, restricted cash and short-term investments

30% of the share capital of the three companies, 

and in subsequent stages, it will acquire the 

remaining 70% of the share capital, after certain 

conditions mentioned in the contracts are met. 

By 31 December 2023, three of the companies in 

the project have been acquired in a proportion of 

at least 60%, therefore they are accounted for as 

subsidiaries, the other one is presented below.

At 31 December 2023, cash and cash equivalents 

decreased by RON 86.5 mn. to RON 19.2 mn. from 

RON 105.6 mn. at 31 December 2022.. 

3,464.4

103.1

(75.4)

12.4

228.2

71.2

319.6

4,123.5

-

0.1

1.1

1.2

120.5

0.4

4.0

44.0

0.4

12.2

4.2

100

0.0

1.1

101.2

(96.6) 

EQUITY AND LIABILITIES

Share capital 

Share premium

Treasury shares reserve

Revaluation reserves

Legal reserves

Other reserves

Retained earnings

Total equity

Liabilities

Non-current liabilities

Bank borrowings – long term

Lease liability – long term

Employee benefits

Total non-current liabilities

Current liabilities

Current portion of long-term bank 

borrowings

Credit lines

Lease liability – short term

Trade payables

Other payables

Deferred revenue

Employee benefits

Provisions

Total current liabilities

489.1

256.3

232.8

185.8

Total liabilities

493.7

357.5

136.2

186.9

Total equity and liabilities

4,474.2

4,353.8

120.3

4,310.5

Source: Separate financial statements of ELSA as of 31 December 2023

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210

211

Table 43. Cash, restricted cash and short-term investments 2023-2021 (RON mn.)

Dividends

(RON mn.)

31 
December 
2023

31 
December 
2022

31 
December 
2021

The company may distribute dividends from the statutory profit, according to the audited individual 

financial statements prepared in accordance with Romanian accounting regulations.

The dividends distributed by the Company in the years 2023, 2022 and 2021 (from previous years’ profits) 

Bank current accounts

Cash and cash equivalents transferred on merger

Call deposits

3.2

15.4

0.6

3.6

-

102.0

Total cash and cash equivalents in the separate statement 

of financial position and in the separate statement of cash 

19.2

105.6

3.0

-

2.7

5.7

flow 

Source: Separate financial statements of ELSA as of 31 December 2023

As of 31 December 2022, the amount of demand deposits consists mainly of Vista Bank’s overnight deposit 

in the amount of RON 99.6 mn., related to the long-term credit drawn for the issuance of bank guarantee 

letters.

Table 44. Loans granted to subsidiaries 2023-2021 (RON mn.)

(RON mn.)

31 December 
2023

31 December 
2022

31 December 
2021

DEER (long term loan granted) *

EFSA

EPE

NTE

GEC&I

SWE

FOTON

1,276.3

80.0

-

7.2

-

2.5

2.9

1,276.3

-

41.6

2.4

0.4

0.6

-

1,276.3

30.0

-

-

-

-

-

Total loans granted to subsidiaries

1,369.0

1,321.4

1,306.3

Source: Separate financial statements of ELSA as of 31 December 2023

(*)Starting with 31 December 2020 the three distribution companies merged into one single distribution company named Distributie Energie 
Electrica Romania S.A. („DEER”)

Share Capital

were as follows: 

Table 45. Dividends 2023-2021 (RON mn.)

 (RON mn.)

Dividends distributed

2023

40.0

2022

152.8

2021

247.8

Source: Separate financial statements of ELSA as of 31 December 2023

On 27 April 2023, the General Meeting of Shareholders of ELSA approved the distribution of dividends in the 

amount of RON 40.0 mn, legal reserves in amount of RON 1.3 mn. and other reserves in amount of RON 17.0 

mn. The value of dividends per share distributed to the shareholders of the Company were: RON 0.1178 per 

share (2022: RON 0.4500 per share). 

Out of the dividends distributed by the Company of RON 40.0 mn (2022: RON 152.8 mn.) the dividends 

paid were RON 39.9 mn. (2022: RON 152.4 mn.), the difference representing dividends not claimed by 

shareholders.

Provisions

Table 46. 2023 Provisions (RON mn.)

 (RON mn.)

Balance at 1 January 2023

Provisions made

Provisions utilized

Provisions reversed

Balance at 31 December 2023

Source: Separate financial statements of ELSA as of 31 December 2023

2021

1.0

0.0

(0.2)

(0.1)

0.7

The issued share capital in nominal terms consists of 346,443,597 ordinary shares as at 31 December 2023 

(346,443,597 ordinary shares as of 31 December 2022) with a nominal value of RON 10 per share. Ordinary 

The provisions in amount of RON 0.7 mn. as at 31 December 2023 (31 December 2022: RON 1.0 mn.) refer 

shares offer the right to dividends and the right to one vote per share in the company’s shareholder 

mainly to the benefits granted upon the termination of executive managers’ contracts.

meetings, except for the 6,890,593 shares redeemed by the Company in July 2014, for the purpose of prices 

stabilization. All shares confer equal rights in the company’s net assets, except for own shares.

ELSA recognizes changes in share capital only after their approval in the General Shareholders Meeting and 

their registration in the Trade Register.

2023 ANNUAL REPORT2023 ANNUAL REPORT2023 DIRECTORS’ REPORTELECTRICA FINANCIAL REPORTING FOR 20232023 DIRECTORS’ REPORTELECTRICA FINANCIAL REPORTING FOR 2023212

213

6.5  Separate statement of profit or loss

Financial information selected from the company’s separate statement of profit or loss.

Profit/(loss) before financing result

Table 47. Separate statement of profit or loss (RON mn.)

As at 31 December 2023 the operating result is a loss of RON 49.8 mn., mainly due to a decrease in other 

operating income and an increase in other operating expenses.

Revenues

Other income

Employee benefits

2023

2022

Variation 
2023/2022

2021

0.2

1.2

-

5.2

0.2

(4.0)

-

0.8

Net finance income 

During the financial year ended 31 December 2023, the net financial result increased from RON 65.9 mn. in 

2022 to RON 67.9 mn.. 

(30.3)

(30.2)

0.1

(39.2)

Financial income in 2023 amounts to RON 97.6 mn. and represents income from interest received on loans 

Depreciation and amortization

(1.4)

(1.6)

Reversal of impairment of trade and other receivables, net

Impairment of property, plant and equipment, net

Change in provisions for legal cases and non-compete 

clauses, net

0.6

0.9

0.3

0.1

0.0

3.2

0.2

0.5

0.9

(2.9)

(2.3)

0.1

3.8

1.6

granted to subsidiaries.

The net financial result is negatively impacted by the financial expenses recorded in 2023 in the amount of 

RON 29.7 mn. representing interest expenses on loans.

Profit before tax

Other operating expenses

(21.3)

(18.5)

(2.7)

(20.4)

In 2023, profit before tax decreased by RON 6.0 mn. to RON 18.1 mn. from RON 24.0 mn. in 2022.

Profit/(loss) before financing result

(49.8)

(41.8)

(8.0)

(55.6)

Income tax benefit/(expense)

Finance income

Finance costs

97.6

78.3

19.3

377.7

 (29.7)

(12.4)

(17.3)

(0.3)

Net profit for the year 

In 2023, the company recorded an income tax benefit of RON 5.9 mn., mainly due to the merger.

Share of results of associates

(0.0)

-

(0.0)

-

As a result of the above factors, the net profit achieved in 2023 is RON 23.9 mn., slightly lower than in 2022 

Net finance income

67.9 

65.9

2.0

377.4

(RON 24.3 mn.).

Profit before tax

Income tax benefit/(expense)

18.1

5.9

24.0

0.3

(6.0)

321.8

5.6

0.0

Profit for the year

23.9

24.3

(0.4)

321.8

Earnings per share

0.07

0.07

0.0

0.95

Source: Separate financial statements of ELSA as of 31 December 2023

The materiality threshold established internally at individual level is worth RON 6.0 mn., representing a 

quarter of the gross profit.

2023 ANNUAL REPORT2023 ANNUAL REPORT2023 DIRECTORS’ REPORTELECTRICA FINANCIAL REPORTING FOR 20232023 DIRECTORS’ REPORTELECTRICA FINANCIAL REPORTING FOR 2023214

215

6.6  Separate cash flow statement

Financial information selected from the cash flow statement of the company.

Table 48. Separate statement of cash flow (RON mn.)

Indicator

2023

2022

Variation 

2023/2022

2021

Cash flows from investing activities

Payments for purchases of property, plant and equipment

(1.8)

(1.9)

0.1

(4.8)

Indicator

2023

2022

Variation 

2023/2022

2021

Payments for purchases of intangible assets

(1.0)

(0.2)

Proceeds from the sale of property, plant and equipment

-

1.2

(0.8)

(1.2)

-

0.0

Cash flows from operating activities 

Cash pooling net position

(75.4)

81.3

(156.7)

(393.6)

Profit for the year

Adjustments for:

Depreciation 

Amortization 

Impairment of property, plant and equipment, net

Loss/(Gain) from the disposal of tangible assets

Reversal of impairement of assets held for sale

23.9

24.3

(0.4)

321.8

Loans granted to subsidiaries

(92.3)

(151.0)

58.7

(336.3)

0.9

0.5

0.0

-

-

1.0

0.6

(0.1)

(0.1)

1.1

1.2

(0.0)

0.0

(3.8)

Proceeds from loans given to subsidiaries

-

135.9

(135.9)

60.0

Payments for shares in associates

(0.0)

(0.0)

(0.0)

(25.8)

Payments for acquisition of shares in entities

-

(7.0)

7.0

-

Payments for acquisition of subsidiaries

(12.4)

(4.4)

(7.9)

(0.1)

-

-

-

-

3.1

0.5

0.1

Restricted cash

Interest earned

Dividends received

-

-

-

320.0

96.3

72.1

24.2

42.2

-

-

-

329.5

Reversal of impairment of trade and other receivables, net

(0.6)

(0.1)

(0.5)

Net finance income

(67.9)

(65.9)

(2.0)

(377.4)

Net cash from investing activities

(86.6)

126.0

(212.6)

(8.9)

Changes in employee benefits obligations

Changes in provisions, net

0.3

(5.0)

(0.3)

(3.2)

5.2

2.9

5.1

(1.6)

Cash flows from financing activities

Income tax expense/(benefit)

(5.9)

(0.3)

(5.6)

(0.0)

Proceeds from overdrafts

(2.3)

87.3

(89.6)

-

Changes in provisions, net

(49.9)

(48.5)

(1.4)

(50.2)

Changes in:

Trade receivables

Other receivables

Trade payables

Other payables

Employee benefits

(49.9)

(48,5)

(1,4)

(50,2)

(0.0)

0.2

(0.2)

(0.4)

(12.6)

(0.5)

(12.1)

3.0

1.6

0.2

1.3

0.4

0.8

0.1

1.1

(2.9)

(0.5)

0.3

1.2

(0.3)

Dividends paid

Loans granted

(40.1)

(153.2)

113.0

(247.6)

116.8

100.0

16.8

-

Payment of lease liabilities

(0.5)

(0.6)

0.1

(1.0)

Net cash used in financing activities

73.8

33.6

40.2

(248.6)

Net increase in cash and cash equivalents

(101.9)

99.9

(201.7)

(308.3)

Cash and cash equivalents at 1 January

105.6 

(114.8)

220.4 

193.5

Cash and cash equivalents transferred on merger

15.4

-

15.4

-

-

Cash generated/(used in) from operating activities

(59.4) 

(47.5)

(11.9)

(50.5)

and cash equivalents

Reclassification of overdrafts previously presented as cash 

-

120.5

(120.5)

Interest paid

(29.6) 

(12.2)

(17.4) 

(0.2)

Cash and cash equivalents at 31 December

19.2

105.6

(86.5)

(114.8)

Net cash from/(used in) operating activities

(89.1) 

(59.7)

(29.3) 

(50.7)

Source: Separate financial statements of ELSA as of 31 December 2023

The materiality threshold established internally at individual level is worth RON 6.0 mn., representing a 

quarter of the gross profit.

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In 2023, the net decrease in cash and cash 

from loans received in the amount of RON 116.8 

amount of RON 66.5 mn. and the impact of the cash 

subsidiaries, which closed the financial year 2021 

equivalents amounted to RON 86.5 mn. 

mn. representing the credit facility for working 

pooling activity, resulting in a reduction of RON 132.2 

with a loss.

capital and issuance of bank letters with Vista Bank 

mn. 

The net cash generated by operating activity 

contract this year, impact reduced by dividends 

The financing activity generated an increase in 

was RON (59.4) mn.. The net profit for the period 

paid to shareholders in the amount of RON 40.1 mn.. 

In 2022, the value of loans granted to subsidiaries 

cash and cash equivalents of RON 33.6 mn., mainly 

was RON 23.9 mn.; the main adjustments for non-

RON (gross dividend value per share decreased 

was RON 151.0 mn., with RON 185.3 mn. less than the 

from loans received in the amount of RON 100.0 mn. 

monetary elements of the net profit were: addition 

from 0.1178 RON/share for dividends related to 2022 

previous period. At the same time, the proceeds 

representing the credit facility for working capital 

of depreciation of tangible and intangible fixed 

to 0.45 RON/share for dividends related to 2021).

from loans granted to subsidiaries increased by RON 

and issuing bank letters with Vista Bank contract 

assets in the amount of RON 1.4 mn., decrease in the 

75.9 mn. compared to the previous period, mainly 

this year and the amounts collected in overdrafts 

impact of employee benefits in the amount of RON 

In 2022, the net increase in cash and cash 

due to the full reimbursement of the intra-group 

of RON 87.3 mn., reduced impact of dividends paid 

5.2 mn., decrease in the change in provisions of RON 

equivalents amounted to RON 99.9 mn. 

contract contracted by EFSA during 2021. 

to shareholders in the amount of RON 153.2 mn. (the 

2.9 mn., increase in the impact of income tax by RON 

value of the gross dividend for one share decreased 

5.6 mn., the impact of value adjustments for trade 

The net cash generated by the operating activity 

The value of the interest collected was RON 72.1 mn., 

from RON 0.73/share for dividends for 2020 to RON 

receivables was insignificant. It was deducted from 

was RON (47.5) mn. The net profit of the period 

as a result of the new loans granted to subsidiaries 

0.45/share for dividends for 2021).

the net financial result of RON 67.9 mn..

was RON 24.3 mn.; the main adjustments for non-

in 2022, the higher value of the uses by subsidiaries 

monetary elements of net profit were: the addition of 

in the Cash pooling structure, as well as the increase 

Changes in working capital had an unfavourable 

depreciation of tangible and intangible assets in the 

of the ROBOR rate.

impact of RON 9.5 mn., the impact being generated 

amount of RON 1.6 mn., the decrease of the impact 

by the positive impact of the change in trade and 

generated by the employee benefits amounting to 

Compared to 2021, this year no restricted cash was 

other payables in the amount of RON 3.1 mn. (of 

RON 5.0 mn., decrease of the change in provisions 

recorded and no dividends were collected from 

which, positive impact of RON 1.3 mn. from the 

of RON 3.2 mn., the impact of value adjustments 

change in employee benefits), reduced by the 

for commercial receivables and the impact of the 

negative impact of trade and other receivables in 

income tax were insignificant. It was deducted from 

the amount of RON 12.6 mn..

the net financial result of RON 65.9 mn.

In 2023, interest paid was RON 17.4 mn. higher than 

Changes in working capital had a favorable effect 

in 2022, mainly representing the interest related 

of RON 1.0 mn., the impact being generated by the 

to the overdraft facility under the cash pooling 

positive impact of the trade payables and other 

system. 

payables in the amount of RON 1.3 mn. (of which, 

positive impact of RON 0.1 mn. from the change in 

For the investment activity, cash was used in the 

employee benefits) diminished by the negative 

amount of RON 86.6 mn., the highest amounts being 

impact of trade receivables and other receivables, 

related to interest received in the amount of RON 

in the amount of RON 0.3 mn. 

96.3 mn., loans granted to affiliated entities in the 

amount of RON 92.3 mn., and the impact of the net 

In 2022, the interest paid was RON 12.1 mn. higher 

cash pooling activity of RON 75.4 mn..

than in 2021, representing mainly the interest related 

In 2023 the amount of loans granted to subsidiaries 

system. Increase from RON 0.2 mn. at RON 12.2 mn. 

was RON 92.3 mn., RON 58.7 mn. less than in the 

in 2022 was due to the higher value of the uses 

previous period.

compared to the previous period, but also to the 

to the overdraft facility under the cash pooling 

increase of the ROBOR rate. 

The amount of interest received was RON 96.3 mn., 

as a result of new loans granted to subsidiaries 

For the investment activity was used cash in the 

in 2023, the higher amount of utilization by 

amount of RON 126.0 mn., the highest values being 

subsidiaries of the cash pooling structure, as well 

related to the interest collected in the amount of 

as the increase in the ROBOR rate.

RON 72.1 mn., loans granted to affiliated entities 

The financing activity generated an increase in 

to loans granted to subsidiaries in the amount of 

cash and cash equivalents of RON 73.8 mn., mainly 

RON 136.0 mn. of net receipts from deposits in the 

in the amount of RON 151.0 mn., receipts related 

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6.7  Restatements – S-IFRS-EU

During 2023, the Group reassessed its previous position with the consolidated financial statements, related 

to the recognition of financial asset from the amendment of the concession agreements. As of 31 December 

2022, the Group recognised a financial asset in the amount of RON 951.6 mn. as a result of such amendment 

Table 51. Statement of cash flow (RON mn.) – S-IFRS-EU

Indicator

31 December 2022
as reported 
previously

31 December 
2022
Reclassifications

31 December 
2022
as restated

in the balance sheet, representing the difference between the net cost with the purchase of the energy for 

Cash flows from operating activities

Profit

 558.8 

(799.3) 

(240.5) 

Other income from initial recognition of 

financial assets rising from concession 

(951.6) 

 951.6 

 - 

agreements amendments

Income tax (benefit)/expense

 105.1 

(152.2) 

(47.2) 

Changes in:

Other receivables

Other payables

(138.3) 

 722.4 

 152.2 

(152.2) 

13.9 

 570.2 

Net cash flow used in operating activities

(1,030.0) 

 - 

(1,030.0) 

Source: Consolidated financial statements of Electrica Group as of 31 December 2023

NL and the NL cost included in the regulatory tariff by ANRE, for the period 1 January – 31 December 2022. An 

equivalent amount was also recognised in the profit or loss as “Other income”.

The following table summarise the impact on the Group’s consolidated financial statements:

Table 49. Statement of financial position (RON mn.) – S-IFRS-EU

Indicator

31 December 2022
as reported 
previously

31 December 
2022
Reclassifications

31 December 
2022
as restated

Financial assets related to concession 

arrangements – non current portion

Financial assets related to concession 

arrangements – current portion

Retained earnings

Deferred tax liabilities

Total assets

Total equity

Total liabilities

 761.2 

(761.2) 

 190.3 

(190.3) 

 - 

 - 

 1,353.9 

 212.6 

 11,623.3 

 5,367.2 

 6,256.1 

(799.3) 

(152.2) 

 554.6 

 60.3 

(951.5) 

 10,671.8 

(799.3) 

 4,567.9 

(152.2) 

 6,103.8 

Source: Consolidated financial statements of Electrica Group as of 31 December 2023

Table 50. Statement of profit or loss (RON mn.) – S-IFRS-EUU

Indicator

31 December 2022
as reported 
previously

31 December  
2022
Reclassifications

31 December 
2022
as restated

Other income

 3,792.5 

(951.6) 

 2,841.0 

Income tax benefit/(expense)

Profit for the year

(105.1) 

558.8

 152.2 

 47.2 

(799.3)

(240.5)

Earnings/(Loss) per share

Basic and diluted earnings/(loss) per share 

(RON)

1.65

2.35

(0.71)

Source: Consolidated financial statements of Electrica Group as of 31 December 2023

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6.8  Risk management
For the Electrica Group, year 2023, from a risk management perspective was one of consolidation of 

previous year’s initiatives and new projects, initiated on the basis of internal needs or at the request of 

third parties.

both having implications for the manifestation and 

•   Technical risks caused by inadequate network 

materialization of risks. 

sizing in relation to energy demand, meaning 

meaning the impossibility of ensuring network 

Risk factors can be from the following categories:

maintenance and energy supply to customers, 

which can negatively and significantly affect the 

•   Macroeconomic and energy industry-

Group’s business.  

Thus, as a new project developed and completed 

Compliance with this new reporting requirements 

specific risks: Global and regional economic 

in 2023, we mention obtaining certification for the 

will underpin the reform of risk assessment. 

implementation of SR EN ISO 50001:2019 “– “Energy 

management systems. Requirements and user 

The challenges of 2023 were multiple from 

guide” at the ELSA level. An important component 

the perspective of risk management, in the 

conditions, respectively the economic context 

•  Strategic risks and ensuring the financing of 

at national and regional international level that 

projects within the group can be influenced 

may negatively influence the Group’s activity. 

both by internal factors, by keeping a high 

These factors can be: inflation, recession, 

rating that maintains an attractive share price 

of this certification was the alignment of the risk 

sense that the materialization of risks such as 

changes in fiscal and monetary policy, tighter 

and implicitly the attention of investors, but 

management system with the provisions of the 

liquidity, regulation, operational (IT systems, or 

lending, higher interest rates, new or rising 

also external factors, respectively the difficulty 

certification standard, meaning to introduce new 

electricity thefts) they had multiple causes and 

tariffs, currency fluctuations, raw material price 

of accessing markets in order to raise capital 

risks related to the new processes carried out by 

unpredictable effects. 

the company in the ELSA Risk Register, in order to 

implement the standard.

From the perspective of the applicable legal 

provisions in force in conjunction with the approach 

At the same time, during the annual surveillance 

imposed by the internal requirements regarding 

audits regarding the quality management of the 

credit and counterparty risk management, the 

integrated management system (SMI) at ELSA 

Business Partner knowledge Policy has been 

level, including SR EN ISO 27001 regarding the 

changed and implemented, thus ensuring the 

information security management system, from 

necessary conditions to know the business 

the perspective of risk management activities, the 

partners, be they customers or suppliers, in order to 

company continued to meet the requirements of 

mitigate possible risks of reputation or credit and 

the provisions certification standards. 

counterparty. 

The acceptance of business partners is made 

Regarding of strengthening the risk management 

only by applying the measures of knowledge 

system at the Group level, the permanent 

of the client according to the legislation in the 

collaboration with the entities in the group, in 

field and the internal procedure on combating 

terms of risk management, has continued by 

and preventing money laundering and terrorist 

the involvement in the resolution of some issues 

financing. Also, specialized platforms for verifying 

regarding the management of systemic risks at 

business partners are used in the realization of the 

Group level during the meetings of the Committee 

client knowledge activity.

for the Supervision of Risks (CpSR). Also, the 

monitoring of risks within the Group has continued 

RISK FACTORS

through periodic information regarding the risks’ 

status and evolution within the Group entities.

The Group’s activity, performance, reputation, 

financial situation and market value of its shares 

In 2023, the internal project (ESG Project) has 

can be affected by a number of factors of both 

continued to be implemented within the Group 

internal and external nature. These factors can 

regarding the requirements of the new European 

lead to the materialization of risks that negatively 

regulations in terms of sustainability – ESG 

influence the Group’s activity and performance. 

(Environmental, Social and Governance). Risk 

Such factors may particularly influence the risks 

analysis from the perspective of ESG scenarios as 

described below that the Group has identified and 

well as the monitoring of the exposures generated 

for which it seeks to manage them. 

by the group through the current activity become 

extremely important from the perspective of a way 

Risk factors should be viewed from both inside 

of making business sustainable and sustainable. 

and outside, the latter being harder to control but 

(electricity, natural gas), etc. 

(availability of capital for financing).

•  Risks arising from political events, war and/

or other international disputes, international 

sanctions, natural disasters, industrial 

accidents, etc. all of which may cause 

interruptions in the Group’s activities. Such 

events, as outlined above, may damage or 

disrupt the international economic context 

and the global/regional economy and may 

negatively influence the activity of both the 

Group and the other counterparties (contractual 

partners). At the same time, the interruption 

of the activity due to the above mentioned 

causes can generate significant expenses and 

substantial recovery time, which negatively 

influence the activity and financial results.  

•  Regulatory risks, respectively legislative 

changes with short time to adapt to new 

requirements but with significant implications 

especially the market and counterparty/

credit risk area. Regulatory risks may arise as 

a consequence of international events (e.g. 

Russia-Ukraine War) that triggers a series of 

unpredictable market developments, but also 

restrictions and sanctions at international level 

that are also reflected at regional and local 

level. Also, here can be included the risks of 

non-compliance with international and local 

sustainability regulations (ESG) and reporting 

in this regime, with financial impact, meaning 

possible difficulties in attracting investments but, 

also, combined with reputational risk. 

Also as a factor of strategic risk is perceived the 

volatility of the stock price as a consequence of the 

company not meeting the expectations regarding 

profitability, its growth and dividend granting. 

Thus, the share price can drop significantly, with 

an impact on investor confidence and reputational 

implications.

MANAGEMENT OF NON-FINANCIAL RISKS

Operational risk management

Operational risk is the largest category of non-

financial risks to occur across all entities in the 

group. The most important and common sub-

categories of operational risk are those in the it area 

(including cyber and security), risks related to the 

execution of processes and/or procedures and/or 

work tasks, but also risks caused in the relationship 

with customers and/or business processes and/

or practices. For these identified risks, measures to 

mitigate these risks are established at the level of 

each entity of the Group and periodic assessments 

to monitor and control them permanently. 

Compliance risk management 

The compliance risk, which includes the legal risk, 

respectively of the legislative changes, is manifested 

at the level of each entity in the Electrica Group. 

In 2023, due to the new international regulations 

regarding sustainability, which will also be followed 

by local regulations, they will bring the legislative 

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risk into view in the next period, due to the 

Technical risk management 

possible exposures of non-compliance with these 

requirements. 

The technical risk is manifested at the level of 

Strategic risk management 

the appropriate grid size in relation to the energy 

certain entities of the Group and refers to ensuring 

Market risk

Risk description

Impact mitigation measures

Strategic risk has implications for the entire 

implicitly ensuring continuity in the electricity supply. 

and natural gas prices, benchmark interest rates, 

the measures taken to mitigate the risks aim 

group due to changes at the organizational and 

At the group level there is a permanent concern 

governance level that took place in 2023 within 

regarding the exposure to this technical risk and 

such as equity prices, interest rates or exchange 

at improving the forecast of own technological 

rates. All of these can impact the Electrica 

consumption (NL) and the conclusion of bilateral 

some entities of the Group, but also regarding the 

the implementation of measures to mitigate it, the 

Group’s revenues or the value of its holdings. 

contracts.  

demand, ensuring its proper functioning and 

•   Market risk arises as a result of changes in energy 

•   At the level of the distribution activity (DEER), 

market context and adaptation to its requirements. 

direct implications being customer satisfaction and 

The Group’s entities aim to adopt strategies that 

also the reputation at the group level. 

ensure adequate market positioning and flexibility 

that ensure timely recalibration in order to achieve 

Risks and uncertainties present as of 31 December 

the proposed objectives. 

2023 and issues concerning the main risks and 

uncertainties that could affect the Group’s business 

and its liquidity are presented in the table below.

Table 52. Risks and uncertainties as of 31 December 2023

Risk description

Impact mitigation measures

Poly-crisis

•  The current global context, but also the European 

•  A large part of the mentioned factors have 

one, indicates that a series of crises caused by 

already manifested themselves, independently or 

a series of factors (pandemic, inflation, interest 

together, in recent years, even on the territory of 

rate, extreme weather phenomena, earthquakes, 

Romania. 

wars, etc.) can become interdependent and 

extremely viral through the impact which they 

•  The concern of the Electrica SA management is 

can show in the economic environment.  

to build the optimal resilience mechanisms for 

the specific activity in which the company and 

•   Until now, there is no system that allows the 

its holdings carry out their activity. Among the 

integrated management of all scenarios that can 

measures taken: the transition to an integrated 

be taken into consideration for analysis.

group (including the production of renewables 

in the portfolio) and the testing of unfavorable 

development scenarios through analyzes of 

specific risk scenarios.

•   At Group level, market risk can manifest itself 

•   Market risk management policies, procedures 

at the distribution level (DEER) through price 

and tools are implemented at the supply activity 

increases in the market, i.e. volatility in the price 

level to manage and control exposures in the 

of purchased energy (with financial impact), 

electricity and gas markets. These measures 

termination of contracts by suppliers and 

relate to: increasing the effectiveness of 

bottlenecks in supply chains. At the level of the 

consumption forecasting by profiling hourly 

supply activity (EFSA) it is manifested by the 

sales forecast with both consumption forecast 

risk of lack of energy sales offers on the forward 

and real consumption as accurately as possible, 

markets (volume risk) resulting in higher prices 

calculation formulas and algorithms, which 

on these markets as well as the appearance in 

state the effective way of adjustment of each 

the portfolio of excess exposures (excess long 

input data for determining the consumption 

positions / deficit short positions) at hourly, daily 

forecast, applying hedging strategy, identifying 

and weekly, band, peak and off-peak levels, in a 

market trend in Pricing, monitoring sources of 

fluctuating bullish / bearish trend.

information on the evolution of prices in the 

region for the products of interest.  

•   Electrica SA started the process and successfully 

completed, in Q3, the certification for the 

implementation of ISO 50001 Energy Management 

Systems for improving service delivery and 

resource efficiency.

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Risk description

Impact mitigation measures

Risk description

Impact mitigation measures

Credit and counterparty risk

Liquidity risk

•   The management monitors and examines the 

•   The Company’s ability to continue its activities 

•   For the supply activity (EFSA) cash-flow analysis, 

•   Credit risk represents the risk of financial losses 
when a counterparty/client does not meet its 
contractual obligations to pay invoices when they 
are due. 

•   In the supply business, counterparty risk arises 

when a counterparty fails to meet its obligations 
in accordance with the agreed terms. This risk 
leads to the materialization of other new risks, i.e. 
replacement risk or price risk.  

•   In the distribution activity (DEER), the 

counterparty risk manifests itself in the possible 
non-fulfilment by the contracting party of the 
contractual conditions of payment or delivery 
of services and/or delivery of goods, works 
(including maintenance).

current exposure, credit limits and counterparty 
ratings, established provisions. 

•   The measures taken by the subsidiaries to 
mitigate this risk are adapted to the risks 
identified regarding counterparties.  

•   Thus, for supply, the aim is to mitigate this risk by 
diversifying energy sources, reducing the level 
of contracted quantities per contract, limiting 
exposure by entering multiple contracts, reducing 
trading limits with counterparties with which EFSA 
has EFET contracts and which have a low rating 
from a risk management perspective, questioning 
partners on the credit limits granted.  

•   For distribution, the measures that DEER is 

pursuing relate to the inclusion in contracts 
(energy, construction) of clauses covering 
specific activities, insurance/reinsurance by type 
of contract, prevention of entering contracts 
with unsound suppliers, efficient and transparent 
internal communication on incidents and their 
reporting. 

•   The current market context implies a significant 
pressure on the ability of counterparties in the 
energy market to ensure delivery on time or to 
pay related compensations.

Liquidity risk

•  Liquidity risk represents the risk that Electrica will 

•   Electrica carefully monitors, through the treasury 

not be able to meet its financial obligations when 

structures, the impact and effects on the 

they are due.

companies’ activity and financial results and has 

adequate resources to continue its operational 

activity.  

•   Also, the Group depends on receipts from the 

Ministry of Energy and the National Agency for 

Payments and Social Inspection, as such any 

action depends on the above entities, being 

unable to take concrete actions and measures.

is dependent on the ability of its subsidiaries to 

projections and forecasts are performed 

continue their activities. In particular, regarding 

(implementation of SAP Cash Management and 

government subsidy collection, the supply 

Liquidity Planner modules). 

subsidiary has material uncollected amounts 

from the compensation and capping scheme in 

•   At the distribution level (DEER), frequent and 

force, for which there is no certainty as to when 

careful monitoring of debts, payment of 

they will be collected, which may also affect 

obligations within due dates, limitation of 

the activity of DEER (the Group’s distribution 

payments before due date and analyses on 

subsidiary) and ELSA.

attracting external financing resources and 

priority collection of overdue receivables. 

•   The subsidiaries’ ability to continue operations is 

dependent on the successful completion of new 

loan agreements and the receipt of subsidies for 

the supply subsidiary.

Conformity (Legal and regulatory) risk

•   The energy and natural gas markets are 

•   Electrica SA makes efforts to optimize operational 

regulated by local and European legislation. 

efficiency in accordance with current and future 

•   These regulations may be modified or interpreted 

regulations. 

differently by the local authorities and may affect 

•   The impact of these regulations is close to the 

the operational profit margins of Electrica SA 

maximum range used in the evaluation with 

holdings. 

immediate consequences in profitability at the 

•   This risk is also supported by the legislative 

group level. 

history of recent years, which contains a series 

•   At Group level, each subsidiary is therefore 

of laws that significantly changed energy and 

pursuing a series of measures to mitigate the 

natural gas prices, capping elements, etc. 

negative effects of these risks generated by 

legislative changes. Thus, the impact of the 

•   At Group level, compliance risk, which includes 

expected regulatory changes is assessed, and, 

the two components (legal and regulatory), 

if necessary, an agile adjustment of the strategy 

has been identified as the risk of unpredictable 

is made and optimal actions are identified to 

and immediately applicable primary and/or 

eliminate/minimise the negative impact.

secondary legislation. From this also derives the 

risk that changes in the regulatory environment 

will affect the strategy, operations and financial 

results of the subsidiaries and therefore ELSA, 

defining new directions and new compliance 

requirements that Group companies will have to 

comply with.

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Risk description

Impact mitigation measures

Table 53. Credit risk and expected credit losses for trade receivables as of 31 December 2023

Operational risk

 (RON mn.)

31 December 2023

•   Electrica may record direct or indirect losses 

•   The company has implemented an operational 

resulting from a wide range of factors associated 

monitoring system, documented by policies and 

with processes, service providers, technology 

procedures, which ensures the escalation and 

and infrastructure, internal governance and 

remediation of potential operational problems. 

from external factors, such as regulatory or legal 

requirements and generally accepted standards 

•   In order to implement the best practices in the 

regarding the best practices in the field. 

field, SE Electrica S.A. SE has certification and 

•   Violation or failure of security and information 

Technology, Security Techniques, Information 

technology systems may entail the risk of 

Security Management Systems. The extension of 

financial loss, interruption of operations or 

the certification to the level of the other entities in 

damage to the company’s reputation.

the Group is further analyzed.

implemented the standard ISO 27001: Information 

Expected 

credit 

loss rates 

(“ECL”)

2%

7%

14%

37%

Neither past due nor impaired

Past due 1-30 days

Past due 31-60 days

Past due 61-90 days

Gross 

value

Lifetime ECL

Net trade 

Credit 

receivables

impaired

2,229.3

(35.3)

2,194.0

255.1

(16.9)

238.2

47.6

25.9

(6.7)

(9.6)

41.0

16.3

51.0

No

No

No

No

Yes

Past due more than 90 days

92%

622.7

(571.7)

Source: Electrica

FINANCIAL RISK MANAGEMENT

The Group is exposed to the following risks resulting 

Trade receivables

from the use of financial instruments: credit risk, 

liquidity risk and market risk. 

The Group’s credit risk in respect of receivables was 

concentrated in the past around state-controlled 

These risks are further explained and detailed.

companies and in the recent years refers to clients 

Credit risk 

that are facing financial difficulties in their industries 

due to specific changes in circumstances in their 

industry sector. The Group has set up a policy 

Credit risk is the risk that the Group will register a 

regarding risk management and it has taken into 

financial loss if a customer or counterparty to a 

account the insurance of the trade receivables. Also 

financial instrument fails to meet its contractual 

the electricity supply contracts include termination 

obligations, and arises principally from the Group’s 

clauses in certain circumstances.

receivables from customers, cash and cash 

equivalents, restricted cash and bank deposits.

The Group establishes an allowance for impairment 

The Group’s exposure to credit risk is mainly 

losses, calculated based on the expected loss rates.

that represents the amount of expected credit 

influenced by the individual characteristics of each 

customer. In the past, the Group had a high credit 

Impairment 

Total

3,180.6

(640.2)

2,540.5

Source: Consolidated financial statements of Electrica Group as of 31 December 2023

Table 54. Credit risk and expected credit losses for trade receivables as of 31 December 2022

 (RON mn.)

31 December 2022

Expected 

credit 

loss rates 

(“ECL”)

Gross 

value

Lifetime ECL

Net trade 

Credit 

receivables

impaired

Neither past due nor impaired

Past due 1-30 days

3%

4%

1,951.7

 (60.3)

 1,891.3 

 491.0 

 (19.3)

 471.6 

Past due 31-60 days

16%

 66.4 

 (10.5)

 55.9 

Past due 61-90 days

35%

27.3 

 (9.7)

 17.6 

No

No

No

No

Past due more than 90 days

95%

582.4 

(552.9)

29.5 

Yes

risk mainly from State-owned companies. 

The following table provides information on the 

Total

3,118.6

(652.7)

2,466.0

Cash and bank deposits are placed in financial 

trade receivables as of 31 December 2023, 2022 and 

Source: Consolidated financial statements of Electrica Group as of 31 December 2022

exposure to credit risk and expected credit losses for 

institutions that are considered to have to have low 

2021.

risk of default.

The carrying amount of financial assets represents 

the maximum credit exposure.

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Table 55. Credit risk and expected credit losses for trade receivables as of 31 December 2021

Table 56. Contractual maturities of financial liabilities (RON mn.)

 (RON mn.)

31 December 2021

Contractual cash flows

Expected 

credit 

loss rates 

(“ECL”)

Gross 

value

Lifetime ECL

Net trade 

Credit 

receivables

impaired

Financial liabilities (RON mn.)

Carrying 

amount

     Total

less than 

1-2 

2-5 

1 year

years

years

More 

than 5 

years

31 December 2023

Neither past due nor impaired

Past due 1-30 days

2%

5%

1,080.1

 (16.6)

1,063.5 

 228.5 

 (10.6)

 217.9 

Past due 31-60 days

15%

 36.7 

 (5.3)

Past due 61-90 days

38%

15.4 

 (5.9)

 31.4 

 9.5 

No

No

No

No

Bank overdrafts

 2,851.2 

 2,851.2 

 2,851.2 

 - 

 - 

 - 

Lease liability

 43.2 

 43.2 

 14.1 

 9.9 

 4.0 

 15.2 

Long term bank borrowings

 1,317.6 

 1,317.6 

 523.3 

 258.9 

 475.9 

 59.5 

Trade payables

 1,671.5 

 1,671.5 

 1,671.5 

 - 

 - 

 - 

Past due more than 90 days

98%

964.7 

(942.4)

22.3 

Yes

Total

 5,883.5 

 5,883.5 

 5,060.0 

 268.8 

 479.9 

 74.8 

Total

2,325.4

(980.8)

1,344.6

Source: Consolidated financial statements of Electrica Group as of 31 December 2021

31 December 2022

Liquidity risk 

Liquidity risk is the risk that the Group will encounter difficulties in meeting the obligations associated with 

its financial liabilities that are settled by transferring cash or another financial asset. The Group’s liquidity 

management policy is to maintain, as far as possible, sufficient liquidity to meet its obligations when they are 

due, under both normal and stressed conditions, to avoid unacceptable losses.

The Group aims to maintain the level of its cash and cash equivalents at an amount in excess of expected 

cash outflows on financial liabilities. The Group also monitors the level of expected cash inflows on trade 

receivables together with expected cash outflows on trade and other payables. In addition, the Group 

maintains overdrafts facilities.

Exposure to liquidity risk 

Bank overdrafts

2,571.0

2,571.0

2,571.0

-

-

-

Lease liability

53.7

53.7

19.2

10.8

10.7

13.0

Long term bank borrowings

760.7

760.7

113.5

354.5

200.5

92.2

Trade payables

1,407.1

1,407.1

1,407.1

-

-

-

Total

4,792.5

4,792.5

4,110.9

365.3

211.2

105.2

Source: Consolidated financial statements of Electrica Group as of 31 December 2023

Market risk 

The following are the remaining contractual maturities of financial liabilities at the reporting date. The 

amounts are gross and undiscounted and include estimated interest payments.

Market risk is the risk that changes in market prices – foreign exchange rates and interest rates – will affect 

the Group’s income or the value of its financial instruments held. The objective of market risk management is 

to manage and control market risk exposures within acceptable parameters, while optimising the return.

Currency risk

The Group has exposure to currency risk to the extent that there is a mismatch between the currencies in 

which sales, purchases and borrowings are denominated and the functional currency of the Group. The 

functional currency of all entities belonging to the Group is the Romanian Leu (RON). 

The currency in which these transactions are primarily denominated is RON. Certain liabilities are 

denominated in foreign currency (EUR). The Group also holds deposits and bank accounts denominated in 

foreign currency (EUR). The Group’s policy is to use the local currency in its transactions as far as practically 

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possible. The Group does not use derivative or hedging instruments.

Table 59. Sensitivity analysis

Exposure to currency risk 

The summary of quantitative information on the Group’s exposure to currency risk is given below.

Table 57. Exposure to currency risk 2023-2021

 (RON mn.)

31 December 

31 December 

31 December 

2023

2022

2021

Denominated 

Denominated 

Denominated 

EUR

EUR

EUR

 (RON mn.)

Effect

Profit before tax

Strengthening

Weakening

31 December 2023

EUR (5% movement)

31 December 2022

EUR (5% movement)

(2.1)

(1.0)

2.1

1.0

Source: Consolidated financial statements of Electrica Group as of 31 December 2023

Cash and cash equivalents

0.3

0.3

0.8

Exposure to interest rate risk 

Lease liability

(42.2)

(21.0)

(19.1)

The interest rate profile of the Group’s interest-bearing financial instruments is presented below.

Net statement of financial position exposure

(41.9)

(20.7)

(18.3)

Table 60. Fixed-rate and variable-rate instruments

Source: Consolidated financial statements of Electrica Group as of 31 December 2023

The following significant exchange rates have been applied during the year.

Table 58. Average rate and year-end spot rate

Average rate

Year-end spot rate

2023

2022

2023

2022

EUR/RON

4.9465

4.9315

4.9204

4.9474

 (RON mn.)

31 December 

31 December 

31 December 

2023

2022

2021

Fixed-rate instruments

Financial assets

Call deposits 

Financial liabilities

 154.0 

193.2

53.9

Sursa: Situatiile financiare consolidate ale Grupului Electrica la 31 December 2023

Long-term bank borrowings

 (1,068.9)

(651.8)

(418.9)

Sensitivity analysis

A reasonably possible strengthening (weakening) of the EUR against RON at 31 December would have 

affected the measurement of financial instruments denominated in a foreign currency and profit 

before tax by the amounts shown below. The analysis assumes that all other variables, in particular 

interest rates, remain constant and ignores any impact of forecast sales and purchases.

Lease liability

Total

Variable-rate instruments

Financial liabilities

Lease liability

 (32.3)

(37.4)

(8.3)

 (947.2)

(495.9)

(373.3)

 (10.9)

(16.3)

(13.3)

Long-term bank borrowings

 (248.7)

(109.0)

(209.6)

Bank overdrafts

Total

 (2,851.2)

(2,571.0)

(627.4)

 (3,110.8)

(2,696.3)

(850.3)

Source: Consolidated financial statements of Electrica Group as of 31 December 2023 and 31 December 2022

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Fair value sensitivity analysis for fixed-rate instruments

The Group does not account for any fixed-rate financial assets or financial liabilities at fair value 

through profit or loss. Therefore, a change in interest rates at the reporting date would not affect profit 

or loss. 

Cash flow sensitivity analysis for variable-rate instruments 

A reasonably possible change of 50 basis points in interest rates at the reporting date would have 

increased (decreased) profit before tax by the amounts shown below. This analysis assumes that all 

other variables, in particular foreign currency exchange rates, remain constant.

Table 61. Cash flow sensitivity analysis for variable-rate instruments

(RON mn.)

Profit before tax

50 bp increase

50 bp decrease

31 December 2023

Variable-rate instruments

31 December 2022

Variable-rate instruments

Source: Consolidated financial statements of Electrica Group as of 31 December 2023

(15.6)

(13.5)

15.6

13.5

6.9  Description of the main features of internal control  

and risk management systems in relation to the  
financial reporting process

The 

internal  control 

represents  all  measures, 

•  the reliability of financial reporting (accuracy, 

procedures  and  policies  adopted  by 

ELSA 

completeness and correctness of the 

management  and  their 

implementation  by  the 

information);

employees,  regarding  the  organizational  structure, 

applied  procedures,  methods, 

techniques  and 

instruments,  for  the  purpose  of 

implementation 

of  company  strategy  and  objectives.  The  internal 

control 

includes  all  control  forms  performed  at 

company level, such as preventive financial control, 

•  ensuring an environment based on identifying, 

understanding and controlling risks, 

environment which will contribute to achieving 

the organizational goals;

•  efficient and effective business operations and 

internal and managerial control, compliance control.

use of resources;

The  internal  control  activity  represents  a  way  of 

resolutions and follow-up.

analysis of ELSA activities, of adopting and applying 

the  internal  management,  also  associated  with  the 

The  achievement  of  these  goals  was  performed  in 

knowledge  activity,  which  allows  the  Company’s 

2023 as follows:

•  applying the BoD and executive management 

management  to  coordinate  the  activities  within  the 

organization in an efficient manner.

In  this  respect,  through  the  internal  control  the 

monitoring  and  verification 

is  carried  out, 

in 

•  in order to ensure internal compliance with 

the competition and state aid rules, several 

training and practical verification sessions were 

conducted;

accordance  with  the  legislation  in  force  and  the 

•  for the implementation by DEER of the 

specific  procedures,  in  compliance  with  the  legal 

commitments assumed within the investigation 

framework  that  regulates  the  activities  carried  out 

of the Competition Council, ELSA provides, 

in  the  checked  entities,  according  to  the  approved 

according to the concluded contract, 

control objectives and themes.

consultancy services and conducts trainings 

aimed at increasing the degree of information 

Through 

internal 

control, 

the 

Company’s 

and awareness of the staff regarding the 

management  ascertains  the  deviations  resulting 

competition policy;

from the established objectives, analyzes the causes 

and  orders  the  corrective  or  preventive  measures 

•  clear definition and responsibilities segregation 

for each person involved in the organizational 

that are required.

The 

internal  control  and  the  risk  management 

systems have the following main goals:

•  protecting organizational resources by 

preventing and detecting waste, negligence, 

deviations / irregularities, negligence, abuses, 

fraud etc.;

process; segregation of duties regarding 

the carrying out the operations among the 

personnel, so that the approval, control and 

registration duties are adequately assigned 

to different persons (as per the Company’s 

organizational chart);

•  elaboration, update and implementation of 

regulations, policies, procedures, forms etc;

•  compliance with the applicable legislation and 

•  unitary updating at group level the Code of 

the internal regulations;

Ethics and Professional Conduct and subsequent 

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policies;

•  the existence of a Guide for Accounting Policies, 

elaborated in accordance with the requirements 

of the legislation in force, approved by the Board 

of Directors;

•  the existence of a schedule and a well-defined 

process regarding the elaboration of accounting 

and financial information in accordance 

with the reporting requirements (financial 

reports, including financial statements, annual 

and interim reports, budget etc) and their 

appropriate verification and approval by the 

Board of Directors, for the purpose of endorsing 

and release for publication.

The framework of ELSA’s internal control system 

consists of the following elementse:

	Control environment – The existence of a 

control environment represents the basis of an 

efficient internal control system. It consists of 

the commitment towards integrity and ethical 

values (for this purpose, a series of policies on 

zero tolerance towards corruption, anti-fraud 

and anti-money-laundering, avoidance and 

fighting against conflicts of interest, gifts policy, 

protocol expenses, and forbidding facilitating 

payments, transparency and the involvement 

of stakeholders), as well as organizational 

measures (policies on the delegation of 

authority and responsibilities);

	Evaluation of risks – Generally, all processes are 
within the scope of the internal control system. 

An identification process is carried out regarding 

major or critical risks, related to particular 

activities for stimulating internal control 

methods;

	Control activities meant to prevent/reduce the 
risks – Control activities have different forms 

(managerial control, general control, preventive 

financial control, etc.) and they are implemented 

and carried out with the purpose of reducing 

significant operational and compliance risks;

	Information and communication – Information 

helps all other components of the internal 

control system by communicating to employees 

their responsibilities for controlling and providing 

information in an adequate and timely manner, 

so that all employees may be able to fulfil their 

duties. Internal communication occurs by means 

of disseminating information to all levels, while 

the external one implies the dissemination of 

information to external parties, in accordance 

with the requirements and expectations;

	Monitoring activities – the Audit and Risk 

Committee together with the Internal Audit 

Department assess the efficiency and the 

effective implementation of the internal control 

system.

The  Company’s  management  monitors 

the 

functioning of internal controls by means of periodical 

analyzes;  for  instance,  the  execution  of  the  budget, 

the monitoring of security incidents.

Deficiencies  in  the  implementation  or  functioning  of 

internal  controls  are  documented  into  the  internal 

control  reports,  respectively  in  internal  and  external 

audit  reports  and  briefing  notes,  and  they  are 

presented  to  the  management,  with  the  purpose  of 

issuing the corrective actions. 

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7. STATEMENTS

238

239

Statements

Based on the best available information, we confirm that the consolidated financial statements 

reviewed and audited for the period ended 31 December 2023 prepared in accordance with 

International Financial Reporting Standards as adopted by the European Union (“IFRS-EU”), provides 

an accurate and real image regarding the Electrica Group’s financial position, the financial 

performance and the cash flows, as required by the applicable accounting standards, and that 

this Report, prepared in accordance with art. 63 of the law no. 24/2017 on issuers of financial 

instruments and market operations and to annex no. 15 to ASF Regulation no. 5/2018 for the 

period ended 31 December 2023, comprises accurate and real information regarding the Group’s 

development and performance.

Based on the best available information, we confirm that the consolidated financial statements 

reviewed and audited for the period ended 31 December 2023 prepared in accordance with OMFP 

2844/2016 for the approval of the Accounting Regulations in accordance with the International 

Financial Reporting Standards adopted by the European Union with subsequent changes, provides 

an accurate and real image regarding the Electrica Group’s financial position, the financial 

performance and the cash flows, as required by the applicable accounting standards, and that 

this Report, prepared in accordance with art. 63 of the law no. 24/2017 on issuers of financial 

instruments and market operations and to annex no. 15 to ASF Regulation no. 5/2018 for the 

period ended 31 December 2023, comprises accurate and real information regarding the Group’s 

development and performance.

Chair of  the  Board  of Dir ector s ,
Dumitru CHIRITA

Chief  Executive Offi cer,
Alexandru-Aurelian CHIRITA

Chief  Fin ancia l Offi ce r,
Stefan Alexandru FRANGULEA

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Appendix 1 – Litigations

A.1 Electrica Group litigations in 2023:

A.1.1 Disputes with ANRE        

Crt. 
no.

Parties/Case file 
number

Subject matter

Court

Case status

1

2

3

4

5

6

Plaintiff: ELSA;
Defendant: ANRE;

361/2/2015

Cancellation of ANRE Order no. 155/2014 
regarding the approval of the specific 
tariffs for the electricity distribution 
service and the price for the reactive 
energy for DEER (former SDTN).

Bucharest 
Court of 
Appeal

The Court dismissed the 
case on merits. Appealable 
within 15 days from it’s 
communication.

Plaintiff: ELSA;
Defendant: ANRE;

2790/1/2023 (former 
no. 360/2/2015)

Cancellation of ANRE Order no. 156/2014 
regarding the approval of the specific 
tariffs for the electricity distribution 
service and the price for the reactive 
energy for DEER (former SDTS).

High 
Court of 
Cassation 
and 
Justice

The Court dismissed the 
case on merits. ELSA filed 
a recourse, definitively 
dismissed by court on 
14.02.2024.

Plaintiff: ELSA; DEER
Defendant: ANRE;

7614/2/2018

Action for partial annulment of ANRE 
Order no. 169/2018 regarding the approval 
of the Tariff Setting Methodology for the 
Electricity Distribution Service.

High 
Court of 
Cassation 
and 
Justice

Case dismissed on merits, 
a recourse finally dismissed 
on 16.05.2023.

Plaintiff: ELSA; DEER
Defendant: ANRE

7591/2/2018

Action for the annulment of the ANRE 
Order no. 168/2018 regarding the 
regulatory rate of return and obliging 
ANRE to issue a new order.

Bucharest 
Court of 
Appeal

Suspended until the 
final settlement of case 
no. 541/36/2018 of the 
Bucharest Court of Appeal. 

Plaintiff: ELSA, DEER
Defendant: ANRE 

434/2/2019

Legal action for annulment of ANRE 
Order 197/2018 regarding the approval 
of the specific tariffs for the electricity 
distribution service and the price for the 
reactive electric energy for DEER (former 
SDMN).

Bucharest 
Court of 
Appeal

Plaintiff: ELSA, DEER
Defendant: ANRE

435/2/2019*

Legal action for annulment of ANRE 
Order 199/2018 regarding the approval 
of the specific tariffs for the electricity 
distribution service and the price for the 
reactive energy for DEER former SDTS). 

High 
Court of 
Cassation 
and 
Justice

In course of settlement.

On 9 June 2020, the court 
rejected the action as 
unfounded. An appeal 
was filed, on 26.04.2023 
the recourse of DEER and 
Electrica was admitted. The 
High Court of Cassation 
and Justice quashes the 
judgment of 17.03.2020 and 
the sentence and sends 
the case back to the same 
court. Retrial in course of 
settlement.

Crt. 
no.

Parties/Case file 
number

Subject matter

Court

Case status

7

8

9

10

11

12

Plaintiff: ELSA, DEER 
Defendant: ANRE 

436/2/2019

Legal action for annulment of ANRE 
Order 198/2018 regarding the approval 
of the specific tariffs for the electricity 
distribution service and the price for the 
reactive energy for DEER former SDTN).

Bucharest 
Court of 
Appeal

In course of settlement. 

Plaintiff: DEER
Defendant: ANRE

184/2/2015

Plaintiff: DEER
Defendant: ANRE

309/2/2020

Plaintiff: DEER
Defendant: ANRE

305/2/2020

Plaintiff: DEER
Defendant: ANRE

371/2/2015*

Plaintiff: DEER
Defendant: ANRE

208/2/2015

Contentious administrative litigation 
– Cancellation of ANRE Order no. 
146/2014 regarding the setting of the 
regulated rate of return applied at the 
approval of the tariffs for the electricity 
distribution service provided by the 
DSOs starting with 1st January 2015 and 
the abrogation of art. 122 of the tariff 
setting methodology for the electricity 
distribution service, approved by the 
ANRE order no. 72/2013.

Judicial action on the cancellation 
of documents issued by regulatory 
authorities – Order no. 227/2019 
regarding the approval of the tariffs for 
the electricity distribution service and 
the price for the reactive energy for DEER 
(former SDMN).

Bucharest 
Court of 
Appeal

On 29.04.2022, the Court 
dismissed the case. The 
decision is definitive by non 
appeal by the plaintiff.

Bucharest 
Court of 
Appeal

On 04.10.2023, the Court 
dismissed the case. 
Appealable within 15 days 
from it’s communication.

Action for the cancellation of ANRE’s 
President Order no. 228/2019 regarding 
the approval of the of the specific tariffs 
for the electricity distribution service and 
the price for the reactive energy for DEER 
(former SDTN).

High 
Court of 
Cassation 
and 
Justice

Case dismissed on merits, 
an appeal was filed, 
definitively dismissed on 
14.12.2023.

Cancellation of the ANRE’s President 
Order no. 156/2014 regarding the approval 
of the specific tariffs for the electricity 
distribution service and the price for the 
reactive energy for DEER (former SDTS).

Cancellation of the ANRE’s President 
Order no. 146/2014 regarding the 
establishment of the regulated rate of 
return applied to the approval of the 
tariffs for the electricity distribution 
service provided by DSOs from 1st 
January 2015 and the abrogation of Art. 
122 of the Tariff Pricing Methodology for 
Electricity Distribution Service, approved 
by the ANRE Order no. 72/2013.

Bucharest 
Court of 
Appeal

Suspended until the 
settlement of the case file 
no. 208/2/2015.

Bucharest 
Court of 
Appeal

A reinstatement request 
was filed. Attached to 
case no. 184/2/2015. On 
29.04.2022, the Court 
dismissed the case. The 
decision is definitive by non 
appeal by the plaintiff.

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Crt. 
no.

Parties/Case file 
number

Subject matter

Court

Case status

Crt.
no.

Parties/Case file 
number

Object

Court

Case status

13

14

15

Plaintiff: DEER
Defendant: ANRE 

303/2/2020

Plaintiff: DEER
Defendant: ANRE 

53/2/2022

Cancellation of the ANRE’s President 
Order no. 229/2019 regarding the 
approval of the specific tariffs for the 
electricity distribution service and the 
price for the reactive energy for DEER 
(former SDTS).

Bucharest 
Court of 
Appeal

Suspended on 
02.11.2022. Application 
for reinstatement. On 
07.06.2023 - suspend 
the file. Application for 
reinstatement was filed.

Cancellation of the ANRE’s President 
Order no. 119/2021 regarding the approval 
of the specific tariffs for the electricity 
distribution service and the price for the 
reactive energy for DEER. 

Bucharest 
Court of 
Appeal

Suspended until the final 
settlement of case no. 
6176/2/2022.

Plaintiff: DEER
Defendant: ANRE

6176/2/2022

Action for partial annulment of ANRE 
Order no. 169/2018 regarding the approval 
of the Tariff Setting Methodology for the 
Electricity Distribution Service.

High 
Court of 
Cassation 
and 
Justice

 Case dismissed on merits. 
A recourse was filed, in filter 
proceedings.

Source: Electrica

A.1.2 Fiscal matter disputes

Crt.
no.

Parties/Case file 
number

Object

Plaintiff: ELSA
Defendant: NAFA

17237/299/2017

1. Suspension of forced execution 
initiated by NAFA-DGAMC in the 
enforcement file no. 13267221 under the 
enforceable order no. 13725/3 May 2017 
and of the no. 13739/3 May 2017; 
2. Cancellation of the enforcement 
order no. 13725/3 May 2017, of the no. 
61/90/1/2017/263129 (which also bears 
the No. 13739/3 May 2017) issued by 
NAFA-DGAMC for the amount of RON 
39,248,818 and all subsequent execution 
orders issued in connection with the 
forced execution of the amount of 
RON 39,248,818 in the execution file no. 
13267221.

Plaintiff: ELSA
Defendant: NAFA - 
DGAMC 

25091/299/2018

Appeal to execution and suspension of 
forced execution - cancellation of the 
enforcement order no. 13566/22 June 
2018 and the notice 13567/22 June 2018, 
issued in the execution file no.13267221/
61/90/1/2018/278530, amounting to RON 
10,024,825 (representing the partial fine 
from the Competition Council).

1

2

Court

Case status

Bucharest 
Tribunal

Action admitted on 
merits. The Decision was 
appealed, in course of 
settlement. 

District 1 Court

In course of settlement.

Plaintiff: ELSA
Defendant: NAFA - 
DGAMC 

3

2444/2/2021

1. Obligation of NAFA to correct the 
evidence of tax receivables, held 
according to art. 153 FPC so that it 
reflects the decisions given by the 
courts in the disputes between the 
parties, through decisions that have 
come into the power of the judicial 
work, respectively by: a) Decision no. 
1078/17.04.2015 issued by the Bucharest 
Court of Appeal in case no. 5433/2/2013; 
b) Decision no. 5154/26.06.2017 issued 
by Bucharest District 1 Court in case 
no. 51817/299/2016*; c) Decision no. 
624/06.03.2015 issued by the Bucharest 
Court of Appeal in case no. 7614/2/2013; 
Obligation of NAFA to draw up those 
acts or administrative correction 
operations which: - to reflect Electrica’s 
right to the reimbursement of RON 
5,860,080 representing fiscal obligation 
unlawfully reinstated in the fiscal 
evidence; - to reflect Electrica’s right to 
the reimbursement of RON 817,521 which 
was not object of the reimbursement 
made by NAFA on 22 September 2020, 
arising from the annulment of the 
fiscal decision in case mentioned in 
item 1 above, let. a); 2. Obligation of 
NAFA to pay the legal interests related 
to the period 12.12.2016 – 21.09.2020, 
calculated in a percentage of 0.02%/
day of delay for the debt amount of RON 
18,687,515 reimbursed on 22.09.2020, 
in total amount of RON 5,161,491.64; 
3. Establishing a 15 days term from 
the decision so that NAFA-DGAMC to 
settle the fiscal file as indicated above, 
imposing late penalties of RON 1,000/
day of delay for exceeding this term, 
due to Electrica by DGAMC.

High Court 
of Cassation 
and Justice

On 07.06.2023, the Court 
admits in part the case. 
Orders the defendant to 
correct the records of the 
tax claims concerning 
the plaintiff in order to 
highlight the plaintiff’s 
right to a refund of the 
amount of RON 5,860,080 
and the amount of 
RON 817,521. Orders the 
defendant to pay to the 
applicant the amount 
of RON 5,161,491.64 as 
interest. Orders the 
defendant to pay to the 
plaintiff the amount of 
RON 49,083.37 in respect 
of costs. A recourse 
was filed, in course of 
settlement.

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Crt.
no.

Parties/Case file 
number

Object

Court

Case status

Crt.
no.

Parties/Case file 
number

Object

Court

Case status

Plaintiff: DEER
Defendant: NAFA - 
DGAMC

359/2/2021 (former
1018/2/2016*)

Cancellation of administrative act – 
Decision no. 462/23 November 2015, 
litigation amount of RON 7,731,693 
(RON 4,689,686 income tax + RON 
3,042,007 VAT) and for the amount of 
RON 6,154,799 (RON 3,991,503 interests/
penalties and late fees related to 
income tax + RON 2,163,296 interests/
penalties and delay fees related to the 
VAT).

Bucharest 
Court of 
Appeal - 
retrial

The court of first instance 
rejected the action as 
unfounded. The plaintiff 
filed an appeal, admitted 
by the court, which 
quashes the contested 
decisions and, re-judging, 
partially admits the 
action. Partially annuls 
Decision no.462/23.11.2015 
issued by A.N.A.F–DGSC, 
regarding point 3. 
Obliges the defendant 
A.N.A.F–DGSC to settle 
on the merits the claim 
regarding the amount 
of RON 10,091,323. It 
sends for retrial to 
the same court the 
request regarding the 
other fiscal obligations 
retained by the fiscal 
body, amounting to RON 
13,886,492. Final (file no. 
1018/2/2016*). In retrial, 
case no. 1018/2/2016* was 
registered with a new 
number, 359/2/2021 - in 
course of settlement.
DGAMG-ANAF rejected 
by Solution Decision 
no. 154/02.07.2020, the 
appeal regarding the 
amount of RON 10,091,323 
(Point 3 of Decision 
no. 462/2015) reason 
for which an action for 
annulment was filed 
on 22.12.2020 (file no. 
641/42/2020).

Plaintiff: DEER
Defendant: DGAMC – 
NAFA 

641/42/2020
641/42/2020

Plaintiff: DEER
Defendant: Galati City 
Hall - DITVL Galati

263/42/2020

Annulment of the administrative act of 
the Settlement Decision 154/02.07.2020 
for the amount of RON 10,091,323 (point 3 
of the Decision no. 462/23.11.2015)

Ploiesti Court 
of Appeal

In course of settlement.

Cancellation of administrative 
documents issued by the fiscal bodies 
within the Galati City Hall - DITVL Galati, 
respectively Fiscal inspection report, 
taxation decision and decision to 
resolve the appeal. According to the 
Fiscal Inspection Report, the control 
team determined an additional tax 
on buildings, together with the related 
accessories, in a total amount of RON 
24,831,293, for the 2012-2015 period.

High Court 
of Cassation 
and Justice

On merits, the Court 
dismissed the case as 
unfounded. An appeal 
was filed, on 31.01.2024 
the recourse of DEER was 
admitted. The High Court 
of Cassation and Justice 
quashes the judgment of 
the sentence and sends 
the case back to the 
same court.

4

5

6

Plaintiff: EL SERV
Defendant: NAFA

31945/3/2018

Cancellation of administrative decision 
no. 221/19 July 2017 - cancellation of 
penalties related to the decision no. 
305/2017 from above, RON 118,215.

Bucharest 
Court

The case has been 
suspended until the 
final settlement of the 
case no. 5786/2/2018 
and following the final 
settlement of the case, 
this file has been put 
back on role. Case no. 
5786/2/2018 had as 
object the cancellation 
of administrative act 
NAFA RIF 2017 and 
decision no. 305/30 May 
2017, amounting to RON 
46,260,952, the amount 
by which the fiscal loss 
of the Company was 
diminished; RON 7,563,561 
established as additional 
VAT for payment by the 
refusal to deduct the VAT 
+ related accessories. 
The claim was dismissed.

Plaintiff: EFSA
Defendant: NAFA – 
DGAMC

8709/2/2018*

Cancellation of: 
• DGSC Decision no. 325/26 June 2018 
• Decision F-MC 678/28 December 2017
• Report F-MC 385/28 December 2017
• Decision no. 511/24 October 2018
• Decision no. 21095/24 July 2018
Value: RON 11,483,652 

Bucharest 
Court of 
Appeal

 In course of settlement.

7

8

Source: Electrica

A.1.3  Other significant litigations  

(with a value higher than EUR 500 thousand)

Crt. 
no.

Parties/Case file 
number

Object

Court

Case status

1

2

Creditor: ELSA
Debtor: Petprod S.A.

47478/3/2012/a1

Bankruptcy, registering to the 
list of creditors for the amount 
of RON 2,591,163

Bucharest 
Tribunal

Procedure definitively closed on 
12.12.2023.

Creditor: ELSA
Debtor: CET Braila S.A.

2712/113/2013

Bankruptcy, registering to the 
list of creditors in amount of 
RON 3,826,035.

Braila Court 

Ongoing procedure.

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Crt. 
no.

Parties/Case file 
number

Object

Court

Case status

Crt. 
no.

Parties/Case file 
number

Object

Court

Case status

3

4

5

6

7

Creditor: ELSA, AAAS, 
BCR SA and others
Debtor: Oltchim S.A.

887/90/2013

Creditor: ELSA
Debtor: Romenergy 
Industry SRL

2088/107/2016

Creditor: ELSA
Debtor: Transenergo 
Com S.A.

1372/3/2017

Creditor: ELSA
Debtor: Electra 
Management & 
Supply SRL

41095/3/2016

Creditor: ELSA
Debtor: Fidelis Energy 
SRL

3052/99/2017

Bankruptcy, remaining 
amount to be recovered – 
RON 116,058.538.

Valcea Court 

Ongoing procedure.
The amount is registered in the 
definitive table of receivables 
updated following the fact that 
the Decision EU Tribunal from 
Luxemburg, establishing that 
Oltchim S.A. benefited from 
illegal state aid from a numberof 
Romanian companies, including 
ELECTRICA S.A, became definitive. 

Bankruptcy, registering to the 
list of creditors in amount of 
RON 2,917,266.

Alba Iulia 
Court of 
Appeal

The procedure was closed on 
12.12.2022, the decision being 
appealed by DEER – finally 
dismissed on 06.04.2023

Insolvency proceedings. 
Amount RON 37,088,830.

Bucharest 
Court

Bankruptcy. Amount: RON 
6,027,537.

Bucharest 
Court

Bankruptcy. Amount: RON 
11,291,747.90.

Iasi Court

Ongoing reorganization procedure. 
On 03.02.2021, the Debtor’s 
reorganization plan was confirmed, 
according to which unsecured 
receivables do not participate in 
distributions. ELSA’s appeal against 
the sentence confirming the 
reorganization plan was definitively 
dismissed.

Ongoing procedure. In case, a 
request for liability has been filed, 
representing the object of the 
associated file no. 41095/3/2016 / 
a1, in which ELSA has the quality of 
accessory intervener, case in course 
of settlement

Ongoing procedure. On 26.04.2023, 
the bankruptcy was ordered. Of the 
total amount initially recorded at 
the credential table, the amount 
of RON 66,066.07, representing 
ELSA’s debit to Fidelis Energy, was 
compensatedin the final table 
consolidated with this amount.

Plaintiff: ELSA 
Defendant: 
Competition Council  

1100/1/2023

Appeal for annulment 
against civil decision no. 
5599 of 22 November 2022, 
pronounced by ICCJ In file 
no. 3889/2/2018. Case no. 
3889/2/2018 had as object 
the annulment of Competition 
Council Decision no. 77/20 
December 2017, by which an 
ELSA charge is set through a 
fine of RON 10,800,984 and, in 
the subsidiary, the reduction 
of the fine set up to the legal 
minimum of 0.5% of ELSA’s 
turnover, by re-individualizing 
the alleged anticompetitive 
facts, with the retention 
and full use of all mitigating 
circumstances applicable to 
ELSA.

High Court 
of Cassation 
and Justice

On 22.11.2023, the court dismissed 
the appeal for annulment as 
inadmissible. Final. 

Plaintiff: ELSA 
Defendant: Elite 
Insurance Company  

44380/3/2018

Claims - request for 
equivalent value of the 
insurance policy issued to 
guarantee the obligations of 
Transenergo Com S.A., in the 
amount of RON 4,000,000.

Bucharest 
Court

Suspended based on art. 307 Civil 
Procedure Code. A request for the 
reinstatement of the cause will be 
filed.

Plaintiff: ELSA
Defendant: Silver 
Broker de Asigurare-
Reasigurare SRL 
(former Zurich 
Broker de Asigurare 
Reasigurare SRL)

37068/3/2021/a1  
37068/3/2021/a2

Insolvency. Receivable – RON 
4,065,408 

Court of 
Appeal

Following the termination of the 
case 3310/3/2020, based on art. 75 
of Law no. 85/2014, ELSA has filed a 
request for registration at the credit 
table in the bankruptcy file of Silver 
Broker de Asigurare-Reasigurare 
SRL, case no. 37068/3/2021, the 
claim being dismissed ELSA 
filed an appeal, object of case 
no. 37068/3/2021/a1 and no. 
37068/3/2021/a2 (attached to case 
no. 37068/3/2021/a1). On 24.10.2023, 
the court dismissed the connexed 
cases; ELSA filed an appeal. 

Plaintiff: ELSA
Defendant: former 
directors and 
administrators of ELSA

35729/3/2019

Claims - claim for damages 
calculated as a result of 
the control of the Court of 
Accounts, amounting RON 
322,835,121.

Bucharest 
Court

Suspended until the final settlement 
of case 2229/2/2017.

8

9

10

11

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Crt. 
no.

Parties/Case file 
number

Object

Court

Case status

Crt. 
no.

Parties/Case file 
number

Object

Court

Case status

Plaintiff: VIR Company 
International S.R.L.
Defendant: DEER

12

7507/105/2017

Claims - the amount 
requested by VIR Company 
International SRL consists of: 
- EUR 5,000,000, damage 
caused by delayed issuance 
of the connection certificate 
for the photovoltaic 
plant located in Valea 
Calugareasca commune, 
Darvari village;
- EUR 155,000, equivalent 
of the amount of electricity 
produced by the plant during 
the technological tests period;
- EUR 145,000, green 
certificates related to the 
amount of energy produced 
by the photovoltaic plant 
during the technological tests 
period.
In addition, it requires to DEER 
to pay the penalty interest of 
5.75%/year for all the amounts 
of money claimed and court 
costs.

Ploiesti Court 
of Appeal

Creditor: DEER
Debtor: Transenergo 
Com S.A.

1372/3/2017

Insolvency proceedings. 
Amount: RON 9,274,831.

Bucharest 
Court

The court rejects the exceptions of 
inadmissibility and lack of object 
of the introductory request invoked 
by the defendant, as unfounded. 
Dismisses the introductory request 
as unfounded. Accepts in part the 
request made by the defendant 
regarding the payment of court 
costs and obliges the plaintiff to the 
defendant to pay the court costs, 
respectively to pay the sum of RON 
50,000 representing a reduced 
attorney’s fee. Appealable within 
15 days from communication. 
On 07.07.2022, the court partially 
admitted the request to increase 
the expert’s fee for the amount of 
RON 13,100 and obliges the plaintiff 
to pay this amount to the expert. 
Appeal filed by the plaintiff, in 
course of settlement.

Ongoing proceedings. On 3 
February 2021, the Debtor’s 
reorganization plan was confirmed, 
according to which unsecured 
receivables do not participate in 
distributions. The Debit represents 
the accumulated receivables as a 
result of the distribution subsidiaries 
merger.

13

14

Plaintiff: DEER
Debtor: ELSA

18976/3/2020
(33763/3/2019)

Claims, according to the 
Court of Accounts Decision, 
representing payments not 
owed of RON 20,350,189 made 
by DEER (former SDMN).

Bucharest 
Court

Suspended until the final settlement 
of case no. 1677/105/2017.

Plaintiff: Sinaia City 
Hall
Defendant: DEER

16

3719/105/2020**

Plaintiff: Tutu Daniel 
and Tudori Ionel
Dedendant: DEER

15

180/233/2020*

Claims - equivalent value 
of land related to the Galati 
Center Transformation Station 
– RON 2,500,000.

Galati 
Tribunal

The court of first instance partially 
admitted the request to compel 
the defendants to pay the 
plaintiffs the sum of EUR 241,600 as 
compensation for the lack of use of 
the income. Obliges the defendants 
to pay to the plaintiffs the legal 
interest regarding the damages 
established from the moment of the 
final stay until the actual payment.
It finalizes the experts’ fee in the 
amount of RON 1,600 for expert 
Bogatu Mirela Dorina and the 
amount of RON 1,500 for expert 
Grecu Iulian and obliges the 
plaintiffs to pay the expert Bogatu 
Mirela Dorina the amount of RON 
600 - the difference between the 
expert’s fee and to expert Grecu 
Iulian the amount of. It obliges the 
defendants to pay the defendant 
Tutu Daniel the sum of RON 38,605 
and the plaintiff Tudori Ionel the 
sum of RON 12,000 as court costs. 
Appeal in course of settlement.

Action in “Obligation to do” 
administrative litigation. 
Sinaia City Hall requests: 
-mainly: obliging MN to 
comply with LCD 113/2015 
in the sense of executing 
the works regarding the 
underground location of 
the technical-municipal 
networks for the project 
“Energy efficiency and lighting 
extension of the historic area 
- Sinaia” 
- in the alternative: in case 
MN will not execute the works 
in due time and the City Hall 
will execute the works in our 
name and on our behalf, 
MN will be obliged to pay 
RON 7,659,402.72 + VAT (RON 
9,101,192); 
- updating the amount 
requested in subsidiary with 
the inflation rate and legal 
interest.

 Ploiesti Court 
of Appeal

The Court dismissed the case on 
merits. A recourse was filed.

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Parties/Case file 
number

Object

Court

Case status

Crt. 
no.

Parties/Case file 
number

Object

Court

Case status

Plaintiff: DEER
Defendant: 
Romenergy Industry 
S.A.

2088/107/2016

Plaintiff: Asirom 
Vienna Insurance 
Group S.A.
Defendant: DEER

439/111/2017

Plaintiff: Energo 
Proiect SRL
Defendant: DEER, DEER 
– Oradea Subsidiary

374/1285/2018

Bankruptcy - amount: RON 
9,224,595.51.

Alba Iulia 
Court of 
Appeal

The court of first instance admitted 
the request to close the bankruptcy 
procedure. The debit represents 
the accumulated receivables as a 
result of the distribution subsidiaries 
merger. The appeal was rejected on 
06.04.2023. Final.

Recourse claims – for RON 
2,842,347, representing 
the compensation paid by 
the plaintiff to the insured 
company SC Ciocorom SRL 
following a fire that occurred 
on 7 March 2013. DEER (former 
SDTN) fault is invoked for the 
overvoltage after a power 
outage.

Oradea Court 
of Appeal

Case dismissed on merits an on 
the appeal. With recourse within 
30 days from the notification of the 
decision. The decision is definitive 
by non appeal by the plaintiff.

Claims of RON 2,387,357.

Cluj Court of 
Appeal 

On merits and in the appeal, the 
case was dismissed. The Court 
admits the appeal declared by 
the plaintiff ENERGO PROIECT S.R.L., 
cancels the decision and sends the 
case to a new trial, the same court. 
Appeal for retrial.

First instance. The High Court of 
Cassation and Justice solved the 
negative competence conflict 
between Brasov Court and 
Bucharest Court, the case being 
in course of settlement at Brasov 
Court. 

Plaintiff: DEER
Defendant: ELSA

4469/62/2018

Claims according to the 
Courts of Account findings – 
RON 8,951,811 

Brasov Court

Plaintiff: DEER
Defendant: directors 
and managers

342/62/2020*

Plaintiff: EL SERV
Defendant: Servicii 
Energetice Banat S.A.

8776/30/2013 (joint 
with cu 2982/30/2014)

Claims against the former 
general managers of the 
company, as a result of 
the non-fulfilment of some 
measures ordered by the 
Court of Accounts for the 
amount of RON 8,951,812.

Bankruptcy - amount 
admitted to the list of 
creditors RON 72,180,439.68.

Plaintiff: EL SERV
Defendant: SEO

2570/63/2014

Bankruptcy - amount 
admitted to the list of 
creditors RON 26,533,446.

Brasov Court

Suspended until the final settlement 
of case no. 4469/62/2018.

Timis Court 

Ongoing proceedings.

Dolj Court 

Ongoing proceedings. 

17

18

19

20

21

22

23

24

25

26

27

28

29

30

31

Bankruptcy - amount 
admitted to the list of 
creditors: RON 15,130,315.27.

Constanta 
Court 

Ongoing proceedings. 

Bankruptcy – amount: 
admitted to the list of 
creditors RON 73,708,082.90. 

Bacau Court 

Ongoing proceedings. 

Claims – EUR 655,164, 
equivalent of RON 3,210,305.75.

Bucharest 
Court

Ongoing proceedings. 

Plaintiff: EL SERV
Defendant: SED

8785/118/2014

Plaintiff: EL SERV
Defendant: SE 
Moldova

4435/110/2015

Plaintiff: EL SERV
Defendant: New 
Koppel Romania

20376/3/2016

Plaintiff: Integrator 
S.A.
Defendant: EL SERV,
SAP Romania

34479/3/2016**

Claims – EUR 1,277,435.25 
license + EUR 2,650,855.68 
maintenance – RON 
equivalent 19,321,005.11

Bucharest 
Court of 
Appeal

Plaintiff: EL SERV
Defendant: directors 
and administrators 
2013-2014

35815/3/2019

Action in attracting the 
liability of directors and 
administrators - measure II.7 
of Decision no. 13/27.12.2016 
issued by the Romanian Court 
of Accounts– RON 7,165,549 
+ legal interest of RON 
4,485,340.29.

High Court 
of Cassation 
and Justice

The case was suspended on 
12.06.2019 until the jurisdiction was 
established in case 3O 266/2017 
registered with the Karlsruhe 
Court and declined in favor of the 
Mannheim Court.

The court dismissed the action as 
prescribed, ordering the plaintiff 
to pay the judicial costs. Appeal 
suspended, considering the death 
of the respondent Popescu Romeo; 
steps have been initiated to identify 
the heirs. Case reinstated, appeal 
dismissed as unfounded. A recourse 
was filed, definitively dismissed. 

Plaintiff: EL SERV
Defendant: directors 
and administrators 
2010-2014

35828/3/2019

Creditor: EFSA
Debtor: Apaterm S.A. 
Galati 

4783/121/2011*

Creditor: EFSA
Debtor: Ariesmin S.A. 
Branch

7375/107/2008

Action in attracting the 
liability of directors and 
administrators - measure II.8 
of Decision no.13/27.12.2016 
issued by the Romanian Court 
of Accounts for the amount of 
RON 19,611,812 + Legal penalties 
of RON 14,475,832.43.

High Court 
of Cassation 
and Justice

The court dismissed the action as 
it has been modifed and specified, 
as prescribed. Orders the plaintiff 
to pay the judicial costs. An appeal 
was filed, dismissed as unfounded. 
A recourse was filed, in course of 
settlement.

Bankruptcy – registering to 
the list of creditors for the 
amount of RON 2,547,551.

Galati Court

Ongoing proceedings.

Bankruptcy - registering to the 
list of creditors for the amount 
of RON 20,711,588.

Alba Court

Ongoing proceedings.

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Parties/Case file 
number

Object

Court

Case status

Crt. 
no.

Parties/Case file 
number

Object

Court

Case status

32

33

34

35

36

37

38

39

40

Creditor: EFSA
Debtor: Zlatmin S.A. 
Branch

6/107/2003

Creditor: EFSA
Debtor: Nitramonia 
S.A.

1183/62/2004

Bankruptcy - registering to the 
list of creditors for the amount 
of RON 9,314,176.

Alba Court

Ongoing proceedings.

Bankruptcy - registering to the 
list of creditors for the amount 
of RON 2,321,847

Brasov Court 

Ongoing proceedings.

Creditor: EFSA
Debtor: Remin S.A.

32/100/2009

Insolvency proceedings 
- registering to the list of 
creditors for the amount of 
RON 71,443,402.

Timisoara 
Court 

Ongoing proceedings.

Creditor: EFSA
Debtor: Oltchim S.A.

887/90/2013

Creditor: EFSA
Debtor: Energon 
Power and Gas S.R.L.

53/1285/2017

Creditor: EFSA
Debtor: CUG S.A.

2145/1285/2005

Bankruptcy - receivable RON 
16,700,311.

Valcea Court 

Ongoing proceedings.

Insolvency proceedings 
- registering to the list of 
creditors for the amount of 
RON 2,421,236.

Cluj 
Specialized 
Court

Case closed on 06.06.2023. Final 
decision.

Bankruptcy - registering to the 
list of creditors for the amount 
of RON 7,880,857.

Cluj 
Specialized 
Court

Ongoing proceedings.

Creditor: EFSA
Debtor: Colterm 
4657/30/2021 

Inslovency - registered to the 
list of creditors for the amount 
of RON 2,520,449.97

Timis Court

Ongoing proceedings.

Plaintiff: EFSA
Defendant: ELSA

6665/3/2019

Plaintiff: UAT Targu 
Secuiesc
Defendant: EFSA

886/119/2022

Claims: request of payment 
rearding the invoices 
paid without supporting 
documents, as it has been 
stated by the Court of Account 
– RON 7,025,632.

High Court 
of Cassation 
and Justice

The First Instance court 
dismissedthe claim of EFSA. The 
Decision has been appealed and 
dismissed by the Court. EFSA filed a 
recourse, definitively dismissed by 
the Court. 

Claims – RON 2,718,151.15

Covasna 
Tribunal

In course of settlement.

41

42

43

44

45

46

47

48

Plaintiff: EDPR 
Romania SRL 
Parat: EFSA

19662/3/2022

Plaintiff: EFSA
Defendant: ARC PARC 
INDUSTRIAL SRL
Called into 
guarantee:
VIBRACOUSTIC 
ROMANIA SRL

585/1285/2022

Plaintiff: Oradea City
Defendant: EFSA

752/111/2023*

Claims – RON 3,880,124.69

Bucharest 
Tribunal

The judgment was suspended 
until the final resolution of file no. 
3664/2/2022.

Claims: RON 7,294,831.26 

Cluj 
Specialized 
Court

In course of settlement.

Claims: RON 4,177,879 

Bihor Court

In 18th December 2023, the UAT 
Oradea’s action was dismissed. 
Appealabale within 10 days from it’s 
communication. 

Creditor: EFSA
Debtor: UZTEL SA

1223/105/2023

Insolvency proceedings 
- registering to the list of 
creditors for the amount of 
RON 2,466,866.78 

Prahova 
Court

Ongoing proceedings.

Plaintiff:EFSA
Defendant: ARC PARC 
INDUSTRIAL SRL

253/1285/2023

Plaintiff:EFSA
Defendant:Goldterm 
Mangalia

6408/118/2023

Plaintiff:EFSA
Defendant:A6 

263/1285/2023 Impex

Plaintiff: Ivan Laura 
Ionela
Ivan Cornel Ionut Ivan 
Vladimir Mihai
Defendant: EL SERV

34705/3/2015

Claims: RON 2,800,000 

Cluj 
Specialized 
Court

Solution in favour of EFSA. 
Receivable recovered.

Claims: 4.421.768,10 RON

Constanta 
Court

In course of settlement.

Claims: 3.547.674, 21 RON

Cluj 
Specialized 
Court

In course of settlement.

Civil liability - work accident 
resulting in employee death 
(amount of compensation 
claims – EUR 3 mn.).

Bucharest 
Court

Case reinstated. In course of 
settlement.

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255

Crt. 
no.

Parties/Case file 
number

Object

Court

Case status

Crt. 
no.

Parties/Case file 
number

Object

Court

Case status

Liability of the principal for the 
act of the defendant- work 
accident resulting in death of 
an AISE employee (amount of 
compensation claimed: EUR 
510,000)

Buzau Court

In course of settlement.

Insolvency – banckrupcy – 
RON 1,357,789.92.

Dambovita 
Court

Ongoing procedure. The current 
receivables have been fully 
recoverd.

Plaintiff: ELSA
Defendant: Servicii 
Energetice Banat 

57

3661/30/2020

Claims  –  contractual  liability: 
RON 2,009,233

 High Court 
of Cassation 
and Justice. 

Case dismissed on merits. Appeal 
partially admitted with reference 
to retrial end 3 request. Recourse 
rejected on 23.03.2023. Final

Insolvency – registration at 
the list of creditors for the 
amount of RON 26,283,220.67

Buzau Court

The court admitted the request to 
close the insolvency procedure. 
Definitive. Amount fully recovered. 

•  Obliging the defendant to 
leave us in full ownership 
and possession of the 
land located in Timisoara, 
Pestalozzi street no. 3-5, in a 
total area of 6,089 sqm;
•  rectification of entries in 

land registers no. 447675, 
408987 and 409003 
UAT Timisoara, in the 
sense of suppressing the 
inappropriate entries made 
in them, in order to agree 
the tabular status with the 
real legal situation of the 
real estate, respectively of 
the deletion of the property 
right of the tabular owner 
SERVICII ENERGETICE BANAT 
S.A. and registration of the 
property right of Societatea 
Energetica ELECTRICA S.A.

•  Litigation value: RON 

6,452,900. 

Timis Tribunal

Preliminary proceedings. 

Creditor: Societatea 
Electrica Furnizare SA
Debtor: Romaero

58

39261/3/2023

Bankruptcy (The debtor’ s 
request – art 10 Law 85/2014) 
- registering to the list of 
creditors for the amount of 
RON 4,051,759. 70.

Bucharest 
Tribunal

In course of settlement.

Claims – contractual liability – 
RON 2,851,297.30

Covasna 
Court

In course of settlement.

Source: Electrica

Claims - the plaintiff requests 
moral damages in the amount 
of EUR 500,000 thousand and 
RON 370 material damages as 
a result of the bodily injury by 
electric shock committed on 
12.08.2020.

Bistrita 
Nasaud 
Tribunal

The judgment of 29.06.2023 - 
partially admits the action, orders 
DEER to pay the amount of EUR 
60,000 as moral damages and RON 
150 material damages. With appeal 
within 30 days of service of the 
decision.

Claims – contractual liability – 
RON – 2,553,038.40.

Bucharest 
Tribunal

In course of settlement.

Plaintiff: Cazacu 
Maria
Defendant: DEER 

7212/200/2020 

Plaintiff: DEER – 
Defendant: COS 
Targoviste

1906/120/2013

Plaintiff: Verta Tel SRL
Defendant: DEER 

4106/3/2021

Plaintiff: DEER
Defendant: Getica 95 
SRL

1666/114/2021*

Plaintiff: DEER
Defendant: AEM S.A.

1347/119/2021

Plaintiff: Rebrean 
Gheorghe 
Defendant: DEER

1635/112/2022

Plaintiff: DEER
Defendant: Electric 
Planners SRL

25660/3/2022

49

50

51

52

53

54

55

56

Plaintiff: Allsys Energy 
SA Defendant: DEER

25660/3/2022

Aquisition: Annulament of the 
decision to terminate 5 frame 
agreements for MM, BH, BN, SJ, 
SM subsidiaries. Request for 
payment of damages – RON 
8,597,179.15 .

Bucharest 
Tribunal

In course of settlement.

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A.1.4  Litigations against the Romanian Court of  

Accounts

Crt.
no.

Parties/
Case file 
number

Object

Court

Case status

Plaintiff: ELSA
Defendant: 
Romanian 
Court of 
Accounts

2229/2/2017*

Partial annulment of Decision no. 
12/27 December 2016, issued by the 
director of the 2nd Direction from the 
IVth Department of the Romanian 
Court of Accounts, regarding the 
faults from point 1 to 8, with the 
consequence of dismissing the 
actions from point 1, 3 to 9 inclusive, 
imposed to ELSA by the disputed 
Decision; the partial annulment of 
the conclusion no. 12/27 February 
2017 of the Romanian Court of 
Accounts, rejecting the objection 
raised by ELSA against Decision no. 
12, regarding the faults and orders 
mentioned above. In subsidiary, 
the extension of the deadlines 
for carrying out all the measures 
ordered by ELSA through Decision 
no. 12/27 December 2016 with at 
least 12 months; the suspension of 
the enforceability of Decision no. 12 
until final settlement of the present 
dispute.

High Court 
of Cassation 
and Justice

Plaintiff: EL SERV
Defendant: 
Romanian 
Court of 
Accounts

2098/2/2017

Litigations with the Romanian Court 
of Accounts for the annulment of 
the administrative act – Decision no. 
11/27 February 2017.

AppealHigh 
Court of 
Cassation 
and Justice

1

2

On 06.07.2023, the Court partially 
admitted the request formulated 
by ELSA and partially annulled 
Conclusion no. 12 / 27.02.2017 and 
Decision no. 12 / 27.12.2016, issued 
by the Romanian Court of Accounts, 
regarding the deviations from point 
1, point 2, point 3, point 4 point 5 
partially, for rent exceeding the 
period 17.07.2013-01.09.2013, point 6, 
point 7 and regarding the correlative 
measures, the measure from point 
II.7 being maintained for the rent 
related to the period 17.07.2013-
01.09.2013. Rejects as unfounded 
the application end regarding the 
extension of the implementation 
deadlines. It notes that the applicant 
has reserved the right to claim 
separately the costs incurred in the 
case. Both parties filed a recourse, in 
course of settlement. 

On 31.07.2023, the Court admits 
the request in part: rejects the 
exception of illegality as unfounded 
and admits in part the annulment 
action as specified. Partially 
annuls conclusion no. 11/27.02.2017, 
decision no. 13/27.12.2016 and control 
report no. 9.100 – 15.553/05.12.2016, 
respectively with regard to the 
measures provided for in points I.3, 
II.7 and II.8. Rejects the annulment 
action as unfounded. Obliges the 
defendant to pay the plaintiff the 
sum of RON 24,801.175 as court costs, 
according to the provisions of art. 
453 para. 2 Civil Code. An appeal 
was filed – filter proceedings.

Crt.
no.

Parties/
Case file 
number

3

Plaintiff: DEER
Defendant: 
Romanian 
Court of 
Accounts 
Intervenient: 
SERV

1677/105/2017

Source: Electrica

Object

Court

Case status

Suspension and annulment of the 
measures imposed by the Decision 
of Prahova Court of Accounts no. 
45/2016, following the Control Report 
of the Prahova Court of Accounts no. 
6618/11 November 2016.

Ploiesti 
Court of 
Appeal

Dismisses the application. A 
recourse was filed. Preliminary 
proceedings.

A.1.5   Other litigations with significant impact

Crt.

Parties/Case 

no.

file number

Object

Court

Case status

Plaintiff: DEER
Defendant: Local 
Council of Oradea 
City, RCS&RDS

1

3340/111/2015

Cancellation of Oradea LCD no. 
108/17 February 2014 regarding the 
organization of the public auction 
for the concession of the 100,000 
sqm land area, in order to realize 
an underground sewerage for 
the placement of electronic and 
electrical communications networks.

Bihor Court 

At the request of RCS-RDS, the case 
was suspended until the case file 
2414/2/2016 was settled with Delalina 
SRL, a file that is in the role of the 
Bucharest Court of Appeal. The file no. 
2414/2/2016 was definitively solved 
on 22.03.2021, without a request for 
reinstatement being formulated, 
following to be ascertained by the 
court the expiration of the request, 
DEER no longer having an interest in 
supporting the request for summons. 
The Bihor Court found the expiration 
of the request for summons on 
28.03.2023, the solution being final.

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Crt.

Parties/Case 

no.

file number

Object

Court

Case status

Crt.

Parties/Case 

no.

file number

Object

Court

Case status

Plaintiff: Carei City 
and others
Defendant: DEER

2

15600/211/2016*

Claims - it is requested to grant 
compensation in the form of 
material and moral damages, 
caused, by interrupting the supply of 
electricity to the consumers, in the 
Carei municipality, during 31.12.2014-
02.01.2015.

Cluj 
Specialized 
Court

On 21.04.2021, the court rejects the 
action of a plaintiff as a result of 
admitting the exception of lack of 
capacity to use, rejects the exception 
of lack of active procedural quality 
of plaintiffs, invoked by defendants, 
rejects the exception of lack of 
passive procedural quality of 
defendant DEER, rejects the exception 
of lack of procedural quality liabilities 
of the defendant Electrica Furnizare 
SA and admits in part the action in 
contradiction with the defendant 
ELECTRICA FURNIZARE SA. Dismisses 
as unfounded the request for formal 
proceedings by the applicants in the 
preceding paragraph in contradiction 
with DEER. Obliges the defendant 
ELECTRICA FURNIZARE S.A., to pay 
the moral damages in favor of the 
plaintiffs in a differentiated way, in 
the amount of RON 500 for some 
of the plaintiffs, RON 750 and RON 
1,000 for other plaintiffs, rejecting at 
the same time the moral damages 
for other plaintiffs. Appeal filed by 
Electrica Furnizare. In appeal, the 
court rejects, as unfounded, the main 
appeal declared by the appellant 
Electrica Furnizare SA and rejects, 
as unfounded, the incidental appeal 
declared by the respondents TN, and 
MC. Recourse definitively dismissed. 
Definitely settled at 20.01.2023

(i) ELSA’s compliance with the 
obligation of not to do regarding 
the share capital and the AoA of the 
EDB and the termination of abusive 
actions consisting of the requests 
addressed to the ONRC to change 
the structure of the share capital 
and the articles of association of 
the EDB by increasing the share 
capital with the value of the land 
in the Certificates of attestation of 
the property right held by ELSA on 
the land used by EDB in order to 
carry out the activity; (ii) Stating 
the fact that Electrica does not 
hold the quality of public authority 
involved in the privatization process 
and, consequently, acknowledging 
the absence of the right of ELSA 
to request ONRC to modify the 
constitutive act of the EDB by 
increasing the share capital with 
the value of the land owned by 
ELSA based on CADP on the used 
land from EDB; (iii) As against to 
the abusive actions taken in the 
EDB’s opinion, ELSA’s obligation to 
pay the damages whose existence 
and amount will be proved by the 
deadline provided by law.

Bucharest 
Court of 
Appeal

Case dismissed on merits; appeal 
definitively dismissed by the court on 
07.03.2023.

Action for the annulment of 
Shareholders resolution 5/06.12.2018 
(share capital increase for SAPE).

Timisoara 
Court of 
Appeal

Case dismissed on merits; an appeal 
was filed by ELSA and SAPE, definitively 
dismissed. At this case was connected 
the case no. 988/30/2019.

Review against the decision 
573/29.11.2013, pronounced by the 
Court of Appeal Timisoara in file no. 
949/30/2019.

High Court 
of Cassation 
and Justice

In course of settlement.

3

4

5

Plaintiff: 
E-Distributie 
Banat
Defendant: ELSA

12857/3/2019

Plaintiff: ELSA, 
SAPE
Defendant: 
E-Distributie 
Banat

949/39/2019

Plaintiff: ELSA, 
Defendant: SAPE, 
Retele Electrice 
Banat (former
 E-Distributie 
Banat), Ministry of 
Energy

2981/1/2023

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Crt.

Parties/Case 

no.

file number

Object

Court

Case status

Crt.

Parties/Case 

no.

file number

Object

Court

Case status

Plaintiff: Grup 4 
Instalatii
Defendant: DEER  

9

375/1285/2021

The obligation of DEER to recognize, 
to respect the property right 
of G4Installatii regarding the 
buildings located in Cluj Napoca, 
28A, Ilie Macelaru Street and 2, 
Uzinei Electrice Street, registered 
in land book 297841 Cluj Napoca 
with no. 297841, consisting of 
land with an area of 10720 sqm 
and constructions: construction 
registered in land book with 
no. 297841-C1, construction of 
administrative headquarters with 
an area of 1560 sqm; body A, 
construction no. 297841- C2 - 512 
sqm, building B, construction no. 
297841 - C3 - 171 sqm, building 
C, construction no. 297841 - C4 - 
338 sqm, building D, construction 
no. 297841-C6 - 348 sqm - 110/10 
Kw Transformation Station. It is 
requested the handing over of the 
above buildings and the rectification 
of the land book registrations in 
the sense of: the annulment of the 
tabulation conclusions by which the 
DEER property right was registered, 
the deregistration of the land book 
property right, the registration of the 
property right in favor of G4I.

High Court 
of Cassation 
and 
JusticeCluj 
Court of 
Appeal

The court admits the exception of the 
material incompetence of the Cluj 
Specialized Tribunal, an exception 
invoked ex officio and consequently 
declines the competence to resolve 
the request for summons in favor of 
the Cluj Tribunal-Civil Section. Case 
admitted in part. An appeal was filed, 
dismissed by the court. A recourse 
was filed, in course of settlement. 
With recourse within 30 days of it’s 
communication.

Plaintiff: ELSA
Defendant: UAT 
Bicaz

6

91/188/2020

1.obliging the defendant to leave us 
in full ownership and possession of 
the land in the area of 10,524 sqm 
(from documents 22,265 sqm), 
located in Bicaz, Neamt county.

2. rectification of the entries from 
the land book no. 52954 of Bicaz 
City, in the sense of elimination of 
inappropriate entries made in it, 
in order to agree on the tabular 
status with the real legal situation 
of the building, respectively the 
cancellation of the property right 
of the tabular owner Bicaz City and 
the registration of the property right 
of Societatea Energetice Electrice 
Electrica S.A.

3. Order the defendant to pay the 
court costs.

Bacau Court 
of Appeal

The court of first instance partially 
annuls the Decision of the Local 
Council of Bicaz no. 94/25.08.2016, 
respectively regarding the surface 
of 10,524 sqm of urban land 3, Bicaz, 
Energiei street (former Plant), located 
at the last position of the table in 
the Annex to HCL no. 94/25.08.2016, 
following the admission of the 
exception of illegality, invoked by the 
plaintiff. Dismisses the action brought 
by ELSA as unfounded. Admits in part 
the action in the rectification of the 
land book. It orders the rectification 
of the Land Book no. 52954 of the 
City of Bicaz, regarding the land 
with an area of 10,524 sqm, located 
in Bicaz, 3, Energiei street, Neamt 
County (former Uzinei), in the sense 
of deleting the property right of the 
defendant Bicaz city, as a result of 
the partial annulment of HCL no. 
94/25.08.2016, regarding this land. 
Rejects as unfounded the applicant’s 
request to order the rectification of 
the Land Book no. 52954 of the City 
of Bicaz, regarding the land with an 
area of 10,524 sqm, located in Bicaz, 3, 
Energiei street, Neamt County (former 
Uzinei), in the sense of registering the 
ELSA property right over the above 
mentioned land. ELSA filed an appeal, 
dismissed by the court. The decision 
was appealed, the recourse being 
definitively dismissed on 09.01.2023.

Plaintiff: DEER
Defendant: ANARC 
(ANCOM) and 
Telekom Romania 
Communications 
SA 

7407/2/2020

Appeal against Decision no. 1177 / 
13.11.2020 of the ANARC President. 
It was requested the partial 
annulment of the ANCOM decision 
and the complete rejection of the 
Telekom Romania request.

Bucharest 
Court of 
Appeal

Action dismissed on the merits. 
With appeal within 15 days from 
communication.

Plaintiff: Valenii de 
Munte City Hall
Defendant: DEER

2848/105/2020

Valenii de Munte City Hall requests 
the obligation of DEER (Ploiesti) to 
take over public lighting installations 
and to pay their equivalent value of 
RON 466,880.

Ploiesti 
Court of 
Appeal

Action dismissed on the merits. The 
recourse is accepted, the sentence is 
quashed and the case is sent to the 
Prahova Court for retrial.

7

8

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Crt.

Parties/Case 

no.

file number

Object

Court

Case status

Crt.

Parties/Case 

no.

file number

Object

Court

Case status

Plaintiff: ELSA
Defendant: 
Kaufland Romania 
SCS, Deva City, 
through the 
Mayor and Deva 
City Council 

156/221/2021*

1. obliging the defendants to leave 
us in full ownership and possession 
of the land surfaces that overlap 
with the ELSA land located in Deva 
municipality, 1, Dorobanti street, 
Hunedoara county, as follows: 
(a) Kaufland Romania SCS - land 
areas of 15 sqm and 50 sqm (part 
of the Kaufland Deva parking lot), 
identified by IE 68452, which overlap 
to the N-W with the land owned 
by Electrica; (b) Deva Municipality, 
through the Mayor and the Local 
Council of Deva Municipality - 
land areas: (i) 2 sqm (part of the 
“Playground for children”), identified 
by IE 71851, which overlaps to the NE 
with the land in the ownership of 
Electrica and (ii) of 23 sqm (part of 
“Calea Zarandului”), identified by IE 
75973, which overlaps to the SW with 
the land owned by Electrica; 

2. the delimitation of the above-
mentioned properties, by 
establishing the boundary line 
according to the property deeds of 
the parties; 

3. rectification of the entries in the 
land book regarding the above-
mentioned land areas, in the sense 
of eliminating the inappropriate 
entries made, in order to reconcile 
the tabular status with the real 
legal situation of the real estate, 
respectively of the cancellation of 
the property right tabular owners 
and the registration of the property 
right of the applicant ELSA over 
these land areas.

Hunedoara 
Tribunal

Action admitted in part. ELSA filed an 
appeal – in course of settlement by 
Civil Section I of Hunedoara Tribunal 
(following the settlement of the lack of 
material competence of the court).

Creditor: Eurototal 
Comp SRL
Debtor: DEER  

1221/1285/2022

Insolvency – RON 1,255,000

Cluj Court of 
Appeal

The amount has been entirely paid 
on 3 January 2023 and the creditor 
waived the trail of the insolvency 
request, subsequently filing a 
recourse. Void recourse. Final.

Plaintiff: Sinan 
Mustafa
Defendant: DEER 
SA

10249/211/2023

Action for contractual liability. 
Requests the payment of the 
amount of RON 144,978.69 
representing the bonus not granted 
at the end of the mandate contract, 
and the related legal penalty 
interest.

Court Cluj-
Napoca

In course of settlement.

10

11

12

13

Plaintiff: Nine 
Alexandru
Defendant: DEER 
SA

1777/62/2023

Claims - Requests the payment 
of the amount of 84,925 euro 
(419,002.96 RON) representing, 
damages revocation of mandate 
contract,

Brasov Court

In course of settlement.

Creditor: Eurototal 
Comp SRL
Debtor: DEER  

14

724/1285/2023

Insolvency : 209.335,28 RON 

Cluj 
Commercial 
Court

The creditor waived the trail of the 
insolvency request. On 11.01.2024, the 
Court takes note of the renunciation 
of the creditor EUROTOTAL COMP 
S.R.L., on judging the request to open 
insolvency proceedings against DEER. 
It states that the appeal filed by the 
debtor DEER has remained without 
object. Take note of the parties’ 
manifestation of will to waive the 
appeal. Definitive.

Plaintiff: ELSA
Defendant: DEER

1697/242/2019

15

•  Obliging the defendant to leave us 
in full ownership and possession 
of the land area of 7,695 square 
meters, located in the place. 
Somesul Rece, Gilau commune, 
Cluj county, registered in CF no. 
52997 – Gilau Commune (old land 
registry no. 561/Somesul Rece); 

•  - rectification of entries in the 
land registry, in the sense of 
suppressing inappropriate entries 
made in it, registered under 
no. 34516/21.05.2017, to agree 
the tabular status with the real 
legal situation of the immovable 
property, namely the deletion of 
the ownership right of the SDEE 
TN tabular owner over the land 
surface and the registration of the 
ownership right of the claimant 
ELSA over this land surface.  

Litigation value: RON 93,226.62.

Huedin 
Court

In course of settlement.

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no.

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Object

Court

Case status

Crt.

Parties/Case 

no.

file number

Object

Court

Case status

1. Obliging the defendants to leave 
us in full ownership and possession 
of the land area of 2,339 square 
meters, located in the town of Dej, 
str. Avram Iancu no. 20, Cluj county, 
registered in land register no. 52907 
– Dej, Cadastre and Real Estate 
Office Cluj (old Land Registry no. 
19335), no. topo. 938a) Defendant 
DERR:

- mainly, the land area of 1700.92 sq 
m, the area registered in the Land 
Register no. 52907 – Dej, OCPI Cluj;

- in the alternative, the land area 
of 1,452.12 square meters, in the 
situation where «the transfer of 
ownership» of the land area of 248.8 
square meters by this defendant to 
the defendant EFSA will be proven;

b) Defendant (F.I.S.E.) ELECTRICA 
SERV S.A. - land area of 638 sq m;

c) Defendant EFSA - land area of 
248.8 square meters;

2. Rectification of the entries in the 
land register regarding the land 
registered in land register 52907 
– Dej, Office of Cadastre and Real 
Estate Cluj (old Land Register no. 
19335), no. topo 938, in the sense of 
suppressing inappropriate entries 
made within it, registered under no. 
33747/2006, in order to reconcile 
the tabular status with the real legal 
situation of the immovable property, 
respectively of the deletion of the 
property right of the DEER tabular 
owners under the name under which 
it was entered in the Land Register) 
and F.I.S.E. ELECTRICA SERV S.A. on the 
land area of 2,339 square meters, 
located in the town of Dej, str. Avram 
Iancu no. 20, Cluj county and the 
registration of the property right of 
the claimant ELSA over this area of 
land.

Litigation value: RON 329,875.

1. obliging the defendant to leave 
us in full ownership and possession 
of the land area of 46.99 square 
meters, located in Romani, Romanii 
de Jos village, Schitului str., no. 2A, 
Valcea county», which constitutes 
an undivided part of the total area
of 93.98 sqm (94 sqm registered), 
registered in the land register no.

Plaintiff: ELSA
Defendant: DEER, 
EFSA, FISE

16

4658/117/2019

Plaintiff: ELSA
Defendant: Gidazi 
Prod Com
Hidroelectrica S.A.

17

3450/241/2019

Cluj Court

Case dismissed on merits. Appel 
filed by ELSA, dismissed by the court. 
With recourse within 30 days of 
communication.

Valcea 
Tribunal

On the merits, the court partially 
admitted the summons and ordered 
the partial cancellation of the asset 
sale purchase contract authenticated 
under no. 335/29.07.2016 by BNP 
Berevoianu Radu Costin, regarding 
the area of 94 square meters from 
measurements, intra-village land with 
cadastral number 36276

36276 – Horezu (old CF no. 1190);

2. rectification of entries in the 
land register regarding the land 
registered in land register no. 36276 
– Horezu (old CF no. 1190), in the 
sense of suppressing inappropriate 
entries made within it, registered 
under no. 41348/04.08.2016, to 
reconcile the tabular status with the 
real legal situation of the immovable 
property, respectively the deletion 
of the property right of the tabular 
owner GIDAZI PROD COM SRL;

3. (supplementary request) 
ascertaining the partial absolute 
nullity of the sale-purchase 
contract authenticated under no. 
335/29.07.2016 by BNP Berevoianu 
Radu Costin, regarding the sale of 
the land area of 46.99 sqm.

Litigation value: RON 1,715.53.

1. forcing the defendant to leave us 
in full ownership and possession 
of the land with an area of 20.50 
square meters which is an integral 
part of the land with an area of 
348 square meters identified with 
no. Cadastral 2177, registered in CF 
no. 39932 of the city of Targu Jiu, 
Jud. Gorj, land located in Targu Jiu, 
General Gheorghe Magheru str., Gorj 
county. 2. Rectification of CF

Litigation value: RON 12,767.

Request for penalties for not 
preparing the CADP documentation 
regarding the land in Ghelari 
for which ELSA obtained a court 
decision.

Horezu (old cadastral number 1298). 
Orders the deletion of the property 
right registered in the name of the 
defendant GIDAZI PROD COM SRL from 
the Land Register no. 36276 Horezu, 
on the land building with an area of 
94 square meters. Reject the rest of 
the request. ELSA and Hidroelectrica 
filed an appeal, On appeal, the court 
orders the partial cancellation of the 
sale-purchase contract authenticated 
under no. 335/29.07.2016 regarding 
the area of 46.99 square meters, 
mentioned in the Certificate of 
attestation of the right of ownership 
over the lands series M03 no. 
11429/26.04.2010. Order the deletion 
from the land register no. 36276 
Horezu of the property right registered 
in the name of the defendant GIDAZI 
PRODCOM SRL regarding the area of 
46.99 square meters, mentioned in the 
Certificate of attestation of the right 
of ownership over the lands series 
M03 no. 11429/26.04.2010. Maintain 
the rest of the appealed sentence. 
With recourse within 30 days of 
communication.

Targu Jiu 
Court

Suspended, until the resolution of the 
exception of illegality which is the 
subject of file 14904/318/2023.

Timisoara 
Court

In course of settlement

Complaint against the director 
of the Trade Registry - regarding 
the rejection of the request for 
correction of an error regarding the 
shareholding.

Timis 
Tribunal

Preliminary proceedings.

18

19

20

Plaintiff: ELSA
Defendant: 
Romanian State 
– Ministry of 
Finance

9439/318/2021

Plaintiff: ELSA
Defendant: 
E-Distributie 
Banat

27688/325/2023

Plaintiff: Retele 
Electrice Banat
Defendant: 
National Trade 
Registry - Timis 
Trage Registry
Main intervenient: 
ELSA

6209/30/2023

2023 DIRECTORS’ REPORTAPPENDIX 1 – LITIGATIONS2023 DIRECTORS’ REPORTELECTRICA S.AAPPENDIX 1 – LITIGATIONSELECTRICA S.A2023 ANNUAL REPORT2023 ANNUAL REPORT266

267

Crt.

Parties/Case 

no.

file number

Object

Court

Case status

Appendix 2 – Details of the main investments of Electrica 
Group during 2023

Between 1 January 2023 and 31 December 2023, the most significant investments made by the Group are as 

21

22

23

24

Plaintiff: FISE
Defendant: 
E-Distributie 
Muntenia
Intervenient: ELSA

2275/93/2021

Plaintiff: ELSA
Defendant: 
Romanian State, 
represented 
by the Ministry 
of Transport, 
Insfrastructure 
and Telecon, by 
CNAIR, Craiova 
Local Council – 
Comission for 
applying Law 
255/2010

3411/63/2023

Plaintiff: ELSA
Defendant: 
E-Distributie 
Dobrogea

17971/212/2023

Plaintiff: ELSA
Defendant: 
E-Distributie 
Banat

22327/325/2023

Source: Electrica

Tancabesti land diassembly 

Ilfov 
Tribunal

Amicably resolved.

follows: 

1. Partial annulment of the Decision 
establishing compensations no. 
3 of 02.11.2022, adopted by the 
Craiova Local Council - Commission 
for the application of Law no. 
255/2010, regarding the amount 
established as compensation for 
the expropriated land area of 169 
sqm, located in Teilor Street no. 
160, no. cadastral / land register 
216717 (currently transcribed in CFE 
248543 UAT Craiova); 2. Obliging 
the defendant, the Romanian 
State, represented by the Ministry 
of Transport and Infrastructure, 
through CNAIR, to pay to the 
underwriter the real value of the 
entire land area of 174 square 
meters expropriated in reality, 
composed of: (i) the land area of 
169 square meters which makes 
object of Annex no. 2 at H.G. no. 
327/2021, position no. 35 and of 
the expropriation decision no. 
942/28.05.2021, position 35 and (ii) 
the land area of 5 square meters, de 
facto expropriated, with which the 
Romanian State registered in the 
land register (no. 248543 Craiova), 
in addition to the area that is the 
subject of the expropriation decision 
no. 942/28.05.2021.

Dolj Tribunal

In course of settlement.

Obliging EDD to draw up the 
documentation for the certificate of 
ownership and hand it over to ELSA.

Constanta 
Court

In course of settlement.

Obliging EDB to draw up the 
documentation for the certificate of 
ownership and hand it over to ELSA.

Timisoara 
Court

In course of settlement.

DESCRIPTION

Value
 (RON mn.) 

MUNTENIA NORD

Modernization and integration in SCADA of 110/20 kV Potlogi Substation

Modernization of secondary substations fed from UGC 20kV Blocks 1, Blocks 2, IPL, Trainica 1, Trainica 
2, Pucioasa city, Dambovita County

Modernization of the 110 kV Hipodrom Substation, replacement of power transformers Trafo 1 
(110/20/6kV) & Trafo 2 (110/6kV)

Implementation of an integrated resource planning system-Workforce Management (WFM)
WFM - IT tool for planning and monitoring in the field the resources (humans, vehicles, devices, 
materials, equipment) involved in business processes: operation, maintenance, investment works 
with own construction teams, network access, measurement.

Voltage level improvement in localities Baldana, Tartasesti, Gulia, Commune Tartasesti, Dambovita 
County

Modernization of LV OHL and connections – meters in the area of PTA 3161, PTA 3251, PTA 3320, Iazu 
locality, Cojasca Commune, Dambovita County

Modernization and integration in SCADA of 110/20 kV Zatna Substation, Braila County

Modernization of network and connections Homocea, Vrancea County

Modernization and consolidation of the hardware infrastructure and software of the SAP system 
[SAP-DEER] 2022_batch1 - OBJECT 2+OBJECT 1

Modernization and integration in SCADA of 110/20 kV Buzau Sud Substation

Modernization of distribution network in village Lunca Pripor, Nehoiu City, Buzau County

Network switching over from 6 kV to20 kV, Floresti locality

Improving technical conditions of supply for consumers in locality Plopeni

SDEE Ploiesti network modernization, for blocks of flats in Ploiesti Nord neighbourhood, Prahova 
County - STAGE II

7.97

7.39

7.39

7.09

6.54

6.40

5.51

5.43

5.40

5.02

4.61

4.37

4.36

3.95

2023 DIRECTORS’ REPORTAPPENDIX 2 – MAIN INVESTMENTS DURING 2023ELECTRICA S.A2023 ANNUAL REPORT2023 DIRECTORS’ REPORTAPPENDIX 1 – LITIGATIONSELECTRICA S.A2023 ANNUAL REPORT 
268

269

DESCRIPTION

Value
 (RON mn.) 

DESCRIPTION

Value
 (RON mn.) 

MUNTENIA NORD

Modernization and integration in SCADA of 110/20 kV Potlogi Substation

Modernization of secondary substations fed from UGC 20kV Blocks 1, Blocks 2, IPL, Trainica 1, Trainica 
2, Pucioasa city, Dambovita County

Modernization of the 110 kV Hipodrom Substation, replacement of power transformers Trafo 1 
(110/20/6kV) & Trafo 2 (110/6kV)

Implementation of an integrated resource planning system-Workforce Management (WFM)
WFM - IT tool for planning and monitoring in the field the resources (humans, vehicles, devices, 
materials, equipment) involved in business processes: operation, maintenance, investment works 
with own construction teams, network access, measurement.

Voltage level improvement in localities Baldana, Tartasesti, Gulia, Commune Tartasesti, Dambovita 
County

Modernization of LV OHL and connections – meters in the area of PTA 3161, PTA 3251, PTA 3320, Iazu 
locality, Cojasca Commune, Dambovita County

Modernization and integration in SCADA of 110/20 kV Zatna Substation, Braila County

Modernization of network and connections Homocea, Vrancea County

Modernization and consolidation of the hardware infrastructure and software of the SAP system 
[SAP-DEER] 2022_batch1 - OBJECT 2+OBJECT 1

Modernization and integration in SCADA of 110/20 kV Buzau Sud Substation

Modernization of distribution network in village Lunca Pripor, Nehoiu City, Buzau County

Network switching over from 6 kV to20 kV, Floresti locality

Improving technical conditions of supply for consumers in locality Plopeni

SDEE Ploiesti network modernization, for blocks of flats in Ploiesti Nord neighbourhood, Prahova 
County - STAGE II

Modernization of seondary Substations PTZ in Gaestisti: PTZ 5016 Blocuri Gaesti, PTZ 5031 Blocuri 
Gaesti, PTZ 5185 Blocuri Gaesti, PTZ 5136 CTA Gaesti, PTZ 6128 IGO Titu, PTZ 5103 Fca de Gheata, 
PTAB 5211 13 Decembrie, PA 5002 PTTR, PTZ 514 F-ca de paine 6, PTZ 5127 F-ca de Branza si US 5230 
Mogosani

Network modernization in CA Rosetti Commune,Buzau County, villages: Cotu Ciorii sand Balteni - vol 
1; Lunca - vol 2; Balhacu, CA Rosetti and Vizireni- vol 3

ELA ENERGY network reinforcement 

Improving technical conditions of supply and the voltage level for consumers in Fulga Commune, 
Prahova County

7.97

7.39

7.39

7.09

6.54

6.40

5.51

5.43

5.40

5.02

4.61

4.37

4.36

3.95

3.84

3.80

3.74

3.54

Modernization of the central heating boiler of the Galati branch headquarters - headquarters str. 
Nicolae Balcescu no. 35A, Galati Municipality

Implementation of Intelligent Energy Metering Systems (SMI) 2023 SR Buzau mun Buzau -27369 pcs

Modernization of 20/6 kV Ploiesti Vest Substation, integration in SCADA system and grounding 
compensation with BSRC (adjustable arc suppression coil), Prahova County

Voltage level improvement for consumers in Odobesti Commune, Dambovita County, localities: 
Ziduri, Crovu, Brancoveanu and Miulesti

Modernization of the 110 kV Substations: Filesti, SNG, Tecuci, Ionasesti - replacement of 110/6kV 
power transformers - 4 pcs

Improving technical conditions of supply and the voltage level for consumers in Salciile village, 
Prahova County

Network modernization in Tataru and Maicanesti localities, Maicanesti Commune, Vrancea County

Voltage level improvement and modernization of LV OHL and connections for consumers from the 
area of PTA 3038 & PTA 3128 Varnita area, Prahova County

Improving technical conditions of supply for consumers in Rizanesti area, Valenii de Munte City

Modernization of OHL 20kV by replacing insulation and conductors (OHL 20kV Urleasca - SR 
Ramnicelu, OHL 20kV Lacu Sarat - SRPD 1-4, OHL 20kV Romanu - T. Vladimirescu and OHL 20 kV 
Gropeni - Tichilesti)

Modernization of Plopeni 20/6 kV substation; mounting neutral point treatment 6 kV

Network modernization in area of PTA 5776 no.1 and PTA 5778 CIA, Sendreni locality, Galati County

Voltage level improvement & modernization of secondary substations (PT) and OHL in PTA 1104 
Ciorani+PTA 1067 Cioranii de Jos area, Ciorani Commune, Prahova County

Improving technical conditions of supply and the voltage level for consumers supplied with 
electricity from PTA 3023 Palanca, Palanca village, Rafov Commune, Prahova County

Achievement of smart distribution network in a homogeneous area of consumers from Tiglina 1, 
Tiglina 2, Tiglina 3 - Micro 16, Tiglina 4 neighborhoods in Galati Municipality, Galati County

Modernization of 0.4 kV distribution network in Munteni locality, areas supplied by PTA1, PTA2, PTA3 
Munteni, Galati County

Modernization of 0.4 kV distribution network in Zidari neighbourhood, Rm Sarat Municipality, Buzau 
County 

Modernization of LV OHL and power injection in PTA 1,2,3 and 4 Zavoaia, Zavoaia locality, Braila 
County

3.34

3.25

3.19

3.06

2.99

2.93

2.80

2.76

2.67

2.56

2.52

2.40

2.37

2.35

2.33

2.11

2.11

2.05

2023 DIRECTORS’ REPORTAPPENDIX 2 – MAIN INVESTMENTS DURING 20232023 DIRECTORS’ REPORTELECTRICA S.AAPPENDIX 2 – MAIN INVESTMENTS DURING 2023ELECTRICA S.A2023 ANNUAL REPORT2023 ANNUAL REPORT 
270

271

DESCRIPTION

Value
 (RON mn.) 

DESCRIPTION

Value
 (RON mn.) 

Modernization of LV OHL and connections, Fantanele locality, Cojasca Commune, Dambovita 
County

SMI (Smart metering systems) Targoviste Branch

Modernization of 20/6 kV Slanic Substation and neutral point treatment, Prahova County

Modernization of 0.4 kV OHL and connections for consumers in Movila Miresii locality

Installation of grounding compensation with BSRC (adjustable arc suppression coil) in 20/6 kV 
Columbia Substation

Increasing the power supply reliability of consumers from Radu Negru and Buzaului neighbourhood, 
Braila Municipality

Voltage level improvement for users in PT6156, 6061, 6060,6129.6222,6062 area Racari locality, 
Dambovita County 

Voltage level improvement for users in Cranguri locality, Dambovita County 

SMI (Smart metering systems) Muntenia Nord area

SMI (Smart metering systems) Focsani Branch

TRANSILVANIA SUD

Modernization and consolidation of the hardware and software of the SAP system [SAP-DEER] 
Batch1 

Implementation of an integrated resource planning system - Workforce Management

Modernization of the 20 kV UGC in the area of the 220/110/20 kV Alba Iulia Substation, Alba Iulia 
Municipality, Alba County

Modernization of 20 kV network in the area of Bulevardul Revolutiei 1989, Alba Iulia Municipality, Alba 
County

Modernization of 20 kV network in the area of Piata Iuliu maniu, Alba Iulia Municipality, Alba County

Modernization of 20 kV network in Lipoveni neighbourhood, Alba Iulia Municipality, Alba County

Modernization of 20 kV network in Maieri neighbourhood, Alba Iulia Municipality, Alba County

Modernization of distribution network, Bran locality- Stage 2, PT4 area, Brasov County

Modernization of distribution network, Bran locality- Stage 3, PA1, PT5, PT7 area, Bran area, Brasov 
County

Increasing the power supply reliability 6kV and 20 kV busbars in 110/20/6 kV Brasov Centru 
Substation, Brasov County

2.02

1.98

1.95

1.95

1.94

1.80

1.61

1.60

1.59

1.57

2.63

2.20

3.64

4.60

3.13

3.23

5.23

4.30

7.77

1.53

Increasing the power supply reliability 6kV and 20 kV busbars in 110/20/6 kV Bartolomeu Substation, 
Brasov County

Increasing the power supply reliability for 20 kV OHL Prejmer-Ozun, Covasna County

Increasing the power supply reliability for 20 kV OHL Bixad locality, Covasna County

Modernization of 20/0.4 kV Secondary Substations, Ludus city, Mures County

Back-up supply of 20 kV busbars - Sanpaul Substation, Mures County

Modernization of the 20 kV UGC in the area COR MV-LV Tg Mures, by replacing the 20 kV cables on 
the Bulevard and Tudor 4 - Platou Cornesti lines, Tg Mures Municipality, Mures County

Modernization of internal services of (AC) and (DC) in the Substations managed by SDEE TS – 
Substations Cugir, Teius, Lupsa, Sebes

Modernization of internal services of (AC) and (DC) in the Substations managed by SDEE TS – 
Substations Bartolomeu, Ghimbav, Harman, Hoghiz, Prejmer

Modernization of internal services of (AC) and (DC) in the Substations managed by SDEE TS – 
Substations Cic, Tarnaveni, Mureseni, Reghin, Raciu

Modernization of internal services of (AC) and (DC) in the Substations managed by SDEE TS – 
Substations Aeroport, Aurel Vlaicu, Cartisoara, Orlat, Dumbrava

Modernization of 0.4 kV OHL in the central area of Reghin Municipality, area PT 14, 55/15, 71, 65, Mures 
County

Modernization of 0.4 kW network and connections, Gheorghe Doja Street (Piata Victoriei-Piata garii 
section) and Piatra de Moara, Targu Mures city, Mures County

Modernization of 0.4 kV network and connections streets Budiului, Bega(partia) & Mestecanisului 
(partial), Targu Mures City, Mures County

Modernization of 0.4 kW network in Hipodrom 1,2,3 area, Sibiu Municipality, Sibiu County

Modernization of 0.4 kV network in Dumbraveni locality, Sibiu County

Modernization of 0.4 kV network in Richis village, Biertan Commune, Sibiu County

Modernization of 0.4 kV network in Dealu Frumos village, Merghindeal Commune, Sibiu County

Modernization of 0.4 kV network in Mosna Commune, Sibiu County

Voltage level improvement and modernization of LV OHL, Carpinis locality, Garbova Commune, Alba 
County

Modernization of 0.4 kV network and securing connections, Dumbrava Rosie str., Miraslau, Rovine, 
Valea Alba, loc. Brasov, Brasov County

1.53

3.85

3.32

5.81

1.63

2.02

2.15

1.42

1.67

1.53

1.53

2.17

1.71

3.42

11.55

1.90

1.54

3.37

2.05

2.46

2023 DIRECTORS’ REPORTAPPENDIX 2 – MAIN INVESTMENTS DURING 20232023 DIRECTORS’ REPORTELECTRICA S.AAPPENDIX 2 – MAIN INVESTMENTS DURING 2023ELECTRICA S.A2023 ANNUAL REPORT2023 ANNUAL REPORT 
272

273

DESCRIPTION

Value
 (RON mn.) 

DESCRIPTION

Value
 (RON mn.) 

Increasing the power supply reliability & modernization of 20 kV, 0.4 kV UGC, Racadau, Brasov 
County

Voltage level improvement and network modernization in the area of PT5 Bod & PT1 Bod, Commune 
Bod, Brasov County

Modernization of LV network in Odorheiu Secuiesc locality, Rakoczi Ferencz street, Harghita County

Voltage level improvement and modernization of 0.4 kV OHL and connections, Cetatuia locality, 
Harghita County

Voltage level improvement and modernization of 20 kV OHL, 0.4 kV OHL and connections in 
Singeorgiu de Mures and Cotus localities, Mures County, Volume I- Cotus and Tofalau villages

Modernization of 0.4 kV network and connections, Cuza Voda, Tusnad, and Cardinal Iuliu Hossu 
streets, Targu Mures Municipality, Mures County

Voltage level improvement and modernization of 0.4 kV OHL and connections, Batos locality, Mures 
County

Voltage level improvement and modernization of MV & LV network in Miercurea Sibiului area, Sibiu 
CountySibiului, jud. Sibiu

Network extension in Alba Iulia city, streets: Viadana, Mogos, Sadu and Apuseni, Alba County

Network extension in Vama Buzaului village, Dalghias point, Brasov County

Increasing the capacity of 20 kV network in Drumul Poienii – Schei area, Brasov city, Brasov County

Reinforcement works -power increasing, Campu Frumos Industrial Park, Covasna County

Site release works for the achievement of the objective “Rehabilitation of the infrastructure of the 
major urban public transport network in the Municipality of Alba Iulia - Batch 1

Site release works for the achievement of the objective “Rehabilitation of the infrastructure of the 
major urban public transport network in the Municipality of Alba Iulia - Batch 2

Modernization of distribution network in Sacele Municipality by switching from OHL (MV&LV) to UGC 
(MV&LV), replacing existing UGC with paper insulation by UGC with reticular polyethylene insulation 
(XLPE), restoring connections and meters relocation (Stage 1)

Modernization of LV network by switching from 0.4 kV OHL to 0.4 kV UGC, modernization and 
securing connections in streets Fabricii, Tigaretei, Tutunului and Salciilor, Sf. Gheorghe Municipality, 
Covasna County

Release of site for d Modernization of County Road DJ106B:A1 Ocna Sibiului Loamnes-Sorostin-Tapu

TRANSILVANIA NORD

Modernization and consolidation of the hardware infrastructure and software of the SAP system 
[SAP-DEER] Batch 1

7.09

9.99

2.25

2.80

1.38

2.64

2.16

7.29

2.94

1.71

4.03

1.95

2.21

2.48

2.03

1.86

1.94

2.63

Modernization of switching equipment related to MV OHL for the Cluj-Napoca Distribution Branch, 
Cluj County

Modernization of pole mounted substations, SDEE TN- Distribution Branch Cluj Napoca, Cluj County, 
Vol2 - area of network operation center Gherla

Modernization of MV OHL Juc Geaca between R Gadalin and R Geaca

Network modernization in Cluj-Napoca Municipality, Mihail Kogalniceanu Street and adjacent 
streets area, Cluj County,

Closure of the 20 kV loop between Jucu-Valcele and Jucu Geaca, construction of PTAb 20/0.4 kV - 
250 kVA and power injection in Caian Vama

Increasing reliability of power supply in Floresti locality, Cluj County – Vol. 5 Modernization of the 
Distributor Abator and construction of Distributors Cimitir & Poligon

 Systematization of distributor exits from the 110/20/10 KV Campului Substation and modernization 
of distributors Manastur 9, Manastur 10 and UAC Cartier Manstur, Cluj-Napoca Municipality, Cluj 
County

Increasing electricity supply reliability in Floresti locality, Cluj County – Vol. 6 Modernization Iazuri 
Distributor 

Extension of the distribution network in Valea Ierii Commune, Composesoratul Muntele Baisorii area 
- Requested by Valea Ierii City Hall

Modernization of 20 KV OHL Beius - Budureasa

Modernization of LV OHL and power injection in Serghis locality, Bihor County

Modernization of MV UGC in the area Nufarul and Rogerius Neighbourhood, Oradea

Improvement of the electricity distribution service in 110/20kV CET 2 Oradea Substation

Construction of MV UGC to increase the electricity supply reliability in Matei Corvin area, Oradea 
Municipality, Bihor County

Modernization of LV OHL, branches reconstruction - PTA2, Sinteu locality, Bihor County

Modernization of 20 KV OHL Salonta-Avicola Cefa, Bihor County

Switch to 20kV of metal cabin secondary substations in Baia Mare town-20 PTs

Modernization of LV networks, Baia Mare town, historical center area, stage 2

Increase in distribution capacity and modernization of the Pietrosul Substation

Installation of photovoltaic panel systems to cover the electricity own consumption of the 
administrative offices and Substations in Maramures County, belonging to DEER SA - Baia Mare 
Branch

2.73

1.41

2.70

1.42

1.57

1.86

2.55

2.05

1.27

1.90

1.77

1.53

3.33

6.23

1.79

2.38

4.85

2.12

7.38

1.29

2023 DIRECTORS’ REPORTAPPENDIX 2 – MAIN INVESTMENTS DURING 20232023 DIRECTORS’ REPORTELECTRICA S.AAPPENDIX 2 – MAIN INVESTMENTS DURING 2023ELECTRICA S.A2023 ANNUAL REPORT2023 ANNUAL REPORT 
274

275

DESCRIPTION

Value
 (RON mn.) 

commissioning of investments, are the following:

During 2023, the largest transfers from tangible assets in progress to tangible assets, representing mainly 

Modernization and switchover to 20 kV of PTZ 7 and PTA 64, Sighetu Marmatiei, Maramures County

Switchover to 20 kV PTM no. 13,42,52,53 Sighetu Marmatiei town

Modernization of OHL 20 KV Craidorolt, Satu Mare County

Increasing electricity supply reliability of OHL 20 kV Halmeu- feeder Turt, Satu Mare County

Modernization MV OHL Axis Lechinta Teaca, BN

Power injection Zalau, Ortelec - Cimitirului Street, Salaj County

Modernization of SCADA equipment and communications in PA/PTs Zalau

Modernization of 0.4 kV OHL Faget

Modernization of S-axis 20KV Almas

Source: Electrica

2.77

1.77

1.68

3.36

1.84

1.36

1.26

1.52

1.32

DESCRIPTION

Value
 (RON mn.) 

MUNTENIA NORD

Modernization of LV OHL and connections – meters in the area of PTA 3161, PTA3 251, PTA 3320, Iazu 
locality, Cojasca Commune, Dambovita County

Achievement of smart distribution network in a homogeneous area of consumers from Tiglina 1, 
Tiglina 2, Tiglina 3 - Micro 16, Tiglina 4 neighbourhoods in Galati Municipality, Galati County

Voltage level improvement in localities Baldana, Tartasesti, Gulia, Commune Tartasesti, Dambovita 
County

Implementation of an integrated resource planning system - Workforce Management (WFM)
 WFM - IT tool for planning and monitoring in the field the resources (humans, vehicles, devices, 
materials, equipment) involved in business processes: operation, maintenance, investment works 
with own construction teams, network access, easurement. 

Modernization and integration in SCADA of 110/20 kV Potlogi Substation

Network modernization in Lunca Pripor village, Buzau County

Modernization and integration in SCADA of 110/20 kV Zatna Substation, Braila County

Modernization and integration in SCADA of 110/20/6 kV Buzau Est Substation

Network modernization in CA Rosetti Commune, Buzau County, villages: Cotu Ciorii sand Balteni - 
vol 1; Lunca - vol 2; Balhacu, CA Rosetti and Vizireni- vol 3

Improving technical conditions of supply and the voltage level for consumers in Fulga Commune, 
Prahova County

Modernization and consolidation of the hardware infrastructure and software of the SAP system 
[SAP-DEER] 2022_batch1 - OBJECT 2+OBJECT 1

Voltage level improvement for consumers in Odobesti Commune, Dambovita County, localities: 
Ziduri, Crovu, Brancoveanu and Miulesti

Network switchover from 6 kV to20 kV, Floresti locality

Modernization of 20/6 kV Ploiesti Vest Substation, integration in SCADA system and grounding 
compensation with BSRC (adjustable arc suppression coil), Prahova County

Network modernization in Tataru and Maicanesti localities, Maicanesti Commune, Vrancea County

Modernization of the 110 kV Substations: Filesti, SNG, Tecuci, Ionasesti - replacement of 110/6kV 
power transformers - 4 pcs

Modernization of OHL 20kV by replacing insulation and conductors (OHL 20kV Urleasca - SR 
Ramnicelu, OHL 20kV Lacu Sarat - SRPD 1-4, OHL 20kV Romanu - T. Vladimirescu and OHL 20 kV 
Gropeni - Tichilesti)

Modernization of network and connections Homocea, Vrancea County

Voltage level improvement and modernization of LV OHL and connections for consumers from the 
area of PTA 3038 & PTA 3128 Varnita area, Prahova County

7.78

7.10

7.08

7.07

5.55

4.68

4.21

4.00

3.79

3.70

3.69

3.38

3.36

3.15

3.12

3.10

3.00

2.95

2.86

2023 DIRECTORS’ REPORTAPPENDIX 2 – MAIN INVESTMENTS DURING 20232023 DIRECTORS’ REPORTELECTRICA S.AAPPENDIX 2 – MAIN INVESTMENTS DURING 2023ELECTRICA S.A2023 ANNUAL REPORT2023 ANNUAL REPORT 
276

277

DESCRIPTION

Value
 (RON mn.) 

DESCRIPTION

Value
 (RON mn.) 

Improving technical conditions of supply for consumers in Rizanesti area, Valenii de Munte City

Improving technical conditions of supply and the voltage level for consumers supplied with 
electricity from PTA 3023 Palanca, Palanca village, Rafov Commune, Prahova County

Replacement of neutral point treatment in 110/20 kV Vanatori and Liesti Substations

Network modernization in area of PTA 5776 no.1 and PTA 5778 CIA, Sendreni locality, Galati County

Voltage level improvement & modernization of secondary substations (PT) and OHL in PTA 1104 
Ciorani+PTA 1067 Cioranii de Jos area, Ciorani Commune, Prahova County

Modernization of the 110 kV Hipodrom Substation, replacement of power transformers Trafo 1 
(110/20/6kV) & Trafo 2 (110/6kV)

Modernization of 0.4kV OHL and consumer connections from the Movila Miresii locality

Modernization of 0.4 kV distribution network in Zidari neighbourhood, RM Sarat Municipality, Buzau 
County 

Modernization of secondary substations fed from UGC 20kV Blocks 1, Blocks 2, IPL, Trainica 1, Trainica 
2, Pucioasa city, Dambovita County

Modernization of Plopeni 20/6 kV Subtation; mounting neutral point treatment 6 kV

Modernization of the 20/6kV Grup Scolar Sinaia Substation

Achievement of technical conditions for coexistence with the existing electrical networks necessary 
to obtain the site approval for the Galati ring-road, between Braimii lei street (DN25) and Calea 
Prutului Street (E87), Galati Municipality

Voltage level improvement for users in PT 6156, 6061, 6060,6129.6222,6062 area Racari locality, 
Dambovita County 

Increasing the power supply reliability of 20 kV OHL Zahar II and 20 kV Tartasesti Derivation, 110/20 
kV Mavrodin Substation

SDEE Ploiesti network modernization, for blocks of flats in Ploiesti Nord neighbourhood, Prahova 
County - STAGE II

Modernization of 0.4 kV distribution network in Munteni locality, the areas supplied by PTA1, 
PTA2, PTA3 Munteni, Galati County

Modernization of network and connections Sihlea locality, Sihlea Commune, Vrancea County

 TRANSILVANIA SUD

Modernization of 0.4 kW network in Hipodrom 1,2,3 area, Sibiu Municipality, Sibiu County

Modernization of the 20 kV UGC in the area of the 220/110/20 kV Alba Iulia Substation, Alba Iulia 
Municipality, Alba County

Modernization of 20 kV network in the area of Bulevardul Revolutiei 1989, Alba Iulia 
Municipality, Alba County

Modernization of 20 kV network in the area of Piata Iuliu Maniu, Alba Iulia Municipality, Alba 
County

Modernization of 20 kV network in Lipoveni neighbourhood, Alba Iulia Municipality, Alba County

2.81

2.76

2.75

2.59

2.49

2.48

2.46

2.19

2.13

2.10

2.00

1.85

1.84

1.79

1.76

1.69

1.50

4.06

4.12

4.79

3.24

3.43

Modernization of 20 kV network in Lipoveni neighbourhood, Alba Iulia Municipality, Alba County

Back-up supply of 20 kV busbars - Sanpaul Substation, Mures County

Modernization of internal services of (AC) and (DC) in the Substations managed by SDEE TS – 
Substations Cugir, Teius, Lupsa, Sebes

Modernization of internal services of (AC) and (DC) in the Substations managed by SDEE TS – 
Substations Sf. Gheorghe, Campu Frumos, Covasna, Capeni

Modernization of internal services of (AC) and (DC) in the Substations managed by SDEE TS – 
Substations Cic, Tarnaveni, Mureseni, Reghin, Raciu

Modernization of LV OHL and connection, Hodac locality, Mures County

Modernization of 0.4 kV network and connections streets Budiului, Bega (partial) & 
Mestecanisului (partial), Targu Mures City, Mures County

Modernization of 0.4 kV network in Dealu Frumos village, Merghindeal Commune, Sibiu County

Voltage level improving and modernization of 20 kV OHL, 0.4 kV OHL and connections in 
Singeorgiu de Mures and Cotus localities, Mures County, Volume I- Cotus and Tofalau villages

Implementation of an integrated resource planning system - Workforce Management

Modernization of distribution network, Bran locality- Stage 2, PT4 area, Brasov County

Modernization of distribution network, Bran locality- Stage 2, PT4 area, Brasov County

Increasing the power supply reliability for 20 kV OHL Prejmer-Ozun, Covasna County

Increasing the power supply reliability for 20 kV OHL Bixad locality, Covasna County

Modernization of 20/0.4 kV secondary Substations, Ludus city, Mures County

Modernization of the 20 kV UGC in the area COR MV-LV Tg Mures, by replacing the 20 kV cables on 
the Bulevard and Tudor 4 -Platou Cornesti lines, Tg Mures Municipality, Mures County

Modernization of internal services of (AC) and (DC in the Substations managed by SDEE TS – 
Substations St. Bartolomeu, Ghimbav, Harman, Hoghiz, Prejmer

Modernization of internal services of (AC) and (DC) in the Substations managed by SDEE TS – 
Substations Aeroport, Aurel Vlaicu, Cartisoara, Orlat, Dumbrava

Decentralization of MV OHL, LV OHL conductor replacement, modernization of connections, Daisoara 
locality, Brasov County

Modernization of 0.4 kW network and connections, Gheorghe Doja Street (Piata Victoriei-Piata garii 
section) and Piatra de Moara, Targu Mures city, Mures County

Modernization of 0.4 kV network in Dumbraveni locality, Sibiu County

Modernization of 0.4 kV network in Richis village, Biertan Commune, Sibiu County

Modernization of 0.4 kV network in Mosna Commune, Sibiu County

Modernization of 0.4 kV network in Merghindeal Commune, Sibiu County

5.38

3.79

2.60

1.65

1.73

2.47

1.73

2.21

2.06

2.20

4.28

2.68

3.96

3.42

5.83

2.03

1.59

1.59

2.83

2.18

10.00

2.29

4.00

1.94

2023 DIRECTORS’ REPORTAPPENDIX 2 – MAIN INVESTMENTS DURING 20232023 DIRECTORS’ REPORTELECTRICA S.AAPPENDIX 2 – MAIN INVESTMENTS DURING 2023ELECTRICA S.A2023 ANNUAL REPORT2023 ANNUAL REPORT 
278

279

DESCRIPTION

Value
 (RON mn.) 

DESCRIPTION

Value
 (RON mn.) 

Voltage level improvement and modernization of LV OHL, Carpinis locality, Garbova Commune, Alba 
County

Modernization of 0.4 kV network and securing connections, Dumbrava Rosie str., Miraslau, Rovine, 
Valea Alba, loc. Brasov, Brasov County

Increasing the power supply reliability and modernization of 20 kV, 0.4 kV UGC, Racadau, Brasov 
County

Voltage level improvement and network modernization in the area of PT5 Bod & PT1 Bod, Commune 
Bod, Brasov County

Modernization of LV network in Odorheiu Secuiesc locality, Rakoczi Ferencz street, Harghita County

Voltage level improvement and modernization of 0.4 kV OHL and connections, Cetatuia locality, 
Harghita County

Modernization of 0.4 kV network and connections, Cuza Voda, Tusnad and Cardinal Iuliu Hossu 
streets, Targu Mures Municipality, Mures CountyMures, jud. Mures

Voltage level improvement and modernization of 0.4 kV OHL and connections, Batos locality, Mures 
County

Voltage level improvement and modernization of MV & LV network in Miercurea Sibiului area, Sibiu 
County

Network extension in Alba Iulia city, streets: Viadana, Mogos, Sadu and Apuseni, Alba County

Network extension in Vama Buzaului village, Dalghias point, Brasov County

Increasing the capacity of 20 kV network in Drumul Poienii – Schei area, Brasov city, Brasov County

Reinforcement works -power increasing, Campu Frumos Industrial Park, Covasna County

Site release works for the achievement of the objective “Rehabilitation of the infrastructure of the 
major urban public transport network in the Municipality of Alba Iulia - Batch 1

Site release works for the achievement of the objective “Rehabilitation of the infrastructure of the 
major urban public transport network in the Municipality of Alba Iulia - Batch 2

Modernization of LV network by switchover from 0.4 kV OHL to 0.4 kV UGC, connections 
modernization and securing in streets Fabricii, Tigaretei, Tutunului and Salciilor, Sf. Gheorghe 
Municipality, Covasna County

Release of site for Modernization DJ106B:A1 Ocna Sibiului Loamnes-Sorostin-Tapu

 TRANSILVANIA NORD

Security Operations Center (SOC) implementation and standardization of Security Technologies 
used

Modernization of switching equipment related to MV OHL for the Cluj-Napoca Distribution Branch, 
Cluj County

Modernization of pole mounted substations, SDEE TN- Distribution Branch Cluj Napoca, Cluj County, 
Vol2 - area of network operation center Gherla

Modernization of MV OHL Juc Geaca between R Gadalin and R Geaca

1.98

2.59

6.36

8.21

2.36

2.45

3.14

1.69

4.60

2.82

1.85

4.55

1.95

2.05

2.42

1.54

1.93

1.62

2.84

1.56

3.00

Modernization of Substations PTz CT1, PTz CT8 and UGC 20 kV between PTz CT1, PTZ CT8, Dej city, Cluj 
County

Network modernization in Cluj-Napoca Municipality, Mihail Kogalniceanu Street and adjacent 
streets area, Cluj County,

Modernization of the existing MV &LV UGC a on streets Dragalina and Mamaia in Cluj-Napoca 
Municipality

Closure of the 20 kV loop between Jucu-Valcele and Jucu Geaca, construction of PTAb 20/0.4 kV - 
250 kVA and power injection in Caian Vama

Increasing reliability of power supply in Floresti town, Cluj County – Vol. 5 Modernization of the 
Distributor Abator and construction of Distributors Cimitir & Poligon

 Systematization of distributor exits from the 110/20/10 KV Campului Substation and modernization 
of distributors Manastur 9, Manastur 10 and UAC Cartier Manstur, Cluj-Napoca Municipality, Cluj 
County

Network modernization on B-dul 1 Decembrie 1918, Cluj-Napoca Municipality, Cluj County - Stage 1- 
The section between PTAB Hotel Napoca and G. Muzicescu street

Modernization of pole mounted secondary Substations - Oradea Branch

Network modernization in Sacadat locality

Modernization of LV OHL and power injection in Serghis locality, Bihor County

Increasing the power supply reliability in Stana de Vale, Coada Lacului area

Modernization of MV UGC in the area Nufarul and Rogerius Neighbourhoods, Oradea

Construction of UGC between OHL 20 kV vadu Crisului – Bauxita Cornet and Suncuius-Recea to 
increase power supply reliability

Improvement of the electricity distribution service in 110/20kV CET 2 Oradea Substation

Construction of MV UGC to increase power supply reliability in Matei Corvin area, Oradea 
Municipality, Bihor County

Power injection in Lorau locality, Bihor County

Modernization of LV OHL, branches reconstruction - PTA2, Sinteu locality, Bihor County

Modernization of 20 KV OHL Salonta-Avicola Cefa, Bihor County

Switchover to 20kV the metal cabin secondary substations in Baia Mare locality -20 pcs

Modernization of LV networks, Baia Mare town, historical center area, stage 2

Installation of photovoltaic panel systems to cover the electricity own consumption of the 
administrative offices and Substations in Maramures County, belonging to DEER SA - Baia Mare 
Branch

Modernization and switchover to 20 kV of PTZ 7 and PTA 64, Sighetu Marmatiei, Maramures County

Extension of public distribution network in Grosii Tiblesului, Valea Tiblesului (Bradului) area, 
Maramures County

Modernization of OHL 20 KV Craidorolt, Satu Mare County

1.28

2.67

2.05

1.62

3.55

2.59

1.28

1.27

1.60

1.50

2.13

1.51

1.76

3.48

6.90

1.86

1.85

5.26

4.87

3.81

1.40

2.83

1.29

1.81

2023 DIRECTORS’ REPORTAPPENDIX 2 – MAIN INVESTMENTS DURING 20232023 DIRECTORS’ REPORTELECTRICA S.AAPPENDIX 2 – MAIN INVESTMENTS DURING 2023ELECTRICA S.A2023 ANNUAL REPORT2023 ANNUAL REPORT 
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281

DESCRIPTION

Value
 (RON mn.) 

Appendix 3 – Applicable regulatory framework

Increasing power supply reliability of OHL 20 kV Halmeu- feeder Turt, Satu Mare County

Modernization of secondary substations PTA Reteag Poieni, PTA Reteag Moara, modernization of 
connection Reteag Poieni and LV OHL and connections in PTA in Reteag Poieni, PTA Reteag Sat, PTA 
Reteag SMA and Reteag Moara, area, Reteag locality, Bistrita Nasaud County

Secondary substation modernizaton and power transformers replacement in Bistrita Branch, Bistita 
Nasaud County

Modernization and relocation of pole mounted transformer PTA Negrilesti, PTA Negrilesti 2, PTA 
Negrilesti 3 and modernization of LV OHL and connections in area of   PTA Negrilesti, PTA Negrilesti 2, 
PTA Negrilesti 3, PTA Negrilesti 4, Negrilesti locality, Satu Mare County

Modernization MV OHL Axis Lechinta Teaca, BN

Power injection Zalau, Ortelec - Cimitirului str., Salaj County

Modernization of 0.4 kV OHL Faget

Source: Electrica

3.62

1.50

1.32

2.43

2.00

1.40

1.52

A.3.1 - Applicable legal framework compared to 2023 vs 2022:

A.3.1.1   Distribution activity

2022

2023

Distribution activity

Distribution activity 

ANRE  has issued documents for the regulatory framework 
that requires additional efforts from distribution operators 
in order to comply with the new requirements:

ANRE has issued documents for the regulatory framework 
that requires additional efforts from distribution operators 
in order to comply with the new requirements:

Regulations regarding tariffs:

Regulations regarding tariffs:

•  The distribution rates approved for the year 2022 were 
approved by ANRE Order no. 119/24 November 2021, the 
regional average tariffs for DEER having the following 
increases compared to the tariffs of 2021: MN +8.1%; TN 
+10.4%; TS +7.4% - in force from 1 January 2022

•  As a result of GEO 27/2022, the distribution tariffs for the 
year 2022 were modified starting on 1 April 2022 to cover 
the additional costs related to the NL from the year 
2021. By ANRE Order no. 28/23 March 2022, the regional 
average tariffs for DEER were approved, with the 
following increases compared to the tariffs of 2021: MN 
+24%; TN +17%; TS +20%. This tariff increase will allow the 
recovery of the amount of RON 363 mn. (RON 353 mn. 
recognized 2021 NL loss to which inflation was applied) 
representing the difference between the effective 
average purchase cost of energy for own technological 
consumption (NL) and the ex-ante price established 
by ANRE related to the year 2021 in the period 1 April 
2022-31 December 2022, which will favorably impact 
the net result related to the distribution segment in the 
remaining period of 2022. 

•  ANRE decision no. 610/2022 regarding the approval of 
the model for the publication of costs regarding the 
operation, maintenance and development of electric 
transmission and distribution networks - in force from 
1 May 2022. 
OD will publish quarterly on their own internet 
webpages, both the realized and the budgeted costs.

•  The distribution rates approved starting with 1st of 

April 2023 were approved by ANRE Order no. 27/2023, 
the regional average tariffs for DEER having the 
following increases compared to the tariffs from 1st of 
April 2022: MN +26.1%, TN +21.5%, TS +10.9%; - effective 
from 1st of April 2023.

•  The specific tariffs applicable starting from 1st of April 
2023 are composed of the main component and a 
component related to additional costs with NL, the latter 
was not subject to the 7% limitations imposed for tariff 
increases, being recognized as a distinct component 
of tariffs related to capitalized costs recognized with 
additional NL for the year 2022, amortized over a 
period of 5 years from the date of capitalization and 
remunerated with 50% of the regulated rate of return 
approved by ANRE, according to GEO no. 119/2022.

•  ANRE Order no. 1/2023 for the modification and 

completion of some orders of the ANRE - effective from 
January 17, 2023

•  The methodology for establishing distribution tariffs 

- is modified and provides for the granting of the RRR 
incentive of 2% for investments from EU funds only if 
they have not benefited from the PCI incentive

•  The project was developed as a result of ANRE’s 

obligation to present to ACER, by January 24, 2023, 
the methodology and criteria used to evaluate 
investments, in the sense of alignment with 
Regulation (EU) 2022/869:

•  energy infrastructure projects and high risk 

assessment

•  the specific risks to which offshore networks for 
energy from renewable sources are exposed

2023 DIRECTORS’ REPORTAPPENDIX 3 – APPLICABLE REGULATORY FRAMEWORKELECTRICA S.A2023 ANNUAL REPORT2023 DIRECTORS’ REPORTAPPENDIX 2 – MAIN INVESTMENTS DURING 2023ELECTRICA S.A2023 ANNUAL REPORT282

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2023

•  ANRE order no. 129/2022 for the approval of the 

Methodological Norms for the recognition in tariffs 
of additional costs with the purchase of electricity to 
cover own technological consumption compared to 
the costs included in the regulated tariffs - in force 
from 19 October 2022

•  ANRE order no. 67/2023 approving the tariff for the 
purchase of system services for the transport and 
system operator Compania Nationala de Transport 
al Energei Electrice „Transelectrica” - S.A. - effective 
from June 1, 2023 
Decrease compared to January 1, 2023 tariffs by 14.1%

•  the quarterly capitalization of the additional costs 

with NL compared to the costs included in the 
regulated tariffs,

•  the capital costs related to the year 2022 are 

recognized in a distinct component related to the 
additional cost with NL applicable starting on 1 April 
2023, outside the 7% limitations imposed for tariff 
increases.

•  the recognized NL price for 2022 will be equal to the 
reference price calculated as an average among 
network operators, increased by 5%

•  the additional cost with NL capitalized in 2023 will be 
included in the separate NL component applicable in 
the year 2024

•  MF order no. 3900/2022 regarding the approval of 

the Accounting Specifications in application of the 
provisions of art. III of the Government Emergency 
Ordinance no. 119/2022 - in force from 20 October 2022

Capitalized amounts are recorded in accounting 
through accounting item 208 „Other intangible assets”/
distinct analytical account = 721 „Income from the 
production of intangible assets”, as follows: 

•  on 30 September 2022, for the amounts 

corresponding to the period 1 January 2022 – 30 
September 2022;

•  on 31 December 2022, for the amounts 

corresponding to the period 1 October 2022 – 31 
December 2022;

•  on 31 March 2023, for the amounts corresponding 

to the period 1 January 2023 – 31 March 2023;

•  on 30 June 2023, for the amounts corresponding 

to the period 1 April 2023 – 30 June 2023;

•  on 31 August 2023, for the amounts corresponding 

to the period 1 July 2023 – 31 August 2023;

•  The amortization of the amounts corresponding to 

the recognized assets is recorded in the accounting 
starting with the 1st of the month following each of 
the periods.

•  Draft Decision on the approval of the principles for 
establishing binomial tariffs for the distribution 
service provided by concessionary electricity 
distribution operators - public consultation

•  ODCs have the obligation:

•  to simulate the application of binomial tariffs for 
the period 1 January 2022 - 31 December 2022;

•  to publish on its own websites, within 60 days, 

information regarding the implementation project 
of binomial tariffs from 01.01.2024;

•  ANRE order no. 79/2023 regarding the modification and 
completion of the Methodology for establishing tariffs 
for the electricity distribution service, approved by 
ANRE Order no. 169/2018 - effective from July 10, 2023

•  The changes take into account the definition of the 

year 2024 as a transition period from RP4 to RP5 and 
the establishment of the target income for the year 
2024 according to the Methodological Norms that 
complete the Methodology (Annex 1^1)

•  For DEER, in 2024: single regulated revenue, zonal 
distribution tariffs, single NL targets on total DEER.

•  For all DOs:

•  The 2024 NL target is established using the 
reduction gradient 2023 compared to 2022 
applied to 2023

•  The 2024 NL reference price is calculated as a 
weighted average considering 75% the price 
approved by MACEE and 25% the DAM price in May 
2023.

•  The regulated rate of return for 2024 remains at 

6.39%

•  The inflation rate used to calculate the 2024 tariffs 
is equal to 4.6% (forecasted by CNP for the year 
2024).

•  The inflation corrections related to RP4 will be 

calculated in 2024 and will be added to the target 
income of 2025

•  ANRE Order no. 82/2023 regarding the modification 

and completion of ANRE orders - effective from August 
15, 2023

•  Energy technical norm regarding the determination 
of own technological consumption in public interest 
electric networks - NTE 013/16/00, approved by ANRE 
Order no. 26/2016

•  it is stipulated that the determination of the 
quotas assigned to the producers and the 
transport operator from the amount of NL related 
to the additional transit of electricity from the 110 
kV electrical networks, should be carried out by 
the DO

•  The methodology for establishing tariffs for the 

electricity distribution service, approved by ANRE 
Order no. 169/2018

•  DO recovers from the TSO the counter value of the 
amount of NL related to the additional transit of 
electricity, for the quotas assigned to producers 
and TSOs.

•  to notify consumers in order to declare/update 

the contracted power and inform them about the 
operator maintaining the power at the approved 
level for a limited period of three years, if it is not 
used;

•  to make available to network users and their 

suppliers, upon request, the data necessary for the 
calculation of the bill based on the binomial rate, 
for the entire period of the simulation.

•  to ensure the adaptation of IT systems to the new 

pricing system by 31.12.2023;

•  the monitoring data of the simulation of the 

application of the binomial tariff for the electricity 
distribution service are transmitted to ANRE by the 
ODC until 15 February 2023.

•  the amount of NL related to the additional transit 
of electricity from the 110 kV electrical networks, 
determined according to ANRE regulations, is 
taken into account in the annual correction of the 
regulated NL at the request of the operator, by 
reducing the amount of NL realized.

•  the revenues recorded from the recovery from 

the TSO of the counter value of the amount of NL 
related to the additional transit of electricity from 
the 110 kV electrical networks are not taken into 
account when determining the corrections of the 
regulated income.

•  ANRE Order no. 104/2023 regarding the modification 

and completion of the Methodological Norms 
regarding the recognition in tariffs of the additional 
costs with the purchase of electricity to cover NL 
compared to the costs included in the regulated 
tariffs, approved by ANRE Order no. 129/2022 – effective 
from December 1, 2023

•  Introduction of provisions regarding the method of 
determining additional costs with NL for the period 
September 1, 2023 – March 31, 2025, respectively:

•  the introduction of the obligation to transmit 
by DO/TSO the forecasts of the quantities of 
electricity in the balance sheet, broken down by 
quarters;

•  the cost with NL for quarter 1 2023 is calculated as 
the product of the price and quantity of NL quarter 
1 2023, used to calculate the rates April 1, 2023;

•  the cost with NL for quarters 2-4 of 2023 included 

in the tariffs, is calculated as the difference 
between the cost with NL 2023 used in the tariffs 
on April 1, 2023 and the cost with NL quarter 1 2023

•  realized costs recognized ex-ante, based on 

the costs realized in the first 3 quarters and the 
estimated costs for the 4th quarter (determined 
on the basis of the quantity and price of NL 
included in the tariffs)

•  recalculation of capital costs as a result of the 

adjustment of additional capitalized costs due to:

a)  the final closing of each year (differences 

resulting from the recalculation of additional 
capitalized costs due to differences resulting 
from NL quantity or price);

b)  the differences between the inflations used to 
determine the capital costs included annually 
in the component and the actually realized 
inflations (adjustment of depreciation and 
profitability as a result of the use of forecasted 
inflation rates different from those actually 
realized, which are carried out in the year 
following the publication of the inflations 
realized by to the competent institutions).

2023 DIRECTORS’ REPORTAPPENDIX 3 – APPLICABLE REGULATORY FRAMEWORK2023 DIRECTORS’ REPORTELECTRICA S.AAPPENDIX 3 – APPLICABLE REGULATORY FRAMEWORKELECTRICA S.A2023 ANNUAL REPORT2023 ANNUAL REPORT284

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2022

2023

c)  the inflation correction related to NL costs 

included in the regulated tariffs according to 
the Methodology for setting tariffs, which leads 
to the adjustment of the capitalized NL value).

•  The differences in capital costs mentioned in points 
a), b) and c above will be included in the related 
component of the additional costs with NL from the 
tariffs of the following year(s).

•  Completing/amending some existing provisions 

regarding:

•  the transmission by October 31 of each year of the 
values achieved for the first 3 quarters of each 
yeathe transmission of the annual values of the 
current year, broken down by quarters, until the 
deadline of February 15 of the following year

•  ANRE transmits to TSO/DSO the recognized annual 
values of capitalized costs for the previous year 
until March 15 of the year following the year of 
capitalization of additional costs.

•  the method of recognizing capital costs so 

that they are applicable for the entire period 
September 1, 2023 - March 31, 2025.

•  ANRE order no. 109/2023 approving the average 

tariff for the electricity transmission service, the 
components of the transmission tariff for introducing 
electricity into networks (T_G) and extracting 
electricity from networks (T_L) and the regulated 
price for reactive electricity , practiced by the National 
Electric Energy Transport Company “Transelectrica” 
- S.A. and ANRE Order no. 116/2023 approving the 
tariff for the purchase of system services for the 
transport and system operator Compania Nationala 
de Transport al Energei Electrice “Transelectrica” - S.A 
- effective from January 1, 2024  
With the following deviations compared to the tariffs 
from April 1, 2023: T_L: 1%. T_G: -5.4%, respectively 
compared to June 1, 2023: T_S +38.1%

•  The electricity distribution service tariffs for the year 
2024 were approved by ANRE Order no. 115/2023, the 
average tariffs for DEER having the following increases 
compared to the tariffs from April 1, 2023:: MN +7.6%, 
TN +5.8%, TS +6.9%; - effective from January 1, 2024.

•  MF Order no. 5378/2023 regarding the approval of 

some accounting clarifications in application of the 
provisions of art. III paragraph (1) from Government 
Emergency Ordinance no. 119/2022 for the amendment 
and completion of the Government Emergency 
Ordinance no. 27/2022 regarding the measures 
applicable to final customers in the electricity and 
natural gas market in the period April 1, 2022-March 31, 
2023, as well as for the modification and completion of 
some normative acts in the field of energy - effective 
from December 20, 2023.

•  Correlation of the period of application of GEO 
27/2022: Amounts capitalized according to art. 
III paragraph (1) from GEO no. 119/2022 for the 
amendment and completion of the GEO no. 
27/2022 regarding the measures applicable to final 
customers in the electricity and natural gas market 
during the period April 1, 2022-March 31, 2023, as 
well as for the modification and completion of some 
normative acts in the field of energy, with subsequent 
additions, are recorded in the accounting through 
the accounting article 208 «Other intangible assets»/
distinct analytical = 721 «Income from the production 
of intangible assets», as follows:

f)  on December 31, 2023, for the amounts 

corresponding to the period September 1, 
2023-December 31, 2023;

g) quarterly, on the last day of each quarter, for 

the corresponding amounts, during the period 
January 1, 2024-March 31, 2025.

Investment Procedure

Investment Procedure

•  ANRE order no. 98/2022 - for the approval of the 

•  ANRE Order no. 1/2023 for the modification and 

Procedure regarding the substantiation and approval 
of the development and investment plans of the 
transport and system operator and of the electricity 
distribution operators - in force from 12 July 2022

•  The elaboration of the 10-year development plans 

of the investment plans for the period or annually is 
carried out on the basis of an internal OR procedure. 
The 2023-2033 plan is submitted to ANRE until 1 July 
2023. The 10-year development plan considers:

•  analyses regarding the evolution of production 
and consumption, evaluation of the need for 
vehicle recharging points, of the dispatchable 
consumption potential in the area;

•  studies regarding the digitization and integration 

of flexibility services required in RED in the 
medium and long term;

•  analysis of the measures and programs intended 

to ensure the cyber security of IT systems;

and includes:

•  estimated values regarding the impact of delays 

or non-realization of the investments contained in 
the previous edition of the development plan;

•  the stage of implementation of the new 

obligations regarding network digitization, 
flexibility services, integration of dispatchable 
consumption and distributed production from 
renewable sources;

•  presentation and argumentation of the way 

of correlation and compliance of the Plan with 
the medium and long-term Energy Strategy of 
Romania and with the National Plan regarding 
energy and climate Regulation (EU) 2018/1999;

completion of some orders of the ANRE - effective from 
January 17, 2023

•  Methodology for the evaluation of investments in 

projects of common interest (PCI) approved by ANRE 
Order no. 139/2015 is amended as follows:

•  expanding the scope of the Methodology for DO 

investments (in addition to TSOs)

•  granting a 1% RRR incentive for PCI

•  expanding the scope of the type of PCI from 
electric transmission networks to: a) electric 
transmission and distribution networks; b) offshore 
networks for energy from renewable sources; 
c) projects that integrate innovative technical 
solutions and which, although they have low 
capital costs, involve significant operating costs.

•  ANRE Order no. 6/2023 for the completion of the 

Procedure regarding the substantiation and approval 
of the investment plans of TSOs and DOs, approved 
by ANRE Order no. 98/2022 - effective from February 13, 
2023

•  provides for the submission by DO to ANRE of the 

Development Plan for the period 2024-2033, by 1st of 
July 2023

•  Modifications consider the recognition of DO 

investments in energy storage and production for 
control and NL:

•  the inclusion in the category of justifiable 

investments of energy production facilities from 
renewable sources for NL supply and control 
consumption in the station;

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•  The benefits pursued, in total and by voltage levels, 
will reduce the approved costs for each year of the 
regulatory period and for the entire period, according 
to the Tariff Methodology;

•  In the situation where the OR does not own or 
partially owns motor vehicles, the DSO has the 
right to request from ANRE the agreement for the 
establishment in the reference year of a regulatory 
period;

a)  The value of the investment plan from own 

sources must be equal to the minimum forecasted 
depreciation for the period, and not annually.

•  the inclusion of electricity storage facilities in the 

category of necessary investments;

•  the possibility for DO to own storage facilities, by 

way of exception from the provisions of the Energy 
Law (art. 46^1 par. (1)), only with prior approval by 
ANRE;

•  establishing the method of calculating the 

economic efficiency of investments in production/
storage, with a view to recognition by ANRE (Annex 
no. 8).

•  ANRE Order no. 80/2023 for the modification and 
completion of the Methodology for evaluating 
the financing conditions of investments for the 
electrification of localities or for the expansion of 
electricity distribution networks approved by ANRE 
Order no. 36/2019, with subsequent amendments and 
additions - effective from July 20, 2023

•  obligation for the DO to return to the public authority 
and/or the user/group of users, the financing quota 
paid by them and to take ownership of the network 
elements related to the returned quota, in the 
situation where the respective network is located in 
the urban area of the locality. The deadline for the 
refund of the financing quota is January 31 of the 
calendar year following the one in which the network 
was put into operation.

•  the ineffective share of the work of electrification/
extension of the electricity network, resulting from 
the recalculation based on the value without VAT 
from the minutes of reception of the commissioning, 
returned by the DO to the public authority and/or the 
user/group of users, is recognized in the regulated 
income of the DO of the year following the restitution, 
based on supporting documents regarding the 
amount and proof of the restitution.

•  for the electrification or expansion of electrical 
distribution network carried out through co-
financing, the deadline for the recalculation of the 
efficiency ratio of the works has been extended to 
30 days from the completion of the works and the 
signing of the acceptance minutes upon completion 
of the works and acceptance of the commissioning.

•  for the works carried out in the outskirts of the 
localities, the maximum term of 90 days was 
specified in which the DO and the co-financing 
participants, respectively the local authority and/
or the user/group of users pay the regularization 
amounts in correlation with the recalculated 
investment efficiency rate. 90 days before the 
expiration of the 5-year term from the network’s 
commissioning, ODC recalculates the investment 
efficiency rate resulting from the subsequent 
connection of other users and returns to the 
financing co-participants the difference between the 
co-financing rate that was due to them initially and 
the co-financing rate resulting from the efficiency 
recalculation. 

•  for the implementation of local electrification works/
network extension, in the case of co-financing, DO 
together with the public authority in its own name 
and/or as a representative of the users, as the case 
may be, or together with the user/group of users 
through an authorized representative tripartite 
contract for the execution of works with a certified 
economic operator, in compliance with the legal 
provisions in force.

•  The modifications and additions apply to the public 
authority/user/group of users who submitted an 
application for the development of the electrical 
distribution network for the electrification of the 
locality or for the expansion of the electrical 
distribution network, after the date of entry into force 
of Law no. 248/2022 regarding the approval of GEO 
no. 143/2021 for the amendment and completion 
of the Electricity and Natural Gas Law no. 123/2012, 
as well as for the modification of some normative 
acts, with subsequent modifications, respectively 
25.07.2022.

•  Draft Order for the approval of the Procedure 

regarding the approval of the investments of the 
transport and system operator and the distribution 
operators, which consist of electricity production 
installations from renewable energy sources located 
in their own electrical transformation stations - public 
debate

•  For the ANRE to approve an installation for the 

production of electricity from renewable sources in 
the premises of an own electrical transformation 
station, the following conditions must be met:

•  the electricity produced is consumed exclusively 

to supply the own consumption of the power 
station where the installation is located;

•  TSO/DSO includes technical measures for 

managing the energy produced, so that it cannot 
be discharged into the public network.

•  The ex-ante presentation of the cost-benefit analysis 
is required, as well as the analysis, every year after 
PIF, of the level of benefits achieved in relation to 
the costs included in the network tariffs. In the event 
that the realized benefits are lower than the realized 
capital and operational costs, the profitability related 
to the investment, recognized for the respective 
year, is reduced accordingly, so that the capital and 
operational costs related to the investment do not 
exceed the realized benefits.

b)  The approved investments are included in the 

investment plan of the TSO/DSO in the endowment 
category, derogation for the investments made 
in 2023 and approved are considered additional 
investments to the investment plan for the year 2023, 
in the endowment category and are reported until May 
31, 2024 in a table dedicated to this type of investment.

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Licenses and authorizations

Licenses and authorizations

Smart metering regulations (SM):

Smart metering regulations (SM):

•  ANRE order no. 24/2022 regarding the amendment 

of the Regulation for granting licenses and 
authorizations in the electricity sector, approved 
by ANRE Order no. 12/2015 – in force starting from 25 
March 2022

•  the removal of the legal ban on issuing a single 
license to the electricity market operator on the 
electricity market in Romania;

•  ANRE Decision no. 491/30.03.2022 regarding the 

granting of the License to the market operator of the 
Romanian Commodity Exchange (BRM) was published.

•  Draft order regarding the approval of the Regulation 
for the granting of licenses and authorizations in the 
electricity sector - public consultation - phase II

•  renaming the types of licenses granted by ANRE, in 
accordance with the provisions of art. 10 para. (2) 
from the Energy Law;

•  taking over within the regulation of all exceptional 
situations provided by law in which it is allowed to 
provide some services and activities in the field of 
electricity without the license issued by ANRE, in 
accordance with the provisions of art. 10 para. (4^2), 
para. (5), para. (6) and para. (6^2) from the Energy 
Law;

b)  the explicit specification of the situation regarding 
modification of the license for the commercial 
exploitation of the energy capacities by including in 
its contents some energy capacities over which the 
applicant can have a provisional exploitation right, 
until the date when the license holder obtains the 
definitive exploitation right, in the case of the transfer 
of the right of ownership/use of the respective energy 
capacities.

•  ANRE Order no. 66/2023 regarding the approval of the 
Regulation for the authorization of electricians in the 
field of electrical installations, respectively of project 
verifiers and quality technical and extrajudicial 
experts in the field of technological electrical 
installations - effective from May 1, 2023

•  the proof of the qualifications of an authorized 

electrician in the field of electrical installations, an 
authorized project verifier or a quality technical 
expert and authorized extrajudicial in the field of 
technological electrical installations will be achieved 
by the issuance by the competent authority of an 
authorization, a nominal and non-transferable 
document;

•  the method of submission of documents by 

applicants will be realized by uploading them on the 
ANRE portal or in the PCUe platform and eliminating 
the possibility of submitting them directly to the ANRE 
registry or by post;

•  modification of the procedure for organizing the 
examination for the authorization of electricians, 
respectively the interview for the authorization of 
project verifiers, as well as quality technical and 
extrajudicial experts in the field of technological 
electrical installations;

•  ANRE decision no. 1315/2022 amending the calendar 

for the implementation of smart electricity metering 
systems at the national level for the period 2019-2028 
approved by ANRE decision no. 778/2019 – effective 
from 3 August 2022 
ODCs have the obligation that within a maximum of 18 
months from the approval of the decision::

•  to update the cost-benefit analyzes for the 

implementation of intelligent electricity metering 
systems, taking into account the changes from the 
new European legislative package transposed into 
national legislation with an impact on the structure 
and level of costs and benefits involved in the 
process;

•  to re-evaluate the degree of implementation of the 

smart electricity metering systems in the concession 
areas and to submit to ANRE, if necessary, proposals 
to modify the implementation calendar of the smart 
electricity metering systems for the concession area, 
correlated with the results of cost-benefit analyses.

•  ANRE Order no. 13/2023 approving the contract - 
framework for the provision of electricity in the 
universal service regime, the general conditions for 
the provision of electricity in the universal service 
regime and the invoice model applicable to household 
customers - effective from April 1, 2023

Provisions regarding the SMI in the framework contract 
for universal service electricity supply framework – 

•  DO have the obligation to invoice monthly the 

distribution service to end customers with meters 
integrated in the SM based on the recorded data;

•  DO have the obligation to ensure the meter reading 

and to communicate monthly the measured data for 
customers who have meters integrated in the SMI in 
case the connection to the communication system is 
interrupted; 

•  for final customers who have meters integrated in SM, 

regularization invoices are not issued.

Technical regulations

a) Network connection

Technical regulations

a) Network connection

•  ANRE issued orders for connection in order to 

•  ANRE Order no. 4/2023 for the modification and 

•  it is proposed to facilitate obtaining the qualification 

harmonize with the provisions of GEO no. 143/2021:  

of licensed electrician, by completing the list of 
acceptable professional qualifications (CPA) with 
a new qualification (CPA 4.1) which is applicable 
to qualified workers in the field of energy, 
electrotechnical, electromechanical or electrical 
installations for constructions, having also the 
diploma baccalaureate in a field other than these.

•  ANRE Order no. 95/2023 regarding the modification 

of the General Conditions associated with the license 
for aggregation activity, approved by ANRE Order no. 
196/2020 – effective from October 25, 2023

Updating definitions:

•  aggregate entity - entity resulting from the voluntary 

aggregation of electricity producers and/or final 
customers (consumers) of electricity and/or owners 
of electricity storage facilities, which manages a UA;

•  aggregate unit - the portfolio of places of production 

(UC) and/or consumption (CC) and/or storage 
facilities (ISC) managed by an EA, which meets 
the condition that the sum of the maximum 
simultaneous electrical powers approved to be 
absorbed/ debited (registered in the ATR/ the related 
UC/CC/ISC connection certificates) to be at least 
1 MW and the condition that there is the technical 
ability to respond to the dispatcher’s instructions 
(the ability of the UA and its components to be 
controllable).

i.  domestic connection - In the case of domestic 

customers, upon commissioning of the completed 
connection works, DSO will reimburse the applicant 
the effective value of the design and execution of the 
connection, up to an average value of a connection, 
established according to a methodology approved 
by ANRE. The assets resulting from the connection 
works become the property of the distribution 
operator from the moment of commissioning, at 
the amount reimbursed to the household customer, 
being recognized by ANRE as part of the regulated 
assets base.

ii.  non-domestic connection - In the case of non-
domestic customers, the cost of the connection 
works, including those for the design of the 
connection/connection, is fully borne by the 
customers. The assets resulting from the connection 
works enter the DSO heritage from the moment of 
commissioning, without being recognized by ANRE as 
part of the regulated assets base. 

iii.  Issued orders:

•  ANRE order no. 17/02.03.2022 - Order for the 

amendment and completion of the Regulation 
regarding the connection of users to the public 
interest electrical networks, approved by ANRE 
Order no. 59/2013 in force starting from 4 March, 
2022

completion of ANRE orders in the field of connection to 
the public interest electric network of users - effective 
from February 3, 2023

•  the modification and completion of the following 

regulations, in the sense of including the possibility 
of household customers, PFA, individual businesses, 
family businesses and public institutions whose 
places of consumption are connected to LV, as well 
as prosumers, to purchase the metering group or 
the protection block and measure fully equipped, 
including the meter in compliance with the technical 
specifications provided by TSO/DSO:

•  Connection Regulation

•  The procedure regarding the connection to LV 

networks of household customers - ANRE Order no. 
18/2022

•  Connection framework contracts - ANRE Order no. 

105/2022

•  The procedure regarding the connection to the 
networks of the prosumers - ANRE Order no. 
19/2022

•  TSO/DSO is obliged to reimburse the user the value 
of these equipments at the terms established in the 
connection contracts; the reimbursement is made 
on the basis of the supporting documents presented 
by the user, without being limited to: tax invoice, 
compliance certificates, warranty certificates, etc.

•  the obligation of the DO to mount the meter is 

maintained, the deadlines in force stipulated in the 
connection contracts being maintained.

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•  ANRE Order no. 18/02.03. 2022 - Order approving 
the Procedure for the connection to low-voltage 
public interest electricity networks of consumption 
sites belonging to domestic customers - in force 
from 7 March 2022 - repeals ANRE Order no. 17/2021 
domestic customers - in force from 7 March 2022 
- repeals ANRE Order no. 17/2021

•  ANRE Order no. 21/09.03.2022 - Order amending 

and supplementing the Methodology for 
establishing the tariffs for the connection of 
users to the electricity networks of public interest, 
approved by ANRE Order no. 11/2014 - in force since 
11 March 2022

•  ANRE order no. 11/2023 for the modification and 

completion of the Methodology for issuing location 
notices by network operators, approved by ANRE no. 
25/2016 - effective from March 13, 2023

•  the definition of „risk analysis” was introduced 
as technical-economic documentation for the 
analysis of the impact of non-compliance with the 
regulated coexistence conditions. This is drawn up 
by a quality and extrajudicial technical expert in the 
field of technological electrical installations, who 
holds a license/certificate issued by ANRE, or by a 
qualified expert in the prevention and reduction of 
technological risks

•  ANRE Order no. 22/09.03.2022 - Order amending 

•  clarifications were made regarding the use of the 

and supplementing ANRE Order no. 141/2014 
approving the specific tariffs and specific indices 
used to set the tariffs for connecting users to the 
public interest electricity grids - in force since 11 
March 2022

•  ANRE Order no. 23/09.03.2022 - Order on the 
approval of the average values used by the 
distribution operator for the reimbursement to 
household customers of the cost of design and 
execution works of a connection - in force since 11 
March 2022

•  ANRE Order no. 63/2022 amending ANRE Order no. 
95/2018 on the approval of mandatory clauses in 
contracts for the provision of services in order to carry 
out connection works to electricity networks of public 
interest - in force since 31 March 2022

•  clarification of the applicability of the Binding 

Clauses in conjunction with the amendment of 
Art. 44, para. (4) of the Connection Regulation, 
introduced by ANRE Order no. 160/2020. It introduces 
the possibility for the approved economic operator 
to constitute a guarantee of good performance of 
the contract in favour of the RO, through a guarantee 
instrument issued by non-banking financial 
institutions.

•  contracts for the provision of services for the 

execution of connection works to the electricity 
grids of public interest concluded before the date of 
entry into force of the Order shall be updated by the 
conclusion by the parties of an additional act within 
30 days from the date of entry into force of the Order.

•  ANRE Order no. 137/2021 Order for the approval of 

the Procedure for the determination of the available 
capacity in the electricity networks for the connection 
of new electricity generation facilities - in force since 1 
March 2022:

•  rules for determining the available capacity in RET/

RED at 110 kV voltage level;

•  rules for publication of data on available capacities;

•  deadlines and periodicity of publication of data on 

available capacities by grid operators: monthly from 
1 April 2022; bi-monthly from 1 July 2022.

favorable location notice conditional on the issuance 
of the building permit.

•  through the changes made, it will allow the use of the 
coexistence study drawn up in the approval phase 
of the urban planning documentation and in the 
procedure for issuing the site approval.

•  ANRE Order no. 21/2023 regarding the modification and 
completion of the Methodology for the exchange of 
data between the transport operator and the system, 
distribution operators and significant network users 
approved by ANRE Order no. 233/2019 - effective from 
April 4, 2023

•  the introduction of electricity storage facilities 

connected individually to the electrical network, with 
a response in providing active power distinctly from 
electricity production facilities;

•  detailing the relevant system users who are the 

subject of information transmission to DO and TSO;

•  detailing the method of transmitting data from 

relevant system users, directly and indirectly, to DO 
and TSO.

•  in accordance with the provisions of the norm for 
connecting storage facilities, it is necessary to 
specify:

•  communication path, redundancy and data 

exchange for storage facilities. These storage 
installations can be linked with the electricity 
production installation or they can be operated 
independently.

•  how the programmed and planned data 

exchange is carried out until the provisions of ANRE 
Order no. 127/2021, with subsequent amendments 
and additions.

•  ANRE Order no. 60/2023 for the modification and 

completion of the Methodology for establishing user 
connection rates to public interest electrical networks, 
approved by ANRE Order no. 11/2014 – effective from 
April 21, 2023

•  ANRE Order for the purpose of harmonization with the 
provisions of the ANRE regulatory framework in which 
the legislative amendments of GEO no. 143/2021 were 
transposed, namely with the provisions of ANRE Orders 
no. 17/2022, no. 18/2022 and no. 19/2022. 

•  completion of the list of normative acts, with ANRE 

Order no. 105/2022, within which the two types 
of strengthening works are defined: specific and 
general.

•  if general strengthening works are needed to 

•  ANRE Order no. 82/2022 - amending and 

supplementing ANRE Order no. 74/2014 approving 
the framework content of the technical connection 
permits - in force from 20 June 2022;

•  ANRE Order no. 83/2022 - modification and 

completion of ANRE Order no. 5/2014 for the approval 
of the framework content of the connection 
certificates - in force from 20 June 2022;

•  ANRE Order no. 105/2022 approving the framework 

contracts for connection to the electricity networks of 
public interest - will repeal ANRE Order no. 164/2020 - 
in force from 5 August 2022.

•  ANRE Order no. 81/2022 - Order amending and 

supplementing the Regulation on the connection of 
users to the electricity networks of public interest, 
approved by ANRE Order no. 59/2013 - in force from 17 
June 2022

•  requires the OR to complete the value of the costs 
of carrying out the general reinforcement works 
and the method of payment to the first user and the 
other users respectively, in the connection contract it 
concludes with the new user;

•  introduction of the possibility for the OR to conclude 

a contract for the design and/or execution of 
reinforcement works for the creation of the technical 
conditions necessary for the connection of several 
consumption and/or production sites, with a specific 
certified designer and/or constructor chosen by the 
user;

•  the responsibility of the RO/economic operator 
to obtain the agreement/authorisation for the 
execution of the connection installation, in the case 
of the direct conclusion between the user and the 
approved economic operator designated by the user 
of the contract for the design and/or execution of the 
connection installation as such:

•  for the connection installation which will be owned 
by the user, the document shall be obtained by 
the user or, where appropriate, by the designated 
approved economic operator;

•  for the connection facility which will become 
the property of the RO, the document shall be 
obtained by the OR.

•  ANRE Order no. 103/2022 for the approval of the 

Procedure for the connection to the electricity grids 
of public interest of recharging points for electric 
vehicles - in force from 4 August 2022

connect a production site or a consumption and 
production site, the calculation method currently 
provided in the Methodology is maintained. Thus, the 
users will bear the costs of the general strengthening 
works established on the basis of the general 
estimate, but no more than a calculation value, 
established taking into account the power approved 
for discharge into the network for the respective 
place of production/consumption and production , 
as well as the specific rates approved by ANRE.

•  ANRE order no. 70/2023 for the modification and 
completion of some ANRE orders in the field of 
connection to the public interest electric network of 
users – effective from May 31, 2023

•  Regulation regarding the connection of users to the 
public interest electrical networks approved by ANRE 
Order no. 59/2013:

•  in the case of existing power plants/generating 

units from renewable sources for which the 
retrofitting projects lead to an increase of up to 
15% of their total installed power compared to the 
value recorded in the valid connection certificate, 
the issuance of the technical connection approval 
is carried out within the maximum 3 months from 
the date of registration of the connection request 
and the complete documentation at the DO/
TSO, with the exception of the case where there 
are justified concerns in terms of safety or there 
is a technical incompatibility with the system 
components.

•  Procedures regarding the connection to the electric 
networks of public interest of places of consumption 
and production belonging to prosumers approved by 
ANRE Order no. 19/2022:

•  description of the rules for connecting to 

an existing place of consumption/place of 
consumption and production of electricity 
production facilities from renewable sources 
of prosumers and demonstration projects, with 
installed powers of no more than 10.8 kW for three-
phase or equivalent connections of this power for 
connections other than three-phase ones.

•  according to GEO no. 163/2022, “in case of 

a decision approving the connection of the 
distribution operator or in the absence of a 
decision on his part, within one month from the 
notification, the installation or the aggregate 
production unit can be connected”, the period 
between the date of the notification regarding 
the installation of generating units at a place of 
consumption/consumption and production or the.

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•  the connection of a new consumption site, consisting 
of one or more recharging points for electric vehicles;

•  connection of a new consumption/consumption and 
production site with electric vehicle charging points, 
with/without storage facilities; 

•  installation of one or more electric vehicle charging 

points at an existing consumption site/site of 
consumption and production with/without storage 
facilities.

•  applies in conjunction with the provisions of the 

Connection Regulation, the Domestic Connection 
Procedure and the Prosumer Connection Procedure 
in force. 

•  establishes, for certain stages or actions in the 

connection process, shorter deadlines, similar to 
those provided for the connection of prosumers. 

•  when installing one or more recharging points for 

electric vehicles at an existing point of consumption, 
without exceeding the approved power, the existing 
ATR/CfR is not updated, and no additional work is 
carried out in the existing electrical installations 
upstream of the boundary point. 

•  the obligation of the SB to draw up its own 

procedures, within 30 days of publication in 
the Official Gazette, for the organisation of the 
connection activity for the categories of users 
to whom the document is addressed and to 
make available to interested parties all relevant 
information on the connection process.

•  Order no. 133/2022 amending and supplementing 

some orders of ANRE in the field of connection to the 
electricity grid of public interest users - in force since 
21 October 2022

•  Connection Regulation: (i) deletion of the provision 

that connection facilities financed by non-household 
final customers become part of the DO’s assets 
at the time of commissioning; (ii) addition of the 
definition of prosumer

•  ATR framework content: (i) deletion of the provision 
according to which connection facilities financed by 
non-household customers enter into the ownership 
of the TO at the time of commissioning; (ii) addition 
of the categories of users connected to the LV to 
whom the TO reimburses the costs of the design and 
execution of the connection up to an average value

•  Domestic connection procedure: (i) the categories 
of users connected to the LV to which the procedure 
applies must be completed and included in the 
contracting parties provided for in the framework 
contracts; (ii) the documents required for the 
conclusion of the connection contract must include 
the certificate issued to the user by the trade register 
no later than 30 days before the date of submission 
of the certificate, in the case of users other than 
domestic customers;

connection of demonstration projects and the 
date of putting under voltage is a maximum of 1 
month

•  ANRE order no. 108/2023 for the modification of the 

annex to the Procedure regarding the determination 
of the available capacity in the electrical networks 
for the connection of new electricity production 
installations, approved by ANR Order no. 137/2021 and 
regarding the repeal of ANRE Order no. 4/2011 for the 
approval of the Procedure regarding the appointment 
of a license holder to take over the development of 
the electricity distribution service -  effective from 
December 21, 2023

•  amendment of Order 137/2021 - starting with January 

1, 2024, the TSO will publish on the website the 
data related to the capacities available in electric 
transport network and electrical distribution network 
at the voltage level 110kV monthly instead of weekly

•  abrogation of Order 4/2011 considering the provisions 
of art. 46 para. (2) and (2^2) of the Energy Law, the 
substitute DO of the initial provider of the distribution 
service for situations such as the impossibility of 
performing the service or the sale of the electricity 
distribution network is established/identified by the 
legislator

•  ANRE Draft Order for the amendment and completion 

of ANRE Order no. 102/2015 for the approval of the 
Regulation on the establishment of solutions for 
connecting users to electric networks of public 
interest - public debate

•  addition to the list of situations in which the 

connection solution is established by the solution 
sheet:

•  of consumption places owned by authorized 

natural person users, individual businesses, family 
businesses and public institutions that connect 
to the low voltage network, regardless of the 
requested power;

•  of the places of consumption and production 
belonging to prosumers who own electricity 
production units from renewable sources with an 
installed power of no more than 400 kW per place 
of consumption;

•  of the local public authorities that have the 

capacity to produce electricity from renewable 
sources made, partially or totally, from structural 
funds, and that benefit from the suppliers with 
whom they have an electricity supply contract, on 
request, from the financial regularization service .

•  the introduction of the provision according to which 
the solution study must also contain connection 
options with the operational limitation of the 
maximum power that can be discharged into 
the network in situations/operating regimes with 
N-1 elements in operation that have the effect of 
overloading the network and , consequently, 

 (iii) the connection contract must include the 
average value of the connection, excluding VAT; 
(iv) inclusion of the obligation for the user or 
the approved economic operator designated to 
design and execute the connection to obtain the 
consent/authorisation to carry out the connection, 
if the contract for the design and execution of the 
connection is concluded directly by the user with the 
designated approved economic operator; (v) the 
introduction of a maximum limit of 5 years from the 
commissioning of the connection for the duration of 
the connection contract, linked to the legal provision 
on the reimbursement of the actual value of the 
connection design and execution works, up to the 
average value of a connection.

•  Connection procedure for prosumers: (i) inclusion of 
the possibility of programming the existing meter at 
the delimitation point of a consumption site for the 
measurement of electricity in both directions, when 
installing renewable energy production facilities in 
the user’s facilities; (ii) inclusion of an exemption 
from the application of the provisions of the 
procedure, concerning the electricity metering units 
required in the prosumers’ facilities, in the sense 
of not making the installation of such equipment 
conditional on the installation of power to the user’s 
facility, given the difficulties for the DOs to purchase 
such metering units.

•  Connection framework contracts - additions 

to the RO obligations in order to comply with the 
derogatory provisions of the Connection Procedure 
for prosumers.

•  BRML Order no. 77/2022 for the approval of the official 
list of fixed means of measurement subject to legal 
metrological control - published in Official Gazette no. 
332/5 April 2022 - enters into force within 90 days from 
the date of publication in MO (4 July 2022)

•  For active and reactive electricity meters the 

metrological verification will be done every 15 years.

•  ANRE Order no. 124/2022 for the approval of the Rules 
for congestion management through the market-
based use by network operators of the flexibility of 
resources in the distribution networks and those in the 
transmission network, of the Rules applicable to the 
purchase of reactive electricity for voltage regulation 
in stationary mode by the transmission and system 
operator and of the Rules applicable to the purchase of 
reactive electricity for voltage regulation in stationary 
mode by concessionary distribution operators and 
for the amendment and completion of ANRE Order no. 
127/2021 for the approval of the Regulation on terms 
and conditions for balancing service providers and 
frequency stabilisation reserve providers and the 
Regulation on terms and conditions for balancing 
parties - in force from 19 October, and Art. 1, 3 and 4 
shall apply from 1 May 2024

the impossibility of the network elements remaining 
in operation and of the network as a whole to 
operate for an unlimited time under these conditions.

•  the introduction of the provision according to which 
in the solution sheet or, as the case may be, in the 
solution study, it must be highlighted whether in the 
connection solution the electrical networks for which 
strengthening works have been executed or are 
being executed to create the technical conditions 
required to connect several production/consumption 
and production sites (general strengthening works), 
financed by users who benefit from the same 
strengthening works and whose utility installations 
are energized before the user’s own utility 
installations. It is also stipulated that, in this case, 
the data on which the participation quotas due to 
the users who financed the strengthening works are 
calculated are to be specified in the solution sheet or 
in the solution study.

•  the elimination of the phrase dispatchable/non-

dispatchable with regard to generating units/power 
plants, taking into account the provisions of ANRE 
Order no. 127/2021.

•  ANRE Draft order for the amendment and completion 
of ANRE Order no. 95/2018 regarding the approval 
of the mandatory clauses in the contracts for 
the provision of services in order to carry out the 
connection works to the electric grids of public 
interest - public debate

•  the proposed amendment refers to the price that 
TSO/DSO pays to the economic operator certified 
by ANRE for the provision of services for connection 
works to public interest electrical networks;

•  the provision according to which the price of the 

contract, initially estimated, is fixed is replaced by 
a provision that orders the updating of this price, 
corresponding to the effective consideration of 
the services performed for the realization of the 
connection installation. The price of the contract, 
initially estimated, represents the costs for making 
the connection installation established by the TSO/
DSO through the connection tariff or, if the contract 
is concluded by the TSO/DSO with a specific designer 
and/or certified builder, chosen by the user, the price 
is the agreed following the negotiation between the 
economic operator and the user.

•  the price update will be carried out through an 

addendum to the contract.

•  it is proposed to include a provision according 

to which the provisions of the order should apply 
including to users for whom, on the date of entry into 
force of the order, ORs have concluded contracts 
for the provision of services in order to carry out 
connection works to the public interest electrical 
networks, but for which the installations connection 
were not put into operation.

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•  Within 12 months the RO shall prepare and submit to 

ANRE a proposal on:

•  a technical qualification procedure related to the 
participation in congestion management in their 
networks;

•  specifications of the products introduced in short-
term energy tenders for congestion management;

•  ANRE Draft Order for the approval of the Procedure 
regarding the rules for the connection to the public 
interest electrical networks of equipment and 
aggregates for irrigation, of the new pressurization 
stations, as well as for economic operators that carry 
out activities included in CAEN code 01 Agriculture, 
hunting and services annexes and CAEN code 10 Food 
industry - public debate

•  specifications of the products included in 

long-term capacity tenders for congestion 
management;

•  the minimum information to be included in 

the register for flexibility resources, as well as 
the optional ones, and the access rules for 
neighbouring ROs;

•  a reasoned choice between organising a common 

platform for all ROs to purchase electricity for 
congestion management or a separate platform 
for each RO;

•  option of whether or not to combine any common 
platform with the Register for flexibility resources.

•  Within 12 months the ROs shall jointly develop a 
methodology to establish how they will operate, 
collaborate, share information, and establish the 
rights and responsibilities of each during the period 
in which the OTS continues to identify and manage 
grid congestion on the 110 kV grids under the 
responsibility of the ODs.

•  Within 16 months from the date of entry into force of 
this Order, the DSO and the OTS shall develop their 
own operational procedures for the implementation 
of the provisions of Annex 1 to the Order.

•  Draft Order amending and supplementing the 

Methodology for issuing site permits by network 
operators, approved by Order of the President of the 
National Energy Regulatory Authority no. 25/2016 - 
public consultation

•  the definition of „risk analysis” has been introduced 
as technical-economic documentation analysing 
the impact of non-compliance with regulated 
coexistence conditions. It is drawn up by a quality 
and extra-judicial technical expert in the field of 
technological electrical installations, who holds 
a credential/certificate issued by ANRE, or by a 
qualified expert in technological risk prevention-
reduction.

•  clarifications have been made regarding the use of 

the favourable site opinion conditional to the issue of 
the building permit. 

•  through the changes made, will allow the use of the 
coexistence study prepared during the approval 
phase of the urban planning documentation and in 
the procedure for issuing the site permit.

•  the rules are addressed to the connection to 

the electrical networks of public interest of the 
equipment and aggregates for irrigation, of the 
new pressure stations, as well as of the places of 
consumption belonging to the economic operators 
that carry out activities included in the CAEN code 01 
Agriculture, hunting and related services and CAEN 
code 10 Food industry;

•  the rules apply to the connection to the electrical 

networks of new places of consumption;

•  DSO has the obligation to ensure, under conditions 

of economic efficiency, the financing and realization 
of the design and execution works of the connection 
installations of the places of consumption, with a 
length of up to 2,500 meters, when the connection 
solution provides for the same voltage level at the 
point delimitation and at the connection point; in the 
event that the connection installations of the places 
of consumption are longer than 2,500 meters and 
when the connection solution provides for the same 
voltage level at the delimitation point and at the 
connection point, the financing of the difference in 
their length that exceeds the length of 2,500 meters 
is ensured by users;

•  if in the area where the places of consumption are 
located, there is only an electric network with a 
voltage level different from that of the demarcation 
point provided in the connection solution, DSO are 
obliged to ensure the financing and realization of 
the design and execution works of the connection 
installations consumption places with a length of up 
to 2,500 meters, excluding the transformer station/
electrical station, as the case may be, which is 
financed by the users; if in the area where the places 
of consumption are located there is only an electric 
network with a voltage level different from that of 
the demarcation point provided in the connection 
solution and the installations for connecting the 
places of consumption are longer than 2,500 meters, 
DSO has the obligation ensure the financing and 
realization of the design and execution works of the 
connection installations for a length of up to 2,500 
meters, and the financing of the difference in their 
length compared to the length of 2,500 meters and 
of the transformer station/electrical station, as the 
case may be, is ensured by users;

•  the term for making the connection, including the 
reception and commissioning of the connection 
installation, is a maximum of 120 days from the date 

of obtaining the agreement/authorization for the 
connection installation;

•  the connection installation becomes the property of 
DSO through the handover-acceptance report, on 
the date of its commissioning, in accordance with 
the provisions of the connection contract;

•  the user whose place of consumption is supplied by 
a connection installation made in accordance with 
the provisions of the procedure, has the obligation 
to use the place of consumption and to keep its 
destination for a period of 15 years from the date of 
commissioning of the connection installation ;

•  DSO verifies the fulfilment of the user’s obligation 
to use the place of consumption and to keep its 
destination at least once every year during the 
period of 15 years from the date of commissioning of 
the connection installation;

•  if the user does not comply with the obligation 

to use the place of consumption and to keep its 
destination for a period of 15 years from the date of 
commissioning of the connection installation, he is 
obliged to return to DSO the value of the design and 
execution works of the connection installation borne 
by the operator, proportional to the unused period, 
gradually.

Prosumers

Prosumers

•  ANRE Order no. 15/23.02.2022 - Methodology for 

establishing the rules for the trading of electricity 
produced in power plants from renewable sources 
with an installed electrical power of no more than 400 
kW per place of consumption belonging to prosumers 
- in force since 1 May 2022

•  The distribution operators ensure the purchase, 
installation, sealing, verification, reading and, if 
necessary, replacement of the electricity metering 
groups located in the users’ installations, according 
to ANRE regulations.

•  Consumers owning electricity generating units from 
RES with an installed capacity of 400 kW or less per 
consumption site may sell the electricity produced 
and delivered to the electricity grid to electricity 
suppliers with whom they have concluded electricity 
supply contracts, according to ANRE regulations.

•  At the request of prosumers producing electricity in 

electricity generating units with an installed capacity 
per place of consumption::

•  up to 200 kW - electricity suppliers with whom 

they have electricity supply contracts are obliged 
to make a quantitative compensation in the bill 
of consumers between the electricity produced 
and delivered to the grid and the electricity 
consumed and to report in the bills of consumers 
the difference between the quantity of electricity 
delivered and consumed, if the amount of

•  ANRE Draft Order for the modification and completion 
of the Methodology for establishing the rules for the 
commercialization of electricity produced in power 
plants from renewable sources with an installed power 
of no more than 400 kW per place of consumption 
belonging to prosumers, approved by ANRE Order no. 
15/2022 – public debate – phase II 
Draft order proposes:

•  clarification on how to apply the quantitative 

compensation between the electricity consumed 
and the electricity produced and delivered in the 
electricity network by the prosumers who own 
RES electricity production units with an installed 
electric power of no more than 200 kW per point of 
consumption

•  detailing the method of settlement of the electricity 
produced and delivered in the electricity network at 
one or more places of production and consumption 
where they have the capacity of prosumers with 
the electricity consumed from the same electricity 
network at other places of production and 
consumption/places of consumption of them, a 
facility that was introduced by GEO no. 163/2022..

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energy produced and delivered to the grid is 
greater than the amount of electricity consumed, 
consumers may use the reported amount of 
electricity for a maximum period of 24 months 
from the date of the invoice.

•  between 200 kW and 400 kW - electricity suppliers 
are obliged to purchase the electricity produced 
and delivered at a price equal to the weighted 
average price recorded in the PZU in the month 
in which the energy was produced and to make 
the financial adjustment between the electricity 
delivered and the electricity consumed from the 
grid in the bill of the consumers.

•  Quantitative compensation for prosumers with 

installations up to 200 kW per place of consumption 
will be granted until 31 December 2030, and after 
this period these prosumers can sell the electricity 
produced under the conditions provided for 
prosumers with installed capacities between 200 kW 
and 400 kW per place of consumption.

•  ANRE Order no. 19/02.03.2022 Order approving the 
Procedure for the connection of consumption and 
production sites belonging to prosumers to the 
electricity networks of public interest - in force since 7 
March 2022 - repealed ANRE Order no. 15/2021

•  harmonisation with the provisions of GEO no. 143/2021

•  ANRE Order no. 104/2022 amending and 

supplementing the Procedure for the connection to 
the public electricity networks of consumption and 
production sites belonging to prosumers, approved by 
ANRE Order no. 19/2022 - in force since 4 August 2022

•  introduction of the provision according to which, as 
an exception to the rules laid down in the Procedure 
that do not provide for the issuance of ATRs or those 
that do not provide for the issuance of ATRs prior 
to the construction of the electricity production 
plant, in the case of prosumers accessing financing 
programmes for the installation of power plants for 
the production of electricity from renewable sources, 
the DSO shall issue ATRs prior to the construction of 
the electricity production plant, in compliance with 
the provisions of the regulatory acts specific to the 
respective financing programmes.

•  ANRE Order no. 95/2022 - Order amending and 

supplementing ANRE Order no. 15/2022 approving the 
Methodology for establishing the rules for the trading 
of electricity produced in power plants from renewable 
sources with an installed electrical power of no more 
than 400 kW per place of consumption belonging to 
prosumers - in force since 1 July 2022.

•  clarifies the application of the quantitative 

compensation between the electricity consumed 
and the electricity produced and delivered to the 
electricity grid by prosumers owning

electricity production units from renewable energy 
sources with an installed electrical power of 200 kW 
or less per consumption site, given that, after the 
approval of ANRE Order no. 15/2022, GEO no. 27/2022 
came into force, which establishes the billing of 
electricity consumed by prosumers in the period 1 
April 2022 - 31 March 2023.

•  Draft Order approving the Methodology for 

establishing the rules for quantitative compensation 
between electricity produced from renewable sources 
in mobile units equipped with electricity generation 
systems during regenerative braking and delivered 
to the national electricity system and electricity 
consumed from the national electricity system by 
prosumers - public consultation

•  OD to whose grids mobile units generating electricity 
during regenerative braking are connected certifies 
the quality of prosumer, in order to apply the 
mechanism of quantitative compensation according 
to legal provisions;

•  In addition, in order to certify the status of prosumer, 
the DSO also verifies compliance with the following 
requirements: (i) the main activity of the prosumer 
- legal entity is not the production of electricity; 
(ii) the electricity produced during the recovery 
break must come from renewable energy sources 
and be delivered to the NES; (iii) the electricity 
metering system at the interface with the NES is 
realized either with smart meters or with meters that 
allow at least remote reading, integrable in smart 
electricity metering systems, having communication 
systems compatible with those of the concessionaire 
distribution operator to whose networks the 
electricity installations are connected.

•  The concessionaire DSO shall carry out monthly 

meter reading of electricity from renewable sources 
produced and delivered to the SEN/consumed from 
the SEN, in case the remote reading of electricity 
meters is not possible for technical reasons, it shall 
be determined on the basis of historical measured 
data,

•  The concessionaire DSO is obliged to store 

the collected measured/determined data, as 
appropriate, for a period of at least 36 calendar 
months.

c) Storage – N/A

c) Storage

•  ANRE Order no. 3/2023 regarding the approval of 
the Technical Norm “Technical requirements for 
connection to public interest electrical networks 
for electricity storage facilities and the notification 
procedure for connecting electricity storage facilities” 
- effective from January 20, 2023 
The norm was developed by the TSO, it establishes 
technical requirements for connected storage 
installations: 

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•  individually to the public electricity network, 

classified in categories A, B, C and D in a similar way 
to electricity production facilities;

•  within the electricity production sites;

•  within the places of electricity consumption.

•  ANRE Order no. 99/2023 for the approval of the 

Regulation on granting the transmission and system 
operator and the distribution operators the right to 
own, develop, manage or operate electricity storage 
facilities that represent fully integrated network 
components - effective from November 6, 2023

•  the situations in which the energy storage facilities 
(ISE) that can be owned by TSOs/DSO represent 
fully integrated network components (CRCI) are 
established.

•  an ISE can be considered CRCI for the following 

purposes that ensure the reliability of the 
transmission/distribution network and safety in the 
supply of electricity:

a)  ensuring the maintenance of critical equipment 

under voltage in the electrical stations of the TSO/
DSO in the event of an interruption of their power 
supply system, thus allowing the TSO/DSO to 
manage its networks safely;

b)    ensuring the continuity of the electricity supply 
[in specific situations of planned/unplanned 
interruptions of the electrical stations, until the 
resumption of normal activity;

c)  providing services that do not aim to stabilize the 

frequency for:

i.  synchronization between different parts of the 

transport/distribution system;

ii.  reduction of reactive power fluctuations 

through rapid injections of reactive current;

iii.  ensuring inertia for the stability of the local 

transport/distribution network;

iv.  the provision of restoration services, 

respectively the ability to start with own 
sources and the ability to operate in isolated 
mode

•  a CRCI cannot be used by the TSO/DSO to buy or sell 
electricity on the electricity markets: for the purpose 
of system balancing or congestion management or 
to cover the own technological consumption of the 
electricity network.

•  each TSO/DSO must develop/update the list of 

critical equipment in electrical substations for which 
the right to own, develop, manage or operate a CRCI 
is requested. The list of critical equipment is drawn 
up and updated whenever necessary according to 
the internal procedure of each TSO/DSO and is sent 
to ANRE for information. 

Distribution service performance standard

Distribution service performance standard

•  ANRE Order no. 13/2023 approving the contract - 
framework for the provision of electricity in the 
universal service regime, the general conditions for 
the provision of electricity in the universal service 
regime and the invoice model applicable to household 
customers - effective from April 1, 2023

Provisions related to the Standard distributed in 
the contract - universal service electricity supply 
framework - the compensations and penal interest 
that the household customer is entitled to receive for 
the supplier’s non-compliance with the obligations 
stipulated in the Performance Standard for the activity 
of supplying electricity and for the non-compliance 
by the distribution operator with the performance 
indicators stipulated in the Performance Standard for 
the electricity distribution service, in force.

•  ANRE Order no. 64/2022 amending and supplementing 

the Performance Standard for the electricity 
distribution service, approved by ANRE Order no. 
46/2021 - in force from 31 March 2022:

•  domestic customers, the index reading period can 
be longer than one month, but must not exceed 
3 months, for non-compliance compensation is 
granted 10 lei

•  non-household customers, the index reading 

period can be longer than one month, but must not 
exceed 6 months, for non-compliance is granted 
compensation 10 lei

•  prosumers, the periodicity of reading the index 

of the measurement group is a calendar month - 
compensation 10 lei regardless of voltage level

•  OD does not compensate users whose metering 

units are located on their property and who have not 
allowed DSO access to read the metering unit index 
within the interval specified in the bills issued by the 
electricity suppliers, with prior notification/approval 
no more than three times to the users.

•  The DSO is obliged to provide access to historical 
consumption data of users benefiting from smart 
metering systems, in accordance with the provisions 
of the framework conditions for the implementation 
schedule of smart metering systems at national 
level - if the DO does not meet the deadlines for a 
period of one month, it is obliged to pay the user 
compensation in the amount of 30 lei to JT.

•  change DSO timetable for installation of quality 

analysers

•  Transformer substations monitored according to 
each stage include also transformer substations 
that fully supply users integrated in smart 
metering systems.

•  by 31.12.2023 will monitor at least 50% of the 

number of substations and at least 20% of the 
number of transformer substations, 

•  until 31.12.2025 will monitor at least 75% of the 
number of substations and at least 60% of the 
number of transformer substations,

•  by 31.12.2026 will fully (100%) monitor the number 
of substations and at least 80% of the number of 
transformer substations,

•  from 01.01.2028 will fully (100%) monitor 

transformer substations.

•  OD have the obligation to submit to ANRE, by 30 June 
2022, the implementation programme for monitoring 
the continuity and quality of electricity with analysers 
installed in electricity stations and transformer 
substations.

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Commercial regulations

Commercial regulations

•  ANRE Order no. 82/2021 amending and supplementing 

the Regulation on the supply of electricity to end 
customers, approved by ANRE Order no. 235/2019 
and repealing ANRE Order no. 130/2015 approving 
the Procedure for the supply of electricity to own 
consumption sites DSO - in force from 1 July 2021 
(except for the provisions of art. I points 25-27, 33 and 
34 which enter into force on 1 July 2022):

•  in case of change of electricity supplier, customers 

can communicate to the new supplier the self-
quoted index at the date of transmission of the 
notification of change of supplier; the supplier has 
the obligation to retrieve and transmit to the DSO 
the index self-quoted by the final customer; the 
self-quoted index is taken into account by the DSO 
when determining the electricity consumption in the 
process of change of supplier;

•  if the end-customer does not transmit the self-

read index, the DSO is obliged to read the metering 
equipment index in the period between the date of 
transmission of the supplier change notification and 
the date of the actual supplier change;

•  The DSO is obliged to create and maintain in the 

database, for each place of consumption, for each 
of the months of January to December, information 
on the estimated active electricity consumption, 
determined as appropriate, based on: (i) the 
electricity consumption recorded at the place of 
consumption during the same period of the previous 
year or the electricity consumption determined 
taking into account the most recent readings made 
by the OD; (ii) the specific consumption profile, 
determined by the DSO for the respective category of 
final customer if for the place of consumption there 
is no consumption history.

•  OD has the obligation to allow free access to the 

data in the database to all electricity suppliers and 
to inform them on how to access the data;

•  until 1 November 2021, the ODs are obliged to make 
available to electricity suppliers the consumption 
data provided for in the order and to publish on their 
websites information on how to access this data;

•  from 1 January 2022, in the case of consumption 
places for which consumption agreements are 
concluded, the billing of the distribution service 
will be carried out by the DO, on the basis of these 
agreements, if for these consumption places there is 
no index read by the DO or by the final customer.

•  ANRE Order no. 90/2022 - Order amending and 

supplementing ANRE Order no. 52/2021 approving 
the Methodology for monitoring the system for the 
promotion of electricity production from renewable 
energy sources - in force since 27 June 2022

•  ANRE Order no. 5/2023 for the approval of the 
Regulation for the supply of electricity to final 
customers - effective from 6 February 2023

•  the need to correlate the provisions of the Electricity 

Supply Regulation to final customers with the 
provisions of Law no. 123/2012 of electricity and 
natural gas, as amended and supplemented by GEO 
no. 143/2021, and Annex 1 to Directive (EU) 2019/944.

•  elimination of the provisions that refer to the activity 
of the DO in the relationship with the supplier and its 
obligations regarding its own activity

•  detailing the way in which DO ensures unrestricted, 
free and guaranteed access to the information in 
the database regarding the places of consumption 
connected to the electrical distribution network in the 
license area;

•  the introduction of the notion of an active client, the 

quality of an active client is certified, by the DSO/TSO, 
for:

•  participation in flexibility or energy efficiency 
programs, to which the customer’s place of 
consumption is connected;

•  the production of electricity, by the DSO/TSO to 

which the place of consumption and production is 
connected;

•  elimination of the obligation to conclude the 

consumption agreement by the customer at the 
conclusion of the electricity supply contract;

•  the customer’s possibility to ask the supplier to 

change the monthly values from the consumption 
agreement for a determined period, these being 
applied by the DO and the supplier starting with 
the 1st of the month following the one in which he 
received the new values;

•  the consumption data from the consumption 
agreement can be modified by the DO at any 
time during the execution of the electricity supply 
contract, including the data from the consumption 
agreement modified by the customer, in order to 
adapt to the actual consumption achieved;

•  DO has the obligation to verify the necessity of 
changing the data related to the consumption 
convention with the same frequency with which the 
reading of the index of the measurement group takes 
place. If the DO modifies the data in the consumption 
agreement, it transmits the modified values to the 
supplier;

•  the introduction of the obligation of the DO to ensure 
the reading of the index of the measurement group 
at a time interval of maximum 3 months in the case 
of places of consumption belonging to household 
customers, except for those integrated in the SMI;

•  regulating the legal aspects related to data reporting 

by electricity suppliers who have concluded/
purchase contracts for electricity produced by 
prosumers, with whom they have concluded 
contracts for the supply of electricity as final 
consumers, on the manner and format of reporting, 
respectively frequency of data reporting.

•  in the event that the DO has not performed the 
reading within the time frame established by 
the legal provisions in force, in order to issue the 
regularization invoice, the latest self-read index and 
communicated by the client is used after the most 
recent index read and communicated by the DO. The 
regularization period cannot be longer than 3 years;

•  ANRE Order no. 91/2022 - Order approving the 

Regulation on the last instance supply of electricity - 
in force from 24 June 2022

•  Consumption sites that are not disconnected for 

non-payment of electricity consumption/withdrawal 
and do not have a supply contract in force/are not in 
the portfolio of an FUI, are taken over by the LR (the 
supplier with the highest market share in the grid 
area where the consumption sites are located);

•  within a maximum of 3 working days from the date 
of entry into force of the order, each concessionaire 
DSO shall communicate to the LR the list of 
consumption sites in its network area that are in the 
situations described above;

•  the market shares shall be established and 

published by ANRE on the basis of the quantities of 
electricity delivered, in the period from 1 September 
2021 to 28 February 2022, to customers in each 
network area, by each of the suppliers who are also 
suppliers of last resort;

•  within a maximum of 5 working days from the date 
of communication of the designation decision, LR 
and DSO concessionaires with whom the supplier 
does not have electricity distribution contracts, shall 
conclude such contracts.

•  elimination of the conditions for concluding the 

distribution contract directly by the end customer; 
specifying that the conclusion of the distribution 
contract must be carried out by the final customer 
with the DO only if the place of consumption has 
several suppliers at the same time or is the subject of 
participation in the aggregation by an independent 
aggregator;

•  ANRE Order no. 13/2023 approving the contract - 
framework for the provision of electricity in the 
universal service regime, the general conditions for 
the provision of electricity in the universal service 
regime and the invoice model applicable to household 
customers - effective from April 1, 2023

Provisions with impact on DO in the contract - universal 
service electricity supply framework - regulates the 
way in which the contracts in force are applied under 
the conditions of entry into force of the order and also 
provides that the price from the universal service offer 
is applied for a period of minimum 3 months. Provisions 
with impact on DO: 

•  the reading interval of the measurement group index 

is at most 3 months;

•  regularization of electricity consumption is done 

for a maximum of 3 months and is included in the 
first invoice issued after reading the index by the 
distribution operator (DO);

•  communication through the invoice of the time 

interval for reading the index of the measurement 
group by the DO representative;

•  invoicing based on the data established by the 

electricity consumption convention for the invoicing 
periods in which the index of the metering group 
is not read and the household customer does not 
transmit the self-read index;

•  Draft Order for the amendment of the Procedure 

regarding the establishment of electricity 
consumption in the flat-rate system, approved by 
ANRE Order no. 190/2020 - public debate

•  the drawing up by NO on the date of ascertaining 
the situation in which the electricity consumption 
cannot be determined by measurement of a Finding 
Note, this has the role of recording the technical 
problems identified at the measurement group, it is 
not necessary to sign it by the end customer ;

•  PV drawn up by NO is sent by him both to the final 

customer and to the electricity supplier within 
a maximum of 5 working days from the date of 
drawing up; based on the minutes, the supplier has

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the obligation to issue the invoice; 

•  it is not necessary for the final customer to sign the 
PV, but he can dispute both the PV and the invoice 
issued by the supplier within a maximum of 20 days 
from the communication;

•  the elimination of the option of determining the 

consumption of electricity in a flat system based 
on the average consumption resulting from the 
consumption history of the last 3 years, established 
for a period of time equal in duration and similar in 
terms of consumption conditions to that in which the 
measurement group did not work; in the situation 
where there is no consumption history of the last 
3 years, the average consumption is established 
based on the consumption history related to a period 
of 2 years respectively or 1 year, as the case may 
be, because it is no longer applicable considering 
that the recalculation is based on the average daily 
consumption of the new meter;

•  introduction of the model of the assessment note 

drawn up by the NO;

•  the introduction of the finding report model in 

the situation where the meter is/is not subject to 
metrological verification in an authorized metrology 
laboratory.

Compliance Regulation

Compliance Regulation

•  ANRE Order no. 90/2023 for the modification and 

completion of some orders issued by ANRE - effective 
from October 5, 2023

•  Period of appointment of compliance agents 
nominated by DSO/OI and approved by ANRE: 
minimum 2 calendar years and maximum 4 calendar 
years

•  By December 10 of each year, the compliance agent 
submits to ANRE a report on the measures taken and 
his conclusions regarding the fulfilment/observance 
by the OD/OI of the compliance program and the 
provision of the resources necessary to carry out the 
activity by the DSO/OI;

•  Until November 15, 2023, DSO/OI, which are part of 

vertically integrated economic operators, have the 
obligation to submit the nominations of compliance 
agents to ANRE for approval.

Annual Report and sanctions

Annual Report and sanctions – N/A

•  ANRE Order no. 1/19.01.2022 - Order for the repeal 
of ANRE Order no. 32/2016 on the approval of the 
Methodology for the preparation of the Annual Report 
by licensees in the electricity and thermal energy 
sector and on the amendment of some ANRE orders - 
in force since 21 January 2022

•  eliminates the obligation for licensees to draw up the 

Annual Activity Report. 

•  ANRE Order no. 32/2016 is repealed - the information 
in the annexes of the Annual Report Methodology 
shall be submitted to ANRE in accordance with the 
provisions of other orders.

•  ANRE Order no. 12/23.02.2022 - Order approving the 

Procedure for the establishment and individualization 
of fines related to the turnover resulting from the 
control activity - in force from 1 March 2022

•  It aims to establish the rules necessary for 

establishing and individualizing the contravention 
penalties related to turnover provided for in the Law 
on Electricity and Natural Gas no. 123/2012, art. 95 
para. (2) and (3).

•  ANRE Order no. 13/23.02.2022 - Order approving the 

Procedure for the establishment and individualization 
of contraventional sanctions related to turnover, by 
ANRE’s Regulatory Committee, following investigation 
actions - in force since 28 February 2022.

•  Its purpose is to establish and individualize sanctions 
in case of committing the offences provided for in 
art. 93 para. (1) and art. 194 of the Law on Electricity 
and Natural Gas no. 123/2012, with subsequent 
amendments and additions, hereinafter referred to 
as the Law, for which sanctions are provided from the 
turnover of the year preceding the application of the 
sanction.

•  ANRE Order no. 100/2022 amending and supplementing 

the Regulation on the organisation and conduct 
of energy investigation activities regarding the 
functioning of the wholesale energy market, approved 
by ANRE Order no. 25/2017 - in force from 4 August 2022

•  application of some of the legal provisions in force 

and by the members of the Regulatory Committee of 
ANRE; 

•  extending the scope of investigations into breaches 
of the transparency requirements laid down in the 
ANRE regulations as well as in European regulations; 

•  introduction of amendments, clarifications and 

additions concerning the competence to establish 
and individualize sanctions, depending on the nature 
and timing of their occurrence; the draft order also 
includes provisions for the situation where, during the 
investigation action, no contraventions are found.

•  ANRE Order no. 101/2022 amending and supplementing 

the Procedure for the establishment and 
individualization of fines based on turnover, by 
ANRE’s Regulatory Committee, following investigative 
actions, approved by ANRE Order no. 13/2022 - in force 
from 4 August 2022

•  to complete the Procedure with the situations in 

which the Regulatory Committee establishes and 
individualizes the sanctions by reference to the 
turnover of the investigated legal entity, and for the 
contraventions for which the investigation team,

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The deadline for making the connection is 120 days from 
the date of obtaining the agreement/authorization for 
the connection installation. The assets resulting from the 
connection works become the property of the DSO from 
the time of installation of the connection installation.

The applicant, a future non-domestic final customer, 
has the obligation to use the place of consumption and 
to keep its destination for a period of at least 15 years 
from the PIF date, otherwise he is obliged to return to DSO 
the value of the design and execution of the connection 
installation, proportionally with the remaining unused 
period, gradually, in accordance with ANRE regulations.

as investigating agents, applies the provisions of 
art. 12 para. (2) of the OG no. 2/12 July 2001 on the 
legal regime of contraventions, approved with 
amendments and additions by Law no. 180/2002, with 
subsequent amendments and additions, proposing 
to sanction the investigated market participant with 
a fine in relation to its turnover;

•  correlation with the provisions of ANRE Order no. 

25/2017, as amended and supplemented.

•  ANRE Order no. 120/2022 on the amendment and 
completion of the Regulation on the detection, 
notification and sanctioning of violations of 
regulations issued in the field of energy applicable 
to the investigation activities carried out by ANRE, 
approved by ANRE Order no. 62/2013 - in force from 5 
October 2022

•  Completion and amendment of the Regulation, in 
accordance with the legal provisions in force, as a 
result of the amendments made to the Law, i.e. by 
Order 25/2017 and Order 13/2022.

•  ANRE Order no. 143/2022 amending and supplementing 

the Regulation on the detection, notification and 
sanctioning of violations of regulations issued in the 
field of energy applicable to the control activities 
carried out by ANRE, approved by ANRE Order no. 
62/2013, with subsequent amendments and additions 
- in force from 28 December 2022

•  amendment and completion of the Regulation 

provides that the documents preceding the control 
action, during the control action or resulting from 
the completion of the control action, such as, but not 
limited to: the control warrant, the control notice, the 
control report, the referral note, the sanction warrant, 
the sanction invitation, etc. can be drawn up and 
communicated both in written and electronic format.

Primary legislation:

Primary legislation:

•  Energy Law no. 123/2012 - amended by GEO no. 143/2021 

- in force since 31 December 2021, approved and 
amended by Law no. 248/2022, in force starting with 25 
July 2022, providing among others:

•  the possibility of concluding directly negotiated 

bilateral transactions;

•  obligation for the DSO to ensure the reading of the 

metering group index for domestic end customers at 
a maximum interval of 3 months;

•  the role of the DSO as a neutral market facilitator in 
the purchase of electricity to cover NL, according to 
transparent, non-discriminatory and market-based 
procedures, in compliance with ANRE regulations;

•  domestic connection - In the case of domestic 

customers, upon commissioning of the connection 
works carried out, the DSO will reimburse the 
applicant the actual value of the design and 
execution works of the connection, up to an average 

•  Law no. 158/2023 for the amendment and completion 
of the Electricity and Natural Gas Law no. 123/2012 - 
effective from June 3, 2023

For the supply of equipment and aggregates for irrigation, 
as well as for economic operators that carry out activities 
included in CAEN code 01 Agriculture, hunting and related 
services and CAEN code 10 Food industry, DSO has 
the obligation to ensure the financing and realization 
of the design and execution works of the installation 
connection of the final non-domestic customer, whose 
length will be up to 2,500 meters located on the territory 
of the administrative-territorial unit for which the public 
distribution service has the concession. For connection 
installations that exceed the length of 2,500 meters, the 
financing of the difference from the network falls under 
the responsibility non-domestic end customer. The 
counter value of the design and execution works of the 
connection installation will be recognized in the tariff by 
ANRE.

•  value of a connection, established according to a 

methodology approved by ANRE. The assets resulting 
from the connection works become the property 
of the distribution operator from the moment of 
commissioning, through the effect of this law, at the 
value reimbursed to the household customer, being 
recognised by ANRE as part of the regulated asset 
base.

•  non-household connection - In the case of non-
household customers, the cost of the connection 
work, including the design of the connection/
connection, is borne entirely by the customer. The 
assets resulting from the connection works:

•  between 1 January and 24 July 2022, it enters 

the distribution operator’s patrimony from the 
moment of commissioning, based on GEO no. 
143/2021, without being recognized by ANRE as part 
of the regulated asset base;

•  starting with 25 July 2022, it does not enter the 

patrimony of the distribution operator, based on 
Law no. 248/2022 and ANRE Order no. 133/2022, 
they are transferred only for exploitation to the 
distribution operator;

•  in case the final customers do not have SM, DSO 

provides them with individual conventional meters 
that accurately measure their real consumption. 
DSO ensures that end customers can easily read 
their conventional meters, either directly or indirectly, 
through an online interface or other appropriate 
interface that does not involve physical connection 
to the meter.

•  ANRE has the obligation to issue the regulations 
provided in the Law within the terms expressly 
provided from the date of entry into force of the Law 
(60 days or 6 months).

•  Law no. 259/29.10.2021 for the approval of GEO no. 
118/2021 on the establishment of a compensation 
scheme for the consumption of electricity and natural 
gas for the cold season 2021-2022, as well as for the 
completion of Government Ordinance no. 27/1996 on 
the granting of facilities to people living or working in 
some localities in the Apuseni Mountains and in the 
„Danube Delta” Biosphere Reserve

•  For the period 1 November 2021 - 31 March 2022, a 

support scheme for the payment of electricity and 
gas bills has been established for several categories 
of final customers.

•  In order to regularize the amounts related to 

the support scheme, the electricity/natural gas 
distribution operators have the obligation, in the 
period April-June 2022, in addition to the readings 
established according to the regulations in force, 
to carry out the meter index reading of the final 
customers who benefited from the support scheme 
and to communicate to the electricity/natural gas 
suppliers their measurement data.

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•  Exempting certain categories of small consumers 

(SMEs, PFAs) from the payment of distribution tariffs, 
transmission tariffs, green certificates, contribution 
for high-efficiency cogeneration and excise duties. 

•  Emergency Ordinance no. 3/2022 amending and 

supplementing Government Emergency Ordinance 
no. 118/2021 for domestic customers increases the 
maximum consumption limit from 1500 kWh to 1900 
kWh (380kWh/month) - in force from 26 January 2022

•  for household customers in the period 1 February 
2022 - 31 March 2022 the final invoiced price of 
electricity is capped at 0.8 RON/kWh, VAT included, 
(compared to 1 RON/kWh), of which the energy 
price component is a maximum of 0.336 RON/kWh 
(compared to 0.525 RON/kWh);

•  for non-household customers in the period 1 

February 2022 - 31 March 2022 the final invoiced price 
of electricity is capped at a maximum of 1 RON/kWh, 
VAT included, of which the energy price component 
is a maximum of 0.525 RON/kWh

•  OD have the obligation, during the period April-

June 2022, in addition to the readings established 
according to the regulations in force, to carry out 
meter index readings on domestic customers and to 
transmit their measurement data to the electricity/
natural gas suppliers.

•  Emergency Ordinance no. 27/2022 on measures 

applicable to final customers in the electricity and 
natural gas market in the period 1 April 2022 - 31 March 
2023 - in force since 22 March 2022, approved by Law 
no. 206/11 July 2022, amended by GEO no. 192/2022

•  to cover the additional costs related to NL 2021, ANRE 
modifies the regulated tariffs, applicable from 1 April 
2022. 

•  The resulting tariffs will not change between 1 April 

2022 and 31 March 2023.

•  additional costs financed from bank loans made 
during the period of the GEO to cover the NL are 
capitalized, with a duration of 5 years and RRR = 50% 
x RRR RP4. 

•  electricity costs purchased for NL after the date of 
entry into force of the GEO will be recognized in the 
regulated tariffs, according to ANRE methodologies.

•  transmission and distribution tariffs will be adjusted 
to reflect costs incurred up to 31 March 2023 for a 
period of up to 5 years after 31 March 2023.

•  the producers in the Romanian state portfolio are 

obliged to respond within 5 working days with 
partial or total sales offers to the requests for 
energy purchase addressed by the OTSs and ODs, 
individually or in aggregate, directly or through the 
dedicated platforms of the organized market. Failure 
to comply with the provision shall be sanctioned with 
a fine of RON 100.000 ÷ 400.000.

•  The provisions of the GEO apply until 31 March 2025.

•  Emergency Ordinance no. 119/2022 amending and 
supplementing GEO no. 27/2022 on the measures 
applicable to end customers in the electricity and 
natural gas market during the period 1 April 2022-31 
March 2023, as well as amending and supplementing 
certain regulatory acts in the field of energy - in force 
since 1 September 2022, approved and amended by 
Law no. 357/16 December 2022

•  additional costs for the purchase of electricity, 

made between 1 January 2022 and 31 August 2023, 
to cover the NL, compared to the costs included 
in the regulated tariffs (and not only the loans), 
are capitalised quarterly, RRR = 50% of the RRR 
applicable to each period;

•  electricity generators are obliged to sell available 
electricity with delivery until 31 December 2022, 
through direct negotiated contracts starting from 1 
September 2022, only to electricity suppliers with end 
customers in their portfolio, intended exclusively for 
their consumption, OD, OTS and consumers who have 
benefited from the provisions of GEO 81/2019.

•  Emergency Ordinance no. 153/2022 amending and 

supplementing Government Emergency Ordinance no. 
27/2022 on the measures applicable to end customers 
in the electricity and natural gas market during the 
period 1 April 2022-31 March 2023, as well as amending 
and supplementing certain regulatory acts in the field 
of energy and amending Government Emergency 
Ordinance no. 119/2022 amending and supplementing 
Government Emergency Ordinance no. 27/2022 on the 
measures applicable to end customers in the electricity 
and natural gas market between 1 April 2022 and 31 
March 2023, as well as amending and supplementing 
certain regulatory acts in the field of energy - in force 
since 11 November 2022

•  for the period from 1 January 2023 to 31 March 2025, 
the centralised electricity purchase mechanism is 
established

•  OPCOM is designated as the single buyer, it 

buys electricity from the designated producers 
and sells the purchased electricity to electricity 
suppliers who have contracts with end customers, 
electricity transmission system operators and 
electricity distribution operators, to cover their own 
technological consumption of the networks operated 
by them.

•  OD can buy from OPCOM by annual/monthly 

mechanism 75% of the quantity of NL forecast and 
validated by ANRE at the price of 450 lei/MWh, 
and producers can sell to OPCOM annual/monthly 
mechanism 80% of the quantity produced forecast 
and validated by ANRE and Transelectrica at the 
price of 450 lei/MWh.

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Alignment with the European legislation - EU Regulation 
no. 943/2019:

Alignment with the European legislation - EU Regulation 
no. 943/2019:

Electricity market functioning

Electricity market functioning

•  ANRE Order no. 128/2021 - Order approving the Rules 

•  ANRE Order no. 12/2023 for the approval of the 

for the suspension and restoration of market activities 
and the applicable Settlement Rules - in force from 1 
October 2022:

•  to determine the situations and conditions under 
which the OTS can suspend market activities with 
mitigating impact on PZU and PI energy market 
coupling; 

•  identification of the market activities that can be 

suspended and the procedure for their suspension 
and reinstatement: steps, role and responsibilities 
of the OTS/designated electricity market operator/
factors involved; 

•  communication procedure detailing the tasks and 

Regulation regarding the organized framework for 
trading on the organized future electricity markets 
administered by the Electric Energy and Natural Gas 
Market Operator OPCOM S.A., which aims to simplify 
the organized framework for trading electricity on 
the markets organized by future electricity, through 
the trading platforms managed by S.C. OPCOM S.A – 
effective from 28 March 2023 
Provides rules that refer to: 

•  the types of products that can be traded on the 
standardized and flexible term product markets;

•  the method of establishing offers for the sale or 

purchase of electricity;

actions to be carried out by each party

•  the way of organizing auctions/trading sessions;

•  suspension during the period of collapse and 

•  the way of establishing transactions and contracting 

restoration from collapse of the SEN of all wholesale 
market contracts (including transactions concluded 
on the DAM and IM), and the sale/purchase to be 
carried out at a single restoration price, i.e. the 
settlement procedure applicable in these situations 
and the procedure for making payments and 
contesting the settlement.

•  the order will apply from 1 October 2022, the date 
from which ANRE Order no. 23/2016 is repealed.

•  ANRE Order no. 65/2022 approving the Regulation on 

the organised framework for electricity contracting by 
large end customers - in force since 1 April 2022

•  expanding market participation by accepting 

OTS and ODs, their participation in the market is 
exclusively for the purchase of NL;

•  application of the regulation inclusive of producers 
to whom the measures of GEO No 27/2022 apply;

•  use of standard or EFET-type contracts;

•  reduction of the average power per settlement 

interval from 10 MW to 5 MW, for a better profiling of 
the final customers’ offers;

•  the possibility for the initiator to choose to vary 

the contracted power per settlement interval by a 
maximum of 0.5 MW per settlement interval;

•  minimum delivery duration of one month;

the traded energy;

•  the way of managing and publishing information on 

participants, offers and concluded transactions. 

•  ANRE Order no. 20/2023 for the approval of the 

Regulation on the organization and operation of the 
organized electricity market, administered by the 
Romanian Stock Exchange - S.A. – effective from April, 
5 2023 
Provides rules that refer to:

•  Introduction of a chapter on organized market 

segments

•  The introduction of new products, namely flexible 
products and products derived from the field of 
electricity, settled by physical delivery

•  Description of the trading mechanisms used

•  Expanding market transparency information

•  Introduction of requirements regarding the use of a 

liquidity provider

Upon entry into force of the order, ANRE Order no. 
117/2022 for the approval of the Regulation on 
the organization and operation of the electricity 
futures contract market organized by the company 
Romanian Stock Exchange S.A., and within 30 days of 
approval, BRM publishes the operational procedures 
according to the Regulation entered into force.

•  the option of full/partial trading of the initiator offer.

•  ANRE Order no. 17/2023 for approval of the 

•  ANRE Order no. 73/2022 - amending ANRE Order no. 
65/2022 approving the Regulation on the organised 
framework for the contracting of electricity by large 
end customers - in force since 12 May 2022

•  the possibility of introducing initiating offers also by 

producers participating in the market;

methodology for monitoring the wholesale electricity 
market - effective from April, 3 2023

•  the scope and scope of the methodology for 

monitoring the wholesale electricity market have 
been extended to include ANRE’s monitoring 
obligations as a result of the changes brought about 
by the entry into force of Law 123/2012, and the 

•  deletion of the specification that large end-use 

electricity customer includes transmission system 
operator and distribution system operators that 
purchase, individually or in aggregation, electricity 
to cover their own technological consumption in the 
networks they operate, in order to avoid resale by 
operators of electricity purchased on this market, 
based on the license they hold. They can participate 
in the market from the position of final customer, 
which, according to the definition in the Energy Law, 
is any natural or legal person who buys electricity for 
their own consumption.

•  ANRE Order no. 3/2022 approving the Regulation on 

the organization and operation of the online platform 
for changing supplier (POSF) and for contracting the 
supply of electricity and natural gas - in force since 28 
August 2022

•  The online platform (POSF) is unique at national level, 

end customers and economic operators involved 
in changing supplier and contracting supply are 
obliged to use this platform exclusively.

•  Implementation of the platform starts on 28 August 

2022.

increased complexity of the types of data/indicators 
required by the relevant European institutions (ACER/
CEER);

•  update definitions/abbreviations used, reference 

documents referred to in the regulatory proposal and 
economic operators to which the provisions of the 
monitoring methodology apply;

•  taking into account the amendments made to 

Law no. 123/2012, the system of specific indicators 
for the markets on which electricity is traded 
(structure indicators, market efficiency/performance 
assessment indicators, market participant behaviour 
indicators) has been adapted and completed for 
each of the monitoring entities with responsibilities in 
the field (ANRE, NEMO and TSO).

•  for a clearer understanding of how to report 

and therefore for accurate, complete and timely 
reporting, additional details have been provided 
on the data required on the monthly templates 
submitted by market participants.

•  ANRE Order no. 18/2023 for approval of the 

methodology for monitoring the retail electricity 
market - effective from April, 4 2023

•  Duration of the switching process 24 hours 

•  the scope and coverage of the methodology for 

•  The customer is obliged to register the self-quoted 

index in POSF

•  The customer uploads the self-read index at the 
initiation of the supplier change process and a 
second self-read index at the date of the actual 
supplier change. If the end customer does not 
upload the index at the effective supplier changeover 
date, the DSO is obliged to register in the POSF, within 
5 days from the effective supplier changeover date 
by the end customer, the index read by the DSO or 
provided by the smart metering system.

•  The regulation details: the organization and 

operation of the POSF, the content of the POSF 
database, the data required to create an access 
account in the POSF, the rights and obligations of 
POSF users, the rules on the conclusion of the supply 
contract, the actual procedure for changing supplier.

monitoring the retail electricity market have been 
extended to include ANRE’s monitoring obligations as 
a result of the amendments to Law 123/2012 and the 
increased complexity of the types of data/indicators 
frequently requested by the relevant European 
institutions (ACER/CEER);

•  the system of indicators allows for a European 
approach to monitoring the retail electricity 
market, as they are developed in line with the 
public documents developed by CEER on the proper 
functioning of retail electricity markets in Europe, 
working tools for regulators in member countries.

•  for a clearer understanding of how to report 

and therefore for accurate, complete and timely 
reporting, the data aspects required on the monthly 
templates submitted by retail market participants 
have been detailed.

•  ANRE is the administrator and operator of the 

online platform for end-customers to change their 
electricity and/or gas supplier (POSF).

•  ANRE order no. 88/2023 for the amendment of ANRE 
Orders regarding the electricity market – effective 
from September 26, 2023

•  During the period between the date of entry into 

force of the Order and 28 August 2022, all economic 
operators are obliged to comply with any ANRE 
requests for the realization and implementation of 
the POSF.

•  ANRE Order no. 109/2022 amending and supplementing 
ANRE Order no. 3/2022 approving the Regulation on the 
organisation and operation of the online platform for 
changing the electricity and natural gas supplier and 
for contracting the supply of electricity and natural 
gas - in force since 24 August 2022

•  ANRE order no. 127/2021 for the approval of the 

Regulation on the clauses and conditions for the 
balancing service providers and for the frequency 
stabilization reserve providers and the Regulation 
on the clauses and conditions for the parties 
responsible for balancing and for the modification 
and repeal of some ANRE orders, applies from on 
April 1, 2024.

•  ANRE order no. 128/2021 for the approval of the rules 
for suspending and restoring market activities and 
the applicable settlement rules, applies from April 1, 
2024. 

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•  ANRE Draft Order regarding the repeal of ANRE Order 

no. 97/2013 for the approval of the rules regarding the 
purchase of electricity to cover own technological 
consumption related to electrical networks - public 
debate

•  Considering the fact that the provisions included in 

the ANRE Order no. 97/2013, regarding the acquisition 
by TSOs and DOs for NL coverage related to the 
electrical networks they operate, were taken over 
within ANRE Orders no. 213/2020, respectively 
no. 127/2021, with subsequent amendments and 
additions, it is proposed to repeal ANRE Order 
no. 97/2013, with subsequent amendments and 
additions.

•  Draft order for the amendment of the Regulation 

regarding the organized trading framework on the 
organized future electricity markets administered by 
the Electric Energy and Natural Gas Market Operator 
OPCOM S.A. approved by ANRE Order no. 12/2023 - 
public debate

•  Taking into account the approval of ANRE Order 
no. 95/2023 in which aggregation can be done 
cumulatively (producers, consumers and owners of 
storage facilities), it is proposed to eliminate art. 11 
paragraph 2 of ANRE Order no. 12/2023: Art. 11. — (2) 
The aggregation of market participants is carried out 
separately for the production activity, respectively for 
consumption.

•  to change the date of application of the Regulation 
from 28 August 2022 to 10 October 2022; by way of 
derogation, the provisions relating to the registration 
in the POSF of the information that ORs and suppliers 
are obliged to register in accordance with the 
Regulation shall apply from 28 August 2022

•  ANRE Order no. 79/2022 - approving the Regulation 

on the organization and functioning of the electricity 
futures market organized by Bursa Romana de Marfuri 
S.A. - in force since 10 June 2022

•  This draft order aims to establish an organized 

framework for electricity trading on the Electricity 
Futures Market, through electronic trading platforms 
managed by Bursa Romana de Marfuri S.A (BRM).

•  ANRE Order 117/2022 for the approval of the Regulation 
for the organization and functioning of the forward 
electricity contracts market organized by Bursa 
Romana de Marfuri S.A. - in force since 1 October 2022, 
exception art. 2

•  repeals Order No. 79/2022, introducing new products 
for trading: (i) multiple of a day, i.e. the entire period 
of at least 2 consecutive delivery days starting at the 
earliest on the second calendar day following the 
day a transaction is closed; the product is tradable 
only with delivery in the band; (ii) 1 week; the product 
is tradable only with delivery in the band; (iii) 
balance of the month, i.e. the period made up of the 
remaining delivery days of a current calendar month, 
starting on the second calendar day following the 
day a transaction is closed; the product is tradable 
only with delivery in the band.

•  art. 2 - The BRM shall update, by 1 October 2022, the 
operational procedures necessary to implement the 
Regulation 

•  ANRE Order no. 92/2022 - order amending and 

supplementing the Regulation on the calculation and 
settlement of imbalances of the parties responsible for 
balancing - single imbalance price, approved by ANRE 
Order no. 213/2020 and amending some ANRE orders - 
in force since 1 July 2022.

•  new articles on how to allocate additional costs/

revenues from balancing the system;

•  it is proposed to reduce from 6 months to 2 months 

the period in which the participant can request 
a reasoned correction of the settlement from the 
posting of the information note for settlement on the 
dedicated IT platform;

•  implementation of the 400 kW installed capacity 

limit for prosumers, from which the supplier no longer 
assumes responsibility for balancing;

•  the order applies from 1 July 2022 in which the 

calculations for the settlement of imbalances of the 
PRE for the delivery month June 2022 are made.

•  ANRE Order no. 121/2022 amending some ANRE orders 

on the electricity market - in force since 1 October 2022

•  ANRE Order no. 127/2021 shall enter into force on the 
date of publication and shall apply from 1 October 
2023, with the exception of: (i) for the period 1 
May 2023-1 September 2023, the balancing party 
imbalance settlement operator shall, starting 
from May 2023, perform monthly simulations for 
the calculation of the balancing party imbalance 
settlement resulting from the application of the 
provisions of the Regulation on terms and conditions 
for balancing parties (ii) technical amendments 
to the Technical Qualification Procedure for the 
provision of system services, approved by ANRE Order 
no. 89/2021, which apply from the date of entry into 
force

•  ANRE Order no. 128/2021 applies from 1 October 2023, 
to align with the provisions of ANRE Order no. 127/2021.

•  Order no. 134/2022 approving the General General 
Rules on Organised Electricity Futures Markets - in 
force from 3 November 2022

•  to simplify the organised framework for electricity 

contracting, by drawing up a framework regulation 
with general provisions, on the basis of which each 
electricity market operator will draw up specific rules 
for the organisation and management of its own 
markets;

•  ensure the creation of a general framework with 
requirements applicable to all electricity market 
operators to ensure transparency and non-
discrimination. On the basis of these general rules, 
operators shall draw up their specific conditions of 
participation.

•  Regulation (EU) 2022/1854 of 6 October 2022 on 
emergency action to tackle high energy prices:

•  reduce consumption by a target 5% during peak 

hours

•  180 Euro/MWh threshold for solar, nuclear, hydro, 

wind and lignite production mainly; revenues above 
this threshold will be collected by the state

•  solidarity mechanism -33% of profits in fiscal year 

2022, if there is an increase of more than 20% 
compared to the 2018-2021 average

•  The funds obtained on the last two points will be 
redirected to domestic consumers, companies in 
difficulty, reduced tariffs or social aid.

•  Draft Order approving the methodology for monitoring 
the wholesale electricity market - public consultation

•  the scope and scope of the methodology for 

monitoring the wholesale electricity market have 
been extended to include ANRE’s monitoring 
obligations as a result of the changes brought about 
by the entry into force of Law 123/2012, and the 

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A.3.1.2.  Supply activity 

increased complexity of the types of data/indicators 
required by the relevant European institutions (ACER/
CEER);

•  update definitions/abbreviations used, reference 

documents referred to in the regulatory proposal and 
economic operators to which the provisions of the 
monitoring methodology apply;

•  taking into account the amendments made to 

Law no. 123/2012, the system of specific indicators 
for the markets on which electricity is traded 
(structure indicators, market efficiency/performance 
assessment indicators, market participant behaviour 
indicators) has been adapted and completed for 
each of the monitoring entities with responsibilities in 
the field (ANRE, OPEE and OTS).

•  for a clearer understanding of how to report 

and therefore for accurate, complete and timely 
reporting, additional details have been provided 
on the data required on the monthly templates 
submitted by market participants.

•  Draft Order approving the methodology for monitoring 

the retail electricity market - public consultation

•  the scope and coverage of the methodology for 

monitoring the retail electricity market have been 
extended to include ANRE’s monitoring obligations as 
a result of the amendments to Law 123/2012 and the 
increased complexity of the types of data/indicators 
frequently requested by the relevant European 
institutions (ACER/CEER);

•  the system of indicators allows for a European 
approach to monitoring the retail electricity 
market, as they are developed in line with the 
public documents developed by CEER on the proper 
functioning of retail electricity markets in Europe, 
working tools for regulators in member countries.

•  for a clearer understanding of how to report 

and therefore for accurate, complete and timely 
reporting, the data aspects required on the monthly 
templates submitted by retail market participants 
have been detailed. 

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In 2022, with an impact on the electricity and gas supply 
activity, the following regulations were adopted:

In 2022, with an impact on the electricity and gas supply 
activity, the following regulations were adopted:

a.  Primary legislation:

a.  Primary legislation:

•  GEO no. 118/2021 on the establishment of a 

•  GEO No 27/2022 on measures applicable to final 

compensation scheme for electricity and natural gas 
consumption for the 2021-2022 cold season, approved 
with amendments and additions by Law no. 259/2021:

•  The planned support scheme will be applied for 

the period November 2021 – March 2022 and was 
established in the context of rising prices on the 
electricity and natural gas markets at international 
level, as well as the effects of these increases for the 
Romanian population;

•  the following consumer support schemes are 

provided:

•  compensation for household customers if they fall 
within the maximum consumption limits set for 
the entire period of application (i.e. 1,500 kWh for 
electricity, 1,000 m3 for natural gas), respectively 
monthly and within the reference price of 0.68 lei/
kWh for electricity, respectively 125 lei/MWh for 
natural gas; the amount of compensation is 0.291 
lei/kWh for electricity, respectively 33% of the bill for 
natural gas;

•  exemption from payment of regulated tariffs, other 
contributions and excise duty for SMEs, individual 
medical practices and other liberal professions, 
microenterprises, licensed natural persons, sole 
proprietorships, family enterprises (i.e. regulated 
feed-in/withdrawal tariffs, distribution tariff, system 
service tariff, transmission tariff, green certificates, 
contribution for high efficiency cogeneration and 
excise duty – for electricity; transmission cost, 
distribution tariff and excise duty – for natural gas);

•  capping of the final invoiced price to a maximum of 
1 leu/kWh, of which the electricity price component 
of max. 0.525 lei/kWh for electricity, respectively a 
maximum of 0.37 lei/kWh, of which the gas price 
component of max. 0,250 lei/kWh for natural gas for 
household customers, public and private hospitals, 
public and private educational establishments and 
nurseries, non-governmental organisations, religious 
establishments, public and private social service 
providers;

•  suspension of bill payments – on request, only for 

vulnerable consumers, for a period of min. 1 month 
and max. 6 months;

•  Mechanisms are also provided for the settlement of 
amounts related to support schemes from the state 
budget to electricity and gas suppliers.

customers in the electricity and natural gas market for 
the period from 1 April 2022 to 31 March 2023, as well as 
for amending and supplementing certain regulatory 
acts in the field of energy:

•  the period of application of the support scheme 

(capping) is 1 year, i.e. 1 April 2022 - 31 March 2023.

•  for electricity the final invoiced price is: maximum 

0.68 lei/kWh (VAT included) for household customers 
with average monthly consumption (achieved at 
the place of consumption in 2021) less than or equal 
to 100 KWh, maximum 0.8 lei/kWh (VAT included) 
for household customers with average monthly 
consumption between 100 kWh and 300 KWh 
inclusive, maximum 1 leu/kWh (VAT included) for 
non-household customers (the framing of household 
customers is made according to the average 
monthly consumption achieved in 2021, the capped 
prices will apply for the entire period regardless of 
the amount consumed. In the case of household 
customers who were not initially included in the cap 
but whose consumption in 2022 is included, suppliers 
issue regularisation invoices in February 2023 
using the capped price for the period in which they 
consumed).

•  customers connected after 1 January 2022 will 
be billed with a ceiling: domestic electricity 
customers at 0.68 lei/kWh (with minimum ceiling), 
domestic gas customers at 0.31 lei/kWh (category 
ceiling), non-household electricity customers at 
1 leu/kWh (category ceiling) and non-household 
gas customers at 0.37 lei/kWh (regardless of 
consumption);

•  customers who do not fall under the ceiling will have 

monthly adjustable prices, the variable being a 
correction component for the purchase price, so that 
the cost of purchase (with PE within 5%) is passed on 
to the final customers. The exception is only the first 
two months of the application period, when the price 
is not adjustable. At the request of final customers, 
suppliers may also conclude supply contracts under 
conditions other than those laid down in the article 
referring to uncapped customers.

•  the subscription is included in the ceiling; if the 
price in the current contracts concluded with 
final customers is lower than the ceiling price, the 
contractual price shall apply.

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•  GEO no. 2/2022 on the establishment of social 
protection measures for employees and other 
professional categories in the context of prohibition, 
suspension or limitation of economic activities, caused 
by the epidemiological situation generated by the 
spread of SARS-CoV-2 coronavirus, as well as for the 
modification and completion of some normative acts:

•  for natural gas the final invoiced price is: maximum 

0.31 lei/kWh (VAT included) for household customers, 
maximum 0.37 lei/kWh (VAT included) for non-
household customers whose annual consumption 
of natural gas in 2021 at the place of consumption 
is no more than 50,000 MWh and for thermal energy 
producers;

•  The ordinance provides for amendments and 

•  the supply component is 73 lei/MWh for the 

additions to GEO No 118/2021 as follows:

•  extending the scope of the ceiling by including in 
the category of beneficiaries also public cultural 
institutions and cultural establishments subordinated 
to central and local public administration authorities;

•  prohibition to disconnect or interrupt, until 

30.06.2022, the electricity supply for non-payment of 
household customers;

•  provision, in the case of invoices that do not 

comply with the legal provisions on the application 
of support schemes (compensation, exemption, 
capping), for their automatic reissue within a 
maximum of 15 days from the date of issue. For 
invoices already issued, the deadline for their reissue 
is 15 days after the entry into force of this GEO, i.e. 
until 3 February 2022 (inclusive). The execution of 
the payment obligation for invoices in the process 
of being recalculated is also suspended until new 
invoices are issued.

•  GEO no. 3/2022 amending and supplementing GEO no. 

118/2021:

•  the following amendments and additions to GEO 

no. 118/2021 are provided for, with application from 1 
February to 31 March 2022:

•  increasing the consumption margin for 

compensation from 300 kWh/month (+10%) to 500 
kWh/month (+10%) for electricity and from 200 mc/
month to 300 mc/month for natural gas; 

•  change the price cap for household customers (from 
1 leu/kWh to 0.8 lei/kWh for electricity and from 0.37 
lei/kWh to 0.31 lei/kWh for natural gas) and introduce 
a price cap for all non-household customers (1 leu/
kWh for electricity and 0.37 lei/kWh for natural gas);

•  the cap still concerns both the final price and the 
electricity/natural gas purchase component: for 
household customers – 0.8 lei/kWh final price for 
electricity, of which 0.336 lei/kWh electricity price 
component; 0.31 lei/kWh final price for natural gas, 
of which 0.200 lei/kWh natural gas price component; 
for non-household customers: 1 leu/kWh final price 
for electricity, of which 0.525 lei/kWh electricity price 
component; 0.37 lei/kWh final price for natural gas, of 
which 0.250 lei/kWh gas price component;

•  recovery of the capped amounts will be made 

according to the thresholds indicated above, in 
conjunction with the period of application: from 1 
November 2021 to 31 January 2022, by the difference

electricity supply activity and 12 lei/MWh for the 
natural gas supply activity, and for customers taken 
over as a last resort it is 80 lei/MWh for the electricity 
supply activity and 13.5 lei/MWh for the natural gas 
supply activity (the GEO establishes the value of the 
supply component, without specifying that it is a 
maximum).

•  for the purchase of electricity and natural gas, 
the monthly imbalance must not exceed 5% of 
the value of the energy delivered monthly to the 
end customers in the portfolio, what exceeds this 
threshold will not be recognized and settled; the 
purchase made for last resort supply does not 
have the balancing cost limited to 5%; there is the 
obligation to set up storage deposits of at least 
30% of the amount of natural gas required for 
the consumption of final customers from the own 
portfolio between April 1 and October 31, 2022.

•  the recovery of the capping amounts is carried out 
in full, provided that the limit of 5% of the cost with 
imbalances is respected; the losses recorded from 
the application of the support scheme between 
November 1, 2021 and March 31, 2022 can also be 
recovered (a supply cost of 73 lei/MWh is accepted 
and we limit the cost of imbalances to 5% of the 
purchase cost) - so that the recovery either at a 
high level, it is necessary to invoice all consumption, 
including in the FUI regime, until the beginning of 
May.

•  the supplier has the obligation to notify the 

customers about the changes arising from the 
application of the GEO provisions with the first invoice 
sent after the entry into force (the fine is between 100 
thousand and 400 thousand lei).

•  Law no. 206/2022 for the approval of the Government 

Emergency Ordinance no. 27/2022 regarding the 
measures applicable to final customers in the electricity 
and natural gas market during the period April 1, 
2022—March 31, 2023, as well as for the amendment 
and completion of some normative acts in the field of 
energy.

•  GEO no. 119/2022 - Emergency Ordinance for amending 

and supplementing the Government’s Emergency 
Ordinance no. 27/2022 regarding the measures 
applicable to final customers in the electricity and 
natural gas market 

•  during the period April 1, 2022—March 31, 2023, as well 

as for the amendment and completion of 

between the average monthly purchase price and 
the threshold of 525 lei/MWh for electricity and 250 
lei/MWh for natural gas. From 1 February, recovery 
will be made: for household customers – by the 
difference between the average monthly purchase 
price and the threshold of 336 lei/MWh for electricity 
and 200 lei/MWh for natural gas; for non-household 
customers – by the difference between the average 
monthly purchase price and the threshold of 525 lei 
for electricity and 250 lei/MWh for natural gas.

•  GEO no. 27/2022 on the measures applicable to final 
customers in the electricity and natural gas market 
during the period 1 April 2022-31 March 2023, as well as 
for the amendment and completion of some normative 
acts in the field of energy:

•  the period of application of the support (capping) 
scheme is 1 year, i.e. 1 April 2022 – 31 March 2023.

•  for electricity the final invoiced price is: maximum 

0.68 lei/kWh (VAT included) for household customers 
with an average monthly consumption (at the place 
of consumption in 2021) less than or equal to 100 kWh, 
maximum 0.8 lei/kWh (VAT included) for household 
customers with an average monthly consumption 
between 100 kWh and 300 kWh inclusive, maximum 
1 leu/kWh (VAT included) for non-household 
customers (household customers are included 
according to the average monthly consumption 
in 2021, the capped prices will apply for the whole 
period regardless of the quantity consumed. In the 
case of household customers who were not initially 
included in the cap but whose consumption in 2022 
is included, suppliers issue regularisation invoices in 
February 2023 using the capped price for the period 
in which they consumed).

•  for natural gas the final price invoiced is: maximum 
0.31 lei/kWh (VAT included) for domestic customers, 
maximum 0.37 lei/kWh (VAT included) for non-
household customers whose annual consumption 
of natural gas in 2021 at the place of consumption 
is no more than 50,000 MWh and for thermal energy 
producers; 

•  Customers connected after 1 January 2022 will 
be billed with a ceiling: domestic electricity 
customers at 0.68 lei/kWh (with minimum ceiling), 
domestic gas customers at 0.31 lei/kWh (category 
ceiling), non-household electricity customers at 
1 leu/kWh (category ceiling) and non-household 
gas customers at 0.37 lei/kWh (regardless of 
consumption);

•  customers who do not fall under the cap will have 
monthly adjustable prices, the variable being a 
correction component for the purchase price, so that 
the cost of the purchase (with PE within 5%) is passed 
on to the end customers. The exception is only the 
first two months of the application period, when the 
price is not adjustable. At the request of 

some normative acts in the field of energy for 85% 
of the average monthly consumption at the place 
of consumption in 2021, in the case of small and 
medium-sized enterprises (SMEs), of economic 
operators in the field of the food industry, of public 
institutions; maximum 1 leu/kWh (VAT included) for 
the full consumption of public and private hospitals, 
public and private educational institutions, nurseries, 
public and private social service providers. In order 
to benefit from the facilities provided by this GEO 
starting from September 1, 2022, the previously 
mentioned non-domestic customers have the 
obligation to submit to the electricity supplier a 
request accompanied by a declaration on their own 
responsibility, within a maximum of 30 days from 
the date of entry into force of this GEO. Beneficiaries 
falling under the provisions of the GEO who did not 
submit the request accompanied by a declaration 
on their own responsibility in September 2022, as well 
as those established after September 1, 2022, benefit 
from the provisions of this GEO starting from the 1st of 
the month following their submission to supplier.

•  the capped final billed price for natural gas is: 
maximum 0.31 lei/kWh (including VAT) in the 
case of domestic customers (it also applies to 
the consumption places of domestic customers 
connected starting from January 1, 2022 or for 
domestic customers) that have no history in 2021 
with the supplier, by reference to the monthly 
consumption achieved); a maximum of 0.37 lei/
kWh (including VAT) in the case of non-domestic 
customers whose annual natural gas consumption 
achieved in 2021 at the place of consumption is no 
more than 50,000 MWh, as well as in the case of 
heat energy producers (also applies in the case of 
places of consumption of non-household customers 
connected starting from January 1, 2022);

•   the compensation values, for each supplier, are 

determined by ANRE, within 30 days from the date 
of receipt of the settlement requests, submitted 
and registered at ANPIS (domestic customers), 
respectively ME (non-domestic customers) and, in a 
copy, to ANRE;

•  the maximum value of the weighted average price 
of electricity at which ANRE calculates the amounts 
to be settled from the state budget for electricity 
suppliers is 1,300 lei/MWh;

•  starting from September 1, 2022, during the period 
of application of the provisions of this emergency 
ordinance, electricity producers, aggregated 
electricity production entities, traders, suppliers 
that carry out trading activity and aggregators that 
transact quantities of electricity and /or natural gas 
on the wholesale market pay a contribution to the 
Energy Transition Fund calculated according to the 
methodology in this GEO;

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final customers, suppliers may also conclude supply 
contracts under conditions other than those laid 
down in the article referring to uncapped customers.

•  the subscription is included in the cap; if the price 

in the current contracts with end customers is lower 
than the capped price, the contract price applies.

•  the supply component is 73 lei/MWh for the 

electricity supply activity and 12 lei/MWh for the 
natural gas supply activity and for the customers 
taken over in the last resort it is 80 lei/MWh for the 
electricity supply activity and 13.5 lei/MWh for the 
natural gas supply activity (the GEO sets the value of 
the supply component, without specifying that it is a 
maximum).

•  for the purchase of electricity and natural gas, 
the monthly imbalance must not exceed 5% of 
the value of the energy delivered monthly to the 
end customers in the portfolio, which exceeds this 
threshold will not be recognized and settled; the 
purchase made for supply in last resort does not 
have balancing costs limited to 5%; the obligation 
to establish between 1 April and 31 October 2022 
storage deposits of at least 30% of the quantity of 
natural gas required for the consumption of end 
customers in its portfolio appears

•  the recovery of the capping amounts is fully realized 

under the condition of respecting the limit of 5% 
of the cost with imbalances; the losses registered 
from the application of the support scheme in the 
period 1 November 2021 – 31 March 2022 can also be 
recovered (a supply cost of 73 lei/MWh is accepted 
and we have the limit of the cost with imbalances 
at 5% of the purchase cost) – for the recovery to 
be at a high level it is necessary to invoice all the 
consumption, including in the SoLR regime, until the 
beginning of May.

•  the supplier has the obligation to notify the 

customers about the changes resulting from the 
application of the provisions of the GEO with the first 
invoice sent after the entry into force (the fine is 
between RON 100 th. And RON 400 th.).

•  Fines: between 1-5% of turnover for non-compliance 
with the cap and cost limits; between RON 20 th. And 
RON 400 th. For non-compliance with the provisions 
for supply as a last resort; between RON 100 th. And 
400 RON th. If we do not inform end customers, if 
we do not keep differentiated/segmented monthly 
customer records, if we do not identify customers for 
the application of the cap or if we do not submit the 
documents requested by ANRE.

•  GEO no. 42/2022 amending and supplementing 

Government Emergency Ordinance no. 27/2022 on the 
measures applicable to end customers in the electricity 
and natural gas market between 1 April 2022 and 31 
March 2023, as well as amending and supplementing 
certain regulatory acts in the field of energy:

•  bilateral contracts concluded on the wholesale 

market through direct negotiation are reported to 
ANRE by the contracting parties within 2 working days 
from the date of conclusion;

•  the successive sale of certain quantities of electricity 

or natural gas by traders and/or suppliers with 
trading activities, with the obvious purpose of 
increasing the price, is sanctioned by ANRE, with a 
fine of 5% of the turnover;

•  GEO no. 153/2022 — Emergency Ordinance for 

amending and supplementing the Government’s 
Emergency Ordinance no. 27/2022 regarding the 
measures applicable to final customers in the electricity 
and natural gas market during the period April 1, 
2022—March 31, 2023, as well as for the amendment 
and completion of some normative acts in the field 
of energy and the amendment of the Government 
Emergency Ordinance no. 119/2022 for the amendment 
and completion of the Government Emergency 
Ordinance no. 27/2022 regarding the measures 
applicable to final customers in the electricity and 
natural gas market during the period April 1, 2022—
March 31, 2023, as well as for the amendment and 
completion of some normative acts in the field of 
energy.

•  for the period January 1, 2023-March 31, 2025, the 

mechanism for the centralized purchase of electricity 
is established;

•  The mechanism provides - OPCOM, as the sole 

acquirer, buys electricity from producers (electricity 
producers with an installed power greater than or 
equal to 10 MW) and sells the purchased electricity 
to electricity suppliers who have signed contracts 
with customers final, to the electricity transport 
and system operator and electricity distribution 
operators, to cover own technological consumption; 
the price paid by OPCOM to electricity producers, 
for the quantities of electricity sold by them, is 450 
lei/MWh and OPCOM’s selling price to economic 
operators is also 450 lei/MWh (OPCOM has the right 
to charge market participants tariffs/ commissions 
at the level of costs registered by organizing 
the mechanism for the centralized purchase of 
electricity); in order to carry out the transactions, 
OPCOM organizes an annual procurement procedure, 
as well as an additional procurement procedure, 
each month, for the quantities of electricity delivered 
in the following month; the annual and monthly 
amounts of electricity constitute firm obligations 
of electricity producers and economic operators 
and are evenly distributed over all the settlement 
intervals of each month (contracts are concluded by 
signing, within a maximum of 3 working days).

•  the deadline for submission of documents for the 

•  Law no. 357/2022 — Law on the approval of the 

recovery of amounts capped by the application of 
GEO 118/2021 is extended from 15 May to 15 July 2022

•  ANRE publishes reporting templates for the 

settlement of the capped amounts, templates that 
are to be filled in for each category of customers 
benefiting from the cap (average unit costs must 
be calculated for both regulated network tariffs 
and charges); a fine of 50 thousand lei has been 
introduced for failure to comply with the instructions 
for uploading the templates and for failure to comply 
with the deadlines for rectifying the data uploaded 
on the IT platform and for resubmitting claims/
statements for settlement;

•  in the category of non-household natural gas 

customers who benefit from the cap are also thermal 
energy producers without exception.

•  Law no. 206/2022 for the approval of Government 
Emergency Ordinance no. 27/2022 on measures 
applicable to end customers in the electricity and 
natural gas market between 1 April 2022 and 31 March 
2023, as well as for the amendment and completion of 
some normative acts in the field of energy

•  The main new elements are the following:

•  a single invoice form will be introduced, drawn up by 

joint Order of ANRE and ANPC;

•  final electricity customers, who do not benefit from 
capping, are charged the minimum price between 
the price in the current supply contract and the final 
price resulting from the application of the GEO. 

•  final gas customers are charged the minimum of the 
contract price, the final capped price and the price 
resulting from the application of the GEO.

•  GEO no. 112/2022 on the establishment of some 
measures to stimulate investments financed by 
non-reimbursable external funds in the field of 
energy efficiency, renewable energy resources for 
large enterprises and small and medium enterprises, 
green energy from renewable sources for local public 
authorities, as well as some measures in the field of 
smart specialization, and for the modification and 
completion of some normative acts

•  regulates the general framework for establishing 

energy efficiency/renewable energy measures for 
large enterprises and SMEs with funding from non-
reimbursable external funds allocated under the 
Large Infrastructure Operational Programme;

•  amends and completes GEO 27/2022 with provisions 

on the elaboration and approval by ANRE in 
consultation with ANPC of the mandatory minimum 
content of natural gas/electricity bills so that the 
bills contain correct, transparent, clear, legible and 
easy to understand information, which will allow 
household customers to adjust their own 

Government’s Emergency Ordinance no. 119/2022 for 
the amendment and completion of the Government 
Emergency Ordinance no. 27/2022 regarding the 
measures applicable to final customers in the electricity 
and natural gas market during 

•  the period April 1, 2022—March 31, 2023, as well as for 
the amendment and completion of some normative 
acts in the field of energy

•  the final capped invoiced price of electricity supplied 

to household customers between January 1, 2023 
and March 31, 2025 is:

•  0.68 lei/kWh, including VAT, for consumption between 
January 1, 2023 and March 31, 2025 by the following 
categories of customers: a) household customers 
whose monthly consumption is between 0 and 
100kWh inclusive; b) household customers who use 
devices, appliances or medical equipment necessary 
to carry out treatments, based on an application and 
a declaration on their own responsibility submitted 
in writing to Electrica Furnizare S.A., following that 
the capped final billed price will apply from the 
first date of the month following the one in which 
the mentioned documents were submitted, c) 
household customers who have at least 3 dependent 
children up to 18 years old, respectively 26 years 
old, if they follow a form of education, based on a 
application and a written declaration submitted to 
Electrica Furnizare S.A., with the final invoiced price 
being applied from the first of the month following 
the one in which the mentioned documents were 
submitted, d) domestic customers, single-parent 
families, who have at least one child up to the age 
of 18, respectively 26 years old if he/she follows a 
form of education, on the basis of an application 
and a self-responsible declaration submitted in 
writing to Electrica Furnizare S.A following that the 
final invoiced price will apply from the first day of 
the month following the one in which the mentioned 
documents were submitted.

•  0.80 lei/kWh, including VAT, for consumption between 

January 1, 2023 and March 31, 2025 by household 
customers whose monthly consumption at the point 
of consumption is between 100.01 and 255 kWh. 
Electricity consumption between 255 and 300 kWh/
month is invoiced at the price of 1.3 lei/kWh, including 
VAT. If the consumption exceeds 300 kWh/month, the 
entire consumption is invoiced at the price of 1.3 lei/
kWh, including VAT.

•  1.3 lei/kWh, including VAT, for household consumers 

who are not provided for above.

•  the ceilings in terms of electricity prices applicable to 

non-domestic final customers, are:

•  maximum 1 leu/kWh, for 85% of the average monthly 
consumption achieved at the place of consumption 
(application and declaration on the 

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consumption and compare the commercial supply 
conditions, i.e. suppliers are obliged to implement in 
the information system the provisions on the unit bill 
starting with consumption in April 2023.

•  Law no. 248/2022 approving Government Emergency 
Ordinance no. 143/2021 amending and supplementing 
the Electricity and Natural Gas Law no. 123/2012 and 
amending some normative acts  
Approves GEO 143/2022 with amendments and 
additions regarding:

•  definition of renewable energy, definition of 
economic efficiency, definition of prosumer 
(completed with mobile unit equipped with electricity 
generation systems during regenerative braking);

•  ANRE’s obligations to promote the comparator, 
provide access to an application programming 
interface (API) for software developers, publish 
aggregated data within 30 days;

•  generators are obliged to trade at least 40% of their 
annual electricity production through contracts on 
electricity markets other than DAM, PI and PE (except 
for generation capacities commissioned after 1 June 
2020);

•  the supplier has the obligation to ensure at least 40% 
of the electricity necessary to cover the consumption 
of the final customers in the portfolio from its own 
production or through the purchase by forward 
contracts on the electricity markets, other than DAM, 
PI and PE;

•  prosumers, natural and legal persons and local 

public administration authorities that own power 
plants producing energy from renewable sources 
are exempted from the obligation of annual and 
quarterly purchase of green certificates for their 
own final consumption; prosumers can also request 
quantitative compensation of regenerative energy 
resulting from regenerative braking;

•  in the case of household customers, authorised 

natural persons, sole proprietorships, family 
businesses and public institutions connecting to 
the low voltage grid, the distribution operator will 
reimburse the applicant within 5 years, the actual 
cost of the design and execution of the connection, 
up to an average value of a connection, established 
according to a methodology approved by ANRE, the 
recovery of the costs of connection of household 
customers is made with accelerated depreciation 
over a period of 5 years, through distribution tariffs;

•  In the case of non-household customers, the value 
of the connection work is borne in full by them, the 
resulting assets do not become the property of the 
distribution operator but are only transferred to the 
operator for exploitation;

personal responsibility of the legal representative) 
for: SMEs, Regional Operators (Law no. 51/2006), 
Transport Company with The Bucharest Metro 
«Metrorex» – S.A., as well as the airports, which are 
subordinated/coordinated or under the authority 
of the Ministry of Transport and Infrastructure, 
the economic operators in the field of the food 
industry, identified by CAEN code 10, as well as those 
in the field of agriculture and fishing, identified 
by CAEN code 01 and 03, local public authorities 
and institutions, decentralized public services of 
ministries and other central bodies, companies and 
commercial companies of county, municipal or local 
interest, autonomous governments and all public 
and private entities that provide a public service, 
institutes national research and development;

•  maximum 1 leu/kWh, for the full consumption of 
public and private hospitals, public and private 
educational units, nurseries and public and 
private providers of social services provided in the 
Nomenclature of social services;

•  a maximum of 1 leu/kWh, including VAT, for 85% of 
the monthly consumption made at the place of 
consumption of public institutions, other than those 
previously provided for, as well as for the places 
of consumption belonging to the cults officially 
recognized in Romania;

•  non-household customers who do not fall into one 
of the above categories pay the price capped at a 
maximum of 1.3 lei/kWh, including VAT.

•  GEO no. 192/2022 — Emergency Ordinance for amending 

and supplementing the Government’s Emergency 
Ordinance no. 27/2022 regarding the measures 
applicable to final customers in the electricity and 
natural gas market during the period April 1, 2022—
March 31, 2023, as well as for the amendment and 
completion of some normative acts in the field of 
energy.

•  benefit from the final invoiced electricity price of a 
maximum of 0.68 lei/kWh for household customers 
whose place of consumption is occupied by persons 
who use devices, appliances or medical equipment 
powered from the electrical network, necessary 
for carrying out medical treatments based on 
confirmation from the specialist doctor and of a 
request submitted to the supplier; for the month of 
January 2023, instead of the medical confirmation, 
a self-responsible declaration is submitted; the 
capped final invoiced price is applied from the first 
day of the month following the one in which the 
previously provided documents were submitted;

•  capping also applies to places of consumption 

used on the basis of a rental contract, the following 
documents are submitted to the supplier by the 
household customer: the application regarding the 
application of the capped price, the copy of

•  GEO no. 119/2022 – Emergency Ordinance amending 

and supplementing Government Emergency Ordinance 
no. 27/2022 on the measures applicable to end 
customers in the electricity and natural gas market 
between 1 April 2022 and 31 March 2023, as well as 
amending and supplementing certain regulatory acts 
in the field of energy

•  the period of application of the support (capping) 

scheme is 1 September 2022-31 August 2023,

•  the final capped invoiced price for electricity is: 

maximum 0.68 lei/kWh, (VAT included) for household 
customers whose average monthly consumption 
at the place of consumption in 2021 was between 
0-100 kWh inclusive; maximum 0.80 lei/kWh (VAT 
included) for household customers whose average 
monthly consumption at the place of consumption 
in 2021 was between 100.01-300 kWh – for a monthly 
consumption which is maximum 255 kWh; maximum 
1 leu/kWh (VAT included) for 85% of the average 
monthly consumption at the place of consumption 
in 2021 for small and medium-sized enterprises 
(SMEs), economic operators in the food industry, 
public institutions; maximum 1 leu/kWh (VAT 
included) for the full consumption of public and 
private hospitals, public and private education units, 
nurseries, public and private social service providers. 
In order to benefit from the facilities provided for 
by this GEO, starting from 1 September 2022, the 
above-mentioned non-household customers are 
obliged to submit to their electricity supplier a 
request accompanied by a declaration on their own 
responsibility, within a maximum of 30 days from the 
date of entry into force of this GEO. Beneficiaries who 
fall within the provisions of the GEO and who have 
not submitted their application accompanied by a 
declaration on their own responsibility in September 
2022, as well as those established after 1 September 
2022, shall benefit from the provisions of this GEO 
starting from the 1st of the month following their 
submission to the supplier.

•  the final capped invoiced price for natural gas is: 

maximum 0.31 lei/kWh (VAT included) for household 
customers (also applies to consumption sites of 
household customers connected from 1 January 2022 
or for household customers who have no history with 
the supplier in 2021, based on monthly consumption); 
maximum 0.37 lei/kWh (VAT included) for non-
household customers whose annual consumption 
of natural gas in 2021 at the consumption site is 
50,000 MWh, as well as in the case of thermal energy 
producers (also applies to the consumption places 
of non-household customers connected as of 1 
January 2022);

•  the values and tranches foreseen for the capping 

scheme may be modified by Government decision, 
depending on the developments on the domestic 
and international electricity and natural gas markets 

the rental contract, the tenant’s self-responsible 
declaration that he falls under one among the 
categories benefiting from Ceilings or medical 
confirmation, as the case may be.

•  the ceiling on electricity is applied to all places of 

consumption of a household customer, depending 
on the consumption made at each of them.

•  the annual and monthly centralized procurement 
mechanisms (MACEE) are modified in terms of the 
transmission of forecasts and purchased quantities, 
guarantees, payments, etc.

•  Law no. 5/2023 — Law on the amendment and 

completion of Law no. 220/2008 for the establishment of 
the system for the promotion of energy production from 
renewable energy sources

•  is amended and supplemented Law no. 220/2008 

regarding the trading of green certificates after the 
expiration of the accreditation period, the recovery of 
improperly issued green certificates, etc.

•  Law no. 15/2023 - Law on the approval of the 

Government Emergency Ordinance no. 3/2022 for 
the amendment and completion of the Government 
Emergency Ordinance no. 118/2021 regarding the 
establishment of a compensation scheme for the 
consumption of electricity and natural gas for the 
cold season 2021—2022, as well as for completing 
Government Ordinance no. 27/1996 regarding the 
granting of facilities to people who live or work in some 
localities in the Apuseni Mountains and in the „Danube 
Delta” Biosphere Reserve

•  GEO no. 3/2022 is approved. 

•  GEO no. 32/2023 – Emergency Ordinance for amending 
and supplementing Government Emergency Ordinance 
no. 166/2022 regarding some measures to provide 
support to categories of vulnerable people for the 
compensation of the energy price, partially supported 
by external non-reimbursable funds.  
GEO 166/2022 is amended/supplemented with the 
following specifications: 

•  if several beneficiaries of the support are domiciled 

or reside at a place of consumption, it will be granted 
only once per place of consumption, regardless of 
whether or not it is the holder of the supply contract, 
provided that the place of consumption coincides 
with the domicile or the residence of the beneficiary 
of support, respectively with the address mentioned 
in the document that certifies the inclusion in one of 
the beneficiary categories; 

•  to make a payment by means of energy cards, the 

beneficiaries must present the following documents: 
the energy card valid on the date on which the 
payment is made, the identity document of the 
beneficiary, in original; supporting documents 
proving the current and/or outstanding debt to 

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Ministry of Finance according to GEO no. 186/2022), 
are used to replenish the account – the Energy 
Transition Fund (according to the provisions of GEO 
no. 27/2022 regarding the measures applicable to 
end customers from the electricity and natural gas 
market in the period 1 April 2022- 31 March 2023, as 
well as for the amendment and completion of some 
normative acts in the field of energy, approved with 
amendments and additions by Law No. 206/2022, 
with subsequent amendments and additions.) 
and will be used for payment by ME/ANPIS of 
compensations to suppliers. 

•  GEO no. 90/2023 – Emergency ordinance for the 
approval of some measures to reduce budget 
expenditures for the year 2023 in order to fit into the 
budget deficit target assumed by the Convergence 
Program, as well as for the modification and completion 
of some normative acts. 

•  is amended/supplemented art. 9 para. 10 and 12 
of GEO 27/2022, with subsequent amendments 
and additions, specifying that the payments 
are made from the Energy Transition Fund and 
from other legally constituted sources (ANRE will 
transmit the values related to the compensations 
to the National Agency for Payments and Social 
Inspection, respectively the Ministry of Energy, 
and they make the payment to suppliers of the 
amounts representing the value of compensation for 
consumption made from the Energy Transition Fund 
and from other legally constituted sources).

and on the geopolitical developments in Romania’s 
neighbourhood;

•  the electricity and gas supply component is 73 lei/
MWh for electricity supply and 12 lei/MWh for gas 
supply;

•  the amounts of compensation for each supplier shall 
be determined by ANRE within 30 days from the date 
of receipt of the settlement requests submitted and 
registered with ANPIS (domestic customers) and ME 
(non-domestic customers) respectively, and copied 
to ANRE;

•  the maximum value of the weighted average 
electricity price at which ANRE calculates the 
amounts to be settled from the state budget for 
electricity suppliers is 1,300 lei/MWh;

•  Starting from 1 September 2022, during the period 
of application of the provisions of this Emergency 
Ordinance, electricity generators, aggregated 
electricity generating entities, traders, suppliers 
carrying out trading activities and aggregators 
trading quantities of electricity and/or natural gas on 
the wholesale market shall pay a contribution to the 
Energy Transition Fund calculated according to the 
methodology of this GEO;

•  bilateral contracts concluded on the wholesale 

market by direct negotiation are reported to ANRE by 
the contracting parties within 2 working days from 
the date of conclusion;

•  the successive sale of quantities of electricity or 

natural gas by traders and/or suppliers with trading 
activities, with the deliberate aim of increasing the 
price, is sanctioned by ANRE with a fine of 5% of the 
turnover;

•  GEO no. 153/2022 – Emergency Ordinance for amending 
and supplementing Government Emergency Ordinance 
no. 27/2022 on the measures applicable to end 
customers in the electricity and natural gas market 
between 1 April 2022 and 31 March 2023, as well as 
for amending and supplementing certain regulatory 
acts in the field of energy and amending Government 
Emergency Ordinance no. 119/2022 amending and 
supplementing Government Emergency Ordinance No. 
27/2022 on the measures applicable to final customers 
in the electricity and natural gas market between 1 
April 2022 and 31 March 2023, as well as amending and 
supplementing certain regulatory acts in the field of 
energy

•  for the period from 1 January 2023 to 31 March 2025, 

the centralised electricity purchase mechanism shall 
be established 

•  The mechanism provides – OPCOM, as the single 
buyer, buys electricity from producers (electricity 
producers with an installed capacity of 10 MW 
or more) and sells the purchased electricity to 
electricity suppliers that have contracts with end 

the energy supplier that must be issued after 1 
January 2023 and for energy consumption after 
1 February 2022 or, as the case may be, the debt 
validation certificate obtained from the homeowners 
association. 

•  Law no. 206/2023 – Law on the approval of the 

Government Emergency Ordinance no. 153/2022 for 
the amendment and completion of the Government 
Emergency Ordinance no. 27/2022 regarding the 
measures applicable to final customers in the electricity 
and natural gas market during the period 1 April 
2022— 31 March 2023, as well as for the amendment 
and completion of some normative acts in the field 
of energy and the amendment of the Government 
Emergency Ordinance no. 119/2022 for the amendment 
and completion of the Government Emergency 
Ordinance no. 27/2022 regarding the measures 
applicable to final customers in the electricity and 
natural gas market during the period 1 April 2022— 
31 March 2023, as well as for the amendment and 
completion of some normative acts in the field of 
energy

•  GEO no. 153/2022 is approved (GEO no. 27/2022, GEO 
no. 119/2022 and GEO no. 153/2022 are amended), 
with modifications regarding the recognized average 
purchase price (it drops from 1300 lei/MWh to 900 
lei /MWh), the regularization of non-domestic final 
customers, who did not benefit from capping in 2021, 
but who, depending on the consumption achieved 
in 2022, have the right to benefit (the deadline for 
regularization is the second semester of 2023), 
the application of the minimum price between the 
price resulting from the application of the GEO, the 
capped price and the contract price, the application 
of the adjustment component (failure to fulfil the 
obligations listed above is sanctioned with a fine of 
between 1% and 5% of the turnover). 

•  Law no. 237/2023 – Law on the integration of renewable 
and low-carbon hydrogen in the industry and transport 
sectors

•  has as its object the establishment of measures for 

fuel suppliers and for industrial hydrogen consumers, 
in order to integrate hydrogen from renewable 
sources and with low carbon emissions in the 
industry and transport sectors. 

•  Ordinance no. 30/2023 – Ordinance for the 

establishment of budgetary measures regarding the 
use of the solidarity contribution established by the 
Government’s Emergency Ordinance no. 186/2022 
on some measures to implement Council Regulation 
(EU) 2022/1.854 of 6 October 2022 on an emergency 
intervention to address the problem of high energy 
prices

•  the amounts corresponding to the solidarity 

contribution collected in 2023 (in the account of the 

customers, electricity transmission and system 
operators and electricity distribution operators to 
cover their own technological consumption; the 
price paid by OPCOM to electricity producers for the 
quantities of electricity sold by them is 450 lei/MWh 
and the OPCOM sales price to economic operators 
is also 450 lei/MWh (OPCOM has the right to charge 
market participants tariffs/commissions at the level 
of the costs incurred through the organisation of 
the centralised electricity purchase mechanism); 
OPCOM organises an annual purchase procedure 
and an additional purchase procedure each month 
for the quantities of electricity to be delivered in the 
following month; the annual and monthly quantities 
of electricity are binding obligations of the electricity 
producers and economic operators and are 
distributed evenly over all the settlement intervals of 
each month (the contracts are concluded by signing 
within a maximum of 3 working days).

•  GEO no. 163/2022 – Emergency Ordinance for the 

completion of the legal framework for the promotion of 
the use of energy from renewable sources, as well as 
for the modification and completion of some normative 
acts

•  completes the legal framework established by Law 
no. 220/2008, by laying down rules on: financial 
support for electricity from renewable sources, self-
consumption of this type of electricity, the use of 
energy from renewable sources in the heating and 
cooling and transport sectors, regional cooperation 
between Romania and Member States and third 
countries, guarantees of origin for energy from 
renewable sources, applicable administrative 
procedures, regulations and codes, information 
and training of both relevant stakeholders and 
consumers on the practical, including technical 
and financial, aspects of the development and use 
of energy from renewable sources, sustainability 
and greenhouse gas emission reduction criteria for 
biofuels, bioliquids and biomass fuels. Defines new 
notions: prosumers acting collectively, renewable 
energy community, etc.

•  the central public administration authorities and 
ANRE may apply taxes and tariffs to renewable 
energy consumers in one or more of the following 
cases: if self-produced renewable electricity is 
effectively supported through support schemes, 
as of 1 December 2026, if the installed capacity of 
the prosumers’ power plants exceeds 8% of the 
total installed capacity of the national electricity 
generation capacity or if self-produced renewable 
electricity is produced in installations with a total 
installed capacity of electricity above 30 kW.

•  GEO no. 166/2022 – Emergency Ordinance on some 

measures for granting support to vulnerable categories 
of people to compensate for the price of energy, partly 
supported by non-reimbursable external funds

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•  - 

people with low incomes (pensioners of the 

public pension system whose monthly income is less 
than or equal to RON 2,000, people with serious, severe 
or medium disability, whose own monthly income is 
less than or equal to RON 2,000 and other categories) 
will receive from the state this year an aid of RON 
1,400, money that they can use to pay bills or debts for 
electricity, centralized thermal energy, gas, gasoline, 
firewood and others. The support for paying energy 
bills will be RON 1,400, which will be granted in two 
equal instalments of RON 700 each, in February and 
September 2023.

•  Law no. 357/2022 – Law on the approval of Government 
Emergency Ordinance no. 119/2022 for the modification 
and completion of Government Emergency Ordinance 
no. 27/2022 on the measures applicable to final 
customers in the electricity and natural gas market 
between 1 April 2022 and 31 March 2023, as well as for 
the modification and completion of some normative 
acts in the field of energy

•  GEO no. 119/2022 is approved for the modification 
and completion of GEO no. 27/2022 with some 
amendments; the electricity price cap is extended 
until 31 March 2025;

•  the final capped invoiced price of electricity 
supplied to household customers between 1 
January 2023 and 31 March 2025 is:

•  0.68 lei/kWh, VAT included, for consumption during 
the period 1 January 2023 – 31 March 2025 by the 
following categories of customers: a) household 
customers whose monthly consumption is 
between 0 and 100kWh inclusive; b) household 
customers who use medical devices, appliances 
or equipment necessary for treatments, based 
on an application and a declaration on their own 
responsibility submitted in writing to Electrica 
Furnizare S.A., and the capped final invoiced 
price will be applied from the date of the fifth 
of the month following the month in which the 
mentioned documents have been submitted, c) 
domestic customers who have at least 3 children 
under 18 years of age, respectively 26 years of 
age, in case they follow a form of education, on 
the basis of a request and a declaration on their 
own responsibility submitted in writing to Electrica 
Furnizare S.A., following that the final invoiced 
price will be applied from the date of the fifth 
of the month following the month in which the 
mentioned documents were submitted, d) single-
parent families, who have at least one child under 
18 years of age, respectively 26 years of age in 
case the child is attending a form of education, 
on the basis of an application and a declaration 
on their own responsibility submitted in writing to 
Electrica Furnizare S.A., the final billed price will 
apply from the first day of the month following 
the one in which the mentioned documents were 
submitted.

•  0.80 lei/kWh, VAT included, for consumption 
during the period 1 January 2023 – 31 March 
2025 by household customers whose monthly 
consumption at the place of consumption 
is between 100.01 and 255 kWh. Electricity 
consumption between 255 and 300 kWh/month is 
invoiced at a price of 1.3 lei/kWh, VAT included. If 
consumption exceeds 300 kWh/month, the entire 
consumption is invoiced at the price of 1.3 lei/kWh, 
VAT included.

•  1.3 lei/kWh, VAT included, for household consumers 

not covered above.

•  the ceilings for electricity prices applicable to non-

household final customers are: 

•  maximum 1 leu/kWh, for 85% of the average 

monthly consumption at the place of 
consumption (application and affidavit of the 
legal representative) for: SMEs, Regional Operators 
(Law no. 51/2006), Bucharest Metro Transport 
Company “Metrorex” – S.A., as well as airports, 
which are under the subordination/coordination 
or authority of the Ministry of Transport and 
Infrastructure, economic operators in the field of 
food industry, identified by CAEN code 10, as well 
as those in the field of agriculture and fishing, 
identified by CAEN codes 01 and 03, local public 
authorities and institutions, deconcentrated 
public services of ministries and other central 
bodies, companies and commercial companies 
of county, municipal or local interest, autonomous 
companies and all public and private entities 
providing a public service, national research and 
development institutes; 

•  maximum 1 leu/kWh, for the full consumption of 
public and private hospitals, public and private 
education units, nurseries and public and private 
providers of social services as listed in the 
Nomenclature of Social Services; 

•  maximum 1 leu/kWh, VAT included, for 85% of 

the monthly consumption made at the place of 
consumption of public institutions, other than 
those mentioned above, as well as for places of 
consumption belonging to officially recognized 
cults in Romania; 

•  non-household customers who do not fall into one 
of the above categories pay a price capped at a 
maximum of 1.3 lei/kWh, including VAT.

•  As regards the price of natural gas to non-household 
customers, the beneficiaries of the price capped at a 
maximum of 0.37 lei/kWh, including VAT, include non-
household customers in industrial parks regulated 
by Law no. 186/2013, as well as those in closed 
distribution systems defined under Law no. 123/2012. 
In addition, the consumption limit of 50,000 MWh 
will refer to the year prior to the current year (not to 
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customers connected after 1 January 2022, the 
cap will apply only within the limit of an annual 
consumption of no more than 50,000 MWh. 

•  the principle is maintained that, when billing 

electricity and natural gas, suppliers must apply the 
lower of (i) the maximum capped final price, (ii) the 
contract price or (iii) the final price calculated in 
accordance with the provisions of Articles 5 and 6, 
only in the case of natural gas.

•  GEO no. 192/2022 – Emergency Ordinance amending 

and supplementing Government Emergency Ordinance 
no. 27/2022 on the measures applicable to end 
customers in the electricity and natural gas market 
between 1 April 2022 and 31 March 2023, as well as 
amending and supplementing certain regulatory acts 
in the field of energy:

•  the final invoiced price for electricity of maximum 
0.68 lei/kWh is applied to household customers 
whose place of consumption is inhabited by persons 
who use medical devices, appliances or equipment 
supplied from the electricity grid, necessary for 
medical treatment on the basis of a confirmation 
from the medical specialist and a request submitted 
to the supplier; for January 2023, instead of the 
medical confirmation, a declaration on own 
responsibility is submitted; the final invoiced price 
capped is applied from the date of the fifth of the 
month following the month in which the documents 
mentioned above were submitted;

•  the capping also applies to places of consumption 
used on the basis of a rental contract, the following 
documents must be submitted to the supplier by 
the household customer: the application for the 
application of the capped price, the copy of the 
rental contract, the tenant’s affidavit that he/she 
falls into one of the categories benefiting from the 
capping or the medical confirmation, as the case 
may be.

•  The electricity cap applies to all consumption 

points of a household customer according to the 
consumption at each of them.

•  the annual and monthly centralised purchasing 
mechanisms (MACEE) are modified with regard 
to the transmission of forecasts and quantities 
purchased, guarantees, payments, etc.

b.  Secondary legislation:

b.  Secondary legislation:

During the reporting period, changes and additions to the 
regulatory framework were made in the following areas of 
activity and regulation: 

During the reporting period, changes and additions to the 
regulatory framework were made in the following areas of 
activity and regulation: 

•  ANRE Order no. 64/2022 – amending and 

supplementing the Performance Standard for the 
electricity distribution service, approved by Order 
no. 46/2021 of the President of the National Energy 
Regulatory Authority.

•  the reading interval of the metering group index 
is set by contract and can be longer than one 
month, but must not exceed 3 months for household 
customers and 6 months for non-household end 
customers, for consumers it is one calendar month, 
for users benefiting from smart metering systems 
OD is obliged to provide access to historical 
consumption data (failure to comply with these 
deadlines leads to the payment of compensation);

•  sets a timetable for monitoring substations and 

transformer points – final implementation deadline is 
01.01.2028

•  ANRE Order no. 131/2022 – Order approving the 

Performance Standard for the natural gas distribution 
service 

•  is established: the level of general performance 

indicators for the following activities (i.e. registration 
and settlement of complaints/claims/requests 
from users regarding the gas distribution service, 
access/contracting of the gas distribution service, 
compliance with the conditions for delivery/take-
back of gas; connection to the gas distribution 
system; restoration of land and/or property affected 
by the execution of works on the gas distribution 
system objectives; the interruption/limitation/
resumption of the natural gas distribution service), 
the compensations that the distribution operators 
are obliged to pay in case of non-compliance 
with their obligations under this Order; the specific 
performance indicators of the distribution operators’ 
activities; the way of reporting by the distribution 
operators of the information on the quality and 
performance of their activities; the way of evaluating 
the activities of the distribution operators. 

•  ANRE Order no. 3/2022 approving the Regulation on 

the organization and operation of the online platform 
for changing the electricity and gas supplier and for 
contracting the supply of electricity and natural gas:

•  application deadline – 28 August 2022;

•  initiated in order to achieve the objective set by the 

European legislation on the change of supplier within 
24 hours, starting from 2026;

•  ANRE is the administrator and operator of the 

platform where data will be uploaded by

•  ANRE order no. 5/2023 — Order for the approval of 
the Regulation for the supply of electricity to final 
customers, as well as for the modification and 
completion of some orders of the ANRE president:

•  enters into force on 06 February 2023 (with the 
exception of some provisions that have other 
application dates);

•  the Regulation on the supply of electricity to final 

customers is approved;

•  the framework contract for the provision of the 

electricity distribution service concluded between 
the concessionaire distribution operator and the 
supplier (approved by ANRE Order no. 90/2015) is 
amended/completed, the Methodology for setting 
tariffs for the electricity distribution service by 
operators, other than concessionaire distribution 
operators (approved by ANRE Order no. 102/2016);

•  is repealed ANRE Order no. 235/2019 for the approval 

of the Regulation for the supply of electricity to 
final customers, ANRE Order no. 171/2020 for the 
approval of the Electricity Supply Conditions by 
the suppliers of last resort, ANRE Order no. 181/2018 
for the approval of the Procedure regarding the 
regime of financial guarantees established by final 
customers at the disposal of electricity suppliers and 
for the amendment of the Regulation on the supply 
of electricity to final customers, ANRE Order no. 
85/2015 for the approval of the tripartite framework 
agreement concluded between the supplier, the 
network operator and the final customer of the 
network contract and of the multiparty framework 
agreement concluded between the final customer, 
suppliers and the network operator, ANRE Order no. 
96/2015 for the approval of the Regulation regarding 
the activity of informing final customers of electricity 
and natural gas;

•  through the Regulation on the supply of electricity 
to final customers, new notions were introduced 
regarding the supply contract with dynamic prices 
(obligation to make an offer/contract with dynamic 
prices for EFSA) and active customers with new 
obligations for the supplier (existing condition of 
the energy supply contract both for the place of 
consumption and for the place of consumption and 
production);

•  the main provisions amended/supplemented by the 

new Regulation are:

•  to the vulnerable client, they included among 
the facilities granted and the deferment of the 
payment of the invoice, upon request, for a period 
of at least 

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•  end customers, suppliers, network operators, 

aggregators, etc. (including the standard offers 
of suppliers), which will mediate the process 
of changing supplier through the necessary 
administrative and technical steps and through 
which customers will be able to contract a new 
supplier;

•  The regulation also details the rules on the 

conclusion of the supply contract, i.e. the actual 
procedure for changing the supplier, which will 
replace the current procedure.

•  ANRE Order no. 91/2022 – for the approval of the 

Regulation on the last instance supply of electricity

•  - 

The Regulation for the designation of the last 

instance suppliers of electricity – Ord. ANRE no. 
188/2020, the Regulation on the taking over by 
suppliers of last resort of consumption places of 
final customers who have not ensured the supply 
of electricity from any other source – Ord. ANRE no. 
242/2020 and the Framework Contract for the supply 
of electricity to final customers taken over by the 
supplier of last resort.

•  - 

the introduction of the obligation for the SoLR 
with the largest market share in a network area to 
take over consumption places which, at the date 
of entry into force of ANRE Order No 91/2022, do not 
have a supply contract and are not disconnected;

•  - 

introduction of an alternative system for 
nominating SoLRs that automatically takes over 
customers on a monthly rotation basis. Thus, for 
this purpose, the list of the SoLRs is established in 
descending order of market share, each SoLR in the 
list being nominated in turn, on a monthly basis, to 
automatically take over customers who are without a 
supplier in that month. For periods when no support 
measures are imposed by primary legislation, the 
nomination system implies the obligation for the 
SoLR to transmit the last resort price at least 7 days 
before the month for which the nomination is made, 
so that the SoLR Nomination List is known, within 
a timeframe that allows the transmission of the 
takeover request;

•  - 

the introduction of automatic takeover by the 
nominated SoLR of non-household customers with a 
power approved by the technical connection notice/
connection certificate of no more than 1 MVA, in the 
event of termination of the electricity supply contract 
by the current supplier; 

•  - 

Limiting the period of time a customer can be in 

the portfolio of an SoLR to 12 months for household 
and non-household customers up to 1 MVA and 
6 months for non-household customers above 1 
MVA. 30 days prior to the date of termination of 
the contractual relationship, the SoLR shall notify 
customers of the termination of the electricity supply, 
or, if applicable, the extension of the supply 

3 months (submission to the provider with whom 
he has access to medical documents for people 
who require life support by electrical devices for 
the insurance continuity of supply);

•  the acceptance of household customers was 

extended with new categories;

•  to the standard offers for non-households, the 

definition of microenterprise from L123 has been 
aligned (categorization by consumption, not by 
turnover/number of employees). The obligation 
to display standard offers at the single points of 
contact has disappeared. In the information of the 
offer, the unit value of the taxes / commissions / 
fees / contributions will be entered. It is no longer 
mandatory to include the main conditions from 
the contract in the offer, but new elements are 
introduced, to be included in the offer;

•  a place of consumption can be supplied by 

several suppliers without being conditioned by the 
power of 1 MW.

•  the minimum elements of the tripartite/

multipartite convention are specified without 
imposing a framework convention;

•  in the contract, the unit value of the taxes / 

commissions / fees / contributions will be entered 
in the same way as in the offer. A new price 
element appears – Final invoiced price = supply 
price + all fees, taxes unit). At the conclusion of the 
contract, the supplier’s web page must contain 
links to POSF;

•  when invoicing, there are explicit mentions 
of normative acts incident to the period of 
application (i.e. capping). For all household 
customers (including eligible household – 
competitive) and SoLR customers, the billing 
period is monthly. For all household customers, 
for consumption made starting from 01 April 2023, 
the invoice model for SU is respected. All invoices 
for consumption registered starting from 01 April 
will contain a minimum set of information. New 
clauses for payment scheduling.

•  ANRE order no. 9/2023 — Order regarding the 

establishment of the mandatory quota for the purchase 
of green certificates for the year 2022

•  the mandatory rate for 2022 was set at the level 

of 0.4934314 CV/MWh (compared to 0.5014313 CV/
MWh the estimated rate for 2022 and 0.449792 
CV/MWh the mandatory rate for 2021);

•  enters into force on 01 March 2023.

•  ANRE order no. 10/2023 — Order for the approval of 

the Methodology regarding the determination of the 
minimum stock level of natural gas that the holders of 
the natural gas supply licenses have the obligation to 
constitute in the underground storage warehouses

•  the Methodology regarding the determination of the 
minimum natural gas stock level that the holders of

period, specifying the period for which it will supply 
electricity. If, at the end of the period, customers 
have not succeeded in concluding a contract on the 
competitive market, they may continue to benefit 
from the services of an SoLR if they so request.

•  ANRE Order no. 110/2022 – amending and 

supplementing the Regulation on the last resort supply 
of natural gas, approved by Order of the President of 
the National Energy Regulatory Authority no. 173/2020

•  in order to ensure the supply under the LR regime 
to final customers who do not have supply from 
any other source, ANRE shall designate a number 
of at least 7 SoLRs, whose cumulative market share, 
calculated for the competitive market by the equal 
weight of the number of consumption places of final 
customers and the quantity of natural gas sold to 
them in the last 12 months, shall be at least 70%. The 
shares on the competitive market of the suppliers 
designated as SoLR at the time of the analysis shall 
be taken into account, except for those for which a 
decision has been issued stating the termination of 
the applicability of the SoLR designation decision;

•  if a supplier has been designated as an SoLR by 

selection based on availability and eligibility, it may 
resign from the SoLR status, upon request, if the 
following cumulative conditions are met: a) at least 
1 year has passed since the date of designation, b) 
at the date it wishes to resign, it does not have in its 
portfolio any clients taken over in the SoLR;

•  if a supplier has been designated as an SoLR by 
selection based on eligibility and capability, it 
may renounce the SoLR status, upon request, if the 
following cumulative conditions are met: a) at least 1 
year has passed since the date of designation, b) the 
list of designated SoLRs contains at least 7 suppliers 
whose cumulative market share is at least 70%, c) at 
the date it wishes to renounce, it does not have in its 
portfolio customers taken over in the SoLR;

•  For consumption sites with an annual consumption 
less than or equal to 28,000 MWh, the SoLR shall 
decide at its discretion whether to extend the period 
for ensuring the supply of natural gas under the LR 
regime to the consumption sites of customers taken 
over after the minimum period has been reached 
and shall notify the customers taken over at least 
30 days before the end of the supply of natural gas 
under the LR regime. The notification may contain 
attached an offer to supply natural gas on a 
competitive basis;

•  the activity of supplying natural gas under the LR 
regime for final customers whose consumption 
places are automatically taken over is carried out 
in compliance with the framework contract for the 
supply of gas under the LR regime: 

a)  without the need to sign the contract with the 
SoLR, for the consumption site with an annual 

the natural gas supply licenses are obliged to set up 
in the underground storage warehouses is approved 
– Natural gas suppliers, for the quantities delivered 
to final customers (PET direct customer) who have 
opted for the purchase of natural gas directly 
from natural gas producers, fulfil their obligation 
regarding the establishment of the minimum stock of 
natural gas by:

•  storing natural gas in one’s own name, by 

concluding contracts for underground natural 
gas storage with one of the holders of the license 
to operate underground natural gas storage 
systems; and/or

•  the conclusion, by 31 May of each year, of sales-
purchase contracts whose object is natural gas 
quantities from underground natural gas storage 
facilities, stored by another natural gas supplier; 
and/or

•  concluding mandate contracts with another 

supplier, in order to store natural gas.

•  ANRE order no. 14/2023 — Order regarding the 

modification and completion of some orders of the 
president of the National Energy Regulatory Authority 
and repealing the Order of the president of the National 
Energy Regulatory Authority no. 96/2015 for the approval 
of the Regulation on the activity of informing end 
customers of electricity and natural gas

•  amendment of the Regulation regarding the supply 

of natural gas to final customers, approved by Order 
of the President of ANRE no. 29/2016; definitions 
were introduced for each of the components of the 
final invoiced price; it has been stipulated that in 
the case of vulnerable customers it is possible to 
pay the invoice in installments, upon request, for 
a period of at least 3 months or agreed upon by 
the parties; the provisions of the Regulation were 
correlated with those of Order 3/2022 – POSF; the 
mandatory information to be included in the invoice 
has been updated, establishing the essential priority 
information that must be included on the first page 
of the invoice, so that the end customer knows the 
invoiced consumption and how much he has to pay 
for it, and on the second page of the invoice to detail 
this priority information;

•  amendment of ANRE Order no. 106/2014 regarding 

the methods of informing end customers by natural 
gas suppliers regarding the commercial conditions 
of natural gas supply; the provisions related to the 
content of the standard offer have been completed/
detailed, in the sense of detailing the final price per 
component; a provision was included according 
to which it must be specified whether the price 
of natural gas within the standard offer is fixed or 
variable;

•   the repeal of ANRE Order no. 96/2015, regarding 
the provision of information to final natural gas 
customers by supplier

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consumption less than or equal to 28,000 MWh; if 
the taken-over customer requests the SoLR to sign 
and send the contract for the supply of natural 
gas under the LR regime concluded with the SoLR, 
the SoLR is obliged to send it to the customer 
within a maximum of 5 working days; 

b)  on the basis of a supply contract concluded and 

signed with the SoLR, for the place of consumption 
with an annual consumption of more than 28,000 
MWh; during the period between the date of 
takeover by the SoLR and the date of signing of the 
LR contract, between the customer taken over and 
the SoLR, the SoLR is allowed to provide the activity 
of supply of natural gas under LR for the places of 
consumption of the customer taken over without 
the existence of a contract signed with the latter, 
in compliance with the framework contract for the 
supply of natural gas under LR;

•  The SoLR has the right to ask the final customer with 
an annual consumption of more than 28,000 MWh 
to provide a financial guarantee, after the date 
of transmission of the takeover information/after 
receipt of the customer’s request for takeover under 
the LR regime; The amount of the financial guarantee 
is set by order and must be provided within 5 working 
days from the date of receipt of the request. The 
client may be given the option of opting for payment 
in advance.

•  termination of the obligation to supply natural gas 
under the LR regime: on the date from which the 
contract for the supply of natural gas under the 
competitive regime concluded by the customer 
taken over with a competitive supplier takes effect, 
on the expiry of the duration provided for the 
situations under Article 24 para. (2) (i.e. minimum 
12 months from the date of takeover, one month 
from the date of takeover, date of termination of 
the suspension of the NG supply licence of the FA, 
duration established by ANRE, etc.), in case of non-
payment of invoices, in case of non-constitution of 
the financial guarantee (for final customers with 
annual consumption higher than 28,000 MWh)/non-
payment of the advance invoice/daily invoice, in 
case of disagreement on the resumption by the SoLR, 
in case of non conclusion of the SoLR contract (when 
this obligation exists);

•  throughout the period of application of the provisions 
of the support scheme, the SoLR does not transmit 
the values of the price components for the supply of 
gas under the LR regime for the following calendar 
month (CU_ach-FUI_estimated, CU_fz-FUI_
estimated, CU_tr-FUI);

•  by derogation, for the period of application of the 

provisions of the support scheme, ANRE establishes 
and publishes on the website the SoLR ranking in 
ascending order of market share for the last month, 
calculated by the equal weighting of the number 

•  ANRE order no. 13/2023 — Order for the approval of the 
framework contract for the supply of electricity in the 
universal service regime, the general conditions for the 
supply of electricity in the universal service regime and 
the invoice model applicable to household customers

•  the following is approved: The framework contract 
for the supply of electricity in the universal service 
regime – annex no. 1, General conditions for the 
supply of electricity in the universal service regime – 
annex no. 2, Electricity bill model – annex no. 3;

•  the main provisions: the general conditions for the 
supply of electricity in the universal service regime 
are published by the suppliers on their own website 
and are made available to household customers, in 
printed format, upon their request; invoices issued 
by electricity suppliers to household customers for 
electricity consumption made starting from April 
2023 will respect the invoice model (the color, type 
and size of the font can be set by the suppliers); the 
price of electricity from the universal service offer is 
valid for a period of at least 3 months; until 31 March 
2024, the electricity suppliers who have universal 
service customers in their portfolio communicate 
to these customers the electricity supply contracts 
issued pursuant to this order; electricity suppliers 
have the obligation to publish on their website the 
framework contract and the general conditions 
for the supply of electricity in the universal service 
regime within 5 days from the date of entry into 
force of this order and to communicate to household 
customers from the portfolio the access link to 
the contract and to the general conditions for the 
provision of electricity in the universal service regime, 
with the first invoice issued after the entry into force 
of this order.

•  is repealed ANRE Order no. 88/2015

•  ANRE order no. 15/2023 — Order on the approval of the 

Natural Gas Market Monitoring Methodology

•  the modification and completion of the Methodology 
for monitoring the natural gas market, by integrating 
all aspects regarding the monitoring of the wholesale 
market, which appeared once REMIT came into force; 
the responsibilities according to REMIT, specific to the 
owners of the administration of centralized markets 
and TSOs, were included; provisions were introduced 
regarding the forms that each license holder must 
report separately, with their clear identification – 
updating and creating new reporting forms;

•  is repealed ANRE Order no. 5/2013 for the approval of 

the Natural Gas Market Monitoring Methodology

•  ANRE order no. 16/2023 — Order for the amendment and 
completion of the Regulation on the last resort supply of 
natural gas, approved by the Order of the President of 
the National Energy Regulatory Authority no. 173/2020

•  amending and supplementing the Regulation on the 

of consumption places of final customers and the 
quantity of natural gas sold to them. Starting from 
September 2022, each SoLR will be allocated one 
calendar month, in order of ranking;

•  in the event of any of the above (i.e. FA loses supplier 

status, suspension of FA licence, etc.) during the 
period of application of the provisions of the support 
scheme, the consumption places will be taken 
over by an SoLR nominated by ANRE from the SoLRs 
designated on the basis of: a) the criterion of the 
month of allocation, b) the criterion of the takeover 
capacity, by verifying the fulfilment of the condition 
that the total number of consumption places taken 
over should not be higher than 30% of the number of 
consumption places of the final customers in their 
own portfolio, which ensure the supply of natural 
gas in a competitive regime, c) the criterion of the 
takeover availability;

•  The SoLR that has the obligation to take over, at the 
request of the final customer, the consumption site 
with an annual consumption of more than 28,000 
MWh is the SoLR of the respective calendar month, 
established by ANRE through the SoLR Classification;

•  The SoLR nominated to automatically take over the 
consumption place with an annual consumption 
less than or equal to 28,000 MWh is the SoLR of the 
respective calendar month established by ANRE 
through the SoLR ranking. By exception, in the case 
where the supply contract has been terminated 
due to unilateral termination by the customer, it is 
taken over on request by the SoLR of the respective 
calendar month;

•  for customers with an annual consumption of more 

than 28,000 MWh, in case of termination of the 
contract with the FA/SoLR, if the final customer does 
not find a supplier, the customer has the right to 
request any SoLR among those designated by ANRE 
to ensure the supply under the LR regime.

•  ANRE Order no. 4/2022 amending and supplementing 

ANRE Order no. 143/2020 on the obligation to offer 
natural gas on centralized markets to natural gas 
producers whose annual production in the previous 
year exceeds 3,000,000 MWh:

•  the quantitative allocation for tender for each of the 
standardised products for the period from 1 January 
to 31 December 2022 has been adjusted.

•  ANRE Order no. 65/2022 – for the approval of the 

Regulation on the organized framework for electricity 
contracting by large end customers

•  simplification of the organised electricity contracting 
framework for large end customers (with an annual 
consumption of more than 70,000 MWh) established 
by ANRE Order no. 55/2012: elimination of the 
obligation to use the framework contract, extension 
of market participation by accepting OTS and OD 

last resort supply of natural gas:

•  the provisions relating to the natural gas distribution 
contract that SoLR is obliged to conclude with the 
distribution operators have been amended so that 
they are consistent with the provisions of ANRE 
Ord. No. 3/2022 – POSF; Annex no. 5 was modified, 
respectively the model of the takeover request, so 
that it is consistent with the provisions of Ord. ANRE 
no. 29/2022 – Regulation on the supply of natural 
gas to final customers; Annex no. 6 was introduced 
– The method of appointing the SoLR for places 
of consumption with an annual consumption of 
more than 28,000 MWh of each PET for the situation 
where they have not ensured the supply of natural 
gas to cover the consumption requirement, fully 
or partially, during the period of application of the 
support scheme; a mechanism was created through 
which, during the application of the support scheme 
approved by GEO 27/2022, for consecutive periods of 
12 months starting from 01 April 2023 – 31 March 2024, 
ANRE appoints SoLR, among those already appointed, 
for the places of consumption with an annual 
consumption greater than 28,000 MWh of each PET 
where thermal energy is produced; the deadlines for 
requesting the activation of the advance payment 
option by the end customer were changed and a 
deadline for the transmission of the supply contract 
by SoLR was introduced.

•  ANRE order no. 19/2023 — Order for the amendment of 
the green certificate invoicing procedure, approved 
by the Order of the president of the National Energy 
Regulatory Authority no. 187/2018

•  updating the aspects related to data reporting 
by electricity suppliers that invoice electricity to 
final consumers, regarding the mode and format 
of reporting carried out through the ANRE Portal, 
structured on information regarding the monthly 
billing of green certificates and information 
regarding the annual regularization of the counter 
value of green certificates;

•  ANRE order no. 22/2023 – 27/2023 — Order regarding 

the approval of specific tariffs for the electricity 
distribution service and the price for reactive electricity 
at Societatea E-Distributie Banat — S.A., Societatea 
E-Distributie Dobrogea — S.A., Societatea E-Distributie 
Muntenia — S.A., Societatea Delgaz Grid — S.A., 
Societatea Distributie Energie Oltenia — S.A., Societatea 
Distributie Energie Electrica Romania — S.A.

•  there are increases in all specific tariffs for the 

electricity distribution service, the biggest increases 
being at Distributie Energie Electrica Romania SA – 
Muntenia Nord of about 30%;

•  the tariffs for low voltage for Distributie Energie 
Electrica Romania are higher by 8.3% - 31.2% 
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exclusively for the purchase of NL, reduction of the 
average power per settlement interval from 10 MW 
to 5 MW, the possibility for the initiator to opt for the 
variation of the contracted power per settlement 
interval with a maximum of 0.5 MW per settlement 
interval, minimum delivery duration of one month, 
elimination of the public negotiation phase.

•  ANRE Order no. 66/2022 – for the approval of the 

Methodology for determining the level of minimum 
natural gas stocks that holders of natural gas supply 
licenses are obliged to build up between April 2022 and 
October 2022

•  the quantities of natural gas representing the 

minimum stocks to be stored by each supplier in 
the period April 2022 – October 2022 represent at 
least 30% of the quantity of natural gas required 
for the consumption of final customers in its own 
portfolio for the period 1 November 2022 – 31 March 
2023 (reporting templates are established with 
the quantity broken down by each month and 
category of consumers and monitoring templates 
with the level of fulfilment of the natural gas storage 
obligation).

•  ANRE Order no. 73/2022 amending the Regulation on 
the organised framework for electricity contracting 
by large end customers, approved by Order of the 
President of the National Energy Regulatory Authority 
no. 65/2022

•  the possibility of introducing initiating offers also by 

the producers participating in the market.

•  deletion of the clarification that large end-use 

customers of electricity include transmission system 
operators and distribution system operators that 
purchase electricity individually or in aggregation to 
cover their own technological consumption, they can 
participate in the market as end-use customers.

•  ANRE Order no. 72/2022 approving the Regulation on 
natural gas storage in the natural gas transmission 
system

•  The regulation covers: the methods of natural gas 
storage (storage of natural gas in the natural gas 
transmission system, in the natural gas transmission 
pipeline, in ring pressure distribution systems and in 
above ground metallic tanks), the calculation of the 
energy of natural gas in the transmission pipelines 
related to ST and the monitoring of ST.

•  ANRE Order no. 79/2022 – for the approval of the 

Regulation for the organization and functioning of the 
forward electricity contracts market, organized by Bursa 
Romana de Marfuri – S.A.

•  establishes the organized framework for electricity 
trading on the forward electricity contracts market, 
through electronic trading platforms managed by 
Bursa Romana de Marfuri – S.A. (simple competitive 

were increases for all categories, respectively the 
lowest increase was 8.3% at LV – Transilvania South 
and the biggest increase of 33.7% in HV-Muntenia 
Nord);

•  the new rates are applicable from 01 April 2023;

•  ANRE order no. 28/2023 — Order on the approval 

of the average tariff for the electricity transmission 
service, the components of the transmission tariff 
for introducing electricity into networks (T_G) and 
extracting electricity from networks (T_L) and the 
regulated price for electricity reactive, practiced 
by the National Electric Energy Transport Company 
„Transelectrica” — S.A

•  the new rates are applicable from 01 April 2023;

•  the average tariff for the electricity transmission 

service is 31.20 lei/MWh – 11% increase;

•  the transport tariff – the component of introducing 
electricity into the network – TG is 4.04 lei/MWh – 
59.7% increase;

•  the transport tariff – the component of electricity 

extraction from the network – TL- is 27.44 lei/MWh – 
7.3% increase. 

•  ANRE order no. 17/2023 — Order on the approval of the 

Electricity Retail Market Monitoring Methodology

•  - updating the Methodology by updating the 

methodological principles underlying the activity 
of monitoring the electricity retail market with 
the requirements of the regulatory framework in 
force and, considering the multitude of changes; 
proposes ways to evaluate the level of efficiency 
and competition on the electricity retail market, to 
identify the elements that can lead to a decrease 
in performance in the supply activity, to evaluate 
the behavior of suppliers in the relationship with 
end customers and to identify those practices or 
behaviors that raises suspicions of violation of 
competition principles.

•  - is repealed ANRE Order no. 167/2019 regarding the 
approval of the Methodology for monitoring the 
electricity retail market and ANRE Order no. 205/2018 
regarding the approval of the Electricity Market 
Monitoring Methodology for final customers served 
by last resort suppliers.

•  ANRE order no. 18/2023 — Order regarding the approval 

of the Methodology for monitoring the wholesale 
electricity market

•  - modifying and completing the Methodology 

by updating the methodological principles and 
updating the system of indicators used in the 
monitoring activity; the scope and scope of the 
methodology were extended in order to include the 
monitoring obligations of ANRE as a result of the 
amendments made to the Electricity and Natural Gas 
Law no. 123/2012 and the increase in the complexity 

trading mechanism – for the launch of trading of 
the standard product, the participant submits to the 
BRM an initiating order, double competitive trading 
mechanism – the launch of trading of the standard 
products is also initiated by the BRM so that there are 
available for trading at any time consecutive forward 
contracts for: the first 6 calendar months, the first 5 
calendar quarters, the first 3 calendar semesters, the 
first 2 calendar years).

•  ANRE Order no. 92/2022 – amending and 

supplementing the Regulation on the calculation and 
settlement of imbalances of balancing parties – single 
imbalance price, approved by Order of the President of 
the National Energy Regulatory Authority no. 213/2020, 
and amending some orders of the President of the 
National Energy Regulatory Authority

•  redistribution has been reintroduced, i.e. the rules 
for calculating the additional costs/revenues from 
balancing the system, how to allocate their value to 
each balancing party (PRE) and issues related to the 
information note on settlement, billing and payments 
are provided.

•  reduction from 6 months to 2 months of the period in 
which the participant can request, with a reasoned 
justification, the correction of the settlement, from 
the posting on the dedicated IT platform of the 
information note for settlement, which will lead to 
an increase in the degree of accountability of the 
participants in the balancing market.

•  ANRE Order no. 117/2022 – Order for the approval of the 
Regulation for the organization and functioning of the 
forward electricity contracts market, organized by Bursa 
Romana de Marfuri – S.A.

•  The Regulation establishes the framework for the 

trading of electricity on the electricity futures market, 
through electronic trading platforms managed by 
the Romanian Commodities Exchange Company – 
S.A. 

•  BRM organizes trading sessions for standard 

products in terms of the following features: daily 
delivery profile (in-band delivery, peak load delivery, 
off-peak load delivery), average power per contract 
settlement interval of 0.1 MW or multiple of 0.1 MW, 
electricity delivery period (multiple of day, 1 week, 
balance of the month – i.e. the period made up of 
the remaining delivery days within a calendar month 
in progress, starting on the second calendar day 
following the day of the conclusion of a transaction, 1 
month, 1 quarter, 1 semester, 1 calendar year).

•  Repeals ANRE Order No 79/2022

•  ANRE Order no. 121/2022 – Order amending some orders 

of the President of the National Energy Regulatory 
Authority on the electricity market

•  modification of ANRE Order no. 127/2021 by: changing 

of the types of data/indicators requested by the 
competent European institutions (ACER/CEER); 
the system of specific indicators for the markets 
on which electricity is traded was adapted and 
completed (structure indicators, market efficiency/
performance evaluation indicators, market 
participants’ behavior indicators) for each of the 
monitoring entities with responsibilities in the field 
(ANRE, OPEE and TSO); the aspects related to the 
data requested on the monthly models sent by the 
market participants were additionally detailed; the 
reporting deadlines for market participants, OPEE 
and TSOs were specified; the submission of market 
participants/OPEE/TSO reports and OPEE/TSO reports 
in text format has been completely eliminated.

•  - is repealed ANRE Order no. 67/2018 for the approval 

of the Methodology for monitoring the wholesale 
electricity market.

•  ANRE order no. 20/2023 — Order regarding the approval 
of the Regulation on the organization and operation of 
the organized electricity market, administered by the 
Romanian Stock Exchange — S.A.

•  the Regulation on the organization and operation 
of the organized electricity market, administered 
by Societatea Bursa Romana de Marfuri – S.A. 
is approved, and this simplifies the organized 
framework for electricity trading on the organized 
future electricity markets, through the trading 
platforms managed by Societatea Bursa Romana 
de Marfuri – S.A.; a chapter on organized market 
segments is introduced; new products are 
introduced, namely flexible products and products 
derived from the field of electricity, settled by 
physical delivery; market transparency information 
is expanded; requirements are introduced regarding 
the use of a liquidity provider.

•  the order enters into force on 05 April 2023; is 

repealed ANRE Order no. 117/2022. 

•  ANRE order no. 56/2023 – Order for the amendment 
and completion of the Regulation for the issuance 
of green certificates, approved by the Order of the 
President of the National Energy Regulatory Authority 
no. 4/2015

•  the amendment of the Regulation on issuing green 
certificates, approved by ANRE Order no. 4/2015 so 
that: in the case of producers from renewable energy 
sources (E-SRE) using biomass as a renewable 
energy source as fuel or raw material, green 
certificates (GC) are issued only for E-SRE produced 
from biomass accompanied of certificates of origin 
regardless of the weight of the energy content of 
the biomass accompanied by certificates of origin 
in the total energy content of the fuel used in the 
respective power plant; in situations of alienation 
of an accredited power plant, the green certificates 
deferred from trading according to the provisions of 

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the deadline for the application of the Order from 
1 October 2022 to 1 October 2023; extending the 
deadline for changing the configuration of the 
existing PE platform, as required by the Regulation 
on terms and conditions for balancing service 
providers and frequency stabilisation reserve 
providers, from 9 months to 1 year and 6 months; 
deletion of some definitions (RFP, OD connector 
and adjustment required) and deletion of the term 
daily offer and replacement with balancing energy 
offer; modification of the parameters of the variable 
characteristics of the balancing energy offer for the 
standard RRFm product; replacement of the term 
system services with balancing services;

•  amendment of ANRE Order No 128/2021 by extending 
the application deadline from 1 October 2022 to 1 
October 2023.

•  ANRE Order no. 134/2022 – Order for the approval of the 
General Rules on organised electricity forward markets 

•  the general rules on organised forward electricity 
markets are approved. The organised forward 
electricity market comprises the following segments: 
standardised forward products market, flexible 
forward products market, electricity derivatives 
market settled by physical delivery.

•  electricity market operators shall draw up/update 
their own specific regulations for the organisation 
and management of the markets and submit them 
to ANRE for approval within 90 days from the date of 
entry into force of this Order.

•  ANRE Order no. 138/2022 – Order supplementing the 

Order of the President of the National Energy Regulatory 
Authority no. 143/2020 on the obligation to offer natural 
gas on centralized markets to natural gas producers 
whose annual production in the previous year exceeds 
3,000,000 MWh

•  ANRE Order no. 143/2020 is supplemented: with the 
periods for which the quantities of natural gas are 
determined, namely 1 January 2023 – 31 December 
2023 and 1 January 2024 – 31 December 2024; with 
clarifications on the application of the provisions 
of Article 12 of GEO no. 27/2022, in accordance with 
Annex no. 5 thereto. The quantitative share allocated 
for tendering purposes for each of the products is as 
follows (for the period 1 January 2023 – 31 December 
2023): Clu = 35%, Ctrim = 20%, Csem = 5%, Csez = 
25%, Can = 15%.

•  ANRE Order no. 14/2022 on the establishment of the 

mandatory green certificates purchase quota for 2021:

•  the mandatory quota for 2021 has been set at 

0.449792 hp/MWh (compared to 0.4505 hp/MWh 
estimated quota for 2021 and 0.45074 hp/MWh 
mandatory quota for 2020).

the law can be transferred to the new holder of the 
respective power plant, in order to be traded by him; 
the amounts of biomass provided in the certificates 
of origin issued by the relevant ministries under the 
law and which ex-ceed the biomass consumption 
of the ESRE producer in the period provided in the 
certificates of origin can be carried over and used 
in subsequent periods of time, with the exception of 
those in the certificates of origin is-sued as a result 
of final court rulings that provide for the biomass use 
period. 

•  ANRE order no. 59/2023 – Order regarding the approval 

of the Procedure for the recovery of improperly 
issued green certificates and for the amendment of 
the Regulation for the issuance of green certificates, 
approved by the Order of the President of the National 
Energy Regulatory Authority no. 4/2015

•  the Procedure for the recovery of improperly issued 

green certificates is approved, which establishes the 
recov-ery mechanism for improperly issued green 
certificates – the TSO develops its own procedure 
for the recovery of improperly issued GCs, including 
those related to the recovery interest; 

•  if the accredited E-SRE producer, who benefited from 

improper green certificates, does not hold green 
certifi-cates and no longer meets the conditions for 
issuing green certificates for trading, the recovery of 
improperly issued green certificates is carried out by 
purchasing green certificates from the anonymous 
centralized spot market of green certificates (after 
its registration in this market component of the green 
certificates market).

•  ANRE order no. 57/2023 – Order for the amendment and 
completion of the Regulation on the organization and 
operation of the green certificates market, approved 
by the Order of the President of the National Energy 
Regulatory Authority no. 77/2017

•  amending the Regulation on the organization and 

operation of the market of green certificates, so that, 
in situa-tions of disposal of an accredited power 
plant, the green certificates held in the account of 
the selling producer at the date of disposal, including 
those postponed from trading according to the 
provisions of the law, can be transferred to the new 
owner of the respective power plant, in order to trade 
them by him, if provisions to this effect are included 
in the alienation contract concluded between the 
parties;

•  the inclusion of a new category of ANRE license 
holders, represented by economic operators 
who own electricity storage facilities that are not 
located in the facilities of an electricity producer, as 
participants in the PCV as economic operators with 
an obligation to purchase GC; 

•  the inclusion of a new transaction session on PCSCV 
for each quarter of analysis, respectively on the 18th 

•  ANRE Order no. 15/2022 for the approval of the 

Methodology for establishing the rules for the marketing 
of electricity produced in power plants from renewable 
sources with an installed electrical power not exceeding 
400 kW per place of consumption belonging to 
consumers:

•  shall enter into force on 1 May 2022 and repeals 

ANRE Order no. 50/2021 approving the rules for the 
trading of electricity produced in power plants from 
renewable sources with an installed electrical power 
of up to 100 kW belonging to prosumers

•  suppliers must notify prosumers with whom they 
already have contracts (with P<100kW) about the 
change in the applicable legal framework and 
the possibility to benefit from the quantitative 
compensation mechanism on request; at the request 
of prosumers, suppliers must send signed contracts 
within 10 days;

•  for the application on demand of the quantitative 
compensation mechanism, the installed electrical 
power of the power plant producing electricity from 
renewable sources shall not exceed 200 kW per place 
of consumption; the quantitative compensation shall 
be made at the price of active electricity, and any 
surplus shall be carried forward for a maximum of 24 
months – after this period, the unused quantity shall 
enter into the financial regularization process.

•  for the application on demand of the financial 

regularization mechanism, the installed electrical 
power of the power plant producing electricity from 
renewable sources is more than 200 kW, but not 
more than 400 kW per consumption site; for financial 
compensation, the reference is the weighted average 
price recorded on the market for the following day 
for the month in which the electricity in question was 
produced and delivered.

•  ANRE Order no. 90/2022- on the modification and 

completion of the Order of the President of the National 
Energy Regulatory Authority no. 52/2021 for the approval 
of the Monitoring Methodology of the system for the 
promotion of electricity production from renewable 
energy sources

•  determines the mode, format and frequency of 
data reporting: information on electricity sale-
purchase contracts concluded with prosumers 
owning renewable energy power plants, i.e. the 
amount of electricity benefiting from quantitative 
compensation (Pi< 200 kW), information on electricity 
sale-purchase contracts concluded with prosumers 
owning renewable energy power plants, i.e. the 
quantity of electricity benefiting from financial 
balancing (Pi 200 kW and 400 kW), information on 
directly negotiated bilateral electricity sale-purchase 
contracts concluded with prosumers.

work-ing day of the month following each quarter, 
in order to enable the completion of the purchase 
of GC by eco-nomic operators with the obligation to 
purchase GC, for each analysis quarter, according to 
the published list. 

•  ANRE order no. 58/2023 – Order for the modification 
and completion of the Methodology for establishing 
the mandatory annual quota for the purchase of green 
certificates, approved by the Order of the President of 
the Nation-al Energy Regulatory Authority no. 96/2022

•  the modification of the Methodology for establishing 

the mandatory annual quota for the purchase of 
green cer-tificates for the regulation of the situation 
of an economic operator who has a final decision by 
which a court es-tablished/establishes, as the case 
may be, the recovery by the respective economic 
operator of a sum of money related to some GCs 
that he purchased in a previous period, including the 
accessories to it, by applying an al-gorithm; 

•  amending the Methodology by including provisions 

regarding the obligation to purchase green 
certificates for a new category of ANRE license 
holders, represented by economic operators who 
own electricity storage facili-ties that are not located 
in the facilities of an electricity producer.

•  ANRE order no. 63/2023 – Order on the approval of the 
Rules necessary for the adoption of the Hydrogen Code

•  establishes the guidelines for the transformation or 
conversion of the natural gas distribution system 
in order to prepare it for the injection of quantities 
of hydrogen produced by using renewable energy 
sources.

•  ANRE order no. 67/2023 – Order regarding the approval 
of the tariff for the purchase of system services for the 
transport and system operator Compania Nationala de 
Transport al Energei Electrice “Transelectrica” — S.A. 

•  the tariff for the purchase of system services 

practiced by the National Electric Power Transport 
Company “Tran-selectrica” – S.A., valid from 1 June 
2023, is 6.64 lei/MWh, down 14% compared to the 
previous tariff.

•  ANRE order no. 68/2023 – Order on the approval of 
regulated income, corrected regulated income and 
transport tariffs for the activity of natural gas transport 
through the National Transport System

•  the capacity reservation rates related to firm and 
interruptible long-term and short-term transport 
services for the group of entry/exit points (gr) are 
approved, as well as the volumetric rate for the use 
of the National Transport System, for the period of 1 
October 2023 —30 September 2024. The order enters 
into force on 1 June 2023.

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•  ANRE Order no. 94/2022 – amending some orders of the 
President of the National Energy Regulatory Authority 
in the field of promotion of electricity from renewable 
energy sources

•  ANRE order no. 70/2023 – Order for the modification 

and completion of some orders of the president of the 
Na-tional Energy Regulatory Authority in the field of 
connecting users to the public interest electric network:

•  modification of the threshold of installed electric 
power in power plants from renewable energy 
sources belonging to prosumers, from 100 kW to 400 
kW per consumption place (modification of ANRE 
Order no. 179/2018) 

•  amend the Regulation on the organization and 

functioning of the green certificates market – ANRE 
Order no. 77/2017, in order to specify the two main 
categories of economic operators participating in 
the green certificates market, accredited producers 
of electricity from renewable energy sources and 
economic operators with the obligation to purchase 
green certificates.

•  ANRE Order no. 95/2022 – amending and 

supplementing the Order of the President of the 
National Energy Regulatory Authority no. 15/2022 
approving the Methodology for establishing the rules 
for the sale of electricity produced in power plants from 
renewable sources with an installed electrical power 
of no more than 400 kW per place of consumption 
belonging to prosumers

•  amends ANRE Order no. 15/2022 in order to clarify 
the average purchase price of energy produced 
and delivered by consumers, in accordance with 
the provisions of GEO 27/2022, with subsequent 
amendments and additions, the billing method and 
the elements highlighted in the invoices;

•  for energy consumed by consumers as customers, 

we have clarifications regarding the final price 
charged;

•  for the sale-purchase contract of electricity 

produced in renewable energy power plants with an 
installed electrical capacity of not more than 200 
kW per place of consumption and delivered to the 
electricity grid – the contract price is the price of 
active electricity used by the electricity supplier in 
the supply contract concluded with the consumer 
as a consumer, during the billing period, established 
according to the methodology;

•  for the sale-purchase contract of electricity 

produced in power plants from renewable energy 
sources with an installed electrical power of 
more than 200 kW, but not more than 400 kW per 
consumption site and delivered to the electricity grid 
– the contract price is equal to the weighted average 
price recorded on the market for the following day in 
the month in which the electricity was produced and 
delivered to the electricity grid, published by OPCOM.

•  is modified the ANRE Ord. no. 59/2013 – Regulation 

regarding the connection of users to public interest 
electric-ity networks;

•  is modified the ANRE Ord. no. 19/2022 – The 
procedure regarding the connection to the 
electricity networks of public interest of the places 
of consumption and production belonging to the 
prosumers. An opportunity is provided for prosumers 
who purchase the electricity metering group or 
the fully equipped metering and protec-tion block 
including the electricity metering meter to make it 
available to the distribution operator. A new chap-
ter is introduced regarding the rules for connecting 
to a place of consumption place of consumption 
and exist-ing production of installations for the 
production of electricity from renewable sources 
of prosumers and demonstration projects, with an 
installed electric power lower than or equal to 10,8 
kW times equivalent for connections other than 
three-phase connections, as an exception to the 
prosumer connection rules. The notion of aggregate 
generating units appears, which means the sum of 
the generating units belonging to several prosumers 
that are connected to the electrical grid through a 
single connection facility. The order enters into force 
on 31 May 2023. 

•  ANRE order no 71/2023 – Order regarding the approval 
of the regulated tariff for electricity exchanges with the 
perimeter countries, practiced by Compania Nationala 
de Transport al Energiei Electrice “Transelectrica” — S.A.

•  is approved the regulated tariff for electricity 

exchanges with peripheral countries of 3.0 euro/
MWh, exclusive of VAT, applied by the National 
Electric Power Transport Company “Transelectrica” 
– S.A., tariff applied to all im-port, export and transit 
transactions of electricity, programmed with the 
electric energy systems of the perime-ter countries. 

•  the order enters into force on 15 June 2023. 

•  ANRE order no. 75/2023 – Order amending the Order 
of the President of the National Energy Regulatory 
Authority no. 123/2017 regarding the approval of the 
contribution for high-efficiency cogeneration and some 
provisions re-garding its invoicing method.

•  the contribution for high-efficiency cogeneration is 

approved at the value of 0.00219 lei/kWh, exclusive of 
VAT;

•  the order enters into force on 1 July 2023.

•  ANRE Order no. 96/2022 – for the approval of the 

Methodology for establishing the mandatory annual 
quota for the purchase of green certificates

•  ANRE order no. 76/2023 – Order regarding the 

amendment of the annex to the Order of the President 
of the Na-tional Energy Regulatory Authority no. 

•  methodology establishes: how to calculate the 
estimated annual mandatory quota of green 
certificates for the following year, how to calculate 
the number of green certificates for the non-
fulfilment of the estimated annual mandatory quota 
of green certificates, for each quarter of analysis, 
by economic operators with the obligation to 
purchase green certificates, how to calculate the 
mandatory annual quota of green certificates for 
the analysis year, how to calculate the number of 
green certificates related to the non-fulfilment of 
the mandatory quota of green certificates for the 
analysis year by economic operators with green 
certificate purchasing obligation.

•  provisions have been introduced to exempt from the 
legal quarterly and annual obligation to purchase 
green certificates for prosumers and producers who 
own renewable electricity production units 

•  increasing the period for reporting errors in reporting 
the quantities of electricity billed/supplied from 15 
working days to 18 working days from the date of the 
decision.

•  ANRE Order no. 118/2022 – Order amending and 

supplementing the Methodology for establishing the 
mandatory annual quota for the purchase of green 
certificates, approved by Order of the President of the 
National Energy Regulatory Authority no. 96/2022

•  provisions have been introduced exempting from the 
quarterly and annual legal obligation to purchase 
green certificates prosumers and producers who 
own renewable electricity production units for their 
own final consumption, supplied at the place of 
production from renewable electricity production;

•  the way of collecting the data needed to establish 
the estimated annual mandatory green certificate 
purchase quota/annual mandatory green certificate 
purchase quota and the degree of non-compliance 
with the legal quarterly/annual green certificate 
purchase obligations has been specified, with the 
establishment of reporting templates applicable in 
general, but also with the establishment of specific 
reporting templates for the third quarter of the 2022 
analysis year and for the 2022 analysis year.

•  ANRE Order no. 141/2022 – Order on the establishment 
of the estimated mandatory quota for the purchase of 
green certificates for 2023

•  the estimated mandatory green certificates 

purchase fee for economic operators who have the 
obligation to purchase green certificates for the year 
2023 is set at 0.4943963 green certificates/MWh. 

•  ANRE Orders no. 27 – 31/2022 – for the modification 
of the Annex to ANRE Orders no. 118 – 123/2021 on 
the approval of the specific tariffs for the electricity 
distribution service and the price for reactive electricity, 

•  139/2022 for the approval of the tariffs charged by the 

designated Operator of the electricity market. 

•  the tariffs charged by the designated operator of 

the electricity market corresponding to the services 
provided for the performance of the activities, valid 
from 1 July to 31 December 2023 are: Administration 
tariff – category A of participants – 14.648 lei/
participant/year, Administration tariff – category 
A Participant B – 24.414 lei/participant/year, 
Transaction rate- 0.29 lei/MWh. 

•  ANRE order no. 77/2023 – Order for the amendment 

of the Regulation regarding the organized framework 
for trading standardized products on the centralized 
natural gas markets administered by the Romanian 
Stock Exchange — S.A. (Romanian Commodities 
Exchange — S.A.), approved by Order of the President of 
the National Energy Regula-tory Authority no. 95/2021

•  the Regulation on the organized framework for the 

trading of standardized products on the centralized 
natural gas markets administered by the Romanian 
Commodities Exchange Company is amended by 
amending the standardized products traded on the 
basis of the counterparty mechanism, in accordance 
with its specific rules.

•  ANRE order no. 78/2023 – Order for the amendment 
of the Regulation on the operation of the centralized 
market for electricity from renewable sources 
supported by green certificates, approved by the Order 
of the President of the National Energy Regulatory 
Authority no. 160/2019

•  the Regulation on the operation of the centralized 

market for electricity from renewable sources 
supported by green certificates is amended by 
changing the definition of the participant in the 
centralized market for electrici-ty from renewable 
sources supported by green certificates and it is 
specified that the contracts contain provi-sions that 
must comply with a set of principles (the designated 
participant concludes the contract in his own 
name and fully assumes all rights and obligations 
regarding the traded electricity, the contract 
contains individ-ual rights and obligations regarding 
the delivery of GCs of the members of the aggregate 
entity who traded GCs during the auction session 
following to which the contract is concluded, etc.). 

•  ANRE order no. 81/2023 – Order regarding the 

amendment of the Order of the President of the 
National Energy Regulatory Authority no. 10/2023 
for the approval of the Methodology regarding the 
determination of the level of the minimum stock of 
natural gas that the holders of the licenses for the 
supply of natural gas have the obligation to constitute 
in the underground storage warehouses:

•  the maximum deadline for concluding sales-

purchase contracts whose object is quantities of 

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for Delgaz Grid – S.A/Societatea Distributie Energie 
Electrica Romania – S.A/Societatea Distributie Energie 
Oltenia – S.A/Societatea E-Distributie Banat – S.A/
Societatea E-Distributie Dobrogea – S.A./Societatea 
E-Distributie Muntenia – S.A.

•  The new tariffs are applicable from 1 April 2022;

•  Low voltage tariffs for Electrica Romania Energy 
Distribution are 17%- 25% higher than in the first 
quarter of 2022 (there were increases for all 
categories, respectively the lowest of 9.1% at IT – 
Transilvania Nord and the highest of 30.2% at MT-
Muntenia Nord).

•  ANRE Order no. 33/2022 - for the modification of Annex 
no. 1 to the Order of the President of the National Energy 
Regulatory Authority no. 124/2021 on the approval 
of the average tariff for the electricity transmission 
service, the components of the transmission tariff for 
the introduction of electricity into the grid (TG) and 
for the extraction of electricity from the grid (TL), the 
tariff for the system service and the regulated price for 
reactive electricity, charged by the National Electricity 
Transmission Company “Transelectrica” – S.A.

•  the new tariffs are applicable from 1 April 2022; 

the average tariff for the electricity transmission 
service is higher by 17.3%, the transmission tariff 
– the component for feeding electricity into the 
grid is higher by 69.8% (TG is – 2.53 RON/MWh), the 
transmission tariff – the component for withdrawing 
electricity from the grid is higher by 13.8% (TL is – 
25.57 RON/MWh) compared to the first quarter of 
2022.

•  ANRE Order no. 67/2022 – on the application in April 

2022 of the provisions of Article 23 of the Methodology 
for determining and monitoring the contribution for 
high-efficiency cogeneration, approved by the Order 
of the President of the National Energy Regulatory 
Authority no. 117/2013

•  During April 2022, ANRE shall analyse the amount of 
the contribution for cogeneration, and if it varies by 
more than +/- 2.5% compared to the value in force, 
by 30 April 2022, the new value of the contribution for 
2022 shall be approved by ANRE order.

•  ANRE Order no. 69/2022 amending the Order of the 

President of the National Energy Regulatory Authority 
no. 123/2017 on the approval of the contribution for 
efficient cogeneration and of some provisions on its 
billing

•  Starting from 1 May, the contribution for efficient 
cogeneration is 0.02044 RON/kWh, excluding VAT.

•  ANRE Order no. 130/2022 – Order amending the Order 
of the President of the National Energy Regulatory 
Authority no. 123/2017 on the approval of the 
contribution for efficient cogeneration and of some 
provisions on its billing

natural gas origi-nating from underground natural 
gas storage depots, stored by another natural gas 
supplier from 31 May to 31 October is extended.

•  the provisions relating to the change in the CC and 
PET end customer portfolios are completed as a 
result of the exercise by the end customers of the 
right to change the natural gas supplier or as a 
result of the termination of the natural gas supply 
contracts and the transfer of the quantities of natural 
gas stored and of reserved and unused capacity. 

•  ANRE order no. 88/2023 – Order for the modification 

of some orders of the president of the National Energy 
Regu-latory Authority regarding the electricity market

•  ANRE order no. 127/2021 for the approval of the 
Regulation on the clauses and conditions for 
balancing service providers and for frequency 
stabilization backup providers and the Regulation 
on the clauses and conditions for the parties 
responsible for balancing (published in M.O. no. 1196 
of 17 December 2021) enters in force on the date 
of publication and applies from 1 April 2024 (on 1 
April 2024 ANRE Order no. 61/202 and ANRE Order 
no. 21/2020 are repealed and a number of articles 
from ANRE Orders no. 213/2020 and no. 152/2020 are 
repealed ).

•  ANRE order no. 128/2021 for the approval of the rules 
for suspending and restoring market activities and 
appli-cable settlement rules (published in M.O. no. 
1187 of 15 December 2021) applies from 1 April 2024.

•  ANRE order no. 95/2023 – Order on the modification 

of the General Conditions associated with the license 
for aggregation activity, approved by the Order of the 
President of the National Energy Regulatory Authority 
no. 196/2020. 

•  the General Conditions associated with the license 
for aggregation activity are modified, approved by 
ANRE Order no. 196/2020, by changing the definitions 
of aggregate entity and aggregate unit in the sense 
that pro-ducers, final consumers and owners of 
storage facilities can be aggregated in the same 
entity. 

•  ANRE order no. 94/2023 – Order for the approval of 

the Regulation on the designation of the designated 
operator of the electricity market

•  the Regulation on the designation of the designated 
operator of the electricity market is approved, which 
es-tablishes the terms, criteria and transparent 
and non-discriminatory procedures regarding the 
designa-tion/withdrawal of the designation of the 
designated operator of the electricity market. 

•  ANRE order no. 97/2023 – Order amending the Order 
of the President of the National Energy Regulatory 
Authority no. 123/2017 regarding the approval of the 
contribution for high-efficiency cogeneration and some 

•  Starting from 1 November 2022, the contribution for 

provisions re-garding its invoicing method:

efficient cogeneration is 0.00333 RON/kWh, excluding 
VAT, with a percentage decrease of 83% compared 
to the previous value, i.e. a decrease of 0.01711 RON/
KWh.

•  ANRE Order no. 140/2022 – Order approving the tariffs 
and financial contributions charged by the National 
Energy Regulatory Authority in 2023

•  for the holders of the electricity supply license, the 

annual bonus contribution is established on the basis 
of a percentage rate of 0.1% applied to the turnover 
achieved by them in 2022 from the commercial 
activities covered by the electricity supply license, 
but not less than RON 3,125. The basis for calculating 
the financial contribution levied by ANRE is the net 
turnover, defined and calculated in accordance 
with the accounting regulations in force, which 
includes the revenues recorded from the activity of 
electricity supply – including those corresponding 
to green certificates and the contribution of efficient 
cogeneration, to which is added the revenues 
recorded from the application of the measures of the 
compensation scheme for electricity consumption 
and those related to the compensation granted for 
the implementation of the measures applicable to 
final customers in the electricity market.

•  the annual tariff for carrying out activities in the 

natural gas sector on the basis of a license – Supply 
of natural gas is 0.168 RON/MWh.

•  ANRE Order no. 139/2022 – Order approving the tariffs 
charged by the Designated Electricity Market Operator

•  the tariffs charged by OPCOM for the services 

rendered for the performance of activities in 2023 
are approved: Management tariff – category 
A participants – 21,574 RON/participant/year, 
Management tariff – category B participants – 
35,956 RON/participant/year, Trading tariff – 0.48 
RON/MWh.

•  ANRE Order no. 142/2022 – Order amending the Order 
of the President of the National Energy Regulatory 
Authority no. 123/2017 on the approval of the 
contribution for efficient cogeneration and of some 
provisions on its billing.

•  from 1 January 2023 the contribution for efficient 
cogeneration is approved at the amount of 0.00 
RON/kWh.

•  ANRE Order no. 144/2022 – Order approving the tariff for 
the acquisition of system services for the transmission 
and system operator National Power Transmission 
Company “Transelectrica” – S.A.

•  the tariff for the purchase of system services 
charged by the National Power Transmission 
Company “Transelectrica” – S.A., valid from 1 January 
2023 is 7.73 RON/MWh.

•  the contribution for high-efficiency cogeneration 
at the value of 0.0099 lei/kWh, exclusive of VAT, is 
approved starting on 1 November 2023 (increasing 
compared to the period 01.07.2023 – 31.10.2023 when 
the contribu-tion for high-efficiency cogeneration 
had the value of 0.00219 lei/kWh – Order no. 75/2023.

•  ANRE Order no. 96/2023 – Order amending and 
supplementing the Order of the President of the 
National Energy Regulatory Authority no. 179/2015 
approving the Procedure for technical inspections and 
overhauls of natural gas utilisation installations:

•  ANRE Order No 179/2015 is amended and 

supplemented as follows: it specifies the obligations 
of final customers regarding the inspection and 
verification of installations; it specifies the penalties 
applicable for failure to comply with the provisions 
of the Procedure on technical inspections and 
inspections of natural gas utilisation installations; 
when changing the natural gas supplier, the old 
supplier is obliged to send the new supplier the 
information related to the technical inspection and 
inspection of the natural gas utilisation installation 
related to the respective consumption site.

•  ANRE Order no. 100/2023 – Order approving the 
Methodology for setting the tariffs charged by 
designated electricity market operators:

•  the Methodology for setting the tariffs charged by 
designated electricity market operators that carry 
out single day-ahead and/or intra-day market 
coupling in the Romania offer area is approved;

•  the tariffs set in accordance with the methodology 

shall apply from 1 January 2024.

•  ANRE Order no. 118/2023 – Order approving the tariffs 
and financial contributions charged by the National 
Energy Regulatory Authority in 2024:

•  for holders of electricity supply licences, the annual 
monetary contribution is established on the basis 
of a percentage rate of 0.1% applied to the turnover 
achieved by them in 2023 from the commercial 
activities covered by the electricity supply licence, 
but not less than a minimum monetary contribution 
of RON 3,125. The basis for calculating the monetary 
contribution charged by ANRE is the net turnover, 
defined and calculated in accordance with the 
accounting regulations in force, which includes the 
revenues recorded from the activity of electricity 
supply – including those corresponding to green 
certificates and the contribution for high efficiency 
cogeneration, plus the revenues recorded from the 
application of the compensation scheme measures 
for electricity consumption and those related to 
compensation granted for the implementation 
of measures applicable to final customers in the 
electricity market;

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2024 is 9.17 lei/MWh, an increase of 38.1% compared 
to the tariff for 2023.

•  ANRE Order no. 117/2023 – Order amending the Order 
of the President of the National Energy Regulatory 
Authority no. 123/2017 on the approval of the 
contribution for high efficiency cogeneration and some 
provisions on the way it is billed:

•  - from 1 January 2024, the contribution for high-

efficiency cogeneration is approved at the amount of 
0,0168 lei/kWh (excluding VAT).

Source: Electrica

•  ANRE Order no. 143/2022 – Order amending and 
supplementing the Regulation for the detection, 
notification and sanctioning of violations of regulations 
issued in the field of energy applicable to the control 
activities carried out by the National Energy Regulatory 
Authority, approved by the Order of the President of the 
National Energy Regulatory Authority no. 62/2013

•  inspection control actions are carried out on 
the basis of the annual control programme, 
unannounced control action is carried out without 
prior notification of the persons, etc.

•  the annual monetary contribution charged for the 
performance of activities in the natural gas sector 
on the basis of natural gas supply licence is 0.168 lei/
MWh.

•  ANRE Order no. 107/2023 – Order on the establishment 
of the estimated mandatory quota for the purchase of 
green certificates for 2024:

•  The estimated mandatory quota for the purchase of 
green certificates by economic operators who are 
obliged to purchase green certificates for the year 
2024 is set at 0.4944765 green certificates/MWh.

•  ANRE Order no. 109/2023 – Order approving the 

average tariff for the electricity transmission service, 
the components of the transmission tariff for the 
introduction of electricity into the networks (T_G) and 
the extraction of electricity from the networks (T_L) 
and the regulated price for reactive electricity, charged 
by the National Electricity Transmission Company 
“Transelectrica” – S.A.:

•  the new tariffs are applicable from 1 January 2024; 

•  the average tariff for the electricity transmission 

service is higher by 1.5%, the transmission tariff – the 
component for feeding electricity into the grid is 
lower by 5.4% (TL is 3.82 lei/MWh), the transmission 
tariff – the component for withdrawing electricity 
from the grid is higher by 1% (TL is 27.72 lei/MWh) 
compared to the tariffs for 2023.

•  ANRE Order no. 110/2023-115/2023 – Order approving 

the specific tariffs for the electricity distribution service 
and the price for reactive electricity at Societatea 
Retele Electrice Banat – S.A., Societatea Retele Electrice 
Dobrogea – S.A., Societatea Retele Electrice Muntenia – 
S.A., Societatea Delgaz Grid – S.A., Societatea Distributie 
Energie Oltenia – S.A., Societatea Distributie Energie 
Electrica Romania – S.A.:

•  there are increases in most of the specific tariffs 
for the electricity distribution service, the highest 
increases being at IT – Distributie Energie Electrica 
Romania SA – Muntenia Nord of 11.2%;

•  low voltage tariffs for Distributie Energie Electrica 

Romania are higher by between 3.8% - 7.9% 
compared to 2023 (there were increases for all 
categories respectively the lowest of 1.2% at MT 
– Transilvania Sud and the highest of 11.2% at IT-
Muntenia Nord);

•  The new tariffs are applicable from 1 January 2024.

•  ANRE Order no. 116/2023 – Order approving the tariff for 
the purchase of system services for the transmission 
and system operator National Power Transmission 
Company “Transelectrica” – S.A.:

•  the tariff for the purchase of system services 
charged by the National Power Transmission 
Company “Transelectrica” – S.A., valid from 1 January 

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A.3.2.     Changes to the legal framework in 2023/2024 up  

2023

2024

                    to the date of approval of the financial  

                    statements2023/2024 

The following are the relevant legislative changes that took place at Group level in the period between the 

end of the financial year 2022 and the date of the published report, respectively in the period between the 

end of the financial year 2023 and the date of this report.

A.3.2.1.  Distribution segment 

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2024

•  The methodology for establishing the distribution 

tariffs - is modified and provides for the granting of 
the RRR incentive of 2% for investments from EU funds 
only if they have not benefited from the PCI incentive

•  The project was developed as a result of ANRE’s 

obligation to present to ACER, until 24 January 2023, 
the methodology and criteria used for the evaluation 
of investments, in the sense of alignment with 
Regulation (EU) 2022/869:

•  energy infrastructure projects and high risk 

assessment

•  the specific risks to which offshore networks for 
energy from renewable sources are exposed

Regulations regarding tariffs:

•  ANRE Order no. 6/2023 for completing the Procedure 

regarding the substantiation and approval of TSO and 
DSO investment plans, approved by ANRE Order no. 
98/2022 - effective from 13 February 2023 

•  The amendment proposals consider the recognition 
of DO investments in energy storage and production 
for internal consumption from stations and NL:

•  the inclusion in the category of justifiable 

investments of energy production facilities from 
renewable sources for NL supply and internal 
consumption from the stations;

•  the inclusion of electricity storage facilities in the 

category of necessary investments;

•  the possibility for DO to own storage facilities, by way 
of exception from the provisions of the Energy Law 
(art. 46^1 par. (1)), only with prior approval by ANRE;

•  establishing the method of calculating the economic 
efficiency of investments in production/storage, with 
a view to recognition by ANRE (Annex no. 8).

•  ANRE order no. 1/2023 for the modification and 

completion of some orders of the president of the 
National Energy Regulatory Authority effective from 17 
January 2023

•  Methodology for the evaluation of investments in 

projects of common interest (PCI) approved by ANRE 
Order no. 139/2015 is amended as follows:

•  expanding the scope of the Methodology for DO 

investments (in addition to TSOs)

•  granting a 1% RRR incentive for PCI

•  expanding the scope of the type of PCI from 

electrical transmission networks, to: a) electrical 
transmission and distribution networks; b) 
offshore networks for energy from renewable 
sources; c) projects that integrate innovative 
technical solutions and that, although they have 
low capital costs, involve significant operating 
costs.

Technical regulations - Network connection

Technical regulations - Network connection

•  ANRE Order no. 3/2023 regarding the approval of 
the Technical Norm „Technical requirements for 
connection to public interest electrical networks 
for electricity storage facilities and the notification 
procedure for connecting electricity storage facilities” 
- effective from 20 March 2023 

•  The norm was developed by the TSO, it establishes 

technical requirements for connected storage 
facilities:

•  individually to the public electricity network, 

classified in categories A, B, C and D similarly to 
electricity production facilities;

•  within the electricity production sites;

•  within the places of electricity consumption.

•  ANRE Order no. 106/2023 for the amendment and 

completion of ANRE Order no. 239/2019 for the approval 
of the Technical Norm regarding the delimitation 
of protection and safety zones related to energy 
capacities - effective from January 10, 2024

•  the order changes involve NO in evaluating the 

position of the building-type objective in relation 
to the safety zone of the overhead power lines with 
nominal voltages higher than 1kV.

•  assures the applicants of location approvals the 
facilitation of the location of the building-type 
objective outside the safety zone of the overhead 
power lines, the size of which is calculated with the 
formula from point 2.3 of Annex no. 6 to the Norm, 
without the need to carry out a risk analysis

•  ANRE Order no. 4/2023 for the modification and 

completion of some orders of the president of the 
National Energy Regulatory Authority in the field of 
connecting users to the public interest electrical 
network - effective from 3 February 2023

•  the modification and completion of the following 

regulations, in the sense of including the possibility 
for household customers, PFA, individual businesses, 
family businesses and public institutions whose 
places of consumption are connected to LV, as well 
as prosumers, to purchase the measuring group or 
the fully equipped protection and measuring block, 
including the meter in compliance with the technical 
specifications made available by DSO/TSO:

•  Connection Regulation

•  The procedure regarding the connection to LV 

networks of household customers - ANRE Order no. 
18/2022

•  Connection framework contracts - ANRE Order no. 

105/2022

•  The procedure regarding the connection to the 
networks of prosumers - ANRE Order no. 19/2022

•  The DSO/TSO is obliged to reimburse the user the 

value of these equipments at the terms established 

•  Draft order for the approval of the Methodology 

regarding the allocation of the electricity network 
capacity for the connection of electricity production 
sites, as well as for the modification and completion 
of some orders of the president of the National Energy 
Regulatory Authority in the field of connecting users 
to the public interest electricity network - public 
consultation

1.  Approval of the Methodology regarding the allocation 
of electrical network capacity for the connection of 
electricity production sites

•  The methodology provides for the mechanism for 
allocating the available capacity of the electrical 
network, necessary for the connection of new 
production sites with power ≥ 1 MW, through 
auctions organized by the TSO.

a. The mechanism will replace the current 

mechanism for the participation of producers in 
the general network strengthening works and will 
ensure:

i.  the sums required by OR for the development 

of the relay in order to connect the new 
production sites

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•  in the connection contracts; reimbursement is made 

ii. a competitive environment for producers who 

on the basis of supporting documents presented 
by the user, without being limited to: tax invoice, 
compliance certificates, warranty certificates, etc.

•  the obligation of the DSO to install the meter is 

maintained, the deadlines in force stipulated in the 
connection contracts being maintained.

•  Draft order for the amendment and completion of 

ANRE President’s Order no. 239/2019 for the approval 
of the Technical Norm regarding the delimitation 
of protection and safety zones related to energy 
capacities - public consultation

•  clarifications regarding the use of the formula 

for calculating the size of the safety zone Z(sig), 
established in point 2.3 of Annex no. 6 from Norm;

•  the restriction regarding the application of the 

provisions of the Norm in the regulated passage 
corridor of the LEA, respectively in the area located 
between the limit of the safety zone and the limit of 
the regulated passage corridor, and their application 
only in the safety zone of the LEA, whose width is 
calculated with formula from point 2.3 of Annex no. 6 
from Norm;

•  the conditions under which the risk analysis will 
be required were specified, depending on the 
positioning of the objectives in relation to the safety 
zone and respectively in the area located between 
the limit of the safety zone and the limit of the 
standard passageway;

•  provisions were established regarding the placement 

of photovoltaic panels on the roof of buildings. 

are going to develop production sites

iii. securing the producers’ capacities for 

subsequent connection to the network, by 
paying the sums resulting from the auctions

b. Tenders will be organized annually by the TSO, 
for a period of 10 years, in order to allocate the 
available capacity in the RET and in the RED at the 
voltage level of 110 kV and MV

c. The methodology provides for the stages 

preceding tenders, their organization, as well 
as the rules for allocating capacities in various 
situations

d. The starting price is determined based on the 

value of the development work, and the winners 
enter into capacity allocation contracts.

e. The sums resulting from the auctions must be 

paid by the producers in no more than 4 months, 
and non-compliance with the deadlines attracts 
penalties.

•  The methodology will enter into force starting from 

01.01.2025.

2. Amendment of the Regulation regarding the 
connection of users to public interest electric 
networks:

a. OR will require the establishment of financial 
guarantees, of 5% of the connection tariff, by 
applicants with production/consumption sites and 
production sites ≥ 1 MW, regardless of the need for 
strengthening works.

b. The guarantee must be established before the ATR 

•  Draft Order regarding the modification and 

is issued.

c. The connection certificate will include the 

certification of the quality of active customer 
for users with consumption/consumption and 
production sites

d. Appendix no. 5 is revised to avoid the transfer 

to the ownership of users of installations with a 
voltage of 220 kV or higher, if the upper voltage of 
the transformer station exceeds 110 kV.

3. Modifying the framework content of the ATR and 

the connection contract, by revising the provisions 
regarding the financial guarantees that are 
constituted in favor of the OR, in accordance with the 
proposals for revising the Regulation from point 2.

completion of the Methodology for data exchange 
between the transport operator and the system, 
distribution operators and significant network 
users approved by ANRE Order no. 233/2019 – public 
consultation

•  the introduction of electricity storage facilities 

connected individually to the electrical network, with 
a response in providing active power distinctly from 
electricity production facilities;

•  detailing the relevant system users who are the 

subject of information transmission to DO and TSO;

•  detailing the method of transmitting data from 

relevant system users, directly and indirectly, to DO 
and TSO.

•  In addition to the draft order from phase I and in 
accordance with the provisions of the norm for 
connecting storage facilities, it is necessary to 
specify:

•  communication path, redundancy and data 

exchange for storage facilities. These storage 
facilities can be linked to the electricity production 
facility or can be operated independently.

•  how the scheduled and planned data exchange

is carried out until the provisions of ANRE Order 
no. 127/2021, with subsequent amendments and 
additions.

•  Draft Order for the amendment and completion 

of ANRE Order no. 102/2015 for the approval of the 
Regulation on the establishment of solutions for 
connecting users to electric networks of public 
interest - public consultation

•  addition to the list of situations in which the 

connection solution is determined by the solution 
sheet:

•  of consumption places owned by authorized 

natural person users, individual businesses, family 
businesses and public institutions that connect 
to the low voltage network, regardless of the 
requested power;

•  of the places of consumption and production 
belonging to prosumers who own electricity 
production units from renewable sources with an 
installed power of no more than 400 kW per place 
of consumption;

•  of the local public authorities that have the 

capacity to produce electricity from renewable 
sources made, partially or totally, from structural 
funds, and that benefit from the suppliers with 
whom they have an electricity supply contract, on 
request, from the financial regularization service .

•  the introduction of the provision according to which 
the solution study must also contain connection 
options with the operational limitation of the 
maximum power that can be discharged into the 
network in the situations/operation regimes with 
N-1 elements in operation that have the effect of 
overloading the network and, consequently, the 
impossibility of the network elements remaining in 
operation and of the network as a whole to function 
for an unlimited time under these conditions.

•  the introduction of the provision according to which 

in the solution sheet or, as the case may be, in 
the solution study, it must be highlighted whether 
in the connection solution electrical networks 
were considered for which strengthening works 
were executed or are being executed to create 
the technical conditions necessary to connect 
several production/consumption and production 
sites (general strengthening works), financed by 
users who benefit from the same strengthening 
works and whose utility installations are energized 
before the user’s own utility installations. It is also 
provided that, in this case, the data on which the 
participation quotas due to the users who financed 
the strengthening works are calculated are to be 
specified in the solution sheet or, as the case may 
be, in the solution study.

•  elimination of the phrase dispatchable/non-

dispatchable with regard to generating units/power 
plants considering the provisions of ANRE Order no. 
127/2021.

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Annual Report and sanctions

Annual Report and sanctions

•  Draft Order for the amendment and completion of 
the Procedure regarding the establishment and 
individualization of contraventional sanctions related 
to the turnover resulting from the control activity - 
public consultation

•  the amendment and completion of the Procedure 

takes into account the latest administrative changes 
in the organization of ANRE, but also its completion 
in the sense of regulating a new situation, that of the 
supervisory control action

•  in the case of a surveillance-type control action, the 
notification note shall take the place of the control 
report provided for in art. 2(1).

Commercial Regulations

•  ANRE Order no. 5/2023 for the approval of the 
Regulation for the supply of electricity to final 
customers - effective from 6 February 2023

•  the need to correlate the provisions of the Electricity 

Supply Regulation to final customers with the 
provisions of Law no. 123/2012 of electricity and 
natural gas, as amended and supplemented by GEO 
no. 143/2021, and Annex 1 to Directive (EU) 2019/944.

•  elimination of the provisions that refer to the activity 
of the DO in the relationship with the supplier and its 
obligations regarding its own activity

•  detailing the way in which DO ensures unrestricted, 
free and guaranteed access to the information in 
the database regarding the places of consumption 
connected to the electrical distribution network in 
the license area;

•  the introduction of the notion of an active client, the 

quality of an active client is certified, by the DSO/TSO, 
for:

•  participation in flexibility or energy efficiency 
programs, to which the customer’s place of 
consumption is connected;

•  the production of electricity, by the DSO/TSO to 

which the place of consumption and production is 
connected;

•  elimination of the obligation to conclude the 

consumption agreement by the customer at the 
conclusion of the electricity supply contract;

•  the customer’s possibility to ask the supplier to 

change the monthly values from the consumption 
agreement for a determined period, these being 
applied by the DO and the supplier starting with 
the 1st of the month following the one in which he 
received the new values;

•  the consumption data from the consumption 

agreement can be modified by the DO at any time 
during the execution of the electricity supply 

contract, including the data from the consumption 
agreement modified by the customer, in order to 
adapt to the actual consumption achieved;

•  DO has the obligation to verify the necessity of 
changing the data related to the consumption 
convention with the same frequency with which 
the reading of the index of the measurement group 
takes place. If the DO modifies the data in the 
consumption agreement, it transmits the modified 
values to the supplier;

•  the introduction of the obligation of the DO to ensure 
the reading of the index of the measurement group 
at a time interval of maximum 3 months in the case 
of places of consumption belonging to household 
customers, except for those integrated in the SMI;

•  in the event that the DO has not performed the 
reading within the time frame established by 
the legal provisions in force, in order to issue the 
regularization invoice, the latest self-read index and 
communicated by the client is used after the most 
recent index read and communicated by the DO. The 
regularization period cannot be longer than 3 years;

•  elimination of the conditions for concluding the 

distribution contract directly by the end customer; 
specifying that the conclusion of the distribution 
contract must be carried out by the final customer 
with the DO only if the place of consumption 
has several suppliers at the same time or is the 
subject of participation in the aggregation by an 
independent aggregator;

•  Draft Order approving the contract - framework for 
the provision of electricity in the universal service 
regime, the general conditions for the provision of 
electricity in the universal service regime and the 
invoice model applicable to household customers - 
public consultation 
Through the draft order, the following are proposed:

1.  the contract - universal service electricity supply 

framework - regulates the way in which the 
contracts in force are applied under the conditions 
of entry into force of the order and also provides that 
the price from the universal service offer is applied 
for a period of minimum 3 months. Provisions with 
impact on DO:

•  the reading interval of the index of the 

measurement group is at most 3 months;

•  regularization of electricity consumption is done 

for a maximum of 3 months and is included in the 
first invoice issued after reading the index by the 
distribution operator (DO);

•  communication through the invoice of the time 

interval for reading the index of the measurement 
group by the DO representative;

•  invoicing based on the data established by the 

electricity consumption convention for

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the invoicing periods in which the index of 
the measurement group is not read and the 
household customer does not transmit the self-
read index;

•  the compensations and punitive interest that the 
household customer is entitled to receive for the 
supplier’s non-compliance with the obligations set 
forth in the Performance Standard for the activity 
of electricity supply and for the distribution 
operator’s non-compliance with the performance 
indicators provided for in the Performance 
Standard for the electricity distribution service, in 
force.

2. the general conditions for the provision of electricity 
in the universal service regime - are proposed to be 
approved separately from the framework contract, 
so that they can be published on the supplier’s 
website and do not require printing and physical 
attachment.

3. the invoice model applicable to household 

customers - the invoices issued for electricity 
consumption registered starting from 1 April 2023 
must comply with the Invoice Model in Annex 3 which 
contains the information provided in the Regulation, 
respectively information from the invoice and 
information from the annex to the invoice.

Electricity market functioning

•  Draft Order for the approval of the Regulation 

regarding the organized framework for trading on the 
organized future electricity markets administered by 
the Electric Energy and Natural Gas Market Operator 
OPCOM S.A., which aims to simplify the organized 
framework for trading electricity on the markets 
organized by future electricity, through the trading 
platforms managed by S.C. OPCOM S.A. – public 
consultation 
This draft order provides rules that refer to:

•  the types of products that can be traded on the 
standardized and flexible term product markets;

•  the method of establishing offers for the sale or 

purchase of electricity;

•  the way of organizing auctions/trading sessions;

•  the way of establishing transactions and contracting 

the traded energy;

•  the way of managing and publishing information on 

participants, offers and concluded transactions.

•  Draft Order for the approval of the Regulation on the 

organization and operation of the organized electricity 
market, administered by the Romanian Stock 
Exchange - S.A. – public consultation 
It provides rules that refer to:

•  Introduction of a chapter on organized market 

segments

•  The introduction of new products, namely flexible 
products and products derived from the field of 
electricity, settled by physical delivery

•  Description of the trading mechanisms used

•  Expanding market transparency information

•  Introduction of requirements regarding the use of a 

liquidity provider

•  Upon entry into force of the order, ANRE Order no. 
117/2022 for the approval of the Regulation on the 
organization and operation of the electricity futures 
contract market organized by the company Romanian 
Stock Exchange S.A., and within 30 days of approval, 
BRM publishes the operational procedures according to 
the Regulation entered into force.

Source: Electrica

A.3.2.2. Supply segment   

2023

2024

•  Law no. 5/2023 - Law on the modification and 

•  ANRE order no. 1 — Order for the approval of the 

completion of Law no. 220/2008 on the establishment of 
the system for the promotion of energy production from 
renewable energy sources.

•  modifies and completes Law no. 220/2008 regarding 

the trading of green certificates after the expiry 
of the accreditation period, the recovery of green 
certificates issued unduly, etc.

•  Law no. 15/2023 - Law on the approval of Government 
Emergency Ordinance no. 3/2022 for the modification 
and completion of Government Emergency Ordinance 
no. 118/2021 on the establishment of a compensation 
scheme for the consumption of electricity and natural 
gas for the cold season 2021-2022, as well as for the 
completion of Government Ordinance no. 27/1996 on 
the granting of facilities to persons living or working 
in some localities in the Apuseni Mountains and in the 
“Danube Delta” Biosphere Reserve

•  GEO no. 3/2022 is approved.

•  ANRE Order no. 3/2023 - Order for the approval of the 
Technical Standard on the technical requirements for 
connection to the electricity grids of public interest 
for electricity storage facilities and the notification 
procedure for the connection of electricity storage 
facilities

•  enter into force on 20 January 2023.

•  establishes the procedure and stages of the 

Methodology regarding the determination of the level 
of the minimum natural gas stock required to be 
established in the underground storage warehouses 
during the period April 1, 2024—October 31, 2024.

•  the methodology is approved, which aims to 

establish the method by which the level of the 
minimum natural gas stock that the holders of the 
natural gas supply license are obliged to establish 
in the underground storage warehouses during the 
period April 1, 2024-October 31, 2024 is determined

•  holders of natural gas supply licenses fulfil their 
obligation regarding the establishment of the 
minimum stock of natural gas by: storing natural gas 
in their own name, by concluding storage contracts; 
the conclusion of sales-purchase contracts whose 
object is quantities of natural gas stored by another 
supplier; concluding mandate contracts with another 
supplier.

•  the quantities of natural gas representing the 

minimum stock to be stored represent 90% of the 
storage capacity of the SI at the national level. The 
minimum natural gas stock of supply license holders 
is broken down for each holder depending on the 
weight of the amount of natural gas sold to end 
customers by the respective supplier in the gas year 
2022/2023 in the total amount of natural gas sold to 
end customers nationally.

notification process for the connection of storage 
facilities, as well as the content of the tests for 
verifying the compliance of storage facilities with 

•  ANRE Order no. 2 - Order amending and supplementing 
the Regulation on the organised framework for trading 
on the organised forward electricity markets

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the technical requirements for connection to the 
electricity grids of public interest.

•  The technical connection requirements apply to: new 
electricity storage facilities individually connected; 
new electricity storage facilities installed in an 
existing or new production site; new electricity 
storage facilities installed in an existing or new 
consumption site.

administered by the Operator of the Electricity and 
Natural Gas Market OPCOM - S.A., approved by Order 
of the President of the National Energy Regulatory 
Authority no. 12/2023.

•  the main amendments/completions to the 

Regulation on the organised framework for trading 
on the organised forward electricity markets 
administered by OPCOM are:

•  in the case of aggregated participation, the 

aggregator communicates to the PO the list of 
aggregated participants and the PO includes it, as 
an annex, in the Participation Agreement for bilateral 
electricity contract markets;

•  the party terminating a contract concluded on 

PCCB-LE-flex shall send a notification to the PO and 
the PO shall publish this information on its website 
and exclude that contract from the calculation of the 
corresponding market indices.

•  ANRE order no. 4/2023 – order for amending and 

completing some orders of the President of the National 
regulatory Authority for Energy in the field of connection 
of users to the electricity network of public interest.

•  Amend and supplement the following normative 
acts: Regulation on the connection of users to 
electrical networks of public interest (approved 
by ANRE order no. 59/2013), the framework of the 
technical connection notices (approved by ANRE 
order no. 74/2014). Procedure on connection to 
the public interest low voltage power networks of 
the consumption places belonging to household 
customers (approved by ANRE order no. 18/2022), 
procedure on connection to the public interest power 
networks of the consumption and production sites 
belonging to prosumers (approved by ANRE order 
no. 19/2022), Framework contracts for connection 
to public interest electricity networks (approved by 
ANRE order no. 105/2022).

•  ANRE order no. 5/2023 — order for the approval of 
the Regulation for the supply of electricity to final 
customers, as well as for the modification and 
completion of some orders of ANRE President:

•  it enters into force on 6 February 2023 (with the 
addition of provisions that have other dates of 
application);

•  The Regulation for the supply of electricity to final 

customers is approved;

•  The framework contract for the provision of the 

electricity distribution service concluded between 
the concessionaire distribution operator and the 
supplier (approved by ANRE order no. 90/2015) is 
amended/completed. The methodology for setting 
tariffs for the electricity distribution service by 
operators other than concessionaire distribution 
operators (approved by ANRE order no. 102/2016); 

•  The ANRE order no. 235/2019 for the approval of 

the Regulation for the supply of electricity to final 
customers is repealed, ANRE order no. 171/2020 for the 
approval of the conditions for the supply of electricity 
by the suppliers of last resort, ANRE order no. 181/2018 
for the approval of the procedure regarding the 
financial guarantees regime established by the final 
customers at the disposal of the electricity suppliers 
and for the amendment of the Regulation for the 
supply of electricity to final customers, ANRE order 
no. 85/2015 for the approval of the tripartite 

framework convention concluded between the 
supplier, The network operator and the final 
customer, holder of the network contract and the 
multi-party framework agreement concluded 
between the final customer, suppliers and the 
network operator, ANRE order no. 96/2015 for 
the approval of the Regulation on the activity of 
informing the final customers of electricity and 
natural gas;

•  By the Regulation for the supply of electricity to 

final customers, new notions regarding the supply 
contract with dynamic prices (binding offer/contract 
with dynamic prices for EFSA) and active customers 
with new obligations for the supplier were introduced 
(conditioning the existence of supply contract for 
both the place of consumption and the place of 
consumption and production); 

•  The main provisions amended/supplemented by 

the new regulation are:

•  At the vulnerable customer, they included among 

the facilities granted and the payment of the 
invoice, upon request, for a period of minimum 3 
months (submission to the supplier with whom 
he has a check of medical documents for people 
who need to keep alive by electrical appliances to 
ensure continuity in supply);

•  the acceptance of household customers has been 

extended with new categories;

•  To the standard offers for non-households, 
the definition of micro-enterprise in L123 
(categorization by consumption not by turnover/
no. employees). The obligation to display 
standard offers at single points of contact has 
disappeared. In the information in the offer, the 
unit value of taxes/fees/taxes/contributions will 
be included. It is no longer mandatory to pass into 
the offer the main conditions of the contract, but 
new elements are introduced, to be included in 
the offer;

•  The supply of a place of consumption can 

be made by several suppliers without being 
conditioned by the power of 1 MW.

•  the minimum elements of the tripartite/multi-

party convention are specified without a 
framework convention being imposed;

•  in the contract will be passed the same as in 
the offer the unit value of taxes/fees/taxes/
contributions. A new price element appears - 
the final billed price = supply price + all taxes, 
taxes... unit). At the conclusion of the contract, the 
supplier’s website must contain links to POSF;

•  when invoicing, explicit mentions of normative 

acts incident during the period of application (i.e. 
capping) appear. For all household customers 
(including eligible – competitive household) and 
SoLR customers, the billing period is monthly. For 

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Appendix 4 – Corporate Governance 

all household customers, for the consumption 
achieved starting with 1 April 2023, the invoice 
model for SU is observed. All invoices for the 
consumption registered starting 1 April will contain 
a minimum set of information. New terms for 
payment installment. 

•  ANRE order no. 9/2023 — order on establishing the 

mandatory quota for the purchase of green certificates 
for 2022

•  - 

The mandatory quota for 2022 was set at the 
level of 0.4934314 GC/MWh (compared to 0.5014313 
GC/MWh the estimated quota for 2022 and 0.449792 
GC/MWh the mandatory quota for 2021);

•  it shall enter into force on 1 march 2023. 

•  ANRE order no. 10/2023 — Order for approval of the 

methodology for determining the level of the minimum 
natural gas stock that holders of natural gas supply 
licenses have the obligation to set up in underground 
storage warehouses

•  The methodology for determining the level of the 

minimum natural gas stock that the holders of the a 
supply licenses are approved Natural gas is required 
to establish it in underground storage warehouses - 
natural gas suppliers, for the quantities delivered to 
final customers (PET direct client) who have opted 
for the purchase of natural gas directly from natural 
gas producers, fulfil their obligation to establish the 
minimum natural gas stock by:

•  storage of natural gas in its own name, by 

concluding contracts for underground storage of 
natural gas with one of the holders of the license to 
operate the underground storage systems of natural 
gas; and/or

•  conclusion, by may 31 of each year, of sale-purchase 

contracts covering quantities of natural gas from 
underground storage of natural gas stored by 
another natural gas supplier; and/or

•  signing mandate contracts with another supplier, in 

order to store natural gas.

Source: Electrica

A.4.1.  The Board of Directors of ELSA’s subsidiaries

All  the  Boards  of  Directors  of  ELSA’s  subsidiaries  were  composed  of  nonexecutive  directors  (5  members  in 

the case of DEER and EFSA and 3 members in the case of FISE and EPE) and the composition of these were as 

follows:

The distribution subsidiary DEER – 1 January 2023 – date of the report

01 January – present

Anna-Maria Vasile – Chair

Andrei–Gabriel Benghea–Malaies

Niculina – Cristina Somlea

Oana Babagianu

Constantin Cristian Olaru

Source: Electrica

The end date of the mandates of DEER’s directors at the date of this report is 31 March 2024.

The supply subsidiary EFSA – 1 January 2023 – date of the report

01 January – 30 April

01 May – 31 July

01 August – present

Mihai Ioanitescu – Chair

Ioana – Andreea Lambru - Chair

Ioana – Andreea Lambru - Chair

Maria Patrascoiu

Mirela Ionescu

Mirela Ionescu

Liviu Mitroi

Marius Lungu

Marius Lungu

Alexandru – Costin Dumitrescu

Alexandru – Costin Dumitrescu

Adrian Bazavan

Adrian – Marian Marin

Adrian – Marian Marin

Dragos – Stefan Roibu

Source: Electrica

The end date of the mandates of EFSA’s directors at the date of this report is 31 March 2024.

The energy services subsidiary SERV – 1 January 2023 – date of the report

01 January - 31 July

01 August – present

Alexandru – Aurelian Chirita - Chair

Alexandru – Aurelian Chirita - Chair

Bogdan Costas

Mihnea Barbulescu

Source: Electrica

Ramona Moldovan

Oana – Marie Arat

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The end dates of the mandates of SERV’s directors at the date of this report is 31 March 2024.

The electricity production subsidiary EPE – 1 January 2023 – 31 December 2023 

(the effective date of the merger whereby the company was absorbed by ELSA)

1 January – 30 April

01 May – 31 July

09 August – 31 December

Alexandru – Aurelian Chirita - Chair

Alexandru – Aurelian Chirita - Chair 

Alexandru – Aurelian Chirita - Chair

Mihai Ioanitescu

Mihai Ioanitescu

Mihai Ioanitescu

Alina Camelia Mustatea

Ioana – Andreea Lambru

Ioana – Andreea Lambru

Name

Period
(day month year)

Function

Anamaria Cristina 
Andro

Anamaria Cristina 
Andro

07 July 2023 – 31 December 2023

01 January 2024 – present

Source: Electrica

Diana Moldovan

01 January 2022 - 31 January 2023

EPE is an absorbed company in the merger between ELSA as absorbing company and EPE, GECI and EEV 1 as 

absorbed companies, the effective date of the merger being 31 December 2023.

Gabriela Dobrescu

01 January 2022 - 31 January 2023

A.4.2. Executive management of ELSA’s subsidiaries

Robert Moraru 

01 February 2023 -  =28 July 2023

The tables below show the subsidiaries’ executive managers with delegated management duties by Board of 

Ionel Boja

01 August 2023 – 31 December 2023

Directors of ELSA subsidiaries in 2023, as well as until the date of this report, as follows: 

The distribution subsidiary DEER– until the date of the report

Ionel Boja

01 January 2024 – present

Mandate until the date
(for acting executive 
managers at the date of 
the report)
(day month year)

31 January 2025

31 January 2025

Financial Division 
Manager (interim)

Financial Division 
Manager 

Business Support 
Division Manager

Asset Management 
Division Manager

Commercial Division 
Manager 

Commercial Division 
Manager (interim)

Commercial Division 
Manager

Name

Period
(day month year)

Function

Mandate until the date
(for acting executive 
managers at the date of 
the report)
(day month year)

Mihaela Rodica Suciu

29 September 2022 – present

 General Manager

 05 October 2026

Mihaela Rodica Suciu

01 January 2022 – 04 April 2022
suspended

Network Development 
Manager

 31 December 2024

Valentin Branescu

01 January 2022 – 31 January 2023

Sinan Mustafa

01 January 2022 – 31 January 2023

Sinan Mustafa

15 October 2022 – 31 January 2023

Vasile Farcas

01 January 2022 – 31 January 2023

Dragos Eduard Staicu

01 January 2022 – 31 January 2023

Lucian Penes

04 July 2022 – 06 July 2023

Deputy General 
Manager

Deputy General 
Manager

Energy Management 
Manager

Network Operations 
Manager

Integration Division 
Manager

Financial Division 
Manager

Gabriel Gheorghe 

01 February 2023 – present

Strategy and Planning 
Manager

31 January 2025

Gabriel Adrian Margin 

01 February 2023 – 12 September 2023

Technical Division 
Manager 

Gabriel Adrian Margin 

13 September 2023 – 31 December 
2023

Technical Division 
Manager (interim)

Mihaela Rodica Suciu

01 January 2024 –  present

Technical Division 
Manager (interim)

by the date of completion of 
the selection procedure

Source: Electrica

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The supply subsidiary EFSA – until the date of the report

Nume

Period
(day month year)

Function

Mandate until the date
(for acting executive 
managers at the date 
of the report)
(day month year)

Darius-Dumitru Mesca

1 October 2019 - present

General Manager

31 May 2024

Claudiu - Daniel Radulescu

20 May 2022 – 
06 October 2023  

Deputy General Manager 

Dumitru Chirita

27 October 2023 - present

Deputy General Manager

31 May 2024

Ruxandra-Madalina Rusu

20 May 2022 – present

Financial Division Manager

31 May 2024

Paul-Ferdoschi 

20 May 2022 – present

Sales Division Manager 

31 May 2024

Mihai Beu

20 May 2022 – present

George-Marian Fertu

13 October 2022 - present

Source: Electrica

Portfolio Management 
Division Manager 

Operations Division 
Manager 

31 May 2024

31 May 2024

The energy services subsidiary SERV – until the date of the report

Nume

Period
(day month year)

Function

Mandate until the date
(for acting executive 
managers at the date 
of the report)
(day month year)

Calin Ionel Dobra

18 October 2022 - present

General Manager

31 May 2024

Deputy General Manager

31 May 2024

Nitu Violeta Florentina 

Mircea Nicolae Cotoros

07 December 2023 - 
present

03 April 2023 – 
03 October 2023

Magdalena Necula

16 October 2023 - present

Vasile Ionel Bujorel Oprean

01 December 2017-
16 December 2023

Source: Electrica

Financial Manager

Assumption of duties and 
responsibilities of Financial 
Manager on the basis of an 
individual labor agreement 

Property Management 
and Product Development 
Manager

The electricity production subsidiary EPE – until the date of the report

The Board of Directors did not appoint executive managers within the subsidiary during the period from its 

establishment until the dissolution of the company following the merger by absorption by ELSA.

A.4.3.   Number of shares owned by the managers of Electrica  

Group

As table below shows the situation of ELSA shares held by the executive managers of the companies in the 

Group, currently on the position, which were mentioned in this chapter, a situation valid both on 31 December 

2023, as well as on 13 February 2024:

Name

Number of shares

Weight in the share capital (%)

Anamaria Cristina Andro

1000

0.00029

Source: Electrica

According  to  information  held  by  ELSA,  there  is  no  contract,  understanding  or  family  relationship  between 

the  executive  managers  of  the  Group  companies  mentioned  in  this  chapter,  currently  on  the  position,  and 

another person who may have contributed to their appointment as executive managers.

According  to  available  information,  the  members  of  the  BoD  and  the  executive  managers  of  the  Group 

companies mentioned in this chapter, currently on the position, have not been involved, in the last five years, 

in any litigations or administrative procedures related to their activity within the Group and to their capacity 

to fulfil their work-related duties within the Group, with the exception of the following disputes registered in 

the records of the Litigation Department of DEER:

Item 
no.

Adverse 
party

Procedural 
quality

Subject of 
the action

File no.

The Court

Procedural 
status

Term of court

1

2

Sinan 
Mustafa

claimant

Sinan 
Mustafa

claimant

action in 
tort (moral 
damages)

contractual 
liability action 
(bonus on 
termination 
of mandate 
and related 
interest)

6165/211/2022

Cluj-Napoca 
Court of Law

in progress

10 April 2024

10249/211/2023

Cluj-Napoca 
Court of Law

in progress

16 January 2024

29 February 2024

Source: Electrica

With the exception of one situation, i.e. EFSA’s Deputy General Manager is party to a dispute for the working 

group.

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A.4.4.  General Meetings of Shareholders of ELSA  

subsidiaries

Corporate approvals at GMS/BoD level in the case of ELSA’s subsidiaries are regulated through their articles 

of association, as well as through the implemented corporate policies.

ELSA, as majority shareholder of its subsidiaries, voted in their GMS in 2023 on various topics, amongst which 

the most important are related to:

•  revenue and expenses budgets, financial statements, financial part of the individual annual investment 

plan, distribution of the annual result;

•  modification of the general debt limit for DEER (temporary) and EFSA;

•  total ceiling of short and medium term financing, valid for facilities contracted by Electrica Furnizare 

SA during 2023, as well as within 6 months from 22 November 2023, regarding financing contracted by 

Electrica Furnizare SA from banking institutions (commercial banks or international financial institutions - 

IFIs) for financing current activities, including for refinancing purposes, with Electrica guarantee;

•  total ceiling of short, medium and long term financing available for facilities contracted by Distributie 

Energie Electrica Romania SA during 2023, as well as within 6 months from 22 November 2023, which can 

be contracted by Distributie Energie Electrica Romania SA from banking institutions (commercial banks 

or international financial institutions - IFIs) to cover additional costs related to its own technological 

consumption, as well as to finance working capital and investment projects, including for refinancing 

purposes, with Electrica’s guarantee;

•  setting KPIs for the Board members;

•  appointment of the financial auditor for 3 years in the case of DEER, EFSA and SERV and of the auditors in 

the case of EPE;

•  amendments/additions/guarantees related to facilities contracted from commercial banks or 

international financial institutions in the case of DEER and EFSA;

•  topics related to the merger in the capacity of EPE as the absorbed company, together with GECI and EEV 

by ELSA as the absorbing company;

•  the opportunity to purchase in batches the services of printing, printing and distribution of electricity/

natural gas invoices and other documents and computerised archiving of documents resulting from the 

distribution of disconnection notices for a period of two years for EFSA;

•  appointment of the directors in the Board of Directors of the subsidiaries.

Starting  with  the  end  of  2019/beginning  of  2020,  a  unitary  policy  was  implemented  within  the  Group’s 

subsidiaries,  regarding  the  organization  and  conduct  of  the  General  Meetings  of  Shareholders  of  the 

Electrica Group companies, whose objectives are for each company to obtain the corporate approvals in the 

competence of the GMS in a timely manner, in order to carry out in good conditions the operational activity, 

in  compliance  with  all  legal  and  statutory  provisions,  implementation  of  a  unitary  system  of  convening, 

organizing, carrying out the GMS meetings in Electrica Group, as well as better tracking of the implementation 

of GMS resolutions.

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Appendix 5 – Table list

Table 1. Company details

Table 2. Key financial data for 2023 – 2021 - S-IFRS-EU

Table 3. Key financial data for 2023 – 2021 - S-OMFP 2844/2016

Table 4. ELSA’s subsidiaries

Table 5. ELSA’s associates

Table 6. Long term investments owned by ELSA

Table 7. The key drivers of changes in the electricity market

Table 8. Ownership structure

Table 9. BSE Shares and Global Depositary Receipts (GDRs) on LSE

Table 10. Members of the BoD in 2023

Table 11. Participation of the BoD members at the BoD meetings and of the committees meetings in 2023

Table 12. ELSA’s Executive management during 2023, appointed on the basis of mandate contracts

Table 13. ELSA’s compliance with the provisions of the BSE Corporate Governance Code

Table 14. Operating segments

Table 15. The electricity distribution tariffs approved by ANRE starting with 1 April 2023

Table 16. Number of users and volume of installations as of 31 December 2023

Table 17. Degree of attrition of the installations

Table 18. Investment program approved by ANRE for 2019-2023 (RON mn.)

Table 19. Investments planned 2023 vs achieved 2023(RON mn.)

Table 20. The synthetic structure of investments achieved by distribution subsidiary in 2023 (RON mn.)

Table 21. PIF plan vs achieved 2023 (RON mn.)

Table 22. RAB evolution 2014-2023 (RON mn.)

Table 23. Number of employees evolution 2023 – 2019

Table 24. Group’s employment by age, 2023 - 2021

Table 25. Consolidated statement of the financial position 2023-2021 (RON mn.) – S-IFRS-EU

Table 26. Cash and cash equivalents 2023-2021 – S-IFRS-EU

Table 27. Number of shares 2023 - 2021 – S-IFRS-EU

Table 28. Revaluation reserves 2023-2021 (RON mn.) – S-IFRS-EU

Table 29. Legal reserves 2023-2021 (RON mn.) – S-IFRS-EU

Table 30. Consolidated statement of the financial position 2023-2021 (RON. mn) – S-OMFP 2844/2016

Table 31. Cash and cash equivalents 2023-2021 – S-OMFP 2844/2016

Table 32. Number of shares 2023 - 2021 – S-OMFP 2844/2016

Table 33. Revaluation reserves 2023-2021 (RON mn.) – S-OMFP 2844/2016

14

18

20

57

57

58

65

76

79

95

108

116

123

144

146

149

151

152

153

154

156

156

162

163

174

177

178

178

179

180

183

183

184

Table 34. Legal reserves 2023-2021 (RON mn.) – S-OMFP 2844/2016

Table 35. Consolidated statement of profit or loss (RON mn.) – S-IFRS-EU

Table 36. Electricity, natural gas and goods purchased 2023-2021 (RON mn.) – S-IFRS-EU

Table 37. Consolidated statement of profit or loss (RON mn.) – S-OMFP 2844/2016

Table 38. NL - intangible assets 2023 (RON mn.) – S-OMFP 2844/2016

Table 39. Electricity, natural gas and goods purchased 2023-2021 (RON mn.) – S-OMFP 2844/2016

Table 40. Consolidated cash flow statement (RON mn.) –S-IFRS-EU

Table 41. Consolidated cash flow statement (RON mn.) –S-IFRS-EU

Table 42. Separate statement of the financial position (RON mn.)

Table 43. Cash, restricted cash and short-term investments 2023-2021 (RON mn.)

Table 44. Loans granted to subsidiaries 2023-2021 (RON mn.)

Table 45. Dividends 2023-2021 (RON mn.)

Table 46. 2023 Provisions (RON mn.)

Table 47. Separate statement of profit or loss (RON mn.)

Table 48. Separate statement of cash flow (RON mn.)

Table 49. Statement of financial position (RON mn.) – S-IFRS-EU

Table 50. Statement of profit or loss (RON mn.) – S-IFRS-EU

Table 51. Statement of cash flow (RON mn.) – S-IFRS-EU

Table 52. Risks and uncertainties as of 31 December 2023

Table 53. Credit risk and expected credit losses for trade receivables as of 31 December 2023

Table 54. Credit risk and expected credit losses for trade receivables as of 31 December 2022

Table 55. Credit risk and expected credit losses for trade receivables as of 31 December 2021

Table 56. Contractual maturities of financial liabilities (RON mn.)

Table 57. Exposure to currency risk 2023-2021

Table 58. Average rate and year-end spot rate

Table 59. Sensitivity analysis

Table 60. Fixed-rate and variable-rate instruments

Table 61. Cash flow sensitivity analysis for variable-rate instruments

185

186

188

192

194

195

199

203

207

210

210

211

211

212

214

218

218

219

222

227

227

228

229

230

230

231

231

232

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Figure 33: Competitive Market, 2023

Figure 34: Volume of electricity supplied on the retail market (TWh)

Figure 35: Evolution of consumer numbers (ths.)

Figure 36: Consumers structure with split on electricity volumes supplied in 2023

Figure 37: Consumers structure with split on revenues in 2023

Figure 38: PRE Electrica Furnizare Members

Figure 39: Frequency index 2021-2023

Figure 40: PCB capacitors in operation at the end of 2023 compared to 2022

Figure 41: The quantity of waste (in tons) generated and the treatment methods

Figure 42: Revenue for 2023 and comparative information (RON mn.) – S-IFRS-EU

Figure 43: EBITDA and EBITDA margin for 2023 and comparative information (RON mn. and %) – S-IFRS-EU

Figure 44: EBIT and EBIT margin for 2023 and comparative information (RON mn. and %) – S-IFRS-EU

Figure 45: Net profit and Net profit margin for 2023 and comparative information (RON mn. and %) – S-IFRS-EU

Figure 46: Analysis of net regulated result - OMFP 1802/2014 - OMFP 2844/2016 - IFRS-EU for distribution segment 

2023 (RON mn.) – S-IFRS-EU

Figure 47: Revenue for 2023 and comparative information (RON mn.) – S-OMFP 2844/2016

Figure 48: EBITDA and EBITDA margin for 2023 and comparative information (RON mn. and %) – S-OMFP 

2844/2016

Figure 49: EBIT and EBIT margin for 2023 and comparative information (RON mn. and %) – S-OMFP 2844/2016

Figure 50: Net profit and Net profit margin for 2023 and comparative information (RON mn. and %) – S-OMFP 

2844/2016

Figure 51: Analysis of net regulated result –OMFP 1802/2014 – OMFP 2844/2016 - for distribution segment 2023 

(RON mn.) – S-OMFP 2844/2016

159

159

159

160

160

161

165

167

167

187

189

189

190

191

193

196

196

197

198

Appendix 6 – Figures list

Figure 1: Consolidated revenue of Electrica Group (RON mn.) - S-IFRS-EU

Figure 2: EBITDA (RON mn.) and EBITDA margin (%)- S-IFRS-EU

Figure 3: Consolidated net profit (RON mn.) - S-IFRS-EU

Figure 4: Net debt (RON mn.) - S-IFRS-EU

Figure 5: Consolidated revenue of Electrica Group (RON mn.) - S-OMFP 2844/2016

Figure 6: EBITDA (RON mn.) and EBITDA margin (%) - S-OMFP 2844/2016

Figure 7: Consolidated net profit (RON mn.) - S-OMFP 2844/2016

Figure 8: Net debt (RON mn.) - S-OMFP 2844/2016

Figure 9: Romanian electricity distribution map

Figure 10: Evolution of the number of users (mn.)

Figure 11: Quantity distributed (TWh)

Figure 12: Revenues - distribution segment (RON mn.) - S-IFRS-EU

Figure 13: EBITDA – distribution segment (RON mn.) - S-IFRS-EU

Figure 14: Net Profit – distribution segment (RON mn.) - S-IFRS-EU

Figure 15: Net debt/(cash) – distribution segment (RON mn.) - S-IFRS-EU

Figure 16: Revenues - distribution segment (RON mn.) - S-OMFP 2844/2016

Figure 17: EBITDA – distribution segment (RON mn.) - S-OMFP 2844/2016

Figure 18: Net Profit – distribution segment (RON mn.) - S-OMFP 2844/2016

Figure 19: Net debt/(cash) – distribution segment (RON mn.) - S-OMFP 2844/2016

Figure 20: Revenues - supply segment (RON mn.)

Figure 21: EBITDA - supply segment (RON mn.)

Figure 22: Net profit - supply segment (RON mn.)

Figure 23: Net debt/(Cash) - supply segment

Figure 24: Ownership structure as of 31 December 2023

Figure 25: Evolution of the adjusted closing price of ELSA’s shares vs BET-TR index during 2023 and January 2024

Figure 26: Monthly trading volume and weighted average monthly closing price of shares on BSE (in RON) and 

GDRs on LSE (in USD) during 2023 and January 2024

Figure 27: Gross dividends distributed (2014-2022) (RON mn.)

Figure 28: Gross dividend per share (RON) and dividend yield (%)

Figure 29: The geographical coverage of the companies in the Electrica Group in 2023

Figure 30: The structure of CAPEX achievements for distribution operator within the Group, in 2023 (RON mn.)

Figure 31: Market share of distribution segment in 2022

Figure 32: Total market shares, 2023

19

19

19

19

21

21

21

21

22

22

22

23

23

24

24

24

24

24

24

25

25

25

25

77

80

81

84

85

144

155

158

159

2023 DIRECTORS’ REPORTAPPENDIX 6 – FIGURES LIST2023 DIRECTORS’ REPORTELECTRICA S.AAPPENDIX 6 – FIGURES LISTELECTRICA S.A2023 ANNUAL REPORT2023 ANNUAL REPORT362

363

Glossary

ANRE

Romanian Energy Regulatory Authority

ASF

BPS

BoD

BRP

BSE

BTA

CAPEX

CGC

CMC

Romanian Financial Supervisory Authority (Autoritatea de Supraveghere 

Financiara)

Basis points

Board of Directors

Balance Responsible Party

Bucharest Stock Exchange

Business Transfer Agreement

Capital Expenditure

Corporate Governance Code

Competitive Market Component

CMBC (EA/CN)

CMNG-AN

CMNG-PA

Centralized Market for Bilateral Contracts (Extended Auction/Continuous 

Negotiation)

Centralized Market for Bilateral Natural Gas Contracts – Auction and Negotiation

Centralized Market for Bilateral Natural Gas Contracts – Public Auction

CMNG – OTC

Centralized Market for Bilateral Natural Gas Contracts – OTC

CMUS

CNTEE

CSR

DAM

Centralized Market for Universal Service

The National Transmission System Operator

Corporate Social Responsibility

Day Ahead Market

DAM-NG

Day Ahead Market – Natural Gas

DEER

DSO

DMS

EEA

EBIT

Distributie Energie Electrica Romania

Distribution System Operator

Distribution Management System

European Economic Area

Earnings before interest and tax

EBITDA

Earnings before interest, tax, depreciation and amortization

EDN

EGMS

EFSA

ELSA

ERM

EU

Electrical Distribution Network

Extraordinary General Meeting of Shareholders

Electrica Furnizare SA

Electrica SA

Enterprise Risk Management

European Union

EUR

FCA

The monetary unit of several member states of the European Union

Financial Conduct Authority – United Kingdom

FPM-LT

Medium and Long-Term Flexible Products Market

GC

GDP

GDR

GEO

GMS

HV

IAS

IFRIC

IFRS

IM-NG

IMS

IPO

IR

ISIN

KPI

kV

LOC

LR

LSH

LV

MV

MVA

MWh

MKP

NAFA

NES

NL

NRC

OMPF

Green Certificates

Gross Domestic Product

Global Depositary Receipts

Government Emergency Ordinance

General Meeting of Shareholders

High Voltage

International Accounting Standard

International Financial Reporting Interpretations Committee

International Financial Reporting Standard

Intraday Market for Natural Gas

Integrated Management System

Initial Public Offering

Investor Relations

International Securities Identification Number

Key Performance Indicators

KiloVolt

Land Ownership Certificate

Last Resort

Labor safety and health

Low Voltage

Medium Voltage

Mega Volt Ampere

MegaWatt hour

Management Key Position

National Agency for Fiscal Administration

National Electricity System

Network Losses

Nomination and Remuneration Committee

Order of Ministry of Public Finances

2023 DIRECTORS’ REPORTGLOSSARY2023 DIRECTORS’ REPORTELECTRICA S.AGLOSSARYELECTRICA S.A2023 ANNUAL REPORT2023 ANNUAL REPORT364

365

OGMS

OHS

OHSAS

OPCOM

PCB

RAB

RM

RON

RRR

SAD

SAPE

SCADA

SDEE

SDMN

SDTN

SDTS

SED

SEM

SEO

SoLR

SPO

TWh

TSO

UM

US

USD

VAT

Ordinary General Meeting of Shareholders

Occupational Health and Safety

Occupational Health and Safety Assessment Series

Romanian Gas and Electricity market operator

Polychlorinated Biphenylsor

Regulated Asset Base

Retail Market

Romanian monetary unit

Regulated Rate of Return

Distribution Automation System

Societatea de Administrare a Participatiilor in Energie

Supervisory Control And Data Acquisition

Societatea de Distributie a Energiei Electrice SA

Societatea de Distributie a Energiei Electrice Muntenia Nord SA

Societatea de Distributie a Energiei Electrice Transilvania Nord SA

Societatea de Distributie a Energiei Electrice Transilvania Sud SA

Servicii Energetice Dobrogea SA

Servicii Energetice Muntenia SA

Servicii Energetice Oltenia SA

Supplier of last resort

Secondary Public Offering

TeraWatt hour

Transmission and system operator

Unit of Measurement

Universal Service

United States Dollar

Value Added Tax

2023 DIRECTORS’ REPORTGLOSSARY2023 DIRECTORS’ REPORTELECTRICA S.AGLOSSARYELECTRICA S.A2023 ANNUAL REPORT2023 ANNUAL REPORT366

367

EXPLANATIONS

Regarding the Differences 

between Consolidated 

Financial Statements 

OMFP 2844/2016 vs  

IFRS-EU

368

369

Explanations Regarding the Differences Between the Consolidated 
Financial Statements OMFP 2844/2016 vs IFRS-EU and Regarding 
the Restatement of the IFRS 2022 Financial Statements

Electrica announced the information in this chapter through the current report BSE:IRIS code 09C80 from 25 

March 2024 and LSE:RNS Code 2225I from 25 March 2024.

In the consolidated financial statements prepared in accordance with IFRS-EU for the year 2023, Electrica 

Group has restated the consolidated financial statements for the year 2022, as a result of the consultations 

that took place during 2023 and finalized at the beginning of 2024 with the global financial auditors, also 

considering the complexity of the case under analysis, the auditors concluded that, in the absence of 

finalization of the consultation phase on IFRS 14 “Deferred charges related to regulated activities”, which 

specifies the treatment of capitalized costs from regulated activities, the arguments offered by the 

Company’s management aligned with  the opinion of external financial consultants for the inclusion of 

these additional costs related to NL in other IFRS standards in force (IFRS 9 or IFRIC 12), are not sufficient. 

Electrica Group published on 20 September 2023 an announcement regarding the above consultations, the 

status and possible impact on the published consolidated financial statements (BSE:IRIS code C96A2 from 

20 September 2023 and LSE:RNS Code 1027N from 20 September 2023).

2022 Context:

Until 31 December 2021, the consolidated financial statements prepared in accordance with OMFP no. 

2844/2016 were equivalent to IFRS-EU. Starting from December 31, 2022, according to the Order of the 

Ministry of Public Finances (OMFP) no. 3900/2022, a new clause was provided regarding the regulatory 

accounts to cover the additional expenses of the network losses (“NL”) for the actual energy costs 

compared to the ANRE ex-ante prices recognized in the distribution tariffs, by constituting intangible assets 

for these additional expenses. This amendment to the financial regulations of OMFP 3900/2022, was a result 

of the electricity prices context of 2022, which determined ANRE to issue, for the Distribution Operators, a 

new methodology regarding additional costs with NL during the period 1 January 2022 – 31 March 2025. 

The calculation of the capitalized amounts is carried out in compliance with the legislation specific to the 

entities that are the subject of GEO 119/2022, with subsequent additions and changes. According to ANRE 

regulations, the capitalized costs as intangible assets are recorded in the accounting record and therefore 

in the annual financial statements according to the instructions issued by the Ministry of Finance. ANRE 

will determine the recognized annual amounts of capitalized costs based on the recognized quantities 

and prices for NL. Revenue from the production of intangible fixed assets represents additional own 

technological consumption calculated as the difference between the net cost of acquisition and the cost of 

own technological consumption included in the regulatory tariff.

In the set of audited consolidated financial statements prepared in accordance with IFRS-EU as at and for 31 

December 2022, these expenses had a different applicable financial treatment, based on the amendment 

of the concession contracts regarding the recognition of additional costs (actual costs vs. recognized ex-

ante in tariffs) with the purchase of electricity to cover NL for the distribution segment. On January 20, 2023, 

the Ministry of Energy, as grantor, amended the concession contract with Electrica Group for the distribution 

segment to reflect that in the event of early termination of the concession contract for any reason, the 

new concessionaire would reimburse the Group for the amount of unrecovered capitalized costs at the 

time of termination of the concession contract with the purchase of electricity for its own technological 

consumption compared to the costs included in the regulated tariffs. Based on the amendments to the 

concession contracts, the additional cost of purchasing electricity to cover the distribution operators’ NL 

was recognized as a financial asset - part of the concession contract. These amounts are guaranteed by 

the concession contract, which has been amended according to legal provisions. The resulting financial 

assets have been presented in the consolidated financial statements at fair value determined as the net 

present value of the additional electricity purchase costs incurred by the distribution subsidiary for NL.

2023 Context:

In the audited annual consolidated financial statements for the year 2023, prepared in accordance with 

OMFP no. 2844/2016, for the approval of the Accounting Regulations in accordance with the International 

Financial Reporting Standards adopted by the European Union as amended, the Group has recorded for 

the year 2023, intangible assets and income from the production of intangible assets in the amount of 

RON 19 million, thus the balance of intangible assets as at 31.12.2023 is RON 771 million (31.12.2022: RON 951 

million). The auditor’s opinion for annual consolidated financial statements for the year 2023, prepared in 

accordance with OMFP no. 2844/2016 is unqualified – clean report.

In the audited annual consolidated financial statements for the year 2023, prepared in accordance with 

International Financial Reporting Standards as adopted by the European Union as amended (IFRS-EU), 

the Group has reassessed its previous position on the consolidated financial statements relating to the 

recognition of the financial asset recognized as a result of the amendment to the concession agreements, 

for which a financial asset in the amount of RON 951 million, representing the difference between the 

cost of energy purchase for NL and the cost of NL included in the regulatory tariff by ANRE, for the period 

1 January - 31 December 2022, was recognized and comparatives were restated in the current year 

financial statements. See note 5 in the IFRS-EU consolidated financial statements. The auditor’s opinion for 

the annual consolidated financial statements for the year 2023, prepared in accordance with IFRS-EU is 

unqualified – clean report.

It is worth mentioning that in 2023, the additional capitalized NL on the distribution segment was RON 19 

million vs. RON 989 million as it was in the previous year, as the Group managed to significantly reduce the 

additional electricity procurement costs for NL on the distribution segment following the implementation of 

MACEE.

In conclusion, for the annual consolidated financial statements for the year 2023 prepared in accordance 

with OMFP 2844/2016, the Group recognizes intangible assets in correspondence with revenue from the 

production of intangible assets as a result of the additional difference in NL for the distribution subsidiary, 

the assets being amortized over a period of 5 years, while in the audited annual consolidated financial 

statements for the year 2023, prepared in accordance with IFRS-EU, the recovery of revenue related to NL 

capitalized in the previous period is recovered in the year in question, without recognizing intangible assets, 

the revenue being included in the Group’s turnover. Therefore, the significant difference in the income 

statement from 2023 between the set of financial statements according to OMFP 2844/2016 and IFRS-EU is 

the amortization of intangible assets in the first set, which does not have a correspondence in the second 

set, thus there will be differences between the results of the two sets of annual consolidated financial 

statements. In regard to the financial position, the difference will be the unamortized value of the intangible 

asset recognized on the OMFP 2844/2016 set. Therefore, in order to comply with both local and international 

reporting standards and regulations, the Group will prepare two sets of annual consolidated financial 

statements, one prepared in accordance with OMFP 2844/2016 and one in accordance with IFRS-EU.

EXPLANATIONS REGARDING THE DIFFERENCES BETWEEN CONSOLIDATED FINANCIAL STATEMENTS  OMFP 2844/2016 VS IFRS-EUEXPLANATIONS REGARDING THE DIFFERENCES BETWEEN CONSOLIDATED FINANCIAL STATEMENTS  OMFP 2844/2016 VS IFRS-EU2023 ANNUAL REPORT2023 ANNUAL REPORT370

371

2023 
SEPARATE FINANCIAL 
STATEMENTS

as at and for the year ended

31 December 2023

prepared in accordance with

Ministry of Public Finance Order no. 2844/2016 
for the approval of the Accounting Regulations 
in accordance with International Financial 
Reporting Standards

Free translation from Romanian,  
which is the official and binding version

372

373

Contents

Separate statement of financial position

Separate statement of profit or loss

Separate statement of comprehensive income

Separate statement of changes in equity

Separate statement of cash flows

Notes to the separate financial statements

Basis of preparation

1.

2.

3.

4.

5.

Merger by absorption into Electrica S.A.

Reporting entity and general information

Basis of accounting

Functional and presentation currency

Use of judgments and estimates

Accounting policies

6.

7.

8.

9.

Basis of measurement

Changes in significant accounting policies

Significant accounting policies

Adoption of new and revised standards

Performance for the year

10. Other income and operating expenses

11.

Net finance income

12.

Earnings per share

Employee benefits

13.

Short-term employee benefits

14.

Post-employment and other long-term employee benefits

15.

Employee benefit expenses

374

376

377

378

380

382

384

387

388

388

389

389

389

398

401

401

402

402

403

406

Long-term bank loans

16.

Bank borrowings and overdrafts

Income tax

17.

Income tax

Assets

18.

Trade receivables

19. Other receivables

20. Cash and cash equivalents

21.

Property, plant and equipment

22.

Intangible assets

23.

Investments in subsidiaries

24.

Investments in associates

25.

Loans granted to subsidiaries

Equity and liabilities

26. Capital and reserves

27. Trade payables

28. Other payables

29. Provisions

Financial instruments

30. Financial instruments - fair values and risk management

Other information

31.

Related parties

32. Contingencies

33. Commitments

34. Subsequent events

407

408

409

411

412

412

415

416

417

419

423

425

425

426

426

431

435

436

437

2023 SEPARATE FINANCIAL STATEMENTS2023 ANNUAL REPORT2023 SEPARATE FINANCIAL STATEMENTS2023 ANNUAL REPORT374

375

Note

31 December

31 December  

2023

2022

Note

31 December

31 December  

2023

2022

ASSETS

Non-current assets

Property, plant and equipment

Intangible assets

Goodwill

Investments in subsidiaries

Investments in associates 

Other investments

Loans granted to subsidiaries – long term

Right of use assets

Total non-current assets

Current assets

Cash and cash equivalents

Trade receivables

Other receivables

Inventories

Prepayments

Loans granted to subsidiaries – short term

Assets held for sale

Total current assets

Total assets

EQUITY AND LIABILITIES

Equity

Share capital 

Share premium

Treasury shares reserve

Pre-paid capital contributions in kind from shareholders

Revaluation reserves

Legal reserves

Other reserves

Retained earnings

Total equity

(Continued on next page)

21

22

22

23

24

25

20

18

19

25

26

26

26

26

26

26

26

145,084,285 

98,939,502

1,112,707 

 1,446,450 

126,189

-

2,309,928,230 

2,298,128,361

16,637,710 

7,000,000 

18,821,421

7,000,000

1,279,262,987 

1,276,325,000

4,013,286 

248,087

3,764,485,655 

3,699,588,560

19,154,241

105,631,939

1,747,406 

795,526

597,845,163 

501,493,067

2,836 

1,014,231 

89,659,699

279,655

-

1,023,678

45,034,523

279,655

Liabilities

Non-current liabilities

Lease liability – long term

Employee benefits

Long-term bank borrowings

Total non-current liabilities

Current liabilities

Current portion of long-term bank borrowings

Bank overdrafts

Lease liability – short term

Trade payables

Other payables

Deferred revenue

Employee benefits

Provisions

Total current liabilities

Total liabilities

14

16

20

27

28

13,14

29

3,271,217

1,326,142

54,049 

1,095,651

-

100,000,000

4,597,359

101,149,700

216,768,248

205,520,079 

207,830,772

797,944 

6,645,430 

215,561

4,744,726

51,096,530 

36,474,707

285,152

7,254,982

725,084 

173,187

5,840,131

1,041,676

489,093,450 

256,320,760

493,690,809

357,470,460

709,703,231

654,258,388

Total equity and liabilities 

4,474,188,886

4,353,846,948

4,474,188,886

4,353,846,948         

The accompanying notes are an integral part of these separate financial statements.

3,464,435,970

3,464,435,970

103,049,177 

103,049,177

(75,372,435)

(75,372,435)

7,366 

7,366

20,258,665 

11,806,704

231,595,694  

229,435,101

224,105,807 

224,105,807

12,417,834   

38,908,798

3,980,498,078 

3,996,376,488

Chief Executive Officer

Alexandru-Aurelian Chirita

Chief Financial Officer

Stefan Alexandru Frangulea

25 March 2024

SEPARATE STATEMENT OF FINANCIAL POSITIONAS AT 31 DECEMBER 20232023 ANNUAL REPORTSEPARATE STATEMENT OF FINANCIAL POSITION2023 ANNUAL REPORTELECTRICA S.AAS AT 31 DECEMBER 2023ELECTRICA S.A 
 
 
 
 
 
              
 
 
 
 
 
376

377

Other income

Employee benefits

Depreciation and amortization

Reversal of impairment of trade and other receivables, net

Reversal of impairment/(Impairment) of property, plant and 
equipment, net

Change in provisions for legal cases and non-compete clauses, 
net

Other operating expenses

Loss before finance result

Finance income

Finance costs

Net finance income

Share of results of associates

Profit before tax

Income tax benefit

Profit for the year

Earnings per share

Basic and diluted earnings per share (RON)

Note

10

15

21,22

18,19

21

29

10

11

11

24

17

12

2023

2022

Note

2023

2022

1,442,602

5,179,621

(30,295,203)

(30,156,958)

(1,448,001)

(1,586,304)

568,609

853,836

101,380 

4,840

322,045

3,196,438 

(21,247,445)

(18,538,612)

(49,803,557)

(41,799,595)

97,634,651 

78,298,886

(29,737,518)

(12,440,801)

67,897,133

65,858,085

Profit for the year

23,940,836 

24,304,885

Other comprehensive income

Items that will not be reclassified to profit or loss

Revaluation of property, plant and equipment

Tax related to revaluation of property, plant and equipment

Effect of the merger on the revaluation of property, plant and 
equipment

Effect of the merger in deferred tax on the revaluation of tangible 
fixed assets

Re-measurements of the defined benefit liability 

Tax related to re-measurements of the defined benefit liability

26

17

26

17

14

17

6,988,472 

(1,138,457)

2,701,689 

(62,344)

(25,755)

4,121 

-

-

-

-

1,621,494

(259,439)

Other comprehensive income, net of tax

8,467,726  

1,362,055

(38,825)

(13,044)

Total comprehensive income

32,408,562  

25,666,940

18,054,751 

24,045,446

5,886,085 

259,439

23,940,836 

24,304,885

0.07

0.07

The accompanying notes are an integral part of these separate financial statements.

Chief Executive Officer

Alexandru-Aurelian Chirita

Chief Financial Officer

Stefan Alexandru Frangulea

The accompanying notes are an integral part of these separate financial statements.

25 March 2024

Chief Executive Officer

Alexandru-Aurelian Chirita

Chief Financial Officer

Stefan Alexandru Frangulea

25 March 2024

SEPARATE STATEMENT OF PROFIT OR LOSSFOR THE YEAR ENDED 31 DECEMBER 20232023 ANNUAL REPORTSEPARATE STATEMENT OF COMPREHENSIVE INCOME2023 ANNUAL REPORTELECTRICA S.AFOR THE YEAR ENDED 31 DECEMBER 2023ELECTRICA S.A 
 
378

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SEPARATE STATEMENT OF CHANGES IN EQUITYFOR THE YEAR ENDED 31 DECEMBER 20232023 ANNUAL REPORTSEPARATE STATEMENT OF CHANGES IN EQUITY2023 ANNUAL REPORTELECTRICA S.AFOR THE YEAR ENDED 31 DECEMBER 2023ELECTRICA S.A 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
380

381

Cash flows from operating activities 

Cash flows from investing activities

Note

2023

2022

Note

2023

2022

23,940,836 

24,304,885

Payments for purchases of property, plant and equipment

Profit for the year

Adjustments for:

Depreciation 

Amortisation 

Reversal of impairment of property, plant and equipment, net

Reversal of impairment of trade and other receivables, net

Net finance income

Share of loss of associates

Changes in employee benefits obligations

Changes in provisions, net

Income tax benefit

Changes in:

Trade receivables

Other receivables

Trade payables

Other payables

Employee benefits

19

20

19

16,17

9

22

12

27

15

937,740 

510,261 

(853,836) 

(568,609) 

1,006,439

579,865

(4,840)

(101,380)

(67,897,133)

(65,858,085)

38,825 

219,205 

(332,592) 

(5,886,085) 

13,044

(4,977,943)

(3,196,438)

(259,439)

(49,880,842) 

(48,493,892)

(14,127)

(12,621,613) 

1,560,732 

229,663 

1,306,130 

231,727

(489,743)

428,462

757,931

64,760 

Cash flow used in operating activities

(59,420,057) 

(47,500,755)

Interest paid

(29,647,323) 

(12,238,993)

Net cash used in operating activities

(89,067,380) 

(59,739,748)

(Continued on next page)

Payments for purchase of intangible assets

Payments for purchase of interests in subsidiaries, net

Proceeds from the sale of property, plant and equipment

Proceeds from loans granted to subsidiaries

Payment for acquisition of investment in associate

Payment for other long term investments

Loans granted to subsidiaries

Cash used by subsidiaries under the cash pooling facility

Interest received

Net cash (used in)/from investing activities

Cash flows from financing activities

Dividends paid

Payment of lease liabilities

Repayment / Proceeds from overdrafts

Long-term bank borrowings

Net cash used in financing activities

Net decrease / increase in cash and cash equivalents

Cash and cash equivalents at 1 January

Cash and cash equivalents transferred on merger

Reclassification of overdrafts previously presented as cash and 
cash equivalents

Cash and cash equivalents at 31 December

The accompanying notes are an integral part of these separate financial statements.

(1,779,204)

(970,642)

(12,376,633)

- 

-

(38,825) 

(1,875,869)

(166,015)

(4,439,771)

1,179,434

135,945,985

(13,044)

-

(7,000,000)

(92,296,606)

(150,980,508)

23,29

(75,423,575)

96,254,223 

81,289,620

72,086,815

(86,631,261)

126,026,647

24

(40,136,410) 

(153,150,278)

(479,678) 

(2,310,693)

(552,172)

87,289,418

15

116,768,248 

100,000,000

73,841,467 

33,587,068

(101,857,173)

99,873,967

105,631,939 

(114,783,382)

15,379,476

-

120,541,354

19,154,241 

105,631,939

18

18

18

18

Chief Executive Officer

Alexandru-Aurelian Chirita

Chief Financial Officer

Stefan Alexandru Frangulea

25 March 2024

SEPARATE STATEMENT OF CASH FLOWSFOR THE YEAR ENDED 31 DECEMBER 20232023 ANNUAL REPORTSEPARATE STATEMENT OF CASH FLOWS2023 ANNUAL REPORTELECTRICA S.AFOR THE YEAR ENDED 31 DECEMBER 2023ELECTRICA S.A 
 
382

383

1. Merger by absorption into Electrica S.A.

On 23 August 2023 the Extraordinary General Meeting of Shareholders (EGM) of Electrica SA approved 

in principle the merger by absorption between Societatea Energetica Electrica SA (Electrica SA or ELSA), 

Societatea Electrica Productie Energie SA (EPE), Electrica Energie Verde 1 SRL (EEV1) and Green Energy 

Consultancy & Investments SRL (GECI) (together “the Companies”) and the participation of the Companies 

in the merger, with Societatea Energetica Electrica SA as the absorbing company, Electrica Productie 

Energie SA, Electrica Energie Verde 1 SRL and Green Energy Consultancy & Investments SRL as absorbed 

Investments in subsidiaries

Investments in associates 

Other investments

companies, with the effective date of the merger being 31 December 2023.

Loans granted to subsidiaries – long term

On December 20, 2023, the Extraordinary General Meeting of Shareholders approved the merger by 

absorption between Electrica SA and the absorbed companies, on the basis of the merger project 

registered at the Commercial Registry Office of the Bucharest Court and published in the Official Gazette of 

Romania, Part IV, no. 4953 of 07 November 2023, and voting in favour of the approval of the liquidation and 

deregistration from the Commercial Register and from the records of the financial administration of the 

absorbed companies as from the effective date of the merger, i.e. 31 December 2023.

On January 3, 2024, the Decision no. 74/03.01.2024 was pronounced, admitting the application registered 

under no. 620095 dated 27.12.2023 regarding the registration of the merger in the commercial register on 

31.12.2023, of the company Societatea Energetica Electrica SA and the deregistration from the commercial 

Right of use assets

Total non-current assets

Current assets

Cash and cash equivalents

Trade receivables

Other receivables

Inventories

Prepayments

register of the companies Societatea Electrica Productie Energie SA, Electrica Energie Verde 1 SRL and Green 

Loans granted to subsidiaries – short term

Energy Consultancy & Investments SRL.

Therefore, the merger took effect from the effective date, that is 31 December 2023, when Electrica Productie 

Energie SA, Electrica Energie Verde 1 SRL and Green Energy Consultancy & Investments SRL as absorbed 

Assets held for sale

Total current assets

companies terminated their existence, being dissolved and deregistered. All the assets and liabilities held 

Total assets

by these companies were transferred by effect of the merger by absorption and by operation of law to 

Societatea Energetica Electrica S.A., as the absorbing company, without increasing the share capital of 

Electrica S.A. as a result of the merger and without issuing new shares in the share capital of the absorbing 

company.

The merger of the above four companies was completed and registered with the National Trade Registry 

Office on January 3, 2024, with an effective date of December 31, 2023.

EQUITY AND LIABILITIES

Equity

Share capital 

Share premium

Treasury shares reserve

The financial results and Statement of Financial Position of the merged entities are incorporated 

prospectively as of the effective date of the merger, without modification of the pre-merger information.

Pre-paid capital contributions in kind from shareholders

Balances transferred from absorbed companies as at 31.12.2023, before merger adjustments

ASSETS

Non-current assets

Property, plant and equipment

Intangible assets

Fond comercial 

Note

31 December 

31 December 2023

2023

Balances before 

Merger 

the merger 

adjustments

21

22

22

37,391,998

43,554

- 

-

-

1,446,450

Revaluation reserves

Legal reserves

Other reserves

Retained earnings

Total equity

Liabilities

Non-current liabilities

Lease liability – long term

Employee benefits

Deferred tax liabilities

Note

31 December 

31 December 2023

2023

Balances before 

Merger 

the merger 

adjustments

31,075,528

(33,836,003)

- 

 - 

9,816,700

1,897,914

-

-

(9,816,700)

-

80,225,695

(42,206,253)

20

15,379,476

365,085 

472,595

2,836 

58,059 

-

-

-

-

(8,190,513)

-

-

(44,733,443)

-

16,278,052

(52,923,956)

96,503,747

(95,130,209)

128,010

(128,010)

- 

-

- 

2,639,346

202

- 

26

26

-

-

-

-

-

-

23,977,010

(32,264,841) 

26,744,568 

(32,392,851)

1,832,791

-

4,751,749

-

-

-

NOTES TO THE SEPARATE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 20232023 ANNUAL REPORTNOTES TO THE SEPARATE FINANCIAL STATEMENTS2023 ANNUAL REPORTELECTRICA S.AFOR THE YEAR ENDED 31 DECEMBER 2023ELECTRICA S.A 
 
 
 
384

385

Note

31 December 

31 December 2023

2023

Balances before 

Merger 

the merger 

adjustments

9,816,699

16,401,239

(9,816,699)

(9,816,699)

As at 31 December 2023, the Company’s subsidiaries are the following: 

Subsidiary

Activity

Distributie Energie Electrica 
Romania S.A. (“DEER”)

Electricity distribution in 
geographical areas Transilvania 
Nord, Transilvania Sud and 
Muntenia Nord

Sole 
registration 
code

Head Office

% shareholding

14476722

Cluj-Napoca

99.99999929%

Electrica Furnizare S.A. (“EFSA”)

Electricity and natural gas supply

28909028

Bucuresti

99.9998444099934%

-

-

96,570

339,972

-

-

-

Electrica Serv S.A. (“SERV”)

Services in the energy sector 
(maintenance, repairs, 
construction)

Sunwind Energy S.R.L.

Electricity generation

New Trend Energy S.R.L.

Electricity generation

Foton Power Energy S.R.L.

Electricity generation

17329505

Bucuresti

99.99998095%

42910478

Bucuresti

42921590

Constanta

43652555

Constanta

100%

60%

60%

52,921,740

(52,920,659)

-

(342)

-

-

-

53,357,940

69,759,179

(52,920,659)

(62,737,358)

96,503,747

(95,130,209)

Long-term bank borrowings

Total non-current liabilities

Current liabilities

Current portion of long-term bank borrowings

Bank overdrafts

Lease liability – short term

Trade payables

Other payables

Deferred revenue

Employee benefits

Provisions

Total current liabilities

Total liabilities

Total equity and liabilities 

2. Reporting entity and general information

These financial statements are the separate financial statements of Societatea Energetica Electrica S.A. 

(“Company” or “Electrica SA”) as at and for the year ended 31 December 2023.

Electrica was originally incorporated as a company in 1998 by Government Decision no. 365/1998, following 

the restructuring of the former National Electricity Company (RENEL). On 1 August 2000, following the 

restructuring of the former National Electricity Company (CONEL) under the Government Decision no. 

627/2000, the Company was allocated a new tax registration number. The registered office of the Company 

is no 9, Grigore Alexandrescu Street, District 1, Bucharest, Romania. The Company has sole registration code 

13267221 and Trade Register number J40/7425/2000.

As at 31 December 2023 and 31 December 2022, the major shareholder of Societatea Energetica Electrica S.A. 

is the Romanian State, represented by the Ministry of Energy with a share of ownership of 48.79% from the 

share capital.

The Company’s shares are listed on the Bucharest Stock Exchange and the global depository receipts 

(“GDRs”) are listed on the London Stock Exchange. The shares traded on the London Stock Exchange are the 

global depositary receipts, one global depositary receipt representing four shares. The Bank of New York 

Mellon is the depositary bank for these securities. 

As at 31 December 2023, the Company’s subsidiaries are the following: 

Subsidiary

Activity

registration 

Head Office

% shareholding 

Sole 

Distributie Energie Electrica 
Romania S.A. (“DEER”)

Electricity distribution in 
geographical areas Transilvania 
Nord, Transilvania Sud and 
Muntenia Nord

code

14476722

Cluj-Napoca

99.99999929%

Electrica Furnizare S.A. (“EFSA”)

Electricity and natural gas supply

28909028

Bucuresti

99.9998444099934%

Electrica Serv S.A. (“SERV”)

Electrica Producție Energie 
S.A.(“EPE”)

Services in the energy sector 
(maintenance, repairs, 
construction)

17329505

Bucuresti

99.99998095%

Electricity generation

44854129

Bucuresti

99.9920%

Sunwind Energy S.R.L.

Electricity generation

New Trend Energy S.R.L.

Electricity generation

42910478

Constanta

42921590

Constanta

Green Energy Consultancy & 
Investments S.R.L.

Servicii Energetice Oltenia S.A. 
(in bankruptcy)

Servicii Energetice Moldova S.A. 
(in bankruptcy)

Servicii Energetice Banat S.A. 
(in bankruptcy)

Servicii Energetice Dobrogea 
S.A. (in bankruptcy)

Electricity generation

29172101

Prahova

Services in the energy sector 
(maintenance, repairs, 
construction)

Services in the energy sector 
(maintenance, repairs, 
construction)

Services in the energy sector 
(maintenance, repairs, 
construction)

Services in the energy sector 
(maintenance, repairs, 
construction)

29389861

Craiova

29386768

Bacau

29388211

Timisoara

29388378

Constanta

60%

60%

75%

100%

100%

100%

100%

*On 31.12.2023 the merger by absorption took place between Societatea Energetica Electrica SA (ELSA) as absorbing company and 
Societatea Electrica Productie Energie SA (EPE), Electrica Energie Verde 1 SRL (EEV1) and Green Energy Consultancy & Investments SRL 
(GECI) as absorbed companies.

NOTES TO THE SEPARATE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 20232023 ANNUAL REPORTNOTES TO THE SEPARATE FINANCIAL STATEMENTS2023 ANNUAL REPORTELECTRICA S.AFOR THE YEAR ENDED 31 DECEMBER 2023ELECTRICA S.A386

387

As at 31 December 2023, the Company’s associates are the following: 

Acquisition of shares in associates

2023 between Company and its former subsidiary, 

Associate

Activity

registration 

Head Office

as at 31 December 

Sole 

% shareholding 

code

2023

Crucea Power Park S.R.L.

Electricity generation

25242042

Constanta

40%

As at 31 December 2022, the Company’s associates are the following: 

Sole 

% shareholding 

Electrica Energie Verde 1 S.R.L., Electrica SA became 

On 15 May 2023, Electrica acquired an additional 10% 

a producer of electricity from renewable sources 

of the shares and voting interests in Crucea Power 

that operates a photovoltaic park in Stanesti, 

Park S.R.L.. As a result, the Group’s equity interest 

Giurgiu county, with an installed capacity of MW 

increased from 30% to 40%.

7.5 (operating capacity limited MW to 6.8). In 2023 

the operation of the plant was continuous, with no 

Merger by absorption within the Group

significant events leading to production shutdowns, 

producing in total MWh 9,599 (2022: MWh 10,466). 

Associate

Activity

registration 

Head Office

as at 31 December 

On 20 December 2023, the Extraordinary General 

According to Law no. 220/2008 and based on 

code

2022

Meeting of the Company’s Shareholders (EGMS) 

the accreditation issued by ANRE, Stanesti park 

Crucea Power Park S.R.L.

Electricity generation

25242042

Constanta

Foton Power Energy S.R.L.

Electricity generation

43652555

Constanta

30%

30%

As at 31 December 2023 and 31 December 2022, the Company’s other long term investments are the 

following: 

approved the merger by absorption between 

receives a number of 6 green certificates (“GC”) for 

Societatea Energetica Electrica SA (“ELSA”), 

each MWh produced and delivered, of which until 

Societatea Electrica Productie Energie SA (“EPE”), 

2020, 4 GC were issued for trading and 2 GC were 

Electrica Energie Verde 1 SRL (“EEV1”) and Green 

postponed (the amendment is introduced by Law 

Energy Consultancy & Investments SRL (“GECI”) 

no. 184/2018). The postponed green certificates will 

(together the “Companies”) and the participation 

be reinserted starting from 1 January 2021, in equal 

of the Companies in the merger, with Societatea 

monthly tranches until 31 December 2030.

Company

Activity

registration 

code

Sole 

Head 

Office

% shareholding 

% shareholding 

as at 31 

as at 31 

December 2023

December 2022

Energetica Electrica SA as absorbing company, 

Electrica Productie Energie SA, Electrica Energie 

Geopolitical tensions

Verde 1 SRL and Green Energy Consultancy & 

CCP.RO Bucharest S.A. 
(CCP.RO)

Financial brokerage activities, 
exclusively insurance 
activities and pension funds 
(risk management through 
derivative products on the 
energy market)

17777754

Bucuresti

8.06%

8.06%

2023.

The Company’s main activities

interventions in Ukraine by the Russian Federation. 

As a result of these escalations, economic 

uncertainties in energy and capital markets have 

increased, with global energy prices expected to 

Investments SRL as absorbed companies, with the 

In February 2022 global geopolitical tensions 

effective date of the merger being 31 December 

significantly escalated following military 

Changes in Company structure during 2023

the project was acquired 60%. Sunwind Energy 

develops the photovoltaic project “Satu Mare 2”, 

Acquisition of shares in subsidiaries

with an installed capacity of 27 MW. The project 

is in the “ready-to-build” phase and is located in 

On 6 February 2023, Electrica completed the 

the vicinity of Botiz commune, Satu Mare county. 

acquisition of  Green Energy Consultancy & 

Also, the Financing Contract was signed between 

Investments S.R.L., having as main object of activity 

Sunwind Energy SRL as the Beneficiary and the 

the production of energy from photovoltaic sources. 

Ministry of Energy as the coordinator of reforms 

Until 31 December 2022 the company was acquired 

and/or investments for the National Recovery and 

75%. Green Energy Consultancy & Investments 

Resilience Plan (NRRP). 

S.R.L. develops the photovoltaic project “Vulturu”, 

with a designed installed capacity of 12 MWp DC 

On 31 July 2023, Electrica acquired an additional 30% 

(peak power at the panels level) and 9.75 MW AC 

of the shares and voting interests in Foton Power 

(authorised power for delivery into the grid), located 

Energy S.R.L.,having as main object of activity the 

near Vulturu locality, Vrancea county. The project is 

production of energy from photovoltaic sources. As 

in the “ready-to-build” phase.

a result, the Group’s equity interest increased from 

30% to 60%, thus, Foton Power Energy S.R.L. becoming 

On 24 March 2023, Electrica completed the 

a subsidiary of Electrica Group. Foton Power Energy 

acquisition of Sunwind Energy S.R.L, which has 

S.R.L. develops the photovoltaic project “Bihor 1”, with 

as its main activity production of energy from 

a projected installed capacity of 77.5 MW, located 

photovoltaic sources. Until 31 December 2022 

near Oradea.

Currently, the core business of the Company, 

be highly volatile for the foreseeable future.  As at 

according to the Statute is “Activities of business 

the date of these separate financial statements, 

and management consulting”, also performing 

management is unable to reliably estimate the 

corporate activities at parent company level for its 

effects on the Groups* financial outlook and cannot 

subsidiaries. 

exclude adverse consequence on the business, 

operations, and financial position. Management 

Electrica SA is the parent company of one electricity 

believes it is taking all the necessary measures to 

distribution company (set up from merger of three 

support the sustainability and growth of the Group’s 

electricity distribution companies), one electricity 

business in the current circumstances and that 

and natural gas supplier, five companies providing 

judgements used in these financial statements 

services in the energy sector (out of which four are 

remain appropriate.

currently in bankruptcy) and five energy production 

companies (Electrica Energie Verde 1 SRL in which 

*The Group represents Societatea Energetica 

Electrica SA has an indirect shareholding of 100% 

Electrica S.A. together with its subsidiaries.

being acquired by Electrica Productie Energie SA), 

to which two energy production project companies 

3. Basis of accounting

are being added where the Company doesn’t have 

control (the shareholding is 40%). Currently, three 

These separate financial statements have been 

of the project companies have been merged into 

prepared in accordance with the Ministry of Public 

Electrica SA.

Finance Order no. 2844/2016 for the approval 

of the Accounting Regulations in accordance 

Through the merger that took place on 31 December 

with International Financial Reporting Standards 

NOTES TO THE SEPARATE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 20232023 ANNUAL REPORTNOTES TO THE SEPARATE FINANCIAL STATEMENTS2023 ANNUAL REPORTELECTRICA S.AFOR THE YEAR ENDED 31 DECEMBER 2023ELECTRICA S.A388

389

(“OMFP no. 2844/2016”). In acceptance of OMFP 

Judgements, assumptions and estimation 

If the inputs used to measure the fair value of an 

in “Note 7 Accounting Policies” (31 December 2022: 

no. 2844/2016, International Financial Reporting 

uncertainties

Standards are standards adopted under the 

asset or a liability are categorised into different 

“Note 6 Significant Accounting Policies”) in certain 

levels of the fair value hierarchy, then the fair value 

cases, in accordance with the changes.

procedure provided by the European Commission 

Information about judgements made in applying 

measurement is entirely categorised on the level of 

Regulation no. 1606/2002 of the European Parliament 

accounting policies and assumptions and 

the lowest level input that is significant to the entire 

Except the above, the new amendments to existing 

and of the Council of 19 July 2002 regarding 

estimation uncertainties that have the most 

measurement.

the application of the international accounting 

significant effects on the amounts recognised in the 

standards that are effective starting with 1 January 

2023 do not have a significant impact over the 

standards. The consolidated financial statements 

separate financial statements is included below:

The Company recognises transfers between levels 

Group’s consolidated financial statements.

of Electrica Group prepared in accordance with 

of the fair value hierarchy at the end of the reporting 

the Ministry of Public Finance Order no. 2844/2016 

•  Note 6 h) – estimates regarding the useful lives 

period during which the change has occurred.

8. Significant accounting policies

will be published at least 30 days before the GSM 

of property, plant and equipment;

scheduled on 25 April 2024.

Further information about the assumptions used in 

The Company has consistently applied the following 

•  Note 19 – assumptions regarding the revalued 

measuring fair values is included in:

accounting policies to all periods presented in these 

These separate financial statements were 

amount of property, plant and equipment;

authorized for issue by the Board of Directors on 05 

•  Note 19: Property, plant and equipment.

March 2023 and will be submitted for shareholders’ 

•  Note 21 –assumptions and estimates 

separate financial statements. 

(a)  Going Concern

approval in the general meeting scheduled on 25 

regarding the valuation of shareholdings in the 

•  Note 28: Financial instruments - fair values and 

April 2023.

subsidiaries;

risk management.

Details of the Company’s accounting policies are 

•  Note 15 – assumptions regarding the recognition 

6. Basis of measurement

The standalone financial statements have been 

prepared on the going concern basis. In making this 

judgement management considers current trading 

performance and access to finance resources. 

included in Note 6. The Company has consistently 

of deferred tax asset;

applied the accounting policies to all periods 

The separate financial statements have been 

The Company depends upon the trading and 

presented in these separate financial statements.

Measurement of fair values

prepared on the historical cost basis, except for the 

cash generation of its subsidiaries, that have been 

4. Functional and presentation currency 

These separate financial statements are presented 

in Romanian Lei (RON), which is the functional 

currency of the Company. All amounts are in RON, if 

not otherwise stated.

5. Use of judgements and estimates

In preparing these separate financial statements, 

the management has made judgements, estimates 

and assumptions that affect the application 

of the Company’s accounting policies and the 

reported amounts of assets, liabilities, revenues 

and expenses. Actual results may differ from these 

estimates.

Estimates and underlying assumptions are reviewed 

on an ongoing basis. Revisions to estimates are 

prospectively recognised. 

A number of the Company’s accounting policies 

revaluation model. 

includes the following assumptions: 

land and buildings, which are measured based on 

included in the Groups consolidated forecast which 

and disclosures require the measurement of fair 

values for both financial and non-financial assets 

7. Changes in significant accounting policies

•  A continuation of the support scheme until 

and liabilities.

When measuring the fair value of an asset or a 

Adopting new standards

31 March 2025 according to the applicable 

legislation but with a more stable flow of 

repayments of the reimbursement requests for 

liability, the Company uses observable market data 

The Group has not adopted new standards issued 

subsidies as compared with last year, as the 

as far as possible. Fair values are categorised into 

by the International Accounting Standards Board 

mechanism has been operationally improved; 

different levels in the fair value hierarchy based 

(IASB) and adopted

on the inputs used in the valuation techniques as 

follows:

by the EU applicable on 1 January 2023, so there 

a limit of RON 4,961,482 thousand, including RON 

is no significant change in the consolidated 

thousand 2.736,419 thousand overdraft limits and 

•  The utilization of confirmed debt facilities up to 

•  Level 1: quoted prices (unadjusted) in active 

statements of the Group.

RON 2,225,063 thousand long term loans limit;

markets for identical assets or liabilities;

•  Level 2: inputs other than quoted prices included 

overdrafts amounting to RON 574,111 thousand 

in Level 1 that are observable for the asset or 

The group adopted the Presentation of information 

which will be drawn during the forecast period 

liability, either directly (i.e. as prices) or indirectly 

regarding accounting policy (Amendments to IAS 1 

and of which RON 250,000 thousand will be 

(i.e. derived from prices);

and Statement 2 regarding IFRS practice). Although 

reimbursed during the forecast period.

Adoption of new changes to existing standards

•  The utilization of not yet confirmed facilities, 

•  Level 3: inputs for the asset or liability that 

are not based on observable market data 

(unobservable inputs).

the amendments did not lead to any change in the 

accounting policies themselves, they had an impact 

At the date of issuance of these separate financial 

on the information presented in the consolidated 

statements the regulatory position may be further 

financial statements regarding the accounting 

amended and there may be further laws enacted 

policies. The management reviewed the accounting 

which could adversely impact the Groups operating 

policies and updated the information presented 

cash flows during the forecast period. Given the 

NOTES TO THE SEPARATE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 20232023 ANNUAL REPORTNOTES TO THE SEPARATE FINANCIAL STATEMENTS2023 ANNUAL REPORTELECTRICA S.AFOR THE YEAR ENDED 31 DECEMBER 2023ELECTRICA S.A390

391

current market uncertainties, the Group is closely 

recognized when the electricity is injected into the 

•  the foreign currency gain or loss on financial 

The calculation of defined benefit obligations is 

monitoring the market context and is continuously 

network and is being sold on the market.

assets and financial liabilities; 

performed annually by a qualified actuary using the 

analysing the opportunities for optimisation of 

projected unit credit method.

debt and increase of bank overdrafts and long-

Sale of green certificates

•  impairment losses recognised on financial 

term loans. In light of the importance of the Group 

assets (other than trade receivables).

Re-measurements of the net defined benefit liability, 

as the supplier and distributed of electricity on the 

Electricity suppliers have a legal obligation to 

which comprise actuarial gains and losses, are 

Romanian market, having 39.7 % (according to the 

purchase green certificates from producers of 

Interest income or expense is recognised using the 

recognised immediately in other comprehensive 

latest ANRE report 2022 for the distribution segment) 

electricity from renewable sources, based on annual 

effective interest method.

as market share on the electricity distribution and 

targets or quotas set by law, which are applied to 

income. The Company determines the net interest 

expense/(income) on the net defined benefit 

17.72 % (according to the latest ANRE report October 

the quantity of electricity purchased and supplied 

(e)  Foreign currency transactions

liability for the period by applying the discount rate 

2022 for the supply segment) as market share on 

to final customers. Cost of green certificates is 

used to measure the defined benefit obligation at 

the electricity supply market and having as main 

invoiced to final customers separately from the 

Transactions in foreign currencies are translated to 

the beginning of the annual period to the then-net 

shareholder of Electrica SA the Romanian State, the 

tariffs for electricity.

the functional currency at the exchange rates at the 

defined benefit liability, considering any changes 

management believes sufficient financing will be 

date of the transactions.

made available to cover any financing requirements 

Electricity producers are entitled by the law in force 

in the net defined benefit liability during the period 

as a result of contributions and benefit payments. 

arising from market uncertainty and Group will be 

to receive a certain number of green certificates for 

Monetary assets and liabilities denominated in 

Net interest expense and other expenses related to 

able to meet its obligations as they fall due. 

each MWH of electricity produced from renewable 

foreign currencies are translated to the functional 

defined benefit plans are recognised in profit or loss.

sources and injected into the network. The green 

currency at the exchange rate at the reporting 

Based upon the above projections and other 

certificates can be sold on the spot market, term 

date, as communicated by the National Bank of 

When the benefits of a plan are changed or when 

information, given the measures already 

market or a combination of both. The selling price 

Romania. Non-monetary assets and liabilities that 

a plan is curtailed, the resulting change in benefit 

implemented and the strategies to reduce the 

must fall between the minimum and maximum 

are measured at fair value in a foreign currency 

that relates to past service or the gain or loss on 

risks which may occur due to the instability of the 

values set by Law no. 220/2008 for establishing the 

are translated to the functional currency at the 

curtailment is recognised immediately in profit or 

economic environment, the Board of Directors 

system for promoting the production of electricity 

exchange rate when the fair value was determined. 

loss. The Company recognises gains and losses on 

has, at the time of approving the consolidated 

from renewable energy sources, republished, with 

Foreign currency differences are recognised in profit 

the settlement of a defined benefit plan when the 

financial statements, a reasonable expectation that 

subsequent amendments. Revenue from green 

or loss. Non-monetary items that are measured 

settlement occurs.

the Group has adequate resources to continue in 

certificates is recognized in the profit or loss 

based on historical cost in a foreign currency are 

operational existence for the foreseeable future. 

statement when the green certificates are sold on 

not translated to the functional currency.

(iii) Other long-term employee benefits

Thus they continue to adopt the going concern 

the trading market.

basis of accounting in preparing the consolidated 

financial statements.

(c)  Commissions

(f)  Employee benefits

The Company’s net obligation in respect of long-

term employee benefits is the amount of future 

(i)  Short-term employee benefits

benefit that employees have earned in return for 

(b)  Revenue

The Company assesses its revenue arrangements 

their service in the current and prior periods. That 

The Company recognizes the revenue from 

as principal or agent. If the Company acts in the 

undiscounted basis and are expensed as the related 

Re-measurements are recognised in profit or loss in 

contracts with customers in accordance with IFRS 15. 

capacity of an agent rather than as the principal in 

service is provided.  A liability is recognised for the 

the period in which they arise.

based on specific criteria to determine if it is acting 

Short-term employee benefits are measured on an 

benefit is discounted to determine its present value. 

a transaction, then the recognised revenue is the 

amount expected to be paid if the Company has 

Under the standard, revenue is recognized when or 

net amount of commission earned by the Company.

a present, legal or constructive obligation to pay 

(iv) Termination benefits

as the customer acquires control over the goods 

this amount as a result of past services provided 

or services rendered, at the amount which reflects 

(d)  Finance income and finance costs

by the employee and the obligation can be reliably 

Termination benefits are expensed at the earlier 

the price at which the Company is expected to be 

entitled to receive in exchange of those goods or 

The Company’s finance income and finance costs 

services. Revenue is recognized at the fair value of 

include:

the services rendered or goods delivered, net of VAT, 

estimated.

(ii)  Defined benefit plans

of when the Company can no longer withdraw the 

offer of those benefits and when the Company 

recognises costs for a restructuring. If benefits are 

not expected to be settled wholly within 12 months 

excises or other taxes related to the sale. 

•  interest income;

The Company’s net obligation in respect of defined 

of the end of the reporting period, then they are 

Generation and sale of electricity

•  interest expense;

The electricity produced by the Group is mainly 

•  dividend income;

sold on the Day Ahead Market and the revenue is 

benefit plans is calculated separately for each plan 

discounted.

by estimating the amount of future benefits that 

employees have earned in the current and prior 

periods, by discounting that amount. 

NOTES TO THE SEPARATE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 20232023 ANNUAL REPORTNOTES TO THE SEPARATE FINANCIAL STATEMENTS2023 ANNUAL REPORTELECTRICA S.AFOR THE YEAR ENDED 31 DECEMBER 2023ELECTRICA S.A392

393

(g)  Income tax

Deferred tax is measured based on the tax rates 

If significant parts of an item of property, plant 

(i)  Intangible assets

that are expected to be applicable to temporary 

and equipment have different useful lives, then 

Income tax expense comprises current and 

differences when they are reversed, using tax rates 

they are accounted for as separate items (major 

(i)  Recognition and measurement

deferred tax. It is recognised in profit or loss except 

enacted or substantively enacted at the reporting 

components) of property, plant and equipment.

for the items recognised directly in equity or in 

date. 

other comprehensive income, in which case it 

Spare parts, stand-by and servicing equipment 

and have finite useful lives are measured at 

Intangible assets that are acquired by the Company 

will be recognized directly in equity or in other 

The measurement of the deferred tax reflects the tax 

are classified as property, plant and equipment if 

cost less accumulated amortisation and any 

comprehensive income.

consequences that would follow from the manner in 

they are expected to be used during more than one 

accumulated impairment losses.

(i)  Current tax

carrying amount of its assets and liabilities at the 

item of property, plant and equipment.

(ii)  Subsequent expenditure

which the Company expects to recover or settle the 

period or can be used only in connection with an 

reporting date. 

Current tax comprises the expected tax payable or 

Any gain or loss on disposal of an item of property, 

Subsequent expenditure is capitalised only when it 

receivable on the taxable income or loss for the year 

Deferred tax assets and liabilities are offset only if 

plant and equipment is recognised in profit or loss.

increases the future economic benefits embodied 

and any adjustment to tax payable or receivable 

certain criteria are met.

in respect of previous years. It is measured using 

tax rates enacted or substantively enacted at the 

Unrecognized deferred tax assets are reassessed at 

(ii)  Subsequent expenditure

in the specific asset to which it relates. All other 

expenditure, including expenditure on internally 

generated goodwill and brands, is recognised in 

reporting date. Current tax also includes any tax 

each reporting date and recognized to the extent 

Subsequent expenditure is capitalised only if it 

profit or loss as incurred.

arising from dividends.

that it is probable that the future taxable profits will 

is probable that the future economic benefits 

be available against which they can be used.

associated with the expenditure will flow to the 

(iii) Amortization

(ii)  Deferred tax

Deferred tax is recognised in respect of temporary 

differences between the carrying amounts of assets 

(i)  Recognition and measurement

(h)  Property, plant and equipment

Company.

(iii) Depreciation

Amortization is calculated to write off the cost of 

intangible assets less their estimated residual 

values using the straight-line method over their 

and liabilities for financial reporting purposes and 

Depreciation is calculated to write off the cost of 

estimated useful lives, and is recognised in profit or 

the amounts used for taxation purposes. Deferred 

Property, plant and equipment are initially 

items of property, plant and equipment less their 

loss. 

tax is not recognised for:

recognised at cost, which includes purchase price 

estimated residual values using the straight-line 

and other costs directly attributable to acquisition 

method over their estimated useful lives and is 

The estimated useful lives of software and licenses 

•  temporary differences arising from the initial 

and bringing the asset to the location and condition 

recognised in profit or loss. Leased assets are 

are 3-5 years.

recognition of assets and liabilities resulting 

necessary for their intended use. 

depreciated over the shorter of the lease term and 

from transactions that are not business 

their useful lives unless it is reasonably certain that 

Amortisation method, useful lives and residual 

combinations and that affect neither accounting 

After initial recognition, land and buildings 

the Company will obtain ownership right by the 

values are reviewed at each reporting date and 

nor taxable profit or loss;

are measured at revalued amounts less any 

end of the lease term. Land and other non-current 

adjusted if appropriate.

•  temporary differences resulting from 

impairment losses since the most recent valuation. 

(j)  Financial instruments

accumulated depreciation and any accumulated 

assets in progress are not depreciated.

investments in subsidiaries, associates and 

The estimated useful lives of property, plant and 

jointly controlled entities, to the extent that the 

The Company used the fair value as deemed 

equipment are as follows:

Company can exercise control over the reversal 

cost for the tangible assets for the opening of the 

period of the temporary differences and it is 

financial position.

probable that they will not be reversed in the 

foreseeable future.

Revaluations are performed with sufficient regularity 

to ensure that the carrying amount does not 

Deferred tax assets are recognised for unused tax 

materially differ from the one which would be 

losses, unused tax credits and deductible temporary 

determined using the fair value at the end of the 

differences only to the extent that it is probable that 

reporting period.

future taxable profits will be available to be used for 

covering them. Deferred tax assets are reviewed at 

When a building is revalued, the accumulated 

each reporting date and are reduced to the extent 

depreciation is eliminated against the gross 

that it is no longer probable that the related tax 

carrying amount of that item, and the net amount is 

benefit will be realised. 

restated to the revalued amount of the asset. 

Category

Buildings

Equipment

Vehicles, furniture and office 
equipment

Useful lives (years)

40-60 

4-12 

The depreciation methods, useful lives and residual 

values are reviewed at each reporting date and 

adjusted if appropriate.

Financial assets and financial liabilities are 

recognised in the Company’s statement of financial 

position when the Company becomes a party to the 

contractual provisions of the instrument. 

Financial assets and financial liabilities are initially 

measured at fair value. Transaction costs that are 

3-10 

directly attributable to the acquisition or issue of 

financial assets and financial liabilities (other than 

financial assets and financial liabilities at fair value 

through profit or loss) are added to or deducted 

from the fair value of the financial assets or financial 

liabilities, as appropriate, on initial recognition. 

Transaction costs directly attributable to the 

NOTES TO THE SEPARATE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 20232023 ANNUAL REPORTNOTES TO THE SEPARATE FINANCIAL STATEMENTS2023 ANNUAL REPORTELECTRICA S.AFOR THE YEAR ENDED 31 DECEMBER 2023ELECTRICA S.A394

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acquisition of financial assets or financial liabilities 

Loans and receivables comprise trade receivables, 

shares, net of any tax effects, are recognized as a 

Irrespective of the above analysis, the Company 

at fair value through profit or loss are recognised 

cash and cash equivalents and bank deposits. 

deduction from equity.

considers that default has occurred when a 

immediately in profit or loss.

(i)  Financial assets

Trade receivables 

Repurchase and reissue of ordinary shares 

the Company has reasonable and supportable 

(treasury shares)

information to demonstrate that a more lagging 

Trade receivables include mainly invoices issued 

default criterion is more appropriate.

financial asset is more than 90 days past due unless 

All regular way purchases or sales of financial 

or to be issued to the subsidiaries for the rendered 

When shares recognized as equity are repurchased, 

assets are recognised and derecognised on a trade 

services.

date basis. Regular way purchases or sales are 

the amount of the consideration paid, which 

(ii) Write-off policy

includes directly attributable costs, net of any tax 

purchases or sales of financial assets that require 

Cash and cash equivalents

effects, is recognized as a deduction from equity. 

The Company writes off a financial asset when 

delivery of assets within the time frame established 

Repurchased shares are classified and presented 

after the finalization of the bankruptcy proceedings. 

by regulation or convention in the marketplace. 

Cash and cash equivalents comprise cash balances 

in the treasury share reserve. When treasury shares 

Financial assets written off may still be subject 

All recognised financial assets are measured 

and call deposits and deposits with maturities of 

are sold or reissued subsequently, the amount 

to enforcement activities under the Company’s 

subsequently in their entirety at either amortised 

three months or less from the transaction date that 

received is recognised as an increase in equity and 

recovery procedures, taking into account legal 

cost or fair value, depending on the classification of 

are subject to an insignificant risk of changes in 

the resulting surplus or deficit on the transaction is 

advice where appropriate. Any recoveries made are 

the financial assets.

their fair value, that are used by the Company in the 

presented within share premium.

recognised in profit or loss. 

Financial assets are initially measured at fair value 

and subsequently at amortized cost in accordance 

(ii) Financial liabilities 

with IFRS 9, as they are held in a business model to 

management of its short-term commitments.

(k)  Impairment

(iii) Measurement and recognition of expected 

Impairment of financial assets

credit losses

collect contractual cash flows and these cash flows 

All financial liabilities are measured subsequently at 

The measurement of expected credit losses is a 

consist solely of payments of principal and interest 

amortised cost using the effective interest method 

The Company recognises a loss allowance for 

function of the probability of default, loss given 

on the principal amount outstanding.

or at fair value through profit or loss. 

expected credit losses on investments in debt 

default (i.e. the magnitude of the loss if there 

instruments that are measured at amortised cost or 

is a default) and the exposure at default. The 

The amortized cost of a financial asset is the 

Financial liabilities that are not (i) contingent 

at fair value through other comprehensive income. 

assessment of the probability of default and loss 

amount at which the financial asset is measured at 

consideration of an acquirer in a business 

The amount of expected credit losses is updated at 

given default is based on historical data adjusted by 

initial recognition less the principal reimbursements, 

combination, (ii) held-for-trading, or (iii) designated 

each reporting date to reflect changes in credit risk 

forward-looking information as described above. As 

plus the cumulative amortization using the effective 

as at fair value, are measured subsequently at 

since initial recognition of the respective financial 

for the exposure at default, for financial assets, this 

interest method, adjusted for any loss allowance. 

amortised cost using the effective interest method. 

instrument.

is represented by the assets’ gross carrying amount 

The gross carrying amount of a financial asset is the 

The effective interest method is a method of 

at the reporting date.

amortized cost of a financial asset before adjusting 

calculating the amortised cost of a financial liability 

The Company always recognises lifetime expected 

for any loss allowance.

and of allocating interest expense over the relevant 

credit losses for trade receivables. The expected 

For financial assets, the expected credit loss is 

period. The effective interest rate is the rate that 

credit losses on these financial assets are estimated 

estimated as the difference between all contractual 

Foreign exchange gains and losses

exactly discounts estimated future cash payments 

using a provision matrix based on the Company’s 

cash flows that are due to the Company in 

The carrying amount of financial assets that are 

form an integral part of the effective interest rate, 

that are specific to the debtors, general economic 

that the Company expects to receive, discounted at 

denominated in a foreign currency is determined in 

transaction costs and other premiums or discounts) 

conditions and an assessment of both the current 

the original effective interest rate.

that foreign currency and translated at the spot rate 

through the expected life of the financial liability, 

as well as the forecast direction of conditions at the 

at the end of each reporting period.

or (where appropriate) a shorter period, to the 

reporting date, including time value of money where 

Derecognition of financial assets

(including all fees and points paid or received that 

historical credit loss experience, adjusted for factors 

accordance with the contract and all the cash flows 

Loans and receivables

The Company derecognizes a financial asset only 

Other financial liabilities include trade payables.

(i) Significant increase in credit risk

when the contractual rights to the cash flows from 

amortised cost of a financial liability.

appropriate.

These assets are initially recognized at fair 

value plus any directly attributable transaction 

(iii) Share capital

costs. Subsequent to initial recognition, they are 

measured at amortized cost using the effective 

Ordinary shares

interest method. The amortised cost is reduced by 

In assessing whether the credit risk on a financial 

asset and substantially all the risks and rewards 

instrument has increased significantly since initial 

of ownership of the asset to another entity. If the 

recognition, the Company compares the risk of a 

Company neither transfers nor retains substantially 

default occurring on the financial instrument at the 

all the risks and rewards of ownership and continues 

the asset expire, or when it transfers the financial 

impairment losses. 

Ordinary shares are classified as equity. Incremental 

reporting date with the risk of a default occurring 

to control the transferred asset, the Company 

costs directly attributable to the issue of ordinary 

on the financial instrument at the date of initial 

recognizes its retained interest in the asset and an 

recognition. 

associated liability for amounts it may have to pay. 

NOTES TO THE SEPARATE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 20232023 ANNUAL REPORTNOTES TO THE SEPARATE FINANCIAL STATEMENTS2023 ANNUAL REPORTELECTRICA S.AFOR THE YEAR ENDED 31 DECEMBER 2023ELECTRICA S.A396

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If the Company retains substantially all the risks 

Company obtained title deeds in respect of future 

A contingent asset is a potential asset that appears 

•  the lease term has changed or there is a 

and rewards of ownership of a transferred financial 

issuance of shares. The amounts recorded are 

as a result of previous events and whose existence 

significant event or change in circumstances 

asset, the Company continues to recognize the 

based on the fair value of the land.

will be confirmed only by the occurrence or the non-

resulting in a change in the assessment of 

financial asset and also recognizes a collateralized 

borrowing for the proceeds received.

(o)  Provisions

occurrence of one or more uncertain future events, 

exercise of a purchase option, in which case the 

which are not fully controlled by the Company. 

lease liability is remeasured by discounting the 

revised lease payments using a revised discount 

(l)  Revaluation reserves

A provision is recognised if, as a result of a past 

A contingent asset is not recognized in the financial 

rate;

event, the Company has a present legal or 

statements of the Company, but it is shown when an 

The difference between the revalued amount and 

constructive obligation that can be estimated 

input of economic benefits is likely to arise.

•  the lease payments change due to changes 

the net carrying amount of property, plant and 

reliably, and it is probable that an outflow of 

equipment is recognized as revaluation reserve 

economic benefits will be required to settle the 

(q)  Leases

included in equity.

obligation. Provisions are determined by discounting 

If an asset’s carrying amount is increased as a 

that reflects current market assessments of the time 

the expected future cash flows at a pre-tax rate 

(i)  The Company as lessee

in an index or rate or a change in expected 

payment under a guaranteed residual value, 

in which cases the lease liability is remeasured 

by discounting the revised lease payments 

using an unchanged discount rate (unless the 

result of a revaluation, the increase is recognized 

value of money and the risks specific to the liability. 

The Company assesses whether a contract is or 

lease payments change is due to a change in 

and accumulated in equity under the heading 

The unwinding of the discount is recognised as 

contains a lease, at inception of the contract. The 

a floating interest rate, in which case a revised 

of revaluation reserve. However, the increase is 

finance cost.

recognized in profit and loss to the extent that 

Company recognises a right-of-use asset and a 

discount rate is used);

corresponding lease liability with respect to all lease 

it reverses a revaluation decrease of the same 

A provision for restructuring is recognised when 

arrangements in which it is the lessee, except for 

•  a lease contract is modified and the lease 

amount of the asset previously recognised in profit 

the Company has approved a detailed and formal 

short-term leases (with a lease term of 12 months 

modification is not accounted for as a separate 

and loss.

restructuring plan, and the restructuring either has 

or less) and leases of low value assets (of less 

lease, in which case the lease liability is 

commenced or has been announced publicly. No 

than USD 5,000). For these leases, the Company 

remeasured based on the lease term of the 

If an asset’s carrying amount is decreased as a 

provisions are provided for future operating losses.

recognises the lease payments as an operating 

modified lease by discounting the revised lease 

result of a revaluation, the decrease is recognised 

expense on a straight-line basis over the term 

payments using a revised discount rate at the 

in profit or loss, However, the decrease is recognized 

(p)  Contingent assets and liabilities

of the lease unless another systematic basis is 

effective date of the modification.

in equity in revaluation reserves if there is any 

more representative of the time pattern in which 

credit balance existing in the revaluation reserve in 

A contingent liability is:

economic benefits from the leased assets are 

Right-of-use assets are depreciated over the 

respect of that asset.

consumed. 

(a)  a possible obligation that arises from past 

shorter period of lease term and useful life of the 

underlying asset. If a lease transfers ownership of 

The revaluation reserve is transferred to retained 

events and whose existence will be confirmed 

The lease liability is initially measured at the present 

the underlying asset or the cost of the right-of-

earnings in an amount corresponding to the use of 

only by the occurrence or non-occurrence of 

value of the lease payments that are not paid at 

use asset reflects that the Company expects to 

the asset (as the asset is depreciated) and upon 

one or more uncertain future events not wholly 

the commencement date, discounted by using 

exercise a purchase option, the related right-of-

disposal of the asset.

within the control of the Company; or

the default rate in the lease. If this rate cannot 

use asset is depreciated over the useful life of the 

be readily determined, the Company uses its 

underlying asset. The depreciation starts at the 

(m) 

Dividends

(b)  a present obligation that arises from past 

incremental borrowing rate. 

commencement date of the lease.

events that is not recognised because:

Dividends are recognized as a deduction from 

The lease liability is presented as a separate line 

The right-of-use assets are presented as a separate 

equity in the period in which their distribution is 

i.  it is not probable that an outflow of 

in the statement of financial position. The lease 

line in the statement of financial position. 

approved and recognized as a liability to the extent 

resources embodying economic benefits will 

liability is subsequently measured by increasing 

it is unpaid at the reporting date. Dividends are 

be required to settle the obligation; or

the carrying amount to reflect interest on the lease 

(ii)  Rental income

disclosed in the notes to financial statements when 

liability (using the effective interest method) and by 

their distribution is proposed after the reporting 

ii.  the amount of the obligation cannot be 

reducing the carrying amount to reflect the lease 

Rental income from property, plant and equipment 

date and before the date of the issuance of the 

measured with sufficient reliability.

payments made.

financial statement.

other than property investment is recognised as 

Other income. Rental income is recognised on a 

Contingent liabilities are not recognized in the 

The Company remeasures the lease liability (and 

straight-line basis over the term of the lease.

(n)  Capital contributions in kind from shareholders

financial statements of the Company. They 

makes a corresponding adjustment to the related 

are presented in case the output of resources 

right-of-use asset) whenever:

These contributions from a shareholder represent 

incorporating economic benefits is possible and not 

pre-paid contributions of land for which the 

probable. 

NOTES TO THE SEPARATE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 20232023 ANNUAL REPORTNOTES TO THE SEPARATE FINANCIAL STATEMENTS2023 ANNUAL REPORTELECTRICA S.AFOR THE YEAR ENDED 31 DECEMBER 2023ELECTRICA S.A398

399

(r)  Investment in associates

The requirements of IAS 36 are applied to determine 

• 

IFRS 17 “Insurance Contracts” including 

Standards and amendments to the existing 

whether it is necessary to recognise any impairment 

amendments to IFRS 17 issued by IASB on 25 

standards issued by IASB and adopted by the EU 

An associate is an entity over which the Company 

loss with respect to the Company’s investment in 

June 2020 - adopted by the EU on 19 November 

but not yet effective

has significant influence and that is neither 

an associate. When necessary, the entire carrying 

2021 (effective for annual periods beginning on 

a subsidiary nor an interest in a joint venture. 

amount of the investment (including goodwill) is 

or after 1 January 2023);

Significant influence is the power to participate in 

tested for impairment in accordance with IAS 36 as 

At the date of authorization of these individual 

financial statements, the following amendments 

the financial and operating policy decisions of the 

a single asset by comparing its recoverable amount 

•  Amendments to IFRS 17 “Insurance contracts” 

to the existing standards were issued by IASB and 

investee but is not control or joint control over those 

(higher of value in use and fair value less costs of 

- Initial Application of IFRS 17 and IFRS 9 – 

adopted by the EU and which are not yet effective:

policies. 

disposal) with its carrying amount. Any impairment 

Comparative Information, adopted by the EU on 

The results and assets and liabilities of associates 

including goodwill that forms part of the carrying 

beginning on or after 1 January 2023);

Standards in June 2023: IFRS S1 General 

are incorporated in these financial statements using 

amount of the investment. Any reversal of that 

Requirements for Disclosure of Sustainability-

the equity method of accounting, except when the 

impairment loss is recognised in accordance with 

•  Amendments to IAS 1 “Presentation of Financial 

related Financial Information and IFRS S2 

investment is classified as held for sale, in which 

IAS 36 to the extent that the recoverable amount of 

Statements” and IFRS Practice Statement 2 - 

Climate-related Disclosures, adopted by the EU 

case it is accounted for in accordance with IFRS 5. 

the investment subsequently increases. 

Disclosure of Accounting Policies adopted by the 

on 31 July 2023 (effective for annual reporting 

loss recognised is not allocated to any asset, 

9 September 2022 (effective for annual periods 

•  The first two IFRS Sustainability Disclosure 

EU on 2 March 2022 (effective for annual periods 

periods beginning on or after 1 January 2024).

Under the equity method, an investment in an 

The Company discontinues the use of the equity 

beginning on or after 1 January 2023);

associate is recognised initially in the separate 

method from the date when the investment ceases 

The Group has elected not to adopt the 

statement of financial position at cost and adjusted 

to be an associate.

•  Amendments to IAS 8 “Accounting Policies, 

amendments to existing standards in advance of 

thereafter to recognise the Company’s share of the 

profit or loss and other comprehensive income of 

(s)  Subsequent events

the associate. 

Changes in Accounting Estimates and Errors” 

their effective dates. The Group anticipates that 

– Definition of Accounting Estimates adopted 

the adoption of these amendments to existing 

by the EU on 2 March 2022 (effective for annual 

standards will have no material impact on the 

When the Company’s share of losses of an 

December 2023, which provide additional 

of initial application.

associate exceeds the Company’s interest in that 

information about conditions prevailing at the 

•  Amendments to IAS 12 “Income Taxes” - Deferred 

associate (which includes any long-term interests 

reporting date (adjusting events) are reflected in 

Tax related to Assets and Liabilities arising 

New standards and amendments to the existing 

that, in substance, form part of the Company’s 

the separate financial statements. Events occurring 

from a Single Transaction adopted by the EU 

standards issued by IASB but not yet adopted by 

Events occurring after the reporting date 31 

periods beginning on or after 1 January 2023);

financial statements of the Company in the period 

net investment in the associate), the Company 

after the reporting date that provide information on 

on 11 August 2022 (effective for annual periods 

the EU

discontinues recognising its share of further losses. 

events that occurred after the reporting date (non-

beginning on or after 1 January 2023);

Additional losses are recognised only to the extent 

adjusting events), when material, are disclosed 

At present, IFRS as adopted by the EU do not 

that the Company has incurred legal or constructive 

in the notes to the separate financial statements. 

• 

International Tax Reform—Pillar Two Model Rules 

significantly differ from regulations adopted by 

obligations or made payments on behalf of the 

When the going concern assumption is no longer 

– Amendments to IAS 12 (the Amendments) to 

the International Accounting Standards Board 

associate. 

appropriate at or after the reporting period, the 

financial statements are not prepared on a going 

clarify the application of IAS 12 “Income Taxes” 

(IASB) except for the following new standards and 

(effective for annual periods beginning on or 

amendments to the existing standards, which 

An investment in an associate is accounted for 

concern basis.

using the equity method from the date on which the 

after 1 January 2023).

were not endorsed for use in EU as at the date 

of publication of these consolidated financial 

investee becomes an associate. On acquisition of 

9. Adoption of new and revised standards and 

As of 31 December 2023, the Company adopted 

statements (the effective dates stated below is for 

the investment in an associate, any excess of the 

interpretations

cost of the investment over the Company’s share 

Disclosure of Accounting Policies (Amendments to 

IFRS as issued by IASB): 

IAS 1 and IFRS Practice Statement 2). Management 

of the net fair value of the identifiable assets and 

Initial application of new amendments to the 

reviewed the accounting policies and made 

• 

IFRS 14 “Regulatory Deferral Accounts” (effective 

liabilities of the investee is recognised as goodwill, 

existing standards effective for the current 

updates as per “Note 7 Changes in significant 

for annual periods beginning on or after 1 

which is included within the carrying amount of the 

reporting period

accounting policies” in certain instances in line with 

January 2016) – the European Commission has 

investment. 

the amendments.

The following amendments to the existing standards 

decided not to launch the endorsement process 

of this interim standard and to wait for the final 

Any excess of the Company’s share of the net fair 

issued by the International Accounting Standards 

Except of the above, the adoption of amendments 

standard;,

value of the identifiable assets and liabilities over 

Board (IASB) and adopted by the EU are effective for 

to the existing standards has not led to any 

the cost of the investment, after reassessment, 

the current reporting period:

material changes in the Group’s individual financial 

•  Amendments to IAS 1 “Presentation of Financial 

is recognised immediately in profit or loss in the 

period in which the investment is acquired.

statements.

Statements” - Classification of Liabilities as 

Current or Non-Current (effective for annual 

periods beginning on or after 1 January 2024);

NOTES TO THE SEPARATE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 20232023 ANNUAL REPORTNOTES TO THE SEPARATE FINANCIAL STATEMENTS2023 ANNUAL REPORTELECTRICA S.AFOR THE YEAR ENDED 31 DECEMBER 2023ELECTRICA S.A400

401

•  Amendments to IAS 1 “Presentation of Financial 

statements for a period beginning on or after 1 

10. Other income and operating expenses

Statements” - Non-current Liabilities with 

January 2016) can be applied only when a reporting 

Covenants (effective for annual periods 

entity is a IFRS First Time Adopter. As the Group is 

beginning on or after 1 January 2024);

not a IFRS First Time Adopter, the management of 

the Company did not consider any impact coming 

•  Amendments to IFRS 16 “Leases” - Lease Liability 

out from the application of IFRS 14, further guidance 

in a Sale and Leaseback (effective for annual 

being expected in the future.

periods beginning on or after 1 January 2024);

•  Amendments to IFRS 10 “Consolidated Financial 

new standards and amendments to the existing 

Statements” and IAS 28 “Investments in 

standards will have no material impact on the 

Associates and Joint Ventures” - Sale or 

individual financial statements of the Company in 

Contribution of Assets between an Investor 

the period of initial application.

The Company anticipates that the adoption of these 

and its Associate or Joint Venture and 

further amendments (effective date deferred 

indefinitely until the research project on the 

equity method has been concluded);

•  Amendments to IAS 21 The Effects of Changes in 

Foreign Exchange Rates: Lack of Exchangeability 

(applicable for annual periods beginning on or 

after 1 January 2025, but not yet endorsed in the 

EU);

•  Amendments to IAS 7 Statement of Cash Flows 

and IFRS 7 Financial Instruments: Disclosures: 

Supplier Finance Arrangements (applicable for 

annual periods beginning on or after 1 January 

2024, but not yet endorsed in the EU).

The International Accounting Standards Board has 

been currently working on the development of a 

new IFRS international financial reporting standard 

that will align the current standard „IFRS 14 Deferral 

Accounts Related to Regulated Activities” to the 

new requirements of the energy market at EU and 

global level, which is expected to take into account 

all relevant related subjects, including the proper 

treatment of own technological consumption 

expenses. IASB has redeliberated proposals in the 

Exposure Draft Regulatory Assets and Regulatory 

Liabilities based on the feedback received on 

previous variants on Exposure Drafts made available 

for public comment (https://www.ifrs.org/projects/

work-plan/rate-regulated-activities/#current-

stage). As debated in exposure drafts, until now 

there is no approved legislation at IASB level. 

Currently IFRS 14 (originally issued in January 2014 

and applied to an entity’s first annual IFRS financial 

(a)   Other income

Revenues from disposal of assets

Rental income

Revenues from penalties

Other

Total

(b)  Other operating expenses

Repair and maintenance expenses

Legal assistance and consulting fees

Insurance premiums 

Other taxes and duties

Consumables

Travel and transportation expenses

Rent

Postage and telecommunication

Donations and sponsorships

Other third party services

Other

Total

11. Net finance income

Interest income

Other finance income

Total finance income

Interest expense

Interest cost for employee benefits (Note 12)

Foreign exchange gain / losses, net

Total finance costs

Net finance income

2023

2,400 

723,300 

200,318 

516,584  

1,442,602 

2023

1,233,117 

1,346,203 

790,163 

825,175 

396,574 

321,061 

226,979

40,615 

-

2022

370,774 

626,807

2,183,897

1,998,143

5,179,621

2022

1,363,711 

1,279,169

713,938 

707,159

449,849

155,015

31,007

61,355

12,357

13,378,867 

12,967,398

2,688,691 

797,654 

21,247,445 

18,538,612

2023

2022

96,254,222 

78,074,759

1,380,429 

224,127

97,634,651 

78,298,886

(29,647,324)

(12,238,993)

(94,252)

4,058 

(181,714)

(20,094)

(29,737,518) 

(12,440,801)

67,897,133 

65,858,085

NOTES TO THE SEPARATE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 20232023 ANNUAL REPORTNOTES TO THE SEPARATE FINANCIAL STATEMENTS2023 ANNUAL REPORTELECTRICA S.AFOR THE YEAR ENDED 31 DECEMBER 2023ELECTRICA S.A402

403

12. Earnings per share

14. Post-employment and other long-term employee benefits

The calculation of basic and diluted earnings per share is based on the following profit attributable to 

shareholders and weighted-average number of ordinary shares outstanding:

Profit attributable to shareholders

Profit for the year attributable to the shareholders of the Company

Profit attributable to the shareholders of the Company

Number of ordinary shares (in number of shares)

Number of ordinary shares at 31 December

339,553,004

339,553,004

For the calculation of basic and diluted earnings per share, the own shares repurchased by the Company 

(6,890,593 shares) were not treated as outstanding shares and are deducted from the total number of 

issued ordinary shares.

Basic and diluted earnings per share (RON)

13. Short-term employee benefits

Personnel payables

Current portion of defined benefit liability and other long-term employee 
benefits

Social security charges 

Tax on salaries 

Total 

2023

0.07

2022

0.07

31 December 

31 December 

2023

6,327,991 

115,917 

658,028 

153,046 

2022

4,974,791

127,203

607,823

130,314

7,254,982 

5,840,131

Details related to employee benefit expenses are presented in Note 12.

In Romania, all employers and employees, as well as other persons, are contributors to the state social 

security system. The social security system covers state pensions, child benefit, temporary incapacity for 

work situations, risks of work accidents and professional diseases and other social assistance services, 

redundancy payments and incentives granted to employers for creating new jobs.

The Company provides cash benefits to employees depending on seniority in the form of jubilee bonuses 

and depending on the years of service at retirement in the form of retirement bonuses. The post-

employment and other long-term employee benefits are stipulated in the Collective Labour Contract.

In 2023 and 2022, employee benefit obligations were computed by an independent actuary using the 

projected unit credit method with benefits calculated proportionally to the period of service.

2023

2022

23,940,836

24,304,885

23,940,836

24,304,885

2023

2022

Total

Defined benefit liability

Other long-term employee benefits

   - Current portion*

   - Non-current portion

*included in Personnel payables in Note 11

31 December 

31 December 

2023

673,354 

768,705 

2022

506,110

716,743

1,442,059 

1,222,853

115,917 

127,202

1,326,142 

1,095,651

(i) Movement in the defined benefit liability and other long-term employee benefits

The following tables shows a reconciliation between the opening balances and the closing balances of the 

defined benefit liability and other long-term employee benefits and their components. There are no plan 

Defined benefit liability

assets.

Balance at 1 January

Included in profit or loss

Current service cost 

Past service cost

Interest cost

Included in other comprehensive income

Re-measurements gain

   - Actuarial gain 

Other

Benefits paid

Balance at 31 December 

2023

506,110 

100,462 

41,024 

141,486

2022

5,599,583

73,919

-

153,412

227,331

209,530 

(1,621,494)

(183,772) 

(3,699,310)

673,354

506,110

NOTES TO THE SEPARATE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 20232023 ANNUAL REPORTNOTES TO THE SEPARATE FINANCIAL STATEMENTS2023 ANNUAL REPORTELECTRICA S.AFOR THE YEAR ENDED 31 DECEMBER 2023ELECTRICA S.A404

405

Other long-term employee benefits

Balance at 1 January

Included in profit or loss

Current service cost

Actuarial gain 

Interest cost 

Other

Benefits paid

Balance at 31 December

2023

716,743 

53,603 

56,830 

53,228 

2022

601,214

45,335

161,519

28,302

(111,699) 

768,705 

(119,627)

716,743

Jubilee bonuses based on years of service in the Company 

Seniority

20 years

30 years

35 years

40 years

45 years

No. of gross monthly base salaries

31 December 2023

31 December 2022

1

2

3

4

5

1

2

3

4

5

Retirement bonuses based on years of service in the Company 

Defined benefits refer to the retirement bonuses granted according to the seniority within the Company and 

other long-term benefits refer to the jubilee bonuses granted for seniority.

(ii) Actuarial assumptions

The following are the main actuarial assumptions at the respective reporting date:

(a) Macroeconomic assumptions: 

Seniority

Between 8 and 10 years

Between 10 and 25 years

More than 25 years

Termination benefits 

No. of gross monthly base salaries

31 December 2023

31 December 2022

2

3

4

2

3

4

•  inflation. The actuary used information from the National Commission for Strategy and Prognosis:

a. Termination benefits for individual lay-offs at the Company’s initiative: 

Year

2022

2023

2024

2025

2026

2027-2031

Valuation date

31 December 2023

Valuation date

31 December 2022

-

-

4.8%

3.5%

3.0%

2.5%

13.9%

7.5%

4.9%

3%

2.5%

2.5%

In accordance with the Collective Labour Contract concluded between the Company and the Union, when 

individual labour contract is terminated at the Company’s initiative, the Company will pay termination 

benefits to the employees depending on their period of service, as follows:

Seniority

1 - 2 years

2 - 5 years

5 - 10 years

10 - 20 years

More than 20 years

No. of gross monthly average base salary at Company level

2

3

4

5

8

•   the discount rate used is based on the yield of the Romanian Government bonds at the reporting date, 

therefore the weighted average discount rate is 6.00% for the year 2023 (2022: 8.1%);

b. Termination benefits for collective lay-offs at the Company’s initiative: 

•   taxes and social charges are those in force as at the reporting date.

(b) Company specific assumptions: 

•   Starting with 2023 the gross salaries’ growth was forecasted at the inflation level;

•  employees’ turnover: based on historical data;

•  jubilee and retirement bonuses granted based on seniority as per the collective labour contracts, as 

follows:

For collective lay-offs, per the Collective labour contract, the Company will pay termination benefits to the 

employees depending on their period of service, as follows:

Seniority

1 - 3 years

3 - 5 years

5 - 10 years

10 - 20 years

More than 20 years

No. of gross monthly average base salary at Company level

3

6

7

11

16

The above-mentioned stipulations do not apply to employees with individual labour contract concluded 

for a determined period. The above provisions do not apply to employees that obtained other higher 

cumulative salary compensation rights, provided by legal regulations regarding the Company’s 

reorganization and restructuring. Employees who are re-employed within the Company after layoff are not 

entitled to the above-mentioned benefits.

NOTES TO THE SEPARATE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 20232023 ANNUAL REPORTNOTES TO THE SEPARATE FINANCIAL STATEMENTS2023 ANNUAL REPORTELECTRICA S.AFOR THE YEAR ENDED 31 DECEMBER 2023ELECTRICA S.A406

407

Sensitivity analysis

16. Bank borrowings and overdrafts 

Significant actuarial assumptions for the determination of the benefit obligation are the discount rate, 

expected salary increase and retirement age. The sensitivity analysis below has been determined based on 

reasonably possible changes of the respective assumptions occurring at the end of the reporting period, 

while holding all other assumptions constant.

Discount rate

Salary growth

Retirement age

Increase by 1%

Decrease by 1%

2023

(92,376)

2022

(73,009)

2023

92,376

2022

73,009

106,255

86,944

(106,255)

(86,944)

Increase by 1 year

Decrease by 1 year

2023

9,077

2022

6,828

2023

(9,077)

2022

(6,828)

As at 31 December 2023, respectively 31 December 2022, the long-term bank borrowings are presented as 

follows:

Lender

Vista Bank

ERSTE Group Bank and Raiffeisen Bank

Total

Less: current portion of the long-term bank borrowings

Less: accumulated interest

Total long-term borrowings, net of current portion

Bank Borrowings description:

Balance at  

Balance at  

31 December 2023

31 December 2022

125,000,000

100,000,000

91,768,248

216,768,248 

100,000,000

216,768,248 

- 

-

-

-

100,000,000

The sensitivity analysis presented above may not be representative of the actual change in the benefit 

a) Line of Credit for working capital and for issuing Bank Guarantee Letters granted by Vista Bank

obligation as it is unlikely that the changes in assumptions would occur in isolation of one another as some 

of the assumptions may be correlated. In presenting the above sensitivity analysis, the present value of the 

benefit obligation has been calculated using the projected unit credit method at the end of the reporting 

period, which is the same as that applied in calculating the benefit obligation liability recognized in the 

statement of financial position. 

15. Employee benefit expenses

Average number of employees

Number of employees at 31 December

Wages and salaries

Social security contributions

Meal tickets

Termination benefit for labour/mandate contracts

Total

2023

78

83

2023

2022

72

78

2022

28,631,755 

25,026,080

660,494 

481,200 

521,754 

749,695

357,755

4,023,428

30,295,203 

30,156,958

The number or employees at 31 December 2023 includes also the 4 employees with mandate agreements 

(2022: the 5 employees with mandate agreements). Termination benefits represent compensation 

payments for management in case of mandate contracts termination. Management remuneration is 

presented within Note 29 – Related parties.

On 30 December 2022, Societatea Energetica Electrica S.A., as the borrower, concluded a contract for a line 

of credit for working capital and for the issuance of Bank Guarantee Letters granted by Vista Bank for a 

period of 18 months. The main provisions are: Maximum credit amount: 120,000,000 RON; Interest rate: ROBOR 

3M +2.95 % p.a.; full refund at maturity. On 31 December 2023, the balance of the loan is 125,000,000 RON. 

(Outstanding balance as at 31 December 2022: RON 100,000,000).

b) Syndicated credit facility granted by Erste Group Bank AG and Raiffeisen Bank SA

On 2 November 2021, Electrica S.A., as borrower, entered into a syndicated credit facility with Erste Group 

Bank AG and Raiffeisen Bank SA. The main provisions are: Maximum loan amount RON 750,000,000; Interest 

rate: ROBOR 3M+1.16%. On 3 November 2023 the loan was extended for a period of one year and the 

maximum loan amount was reduced to RON 450,000,000. As at 31 December 2023 the balance of the loan is 

RON 91,768,248 thousand (31 December 2022: RON 0.0 thousand).

Overdrafts

As of the date of approval of these individual financial statements by the Board of Directors, the Company 

has overdraft facilities from ING Bank N.V. with a maximum overdraft limit of up to RON 210,000,000 

(maximum overdraft limit of up to 210,000,000 on 31 December 2022).

The overdraft facilities are used for financing activities. The balance of overdraft facilities as at 31 December 

2023 is RON 205,520,079 (31 December 2022: RON 207,830,772).

NOTES TO THE SEPARATE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 20232023 ANNUAL REPORTNOTES TO THE SEPARATE FINANCIAL STATEMENTS2023 ANNUAL REPORTELECTRICA S.AFOR THE YEAR ENDED 31 DECEMBER 2023ELECTRICA S.A408

409

17. Income tax 

(iv) Movement in deferred tax balances

In determining the amount of current and deferred tax, the Company takes into account the impact of 

uncertain tax positions and whether additional taxes and interest may be due. This assessment relies on 

estimates and assumptions and may involve a series of judgments about future events. The Company 

considers that the accounting records for taxes due are adequate for all open fiscal years, based on 

assessment made by management taking into account various factors, including the interpretation of tax 

legislation and previous experience. New information may become available that causes the Company to 

change its judgment regarding the adequacy of existing tax liabilities; such changes to tax liabilities will 

impact the income tax expense in the period when such a determination is made.

(i) Amounts recognised in profit or loss

Deferred tax benefit

Total benefit related to income tax

2023

5,886,085  

5,886,085 

2022

259,439

259,439

Balance at 31 December 2023

2023

Net balance 
at 1 January 
2023

Recognised 
in profit or 
loss

Recognised 
in other 
comprehensive 
income

The effect 
of merger

Net

Deferred 
tax assets

Deferred 
tax 
liabilities

Property, plant and 
equipment

Employee benefits

Tax loss carried 
forward

Tax (assets)/ liabilities

3,646,188 

334,186 

1,138,457

5,090,117

10,208,948 

-

10,208,948 

(1,086,870) 

(186,543)

(4,121)

-

(1,277,534) 

(1,277,534)

(2,559,318) 

(6,033,728) 

-

(338,368)

(8,931,414) 

(8,931,414) 

-

-

-

(5,886,085)

1,134,336

4,751,749

-

(10,208,984)

10,208,948

Balance at 31 December 2022

Recognised 
in other 
comprehensive 
income

Net

Deferred 
tax assets

Deferred 
tax 
liabilities

(ii) Amounts recognised in other comprehensive income

2022

Net balance at  
1 January 2022

Recognised in 
profit or loss

Revaluation of property, plant 
and equipment

Revaluation of property, plant 
and equipment - merger 

Re-measurement of defined 
benefit liability 

Total

2023

2022

Before tax

Tax benefit

Net of tax

Before tax

Tax benefit

Net of tax

6,988,472 

 (1,138,457)

5,850,014 

2,701,689

(62,344)

2,639,345

-

-

-

-

-

-

Property, plant and 
equipment

Employee benefits

Tax loss carried forward

Tax (assets)/ liabilities

3,739,542

(93,354)

-

3,646,188

-

3,646,188

(2,275,574)

929,265

259,439

(1,086,870)

(1,086,870)

(1,463,968)

(1,095,350)

-

(2,559,318)

(2,559,318)

-

-

-

(259,439)

259,439

-

(3,646,188)

3,646,188

(25,755)

4,121 

 (21,634)

1,621,494

(259,439),

1,362,055

9,664,406 

(1,196,680)

5,828,381

1,621,494

(259,439)

1,362,055

(v) Unrecognised deferred tax assets

The Company has not recognized deferred tax assets in respect of the entire cumulated tax losses as it is 

not probable that future taxable profits will be available against which the Company can use the benefits 

(iii) Reconciliation of effective tax rate

Profit before tax 

Tax using Company’s domestic tax rate 

Non-deductible expenses

Non-taxable income

Deductible legal reserve

2023

2022

18,054,751 

24,045,446

2,888,760 

16%

3,847,271

16%

20%

3,543,775 

-12%

(2,202,055) 

-1%

(144,566) 

9%

-7%

-1%

2,079,113

(1,700,300)

(207,048)

Recognition of tax effect of previously unrecognised tax losses

Other tax effects

The effect of merger

Total benefit related to income tax

-18%

(3,310,837) 

-18%

(3,867,999) 

2%

26%

33%

359,259 

4,751,749

0%

-

108,402

-

5,886,085 

-1%

259,439

therefrom.

Tax losses

18. Trade receivables

Trade receivables, gross

Loss allowance 

Total trade receivables, net

Receivables from related parties are presented in Note 29.

2023

2022

310,916,628

337,136,289

31 December 2023

31 December 2022

157,085,125 

161,471,282

(155,337,719)

(160,675,756)

1,747,406 

795,526

NOTES TO THE SEPARATE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 20232023 ANNUAL REPORTNOTES TO THE SEPARATE FINANCIAL STATEMENTS2023 ANNUAL REPORTELECTRICA S.AFOR THE YEAR ENDED 31 DECEMBER 2023ELECTRICA S.A410

411

Trade receivables, gross, comprise:

Electricity receivables from clients in litigation, insolvency or 
bankruptcy (mainly Oltchim, Transenergo)

Late payment penalties from clients in litigation, insolvency or 
bankruptcy (Oltchim)

Other

Total trade receivables, gross

Considering the events above, as of 31 December 2022 a part of the receivable for Oltchim in amount of RON 

420,212,304 was written off as it was not recognised in the final bankruptcy table. The bad debt allowance 

31 December 2023

31 December 2022

was also adjusted with the same amount. As of 31 December 2023 and 31 December 2022, the balance of 

129,532,963 

134,521,414

receivables with Oltchim is RON 98,725,847 bad debt allowance being at the same amount.

26,506,303 

26,506,303

PETPROD SRL in amount of RON 2, 591,163 were written off as a result of closing the insolvency procedure of 

Also, in 2022, receivables for SC ROMENERGY INDUSTRY SRL in amount of RON 2,917,262 and , receivables for 

the debtor and removing it from the Trade Register. The bad debt allowance was also adjusted with the 

1,045,859 

443,565

157,085,125 

161,471,282

same amount.

The reconciliation between the opening balances and the closing balances of the impairment for trade 

receivables is as follows:

Loss allowance

Balance as at 1 January

Loss allowance recognized 

Loss allowance used

Decrease in loss allowance

Trade receivables adjustments - merger

Balance as at 31 December

The ageing of trade receivables is presented in Note 28.

Loss allowances are determined according to IFRS 9 “Financial instruments” based on “expected credit 

loss” model. A significant part of the loss allowances refers to clients in litigation, insolvency or bankruptcy 

procedures, many of them being older than five years. The Company will derecognize these receivables 

together with the related allowances after the finalization of the bankruptcy process. These receivables 

were treated separately in computing the allowance according to IFRS 9.

2023

2022

160,675,756 

582,012,952 

-

-

(5,006,909) 

(421,235,816)

(568,609) 

237,481

(101,380)

-

155,337,719 

160,675,756

19. Other receivables

Cash-pooling receivables

Interest receivable

Other receivables

Bad debt allowance

Total other receivables, net

31 December 2023

31 December 2022

567,646,476 

477,646,009

26,671,583 

12,785,701 

22,365,439

10,740,216

(9,258,597) 

(9,258,597)

597,845,163 

501,493,067

Oltchim (a state-controlled company) was an important customer of Electrica S.A. until January 2012, 

when the Company transferred the contract to Electrica Furnizare S.A. In January 2013, Oltchim entered 

into insolvency procedures and subsequently in May 2019 started the bankruptcy procedures. Due to the 

uncertainties regarding the recoverability of the amounts owed by this customer, the Company recognized 

Cash-pooling receivables comprises the receivable of Electrica SA as at 31 December 2023 as cash pool 

leader in the two cash-pooling systems set up at Group level (Note 23 and Note 29).

Interest receivable represents mainly interest to be received from related parties for the loans granted 

in prior years a bad debt allowance for the entire amount receivable. During 2020, the Company adjusted 

(Note 29).

the uncollected VAT in amount of RON 95,186,215 related to the doubtful receivables from Oltchim, based on 

the sentence of starting the bankruptcy procedures and the provisions of art. 287 of the Fiscal Code. 

The reconciliation between the opening balances and the closing balances of the impairment for other 

As of 2021, the balance of receivables with Oltchim was RON 518,938,151, bad debt allowance was also at the 

same amount.

By decision of the European Court in Luxembourg pronounced on 15 December 2021 (final decision being 

applicable as of 21 March 2022), in case T565/19, it was partially cancelled the European Commission 

Decision no. C (2018) 8592 from 2018, which established a series of measures regarding the recovery by 

Romania of the State aid granted to Oltchim S.A. By its decision, the European court cancelled a series of 

the measures, including the amounts considered state aid with which Electrica was registered in the table 

of receivables. Following the decision, the company remained registered in the table of receivables with the 

amount of RON 116,058,538.

Following the evolution of the bankruptcy process, on 06 April 2022, the updated table of receivables was 

published in BPI Tabel Oltchim, which still recognizes only the guaranteed receivables, which in the case of 

the company the estimated amount that remains to be recovered from the sales of assets of Oltchim SA in 

the completion of the bankruptcy process is RON 116,058,538 (including VAT), comprised of the base in the 

amount of RON 98,725,847 and respectively the VAT in the amount of RON 17,332,691. 

receivables is as follows:

Loss allowance

Balance as at 1 January

Loss allowance recognized 

Loss allowance used

Decrease in loss allowance

Balance as at 31 December

2023

9,258,597

 2022

11,046,264 

-

-

-

9,258,597

-

-

(1,787,667)

9,258,597

In 2022, the allowance related to Electrica Serv S.A. in amount of RON 1,787,667, representing a legal interest, 

was reversed as a result of favorable court decision. The related receivables, in amount of RON 2,183,897 was 

cashed.

NOTES TO THE SEPARATE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 20232023 ANNUAL REPORTNOTES TO THE SEPARATE FINANCIAL STATEMENTS2023 ANNUAL REPORTELECTRICA S.AFOR THE YEAR ENDED 31 DECEMBER 2023ELECTRICA S.A412

413

20. Cash and cash equivalents

Bank current accounts

Bank current accounts transferred on merger

Call deposits

Total cash and cash equivalents in the separate statement of financial 
position

Overdrafts used for cash management purposes

31 December 2023

31 December 2022

3,179,760

3,614,591

15,379,476

-

595,005

102,017,348

19,154,241

105,631,939

-

-

Land and land 
improvement

Buildings

Equipment

Vehicles, 
furniture 
and office 
equipment

Construction 
in progress

 Total 

-

-

-

-

(417,907)

(1,115,590)

-

-

-

-

-

(417,907)

(1,115,590)

1,900,668

22,122,136

1,015,452

2,134,443

27,172,699

Accumulated depreciation of 
disposals

Gross book value netted off 
against the accumulated 
depreciation at revaluation

Balance at 31 December 2023

Total cash and cash equivalents in the separate statement of cash flow 

19,154,241

105,631,939

Net carrying amounts

As at 31 December 2022, call deposits amount consists mainly of Vista Bank overnight deposit in amount of 

RON 99,650,000, related to long term loan whithdrawn for the issuance of Bank Guarantee Letters (please 

see note 14).

21. Property, plant and equipment

The reconciliation between the initial balance and the final balance of property, plant and equipment in 

2023 and 2022: was as follows:

Land and land 
improvement

Buildings

Equipment

Vehicles, 
furniture 
and office 
equipment

Construction 
in progress

 Total 

31 December 2022

31 December 2023

67,128,750

24,357,056

843,484

1,218,796

5,391,418

98,939,504

73,330,925

32,339,490

 28,859,117

2,179,345

8,375,408

145,084,286

On 31 December 2023 Electrica SA as the absorbing company and Electrica Productie Energie SA, Electrica 

Energie Verde 1 SRL and Green Energy Consultancy & Investments SRL as absorbed companies merged by 

absorption. As a result of the merger, the tangible fixed assets of the Company increased by 44,217,291 RON, 

following the acquisition of the assets of Electrica Energie Verde 1 SRL and Green Energy Consultancy & 

Investments SRL.

As at 31 December 2023, the buildings and land include the administrative headquarter of the Company and 

the corresponding land, the plots of land over which the Company has obtained title deeds and the land 

and buildings acquired in 2020 from the subsidiary Servicii Energetice Muntenia S.A.. 

As at 31 December 2023, the Company performed the revaluation at fair value of tangible assets consisting 

Revaluation recognized in other 
comprehensive income, net

3,894,400

3,094,072

Revaluation recognized in profit or 
loss, net

853,836

-

67,128,750

27,001,451

16,395,755

1,830,851

7,525,861

119,882,668

of land and buildings. The revaluation was performed by an independent authorized valuer Darian DRS S.A..

-

-

268,243 

284,820

1,295,154

1,848,217  

Following the revaluation performed, the gain from the increase in value on the land and buildings was 

1,453,939

5,260,226

34,735,163

1,079,126

1,688,837

44,217,291

charged to Other Comprehensive Income in amount of RON 6,988,472 and in Profit or Loss in amount of RON 

-

-

-

-

-

-

-

-

-

-

-

6,988,472

853,836

(1,115,590)

(417,907)

853,836.

Measurement of fair value

The Company’s land and buildings are stated at their revalued amounts, being the fair value at the date 

of revaluation, less any subsequent accumulated depreciation and subsequent accumulated impairment 

losses. The fair value measurements of the Company’s land and buildings as at 31 December 2023 were 

performed by Darian DRS S.A. an independent valuer not related to the Company. Darian DRS S.A. is member 

of the National Association of Authorised Romanian Valuers and has appropriate qualifications and recent 

(1,115,590)

-

-

-

(417,907)

73,330,925 

34,240,158 

50,981,253

3,194,797

10,509,851 

172,256,985 

experience in the fair value measurement of properties in the relevant locations. The valuation conforms to 

-

-

-

2.644.395

15.552.271

612.055

2.134.443

20.943.164

performed on 31 December 2023 and the previous one performed on 31 December 2020.

371,863

370,710

195,167

-

6,617,062

208,230

-

-

937,740 

6,825,292

The following table shows the valuation techniques used in measuring fair values (Level 3), as well as the 

significant unobservable inputs used. 

International Valuation Standards and was based on recent market transactions on arm’s length terms for 

similar properties, whenever possible and discounted cash-flows method.

There were no significant changes to the valuation technique in the period between the current revaluation 

Gross carrying amount

Balance at 31 December 2022 

Additions

Additions - merger

Gross book value netted off 
against the accumulated 
depreciation at revaluation

Disposals

Balance at 31 December 2023

Accumulated depreciation 
and impairment losses

Balance at 31 December 2022

Depreciation

Depreciation - merger

(Continued on next page)

NOTES TO THE SEPARATE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 20232023 ANNUAL REPORTNOTES TO THE SEPARATE FINANCIAL STATEMENTS2023 ANNUAL REPORTELECTRICA S.AFOR THE YEAR ENDED 31 DECEMBER 2023ELECTRICA S.A414

415

Category

Valuation technique

Significant 
unobservable 
inputs

Land 

Market approach

The fair value is estimated based on selling price 
per square meter of land of similar characteristics 
(i.e. ownership, legal limitations, financing and 
selling conditions, location, physical and economical 
properties, and best use). The market price is mainly 
based on recent transactions.

•  Adjustment for 

liquidity, location, 
size.

Buildings

Market approach and discounted cash-flows (DCF) 
method 

Inter-relationship 
between key 
unobservable 
inputs and fair value 
measurement

The estimated fair 
value would increase/
(decrease) if:

•  Adjustment for 

liquidity, location or 
size would be lower/
(higher) 

Buildings were evaluated using the following methods, 
depending on the best use and the availability and 
credibility of available market information:

Market approach

The market approach is based on the selling price per 
square meter for buildings with similar characteristics 
(i.e. ownership, legal limitations, financing and 
selling conditions, location, physical and economical 
properties, and best use)., adjusted liquidity, location, 
size etc.

The DCF method

The valuation model based on the DCF method 
estimates the present value of net cash flows to be 
generated by a building taking into account occupancy 
rate and annual rent. The discount rate estimation 
considers, inter alia, the quality of a building and its 
location.

•  Adjustment for 

•  Adjustment for 

liquidity, location, 
size.

liquidity, location or 
size would be lower/
(higher)

•  Occupancy rates were 

higher/(lower) 

•  Yield rates were lower/

(higher)

•  Annual rent per sqm 
was higher/(lower)

•  Occupancy rates 

(90%)

•  Yield rates 

(between 9% and 
10%)

•  Annual rent per 
sqm (between 2 
and 10 EUR/sqm), 
depending on 
location;

22. Intangible assets

Intangible assets include mainly licenses and costs of implementation of the accounting system SAP and 

licenses for various software, as follows:

Gross carrying amount

Balance at 31 December 2022

Additions

Additions - merger

Goodwill

Disposals

Software and 
licenses

Goodwill

Construction in 
progress

 Total 

1,961,005

4,235

122,345

-

-

-

-

-

1,446,450

-

-

1,961,005

993,912

-

-

-

998,147

122,345

1,446,450

-

Balance at 31 December 2023

2,087,585

1,446,450

993,912

4,527,947

Accumulated depreciation and impairment 
losses 

Balance at 31 December 2022

Amortisation

Amortisation - merger

Accumulated amortization of disposals

Balance at 31 December 2023

Net carrying amounts

At 31 December 2022

At 31 December 2023

1,834,816

55,183 

78,791

- 

1,968,790 

126,189

118,795

-

-

-

-

-

-

-

-

1,834,816

55,183

78,791

-

1,968,790

126,189

1,446,450

993,912

2,559,157

On 31 December 2023 Electrica SA as the absorbing company and Electrica Productie Energie SA, Electrica 

Energie Verde 1 SRL and Green Energy Consultancy & Investments SRL as absorbed companies merged by 

absorption. As a result of the merger, the intangible fixed assets of the Company increased by 122,345 RON, 

following the acquisition of the assets of Electrica Energie Verde 1 SRL and Green Energy Consultancy & 

Investments SRL.

NOTES TO THE SEPARATE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 20232023 ANNUAL REPORTNOTES TO THE SEPARATE FINANCIAL STATEMENTS2023 ANNUAL REPORTELECTRICA S.AFOR THE YEAR ENDED 31 DECEMBER 2023ELECTRICA S.A416

417

23. Investments in subsidiaries

Merger by absorption within the Group

The investments in subsidiaries are presented as follows:

On 20 December 2023, the Extraordinary General Meeting of the Company’s Shareholders (EGMS) approved 

the merger by absorption between Societatea Energetica Electrica SA (“ELSA”), Societatea Electrica 

31 December 2023

31 December 2022

Productie Energie SA (“EPE”), Electrica Energie Verde 1 SRL (“EEV1”) and Green Energy Consultancy & 

Distributie Energie Electrica  
Romania S.A.

Electrica Furnizare S.A.

Electrica Serv S.A.

Electrica Energie Productie S.A.

Sunwind Energy S.R.L.

New Trend Energy S.R.L.

Green Energy Consultancy &
Investments S.R.L.

Foton Power Energy S.R.L.

Servicii Energetice Oltenia S.A.
(in bankruptcy)

Servicii Energetice Moldova S.A. 
(in bankruptcy)

Servicii Energetice Banat S.A.  
in bankruptcy)

Gross value

Impairment

Net

Gross value

Impairment

Net

1,741,959,406 

227,181,073

-

-

1,741,959,406

1,741,959,406 

227,181,073

227,181,073

-

-

1,741,959,406

227,181,073

481,803,770

(164,368,925)

317,434,846

481,803,770

(164,368,925)

317,434,846

-

5,128,655

5,588,029

-

12,636,221

-

-

-

-

-

-

124,990

5,128,655

4,393,567

5,588,029

5,588,029

-

1,446,450

12,636,221

-

-

-

-

-

-

82,033,220 

(82,033,220)

106,162,492 

(106,162,492) 

43,761,094 

(43,761,094) 

-

-

-

-

82,033,220 

(82,033,220)

106,162,492 

(106,162,492) 

43,761,094 

(43,761,094) 

23,822,124 

(23,822,124) 

124,990

4,393,567

5,588,029

1,446,450

-

-

-

-

-

Servicii Energetice Dobrogea S.A. 
(in bankruptcy)

23,822,124 

(23,822,124) 

Investments SRL (“GECI”) (together the “Companies”) and the participation of the Companies in the merger, 

with Societatea Energetica Electrica SA as absorbing company, Electrica Productie Energie SA, Electrica 

Energie Verde 1 SRL and Green Energy Consultancy & Investments SRL as absorbed companies, with the 

effective date of the merger being 31 December 2023. 

24. Investments in associates

On 28 July 2021 and on 7 December 2021, Electrica SA concluded four agreements for the sale-purchase 

of shares in four project companies having as main object of activity the production of electricity from 

renewable sources. The sale-purchase agreements concluded, mention the fact that in the first stage 

Electrica SA acquires 30% of the share capital of the four companies, remaining that in the following stages, 

to acquire the remaining 70% of the share capital after the conditions provided in the sale-purchase 

agreements will be fulfilled. By the end of 31 December 2022, two of the project companies were acquired by 

60% (please see note 21), therefore they are accounted as subsidiaries, the other ones are as follows:

•  Crucea Power Park S.R.L. develops the wind project “Crucea Est”, with a projected installed capacity of 

121 MW and a projected electricity storage capacity of 60 MWh (15 MW x 4h), located outside the Crucea 

area, Constanta County. The estimated purchase price for the “Crucea Est” wind project is 70 thousand 

EUR/MW for the aforementioned capacity, totalling the amount of 8,470 thousand EUR. On 28 July 2021, 

Electrica SA paid the amount of EUR 2,541 thousand representing 30% of the project value, respectively 

30% of the shares of Crucea Power Park SRL. On 15 May 2023, Electrica acquired a further 10% of the 

shares and voting interests in Crucea Power Park S.R.L. As a result, the Group’s shareholding increased 

from 30% to 40%.

Total

2,730,076,085

(420,147,855)

2,309,928,230

2,718,276,215

(420,147,855)

2,298,128,361

Considering the holding percentage of 40%, as at 31 December 2023, the entity is accounted for using the 

equity method in these separate financial statements as provided in the Company’s accounting policies in 

* On 31.12.2023 the merger by absorption took place between Societatea Energetica Electrica SA (ELSA) as 

note 6. The cost of the investments at acquisition date, totalling the amount of RON 12,500,195 is detailed as 

absorbing company and Societatea Electrica Productie Energie SA (EPE), Electrica Energie Verde 1 SRL (EEV1) 

follows: 

and Green Energy Consultancy & Investments SRL (GECI) as absorbed companies.

** On 31 July 2023, Electrica acquired an additional 30% of the shares and voting interests in Foton Power 

Energy S.R.L.,having as main object of activity the production of energy from photovoltaic sources. As a 

result, the Group’s equity interest increased from 30% to 60%, thus, Foton Power Energy S.R.L. becoming a 

subsidiary of Electrica Group.

Changes in Company’s subsidiaries structure in 2023

On 6 February 2023, Electrica completed the acquisition of Green Energy Consultancy & Investments S.R.L., 

having as main object of activity the production of energy from photovoltaic sources. Until 31 December 

2022 the company was acquired 75%. 

On 24 March 2023, Electrica completed the acquisition of Sunwind Energy S.R.L, which has as its main activity 

production of energy from photovoltaic sources. Until 31 December 2022 the project was acquired 60%. 

On 31 July 2023, Electrica acquired an additional 30% of the shares and voting interests in Foton Power 

Energy S.R.L.,having as main object of activity the production of energy from photovoltaic sources. As a 

result, the Company’s equity interest increased from 30% to 60%, thus, Foton Power Energy S.R.L. becoming a 

subsidiary of Electrica Group. 

Acquisition date

Percentage ownership and voting rights at acquisition date

Net assets at acquisition date

Company’s share of net assets 

Goodwill

Cost of investment at acquisition date

Crucea Power Park S.R.L.

31.07.2021

30%

(241,682)

 (72,505)

12,572,700

             12,500,195 

NOTES TO THE SEPARATE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 20232023 ANNUAL REPORTNOTES TO THE SEPARATE FINANCIAL STATEMENTS2023 ANNUAL REPORTELECTRICA S.AFOR THE YEAR ENDED 31 DECEMBER 2023ELECTRICA S.A418

419

Summarised financial information in respect of each of the Company’s associates is set out below:

25. Loans granted to subsidiaries

Crucea Power Park S.R.L.

Crucea Power Park S.R.L.

a) Loans granted to subsidiaries – long term

Non-current assets

Current assets

Non-current liabilities

Current liabilities

Net assets

Reconciliation to carrying amounts:

Opening net assets at acquisition date

Additions net assets/liabilities

Loss for the period

Closing net assets 

31.12.2023

9,198,685 

1,186,505

(10,375,714)

(45,159)

(35,683)

(245,780)

293,181

(83,084)

(35,683)

31.12.2022

8,519,924

1,141,674

(9,885,796)

(43,649)

(267,847)

(245,780)

-

(22,067)

(267,847)

Reconciliation of the financial information summarized above with the net value of the investments in the 

associated entities from the separate financial statements:

Net assets

Share in associates %

Company’s share of net assets 

Goodwill

Carrying amount of interest in associate 

Crucea Power Park S.R.L.

Crucea Power Park S.R.L.

31.12.2023

31.12.2022

(35,683)

(267,847)

40%

(14,274)

16,651,984

16,637,710

30%

(80,354)

12,572,700

12,492,346

Distributie Energie Electrica Romania S.A. 

Total loans granted to subsidiaries – long term

Loans granted to subsidiaries

31 December  2023

31 December 2022

                    1,276,325,000

1,276,325,000

1,276,325,000

1,276,325,000

The Company has entered into loan agreements as lender, as follows:

•  Loans granted in 2017:

•  Intragroup loan agreement with Societatea de Distributie a Energiei Electrice Muntenia Nord S.A. 

(currently Distributie Energie Electrica Romania S.A.) concluded in November 2017. Main provisions 

are: maximum loan amount: RON 150,000,000; Purpose of the loan: to finance the investment program 

of 2017; Interest rate: 2.79% per annum; Maturity: 84 months; Period allowed for disbursements: 12 

months; Repayment in full at maturity; Reimbursement allowed in advance, but not earlier than the 12 

months of the period of use. As at 31 December 2023, the outstanding balance is of RON 150,000,000 

(31 December 2022: RON 150,000,000);

•  Intragroup loan agreement with Societatea de Distributie a Energiei Electrice Transilvania Nord 

S.A. (currently Distributie Energie Electrica Romania S.A.) concluded in November 2017. Main 

provisions are: maximum loan amount: RON 200,000,000; Purpose of the loan: to finance the 

investment program of 2017; Interest rate: 2.79% per annum; Maturity: 84 months; Period allowed for 

disbursements: 12 months; Repayment in full at maturity; Reimbursement allowed in advance, but not 

earlier than the 12 months of the period of use. As at 31 December 2023, the outstanding balance is of 

RON 200,000,000 (31 December 2022: 200,000,000);

•  Intragroup loan agreement with Societatea de Distributie a Energiei Electrice Transilvania Sud S.A. 

(currently Distributie Energie Electrica Romania S.A.)  concluded in November 2017. Main provisions 

are: maximum loan amount: RON 160,000,000; Purpose of the loan: to finance the investment program 

of 2017; Interest rate: 2.79% per annum; Maturity: 84 months; Period allowed for disbursements: 12 

months; Repayment in full at maturity; Reimbursement allowed in advance, but not earlier than the 12 

months of the period of use. As at 31 December 2023, the outstanding balance is of RON 160,000,000 

(31 December 2022: RON 160,000,000).

The share loss in amount of RON 38,825 for the period was recognized in the separate statement of profit 

and loss for the year ended as at 31 December 2023 (31.12.2022: 13,044 RON).

•   Loans granted in 2018:

•  Intragroup loan agreement with Societatea de Distributie a Energiei Electrice Muntenia Nord S.A. 

(currently Distributie Energie Electrica Romania S.A.) concluded in April 2018. Main provisions are: 

maximum loan amount: RON 230,000,000; Purpose of the loan: to finance the investment program of 

2018; Interest rate: 4.7% per annum; Maturity: 84 months; Period allowed for disbursements: 12 months; 

Repayment in full at maturity; Reimbursement allowed in advance, but not earlier than the 12 months 

of the period of use. As at 31 December 2023, the outstanding balance is of RON 230,000,000 (31 

December 2022: RON 230,000,000);

•  Intragroup loan agreement with Societatea de Distributie a Energiei Electrice Transilvania Nord S.A. 

(currently Distributie Energie Electrica Romania S.A.) concluded in April 2018. Main provisions are: 

maximum loan amount: RON 160,000,000; Purpose of the loan: to finance the investment program of 

NOTES TO THE SEPARATE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 20232023 ANNUAL REPORTNOTES TO THE SEPARATE FINANCIAL STATEMENTS2023 ANNUAL REPORTELECTRICA S.AFOR THE YEAR ENDED 31 DECEMBER 2023ELECTRICA S.A420

421

2018; Interest rate: 4.7% per annum; Maturity: 84 months; Period allowed for disbursements: 12 months; 

31 December 2023, the outstanding balance 

•  Intragroup loan agreement with Electrica 

Repayment in full at maturity; Reimbursement allowed in advance, but not earlier than the 12 months 

is RON 676,500 (31 December 2022: RON 

Furnizare S.A. concluded in December 2023. 

of the period of use. As at 31 December 2023, the outstanding balance is of RON 160,000,000 (31 

600,0000).

December 2022: RON 160,000,000);

•  Intragroup loan agreement with Societatea de Distributie a Energiei Electrice Transilvania Sud S.A. 

•  Intragroup loan agreement with Sunwind 

Energy S.R.L. concluded in November 2022. 

(currently Distributie Energie Electrica Romania S.A.) concluded in April 2018. Main provisions are: 

Main provisions are: maximum loan amount: 

maximum loan amount: RON 130,000,000, Purpose of the loan: to finance the investment program of 

RON 147,300,000, The purpose of granting 

2018, Interest rate: 4.7% per annum, Maturity: 84 months, Period allowed for disbursements: 12 months, 

this loan is financing the investment works 

Repayment in full at maturity; Reimbursement allowed in advance, but not earlier than the 12 months 

necessary for the completion and operation 

of the period of use. As at 31 December 2023, the outstanding balance is of RON 130,000,000 (31 

December 2022: RON 130,000,000).

•   Loans granted in 2021:

•  Intragroup loan agreement with Distributie Energie Electrica Romania S.A. concluded in October 2021. 

Main provisions are: maximum loan amount: RON 246,325,000, The purpose of granting this loan is 

the partial repayment of loans contracted from BRD in 2016 to finance the investment plan for the 

year 2016 which reached the maturity in October 2021, Interest rate: 3.51% per annum, Maturity: 96 

months until 12.10.2029, Period allowed for disbursements: 12 months, Repayment in full at maturity; 

Reimbursement allowed in advance, but not earlier than the 12 months of the period of use. As at 31 

December 2023, the outstanding balance is RON 246,325,000 (31 December 2022: RON 246,325,000).

•   Loans granted in 2023:

•  Intragroup loan agreement with FOTON POWER ENERGY SRL concluded in October 2023. Main 

provisions are: maximum loan amount: RON 3,640,108, the maturity date and the duration of 

the contract, including the period of use, not exceeding 10.10.2024. As at 31 December 2023, the 

outstanding balance is RON 2,937,987.

b) Loans granted to subsidiaries – short term

Electrica Furnizare S.A. 

Electrica Energie Productie S.A.

Sunwind Energy S.R.L.

New Trend Energy S.R.L.

Green Energy Consultancy & Investments S.R.L.

Total loans granted to subsidiaries – short term

•   Short-term loans granted in 2022 and 2023:

Loans granted to subsidiaries

31 December  2023

31 December 2022

80,000,000 

-

-

41,594,188

2,475,699 

7,184,000 

-

600,000

2,400,000

440,335

89,659,699 

45,034,523

•  Intragroup loan agreement with Sunwind Energy S.R.L. concluded in September 2022. Main provisions 

are: maximum loan amount: RON 1,200,000, The purpose of granting this loan is financing the costs 

that are the responsibility of ELSA according to the Sale and Purchase Agreement, Interest rate: 

ROBOR 3M + 1.16 % per annum, Maturity: 12 months until 25.09.2024, Repayment in full at maturity. As at 

of the “Satu Mare 2” (Botiz) photovoltaic 

power plant, Interest rate: ROBOR 3M + 

1.16 % per annum, Maturity: 12 months until 

27.10.2023, Repayment in full at maturity. As at 

31 December 2023 and 31 December 2022, the 

outstanding balance is nil.

•  Intragroup loan agreement with Sunwind 

Energy S.R.L. concluded in April 2023. Main 

provisions are: maximum loan amount: RON 

1,800,000, The purpose of granting this loan is 

financing the costs that are the responsibility 

of ELSA according to the Sale and Purchase 

Agreement, Interest rate: ROBOR 3M + 2,95 

% per annum, Maturity: 12 months until 

06.04.2024, Repayment in full at maturity. 

As at 31 December 2023, the outstanding 

balance is RON 1,799,199.

•  Intragroup loan agreement with New Trend 

Energy S.R.L. concluded in June 2022. Main 

provisions are: maximum loan amount: RON 

2,400,000, The purpose of granting this loan 

is financing for the payment of the land set-

aside fee and the related bank commissions 

and the partial financing of the costs for 

issuing a Bank Letter of Guarantee having as 

beneficiary the company Distributie Energie 

Electrica Romania SA, Interest rate: ROBOR 3M 

+ 1.16 % per annum, Maturity: 12 months until 

13.06.2024, Repayment in full at maturity. As at 

31 December 2022, the outstanding balance is 

RON 2,400,000. During 2023 the parties agree 

to supplement the loan granted by Electrica 

SA to New Trend Energy SRL up to the total 

cumulative amount of 8,517,600 Ron. Expiry 

date and duration of the contract, including 

the period of use, not exceeding 13.06.2024. As 

at 31 December 2023, the balance of the loan 

granted is RON 7,184,000.

Main provisions are: maximum loan amount: 

100.000.000 RON, The purpose of granting this 

loan is to finance short-term working capital 

needs, Interest rate: ROBOR 3M + 1,16 % per 

annum, Maturity: 02 November 2024. As of 

31 December 2023, the balance of the loan 

granted is 80,000,000 RON.

c) Cash pooling system at Group level

On 20 December 2019, between ING Bank N.V., 

Electrica SA and its subsidiaries were concluded 

two agreements for the implementation of two cash 

pooling schemes, as follows:

• 

a first system involving Electrica SA, as cash 

pool leader and its distribution subsidiaries 

(Societatea de Distributie a Energiei Electrice 

Muntenia Nord S.A., Societatea de Distributie 

a Energiei Electrice Transilvania Nord S.A. and 

Societatea de Distributie a Energiei Electrice 

Transilvania Sud S.A., currently Distributie Energie 

Electrica Romania S.A.), as participants; 

The credit facility offered by the pool leader 

to each participant is up to the amount of 

RON 180,000,000; The credit facility offered by 

each participant to the pool leader is up to the 

amount of RON 50,000,000; Interest rate: ROBOR 

1M + 0.83% p.a and ROBOR 3M + 2.95% and 

Bank Rate : ROBOR 1M + 2.25%; . However, if the 

amounts drawn by the participants are covered 

both by the internal liquidity of Electrica SA, 

and by drawing from the credit line granted to 

Electrica SA, the amount of interest due by the 

participants to Electrica SA will be calculated 

using a weighted interest rate, calculated on the 

basis of the ROBOR Internal Rate 1M +0.83% p.a. 

and the ROBOR Bank Rate 1M + 2.25% p.a.  

The initial due date was 20.12.2020, the 

convention being automatically extended at 

the maturity of the bank facility agreement until 

27.02.2025;

• 

a second system involving Electrica SA, as 

cash pool leader and its subsidiaries, Electrica 

Furnizare S.A., Electrica Serv S.A., Servicii 

Energetice Muntenia S.A (currently absorbed 

by Electrica Serv S.A.), Electrica Energie Verde 

NOTES TO THE SEPARATE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 20232023 ANNUAL REPORTNOTES TO THE SEPARATE FINANCIAL STATEMENTS2023 ANNUAL REPORTELECTRICA S.AFOR THE YEAR ENDED 31 DECEMBER 2023ELECTRICA S.A422

423

1 SRL (starting with 30 December 2020) as 

of the participants is nil. In case the balance of the 

26. Capital and reserves

participants; 

master bank account of Electrica SA is not sufficient 

The credit facility offered by the participants 

to cover the negative balance of the current bank 

to the pool leader is up to the amount of RON 

accounts of the participants, the bank will make 

(a) Share capital, share premium, gains and losses referring to share issue

180,000,000 for Electrica Furnizare S.A.; RON 

available the necessary funds from the overdraft 

The issued share capital in nominal terms consists of 346,443,597 ordinary shares as at 31 December 2023 

10,000,000 for Electrica Energie Verde 1 SRL; 

facility that will be signed between the bank and 

(31 December 2022: 346,443,597) with a nominal value of RON 10 per share. As of 4 July 2014, after the Initial 

RON 50,000,000 for Electrica Serv S.A.. As at 30 

Electrica SA. 

Public Offering (“IPO”), the Company’s shares are listed on the Bucharest Stock Exchange and the Global 

As of 31 December 2023, the credit facility has 

an outstanding balance of RON 205,520,079 (31 

December 2022: RON 207,830,772). For the amounts 

drawn/transferred to the cash pooling systems 

between Electrica SA and the other participants, 

please refer to Note 29.

November 2020 was in place the convention in 

amount to RON 2,000,000 with Servicii Energetice 

Muntenia S.A. which was absorbed by Electrica 

Serv S.A. being integrated in the conventions 

limits applicable for Electrica SERV S.A. 

*On 31.12.2023 the merger by absorption 

took place between Societatea Energetica 

Electrica SA (ELSA) as absorbing company and 

Societatea Electrica Productie Energie SA (EPE), 

Electrica Energie Verde 1 SRL (EEV1) and Green 

Energy Consultancy & Investments SRL (GECI) as 

absorbed companies. 

Through internal agreements concluded by 

Electrica SA with each of the participants, 

subsequently amended by additional 

agreements, the internal interest rate was set at 

ROBOR 1M + 0.83% and ROBOR 3M + 2.95% and 

the Bank rate at ROBOR 1M + 2.25%;  

In the case where the amounts drawn by the 

participants are covered both from Electrica 

SA’s internal liquidity and by drawing on the 

credit line granted to Electrica SA, the amount 

of interest owed by the participants to Electrica 

SA will be calculated using a weighted interest 

rate calculated on the basis of the Internal Rate 

ROBOR 1M + 0.83% and the Bank Rate ROBOR 1M 

+ 2.25%; 

The initial due date was 20.12.2020, the 

convention being automatically extended at 

the maturity of the bank facility agreement until 

27.02.2025;

Through which the bank will automatically transfer 

all available amounts existing at the end of each 

day in the current bank accounts of the participants 

to the master bank account of Electrica SA. In case 

the current bank accounts of the participants have 

a negative balance at the end of the day, the bank 

will transfer the necessary amounts from the master 

bank account of Electrica SA to the current bank 

accounts of the participants, so as at the end of 

each day the balance of the current bank accounts 

Depositary Receipts are listed on the London Stock Exchange. 

The shares owned by the Company’s shareholders that are traded on the London Stock Exchange are the 

global depositary receipts (GDRs). A global depositary receipt represents four shares. The Bank of New 

York Mellon is the depositary bank for these securities. The GDRs’ weight in Electrica’s total share capital 

diminished following the Initial Public Offering, reaching a level of 0.7842% at the end of 2021 as compared to 

10.17% at 4 July 2014.

The holders of ordinary shares are entitled to receive dividends as declared, and are entitled to one vote 

per share in the shareholders’ meetings of the Company, except for the 6,890,593 shares purchased by the 

Company in July 2014 in order to stabilize the price. All shares rank equal and confer equal rights to the net 

assets of the Company, except for treasury shares. 

The Company recognizes changes in share capital only after their approval in the General Shareholders 

Meeting and their registration by the Trade Register. The contributions made by the shareholders which are 

not yet registered with the Trade Register at year end are recognized as pre-paid capital contributions from 

shareholders.

After IPO privatization, the Company recognized an increase of share capital of RON 1,771,887,440 and a 

share premium of RON 171,128,062. The transaction costs of RON 68,078,885 were deducted from the share 

premium.

Following the SPO that took place in November 2019, the share capital of Electrica SA was increased by in 

kind and cash contribution, with the amount of RON 5,036,680, from the amount of RON 3,459,399,290 to the 

amount of RON 3,464,435,970, by issuing a number of 503,668 new nominative and dematerialized shares 

with a nominal value of 10 RON/share. 

The costs generated by the secondary public offering are in amount of RON 963,601. Also, the Company 

recorded gains referring to share issue of RON 2,185,519, resulting from the difference between the 

contribution value of the plots of land and their value recorded as pre-paid capital contributions in kind 

from shareholders.

(b) Treasury shares reserve

In July 2014, the Company purchased 5,206,593 ordinary shares and 421,000 Global Depositary Receipts, 

equivalent to 1,684,000 shares (totalling 6,890,593 shares). The total amount paid for acquiring the shares 

and Global Depositary Receipts was RON 75,372,435.

NOTES TO THE SEPARATE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 20232023 ANNUAL REPORTNOTES TO THE SEPARATE FINANCIAL STATEMENTS2023 ANNUAL REPORTELECTRICA S.AFOR THE YEAR ENDED 31 DECEMBER 2023ELECTRICA S.A424

425

(c) Revaluation reserves

The reconciliation between opening and closing balance of the revaluation reserve is as follows:

Balance at 1 January

Revaluation of property, plant and equipment

Revaluation of property, plant and equipment – merger

Deferred tax liability arising on revaluation of property, plant and equipment

Deferred tax liability arising on revaluation of property, plant and equipment 
– merger

Release of revaluation reserve to retained earnings corresponding to 
depreciation and disposals of property, plant and equipment

Balance at 31 December

(d) Legal reserves

2023

2022

11,806,704

12,397,647

6,988,472

2,701,689

(1,138,457)

(62,344)

-

-

-

-

(37,399)

(590,943) 

20,258,665

11,806,704

The Legal reserves are set up as 5% of the gross profit for the year, until the total legal reserves reach 20% 

of the paid-up nominal share capital of the Company, according to the legislation. These reserves are 

deductible for income tax purposes and are not distributable.

As at 31 December 2023, the legal reserves were in amount of RON 231,595,694 (31 December 2022: RON 

229,435,101).

(e) Dividends

The dividends distributed by the Company in 2023 and 2022 (from the statutory profits of preceding years) 

were as follows:

The total amount of dividends to be distributed to shareholders in 2023 was of RON 39,999,343 (2022: 

RON 152,798,852). The value of dividends per share distributed to the shareholders of the Company were: 

RON 0.1178 per share (2022: RON 0.45 per share). When calculating the dividend per share, the Company’s 

repurchased own shares (6,890,593 shares) were not considered as outstanding shares and are deducted 

from the total number of issued ordinary shares.

Out of the dividends declared by the Company of RON 39,999,343 (2022: RON 152,798,852), the dividends 

paid were RON 40,136,410 (2022: RON 152,446,574), the difference representing dividends paid to 

shareholders for previous periods.

27. Trade payables

Suppliers of goods and services

Capital expenditure suppliers

Suppliers – related parties (Note 29)

Total 

Payables to related parties are detailed in Note 29.

28. Other payables

31 December 2023

31 December 2022

5,580,512 

46,698 

1,018,220 

6,645,430

4,368,115

128,823

247,788

4,744,726

Cash-pooling payables 

Dividends payable

Other payables to the state budget

Other liabilities

31 December 2023

31 December 2022

Current

Non-current

Current

Non-current

47,764,297 

1,581,577 

11,730 

1,738,926 

51,096,530 

-

-

-

-

-

33,187,405

1,716,675

7,304

1,563,323

36,474,707

-

-

-

-

-

2023

2022

Total 

Distributed dividends

39,999,343 

152,798,852

Cash-pooling payables comprises the payable of Electrica as at 31 December 2023 as cash pool leader in 

the two cash-pooling systems set up at Group level (Note 23 and Note 29).

On 27 April 2023, the General Shareholders Meeting of the Company approved the net distributable profit of 

Other liabilities include mainly guarantees and sundry creditors. Dividends payable represent the dividends 

2022 as follows:

•  Dividends to be distributed to shareholders: RON 39,999,343;

• Legal reserve (5% from 2022 pre-tax profit): RON 1,278,875;

• Other reserves: RON 16,973,333.

uncollected by the shareholders.

In August 2020, the VAT group was established at the Electrica level in accordance with the provisions of 

Article 269 (9) of the Tax Code and the rules for its application, National Agency for Fiscal Administration 

(“NAFA”) Order No. 3006/2016 on the approval of the Procedure for the implementation and administration 

of the single tax group. The members of the VAT group are Electrica SA and its subsidiaries. The 

On 20 April 2022, the General Shareholders Meeting of the Company approved the net distributable profit of 

representative of the group is Electrica Furnizare S.A., having all the reporting and VAT record obligations 

2021 as follows: 

stipulated by the legal regulations in force for the whole group.

• Dividends to be distributed to shareholders: RON 152,798,852; 

• Legal reserve (5% from 2021 pre-tax profit): RON 16,128,587;

• Other reserves: RON 152,892,445.

NOTES TO THE SEPARATE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 20232023 ANNUAL REPORTNOTES TO THE SEPARATE FINANCIAL STATEMENTS2023 ANNUAL REPORTELECTRICA S.AFOR THE YEAR ENDED 31 DECEMBER 2023ELECTRICA S.A29. Provisions

Balance at 1 January 2023

Provisions recognized

Provisions utilized

Provisions reversed

Balance at 31 December 2023

Balance at 1 January 2022

Provisions recognized

Provisions utilized

Provisions reversed

Balance at 31 December 2022

426

427

Litigations and other risks

The Company’s exposure to credit risk is influenced mainly by the individual characteristics of each customer. 

In the past, the Company had a high credit risk mainly from State-owned companies (see Note 16). 

1,041,676

25,997

(228,598)

(113,991)

725,084

Cash and bank deposits are placed in financial institutions, which are considered to have good 

creditworthiness. The carrying amount of financial assets represents the maximum credit exposure.

Trade receivables 

The Company establishes an allowance for impairment that represents the amount of expected credit 

losses, calculated based on the expected loss rates.

                           4,238,114

Impairment

The provisions balance consists of: a) provisions in amount of RON 499,488 as at 31 December 2023 (31 

December 2022: RON 702,088) referring to the benefits granted upon the termination of executive directors’ 

and management key personnel contracts in the form of a non-compete clause and b) provision in amount 

of RON 225.,598 as at 31 December 2023 (31 December 2022: RON 339,589) referring to various litigations.

30. Financial instruments - fair values and risk management

(a) Accounting classifications and fair values

304,330

(1,872,108)

(1,628,660)

1,041,676

The following table provides information about the exposure to credit risk and expected credit losses for 

trade receivables for customers as at 31 December 2023:

Neither past due nor impaired

Past due 1-30 days

Past due 31-60 days

Past due 61-90 days

Past due more than 90 days

Total

31 December 2023

Expected loss 
rates (“ECL”)

Gross value

Lifetime ECL

Net trade 
receivables

Credit 
impaired

0%

0%

0%

0%

1,743,932 

945

-

-

-

-

-

-

1,743,932 

945

-

-

100%

155,340,248

(155,337,719)

2,529

157,085,126

(155,337,719) 

1,747,406 

No

No

No

No

Yes

According to IFRS 9, financial assets are measured at amortized cost as they are held within a business 

model to collect contractual cash flows and these cash flows consist solely of payments of principal and 

interest on the principal amount outstanding. 

Allowances for impairment are referring mainly to Oltchim in amount of RON 98,725,847 (31 December 2022: 

RON 98,725,847), Transenergo Com in amount of RON 37,084,601 (31 December 2022: RON 37,088,264) and to 

Fidelis Energy in amount of RON 11,154,320 (31 December 2022: RON 11,220,386). Please see Note 16.

The Company doesn’t have real Group guarantees, only corporate guarantees disclosed on note 31 

An analysis of trade receivables from the point of view of the credit risk and expected credit losses for trade 

Commitments.

receivables for customers as at 31 December 2022, is as follows:

The Company assessed that the carrying amount is a reasonable approximation of the fair value for the 

31 December 2022

financial assets and financial liabilities.

(b) Financial risk management

The Company has exposure to the following risks arising from financial instruments: 

•  credit risk; 

•  liquidity risk;

•  market risk. 

These risks are further explained and detailed.

(i) Credit risk 

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument 

fails to meet its contractual obligations, and arises mainly from the Company’s receivables from customers, 

cash-pooling debtors, cash and cash equivalents, restricted cash and bank deposits.

Neither past due nor impaired

Past due 1-30 days

Past due 31-60 days

Past due 61-90 days

Past due more than 90 days

Total

Expected loss 
rates (“ECL”)

Gross value

Lifetime ECL

Net trade 

Credit 

receivables

impaired

0%

0%

0%

0%

708,385

56,677

-

-

-

-

-

-

708,385

56,677

-

-

100%

160,706,221

(160,675,756)

30,464

161,471,282

(160,675,756)

795,526

No

No

No

No

Yes

NOTES TO THE SEPARATE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 20232023 ANNUAL REPORTNOTES TO THE SEPARATE FINANCIAL STATEMENTS2023 ANNUAL REPORTELECTRICA S.AFOR THE YEAR ENDED 31 DECEMBER 2023ELECTRICA S.A428

429

(ii) Liquidity risk 

Exposure to currency risk

Liquidity risk is the risk that the Company might encounter difficulty in meeting the obligations associated 

The summary of the quantitative data about the Company’s exposure to currency risk is as follows:

with its financial liabilities that are settled by delivering cash or another financial asset. The Company has 

significant cash and cash equivalents so that no liquidity risk is experienced.

The Company aims to maintain the level of its cash and cash equivalents at an amount in excess of 

in RON

expected cash outflows on financial liabilities. The Company also monitors the level of expected cash 

Cash and cash equivalents

inflows on trade receivables together with expected cash outflows on trade and other payables. 

Exposure to liquidity risk

Lease liability

Net statement of financial position exposure

31 December 2023

31 December 2022

denominated in EUR

denominated in EUR

334,404 

(2,113,186) 

(1,778,782) 

263,291 

(267,657)

(4,366)

The following table presents the contractual maturities of financial liabilities at the reporting date. The 

amounts are gross and undiscounted, and include estimated interest accrued.

The following significant exchange rates have been applied during the year:

Financial liabilities

Carrying 
amount

Total

less than 1 
year

1-2 years

2-5 years

more than 

5 years

Contractual cash flows

205,520,079

205,520,079

205,520,079

6,645,430

6,645,430

6,645,430

-

-

-

-

RON

EUR 1

Sensitivity analysis

Average rate

Year-end spot rate

2023

4.9464

2022

4.9315

2023

4.9746

2022

4.9474

A reasonable possible appreciation (depreciation) of the EUR against RON at 31 December would have 

4,069,161

4,069,161

797,944 

530,385 

1,028,021

1,712,811

affected the measurement of financial instruments denominated in a foreign currency, the profit before tax 

216,234,670 

216,234,670

212,963,453

530,385 

1,028,021

1,712,811

and the equity, respectively, by the amounts shown below. The analysis assumes that all other variables, 

especially the interest rates, remain constant and ignores the impact of forecasted sales and purchases.

207,830,772

207,830,772

207,830,772

4,744,726

4,744,726

4,744,726

-

-

269,610

269,610

215,561

54,049

212,845,108

212,845,108

212,791,059

54,049

-

-

-

-

-

-

-

-

Efect

31 December 2023

EUR (5% movement)

31 December 2022

EUR (5% movement)

Interest rate risk

Profit before tax

Appreciation

Depreciation

(88,939)

88,939

(218)

218

Market risk is the risk that changes in market prices – such as foreign exchange rates, interest rates – will 

affect the Company’s income or the value of its holdings of financial instruments. The objective of market 

The Company exposures to interest rates on financial assets and financial liabilities are detailed below. 

risk management is to manage and control market risk exposures within acceptable parameters, while 

The Company is exposed to the interest rate benchmark ROBOR, which is the interest rate on the Romanian 

optimizing the return.

Currency risk

The Company is exposed to currency risk to the extent that there is a mismatch between the currencies in 

which sales, purchases and borrowings are denominated and the functional currency of the Company. The 

functional currency of the Company is the Romanian Leu (RON). 

The currencies in which these transactions are primarily denominated are RON and EUR. The Company also 

has deposits and bank accounts denominated in foreign currency (EUR). The Company’s policy is to use 

the local currency in its transactions as far as practically possible. The Company does not use derivative or 

hedging instruments.

interbank market. The Company does not have in place hedging contracts for interest rate.

31 December 2023

Bank overdrafts

Trade payables

Lease liability

Total

31 December 2022

Bank overdrafts

Trade payables

Lease liability

Total

(iii) Market risk

NOTES TO THE SEPARATE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 20232023 ANNUAL REPORTNOTES TO THE SEPARATE FINANCIAL STATEMENTS2023 ANNUAL REPORTELECTRICA S.AFOR THE YEAR ENDED 31 DECEMBER 2023ELECTRICA S.A430

431

Exposure to interest rate risk

The interest rate profile of the Company’s interest-bearing financial instruments is as follows:

31. Related parties

(a) Main shareholders

Fixed-rate instruments

Financial assets

Call deposits

Total

Variable-rate instruments

Financial assets

Cash pooling receivables (Note 23, Note 29)

Financial liabilities

Cash pooling payables (Note 23, Note 29)

Bank overdrafts (Note 18)

Lease liability

Total

31 December 2023

31 December 2022

As at 31 December 2023 and 31 December 2022, the major shareholder of Societatea Energetica Electrica S.A. 

is the Romanian State, represented by the Ministry of Energy with a share of ownership of 48.79% from the 

share capital. 

(b) Management and administrators’ compensation

-

-

102,017,348

102,017,348

Management compensation

2023

2022

4,324,861

      5,905,346           

567,646,476

477,646,009 

of mandate contracts for executive directors. 

Executive management compensation refers to both the managers with mandate contract and those with 

labour contract, concluded with Electrica SA. This also includes the benefits in the event of the termination 

Compensations granted to the members of the Board of Directors were as follows:

(47,764,297)

(33,187,405)

(205,520,079) 

(207,830,772)

(4,069,161) 

(269,610)

Members of Board of Directors

2023

2022

2,616,568

2,537,558         

310,292,939 

236,358,222 

Electrica SA’s Board of Directors comprises 7 members. According to the remuneration policy approved 

Fair value sensitivity analysis for fixed-rate instruments

The Company does not account for any fixed-rate financial assets or financial liabilities at fair value 

through profit or loss. Therefore, a change in interest rates at the reporting date would not affect profit or 

loss.

Cash flow sensitivity analysis for variable-rate instruments

A reasonably possible change of 50 basis points in interest rates at the reporting date would have 

increased (decreased) profit before tax by the amounts shown below. This analysis assumes that all other 

variables, in particular foreign currency exchange rates, remain constant.

by the General Meeting of Shareholders that took place 20 April 2022, the annual number of paid sessions 

is limited to twelve for Board of Directors meetings and to six for each of the committees. Additional 

committee meetings can be organized only in exceptional situations, upon the Chairs’ decision, who are 

responsible to efficiently organize the agenda and activity. However, only one such additional meeting shall 

be remunerated, for each committee. 

No loans were granted to managers and administrators in 2023 and 2022.

(c) Transactions with the Group companies

(i) Balance of receivables and payables from/ to Group companies:

Trade Receivables/Trade Payables

Effect

31 December 2023

Variable-rate instruments

31 December 2022

Variable-rate instruments

Profit before tax

50 bp increase

50 bp decrease

1,551,465  

(1,551,465)

Distributie Energie Electrica Romania S.A.

1,181,791 

(1,181,791)

Electrica Serv S.A.

Electrica Furnizare S.A.

Electrica Productie Energie S.A.

Sunwind Energy S.R.L.

Total

Receivables from

Payables to

31 December 2023 31 December 2022 31 December 2023 31 December 2022

1,197,710

197,031

471,687 

-

1,575,132 

1,199,088 

-

3,894

848

17,091

867,776 

133,353

-

1,784 

23,389 

222,615 

-

3,248,423 

1,396,967 

1,018,220 

247,788 

NOTES TO THE SEPARATE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 20232023 ANNUAL REPORTNOTES TO THE SEPARATE FINANCIAL STATEMENTS2023 ANNUAL REPORTELECTRICA S.AFOR THE YEAR ENDED 31 DECEMBER 2023ELECTRICA S.A 
 
 
432

433

As at 31 December 2023 and 31 December 2022, receivables from electricity distribution subsidiaries include 

(ii) Transactions with subsidiaries:

mainly other services reinvoiced.

Loans granted/interest receivable:

Distributie Energie Electrica Romania S.A.

1,276,325,000

1,276,325,000

19,183,225

17,937,449

Loans granted to

Interest receivable from

31 December 
2023

31 December 
2022

31 December 
2023

31 December 
2022

Electrica Furnizare S.A.

Electrica Energie Productie S.A.

Sunwind Energy S.R.L.

New Trend Energy S.R.L.

Foton Power Energy S.R.L.

80,000,000

-

230,533 

-

41,594,188

-

1,657,848

2,475,699

600,000

189,908

12,370

7,184,000 

2,400,000

316,550 

102,784

2,937,987

-

43,847

-

3,753

Green Energy Consultancy & Invest-ments S.R.L.

-

440,335

-

Total

1,368,922,686 

1,321,359,523 

19,964,063 

19,714,204

Cash-pooling system 31 December 2023:

Amount 
drawn
by 
participants

Amount 
contributed 
to by 
participants

Net position

Interest 
receivable/
(payable)

31 December 
2023

31 December 
2023

31 December 
2023

31 December 
2023

350,786,382

216,860,094

-

-

-

-

  -

350,786,382

5,470,721

216,860,094

1,518,731 

-

- 

(47,764,297)

(47,764,297)

(281,932) 

567,646,476 

(47,764,297)

519,882,179 

6,707,520 

Amount 
drawn
by 
participants

Amount 
contributed 
to by 
participants

Net position

Interest 
receivable/
(payable)

31 December 
2022

31 December 
2022

31 December 
2022

31 December 
2022

311,393,113

163,250,006 

3,002,890 

-

-

-

311,393,113

1,859,586 

163,250,006 

1,018,277 

3,002,890 

17,849 

Distributie Energie Electrica Romania S.A.

Electrica Furnizare S.A.

Electrica Energie Verde 1 S.R.L. 

Electrica Serv S.A.

Total

Cash-pooling system 31 December 2022:

Distributie Energie Electrica Romania S.A.

Electrica Furnizare S.A.

Electrica Energie Verde 1 S.R.L. 

Electrica Serv S.A.

Total

Sales/Purchases

Distributie Energie Electrica Romania S.A.

Electrica Furnizare S.A.

Electrica Serv S.A.

Electrica Energie Productie S.A.

Green Energy Consultancy & Investments S.R.L.

Electrica Energie Verde 1 S.R.L.

Sunwind Energy S.R.L.

Total

Reimbursements / Borrowings

Distributie Energie Electrica Romania S.A.

Electrica Furnizare S.A.

Electrica Energie Productie S.A.

Sunwind Energy S.R.L.

New Trend Energy S.R.L.

Green Energy Consultancy & Investments S.R.L.

Foton Power Energy S.R.L.

Total

Interest income for loans

Distributie Energie Electrica Romania S.A.

Electrica Furnizare S.A.

Electrica Energie Productie S.A.

Sunwind Energy S.R.L.

New Trend Energy S.R.L.

Green Energy Consultancy & Investments S.R.L.

Sales
in 2023

Sales
in 2022

Purchases
in 2023

Purchases
in 2022

1,886,897

208,879

15,859

185,938

2,967,606

1,314,408 

543,221 

689,704 

497,076 

91,439 

32,365

6,599

3,272

8,782 

3,339

-

-

-

1,829,184 

27,056 

-

-

-

-

-

-

-

-

5,485,254 

1,535,408 

2,388,264 

902,698 

Borrowings 
granted in 2023

Borrowings 
granted in 2022

Reimbursements 
in 2023

Reimbursements 
in 2022

-

-

80,000,000 

100,000,000 

-

47,540,173

1,875,699 

600,000

4,784,000

2,400,000

2,698,920

440,335

2,937,987

-

92,296,606 

150,980,508 

-

-

-

-

-

-

-

-

-

130,000,000 

5,945,985 

-

-

-

135,945,985 

Interest income
2023

Interest income
2022

47,972,160

47,972,160

230,533 

3,370,918 

177,538

213,766 

135,945 

43,847

1,406,254

1,711,863 

12,370

102,784

3,753

-

-

(33,187,405) 

(33,187,405) 

(244,477) 

Foton Power Energy S.R.L.

477,646,009 

(33,187,405) 

444,458,604 

2,651,235 

Total

52,144,707 

51,209,184 

NOTES TO THE SEPARATE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 20232023 ANNUAL REPORTNOTES TO THE SEPARATE FINANCIAL STATEMENTS2023 ANNUAL REPORTELECTRICA S.AFOR THE YEAR ENDED 31 DECEMBER 2023ELECTRICA S.A434

435

Cash pooling system – interest income/(expense)

Distributie Energie Electrica Romania S.A.

Electrica Energie Verde 1 S.R.L. 

Electrica Serv S.A.

Electrica Furnizare S.A.

Total

Interest income/
(expense)

2023

27,404,262

203,426 

Interest income/
(expense)
2022

18,136,075

464,479 

32. Contingencies 

(a) Contingent Assets

Litigation with National Agency of Fiscal Administration (“NAFA”)

In May 2017, after the revision of Electrica’s tax record, the tax authorities issued an enforcement order for 

additional interest and penalties of RON 39,248,818 as a result of certain tax record allocations for prior 

(2,816,408) 

(2,553,799) 

periods. Electrica SA filed a complaint with the tax authorities against the enforcement order and also filed 

18,961,026 

10,664,680

a legal action to suspend the enforced payment by the resolution of the above mentioned complaint. These 

additional interest and penalties are related to the prior enforcement orders received by Electrica SA in the 

43,752,306 

26,711,435 

prior years of RON 72,460,387. 

(d) Transactions with companies in which the state has control or significant influence

In February 2018, Electrica SA has obtained a favourable Supreme Court ruling in one of the litigations with 

NAFA, which essentially maintains into force a prior Court of Appeal decision, which is favourable for the 

The Company had sale and purchase transactions mainly with the following companies:

Company. 

Supplier

ANCOM

Others

Total

Client

Oltchim

CET Braila

Total

Client

Oltchim

CET Braila

Total

Purchases (without VAT)

Balance (including VAT)

2023

567,684

245,147

812,831

2022

31 December 2023

31 December 2022

567,684 

142,640

710,324 

141,921

1,437

143,358

141,921 

497

142,418 

Sales

Balance, gross 

Allowance 

(without VAT)

(including VAT)

(including VAT)

Balance, net

2023

-

-

-

31 December 2023

98,725,847

(98,725,847)

3,118,411

(3,118,411)

101,844,258

(101,844,258)

-

-

-

Sales

Balance, gross 

Allowance 

(without VAT)

(including VAT)

(including VAT)

Balance, net

Also, in April 2019, Electrica SA obtained another favourable decision pronounced by the Bucharest Court of 

Appeal in one of the disputes with NAFA, whereby the court obliges NAFA to correct the evidence of the tax 

receivables so that it reflects the extinction by prescription of the amount of RON 16,915,950 representing 

income tax as well as all the related accessories. Moreover, in November 2019, Electrica SA obtained one 

more favourable decision pronounced by the Bucharest Court of Appeal in one of the disputes with NAFA, 

whereby the court obliges NAFA to cancel the administrative documents issued regarding the accessory 

fiscal obligations in the amount of RON 39,248,818 and ordered the refund/ compensation of the amount 

and the correction of the tax record. Against this decision, NAFA filed an appeal, registered to the High Court 

of Cassation and Justice, with the Court term on 23 March 2022, which was finalized in favor of Electrica.

Following this final decision, the Bucharest District 1 Court reinstated another case for which, on 22 

December 2022, annulled the enforceable title for the amount of RON 39,248,818 and of all subsequent 

enforcement acts issued in connection with the forced execution and also obliged NAFA to pay the litigation 

costs in the amount of RON 19,326. Against this decision, NAFA filed an appeal on 23 February 2023.

Thus, until 31 December 2023, the Company did not recognize a provision in this respect, taking into account 

that management’s best estimate is that the Company shall be able to obtain a favourable final Court 

decision in this case.

(b) Contingent Liabilities

2022

-

-

-

98,725,847

3,118,411

101,844,258

31 December 2022

Other litigations and claims

(98,725,847)

(3,118,411)

(101,844,258)

The Company is involved in a series of litigations and claims (ie. with SAPE, ANRE, NAFA, Court of Accounts, 

claims for damages, claims over land titles, labour related litigations etc.). 

As summarised in Note 27, the Company set-up provisions for the litigations or claims for which the 

management assessed as probable the outflow of resources embodying economic benefits due to 

low chances of favourable outcomes of those litigations or disputes. The Company does not present 

information in the financial statements and did not set-up provisions for items for which the management 

assessed as remote the possibility of outflow of economic benefits.

The Company discloses, if the case, information on the most significant items of litigations or claims for 

which the Company did not set-up provisions as they relate to possible obligations that arise from past 

events whose existence will be confirmed only by the occurrence or non-occurrence of uncertain future 

NOTES TO THE SEPARATE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 20232023 ANNUAL REPORTNOTES TO THE SEPARATE FINANCIAL STATEMENTS2023 ANNUAL REPORTELECTRICA S.AFOR THE YEAR ENDED 31 DECEMBER 2023ELECTRICA S.A436

437

events not wholly within the control of the Company (ie. litigations for which different inconsistent sentences 

(b) Guarantees and pledges

were issued by the Courts, or litigations which are in early stages and no preliminary ruling was issued so 

far).

Fiscal environment

Tax audits are frequent in Romania, consisting of detailed verifications of the accounting records of 

taxpayers. Such audits sometimes take place after months, even years, from the date liabilities are 

The Company has a facility for issuing bank guarantee letters in the amount of RON 185,000,000 contracted 

from Unicredit Bank and which is used at Group level, out of which the used amount as of 31 December 

2023 is RON 139,314,062 (31 December 2022: RON 133,660,068). The maturity of the facility is on 31 December 

2031. Also, the Company issued parenting guarantees for Electrica Furnizare S.A. in total amount of RON 

247.549.722 (31 December 2022: RON 367,234,402).

established. Consequently, companies may be found liable for significant taxes and fines. Moreover, tax 

(c) Audit fees

legislation is subject to frequent changes and the authorities sometimes demonstrate inconsistency in 

interpretation of the law. Income tax statements may be subject to revision and corrections made by tax 

authorities, generally for a five-year period after they are filled in. The company was the subject of fiscal 

inspections until 31 March 2013.

The Company may incur expenses related to tax adjustments related to previous years as a result of tax 

authorities inspections and disputes. The Company’s management considers that adequate reserves were 

established in the separate financial statements for all the significant fiscal obligations, however a risk that 

the tax authorities could take different positions still persists.

(c) Transfer prices

According to the fiscal legislation, the fiscal assessment for a transaction with affiliates is based on the 

market price concept for that transaction. Based on this concept, the transfer prices must be adjusted 

in order to reflect the market prices that would have been established between the entities having no 

affiliation relation and are acting independently, based on “normal market conditions”.

Likely, verifications of the transfer prices may be done in the future by the fiscal authorities, in order to 

establish if these prices are respecting the principle of the “normal market conditions” and that the tax base 

for Romanian taxpayer is not distorted.

33. Commitments

(a) Contractual commitments

Contractual commitments as at 31 December 2023 and 31 December 2022 are as follows:

Purchase of property, plant and equipment, intangible assets and 
other maintenance and repairs services

5,955,625

-

31 December 2023

31 December 2022

Purchase of investments

Total

45,121,884

289,635,733

51,077,509

289,635,733

The audit fees for the individual financial statements were in amount of  RON 524,318 (EUR 106,000) for the 

year 2023, of which:

•  fee for the statutory standalone audit for the year ended 31.12.2023 is RON 24,732;

•  fee for the statutory standalone audit of the financial statements prepared for the special purpose of 

the merger as at 30.09.2023 is RON 242,374;.

•  fee for the statutory standalone audit of the financial statements prepared voluntarily as at 30.06.2023 is 

RON 217.642;

•  Analysis and verification services on Societatea Energetica Electrica SA transactions reported through 

current reports in accordance with the provisions of art.108 of Law no. 24/2017 is RON 39,571.

34. Subsequent events

There were no significant subsequent events at the date of signing the financial statements as at 31.12.2023.

Chief Executive Officer

Alexandru-Aurelian Chirita

Chief Financial Officer

Stefan Alexandru Frangulea

25 March 2024

NOTES TO THE SEPARATE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 20232023 ANNUAL REPORTNOTES TO THE SEPARATE FINANCIAL STATEMENTS2023 ANNUAL REPORTELECTRICA S.AFOR THE YEAR ENDED 31 DECEMBER 2023ELECTRICA S.A438

439

INDEPENDENT AUDITOR’S REPORT 
ON 2023 SEPARATE 
FINANCIAL STATEMENTS

440

441

Deloitte Audit S.R.L.  
The Mark Tower,  
82-98 Calea Griviței,  
Sector 1, 010735 
Bucharest, Romania 

T: +40 21 222 16 61 
F: +40 21 222 16 60 
www.deloitte.ro 

INDEPENDENT AUDITOR’S REPORT 

To the Shareholders, 
SOCIETATEA ENERGETICA ELECTRICA S.A. 

Report on the Audit of the Financial Statements   

Opinion 

1.  We have audited the separate financial statements of Societatea Energetica Electrica S.A. (“the Company”), with registered 

office in Bucharest, District 1, Street Grigore Alexandrescu, No. 9, identified by unique tax registration code 13267221, which 
comprise the statement of financial position as at December 31, 2023, and the statement of comprehensive income, 
statement of changes in equity and statement of cash flows for the year then ended, and notes to the financial statements, 
including material accounting policy information. 

2. 

The separate financial statements as at December 31, 2023 are identified as follows: 

•  Net assets / Equity            
•  Net profit for the financial year      

  RON  3,980.498.078  
23,940,836  
  RON  

3. 

In our opinion, the accompanying separate financial statements present fairly, in all material respects, the financial position 
of the Company as at December 31, 2023, and its financial performance and its cash flows for the year then ended in 
accordance with Ministry of Public Finance Order no. 2844/2016, with subsequent amendments, for the approval of 
accounting regulations conforming with International Financial Reporting Standards . 

Basis for Opinion 

4.  We conducted our audit in accordance with International Standards on Auditing (ISAs), Regulation (EU) No. 537/2014 of the 
European Parliament and the Council (herein after referred to as “the Regulation”) and Law 162/2017 on the statutory audit 
of annual financial statements and annual consolidated financial statements and on amending other pronouncements (herein 
after referred to as “the Law 162/2017”. Our responsibilities under those standards are further described in the Auditor’s 
Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Company in 
accordance with the International Ethics Standards Board for Accountants’ International Code of Ethics for Professional 
Accountants (including International Independence Standards) (IESBA Code), in accordance with ethical requirements 
relevant for the audit of the financial statements in Romania including the Regulation and the Law 162/2017 and we have 
fulfilled our other ethical responsibilities in accordance with these requirements and the IESBA Code. We believe that the 
audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. 

Emphasis of matter 

5.  We draw attention to Note 3 to the separate financial statements which states that Company is the parent company of 
Electrica Group and that consolidated financial statements of Electrica Group prepared in accordance with International 
Financial Reporting Standards as adopted by EU have not yet been published. Notes 3 to the separate financial statements 
explain when consolidated financial statements will be published. Our opinion is not modified in respect of this matter. 

Key Audit Matters 

6. 

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the separate 
financial statements of the current period. These matters were addressed in the context of our audit of the separate financial 
statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. 

Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited ("DTTL"), its global network of member firms, and their related entities (collectively, the "Deloitte organization"). DTTL (also 
referred to as "Deloitte Global") and each of its member firms and related entities are legally separate and independent entities, which cannot obligate or bind each other in respect of third parties. 
DTTL and each DTTL member firm and related entity is liable only for its own acts and omissions, and not those of each other. DTTL does not provide services to clients.  
Please see www.deloitte.com/about to learn more.  

1 

 Key audit matters 

Going Concern 

How our audit addressed the key audit matter 

As presented in Note 8 the separate financial statements have 
been prepared on the going concern basis. The key judgement 
leading to this conclusion are set out in that note. 

We  have  assessed  managements  valuation  of  the  going 
concern assumption by performing the following procedures:  

•  We have obtained the cash flow forecasts and 

critically challenged the management and the Board 
of Directors and Audit Committee on the assumptions 
used;        

•  We considered whether at the date of this report 

additional information exist from the Romanian 
authorities with respect to the capping mechanism;      

•  We have assessed the Company’s subsidiaries and 
Company’s position on the existing debt facilities, 
covenant compliance and newly negotiated debt 
facilities, during 2024 until the date of this report; 

•  We assessed the adequacy of the disclosure of the 

basis of going concern assumption, including the key 
judgements adopted; 

In particular the subsidiaries of the Company operate in the 
electricity distribution and supply industry which is currently 
affected by the compensation and ceiling laws on sales to end 
customers. The Romanian authorities regulatory position is 
under review and there may be further laws enacted which 
could adversely impact the subsidiaries of the Company’s 
operating cash flows. In the forthcoming twelve months the 
subsidiaries will need to obtain additional financing and given 
the position of the Group and its significance to the Romanian 
economy management expect that all necessary financing will 
be made available. 

The ability of the Company to continue as a going concern is 
dependent on the ability of its subsidiaries to continue as a 
going concern. The ability of the subsidiaries of the Company 
to continue as a going concern is dependent on successful 
completion of the new financing and on stabilizing of the 
regulatory regime on energy prices as described in note 8, which 
provides an appropriate margin to support servicing of the 
subsidiaries of the Company and Company’s short and long term 
financings. 

In view of the significant judgements the application and 
disclosures of the basis of the going concern assumption are 
considered a Key Audit Matter.  

Other information 

7. 

The administrators are responsible for the preparation and presentation of the other information. The other information 
comprises the Administrators’ report and the Remuneration Report, but does not include the separate financial statements 
and our auditor’s report thereon, or the non-financial information declaration, which is being presented in a separate report. 

Our opinion on the separate financial statements does not cover the other information and, unless otherwise explicitly 
mentioned in our report, we do not express any form of assurance conclusion thereon. 

In connection with our audit of the separate financial statements for the year ended December 31, 2023, our responsibility is 
to read the other information and, in doing so, consider whether the other information is materially inconsistent with the 
separate financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. 

Other responsibilities of reporting with respect to other information – Administrators’ report 

With respect to the Administrators’ report, we read it and report if this has been prepared, in all material respects, in 
accordance with the provisions of Ministry of Public Finance Order no. 2844/2016, with subsequent amendments, for the 
approval of accounting regulations conforming with International Financial Reporting Standards . 

On the sole basis of the procedures performed within the audit of the separate financial statements, in our opinion:  

a) 

the information included in the Administrators’ report and the Remuneration Report, for the financial year for which 
the separate financial statements have been prepared is consistent, in all material respects, with these separate 
financial statements; 

2 

INDEPENDENT AUDITOR’S REPORT ON 2023 SEPARATE FINANCIAL STATEMENTS2023 ANNUAL REPORTINDEPENDENT AUDITOR’S REPORT ON 2023 SEPARATE FINANCIAL STATEMENTS2023 ANNUAL REPORT 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
     
                          
              
  
 
 
 
 
 
 
 
 
 
 
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443

b) 

the Administrators’ report has been prepared, in all material respects, in accordance with the provisions of Ministry of 
Public Finance Order no. 2844/2016, with subsequent amendments, for the approval of accounting regulations 
conforming with International Financial Reporting Standards; 

Moreover, based on our knowledge and understanding concerning the Company and its environment gained during the audit 
on the separate financial statements prepared as at December 31, 2023, we are required to report if we have identified a 
material misstatement of this Administrators’ report and the Remuneration report. We have nothing to report in this regard.  

Other reporting responsibilities with respect to other information – Remuneration report 

With respect to the Remuneration report, we read it to determine if it presents, in all material respects, the information 
required by article 107, paragraphs (1) and (2) of Law 24/2017 regarding the issuers of financial instruments and market 
operations, republished. We have nothing to report in this regard. 

Responsibilities of Management and Those Charged with Governance for the Separate Financial Statements  

8.  Management is responsible for the preparation and fair presentation of the separate financial statements in accordance with 

Ministry of Public Finance Order no. 2844/2016, with subsequent amendments , for the approval of accounting regulations 
conforming with International Financial Reporting Standards and for such internal control as management determines is 
necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud 
or error. 

9. 

In preparing the separate financial statements, management is responsible for assessing the Company’s ability to continue as 
a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting 
unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do 
so. 

10.  Those charged with governance are responsible for overseeing the Company’s financial reporting process. 

Auditor’s Responsibilities for the Audit of the Separate Financial Statements 

11.  Our objectives are to obtain reasonable assurance about whether the separate financial statements as a whole are free from 
material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable 
assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs will always 
detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, 
individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the 
basis of these separate financial statements. 

12.  As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional skepticism 

throughout the audit. We also: 

• 

• 

• 

• 

Identify and assess the risks of material misstatement of the separate financial statements, whether due to fraud or 
error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and 
appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is 
higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, 
misrepresentations, or the override of internal control. 

Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are 
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the 
Company's internal control.   

Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related 
disclosures made by management. 

Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the 
audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant 
doubt on the Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are 
required to draw attention in our auditor’s report to the related disclosures in the separate financial statements or, if 
such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to 
the date of our auditor’s report. However, future events or conditions may cause the Company to cease to continue as 
a going concern. 

• 

Evaluate the overall presentation, structure and content of the separate financial statements, including the disclosures, 
and whether the separate financial statements represent the underlying transactions and events in a manner that 
achieves fair presentation.  

13.  We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the 
audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. 

14.  We also provide those charged with governance with a statement that we have complied with relevant ethical requirements 
regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought 
to bear on our independence, and where applicable, actions taken to eliminate threats or safeguards applied. 

15.  From the matters communicated with those charged with governance, we determine those matters that were of most 

significance in the audit of the separate financial statements of the current period and are therefore the key audit matters. 
We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or 
when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the 
adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such 
communication. 

Report on Other Legal and Regulatory Requirements  

16.  We were appointed by the General Meeting of Shareholders on April 27, 2023  to audit the separate financial statements of 
Societatea Energetica Electrica S.A. for the financial year ended December 31, 2023. The uninterrupted total duration of our 
commitment is 6 of years, covering the financial years ended December 31, 2018 and December 31, 2023. 

We confirm that: 

• 

• 

Our audit opinion is consistent with the additional report submitted to the Audit Committee of the Company that we issued 
the same date we issued this report. Also, in conducting our audit, we have retained our independence from the audited 
entity. 

No non-audit services referred to in Article 5 (1) of EU Regulation no. 537/2014 were provided. 

The engagement partner on the audit resulting in this independent auditor’s report is Razvan Ungureanu.  

Report on compliance with Law no. 162/2017 on the statutory audit of annual financial statements and annual 
consolidated financial statements and on amending other pronouncements (“Law 162/2017”), and Commission 
Delegated Regulation (EU) 2018/815 on the European Single Electronic Format Regulatory Technical Standard (“ESEF”) 

We have undertaken a reasonable assurance engagement on the compliance with Law 162/2017, and Commission Delegated 
Regulation (EU) 2018/815 applicable to the separate financial statements included in the annual financial report of Societatea 
Energetica Electrica S.A. as presented in the digital files which contain this audit report (“Digital Files”). 

(I) 

Responsibilities of Management and Those Charged with Governance for the Digital Files prepared in compliance with 
ESEF 

Management is responsible for preparing the Digital Files that comply with ESEF. This responsibility includes: 

 

 

the design, implementation and maintenance of internal controls relevant to the application of ESEF; 

ensuring consistency between the Digital Files and the separate financial statements to be submitted in accordance with 
Ministry of Finance Order 2844/2016 for the approval of accounting regulations conforming with International Financial 
Reporting Standards, with subsequent amendments. 

Those charged with governance are responsible for overseeing the preparation of the Digital Files that comply with ESEF. 

3 

4 

INDEPENDENT AUDITOR’S REPORT ON 2023 SEPARATE FINANCIAL STATEMENTS2023 ANNUAL REPORTINDEPENDENT AUDITOR’S REPORT ON 2023 SEPARATE FINANCIAL STATEMENTS2023 ANNUAL REPORT 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
444

445

(II) 

Auditor’s Responsibilities for the Audit of the Digital Files 

Our responsibility is to express a conclusion on whether the separate financial statements included in the annual financial 
report complies in all material respects with the requirements of ESEF based on the evidence we have obtained. We 
conducted our reasonable assurance engagement in accordance with International Standard on Assurance Engagements 
3000 (Revised), Assurance Engagements Other than Audits or Reviews of Historical Financial Information (ISAE 3000) issued 
by the International Auditing and Assurance Standards Board. 

Our firm applies International Standard on Quality Management 1 (“ISQM1”), and accordingly maintains a comprehensive 
system of quality control including documented policies and procedures regarding compliance with ethical requirements, 
professional standards and applicable legal and regulatory requirements. 

A reasonable assurance engagement in accordance with ISAE 3000 involves performing procedures to obtain evidence about 
compliance with ESEF. The nature, timing and extent of procedures selected depend on the auditor’s judgment, including the 
assessment of the risks of material departures from the requirements set out in ESEF, whether due to fraud or error. A 
reasonable assurance engagement includes: 

 

 

 

obtaining an understanding of the Company’s process for preparation of the digital files in accordance with ESEF, 
including relevant internal controls; 

reconciling the digital files with the audited separate financial statements of the Company to be submitted in 
accordance with Ministry of Finance Order 2844/2016 for the approval of accounting regulations conforming with 
International Financial Reporting Standards, with subsequent amendments; 

evaluating if the separate financial statements contained in the annual report have been prepared in a valid XHTML 
format. 

We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our conclusion.  

In our opinion, the separate financial statements for the year ended 31 December 2023 included in the annual financial 
report in the Digital Files comply in all materials respects with the requirements of ESEF.  

Razvan Ungureanu, Audit Partner  

For signature, please refer to the original 
Romanian version. 

Registered in the Electronic Public Register of Financial  
Auditors and Audit Firms under AF 4866 

On behalf of: 

DELOITTE AUDIT SRL 

Registered in the Electronic Public Register of Financial  
Auditors and Audit Firms under FA 25 

The Mark Building, 84-98 and 100-102 Calea Griviței, 9th Floor, District 1 
Bucharest, Romania 
March 5, 2024  

5 

INDEPENDENT AUDITOR’S REPORT ON 2023 SEPARATE FINANCIAL STATEMENTS2023 ANNUAL REPORTINDEPENDENT AUDITOR’S REPORT ON 2023 SEPARATE FINANCIAL STATEMENTS2023 ANNUAL REPORT 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
  
446

447

2023 CONSOLIDATED 
FINANCIAL STATEMENTS 
(OMFP 2844/2016) 

as at and for the year ended

31 December 2023

prepared in accordance with

OMFP no. 2844/2016

Free translation from Romanian, 
which is the official and binding version

448

449

Contents

Consolidated statement of financial position

Consolidated statement of profit or loss

Consolidated statement of comprehensive income

Consolidated statement of changes in equity

Consolidated statement of cash flows

Notes to the consolidated financial statements

Basis of preparation

1.

2.

3.

4.

Reporting entity and general information

Basis of accounting

Functional and presentation currency

Use of judgments and estimates

Accounting policies

5.

6.

7.

Basis of measurement

Accounting policies

Disclosure for the additional set of the consolidated financial statements

Performance for the year

8. Operating segments

9.

Revenue

10.

Electricity, natural gas and merchandise purchased 

11. Other income and expenses

12

Net finance result

13.

Earnings per share

Employee benefits

14

Short-term employee benefits

15.

Post-employment and other long-term employee benefits

16.

Employee benefit expenses

450

452

453

454

456

458

465

466

466

468

468

482

482

486

486

486

487

488

488

489

492

Income taxes

17.

Income taxes

Assets

18.

Trade receivables

19. Other receivables

20. Cash and cash equivalents

21.

Inventories

22. Property, plant and equipment

23.

Intangible assets

24.

Investments in associates

Equity and liabilities

25. Capital and reserves

26. Trade payables

27. Other payables

28. Provisions

29. Bank borrowings and overdrafts

Financial instruments

30. Financial instruments - Fair values and risk management

Other information

31.

Related parties

32. Contingencies

33. Commitments

34. Subsequent events

493

495

496

497

497

498

501

503

504

506

507

507

508

513

518

520

521

522

2023 CONSOLIDATED FINANCIAL STATEMENTS (OMFP 2844/2016) 2023 CONSOLIDATED FINANCIAL STATEMENTS (OMFP 2844/2016) 2023 ANNUAL REPORT2023 ANNUAL REPORT450

451

Note

31 December 

31 December 

2023

2022

Note

31 December 

31 December 

2023

2022

Non-current assets

Intangible assets related to concession arrangements

Intangible assets from the capitalization of own technological 
consumption

Other intangible assets

Goodwill

Property, plant and equipment

Investments in associates 

Other investments

Deferred tax assets

Other non-current assets

Right of use assets

Total non-current assets

Total active imobilizate

Current assets

Trade receivables

Subsidies receivable

Other receivables

Cash and cash equivalents

Inventories

Prepayments

Current income tax receivable

Assets held for sale

Total current assets

Total assets

EQUITY AND LIABILITIES

Equity

Share capital

Share premium

Treasury shares reserve

Pre-paid capital contributions in kind from shareholders

Revaluation reserve

Legal reserves

Retained earnings

Total equity attributable to the owners of the Company

Non-controlling interests

Total equity

(Continued on next page)

23

23

23

22

24

17

18

11

19

20

21

25

25

25

25

25

25

6,220,530

5,675,866

770,934

27,822

24,663

594,994

16,638

7,000

32,404

51,954

40,993

951,557

12,854

12,040

499,390

18,824

7,000

30,180

2,393

52,152

Liabilities

Non-current liabilities

Lease liability – long term

Deferred tax liabilities

Employee benefits

Other payables

Long-term bank borrowings

Total non-current liabilities

Current liabilities

Current portion of long-term bank borrowings

7,787,932

7,262,256 

Lease liability – short term

Bank overdrafts

Trade payables

Other payables

Deferred revenue

Employee benefits

Provisions

Current tax liabilities

Total current liabilities

Total liabilities

17

15

27

29

29

29

26

27

14,15

28

29,143

244,666

151,358

37,161

794,348

34,462

212,555 

117,269

72,432

647,193

1,256,676

1,083,911

523,294

14,052

2,851,221

1,671,478

1,035,084

7,837

120,548

41,167

13,924

6,278,605

7,535,281

113,520

19,211

2,571,037

1,407,097

867,536

24,750

114,174

53,701

1,129

5,172,155

6,256,066

Total equity and liabilities 

13,542,830

11,623,312

The accompanying notes are an integral part of these consolidated financial statements.

Chief Executive Officer

Alexandru-Aurelian Chirita

Chief Financial Officer

Stefan Alexandru Frangulea

25 March 2024

2,540,442

2,614,535

93,832

377,215

115,659

12,935

-

280

2,466,002

1,280,788

 127,253

 334,887

 113,972

13,874

24,000

280

5,754,898

4,361,056

13,542,830

11,623,312

3,464,436

103,049

(75,372)

7

159,536

449,363

1,906,981

6,008,000

(451)

 3,464,436

 103,049

 (75,372)

7

 92,117

 429,583

 1,353,942

 5,367,762 

(516)

6,007,549

 5,367,246

CONSOLIDATED STATEMENT OF FINANCIAL POSITION (OMFP 2844/2016)AS AT 31 DECEMBER 20232023 ANNUAL REPORTCONSOLIDATED STATEMENT OF FINANCIAL POSITION (OMFP 2844/2016)2023 ANNUAL REPORTELECTRICA S.AAS AT 31 DECEMBER 2023ELECTRICA S.A452

453

Note

2023

2022

Note

2023

2022

9,816,593

18,617

3,498,553

10,009,896

989,291

2,840,963

Profit for the year 

Other comprehensive income

(9,057,976)

(10,506,809)

Items that will not be reclassified to profit or loss

9

11

10

23

16

22,23

18,19

11

12

12

24

17

Revenue

Capitalised costs of intangible non-current assets

Other income

Electricity, natural gas and merchandise purchased

Construction costs related to concession agreements

Employee benefits

Repairs, maintenance and materials 

Depreciation and amortization

Impairment for trade and other receivables, net

Other operating expenses

Operating profit

Finance income

Finance costs

Net finance cost

Share of results of associates

Profit before tax

Income tax expense

Profit for the year

Profit for the year attributable to:

- owners of the Company

- non-controlling interests

Profit for the year 

(976,436)

(962,065)

(95,218)

(723,721)

(75,820)

(431,399)

1,011,128

3,425

(297,220)

(293,795)

(593,490)

(823,422)

(88,229)

(533,987)

(112,311)

(352,971)

828,931

9,718

(174,713)

(164,995)

(39)

(13)

717,294

(96,914)

620,380

620,494

(114)

620,380

663,923 

(105,078) 

558,845 

558,954 

(109)

558,845 

Revaluation of property, plant and equipment

Tax related to revaluation of property, plant and equipment

Re-measurements of the defined benefit liability 

Tax related to re-measurements of the defined benefit liability

22

17

15

17

Other comprehensive income, net of tax

Total comprehensive income

Total comprehensive income attributable to:

- owners of the Company

- non-controlling interests

Total comprehensive income

The accompanying notes are an integral part of these consolidated financial statements.

620,380

558,845

85,510

(13,699)

(11,918)

1,907

61,800

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9,503

(1,479)

8,024

682,180

566,869 

682,294

(114)

682,180

566,978  

(109)

566,869 

Chief Executive Officer

Alexandru-Aurelian Chirita

Chief Financial Officer

Stefan Alexandru Frangulea

Earnings per share

Basic and diluted earnings per share (RON)

13

1.83

1.65

25 March 2024

The accompanying notes are an integral part of these consolidated financial statements.

Chief Executive Officer

Alexandru-Aurelian Chirita

Chief Financial Officer

Stefan Alexandru Frangulea

25 March 2024

CONSOLIDATED STATEMENT OF PROFIT OR LOSS (OMFP 2844/2016)FOR THE YEAR ENDED 31 DECEMBER 20232023 ANNUAL REPORTCONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (OMFP 2844/2016)2023 ANNUAL REPORTELECTRICA S.AFOR THE YEAR ENDED 31 DECEMBER 2023ELECTRICA S.A-

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CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (OMFP 2844/2016)FOR THE YEAR ENDED 31 DECEMBER 2023RAPORT ANUAL 2023CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (OMFP 2844/2016)RAPORT ANUAL 2023ELECTRICA S.AFOR THE YEAR ENDED 31 DECEMBER 2023ELECTRICA S.A 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
456

457

Note

2023

2022

Note

2023

2022

Revaluation of property, plant and equipment recognized in profit or 
lox, net

22

(2,081)

Cash flows from operating activities

Profit for the year

Adjustments for:

Depreciation 

Amortisation

Capitalised costs of intangible non-current assets

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intangible assets, net

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assets 

Impairment of trade and other receivables, net

Change in provisions, net

Net finance cost

Changes due to employee benefits

Share of loss of associates

Income tax expense

Changes in:

Trade receivables

Subsidies receivable

Other receivables

Prepayments

Inventories

Trade payables

Other payables

Provisions and employee benefits

Deferred revenue

Cash used in operating activities

Interest paid

Income tax paid

Net cash flow used in operating activities

(Continued on next page)

620,380

558,845

22

23

23

22,23

16,391

707,330

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Cash flows from investing activities

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Payments for network construction related to concession 
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Interest received

Acquisition of investments in associates

Payments for acquisition of subsidiaries, net of cash acquired

Payments for non-controlling interest acquired without change in 
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Cash flows from financing activities

Proceeds from long-term bank borrowings

Proceeds from overdrafts

Repayment of long-term bank loans

Payment of lease liabilities

Dividends paid

Net cash generated from financing activities

(10,391)

(8,295)

23

(845,331)

 (537,782)

(21,313)

232

3,270

(4,149)

(6,308)

(1,924)

(7,829)

614

2,847

(3)

(4,452)

-

(885,914)

(554,900)

742,658

271,943

(187,730)

(26,762)

(40,136)

759,973

42,328

334,887

-

377,215

217,561

1,900,371

(92,925)

(24,163)

(152,291)

1,848,553

113,057

(405,572)

627,402

334,887

24

29

29

25

20

20

20

5,636

939

(1,687)

244,355

110,399

28,545

(16,913)

505,724

(138,335) 

(8,840)

(41,014)

 494,611

722,407 

 (6,454)

 15,088

Net increase in cash and cash equivalents

Cash and cash equivalents at 1 January

Reclassification of overdrafts previously presented as cash and 
cash equivalents

Cash and cash equivalents at 31 December 

The accompanying notes are an integral part of these consolidated financial statements.

(1,029,967)

TThe non-cash transactions are disclosed in Note 20.

(278,462)

(58,993)

 (149,397)

 (1,232)

168,269

(1,180,596)

Chief Executive Officer

Alexandru-Aurelian Chirita

Chief Financial Officer

Stefan Alexandru Frangulea

25 March 2024

CONSOLIDATED STATEMENT OF CASH FLOWS (OMFP 2844/2016)FOR THE YEAR ENDED 31 DECEMBER 20232023 ANNUAL REPORTCONSOLIDATED STATEMENT OF CASH FLOWS (OMFP 2844/2016)2023 ANNUAL REPORTELECTRICA S.AFOR THE YEAR ENDED 31 DECEMBER 2023ELECTRICA S.A458

459

1. Reporting entity and general information 

(a) General information about the Group

These financial statements are the consolidated financial statements of Societatea Energetica Electrica S.A. 

(“the Company” or “Electrica SA”) and its subsidiaries (together “the Group”) as at and for the year ended 31 

December 2023. 

The registered office of the Company is no. 9, Grigore Alexandrescu Street, District 1, Bucharest, Romania. The 

Company has sole registration code 13267221 and Trade Register registration number J40/7425/2000.

As at 31 December 2023 and 31 December 2022, the major shareholder of Societatea Energetica Electrica S.A. 

is the Romanian State, represented by the Ministry of Energy with a share of ownership of 48.79% from the 

share capital.

The Company’s shares are listed on the Bucharest Stock Exchange and the global depository receipts 

(“GDRs”) are listed on the London Stock Exchange. The shares traded on the London Stock Exchange are the 

Subsidiary

Activity

registration 

Head Office

% shareholding 

code

Sole 

Electrica Producție Energie 
S.A.(“EPE”)

Electrica Energie Verde 1 SRL* 
(“EEV1” – formerly Long Bridge 
Milenium SRL)

Electricity generation

44854129

Bucuresti

99.9920%

Electricity generation

19157481

Bucuresti

100%*

Sunwind Energy S.R.L.

Electricity generation

New Trend Energy S.R.L.

Electricity generation

42910478

Constanta

42921590

Constanta

Green Energy Consultancy & 
Investments S.R.L.

Electricity generation

29172101

Prahova

Foton Power Energy S.R.L.

Electricity generation

43652555

Constanta

60%

60%

75%

30%

global depositary receipts, one global depositary receipt representing four shares. The Bank of New York 

* 

Indirect ownership - Electrica Energie Verde 1 SRL is 100% owned by the subsidiary Electrica Furnizare S.A.

Mellon is the depositary bank for these securities. 

As at 31 December 2023 the Company’s subsidiaries are the following: 

**   On 31.12.2023 the merger by absorption took place between Societatea Energetica Electrica SA (ELSA) as absorbing company and 

Societatea Electrica Productie Energie SA (EPE), Electrica Energie Verde 1 SRL (EEV1) and Green Energy Consultancy & Investments SRL 
(GECI) as absorbed companies. 

Sole 

As at 31 December 2023 and 31 December 2022, the Company’s associates are the following:

Subsidiary

Activity

registration 

Head Office

% shareholding 

Distributie Energie Electrica 
Romania S.A. (“DEER”)

Electricity distribution in 
geographical areas Transilvania 
Nord, Transilvania Sud and 
Muntenia Nord

code

14476722

Cluj-Napoca

99.99999929%

Electrica Furnizare S.A. (“EFSA”)

Electricity and natural gas supply

28909028

Bucuresti

99.9998444099934%

Electrica Serv S.A. (“SERV”)

Services in the energy sector 
(maintenance, repairs, 
construction)

Sunwind Energy S.R.L.

Electricity generation

New Trend Energy S.R.L.

Electricity generation

Foton Power Energy S.R.L.

Electricity generation

17329505

Bucuresti

99.99998095%

42910478

Bucuresti

42921590

Constanta

43652555

Constanta

100%

60%

60%

As at 31 December 2022 the Company’s subsidiaries are the following: 

Subsidiary

Activity

registration 

Head Office

% shareholding 

Sole 

Distributie Energie Electrica 
Romania S.A. (“DEER”)

Electricity distribution in 
geographical areas Transilvania 
Nord, Transilvania Sud and 
Muntenia Nord

code

14476722

Cluj-Napoca

99.99999929%

Associate

Activity

registration 

code

Sole 

Head 

Office

% shareholding 

% shareholding 

as at 31 

as at 31 

December 2023

December 2022

Crucea Power Park 
S.R.L.

Electricity generation

25242042

Constanta

40%

30%

Changes in Group structure during 2023

31 December 2022 the project was acquired 60%. 

Sunwind Energy develops the photovoltaic project 

Acquisition of shares in subsidies

“Satu Mare 2”, with an installed capacity of 27 MW. The 

project is in the “ready-to-build” phase and is located 

IOn 6 February 2023, Electrica completed the 

in the vicinity of Botiz commune, Satu Mare county. 

acquisition of Green Energy Consultancy & 

Also, the Financing Contract was signed between 

Investments S.R.L., having as main object of activity 

Sunwind Energy SRL as the Beneficiary and the Ministry 

the production of energy from photovoltaic sources. 

of Energy as the coordinator of reforms and/or 

Until 31 December 2022 the company was acquired 

investments for the National Recovery and Resilience 

75%. Green Energy Consultancy & Investments S.R.L. 

Plan (NRRP). 

develops the photovoltaic project “Vulturu”, with a 

designed installed capacity of 12 MWp DC (peak power 

On 31 July 2023, Electrica acquired an additional 30% of 

at the panels level) and 9.75 MW AC (authorised power 

the shares and voting interests in Foton Power Energy 

for delivery into the grid), located near Vulturu locality, 

S.R.L.,having as main object of activity the production 

Vrancea county. The project is in the “ready-to-build” 

of energy from photovoltaic sources. As a result, the 

phase.

Group’s equity interest increased from 30% to 60%, 

thus, Foton Power Energy S.R.L. becoming a subsidiary 

Electrica Furnizare S.A. (“EFSA”)

Electricity and natural gas supply

28909028

Bucuresti

99.9998444099934%

On 24 March 2023, Electrica completed the acquisition 

of Electrica Group. Foton Power Energy S.R.L. develops 

Electrica Serv S.A. (“SERV”)

Services in the energy sector 
(maintenance, repairs, 
construction)

17329505

Bucuresti

99.99998095%

of Sunwind Energy S.R.L, which has as its main activity 

the photovoltaic project “Bihor 1”, with a projected 

production of energy from photovoltaic sources. Until 

installed capacity of 77.5 MW, located near Oradea

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (OMFP 2844/2016)FOR THE YEAR ENDED 31 DECEMBER 20232023 ANNUAL REPORTNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (OMFP 2844/2016)2023 ANNUAL REPORTELECTRICA S.AFOR THE YEAR ENDED 31 DECEMBER 2023ELECTRICA S.A460

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Acquisition of shares in associates

and serves over 3.93 million users. It invoices the 

amendment is introduced by Law no. 184/2018). The 

Regarding the costs of electricity purchased for own 

electricity distribution service to electricity suppliers 

postponed green certificates will be reinserted starting 

technological consumption (“NL”):

IOn 15 May 2023, Electrica acquired an additional 10% 

(mainly to Electrica Furnizare S.A. subsidiary) which 

from 1 January 2021, in equal monthly tranches until 31 

of the shares and voting interests in Crucea Power Park 

further invoices the electricity consumption to final 

December 2030.

S.R.L.. As a result, the Group’s equity interest increased 

consumers.

from 30% to 40%.

Electrica Furnizare S.A. is active on both the 

(b)  Regulations in the energy sector

Merger by absorption within the Group

competitive market and as the supplier of last resort 

Regulatory environment

for approx. 3.4 million clients. Electrica Furnizare S.A. 

On 20 December 2023, the Extraordinary General 

holds an electricity supply license that covers the 

The activity in the energy sector is regulated by the 

•  ANRE has the right to correct the projection 

of distribution tariffs for a regulatory period 

or for one year, if there have been significant 

variations in prices on the electricity market, 

which lead to an important change in 

distribution service costs; 

Meeting of the Company’s Shareholders (EGMS) 

entire territory of Romania, which was extended in 2021 

Romanian Energy Regulatory Authority.

•  at the justified request of the Distribution 

approved the merger by absorption between 

for a period of 10 years. At the same time, Electrica 

Operator, the regulated revenue of year t + 1 

Societatea Energetica Electrica SA (“ELSA”), Societatea 

Furnizare S.A. ensures the supply of electricity for 

Some of the main responsibilities of ANRE are to 

may include a cost adjustment of regulated 

Electrica Productie Energie SA (“EPE”), Electrica Energie 

household customers in a universal service regime. At 

approve prices and tariffs and to issue substantiation 

network losses (“NL”) forecast for year t + 1, by 

Verde 1 SRL (“EEV1”) and Green Energy Consultancy & 

the same time, it also holds a license for carrying out 

methodologies used to set regulated prices and tariffs.

changing the reference price, depending on 

Investments SRL (“GECI”) (together the „Companies”) 

the activity of natural gas supply, valid until 2032. In 

and the participation of the Companies in the merger, 

2023, Electrica Furnizare S.A. was designated supplier 

Electricity distribution

with Societatea Energetica Electrica SA as absorbing 

of last resort („FUI”) for electricity in May and October, 

the evolution of prices on the electricity market 

and the result of the analysis of the evolution of 

tariffs for the current regulatory period.

company, Electrica Productie Energie SA, Electrica 

and for natural gas it was nominated supplier of last 

In 2019, a new regulatory period began, governed 

Energie Verde 1 SRL and Green Energy Consultancy 

resort in April and November 2023.

by the provisions of ANRE Order no. 169/2018 for the 

In 2022, according to the Government’s emergency 

& Investments SRL as absorbed companies, with the 

approval of the Methodology for establishing the tariffs 

ordinance (GEO) no. 119/2022, the additional costs for 

effective date of the merger being 31 December 2023.

Through the acquisition of the new subsidiary Electrica 

for the electricity distribution service (IV regulatory 

purchased electricity (determined as the difference 

Group’s main activities

S.R.L.) as of 31 August 2020, establishment of a new 

legal entity Electrica Productie Energie S.A. and also 

Energie Verde 1 S.R.L. (formerly Long Bridge Milenium 

period: 2019-2023).

The following items are considered by ANRE 

1 January 2022 and 31 August 2023, in order to cover 

between the realized costs and the costs included 

in the approved distribution tariffs), made between 

The activities of the Group include operation and 

the five shares sales and purchase agreements in 

when setting the target revenue for one year 

the own technological consumption, compared 

construction of electricity distribution networks and 

five project companies having as main activity the 

of the regulatory period: controllable and non-

to the costs included in the tariffs regulated (and 

electricity and natural gas supply to final consumer 

production of energy from renewable sources the 

controllable operating and maintenance costs; 

not only borrowings), are capitalized quarterly and 

as well as energy production from renewable sources. 

Group entered on the electricity generation segment, 

costs of electricity purchased for own technological 

remunerated with 50% of the regulated rate of 

The Group is the electricity distribution operator 

in particular from renewable sources. Currently, one 

consumption (related to distribution network); 

return (RRR) approved by ANRE, applicable during 

and the main electricity supplier in Muntenia Nord 

of the project companies has been absorbed through 

regulated depreciation charge; the return on the 

the amortization period of the respective costs and 

area (Prahova, Buzau, Dambovita, Braila, Galati and 

merger by the parent company where a photovoltaic 

regulated assets base (“RAB”); revenues from reactive 

are recognized as a distinctive component in the 

Vrancea counties), Transilvania Nord area (Cluj, 

park with a capacity of 12 MW is being developed.

energy and revenues from other activities, as well as 

regulated tariffs, called the component related to 

Maramures, Satu Mare, Salaj, Bihor and Bistrita 

corrections from previous periods.

Nasaud counties) and Transilvania Sud area (Brasov, 

Through the merger that took place on 31 December 

additional costs with NL. Also, ANRE elaborated the 

Methodological norms regarding the recognition in 

Alba, Sibiu, Mures, Harghita and Covasna counties), 

2023 between the parent company and its former 

Starting with 13 May 2020, the regulated rate of return 

the tariffs of the additional costs with the acquisition of 

operating with transformation station and 0.4 kV to 110 

subsidiary, Electrica Energie Verde 1 S.R.L., Electrica 

(„RRR”) of RAB is 6.39% to which is added:

electricity for covering the network losses compared to 

kV power lines. 

SA became a producer of electricity from renewable 

sources that operates a photovoltaic park in Stanesti, 

The Company’s distribution subsidiary, Distributie 

Giurgiu county, with an installed capacity of MW 

Energie Electrica Romania S.A. which resulted 

7.5 (operating capacity limited MW to 6.8). In 2023 

from the merger through absorption of the three 

the operation of the plant was continuous, with no 

distribution subsidiaries Societatea de Distributie a 

significant events leading to production shutdowns, 

Energiei Electrice Transilvania Nord S.A., Societatea 

producing in total MWh 9,599 (2022: MWh 10,466). 

de Distributie a Energiei Electrice Muntenia Nord S.A. 

According to Law no. 220/2008 and based on the 

and Societatea de Distributie a Energiei Electrice 

accreditation issued by ANRE, Stanesti park receives 

Transilvania Sud S.A. now operates electric lines in 

a number of 6 green certificates (“GC”) for each MWh 

18 counties, from three geographical areas of the 

produced and delivered, of which until 2020, 4 GC 

country, representing 40.7% of the Romanian territory, 

were issued for trading and 2 GC were postponed (the 

•  1% incentive for new investments in RED, 

approved by ANRE;

•  2% incentive for investments in the electricity 

distribution network financed from own funds in 

projects in which European non-reimbursable 

funds are also attracted, if the investments are 

performed and put into function by operators 

after 1 February 2021, approved by ANRE;

•  1% incentive for investments in projects of 

common interest (PIC), approved by ANRE.

the costs included in the regulated tariffs, the purpose 

of these norms is to establish the substantiation 

of additional costs with the purchase of electricity 

to cover the NL, as well as the conditions for their 

recognition in the regulated income, based on 

which the distribution tariffs are established. Law no. 

357/2022 regarding the approval of GEO no. 119/2022 

provides for the capitalization of additional costs with 

the purchase of electricity made between 1 January 

2022 and 31 March 2025.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (OMFP 2844/2016)FOR THE YEAR ENDED 31 DECEMBER 20232023 ANNUAL REPORTNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (OMFP 2844/2016)2023 ANNUAL REPORTELECTRICA S.AFOR THE YEAR ENDED 31 DECEMBER 2023ELECTRICA S.A462

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According to the Government’s Emergency Ordinance 

changes, except the capitalised costs with own 

Competitive market 

(“GEO”) no. 153/2022 during the period 1 January 2023 – 

technological consumption. The difference between 

•  The obligation to store natural gas was 

calculated by ANRE according to two criteria: 

31 March 2025 is established the centralized electricity 

the purchase price of electricity for own technological 

Transactions on the competitive wholesale market 

the obligation of all suppliers to store a quantity 

purchasing mechanism, OPCOM being designated 

consumption versus the ex-ante purchase price 

are transparent, public, centralised and non-

of gas that covers 90% of Romania’s storage 

the sole purchaser. The distribution operators (“OD”) 

recognized by ANRE in the related regulated tariffs 

discriminatory. Participants to the wholesale market 

capacity and the market share that each 

will buy from OPCOM through an annual/monthly 

2022 related to the purchase of electricity and 

can trade electricity based on the bilateral contracts 

supplier has had it in 2022; 

mechanism at least 75% of the quantity forecasted 

natural gas, made between 1 January 2022 and 31 

concluded on the dedicated markets.

and validated by National Authority for Energy 

March 2025, in order to cover the own technological 

•  The obligation of natural gas producers to sell 

Regulation (“ANRE”) at the price of 450 RON/MWh, 

consumption (NL) for economic operators for energy 

The following support mechanisms have been put in 

at the price of 150 RON/MWh the necessary 

and the producers will sell to OPCOM through annual/

transport and distribution services are capitalised. 

place:

monthly mechanism 80% of the quantity forecasted 

These are recognized as a distinctive component in 

quantities to the suppliers of domestic 

customers/heat energy producers.

and validated by ANRE and Transelectrica at the price 

the regulated tariffs, named component related to 

•  compensation of household consumers for part 

of 450 RON/MWh.

additional network losses costs. Also, law no. 357/2022 

of the costs incurred by the electricity invoices  

•  The mechanism provides - OPCOM, as sole 

In 2023 ANRE amended the Methodology for setting 

the capitalization of additional costs with the purchase 

(electricity producers with an installed power 

tariffs for the electricity distribution service, by ANRE 

of electricity made between 1 January 2022 and 31 

•  capping the selling price for household and  

equal to or greater than 10 MW) and sells the 

regarding the approval of GEO no. 119/2022 provides for 

(1 November 2021 until 31 March 2022);

acquirer, buys electricity from producers 

Order no. 79/2023 (Order) and defined 2024 as the 

March 2025.

transition period from the fourth regulatory period 

(PR4) to the fifth regulatory period (PR5). Thus, for DEER, 

Electricity and natural gases supply

in 2024 the zonal distribution tariffs established on 

non-household consumers (1 November 2021 – 

purchased electricity to electricity suppliers 

31 March 2025);

that have contracts with final customers, the 

transmission system operator electricity and 

•  exemption (1 November 2021 until 31 January 

distribution system operators electricity to 

the basis of a single regulated revenue and single NL 

The regulatory framework has undergone significant 

2022) of several types of non-household 

cover their own technological consumption; the 

targets for the total DEER are maintained.

changes over the past decade, including the 

consumers from payment of regulated tariffs 

price paid by OPCOM to electricity producers, 

Tariff adjustments

the separation of supply and distribution activities, the 

liberalization of electricity and natural gas markets, 

and other taxes/contributions.

for the quantities of electricity sold by them 

is 450 RON/MWh and the sale price of OPCOM 

implementation of the support scheme for renewable 

The amounts compensated will be received from the 

to the economic operators is also 450 RON/

Annually, ANRE makes revenue corrections due to: 

energy, the support of electricity prosumers and the 

National Agency for Payments and Social Inspection 

MWh (OPCOM has the right to charge market 

change in the quantities of electricity distributed 

capping of prices to final customers.

for household consumers and a from the Ministry of 

participants tariffs/commissions at the level of 

compared to the forecast; change in quantities and 

Energy for non-household consumers. (for further 

costs recorded by organizing the centralized 

acquisition price for the regulated own technological 

In 2022 the electricity market was completely 

details please refer to Note 18).

consumption compared to the forecast; the annual 

liberalized for all categories of customers and the 

electricity purchase mechanism); In order to 

carry out the transactions, OPCOM shall organize 

change in controllable operating and maintenance 

price was established by suppliers through free market 

Over 2023, several changes have been brought to the 

an annual procurement procedure as well as an 

costs, realized and accepted against the forecast; 

mechanisms, both for universal service offers and for 

legislation, having a significant impact on the supply of 

additional procurement procedure each month 

annual change in uncontrollable operating and 

the offers related to the competitive market. 

electricity, as follows:

maintenance costs compared to the forecast; 

changes in revenues from reactive energy compared 

Regulated market

to the forecast; failure to meet/exceeding the 

•  Price capped for electricity for household and 

electricity quantities are firm obligations of 

non-domestic customers according to GEO no. 

electricity producers and economic operators 

for the quantities of electricity to be delivered 

in the following month; annual and monthly 

approved investments programme; revenues 

Starting with 1 November 2021, in the context of the 

27/2022, with subsequent amendments and 

and are evenly distributed across all settlement 

generated from other operations made by the 

increase in prices for the electricity and natural gas 

additions

distribution operator and the quantity of electricity 

markets at international and national level, the energy 

intervals each month (contracts are concluded 

by signing, within maximum 3 working days.

recovered from recalculations.

crisis, as well as the effects caused by these increases 

•  The limitation of the average purchase price 

among the population, in Romania, a series of support 

considered for determining the amounts to 

The categories of customers to whom the electricity 

The regulator establishes through the regulated 

measures for electricity and natural gas customers 

be recovered from the state budget initially to 

price capped applies in 2023: 

income and tariffs for the following year taking into 

have been applied, by establishing compensation and 

1,300 RON/MWh; and currently at 900 RON/MWh 

account the justified corrections presented above, 

capping schemes between 1 November 2021 and 31 

(according to Law no. 206/2023, which approves 

•  household customers (tranche <100 KWh/

which are added algebraically to the income for the 

March 2025.

following year. The group does not recognize assets 

and liabilities resulting from regulation in relation 

to these deficits or surpluses, as the differences 

are recovered or returned through the annual tariff 

GEO 153/2022), except of the purchase intended 

month - maximum price 0.68 lei/KWh, tranche 

for supply as a last resort, where this limitation 

100-300 KWh/month - with the distinct estimate 

does not apply;

of the volume exceeding 255 KWh/month - 

respectively the price level capped at 0.800 lei/

KWh and with a maximum price of 1.3 lei/KWh.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (OMFP 2844/2016)FOR THE YEAR ENDED 31 DECEMBER 20232023 ANNUAL REPORTNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (OMFP 2844/2016)2023 ANNUAL REPORTELECTRICA S.AFOR THE YEAR ENDED 31 DECEMBER 2023ELECTRICA S.A464

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•  non-household customers - divided separately 

it started injecting electricity into the network), for a 

According to EGO 119/2022 and ANRE regulations, the 

The Group actively reviews and implements policies 

into the category of customers benefiting 

period of 15 (fifteen) years, 6 (six) green certificates 

capitalised costs of intangible non-current assets are 

and strategies to recover from the loss generated by 

from capping for 85% of consumption with 

for each MWh of electricity produced and delivered 

recorded in the accounting records and therefore on 

the increase in energy price, strategies which mainly 

a price capped at 1 leu/KWh, category of 

to the grid, out of which, for the period  1 July 2013 – 31 

the annual financial statements according to OMFP 

aim in revising the method of generating the selling 

customers benefiting from capping for 100% of 

December 2020, according to Law 23/2014 and Law 

2844/2016 with the instructions developed by the 

price for final consumers, concluding agreements 

consumption, price capped at 1 leu/KWh and the 

184/2018, 2 (two) green certificates were postponed 

Ministry of Finance. ANRE will determine the recognized 

with specific clauses ensuring new financing facilities, 

rest of the companies at a maximum price of 

from trading. Those two GC postponed from trading 

annual amounts of the capitalized costs based on 

closely monitoring suppliers and consumers payment 

1.300 lei/KWh.

are to be recovered in equal monthly tranches starting 

the quantities and prices recognized for NL, and by 15 

terms, monitoring daily cash flow and forecasted 

from 1 January 2021 until 31 December 2030. 

March of the year immediately following the year of 

cash flow. The Group continues to closely monitor the 

The categories of customers to whom the natural gas 

capitalization of the additional costs, ANRE will transmit 

macroeconomic outlook and as additional information 

price capped applies in 2023: 

The green certificates issued by Transelectrica for the 

to the distribution operators the recognized annual 

will be available, their effects on the activity of Group 

production made by the Stanesti photovoltaic park, 

amounts of the capitalized costs for the previous 

companies and over the financial results will be 

•  household customers – the maximum price is 

during the validity period of the accreditation decision 

year. The computation of the capitalized amounts is 

analyzed.

capped at 0.310 lei/KWh;

issued by ANRE, can be traded, according to GEO 

carried out in compliance with the legislation specific 

24/2017, until 31 March  2032, respectively including the 

to the entities that are the subject of GEO 119/2022, with 

Geopolitical tensions

•   non-household customers - the maximum 

period after the expiration of the validity period of the 

subsequent additions and changes.

price is capped at 0.370 lei/KWh for an annual 

accreditation decision (31 January 2028 in the case of 

In February 2022 global geopolitical tensions 

consumption of up to 50 GWh.

the Stanesti photovoltaic park). 

The changes brought by EGO 119/2022 are changes the 

significantly escalated following military interventions 

recuperation of the additional cost of NL by splitting it 

in Ukraine by the Russian Federation. As a result 

The compensated amounts are settled by the National 

Increase in Energy price impact 

in current operating expenses (“OPEX”) and capitalised 

of these escalations, economic uncertainties in 

Agency for Payments and Social Inspection („ANPIS”) 

costs (“CAPEX”), there is a portion of unit costs 

energy and capital markets have increased, with 

for household consumers and by the Ministry of Energy 

The regulatory framework in the electricity sector has 

recuperated at cost at 450 RON/MWh (ex-ante tariffs 

global energy prices expected to be highly volatile 

for non-household consumers.

undergone significant changes in the last decade, 

recognition) and for the difference above this level 

for the foreseeable future.  As at the date of these 

regarding the total liberalization of the electricity and 

of 450 RON/MWh up to the effective average price, 

consolidated financial statements, management 

Green certificates

natural gas market, the implementation of the support 

recognized by ANRE, there is a linear depreciation over 

is unable to reliably estimate the effects on the 

Electricity suppliers have a legal obligation to purchase 

consumers, the limitation of prices for final consumers 

of Return (RRR). These changes are also applicable to 

consequence on the business, operations, and 

scheme for renewable energy, the support of electricity 

5 years stipulated with return at 50% of Regulated Rate 

Groups financial outlook and cannot exclude adverse 

green certificates from producers of electricity from 

and the capitalization of additional costs with own 

the year 2023.

For the supply segment, both in 2023 and in 2022 the 

and growth of the Group’s business in the current 

financial position. Management believes it is taking all 

the necessary measures to support the sustainability 

renewable sources, based on annual targets or 

technological consumption.

quotas set by law, which are applied to the quantity of 

electricity purchased and supplied to final consumers. 

As a result, for the distribution segment, 

effect of retail prices for electricity was covered as 

circumstances and that judgements used in these 

The cost of green certificates is invoiced to final 

Romanian Regulatory Authority for Energy – ANRE 

grants received from the state authorities, as a result 

financial statements remain appropriate.

consumers separately from the tariffs for electricity.

(https://www.anre.ro/) has to adopt similar measures 

of the application of the mechanism of capping the 

Electricity generation

Green certificates

through its Order 129/12.10.2022 approving the 

prices for electricity and natural gas, as a result of the 

2  Basis of accounting

Methodological Norms regarding the recognition in 

application of Ordinance 27/2022, with subsequent 

the tariffs of the additional costs with the acquisition of 

amendments and additions. The implementation 

These annual consolidated financial statements 

electricity for covering the network losses compared to 

method of these schemes and the settlement 

have been prepared in accordance with OMFP no. 

the costs included in the regulated tariffs, carried out 

mechanism of the amounts granted as support to 

2844/2016. The consolidated financial statements were 

Producers of electricity from renewable energy sources 

between 1 January 2022 – 31 March 2025. 

clients, ex post from the state budget to the electricity 

authorized for issue by the Board of Directors on 05 

(RES) have the right, according to Law no. 220/2008, 

suppliers, have generated constraints in terms of cash 

March 2024 and will be submitted for shareholders’ 

to receive a certain number of green certificates, 

This change in energy sector has generated last 

flow, as well as uncertainties regarding the recovery 

approval in the meeting scheduled on 25 April 204.

depending on the technology used (for example: 

year a new reporting requirement for an accounting 

the full amount of the respective amounts by the 

hydraulic, wind, solar, geothermal, biomass, bioliquids, 

treatment in place to cover own technological 

suppliers. In this context, EFSA has adapted its medium 

These consolidated financial statements are not in 

biogas), for each MWh produced and delivered to the 

consumption and it was updated in the OMFP 

and long-term strategy, so as to manage the impact 

compliance with IFRS-EU.

network and for a certain period of time, depending on 

2844/2016 i.e. it now allows the capitalization of 

of these measures on the company’s activities in a 

the degree of novelty of the group/power plant.

such additional costs related to own technological 

responsible and sustainable manner in the context 

Starting with the consolidated financial statements 

consumption („NL”) as intangible asset which has to 

of a regulatory framework that has seen numerous 

as at and for the year ended 31 December 2022 

Starting from February 2013, the Stanesti photovoltaic 

be depreciated linearly over next 5 years (please see 

successive and major changes in the recent period.

the Group’s financial statements prepared in 

park has the right to receive (the month from which 

note 6 and 23). 

accordance with the Order of Ministry of Public 

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (OMFP 2844/2016)FOR THE YEAR ENDED 31 DECEMBER 20232023 ANNUAL REPORTNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (OMFP 2844/2016)2023 ANNUAL REPORTELECTRICA S.AFOR THE YEAR ENDED 31 DECEMBER 2023ELECTRICA S.A466

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Finances 2844/2016 included the capitalization of 

Revenue recognition

The control or regulation referred to in condition (a) 

(b) Assumptions and estimation uncertainties 

the additional costs with the purchase of electricity 

could be by contract or otherwise (such as through a 

made between 1 January 2022 and 31 March 2025, in 

The Group assesses its revenue arrangements 

regulator). The activities of the electricity distribution 

Information about assumptions and estimation 

order to cover the own technological consumption 

based on specific criteria to determine if it is acting 

operators, including distribution tariffs, are regulated 

uncertainties that may result in a material adjustment 

(NL) for economic operators for energy transport and 

as a principal or an agent. The Group has identified 

by ANRE.

in the subsequent twelve-month period is included in 

distribution services, which is capitalized quarterly, 

that it acts in the capacity of an agent in case of 

the following notes: 

the first asset (intangible asset) being registered on 

transactions as Balancing Responsible Party (“BRP”) 

The concession contracts are concluded for a period 

30 September 2022. Order of the Ministry of Public 

and thus recognises revenue as the net amount of 

of 49 years and may be extended for a period equal 

•  Note 6 d) – assumptions regarding recognition 

Finance (OMFP) no. 3900/2022 was issued and brings 

the commission earned by the Group. The Group 

to no more than half of that period. As a price for the 

of revenue from supply and distribution of 

additional accounting specifications to the accounting 

concluded that it is acting as a principal in all other 

concession, the operators pay an annual royalty fee 

electricity to consumers based on estimates for 

regulations in force at OMFP no. 2844/2016, which 

revenue arrangements.

recognized in the distribution tariff of 1/1000 of the 

electricity delivered and for which no reading 

provided for the financial-accounting treatment 

revenues from electricity distribution. According to the 

was performed yet;

applied to the additional costs not recovered 

Service Concession Arrangements

concession contracts, the operators use the assets 

through the tariff related to the own technological 

representing the distribution network owned by them 

•  Notes 18 and 30 – assumptions and estimates 

consumption of the distribution operators (OD).

The distribution subsidiaries (as operators) that 

located in the above-mentioned territory for electricity 

about measurement of the allowance for trade 

The Group has consistently applied the accounting 

December 2020 concluded concession contracts with 

grantor will buy at the end of the term of concession 

(ECL), respectively in determining the loss rates; 

policies to all periods presented in these consolidated 

the Ministry of Economy (as grantor) in 2005, updated 

contract the ownership right of the „relevant assets”, 

financial statements. Details of the Group’s accounting 

by subsequent addendums. These contracts concern 

that are mainly the electricity distribution networks, at 

•  Note 22 - assumptions regarding the revalued 

policies are included in Note  6.

the operation of electricity distribution service in the 

a price equal to the value of the regulated assets base 

value of tangible assets;

merged into one single distribution operator as of 31 

distribution. According to the concession contracts, the 

receivables at the level of expected credit losses 

established territory (Transilvania Nord, Transilvania 

at the end of the concession.

3  Functional and presentation currency

Sud, Muntenia Nord), on the risk and responsibility 

•  Notes 28 and 32 – recognition and measurement 

These consolidated financial statements are 

regulations applicable to the operation, modernization, 

expenditure in relation to the development and 

presented in Romanian Lei (RON), which is the 

rehabilitation and development of energy distribution 

maintenance of the infrastructure. The construction 

•  Note 18 – assumptions and estimates of 

functional currency of all Group companies. All 

networks specified in the Electricity Law, the terms and 

works are either outsourced by the Group to sub-

amounts to be received from the state following 

amounts have been rounded to the nearest thousand, 

conditions of the licenses for electricity distribution 

contractors, or performed internally. Significant 

the application of the compensation and 

unless otherwise indicated. 

and the regulations issued by ANRE. The distribution 

management judgment is involved in accounting for 

capping scheme.

of the operators and taking into account the 

Within the arrangements, the Group incurs significant 

of provisions and contingencies;

operator resulting from the merger of the three 

the concession arrangements under IFRIC 12, including 

4  Use of judgements and estimates

distribution operators within the Group, Distributie 

those in respect of the recognition of revenue based 

Measurement of fair values

Energie Electrica Romania concluded addendums to 

on the separation of construction or upgrade services 

In preparing these consolidated financial statements, 

the concession agreements signed with the Ministry 

from operation services. 

management has made judgements, estimates 

of Economy for the operation of electricity distribution 

A number of the Group’s accounting policies and 

disclosures require the measurement of fair values, for 

and assumptions that affect the application of the 

service in all three areas.

The concessionaires act as service suppliers (they 

both financial and non-financial assets and liabilities.

Group’s accounting policies and the reported amounts 

build, modernize and maintain the distribution 

of assets, liabilities, income and expenses. Actual 

IFRIC 12 “Service Concession Arrangements” deals with 

network). This results in revenues and expenditures 

When measuring the fair value of an asset or a liability, 

results may differ from these estimates. Estimates 

public-to-private service concession arrangements. 

being recognized in the profit and loss account 

the Group uses market observable data as far as 

and underlying assumptions are reviewed on an 

IFRIC 12 applies to public-to-private service concession 

(related to the construction and modernization of 

possible. Fair values are categorised into different 

ongoing basis. Revisions to estimates are recognised 

arrangements if: 

infrastructure), as well as of a margin resulting from 

levels in a fair value hierarchy based on the inputs 

rendering the construction services established by 

used in the valuation techniques as follows:

(a) the grantor controls or regulates what services the 

the Group. Starting with 30 June 2023, the Group 

operator must provide with the infrastructure, to 

reassessed the margin applied and a margin of 4.35% 

•  Level 1: quoted prices (unadjusted) in active 

whom it must provide them, and at what price; and

is applied for period 01 January 2023 – 31 December 

markets for identical assets or liabilities, which 

Information about judgements made in applying 

2023, based on the Group’s experience in working 

the Group can access;

accounting policies that have the most significant 

(b) the grantor controls - through ownership, 

with external contractors. Until 31 December 2022, the 

effects on the amounts recognised in the consolidated 

beneficial entitlement or otherwise - any 

margin applied was 3%, as presented in the annual 

•  Level 2: inputs other than quoted prices included 

financial statements is included below.

significant residual interest in the infrastructure at 

consolidated financial statements as at and for the 

in Level 1 that are observable for the asset or 

the end of the term of the arrangement.

year ended 31 December 2022.

liability, either directly (i.e. as prices) or indirectly 

(i.e. derived from prices);

prospectively.

(a)  Judgements

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (OMFP 2844/2016)FOR THE YEAR ENDED 31 DECEMBER 20232023 ANNUAL REPORTNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (OMFP 2844/2016)2023 ANNUAL REPORTELECTRICA S.AFOR THE YEAR ENDED 31 DECEMBER 2023ELECTRICA S.A468

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•  Level 3: inputs for the asset or liability that 

including RON 2,736,419 thousand overdraft limits 

(b)  Basis of consolidation

are not based on observable market data 

and RON 2,225,063 thousand long term loans 

(unobservable inputs).

limit;

(i)  Subsidiaries

investment to the extent of the Group’s interest in the 

investee. Unrealized losses are eliminated in the same 

way as unrealized gains, but only to the extent that 

there is no evidence of impairment.

If the inputs used to measure the fair value of an 

•  The utilization of not yet confirmed facilities, 

Subsidiaries are entities controlled by the Group. The 

asset or a liability might be categorised in different 

overdrafts amounting to RON 574,111 thousand 

Group controls an entity when it is exposed to, or has 

(c)  Business combinations

levels of the fair value hierarchy, then the fair value 

which will be drawn during the forecast period 

rights to, variable returns from its involvement with 

measurement is categorised in its entirety in the same 

and of which RON 250,000 thousand will be 

the entity and has the ability to affect those returns 

Acquisitions of businesses are accounted for using 

level of the fair value hierarchy as the lowest level input 

reimbursed during the forecast period.

through its power over the entity. Subsidiaries are 

the acquisition method. The consideration transferred 

that is significant to the entire measurement.

included in the consolidation perimeter from the 

in a business combination is measured at fair value, 

At the date of issuance of these consolidated financial 

date that control commences until the date on which 

which is calculated as the sum of the acquisition-date 

The Group recognises transfers between levels of the 

statements the regulatory position may be further 

control ceases. 

fair value hierarchy at the end of the reporting period 

amended and there may be further laws enacted 

during which the change has occurred.

which could adversely impact the Groups operating 

(ii)  Loss of control

cash flows during the forecast period. Given the 

fair values of assets transferred by the Group, liabilities 

incurred by the Group to the former owners of the 

acquiree and the equity interest issued by the Group 

in exchange for control of the acquiree. Acquisition-

Further information about the assumptions made in 

current market uncertainties, the Group is closely 

On the loss of control, the Group derecognizes the 

related costs are recognised in profit or loss as 

measuring fair values is included in the following notes:

monitoring the market context and is continuously 

assets and liabilities of the subsidiary, any non-

incurred.

•  Note 30 – Financial instruments;

and increase of bank overdrafts and long-term loans. 

equity related to the subsidiary. Any surplus or deficit 

(d)  Revenue

In light of the importance of the Group as the supplier 

arising on the loss of control is recognized in profit or 

analysing the opportunities for optimisation of debt 

controlling interests and the other components of 

•  Note 22 – Property, plant and equipment.

and distributed of electricity on the Romanian market, 

loss. If the Group retains any interest in the previous 

Revenue is recognized when or as the customer 

5  Basis of measurement

having 39.7 % (according to the latest ANRE report 

2022 for the distribution segment) as market share 

on the electricity distribution and 17.72 % (according 

subsidiary, then such interest is measured at fair 

acquires control over the goods or services rendered, 

value at the date that control is lost. Subsequently 

at the amount which reflects the price at which the 

that retained interest is accounted for as an equity-

Group is expected to be entitled to receive in exchange 

The consolidated financial statements have been 

to the latest ANRE report October 2022 for the supply 

accounted investee or as an available-for-sale 

of those goods or services. Revenue is recognized 

prepared on the historical cost basis except for the 

segment) as market share on the electricity supply 

financial asset depending on the level of influence 

at the fair value of the services rendered or goods 

land and buildings which are measured based on the 

market and having as main shareholder of Electrica 

retained.

delivered, net of VAT, excises or other taxes related to 

revaluation model.

6  Accounting policies

(a)  Going concern

SA the Romanian State, the management believes 

sufficient financing will be made available to cover 

any financing requirements arising from market 

uncertainty and Group will be able to meet its 

obligations as they fall due. 

(iii) Non-controlling interests

the sale.

Supply and distribution of electricity

The Group measures any non-controlling interests 

in the subsidiary at their proportionate share of the 

The revenue from supply and distribution of electricity 

subsidiary’s identifiable net assets.

to consumers is recognized when electricity is 

The consolidated financial statements have been 

Based upon the above projections and other 

delivered to consumers (consumed by consumers), 

prepared on the going concern basis. In making this 

information, given the measures already implemented 

Changes in the Group’s interest in a subsidiary that 

based on meter readings and based on estimates 

judgement management considers current trading 

and the strategies to reduce the risks which may occur 

do not result in a loss of control are accounted for as 

for electricity delivered and for which no reading 

performance and access to finance resources. The 

due to the instability of the economic environment, 

equity transactions. Adjustments to non-controlling 

was performed yet. The invoicing of electricity sales 

Group has prepared a forecast that includes the 

the Board of Directors has, at the time of approving 

interests are based on a proportionate amount of the 

is performed on a monthly basis. Monthly electricity 

following assumptions: 

the consolidated financial statements, a reasonable 

net assets of the subsidiary. 

expectation that the Group has adequate resources to 

invoices are based on meter readings or on estimated 

consumptions based on the historical data of each 

•  A continuation of the support scheme until 

continue in operational existence for the foreseeable 

(iv) Transactions eliminated on consolidation

consumer. Electricity supplied to consumers which is 

31 March 2025 according to the applicable 

future. Thus they continue to adopt the going concern 

not yet billed as at the reporting date is accrued on 

legislation but with a more stable flow of 

basis of accounting in preparing the consolidated 

Intra-group balances and transactions, and any 

the basis of recent average consumption or based 

repayments of the reimbursement requests for 

financial statements.

subsidies as compared with last year, as the 

mechanism has been operationally improved;

unrealized income and expenses arising from intra-

on subsequent meter readings. Differences between 

group transactions, are eliminated in preparing the 

estimated and actual amounts are recorded in 

consolidated financial statements. 

subsequent periods. 

•  The renewal of confirmed debt facilities is 

planned up to a limit of RON 4,961,482 thousand, 

Unrealized gains arising from transactions with equity-

Revenues from electricity distribution and supply also 

accounted investees are eliminated against the 

include the cost of green certificates recharged by the 

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (OMFP 2844/2016)FOR THE YEAR ENDED 31 DECEMBER 20232023 ANNUAL REPORTNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (OMFP 2844/2016)2023 ANNUAL REPORTELECTRICA S.AFOR THE YEAR ENDED 31 DECEMBER 2023ELECTRICA S.A470

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Group to final consumers (see paragraph (k)). 

certificates can be sold on the spot market, term 

(e)  Other income

(ii)  Defined benefit plans

market or a combination of both. The selling price 

The Group acts in the capacity of an agent in case of 

must fall between the minimum and maximum values 

Revenues from the subsidies

The Group’s net obligation in respect of defined 

transactions as Balancing Responsible Party (“BRP”). 

set by Law no. 220/2008 for establishing the system for 

benefit plans is calculated separately for each plan 

Thus, in its quality as an agent, the Group recognizes 

promoting the production of electricity from renewable 

Revenues from subsidies are recognised in profit or 

by estimating the amount of future benefit that 

revenue for the commission earned in exchange for 

energy sources, republished, with subsequent 

loss on a systematic basis over the periods in which 

employees have earned in the current and prior 

facilitating the transfer of goods or services. Any holder 

amendments. Revenue from green certificates is 

the Group recognises as expenses the related costs 

periods, discounting that amount.

of a production/supply/distribution license must be 

recognized in the profit or loss statement when the 

for which the grants are intended to compensate, 

established as a Balancing Responsible Party or must 

green certificates are sold on the trading market.

as a result of the application of the electricity price 

The calculation of defined benefit obligations is 

delegate this responsibility to a Balancing Responsible 

cap. These subsidies are recoverable from the 

performed annually by a qualified actuary using the 

Party. By delegating this responsibility to a BRP, there is 

Service concession arrangement

National Agency for Payments and Social Inspection 

projected unit credit method. 

the benefit of imbalance aggregation in the meaning 

for household consumers and from the Ministry of 

of Balancing Market cost reduction by comparison 

Revenue related to construction or upgrade services 

Energy for non-household consumers, as a result of 

Re-measurements of the net defined benefit liability, 

with the case where the producer/supplier/distributor 

under service concession arrangement is recognised 

the application of the electricity and natural gas price 

which comprise actuarial gains and losses, are 

would act itself as a Balancing Responsible Party.  

based on the stage of completion of the work 

ceiling mechanism and are applicable for period 1 

recognised immediately in other comprehensive 

performed, consistent with the accounting policy on 

November 2021 – 31 March 2025. Starting with April 

income. The Group determines the net interest 

Electrica Furnizare S.A. acts as BRP for a large number 

recognising revenue on construction contracts, as 

2022, the revenues from subsidies are recorded as 

expense/(income) on the net defined benefit liability 

of participants, electricity producers as well as 

follows:

electricity suppliers and distribution operators. For 

the difference between the income calculated at 

for the period by applying the discount rate used 

the contract price and the income invoiced to the 

to measure the defined benefit obligation at the 

the settlement of imbalances, BRP Electrica is using 

•  Revenue in respect of variations to contracts 

customer at the capped price.

beginning of the annual period to the then-net defined 

the “method of internal redistribution of payments”, 

and incentive payments is recognised when 

benefit liability, taking into account any changes in the 

ensuring benefits of imbalance aggregation for all 

there is an enforceable right to payment and 

(f)  Finance income and finance costs

net defined benefit liability during the period as a result 

the participants included in the BRP. BRP Electrica 

it is highly probable it will be agreed by the 

of contributions and benefit payments. Net interest 

provides the transmission of physical notifications to 

customer. Variable consideration is assessed 

The Group’s finance income and finance costs include:

expense and other expenses related to defined benefit 

CNTEE Transelectrica SA and its role is to balance the 

on a contract by contract basis according to 

plans are recognised in profit or loss.

differences between the electricity contracted and the 

the facts, circumstances and terms of each 

•  interest income;

electricity measured at the level of the entire BRP.

project and only recognised to the extent that 

it is highly probable not to significantly reverse 

•  interest expense;

Generation and sale of electricity

in the future. Revenue in respect of claims is 

recognised only if it is highly probable not to 

The electricity produced by the Group is mainly sold on 

reverse in future periods.

the Day Ahead Market and the revenue is recognized 

•  foreign currency gains or losses on financial 

curtailment is recognised immediately in profit or 

assets and financial liabilities; 

loss. The Group recognises gains and losses on 

the settlement of a defined benefit plan when the 

When the benefits of a plan are changed or when 

a plan is curtailed, the resulting change in benefit 

that relates to past service or the gain or loss on 

when the electricity is injected into the network and is 

•  If the outcome of a construction contract can 

•  impairment losses recognised on financial 

settlement occurs.

being sold on the market.

be estimated reliably, then contract revenue is 

recognised in profit or loss in proportion to the 

assets (other than trade receivables).

(iii) Other long-term employee benefits

Sale of green certificates

stage of completion of the contract. The stage of 

Interest income or expense is recognised using the 

Electricity suppliers have a legal obligation to purchase 

of work performed. Otherwise, contract revenue 

green certificates from producers of electricity from 

is recognized only to the extent of contract costs 

(g)  Employee benefits

renewable sources, based on annual targets or 

incurred that are likely to be recoverable.

quotas set by law, which are applied to the quantity of 

(i)  Short-term employee benefits

electricity purchased and supplied to final customers. 

•  Contract expenses are recognized as incurred 

completion is assessed with reference to surveys 

effective interest method.

The Group’s net obligation in respect of long-term 

employee benefits is the amount of future benefit that 

employees have earned in return for their service in the 

current and prior periods. That benefit is discounted 

to determine its present value. Re-measurements are 

recognised in profit or loss in the period in which they 

Cost of green certificates is invoiced to final customers 

unless they create an asset related to future 

Short-term employee benefits are measured on an 

arise.

separately from the tariffs for electricity.

contract activity. An expected loss on a contract 

undiscounted basis and are expensed as the related 

is recognised immediately as expense.

service is provided. A liability is recognised for the 

(iv) Termination benefits

Electricity producers are entitled by the law in force 

to receive a certain number of green certificates for 

each MWH of electricity produced from renewable 

sources and injected into the network. The green 

amount expected to be paid if the Group has a present 

legal or constructive obligation to pay this amount as 

Termination benefits are expensed at the earlier of 

a result of past service provided by the employee and 

when the Group can no longer withdraw the offer of 

the obligation can be estimated reliably.

those benefits and when the Group recognises costs 

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (OMFP 2844/2016)FOR THE YEAR ENDED 31 DECEMBER 20232023 ANNUAL REPORTNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (OMFP 2844/2016)2023 ANNUAL REPORTELECTRICA S.AFOR THE YEAR ENDED 31 DECEMBER 2023ELECTRICA S.A472

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for a restructuring. If benefits are not expected to 

can be used. Deferred tax assets are reviewed at each 

(i)  Green certificates

loss when consumed and presented in “Repairs, 

be settled wholly within 12 months of the end of the 

reporting date and are reduced to the extent that it is 

maintenance and materials”.

reporting period, then they are discounted.

no longer probable that the related tax benefit will be 

Electricity supply

realised.

(k)  Property, plant and equipment

(h)  (h)  Income tax

Electricity suppliers have a legal obligation to purchase 

Deferred tax is measured at the tax rates that are 

green certificates from producers of electricity from 

(i)  Recognition

Income tax expense comprises current and deferred 

expected to be applied to temporary differences when 

renewable sources, based on annual targets or 

tax. It is recognised in profit or loss except to the extent 

they reverse, using tax rates enacted or substantively 

quotas set by law, which are applied to the quantity of 

Property, plant and equipment are stated initially at 

that it relates to a business combination or items 

enacted at the reporting date. The measurement of 

electricity purchased and supplied to final customers. 

cost, which includes purchase price and other costs 

recognised directly in equity or in other comprehensive 

deferred tax reflects the tax consequences that would 

directly attributable to acquisition and bringing the 

income.

(i)  Current tax

follow from the manner in which the Group expects, 

The cost of green certificates is accrued in the profit or 

asset to the location and condition necessary for their 

at the reporting date, to recover or settle the carrying 

loss based on the quantitative quota determined by 

intended use. 

amount of its assets and liabilities. Deferred tax assets 

the regulator representing the quantity of the green 

and liabilities are offset only if certain criteria are met. 

certificates that the Group has to purchase for the year 

After initial recognition, land and buildings are 

Current tax comprises the expected tax payable or 

and based on the price of green certificates acquired 

measured at revalued amounts less any accumulated 

receivable on the taxable income or loss for the year 

Unrecognized deferred tax assets are reassessed at 

on the centralized market. The obligation for covering 

depreciation and any accumulated impairment 

and any adjustment to tax payable or receivable 

each reporting date and recognized to the extent that 

the annual acquisition quota is accrued in profit or 

losses since the most recent valuation. The other 

in respect of previous years. It is measured using 

it has become probable that the future taxable profits 

loss.

tax rates enacted or substantively enacted at the 

will be available against which they can be used.

reporting date. Current tax also includes any tax 

Electricity generation

arising from dividends.

In such a circumstance, the Group shall recognise and 

items of property, plant and equipment are measured 

at cost less any accumulated depreciation and any 

accumulated impairment losses. Revaluations of 

land and buildings are made with sufficient regularity 

(ii)  Deferred tax

based on taxable profit (tax loss), tax bases, unused 

receive a certain number of green certificates for each 

materially from the one that would be determined 

measure its current or deferred tax asset or liability 

Electricity producers are entitled by the law in force to 

to ensure that the carrying amount does not differ 

Deferred tax is recognised in respect of temporary 

applying this interpretation.

and injected into the network. 

When a building is revalued, the accumulated 

differences between the carrying amounts of assets 

depreciation is eliminated against the gross carrying 

and liabilities for financial reporting purposes and the 

The Group assesses whether it is probable (more 

Green certificates are recognized as inventories when 

amount of that item, and the net amount is restated to 

amounts used for taxation purposes. Deferred tax is 

than 50% chances) that a tax authority will accept an 

the producer has the right to receive as a result of 

the revalued amount of the asset. 

tax losses, unused tax credits and tax rates determined 

MWH of electricity produced from renewable sources 

using the fair value at the end of the reporting period. 

not recognised for:

uncertain tax treatment.

energy produced and delivered into the network, at 

•  temporary differences on the initial recognition 

Thus, the Group shall reflect the effect of uncertainty 

account is done at the time of their sale.

equipment have different useful lives, then they are 

of assets or liabilities in a transaction that is not 

for each uncertain tax treatment by using either of the 

accounted for as separate items (major components) 

a business combination and that affects neither 

following methods, depending on which method the 

(j)  Inventories

of property, plant and equipment.

nil nominal value. Recognition in the profit and loss 

If significant parts of an item of property, plant and 

accounting nor taxable profit or loss;

entity expects to better predict the resolution of the 

•  temporary differences related to investments in 

uncertainty: 

Inventories consist mainly of spare parts that do not 

Properties in the course of construction for production, 

meet the recognition criteria for property, plant and 

supply or administrative purposes, or for purposes 

subsidiaries, associates and joint arrangements 

(a) the most likely amount - the single most likely 

equipment, consumables, goods for resale, other 

not yet determined, are carried at cost, less any 

to the extent that the Group is able to control 

amount in a range of possible outcomes. The most 

inventories and the natural gas storage.

recognised impairment loss. Cost includes professional 

the timing of the reversal of the temporary 

likely amount may better predict the resolution of 

fees and, for qualifying assets, borrowing costs 

differences and it is probable that they will not 

the uncertainty if the possible outcomes are binary 

Inventories are measured at the lower of cost and net 

capitalised in accordance with the Group’s accounting 

reverse in the foreseeable future; and

or are concentrated on one value. 

realizable value. 

policy. Depreciation of these assets, determined on 

the same basis as other property assets, commences 

•  taxable temporary differences arising on the 

(b) the expected value - the sum of the 

The cost of inventories is based on the weighted 

when the assets are ready for their intended use.

initial recognition of goodwill.

probability-weighted amounts in a range of 

average cost method. The cost of inventories includes 

Deferred tax assets are recognised for unused tax 

predict the resolution of the uncertainty if there is a 

to bringing the inventories to their current place and 

classified as property, plant and equipment if they 

possible outcomes. The expected value may better 

all the acquisition costs and other expenses related 

Spare parts, stand-by and servicing equipment are 

losses, unused tax credits and deductible temporary 

range of possible outcomes that are neither binary 

condition.

differences to the extent that it is probable that future 

nor concentrated on one value.

taxable profits will be available against which they 

Consumables used for the repairs and maintenance 

property, plant and equipment.

of the electricity network are included in profit and 

are expected to be used during more than one period 

or can be used only in connection with an item of 

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (OMFP 2844/2016)FOR THE YEAR ENDED 31 DECEMBER 20232023 ANNUAL REPORTNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (OMFP 2844/2016)2023 ANNUAL REPORTELECTRICA S.AFOR THE YEAR ENDED 31 DECEMBER 2023ELECTRICA S.A474

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Any gain or loss on disposal of an item of property, 

(ii) Amortization

concessionaire free of charge together with the assets 

statements according to the instructions developed 

plant and equipment is recognised in profit or loss.

part of RAB.

The amortization method used is selected on the 

by the Ministry of Finance. ANRE will determine the 

recognized annual amounts of the capitalized costs 

(ii)  Subsequent expenditure

basis of the expected pattern of consumption of 

In the case of non-household customers, the value 

based on the quantities and prices recognized for NL.

Subsequent expenditure is capitalised only if it is 

in the asset, and is applied consistently from period 

design/construction of the connection/connection, is 

(i)  Recognition and measurement

the expected future economic benefits embodied 

of the connection works, including those for the 

probable that the future economic benefits associated 

to period, unless there is a change in the expected 

entirely borne by the customers. Assets resulting from 

with the expenditure will flow to the Group.Depreciation

pattern of consumption of those future economic 

connection work:

benefits. The Group determined that the amortization 

The computation of the capitalized amounts is carried 

out in compliance with the legislation specific to the 

Depreciation is calculated to write off the cost of items 

method that reflects appropriately the expected 

•  In the period from 1 January 2022 to 24 July 2022, 

entities that are the subject of GEO 119/2022, with 

of property, plant and equipment less their estimated 

pattern of consumption of the expected future 

they enter the distribution operator’s assets from 

subsequent additions and changes.

residual values using the straight-line method over 

economic benefits is correlated with the amortisation 

the time of commissioning, on the basis of GEO 

their estimated useful lives and is recognised in 

of the regulated asset base “RAB”. 

no. 143/2021, without being recognised by ANRE 

According to the legislation in force, the following 

profit or loss. Leased assets are depreciated over the 

shorter of the lease term and their useful lives unless 

(c)  Connection fees

it is reasonably certain that the Group will obtain 

as part of the regulated asset base.

intangible assets will be created for the NL difference 

(in correspondence with “Capitalised costs of 

•  From 25 July 2022 they do not become part of 

intangible non-current assets”):

ownership by the end of the lease term. Land and 

 According to art. 25 paragraph (1) of Law no. 123/2012 

the distribution operator’s assets, on the basis of 

construction in progress are not depreciated.

on electricity and natural gas, as subsequently 

Law no. 248/2022 and ANRE Order no. 133/2022, 

•  The first intangible asset - for the NL cost 

The estimated useful lives of property, plant and 

public interest is a mandatory service provided under 

operator for operation.

and September 2022 will be recorded on 30 

equipment are as follows:

regulatory conditions, which the transmission and 

September 2022;

amended and supplemented, access to power grids of 

they are only transferred to the distribution 

difference recorded between January 2022 

Category

Buildings

Equipment

Motor vehicles and office 
equipment

system operator as well as the distribution operators 

Starting with 2021, according to ANRE Order no. 

Useful lives (years)

must ensure. 

160/2020 amending ANRE Order no.59/2013, the 

•  The second intangible asset - for the NL cost 

connection installations that are financed by the 

difference recorded between October 2022 and 

45-70

At the request of a new or pre-existing customer, the 

customers will remain in their ownership and are 

December 2022 will be recorded on 31 December 

3-25

3-10

distribution operators are obliged to communicate the 

being exploited by the network operator. However, 

2022;

technical and economic conditions for the connection 

according to ANRE Order no. 17/2021 for the connection 

network and to cooperate with the applicant to choose 

installations of all household consumers and of the 

•  The third intangible asset - for the NL cost 

the most advantageous technical and economic 

non-household with lengths less than 2.5 km, the 

difference recorded between January 2023 and 

solution. Afterwards, a connection contract is 

distribution operator has the obligation to finance 

March 2023 will be recorded on 31 March 2023;

Depreciation methods, useful lives and residual values 

are reviewed at each reporting date and adjusted if 

appropriate.

of the connection installation is carried out by a 

construction supplier certified by ANRE. 

Intangible asset in a service concession arrangement

The Group collects cash from customers, which is 

(d)  Intangible assets related to the capitalization of 

June 2023 will be recorded on 30 June 2023;

own technological consumption (“NL”)

•  The fifth intangible asset - for the NL cost 

•  The fourth intangible asset - for the NL cost 

difference recorded between April 2023 and 

concluded between the distribution operator and the 

them and these will remain in the ownership of the 

customer at a regulated tariff. The actual construction 

network operator.

(i)   Recognition and measurement

used only to pay for the construction of the connection 

The difference between the purchase price of 

difference recorded between July 2023 and 

station, and the Group must then use this asset to 

electricity for own technological consumption versus 

August 2023 will be recorded on 31 August 2023.

The Group recognises an intangible asset arising from 

a service concession arrangement when it has a right 

Order no. 59/2013, with subsequent amendments, 

in the related regulated tariffs 2022 related to the 

•  The sixt intangible assets - for the NL cost 

these assets remain in the ownership of the network 

purchase of electricity and natural gas, made between 

difference recorded between September 2023 

connect customers to the network. According to ANRE 

the ex-ante purchase price recognized by ANRE 

to charge for use of the concession infrastructure. 

An intangible asset received as consideration for 

operator.

1 January 2022 and 31 August 2023, in order to cover 

and December 2023 will be recorded on 31 

the own technological consumption (NL) for economic 

December 2023.

providing construction or upgrade services in a service 

concession arrangement is measured at fair value on 

initial recognition with reference to the fair value of the 

services provided. Subsequent to initial recognition, the 

intangible asset is measured at cost, less accumulated 

amortization and accumulated impairment losses.

The Group recognizes the assets at nil value, net of 

operators for energy transport and distribution 

the amount of the deferred income representing the 

services are capitalised.

contributions from customers. The assets financed 

•  Quarterly, on the last day of each quarter, for the 

corresponding amounts, between 1 January 2024 

from connection fees received from the new users of 

According to ANRE regulations, the capitalised costs 

and 31 March 2025.

the distribution network are not included in the RAB. 

of intangible assets are recorded in the accounting 

At the end of the concession contract, the assets built 

records and therefore on the annual financial 

from the connection tariff will be transferred to the 

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (OMFP 2844/2016)FOR THE YEAR ENDED 31 DECEMBER 20232023 ANNUAL REPORTNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (OMFP 2844/2016)2023 ANNUAL REPORTELECTRICA S.AFOR THE YEAR ENDED 31 DECEMBER 2023ELECTRICA S.A476

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Currently, in the financial statements are recognized 

controlling interest (NCI) plus the fair value of previous 

The amortized cost of a financial asset is the amount 

Cash and cash equivalents

only the intangible assets mentioned above.

equity interests minus the net of the acquisition-date 

at which the financial asset is measured at initial 

In the future, the following additional intangible assets 

liabilities assumed.

the cumulative amortization using the effective interest 

call deposits and deposits with maturities of three 

will be recognized if it is the case quarterly until 31 

method of any difference between that initial amount 

months or less from the set-up date that are subject to 

March 2025.

(ii) Amortization

Goodwill arising on the acquisition of subsidiaries 

and the maturity amount, adjusted for any loss 

an insignificant risk of changes in their fair value and 

is measured at cost less accumulated impairment 

allowance. The gross carrying amount of a financial 

are used by the Group in the management of its short-

losses.

asset is the amortized cost of a financial asset before 

term commitments.

amounts of the identifiable assets acquired and the 

recognition minus the principal reimbursements, plus 

Cash and cash equivalents comprise cash balances, 

The capitalized costs are amortized through the 

(g)  Financial instruments

straight-line method over a period of 5 years from the 

adjusting for any loss allowance.

Foreign exchange gains and losses

(ii)  Financial liabilities

date of capitalization.

Financial assets and financial liabilities are recognised 

All financial liabilities are measured subsequently at 

in the Group’s statement of financial position when the 

The carrying amount of financial assets that are 

amortised cost using the effective interest method or 

(e)  Other intangible assets

Group becomes a party to the contractual provisions 

denominated in a foreign currency is determined in 

at fair value through profit or loss. 

(i)  Recognition and measurement

of the instrument. 

Financial assets and financial liabilities are initially 

that foreign currency and translated at the spot rate at 

the end of each reporting period.

Other intangible assets that are acquired by the Group 

measured at fair value. Transaction costs that are 

Loans and receivables

and have finite useful lives are measured at cost less 

directly attributable to the acquisition or issue of 

Financial liabilities that are not (i) contingent 

consideration of an acquirer in a business 

combination, (ii) held-for-trading, or (iii) valued as at 

fair value, are measured subsequently at amortised 

accumulated amortization and any accumulated 

financial assets and financial liabilities (other than 

These assets are initially recognised at fair value plus 

cost using the effective interest method. 

impairment losses.

financial assets and financial liabilities at fair value 

any directly attributable transaction costs. Subsequent 

(ii)  Subsequent expenditure

from the fair value of the financial assets or financial 

cost using the effective interest method. The amortised 

calculating the amortised cost of a financial liability 

liabilities, as appropriate, on initial recognition. 

cost is reduced by impairment losses. Loans and 

and of allocating interest expense over the relevant 

Subsequent expenditure is capitalised only when it 

Transaction costs directly attributable to the 

receivables comprise trade receivables, cash and 

period. The effective interest rate is the rate that 

through profit or loss) are added to or deducted 

to initial recognition, they are measured at amortised 

The effective interest method is a method of 

increases the future economic benefits embodied 

acquisition of financial assets or financial liabilities 

cash equivalents and deposits. 

in the specific asset to which it relates. All other 

at fair value through profit or loss are recognised 

expenditure, including expenditure on internally 

immediately in profit or loss.

Trade receivables 

generated goodwill and brands, is recognised in profit 

exactly discounts estimated future cash payments 

(including all fees and points paid or received that 

form an integral part of the effective interest rate, 

transaction costs and other premiums or discounts) 

or loss as incurred.

(i)  Financial assets

Trade receivables include mainly unsettled invoices 

through the expected life of the financial liability, or 

(iii) Amortization

All regular way purchases or sales of financial assets 

of electricity and services, late payment penalties and 

cost of a financial liability.

are recognised and derecognised on a trade date 

accrued revenue for electricity delivered and services 

Amortization is calculated to write off the cost of 

basis. Regular way purchases or sales are purchases 

rendered until the end of the year,but invoiced after 

Other financial liabilities include bank borrowings, bank 

intangible assets less their estimated residual values 

or sales of financial assets that require delivery of 

the end of the year.

using the straight-line method over their estimated 

assets within the time frame established by regulation 

overdrafts, financing for network construction related 

to concession agreements and trade payables.

issued until reporting date for supply and distribution 

(where appropriate) a shorter period, to the amortised 

useful lives and is generally recognised in profit or loss. 

or convention in the marketplace. All recognised 

Other receivables from capping schemes

The estimated useful lives of software and licenses are 

their entirety at either amortised cost or fair value, 

The compensation of household consumers for part 

3-5 years.

depending on the classification of the financial assets.

of the costs incurred by the electricity invoices was 

Ordinary shares

financial assets are measured subsequently in 

(iii) Share capital

applicable between 1 November 2021 until 31 March 

Amortization methods, useful lives and residual values 

Financial assets are initially measured at fair value 

2022.

are reviewed at each reporting date and adjusted if 

and subsequently at amortized cost, as they are held 

Ordinary shares are classified as equity. Incremental 

costs directly attributable to the issue of ordinary 

appropriate.

(f)  Goodwill

in a business model to collect contractual cash flows 

The exemption was applicable between 1 November 

shares, net of any tax effects, are recognised as a 

and these cash flows consist solely of payments 

of principal and interest on the principal amount 

outstanding.

2021 until 31 January 2022 for several types of non-

deduction from equity.

household consumers from payment of regulated 

tariffs and other taxes/contributions.

Goodwill is measured as the value of the consideration 

transferred (fair value) plus the amount of any non-

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (OMFP 2844/2016)FOR THE YEAR ENDED 31 DECEMBER 20232023 ANNUAL REPORTNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (OMFP 2844/2016)2023 ANNUAL REPORTELECTRICA S.AFOR THE YEAR ENDED 31 DECEMBER 2023ELECTRICA S.A478

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Repurchase and reissue of ordinary shares (treasury 

has reasonable and supportable information to 

(h)  Revaluation reserve

shares)

demonstrate that a more lagging default criterion is 

obligation that can be estimated reliably, and it is 

probable that an outflow of economic benefits will 

more appropriate.

The difference between the revalued amount and the 

be required to settle the obligation. Provisions are 

When shares recognised as equity are repurchased, 

net carrying amount of property, plant and equipment 

determined by discounting the expected future cash 

the amount of the consideration paid, which includes 

(ii) Write-off policy

is recognised as revaluation reserve included in equity.

flows at a pre-tax rate that reflects current market 

directly attributable costs, net of any tax effects, is 

assessments of the time value of money and the risks 

recognised as a deduction from equity. Repurchased 

The Group writes off a financial asset after the 

If an asset’s carrying amount is increased as a 

specific to the liability. The unwinding of the discount is 

shares are classified as treasury shares and are 

finalization of the bankruptcy proceedings. Financial 

result of a revaluation, the increase is recognised 

recognised as finance cost.

presented in the treasury share reserve. 

assets written off may still be subject to enforcement 

and accumulated in equity under the heading 

When treasury shares are sold or reissued 

taking into account legal advice where appropriate. 

recognised in profit and loss to the extent that it 

the Group has approved a detailed and formal 

subsequently, the amount received is recognised 

Any recoveries made are recognised in profit or loss. 

reverses a revaluation decrease of the same amount 

restructuring plan, and the restructuring either has 

as an increase in equity and the resulting surplus or 

of the asset previously recognised in profit and loss.

commenced or has been announced publicly. Future 

deficit on the transaction is presented within share 

(iii) Measurement and recognition of expected credit 

operating losses are not provided for.

activities under the Group’s recovery procedures, 

of revaluation reserve. However, the increase is 

A provision for restructuring is recognised when 

premium.

(iv) Impairment

losses

If an asset’s carrying amount is decreased as a result 

The measurement of expected credit losses is a 

or loss. However, the decrease is recognized in equity 

function of the probability of default, loss given default 

in revaluation reserves if there is any credit balance 

A contingent liability is:

of a revaluation, the decrease is recognised in profit 

(l)  Contingent assets and liabilities

Impairment of financial assets

(i.e. the magnitude of the loss if there is a default) 

existing in the revaluation reserve in respect of that 

The Group recognizes a loss allowance for expected 

probability of default and loss given default is based 

and the exposure at default. The assessment of the 

asset. 

(a)  a possible obligation that arises from past events 

and whose existence will be confirmed only by 

credit losses on investments in debt instruments 

on historical data adjusted by forward-looking 

The revaluation reserve is transferred to retained 

the occurrence or non-occurrence of one or more 

that are measured at amortized cost or at fair value 

information as described above. As for the exposure at 

earnings in an amount corresponding to the use of the 

uncertain future events not wholly within the 

through other comprehensive income. The amount of 

default, for financial assets, this is represented by the 

asset (as the asset is depreciated) and upon disposal 

control of the Group; or

expected credit losses is updated at each reporting 

assets’ gross carrying amount at the reporting date.

of the asset.

date to reflect changes in credit risk since initial 

recognition of the respective financial instrument.

For financial assets, the expected credit loss is 

(i)  Dividends

estimated as the difference between all contractual 

(b)  a present obligation that arises from past events 

that is not recognised because:

The Group always recognizes lifetime expected credit 

cash flows that are due to the Group in accordance 

Dividends are recognized as a deduction from equity 

i. it is not probable that an outflow of resources 

losses for trade receivables. The expected credit 

with the contract and all the cash flows that the Group 

in the period in which their distribution is approved 

embodying economic benefits will be required 

losses on these financial assets are estimated using a 

expects to receive, discounted at the original effective 

and recognised as a liability to the extent it is unpaid 

to settle the obligation; or  

provision matrix based on the Group’s historical credit 

interest rate.

loss experience, adjusted for factors that are specific 

at the reporting date. Dividends are disclosed in the 

notes to financial statements when their distribution is 

ii. the amount of the obligation cannot be 

to the debtors, general economic conditions and an 

Derecognition of financial assets

proposed after the reporting date and before the date 

measured with sufficient reliability.

assessment of both the current as well as the forecast 

of the issuance of the financial statements.

direction of conditions at the reporting date, including 

The Group derecognises a financial asset only when 

Contingent liabilities are not recognized in the 

time value of money where appropriate.

the contractual rights to the cash flows from the asset 

(j) 

 Pre-paid capital contributions in kind from 

Group’s financial statements, but disclosed unless 

expire, or when it transfers the financial asset and 

shareholders

the possibility of an outflow of resources embodying 

(i) Significant increase in credit risk

substantially all the risks and rewards of ownership 

economic benefits is remote.

of the asset to another entity. If the Group neither 

These contributions from a shareholder represent 

In assessing whether the credit risk on a financial 

transfers nor retains substantially all the risks and 

pre-paid contributions of land for which the Company 

A contingent asset is a possible asset that arises from 

instrument has increased significantly since initial 

rewards of ownership and continues to control the 

obtained title deeds in respect of future issuance of 

past events and whose existence will be confirmed 

recognition, the Group compares the risk of a default 

transferred asset, the Group recognises its retained 

shares. The amounts recorded are based on the fair 

only by the occurrence or non-occurrence of one or 

occurring on the financial instrument at the reporting 

interest in the asset and an associated liability for 

value of the land.

more uncertain future events not wholly within the 

date with the risk of a default occurring on the financial 

amounts it may have to pay. If the Group retains 

control of the Group.

instrument at the date of initial recognition. 

substantially all the risks and rewards of ownership of 

(k)  Provisions

Irrespective of the above analysis, the Group considers 

recognise the financial asset and also recognises a 

A provision is recognised if, as a result of a past 

financial statements, but disclosed when an inflow of 

that default has occurred when a financial asset 

collateralised borrowing for the proceeds received.

event, the Group has a present, legal or constructive 

economic benefits is probable.

a transferred financial asset, the Group continues to 

A contingent asset is not recognized in the Group’s 

is more than 90 days past due unless the Group 

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (OMFP 2844/2016)FOR THE YEAR ENDED 31 DECEMBER 20232023 ANNUAL REPORTNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (OMFP 2844/2016)2023 ANNUAL REPORTELECTRICA S.AFOR THE YEAR ENDED 31 DECEMBER 2023ELECTRICA S.A480

481

(m) 

Leases

by discounting the revised lease payments 

profit or loss and other comprehensive income of the 

(p)  Subsequent events

using an unchanged discount rate (unless the 

associate. 

(i)  The Group as lessee

lease payments change is due to a change in 

Events occurring after the reporting date 31 

a floating interest rate, in which case a revised 

When the Group’s share of losses of an associate 

December 2023, which provide additional 

The Group assesses whether a contract is or contains 

discount rate is used);

exceeds the Group’s interest in that associate (which 

information about conditions prevailing at the 

a lease, at inception of the contract. The Group 

includes any long-term interests that, in substance, 

reporting date (adjusting events) are reflected 

recognises a right-of-use asset and a corresponding 

•  a lease contract is modified and the lease 

form part of the Group’s net investment in the 

in the consolidated financial statements. Events 

lease liability with respect to all lease arrangements 

modification is not accounted for as a separate 

associate), the Group discontinues recognising 

occurring after the reporting date that provide 

in which it is the lessee, except for short-term leases 

lease, in which case the lease liability is 

its share of further losses. Additional losses are 

information on events that occurred after the 

(with a lease term of 12 months or less) and leases of 

remeasured based on the lease term of the 

recognised only to the extent that the Group has 

reporting date (non-adjusting events), when 

low value assets (of less than USD 5,000). For these 

modified lease by discounting the revised lease 

incurred legal or constructive obligations or made 

material, are disclosed in the notes to the 

leases, the Group recognises the lease payments 

payments using a revised discount rate at the 

payments on behalf of the associate. 

consolidated financial statements. When the going 

as an operating expense on a straight-line basis 

effective date of the modification.

concern assumption is no longer appropriate at or 

over the term of the lease unless another systematic 

An investment in an associate is accounted for 

after the reporting period, the financial statements 

basis is more representative of the time pattern in 

Right-of-use assets are depreciated over the shorter 

using the equity method from the date on which the 

are not prepared on a going concern basis.

which economic benefits from the leased assets are 

period of lease term and useful life of the underlying 

investee becomes an associate. On acquisition of the 

consumed. 

asset. If a lease transfers ownership of the underlying 

investment in an associate, any excess of the cost of 

asset or the cost of the right-of-use asset reflects 

the investment over the Group’s share of the net fair 

The lease liability is initially measured at the present 

that the Group expects to exercise a purchase option, 

value of the identifiable assets and liabilities of the 

value of the lease payments that are not paid at 

the related right-of-use asset is depreciated over the 

investee is recognised as goodwill, which is included 

the commencement date, discounted by using the 

useful life of the underlying asset. The depreciation 

within the carrying amount of the investment. Any 

default rate in the lease. If this rate cannot be readily 

starts at the commencement date of the lease. The 

excess of the Group’s share of the net fair value of 

determined, the Group uses its incremental borrowing 

right-of-use assets are presented as a separate line in 

the identifiable assets and liabilities over the cost of 

rate.

the consolidated statement of financial position. 

the investment, after reassessment, is recognised 

immediately in profit or loss in the period in which the 

The lease liability is presented as a separate line in the 

(ii)  Rental income

investment is acquired.

consolidated statement of financial position. The lease 

liability is subsequently measured by increasing the 

Rental income from property, plant and equipment 

When necessary, the entire carrying amount of 

carrying amount to reflect interest on the lease liability 

other than investment property is recognised as Other 

the investment (including goodwill) is tested for 

(using the effective interest method) and by reducing 

income. Rental income is recognised on a straight-line 

impairment as a single asset by comparing its 

the carrying amount to reflect the lease payments 

basis over the term of the lease.

made.

(n)  Investment in associates

The Group remeasures the lease liability (and makes a 

recoverable amount (higher of value in use and fair 

value less costs of disposal) with its carrying amount. 

Any impairment loss recognised is not allocated to 

any asset, including goodwill that forms part of the 

corresponding adjustment to the related right-of-use 

An associate is an entity over which the Group has 

carrying amount of the investment. Any reversal of that 

asset) whenever:

significant influence and that is neither a subsidiary 

impairment loss is recognised to the extent that the 

nor an interest in a joint venture. Significant influence is 

recoverable amount of the investment subsequently 

•  the lease term has changed or there is a 

the power to participate in the financial and operating 

increases. 

significant event or change in circumstances 

policy decisions of the investee but is not control or 

resulting in a change in the assessment of 

joint control over those policies. 

exercise of a purchase option, in which case the 

The Group discontinues the use of the equity method 

from the date when the investment ceases to be an 

lease liability is remeasured by discounting the 

The results and assets and liabilities of associates 

associate.

revised lease payments using a revised discount 

are incorporated in these consolidated financial 

rate;

statements using the equity method of accounting, 

(o)  Segment reporting

except when the investment is classified as held for 

•  the lease payments change due to changes 

sale. Under the equity method, an investment in an 

Segment results that are reported to the Company’s 

in an index or rate or a change in expected 

associate is recognised initially in the consolidated 

Board of Directors (the chief operating decision maker) 

payment under a guaranteed residual value, 

statement of financial position at cost and adjusted 

include items directly attributable to a segment as well 

in which cases the lease liability is remeasured 

thereafter to recognise the Group’s share of the 

as those that can be allocated on a reasonable basis. 

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (OMFP 2844/2016)FOR THE YEAR ENDED 31 DECEMBER 20232023 ANNUAL REPORTNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (OMFP 2844/2016)2023 ANNUAL REPORTELECTRICA S.AFOR THE YEAR ENDED 31 DECEMBER 2023ELECTRICA S.A482

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7  Disclosure for the additional set of the consolidated financial statements

There are varying levels of integration between the Electricity supply, Electricity distribution and External 

The Company also issues a set of consolidated financial statements prepared in accordance with IFRS-EU.

Until 31 December 2021, the consolidated financial statements prepared in accordance with OMFP no. 

2844/2016 were equivalent to IFRS-EU. Starting with 31 December 2022, according to Order of Ministry of 

electricity network maintenance segments. This integration includes electricity distribution and shared 

electricity network maintenance services. Inter-segment pricing policy is determined on an arm’s length 

basis. 

All assets are allocated to reportable segments, except for investments in associates and deferred tax 

Public Finances (OMFP) no. 3900/2022 that has included a new clause related to the regulatory accounts to 

assets. 

cover for own technological consumption network additional expenses for actual energy costs as compared 

with the ex-ante ANRE prices recognised in distribution tariffs. On the additional set of the consolidated 

financial statement in accordance with IFRS-EU, these expenses have a different accounting treatment 

(please see the voluntary set of financial statements in accordance with IFRS-EU).

8  Operating segments

(a)  Basis for segmentation

The following summary describes the operations of each reportable segment:

Reportable segments

Operations

Electricity and natural gas 
supply

Buying and supplying electricity and natural gas to final consumers 
(includes Electrica Furnizare S.A.)

Electricity distribution

Operation, maintenance and construction of electricity networks 
operated by the Group (includes Distributie Energie Electrica Romania 
S.A. and the activity performed by Electrica Serv S.A within the distribution 
network).

Electricity generation

Production of electricity from renewable sources (Sunwind Energy S.R.L., 
New Trend Energy S.R.L., and Foton Power Energy S.R.L and the activity 
carried out by Electrica S.A. in the electricity production segment).

External electricity network 
maintenance

Repairs, maintenance and other services for electricity networks owned 
by other distributors (Electrica Serv S.A., without the activity performed in 
the electricity distribution segment).

Headquarter

Consulting activities for business and management, the parent company 
also carrying out corporate activities in relation to its subsidiaries 
(Electrica S.A. but without the activity carried out in the electricity 
production segment)

The Board of Directors of the Company reviews management reports of each segment. Segment earnings 

before interest, tax, depreciation and amortisation (“Adjusted EBITDA”) is used to measure performance 

because management believes that such information is one of the most relevant in evaluating the results of 

the segments.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (OMFP 2844/2016)FOR THE YEAR ENDED 31 DECEMBER 20232023 ANNUAL REPORTNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (OMFP 2844/2016)2023 ANNUAL REPORTELECTRICA S.AFOR THE YEAR ENDED 31 DECEMBER 2023ELECTRICA S.A484

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (OMFP 2844/2016)FOR THE YEAR ENDED 31 DECEMBER 20232023 ANNUAL REPORTNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (OMFP 2844/2016)2023 ANNUAL REPORTELECTRICA S.AFOR THE YEAR ENDED 31 DECEMBER 2023ELECTRICA S.A 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
486

487

9  Revenue

Rental income refers mainly to the subsidies, following by rental of the electricity poles by the distribution 

subsidiary to telecom operators.

During 2023, the Group recognized subsidies on the supply segment recognized subsidies of RON 3,306,839 

thousand, out of which RON 2,614,535 thousand outstanding receivable from the Ministry of Energy following 

the application of the electricity and natural gas price capping and compensation mechanism, approved 

by Order no.118/2021 with subsequent amendments and GEO no.27/2022, the latter being amended by GEO 

Electricity distribution and supply

Supply of natural gas

Construction revenue related to concession agreements (Note 23)

Repairs, maintenance and other services rendered

Proceeds from sale of green certificates

Re-connection fees

Consulting services

Sales of merchandise

Total

2023

8,457,651

191,339

1,018,912

74,077

3,212

14,362

106

56,934

2022

8,991,986

322,320

611,294

45,937

3,741

3,824

-

30,794

9,816,593

10,009,896

In respect to the timing of the revenue recognition, most of the Group’s services provided are transferred 

to the customer over time, only a small part amounting to RON 2,921 thousand (2022: RON 2,694 thousand) 

being transferred at a point in time (e.g. metering services provided by the distribution companies, 

no.119/2022.

(b) Other operating expenses

Utilities

Other taxes and duties 

IT services

Fines and penalties

Printing and distribution of invoices services

providing periodic data analysis to the customer for certain taxes collected on behalf of them).

Meters reading expenses

10  Electricity, natural gas and merchandise purchased

Electricity purchased

Green certificates purchased

Natural gas purchased

Cost of merchandise

Total

2023

8,238,811

543,359

221,255

54,551

2022

9,380,690

609,107

493,847

23,165

9,057,976

10,506,809   

The cost of electricity and natural gas purchased includes the cost of the green certificates purchased 

by the supply subsidiary which has a legal obligation to purchase green certificates from producers of 

electricity from renewable sources, based on annual targets or quotas set by law, which are applied to 

the quantity of electricity purchased and supplied to final customers. The cost of green certificates is then 

invoiced to final customers separately from electricity tariffs.

11  Other income and expenses

(a) Other income

Subsidies related to electricity supply (Note 18)

Rental income

Late payment penalties from customers

Other

Total

2023

3,306,839

92,332

71,075

28,307

2022

2,687,131

92,486

52,110

9,236

3,498,553

2,840,963

Bank fees

Security services

Advertising and publicity expenses

Penalties to State budgets

Cash collection services

Postage and telecommunication services

Call centre services

Rent 

Other

Total

12. Net finance income/(cost)

Interest income 

Other finance income

Total finance income

Interest expense

Interest cost for employee benefits (Note 15)

Foreign exchange losses, net

Total finance costs

Net finance cost

2023

63,138

51,549

51,151

48,404

36,341

29,831

26,635

19,795

14,654

14,482

13,148

12,047

12,461

11,448

26,315

2022

56,643

46,950

34,929

12,948

44,092

39,748

10,836

17,549

7,440

2,135

14,632

18,998

10,929

21,010

14,132

431,399

352,971

2023

3,270

155

3,425

2022

2,847

6,871

9,718

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(156,985)

(10,043)

(6,714)

(297,220)

(293,795)

(7,354)

(10,374)

(174,713)

(164,995)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (OMFP 2844/2016)FOR THE YEAR ENDED 31 DECEMBER 20232023 ANNUAL REPORTNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (OMFP 2844/2016)2023 ANNUAL REPORTELECTRICA S.AFOR THE YEAR ENDED 31 DECEMBER 2023ELECTRICA S.A488

489

13  Earnings/(loss) per share 

15  Post-employment and other long-term employee benefits 

The calculation of basic and diluted earnings/(loss) per share has been based on the following profit 

The Group provides cash benefits to employees depending on seniority in the form of jubilee bonuses and 

attributable to Company’s shareholders and weighted-average number of ordinary shares outstanding:

depending on the years of service at retirement in the form of retirement bonuses. The post-employment 

Profit/(Loss) attributable to shareholders

Profit for the year attributable to the owners of the Company

Profit attributable to shareholders of the Company

Number of ordinary shares (in number of shares)

Number of ordinary shares at 31 December

2023

620,494

620,494

2022

558,954

558,954

2023

2022

339,553,004

339,553,004

and other long-term employee benefits are stipulated in the Collective Labour Contracts.

In 2023 and 2022, employee benefit obligations were computed by an independent actuary using the 

projected unit credit method with benefits calculated proportionally to the period of service.

Defined benefit liability

Other long-term employee benefits

Total

   - Current portion*

   - Non-current portion

*included in Personnel payables in Note 14

31 December 2023

31 December 2022

55,839

108,923

164,762

13,404

151,358

41,675

87,762

129,437

12,168

117,269

For the calculation of basic and diluted earnings per share, treasury shares (6,890,593 shares) were not 

treated as outstanding ordinary shares and were deducted from the number of issued ordinary shares.

(i) Movement in the defined benefit liability and other long-term employee benefits

The following tables shows a reconciliation from the opening balances to the closing balances for the 

defined benefit liability and other long-term employee benefits and its components. There are no plan 

Basic and diluted earnings/(loss) per share (RON)

14  Short-term employee benefits

Personnel payables

Current portion of defined benefit liability and other employee benefits

Social security charges 

Tax on salaries 

Total 

For details of the related employee benefit expenses, see Notes 16.

2023

1.83

2022

1.65

31 December 

31 December 

2023

70,598

12,871

31,192

5,887

2022

70,105

11,548

27,301

5,220

120,548

114,174

assets.

Defined benefit liability

Balance at 1 January

Included in profit or loss

Current service cost

Past service cost

Interest cost

Included in other comprehensive income

Remeasurements loss

   - Actuarial loss

Other

Benefits paid

Balance at 31 December 

In Romania, all employers and employees, as well as other persons, are contributors to the State social 

Other long-term employee benefits

security system. The social security system covers pensions, child benefit, temporary inability to work 

situations, risks of work accidents and professional diseases and other social assistance services, 

redundancy payments and incentives granted to employers for creating new job.

Balance at 1 January

Included in profit or loss

Current service cost

Past service cost

Actuarial (gain)/ loss

Interest cost 

Other

Benefits paid

Balance at 31 December 

2023

41,675

4,904

-

3,278

2022

79,078

4,893

(23,367)

3,100

11,918

(9,503)

(5,936)

55,839

2023

87,761

7,580

-

16,637

6,764

(9,819)

108,924

(12,526)

41,675

2022

88,356

7,786

(353)

(4,509)

4,256

(7,775)

87,761

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (OMFP 2844/2016)FOR THE YEAR ENDED 31 DECEMBER 20232023 ANNUAL REPORTNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (OMFP 2844/2016)2023 ANNUAL REPORTELECTRICA S.AFOR THE YEAR ENDED 31 DECEMBER 2023ELECTRICA S.A490

491

Defined benefits refer to the retirement bonuses granted according to the seniority within the Group and 

Termination benefits

other long-term benefits refer to the jubilee bonuses granted for seniority.

(ii) Actuarial assumptions

The following were the main actuarial assumptions at each reporting date:

(a) Macroeconomic assumptions: 

a. Termination benefits for individual lay-offs at the Group’s initiative 

In accordance with the Collective Labour Contracts concluded between the Group and the Unions, when 

individual labour contract are terminated at the Group’s initiative, the Group pays termination benefits to 

the employees depending on their period of service, as follows:

•  inflation. The actuary used information from the National Commission for Strategy and Prognosis:

Period of service

Year

2023

2024

2025

2026

2027+

Valuation date

31 December 2023

Valuation date

31 December 2022

10.4%

4.8%

3.5%

3%

2.5%

7.5%

4.9%

3%

2.5%

2.5%

•  the discount rate used is based on the yield of the Romanian Government bonds at the reporting date, 

therefore the weighted average discount rate is 6% for the year 2023 (2022: 8.1%);

•  taxes and social charges are those in force as at the reporting date.

(b) Group specific assumptions: 

•  For the year 2023 were taken into consideration the salaries’ growth rates budgeted by the Group. 

Starting with the year 2024, salaries’ growth is forecasted at the inflation rate;

•  Employees’ turnover: based on historical data;

•  Jubilee and retirement bonuses granted based on seniority as per the collective labour contracts, as 

1 – 2 years

2 – 5 years

5 – 10 years

10 – 20 years

More than 20 years

No of gross monthly base salaries

31 December 2023

31 December 2022

2

3

4

5

8

2

3

4

5

8

b. Termination benefits for collective lay-offs at the Group’s initiative:

For collective lay-offs, according to the Collective Labour Contracts, the Group pays termination benefits to 

the employees depending on their period of service, as follows:

Period of service

1 – 3 years

3 – 5 years

5 – 10 years

10 – 20 years

More than 20 years

No of gross monthly base salaries

31 December 2023

31 December 2022

3

6

7

11

16

3

6

7

11

16

follows:

Jubilee bonus based on years of service in the Group

Seniority

20 years

30 years

35 years

40 years

45 years

No of gross monthly base salaries

The above mentioned stipulations do not apply to employees with individual labour contract concluded 

for a determined period. The above stipulations do not apply to employees that obtained other higher 

cumulative salary compensation rights, provided by legal regulations regarding the Group’s reorganization 

31 December 2023

31 December 2022

and restructuring. Employees who are re-employed within the Group after lay-off are not entitled to the 

1

2

3

4

5

1

2

3

4

5

above-mentioned benefits.

Retirement bonus based on years of service in the Group 

Seniority

Between 8 and 10 years

Between 10 and 25 years

More than 25 years

No of gross monthly base salaries

31 December 2023

31 December 2022

2

3

4

2

3

4

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (OMFP 2844/2016)FOR THE YEAR ENDED 31 DECEMBER 20232023 ANNUAL REPORTNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (OMFP 2844/2016)2023 ANNUAL REPORTELECTRICA S.AFOR THE YEAR ENDED 31 DECEMBER 2023ELECTRICA S.A 
492

493

(iii) Sensitivity analysis

17   Income taxes

Significant actuarial assumptions for the determination of the benefit obligation are the discount rate, 

In determining the amount of current and deferred tax, the Group takes into account the impact of 

expected salary increase and retirement age. The sensitivity analysis below has been determined based on 

uncertain tax positions and whether additional taxes and interest may be due. This assessment relies 

reasonably possible changes of the respective assumptions occurring at the end of the reporting period, 

on estimates and assumptions and may involve a series of judgments about future events. The Group 

while holding all other assumptions constant.

Discount rate

Salary growth

Retirement age

Increase by 1%

Decrease by 1%

2023

(11,301) 

2022

(9,237)

2023

12,675

2022

8,611

13,195  

9,415

(11,930)

(10,049)

Increase by 1 year

Decrease by 1 year

2023

1,135 

2022

812

2023

(1,135)

2022

(812)

The sensitivity analysis presented above may not be representative of the actual change in the benefit 

obligation as it is unlikely that the changes in assumptions would occur in isolation of one another as some 

of the assumptions may be correlated. In presenting the above sensitivity analysis, the present value of the 

benefit obligation has been calculated using the projected unit credit method at the end of the reporting 

period, which is the same as that applied in calculating the benefit obligation liability recognized in the 

statement of financial position.

16  Employee benefit expenses

Average number of employees

Number of employees at 31 December

Wages and salaries*

Social security contributions

Meal tickets

Termination benefits

Total employees benefits for the year

Capitalised employee benefit expenses

Total employees benefits in the statement of profit or loss

2023

7,676

7,960

2023

911,995 

27,163 

46,583 

1,015 

986,756

(24,691) 

962,065 

2022

7,760

7,874

2022

790,425

20,694

33,187

267

844,573

(21,151)

823,422

* Wages and salaries includes also current service cost, defined benefits and other long-term employee benefits 

Management remuneration is disclosed in Note 31 b) Related parties.

considers that the accounting records for taxes due are adequate for all open tax years, based on 

assessment made by management taking into account various factors, including the interpretation of 

tax legislation and previous experience. New information may become available that causes the Group to 

change its judgment regarding the adequacy of existing tax liabilities; such changes to tax liabilities will 

impact tax expense in the period when such a determination is made.

(i) Amounts recognised in profit or loss

Current tax expense

Deferred tax expense

Total expense related to income tax 

(ii) Amounts recognised in other comprehensive income

2023

Tax 

2022

2,576

102,502

105,078 

2023

78,819

18,095

96,914

2022

Tax 

Revaluation of property, plant 
and equipment

Remeasurement of defined 
benefit liability 

Total

Before tax

(expense)/

Net of tax

Before tax

(expense)/

Net of tax

benefit

benefit

85,510

(13,699)

71,811

-

-

-

(11,918) 

1,907 

(10,011) 

9,503

(1,479)

8,024

73,592 

(11,792) 

61,800 

9,503

(1,479)

8,024

(iii) Reconciliation of effective tax rate

Profit before tax 

Tax using Company’s domestic tax rate

Non-deductible expenses

Non-taxable income

Deduction of legal reserves

Other tax effects

Recognition of tax effect of previously unrecognised tax losses

Income tax expense

2023

2022

717,294

663,923

16%

114,767

16%

106,230

2%

-4%

0%

-1%

0%

17,338

(25,426)

(3,165)

(5,622)

(978)

4%

-3%

-1%

0%

-1%

28,843

(22,083)

(3,388)

(137)

(4,387)

14%

96,914

16%

105,078

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (OMFP 2844/2016)FOR THE YEAR ENDED 31 DECEMBER 20232023 ANNUAL REPORTNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (OMFP 2844/2016)2023 ANNUAL REPORTELECTRICA S.AFOR THE YEAR ENDED 31 DECEMBER 2023ELECTRICA S.ADeferred tax assets have not been recognised in respect of the certain tax losses generated by the 

Company, because it is not probable that future taxable profit will be available against which the entity 

generating it can use the benefits therefrom.

494

495

(iv) Movement in deferred tax balances

(v) Unrecognised deferred tax assets 

2023

Net balance 
at 1 January 
2023

Recognised 
in profit or 
loss 

Recognised 
in other 
comprehensive 
income

Net

Deferred tax 
assets

Deferred 
tax 
liabilities

Balance at 31 December 2023

Property, plant and equipment

36,980

8,837

13,699

59,516

208,015 

21,679 

-

229,694

-

-

59,516

229,694

(21,101)

(4,236)

(1,907)

(27,244)

(27,244)

(30,930)

(6,068)

5,370

1,712

(4,521)

(15,267)

-

-

-

(25,560)

(25,560)

(4,356)

(4,356)

(19,788)

(19,788)

-

-

-

-

182,375 

18,095

11,792

212,262

(76,948)

289,210

-

-

-

-

44,544

(44,544)

Tax losses

18  Trade receivables

Trade receivables, gross

Bad debt allowance 

Total trade receivables, net

Trade receivables from related parties are presented in Note 31.

182,375

18,095

11,792

212,262

(32,404)

244,666

Trade receivables, gross, comprise:

Balance at 31 December 2022

2022

Net balance 
at 1 January 
2023

Recognised 
in profit or 
loss 

Recognised 
in other 
comprehensive 
income

Net

Deferred 
tax assets

Property, plant and equipment

39,838

(2,858)

187,500

20,515  

-

-

36,980

208,015 

-

-

Electricity distribution and supply 

Late payment penalties receivable

Customers with judicial execution titles 

Repairs, maintenance and other services 

Other

Total trade receivables, gross

2023

318,176

2022

337,136

31 December 2023

31 December 2022

3,180,660

(640,218)

2,540,442

3,118,691

(652,689)

2,466,002

31 December 2023

31 December 2022

2,603,238

2,482,266

89,346

333,682

20,904

133,490

80,658

347,667

11,850

196,250

3,180,660

3,118,691

(23,940)

1,360

1,479

(21,101)

(21,101)

(24,732)

(6,198)

(95,972)

89,904

(4,299)

(222)

-

-

-

(30,930)

(30,930)

(6,068)

(6,068)

(4,521)

(4,521)

78,395

102,501  

1,479

182,375  

(62,620)

244,995  

-

-

-

-

32,440

(32,440)

Following the adoption of the Order no. 118/2021 with subsequent amendments and GEO no. 27/2022, the 

latter one being amended by GEO no. 119/2022, concerning the capping and compensation mechanism, 

part of the receivables due to the subsidiary Electrica Furnizare S.A. for the sale of electricity and gas to final 

consumers will be recovered from the Romanian State through National Agency for Payments (domestic 

consumers) and Social Inspection and Ministry of Energy (non-household consumers). 

Electricity distribution and supply

On 31 December 2023, the amounts estimated to be received from the Ministry of Energy for non-household 

consumers are 10,130 thousand RON (31 December 2022: 20,480 thousand RON) and from the National 

78,395

102,501

1,479

182,375

(30,180)

212,555 

Agency for Payments and Social Inspection for household consumers are 36,496 thousand RON (31 

December 2022: 21,043 thousand RON). The receivables are booked under the caption “Electricity distribution 

and supply”.

Grants to be received

As at 31 December 2023, the estimated amount for subsidies to be received from the Ministry of Energy 

is RON 2,595,554 thousand (31 December 2022: RON 1,280,788 thousand) and from County Agency for 

Intangible assets related to 
concession agreements

Employee benefits

Impairment of trade receivables

Tax loss carried forward

Other items

Tax liabilities/(assets) before 
set-off

Set off of tax

Net tax liabilities/(assets) 

Intangible assets related to 
concession agreements

Employee benefits

Impairment of trade receivables

Tax loss carried forward

Other items

Tax liabilities/(assets) before 
set-off

Set off of tax

Net tax liabilities/(assets) 

Deferred
 tax 
liabilities

36,980

208,015 

-

-

-

-

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (OMFP 2844/2016)FOR THE YEAR ENDED 31 DECEMBER 20232023 ANNUAL REPORTNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (OMFP 2844/2016)2023 ANNUAL REPORTELECTRICA S.AFOR THE YEAR ENDED 31 DECEMBER 2023ELECTRICA S.A496

497

Payments and Social Inspection is RON 18,981 thousand. From the total amount of subsidies to be received, 

The reconciliation between the opening balances and the closing balances of the impairment for other 

RON 1,528,679 thousand represent uncollected claims submitted to the state authorities and RON 1,085,856 

receivables is as follows:

thousand claims not yet submitted to the state authorities as at 31 December 2023.

According to the legal provisions and regulations adopted regarding the recovery of these subsidies, 

the amounts should be recovered within 40 days after submission of the required documentation to the 

National Agency for Payments and Social Inspection or the Ministry of Energy, as the case may be.

The amounts should be recovered within 40 days of submission of the required documentation to the 

National Agency for Payments and Social Inspection or the Ministry of Energy, as appropriate. Claims are 

Loss allowance 

Balance as at 1 January

Decrease in loss allowance

Balance as at 31 December

2023

20,480

(253)

20,227

2022

20,124  

356

20,480

recorded under the line “Electricity distribution and supply”.

20  Cash and cash equivalents

The reconciliation between the opening balances and the closing balances of the impairment for trade 

receivables in the form of lifetime expected credit losses is as follows:

Lifetime expected credit losses

Balance as at 1 January

Loss allowance recognized 

Decrease in loss allowance

Amounts written off

Balance as at 31 December

2023

652,689

111,271

(35,198)

(88,544)

640,218

2022

980,858

146,203

(34,248)

(440,124)

652,689

The aging of trade receivables is presented in Note 30.

The Group has identified 5 clusters of customers based on shared risk characteristics: 3 separate clusters 

for the distribution subsidiaries and 2 clusters (households and non-households) for the supply subsidiary.

Bank current accounts

Call deposits

Cash in hand

Total cash and cash equivalents in the consolidated statement of 
financial position

31 December 2023

31 December 2022

223,213

153,997

5

377,215

141,656

193,219

12

334,887

In the context of the consolidated statement of cash flows, non-cash activity includes the netting of trade 

receivables and trade payables in the amount of RON 160,104 thousand in 2023 (31 December 2022: RON 

53,106 thousand).

21  Inventories

As at 31 December 2023 and 31 December 2022, inventories are as follows:

A significant part of the bad debt allowances refers to clients in litigation, insolvency or bankruptcy 

procedures, many of them being older than five years. The Group will derecognize these receivables 

together with the related allowances after the finalization of the bankruptcy process. The amounts written-

Spare parts

off in 2022 relates to Oltchim (please see Note 18 from prior year financial statements).

Consumables and other materials

The Group has considered all the information available without undue costs (including forward looking 

Natural gas

information) that may affect the credit risk of its receivables since original recognition, thus recording a bad 

Other inventories

31 December 2023

31 December 2022

35,057

50,060

25,536

13,692

(8,686)

29,589

53,527

23,319

17,004

(9,467)

115,659

113,972

Allowance for impairment of inventories

Total inventories

Inventories include mainly spare parts, consumables and the natural gas storage (applicable only for the 

supply subsidiary) that was set up according to ANRE’s regulations. Spare parts refer mainly to items such 

as cables, conductors, sockets, switches which are used for the distribution network.

 As at 31 December 2023, the remaining quantity of natural gas stored is of MWh 143,870 (31 December 2022: 

MWh 107,472), amounting to RON 25,536 thousand (31 December 2022: RON 23,319 thousand).

debt allowance in amount of RON 111,271 thousand.

19  Other receivables

VAT receivable

Receivables from EU funds

Other receivables

Lifetime expected credit losses

Total other receivables, net

31 December 2023

31 December 2022

12,762

45,194

56,103

(20,227)

93,832

13,024

13,932

120,777

(20,480)

127,253

Other receivables include mainly guarantees from energy suppliers and receivables to be recovered from 

state authorities in respect to medical leave indemnities.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (OMFP 2844/2016)FOR THE YEAR ENDED 31 DECEMBER 20232023 ANNUAL REPORTNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (OMFP 2844/2016)2023 ANNUAL REPORTELECTRICA S.AFOR THE YEAR ENDED 31 DECEMBER 2023ELECTRICA S.A498

499

22  Property, plant and equipment

The movements in property, plant and equipment in 2023 and 2022 are as follows:

Land and land 
improvements

Buildings 

Equipment

Vehicles, 
furniture 
and office 
equipment

Construction 
in progress

 Total 

252,798

202,557

91,801

96,950

29,188

673,297

Net carrying amounts

At 1 January 2022

At 31 December 2022

At 31 December 2023

Land and land 
improvements

Buildings 

Equipment

Vehicles, 
furniture 
and office 
equipment

Construction 
in progress

 Total 

252,798

189,079

251,835

185,217

47,213

44,132

301,483 

216,466 

39,873 

5,775

2,089

455

10,554

505,419

16,117

499,390

36,718 

594,994 

Gross carrying amount

Balance at 31 December 2021

Reclassification of assets held for 
sale

Balance at 1 January 2022

Additions

Transfer from construction in 
progress

Disposals

Acquisition of subsidiary 

Balance at 31 December 2022

Additions

Transfer from construction in 
progress

Disposals

Effect of revaluation recognised in 
other comprehensive income

Effect of revaluation recognised in 
profit or loss

Decrease in gross value through 
reversal of accumulated 
depreciation

Balance at 31 December 2023

1,024

4,115

-

-

-

5,139

Tangible assets include mainly land, buildings and equipment.

253,822

206,672

91,801

96,950

29,188

678,433

As at 31 December 2023, the Group carried out a revaluation to fair value of property, plant and equipment 

1,179

-

85

1,133

1,977

2,386

804

269

5,475

9,435

(3,778)

95

(3,276)

(1,093)

(1,844)

(838)

(9)

(7,060)

consisting of land, land improvements and buildings. The revaluation was carried out by an independent 

chartered valuer Darian DRS S.A.

As a result of the revaluation, the gain recorded in the Consolidated Statement of Comprehensive Income 

was RON 85,510 thousand and the gain recorded in the Consolidated Statement of Profit or Loss was RON 

25

-

-

-

3,875

3,900

2,081 thousand.

251,835

206,712

94,320

97,185

34,751

684,803

763 

-

(576) 

936

124

-

46,999

38,511

2,462

(381)

-

(23,907)

239

1,862 

371

110

21,872 

24,181 

-

2,096 

Measurement of fair value

The Group’s land, land improvements and buildings are stated at their revalued amounts, being the 

fair value at the date of revaluation, less any subsequent accumulated depreciation and subsequent 

(5,236) 

(1,308) 

(1,271) 

(8,391) 

accumulated impairment losses. The fair value measurements of the Group’s land, land improvements and 

-

-

-

-

-

-

-

-

-

85,510

2,081

(23,907)

buildings as at 31 December 2023 were performed by Darian DRS S.A., an independent valuer not related to 

the Group. Darian DRS S.A. is member of the National Association of Authorised Romanian Valuers and has 

appropriate qualifications and recent experience in the fair value measurement of properties in the relevant 

locations. The valuation conforms to International Valuation Standards and was based on recent market 

transactions on arm’s length terms for similar properties, whenever possible and discounted cash-flows 

method.

301,483 

221,995 

91,185 

96,358 

55,352 

766,373 

There were no significant changes to the valuation technique in the period between the current revaluation 

performed on 31 December 2023 and the previous one performed on 31 December 2020.

Accumulated depreciation and impairment losses

Balance at 1 January 2022

Depreciation

Accumulated depreciation of 
disposals

Impairment loss

Balance at 31 December 2022

Depreciation

Accumulated depreciation of 
disposals

Cancellation of accumulated 
depreciation 

Balance at 31 December 2023

-

-

-

-

-

-

-

-

-

44,588

91,175

18,634

167,875

13,478

8,022

7,378

(1,778)

(5)

-

4,515

(594)

-

-

-

-

19,915

(2,372)

(5)

21,495

50,188

95,096

18,634

185,413

7,450 

6,499 

2,442 

-

(5,375) 

(1,635) 

(23,416)

-

-

-

-

-

16,391 

(7,010) 

(23,416)

5,529 

51,312 

95,903 

18,634 

171,378 

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (OMFP 2844/2016)FOR THE YEAR ENDED 31 DECEMBER 20232023 ANNUAL REPORTNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (OMFP 2844/2016)2023 ANNUAL REPORTELECTRICA S.AFOR THE YEAR ENDED 31 DECEMBER 2023ELECTRICA S.A500

501

The following table shows the valuation techniques used in measuring fair values (Level 3), as well as the 

23  Intangible assets 

significant unobservable inputs used.

Category

Valuation technique

Significant 
unobservable inputs

Land and land 
improvements

Market approach

The fair value is estimated based on selling price 
per square meter of land of similar characteristics 
(i.e. ownership, legal limitations, financing 
and selling conditions, location, physical and 
economical properties and best use). The market 
price is mainly based on recent transactions.

•  Adjustment for 

liquidity, location, 
size.

Buildings

Buildings were evaluated using the following 
methods, depending on the best use and the 
availability and credibility of available market 
information:

The income approach:

The income approach is based on the 
determination of the reproducible annual flow, 
derived from the rental of the property and a 
determination of the capitalization rate and 
implicitly the multiplier factor.

Market approach

The market approach is based on the selling 
price per square meter for buildings with similar 
characteristics (i.e. ownership, legal limitations, 
financing and selling conditions, location, physical 
and economical properties, and best use), 
adjusted for liquidity, location, size etc.

The cost approach

It was applied for fixed assets where it was 
not possible to apply the market or income 
approach, as is the case with rural housing. The 
cost approach assumes that the maximum value 
of a good for an informed buyer is the amount 
needed to buy or build a new good with equivalent 
utility. When the good is not new, all the forms of 
depreciation that can be attributed to the good 
must be deducted (deducted) from the current 
new cost, until the evaluation date.

•  Adjustment for 

liquidity, location, 
size.

Office space rent

•  Occupancy rates 

(between 85% and 
90%)

•  Capitalisation rates 

(between 7% and 8%)

•  Annual rent per sqm 
(between 15 and 20 
EUR/sqm), depending 
on location;

Commercial space rent

•  Occupancy rates 

(between 80% and 
90%)

•  Capitalisation rates 

(between 7% and 8%)

•  Annual rent per sqm 
(between 10 and 60 
EUR/sqm), depending 
on location

Inter-relationship 
between key 
unobservable 
inputs and fair value 
measurement

The estimated fair 
value would increase/
(decrease) if:

•  Adjustment for 

liquidity, location or 
size would be lower/
(higher) 

The estimated fair 
value would increase/
(decrease) if:

•  Adjustment for 

liquidity, location 
or size would be     
lower/(higher)

•  Occupancy rates 

were higher/(lower) 

•  Yield rates were 
lower/(higher)

•  Annual rent per sqm 
was higher/(lower)

Intangible assets include mainly intangible assets related to distribution service concession agreements 

recorded in accordance with IFRIC 12 “Service Concession Arrangements”, as well as licenses and costs of 

SAP ERP implementation, customer management and billing system and other software, as follows: 

Intangible 
assets related 
to concession 
agreements

Intangible 
assets from 
capitalization

Software 
and 
licenses

Intangible 
assets in 
progress

Total 

Gross book value

Balance at 1 January 2022

Additions

Transfers from intangible assets 
in progress

Disposals

Additions

Transfers from tangible assets in 
progress

Disposals

10,132,347

-

193,401

611,294

989,291

7,694

-

-

-

-

-

-

-

-

2

(1,006)

200,091

680

(11,106) 

210,424 

1,909

140

(2)

-

2,047

994

(680)

10,327,657

1,608,419

-

(1,006)

11,935,070

1,059,282 

-

-

(11,106) 

2,361 

12,983,246 

Balance at 31 December 2022

10,743,641

989,291

1,018,912 

18,617 

20,759 

Balance at 31 December 2023

11,762,553 

1,007,908 

Accumulated amortization and 
impairment losses 

Balance at 1 January 2022

Amortization

Accumulated amortization of 
disposals

Balance at 31 December 2022

Amortization

Accumulated amortization of 
disposals

Balance at 31 December 2023

Net carrying amounts

At 1 January 2022

At 31 December 2022

At 31 December 2023

4,617,790

449,987

-

186,327

37,734

3,960

-

-

(1,005)

5,067,777

37,734

189,282

474,246 

199,240 

6,171

-

-

(10,490) 

5,542,023 

236,959 

184,963 

-

-

-

-

-

-

-

4,804,117

491,681

(1,005)

5,294,793

679,657 

(10,490) 

5,963,960 

5,514,557

5,675,864

6,220,530 

-

951,557

770,934 

7,074

10,809

25,461 

1,909

2,047

2,361 

5,523,540

6,640,277

7,019,286 

The Group applies IFRIC 12 for the accounting of the transactions under these concession contracts. (See 

further details in Notes 4, 6(d) and 6(l)).

For the year ended 31 December 2023, the Group has recognized construction revenue related to the 

concession agreements of RON 1,018,912 thousand (2022: RON 611,294 thousand) and construction costs of 

RON 976,436 thousand (2022: RON 593,490 thousand).

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (OMFP 2844/2016)FOR THE YEAR ENDED 31 DECEMBER 20232023 ANNUAL REPORTNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (OMFP 2844/2016)2023 ANNUAL REPORTELECTRICA S.AFOR THE YEAR ENDED 31 DECEMBER 2023ELECTRICA S.A502

503

The main information related to the current concession contracts agreements and the intangible assets 

During 2023, capitalized costs with own technological consumption were RON 18,617 thousand, related to the 

amounts recognized for each network distribution area is summarized below:

Muntenia Nord distribution area, as shown in the table below:

Network distribution 
areas

Contract 
date

Concession 
period 
(years)

Contract 
expiry date

Concession 
period 
remaining 
(years)

Renewal 
option

Muntenia Nord area

Transilvania Nord area

Transilvania Sud area

2005

2005

2005

49

49

49

2054

2054

2054

33

33

33

Yes

Yes

Yes

Total

Net 
carrying 
amount 
at 31 
December 
2023

Net 
carrying 
amount 
at 31 
December 
2022

2,197,712 

1,968,811

2,007,855 

1,890,409

2,014,963 

1,816,644

6,220,530

5,675,864

The concession contracts can be prolonged for a period up to half of the initial established period of 49 

years.

The investments in relation to the development and modernization of the infrastructure incurred in 2023 

refers mainly to:

•  Modernization of the current transformer points and stations, current underground and overhead power 

lines in amount of RON 484,220 thousand (2022: RON 139,487 thousand);

•  Investments related to improvements for electricity distribution network in amount of RON 81,660 

thousand (2022: RON 79,132 thousand).

•  Significant construction works of new transformer stations, new underground and overhead power lines 

in amount of 2023: RON 144,980 thousand (2022: RON 148,404 thousand);

•  Acquisition of own car fleet, including utilities vehicles and specialized vehicles in amount of RON 0 

thousand; (2022: RON 58,256 thousand);

•  Modernization and inclusion in SCADA (which is an automatic control system which monitors the 

equipment) of transformers points and stations, in amount of RON 24,880 thousand (2022: RON 164 

thousand);

During 2022 and 2023, the additional expenses for actual energy costs as compared with the ex-ante ANRE 

prices recognised in distribution tariffs are capitalised as intangible assets. These costs will be recuperated 

in tariffs in 5 years.

Network distribution 
areas

Net carrying amount at 
31 December 2022

Intangible asset 
01 Oct-31 Dec 2023 (gross 
value)

Amortisation 
during 2023

Net carrying amount 
at 31 December 2023

Muntenia Nord area

Transilvania Nord area

Transilvania Sud area

Total

374,613

329,937

247,007

951,557

24  Investments in associates

18,617

-

-

78,045

65,965

55,230

18,617

199,240

315,185

263,972

191,777

770,934

On 28 July 2021 and on 7 December 2021, Electrica SA concluded four agreements for the sale-purchase 

of shares in four project companies having as main activity the production of electricity from renewable 

sources. The sale-purchase agreements concluded, mention the fact that in the first stage the Group 

acquires 30% of the share capital of the four companies, remaining that in the following stages, to acquire 

the remaining 70% of the share capital after the conditions provided in the sale-purchase agreements will 

be fulfilled. By the end of 31 December 2023, three of the project companies were acquired by at least 60% 

(please see Note 1), therefore they are accounted as subsidiaries, the other one is as follows:

•  Crucea Power Park SRL. develops the wind project „Crucea Est”, with a projected installed capacity of 

121 MW and a projected electricity storage capacity of 60 MWh (15 MW x 4h), located outside the Crucea 

area, Constanta County. The estimated purchase price for the „Crucea Est” wind project is 70 thousand 

EUR/MW for the aforementioned capacity, totalling the amount of 8,470 thousand EUR. On 28 July 2021, 

Electrica SA paid the amount of EUR 2,541 thousand representing 30% of the project value, respectively 

30% of the shares of Crucea Power Park SRL. On 15 May 2023, Electrica acquired a further 10% of the 

shares and voting interests in Crucea Power Park S.R.L. As a result, the Group’s shareholding increased 

from 30% to 40%.

Considering the holding percentage of 40%, as at 31 December 2023, the entity is accounted for using the 

equity method in these consolidated financial statements as provided in the Group’s accounting policies in 

Note 6. 

The cost of the investments at acquisition date, totalling the amount of RON 12,500 thousand, is detailed as 

The capitalised costs with own technological consumption are recognized for each network distribution 

follows: 

area, the first asset being recorded on 30 September 2022 and the second one on 31 December 2022, is 

summarized below:

Network distribution 
areas

Muntenia Nord area

Transilvania Nord area

Transilvania Sud area

Total

Intangible asset 
01 Jan-30 Sep 2022
 (gross value)

Intangible asset 
01 Oct-31 Dec 2022 
(gross value)

Amortisation 
during 2022

Net carrying amount 
at 31 December 2022

Acquisition date

Percentage ownership and voting rights at acquisition date

302,413

258,513

193,881

754,807

87,321

84,342

62,820

234,483

15,121

12,919

9,694

37,734

374,613

329,937

247,007

951,557

Net assets at acquisition date

Group’s share of net assets 

Goodwill

Cost of investment at acquisition date

Crucea Power Park S.R.L.

31.07.2021

30%

(242)

(73)

12,573

12,500 

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (OMFP 2844/2016)FOR THE YEAR ENDED 31 DECEMBER 20232023 ANNUAL REPORTNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (OMFP 2844/2016)2023 ANNUAL REPORTELECTRICA S.AFOR THE YEAR ENDED 31 DECEMBER 2023ELECTRICA S.A504

505

Summarised financial information in respect of the Group’s associate is set out below:

The holders of ordinary shares are entitled to receive dividends as declared and are entitled to one vote per 

Crucea Power Park S.R.L.

                               31.12.2023

share in the shareholders’ meetings of the Company, except for the 6,890,593 treasury shares purchased by 

the Company in July 2014 in order to stabilize the price. All shares rank equally and confer equal rights to the 

net assets of the Company’s, except for treasury shares.

Non-current assets

Current assets

Non-current liabilities

Current liabilities

Net assets

Reconciliation to carrying amounts:

Opening net assets at acquisition date

Additions net assets/liabilities

Loss for the period

Closing net assets 31.12.2023

Reconciliation of the financial information summarized above with the net accounting value of the 

participation in the associated entity recognized in the consolidated financial statements:

9,199

1,187

(10,376)

(45)

(36)

(246)

293

(83)

(36)

The Company recognizes changes in share capital only after their approval in the General Shareholders 

Meeting and their registration by the Trade Register. The contributions made by the shareholders which are 

not yet registered with the Trade Register at year end are recognized as pre-paid capital contributions from 

shareholders.

The share premium resulted at IPO was RON 171,128 thousand. The transaction costs of RON 68,079 thousand 

were deducted from the share premium.

Following the SPO that took place in November 2019, the share capital of Electrica SA was increased by in 

kind and in cash contribution, with the amount of RON 5,037 thousand, from the amount of RON 3,459,399 

thousand to the amount of RON 3,464,436 thousand, by issuing a number of 503,668 new nominative and 

dematerialized shares with a nominal value of 10 RON/share.

The costs generated by the secondary public offering were in amount of RON 964 thousand. Also, the 

Company recorded gains referring to share issue of RON 2,186 thousand, resulting from the difference 

between the contribution value of the plots of land and their value recorded as pre-paid capital 

contributions in kind from shareholders. 

Closing net assets of associates 31.12.2023

Group’s share in associates %

Group’s share of net assets as at 31.12.2023

Goodwill

Carrying amount of interest in associate 31.12.2023

Crucea Power Park S.R.L.

(b) Treasury shares reserve

(36)

40%

(14)

16,652

16,638

In July 2014, the Company purchased 5,206,593 ordinary shares and 421,000 Global Depositary Receipts, 

equivalent to 1,684,000 shares (totalling 6,890,593 shares). The total amount paid for acquiring the shares 

and Global Depositary Receipts was RON 75,372 thousand.

(c) Revaluation reserve

The reconciliation between opening and closing balance of revaluation reserve is as follows:

The share loss in amount of RON 39 thousand for the period was recognized in the consolidated statement 

of profit and loss for the year ended as at 31 December 2023.

25  Capital and reserves

(a) Share capital and share premium

The issued share capital in nominal terms consists of 346,443,597 ordinary shares as at 31 December 2023 

(31 December 2022: 346,443,597) with a nominal value of RON 10 per share. As of 4 July 2014, after the Initial 

Public Offering (“IPO”), the Company’s shares are listed on the Bucharest Stock Exchange and the Global 

Depositary Receipts are listed on the London Stock Exchange. 

The shares owned by the Company’s shareholders that are traded on the London Stock Exchange are the 

global depositary receipts (GDRs). A global depositary receipt represents four shares. The Bank of New 

York Mellon is the depositary bank for these securities. The GDRs’ weight in Electrica’s total share capital 

diminished following the Initial Public Offering, reaching a level of 0.7842% at the end of 2021 as compared to 

10.17% at 4 July 2014.

Balance at 1 January

Revaluation reserve for tangible fixed assets

Deferred tax relating to the revaluation reserve

Release of revaluation reserve to retained earnings corresponding to 
depreciation and disposals of property, plant and equipment

Balance as at 31 December

2023

2022

92,117

85,510

(13,699)

102,829

-

-

(4,392)

(10,712)

159,536

92,117

As at 31 December 2023, the Group has revalued its land, land improvements and buildings to fair value. The 

previous revaluation was carried out on 31 December 2020 (see note 22). 

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (OMFP 2844/2016)FOR THE YEAR ENDED 31 DECEMBER 20232023 ANNUAL REPORTNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (OMFP 2844/2016)2023 ANNUAL REPORTELECTRICA S.AFOR THE YEAR ENDED 31 DECEMBER 2023ELECTRICA S.A506

507

(d) Legal reserves

Electricity suppliers are mainly state-owned electricity producers, as detailed in Note 31, but also other 

Legal reserves are set up as 5% of the gross profit for the year in the statutory individual financial 

statements of the companies within the Group, until the total legal reserves reach 20% of the paid-up 

Other suppliers include suppliers of services, materials, consumables, etc.

participants to the electricity market. 

nominal share capital of each company, according to the legislation. These reserves are deductible for 

income tax purposes and are not distributable.

27  Other payables 

Balance at 1 January 2022

Set-up of legal reserves

Balance at 31 December 2022

Set-up of legal reserves

Balance at 31 December 2023

(e) Dividends

Legal reserves

408,405

21,178

429,583

19,780

449,363

VAT payable

Liabilities towards the State

Other liabilities

Total 

31 December 2023

31 December 2022

 Current

Non-current

Current

Non-current

588,814

33,372

412,898

-

-

565,075

11,733

37,161

290,728

1,035,084

37,161

867,536

-

-

72,432

72,432

Other liabilities include mainly guarantees, sundry creditors, connection fees, habitat tax and cogeneration 

contribution. Other non-current liabilities refer to guarantees from customers related to electricity supply.

28  Provisions

Romanian companies may distribute dividends from statutory profits, according to the separate financial 

statements prepared in accordance with Romanian accounting regulations.

The dividends declared by the Company in 2023 and 2022 (from the statutory profits of previous years) are 

as follows:

To the owners of the Company

Total

2023

39,999

39,999

2022

152,799

152,799

On 27 April 2023 the General Shareholders Meeting of the Company approved dividend distribution of RON 

39,999 thousand (2022: RON 152,799 thousand). The dividend per share distributed is RON 0.1178 per share 

(2022: RON 0.45 per share). When calculating the dividend per share, the Company’s repurchased own 

shares (6,890,593 shares) were not considered as outstanding shares and are deducted from the total 

number of issued ordinary shares.

Distribution of dividends

Balance at 1 January 2023

Provisions recognized

Provisions utilised

Provisions reversed 

Balance at 31 December 2023

As at 31 December 2023, provisions refer mainly to benefits upon the termination of executive directors’ 

mandate contracts in the form of a non-compete clause amounting to RON 710 thousand (31 December 

2022: RON 1,839 thousand) and for various claims and litigations involving the Group companies in amount 

of RON 40,457 thousand (31 December 2022: RON 51,862 thousand) of which the most significant was for the 

Out of the dividends declared by the Company of RON 39,999 thousand (2022: RON 152,799 thousand), 

distribution segment amounting to RON 24,345 thousand for a dispute with ANCOM.

the dividends paid were of RON 39,894 thousand (2022: RON 152,447 thousand) the remaining difference 

represents dividends uncollected by the shareholders.

26  Trade payables 

Electricity suppliers

Capital expenditure suppliers

Other suppliers

Total 

31 December 2023

31 December 2022

1,005,761

453,014

212,703

970,815

243,715

192,567

1,671,478

1,407,097

For the supply segment, starting with July 2022, from the amendment of the Performance Standard 82/2021, 

the compensations are calculated daily or weekly and paid to the customers. Thus, for the provision 

recognised until 31 December 2022, amounting to RON 11,020 thousand, a reversal of RON 8,770 thousand 

was recorded during 2023 and an additional provision of RON 1,482 thousand was set up for the period 

January-December 2023.

Tax related

Other

1,084

-

-

-

1,084

52,617

7,924

(229)

(20,229)

40,083

Total

53,701

7,924

(229)

(20,229)

41,167

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (OMFP 2844/2016)FOR THE YEAR ENDED 31 DECEMBER 20232023 ANNUAL REPORTNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (OMFP 2844/2016)2023 ANNUAL REPORTELECTRICA S.AFOR THE YEAR ENDED 31 DECEMBER 2023ELECTRICA S.A508

509

29  Bank borrowings and overdrafts

Drawings and repayments of borrowings during the year ended 31 December 2023 were as follows:

Currency

Interest rate

Maturity year

Amount (RON 
thousand)

Balance at 1 January 2023

Drawings of borrowings during the period, 
out of which:

EBRD

Exim Bank Romania

Vista Bank

CEC Bank

ERSTE Group Bank and Raiffeisen Bank

Total drawings

Accumulated interest

Payment of interest out of which paid in 2022

Reimbursements, out of which:

BRD

BRD

BRD

Banca Transilvania

Unicredit Bank

BCR

EBRD

Exim Bank Romania

Balance at 31 December 2023

Floating rate 
(2.1% + interbank rate + 
ROBOR spread)

ROBOR 3M+1.65%

ROBOR 3M+2.95%

ROBOR 3M+2.85%

ROBOR 3M +1.16%

3.99%

3.85%

3.85%

4.59%

3.85%

ROBOR 3M+1%

Floating rate 
(1.15% + interbank rate + 
ROBOR spread)

ROBOR 3M+1.65%

RON

RON

RON

RON

RON

RON

RON

RON

RON

RON

RON

RON

RON

760,713

180,000

245,890

25,000

200,000

91,768

742,658

11,125

(9,124)

187,730

20,800

14,286

11,425

17,857

9,600

18,950

11,478

83,334

1,317,642

2028

2024

2024

2026

2024

2026

2028

2028

2027

2026 

2028

2031

2024

As at 31 December 2023, respectively 31 December 2022, the bank borrowings is as follows:

Lender

Borrower

Banca Transilvania

Distributie Energie Electrica Romania 
(formerly SDEE Transilvania Sud S.A.)

UniCredit Bank

BRD

BRD

BRD

Distributie Energie Electrica Romania 
(formerly SDEE Transilvania Nord S.A.)

Distributie Energie Electrica Romania 
(formerly SDEE Muntenia Nord S.A.)

Distributie Energie Electrica Romania 
(formerly SDEE Transilvania Nord S.A.)

Distributie Energie Electrica Romania 
(formerly SDEE Transilvania Sud S.A.)

Balance at 
31 December 
2023

Balance at  
31 December 
2022

62,508

80,367

29,103

38,793

62,400

83,200

64,286

78,571

51,467

62,904

Lender

Borrower

BCR

EBRD

EBRD

Distributie Energie Electrica Romania 
(formerly SDEE Muntenia Nord S.A.)

Distributie Energie Electrica Romania

Distributie Energie Electrica Romania

CEC Bank

Electrica Furnizare S.A.

Exim Bank Romania

Distributie Energie Electrica Romania

Vista Bank

Societatea Energetica Electrica S.A.

ERSTE Group Bank 
and Raiffeisen Bank

Total

Societatea Energetica Electrica S.A.

Less: current portion of the long-term bank borrowings

Less: accumulated interest

Total long-term borrowings, net of current portion

Balance at 
31 December 
2023

Balance at  
31 December 
2022

90,542

109,785

189,971

182,773

200,000

167,825

125,000

91,768

202,983

-

-

4,110

100,000

-

1,317,642

760,713

(512,169) 

(104,400)

(11,125) 

794,348

(9,120)

647,193

Bank Borrowings description:

loan amount: RON 60,000 thousand; Interest rate: 

a)  Investment loan granted by Banca Transilvania

On 18 July 2019, Societatea de Distributie a Energiei 

Electrice Transilvania Sud S.A., currently Distributie 

Energie Electrica Romania S.A., as a borrower, 

concluded with Banca Transilvania an investment 

credit agreement with the purpose of financing 

investments in the electricity distribution network, 

according to the investment plan. Main provisions 

are: Maximum loan amount: RON 125,000 thousand; 

fixed, 3.85% per annum; Reimbursements: quarterly 

instalments until 13.11.2026; Grace period: 12 months. 

As at 31 December 2023, the outstanding balance is of 

RON 29,103 thousand, of which RON 28,800 thousand 

principal and RON 303 thousand accrued interest. 

(Outstanding balance as at 31 December 2022: RON 

38,793 thousand).

c)   Investment loan granted by BRD – Groupe Societe 

Generale

Interest rate: fixed, 4.59% per annum; Reimbursements: 

On 29 October 2019, Societatea de Distributie a Energiei 

quarterly instalments until 30.06.2027; Grace period: 

Electrice Muntenia Nord S.A., currently Distributie 

12 months. As at 31 December 2023, the outstanding 

Energie Electrica Romania S.A., as borrower, concluded 

balance is of RON 62,508 thousand, of which RON 

with BRD – Groupe Societe Generale an investment 

62,500 thousand principal and RON 8 thousand 

credit agreement with the purpose of financing 

accrued interest. (Outstanding balance as at 31 

investments in the electricity distribution network, 

December 2022: RON 80,367 thousand).

according to the investment plan. Main provisions 

b)  Investment loan granted by Unicredit Bank

On 13 November 2019, Societatea de Distributie a 

Energiei Electrice Transilvania Nord S.A., currently 

Distributie Energie Electrica Romania S.A., as borrower, 

concluded with Unicredit Bank an investment credit 

agreement with the purpose of financing investments 

in the electricity distribution network, according to 

the investment plan. Main provisions are: Maximum 

are: Maximum loan amount: RON 130,000 thousand; 

Interest rate: fixed, 3.99% per annum; Reimbursements: 

quarterly instalments until 28.10.2026; Grace period: 

12 months. As at 31 December 2023, the outstanding 

balance is of RON 62,400 thousand. (Outstanding 

balance as at 31 December 2022: RON 83,200 

thousand).

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (OMFP 2844/2016)FOR THE YEAR ENDED 31 DECEMBER 20232023 ANNUAL REPORTNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (OMFP 2844/2016)2023 ANNUAL REPORTELECTRICA S.AFOR THE YEAR ENDED 31 DECEMBER 2023ELECTRICA S.A 
510

511

d)   Investment loan granted by BRD – Groupe Societe 

annum; Reimbursements: quarterly instalments until 

the European Investment Bank an investment credit 

The main provisions are: The maximum value of the 

Generale

2028; Grace period: 12 months. As at 31 December 

contract, representing the second part of the Approved 

loan RON 180,000 thousand; Interest rate: agreed 

On 25 June 2020, Societatea de Distributie a Energiei 

Electrice Transilvania Nord S.A., currently Distributie 

Energie Electrica Romania S.A., as a borrower, 

concluded with BRD – Groupe Societe Generale an 

2023, the outstanding balance is RON 90,542 thousand, 

Credit in the amount of EUR 210,000 thousand for the 

individually for each tranche drawn; Repayments: 

of which RON 90,011 thousand principal and RON 531 

purpose of financing investments in the electricity 

14 quarterly instalments until 31.01.2028; Grace 

thousand accrued interest. (Outstanding balance as 

distribution network according to the 2021-2023 

period: 18 months. Maximum credit amount: 180,000 

at 31 December 2022: RON 109,785 thousand).

investment plan. The main provisions are: Maximum 

thousand RON; Interest rate: ROBOR 3M + 2.10%. As at 

investment credit agreement with the purpose of 

g)   Investment loan granted by the European Bank for 

financing investments in the electricity distribution 

Reconstruction and Development (“EBRD”)

network, according to the approved investment plan 

for 2020. Main provisions are: Maximum loan amount: 

RON 100,000 thousand; Interest rate: fixed, 3.85% per 

annum; Reimbursements: quarterly instalments until 

On 2 July 2021, Societatea de Distributie Energie 

Electrica Romania SA, as a borrower, concluded 

with the European Bank for Reconstruction and 

2028; Grace period: 12 months. As at 31 December 2023, 

Development a credit agreement for investments 

the outstanding balance is of RON 64,286 thousand. 

(Outstanding balance as at 31 December 2022: RON 

78,571 thousand).

in order to finance investments in the electricity 

distribution network according to the 2021-2023 

investment plan. The main provisions are: The 

value of the loan: EUR 90,000 thousand; Interest rate 

19 December 2023, the value of the loan increased 

and Repayments will be agreed individually for each 

to 240,000 thousand RON. As at 31 December 2023, 

tranche drawn. On 31 December 2023, the outstanding 

the outstanding balance is RON 182,775 thousand, of 

balance is Nil as no withdraw was made from the loan. 

which RON 180,000 thousand principal and RON 2,775 

The loan agreement is guaranteed by Electrica SA.

thousand accrued interest. The loan agreement is 

j) 

 Loan for financing current activity granted by 

guaranteed by Electrica SA. 

Eximbank Romania 

m)  Multicredit facility for multiple financing by 

On 22 December 2022, Distributie Energie Electrica 

Romania S.A., as a borrower, concluded with Eximbank 

accessing cash and non-cash products granted 

by CEC BANK SA (“CEC”)

e)   Investment loan granted by BRD – Groupe Societe 

Interest rate: agreed individually for each tranche 

The main provisions are: Maximum loan amount: 

borrower, concluded a Facility Agreement Multicredit. 

Generale

drawn; Repayments: 17 half-yearly instalments 

until 31.07.2031; Grace period: 24 months. As at 31 

250,000 thousand RON; Interest rate: ROBOR 3M +1.65 % 

The main provisions are: The maximum value of the 

p.a.; Repayments: 6 equal quarterly instalments; Grace 

loan RON 150,000 thousand; Interest rate: ROBOR 

maximum value of the loan RON 195,136 thousand; 

Romania a credit agreement for a period of 24 months. 

On 4 August 2023, Electrica Furnizare S.A., as the 

December 2023, the outstanding balance is RON 

period: 6 months. 

On 25 June 2020, Societatea de Distributie a Energiei 

Electrice Transilvania Sud S.A., currently Distributie 

Energie Electrica Romania S.A. as a borrower, 

concluded with BRD – Groupe Societe Generale an 

investment credit agreement with the purpose of 

financing investments in the electricity distribution 

network, according to the approved investment plan 

189,970 thousand, of which RON 183,657 thousand 

principal and RON 6,313 thousand accrued interest. 

The loan agreement is guaranteed by Electrica SA. 

(Outstanding balance as at 31 December 2022: RON 

202,983 thousand. 

for 2020. Main provisions are: Maximum loan amount: 

h)   Investment loan granted by the European 

RON 80,000 thousand; Interest rate: fixed, 3.85% per 

Investment Bank (“EIB”)

annum; Reimbursements: quarterly instalments until 

2028; Grace period: 12 months. As at 31 December 

2023, the outstanding balance is RON 51,467 thousand, 

of which RON 51,429 thousand principal and RON 39 

thousand accrued interest. (Outstanding balance as 

at 31 December 2022: RON 62,904 thousand).

On 14 July 2021, Societatea de Distributie Energie 

Electrica Romania SA, as a borrower, concluded with 

the European Investment Bank an investment credit 

contract, representing the first part of the Approved 

Credit in the amount of EUR 210,000 thousand for the 

purpose of financing investments in the electricity 

f) 

 Investment loan granted by Banca Comerciala 

distribution network according to the 2021-2023 

Romana (“BCR”)

On 17 September 2020, Societatea de Distributie 

a Energiei Electrica Muntenia Nord S.A., currently 

Distributie Energie Electrica Romania S.A., as a 

borrower and Electrica SA as a guarantor, concluded 

with Banca Comerciala Romana S.A. an investment 

investment plan. The main provisions are: Maximum 

value of the loan: EUR 120,000 thousand; Interest rate 

and Repayments will be agreed individually for each 

tranche drawn. On 31 December 2023, the outstanding 

balance is Nil as no withdraw was made from the loan. 

The loan agreement is guaranteed by Electrica SA.

credit agreement with the purpose of financing 

i) 

 Investment loan granted by the European 

investments in the electricity distribution network, 

Investment Bank (“EIB”)

according to the approved investment plan for 2020. 

Main provisions are: Maximum loan amount: Ron 

155,000 thousand; Interest rate: ROBOR 3M+1% per 

On 7 December 2021, Societatea de Distributie Energie 

Electrica Romania SA, as a borrower, concluded with 

On 31 December 2023, the outstanding balance 

is RON 167,825 thousand. The loan benefits from a 

guarantee in the name and account of the state and is 

3M+2.85%; full repayment at maturity; Maturity date: 03 

August 2026. As at 31 December 2023, the outstanding 

balance is RON 200,000 thousand. The loan agreement 

is guaranteed by Electrica SA.

guaranteed by Electrica SA. (Outstanding balance as 

n)   Syndicated credit facility granted by Erste Group 

at 31 December 2022: RON 4,110 thousand). 

Bank AG and Raiffeisen Bank SA

k) 

 Line of Credit for working capital and for issuing 

On 2 November 2021, Electrica S.A., as borrower, entered 

Bank Guarantee Letters granted by Vista Bank

into a syndicated credit facility with Erste Group 

Bank AG and Raiffeisen Bank SA. The main provisions 

are: Maximum loan amount RON 750,000 thousand; 

Interest rate: ROBOR 3M+1.16%. On 3 November 2023 

the loan was extended for a period of one year and 

the maximum loan amount was reduced to RON 

450,000,000. As at 31 December 2023 the balance of 

the loan is RON 91,768 thousand, of which principal 

RON 91,768 thousand and accrued interest RON 619 

thousand (31 December 2022: RON 0.0 thousand).  

On 30 December 2022, Societatea Energetica Electrica 

S.A., as the borrower, concluded a contract for a line of 

credit for working capital and for the issuance of Bank 

Guarantee Letters granted by Vista Bank for a period 

of 18 months. The main provisions are: Maximum credit 

amount: 100,000 thousand RON; Interest rate: ROBOR 

3M +2.95 % p.a.; full refund at maturity. On 31 December 

2023, the balance of the loan is 125,000 thousand RON. 

(Outstanding balance as at 31 December 2022: RON 

100,000 thousand).

l) 

 Investment loan granted by the European Bank for 

Reconstruction and Development (“EBRD”)

On 17 March 2023, Societatea de Distributie Energie 

Electrica Romania SA, as a borrower, concluded 

with the European Bank for Reconstruction and 

Development a credit agreement for working capital. 

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (OMFP 2844/2016)FOR THE YEAR ENDED 31 DECEMBER 20232023 ANNUAL REPORTNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (OMFP 2844/2016)2023 ANNUAL REPORTELECTRICA S.AFOR THE YEAR ENDED 31 DECEMBER 2023ELECTRICA S.A512

513

Overdrafts

30  Financial instruments - fair values and risk management

Until the authorization for issue of these Consolidated Financial Statements by the Board of Directors, the 

(a) Accounting classifications and fair values

Group has overdrafts from various banks (ING Bank N.V., Raiffeisen Bank, Banca Comerciala Romana, Banca 

Transilvania, BNP Paribas, Intesa Sanpaolo Bank, BRD – Groupe Societe Generale S.A., Alpha Bank and UniCredit) 

with a total overdraft limit of up to RON 2,963,947 thousand (Total overdraft limit as at 31 December 2022: RON 

2,743,542 thousand).

The overdraft facilities are used for financing activities. The outstanding balance of the overdraft facilities as at 31 

December 2023 is of RON 2,851,221 thousand (31 December 2022: RON 2,571,037 thousand).

Lender (overdrafts)

Borrower

ING Bank N.V

Alpha Bank

BCR

BRD

Societatea Energetica Electrica S.A.

Electrica Furnizare S.A.

Electrica Furnizare S.A.

Electrica Furnizare S.A.

Banca Transilvania

Electrica Furnizare S.A.

ING Bank N.V

Electrica Furnizare S.A.

Raiffeisen Bank

Electrica Furnizare S.A.

UniCredit Bank 

Electrica Furnizare S.A.

BNP Paribas

Electrica Furnizare S.A.

BCR

Distributie Energie Electrica Romania S.A

Banca Transilvania

Distributie Energie Electrica Romania S.A

ING Bank N.V

Distributie Energie Electrica Romania S.A

Intesa San Paolo

Distributie Energie Electrica Romania S.A

Raiffeisen Bank

Distributie Energie Electrica Romania S.A

Total overdrafts

Financial Covenants

Balance at 31 
December 2023

Balance at 31 
December 2022

206,986

213,702

378,887

218,817

187,194

170,602

369,274

302,399

28,830

210,593

159,544

49,682

135,815

218,895

209,138

147,497

227,311

216,570

185,528

169,600

343,001

300,294

-

208,412

158,965

49,855

135,096

219,770

Financial assets are measured at amortised cost as they are held within a business model to collect contractual 

cash flows and these cash flows consist solely of payments of principal and interest on the principal amount 

outstanding.

The Group assessed that the carrying amount is a reasonable approximation of the fair value for the financial 

assets and financial liabilities.

(b) Financial risk management

The Group has exposure to the following risks arising from financial instruments:

•  credit risk;

•  liquidity risk; 

•  market risk.

These risks are further explained and detailed.

(i)  Credit risk 

Credit risk is the risk of financial loss to the Group if a customer or counterparty to a financial instrument fails to 

meet its contractual obligations, and arises principally from the Group’s receivables from customers, cash and 

cash equivalents, restricted cash and bank deposits.

The Group’s exposure to credit risk is influenced mainly by the individual characteristics of each customer. In the 

past, the Group had a high credit risk mainly from State-owned companies. 

2,851,221

2,571,037

Cash and bank deposits are placed in financial institutions which are considered to have low risk of default.

The carrying amount of financial assets represents the maximum credit exposure.

The financial covenants specified in the agreements with BRD – Groupe Societe Generale, Unicredit Bank, Banca 

Trade receivables

Comerciala Romana, European Bank for Reconstruction and Development and European Investment Bank have 

The Group’s credit risk in respect of receivables was concentrated in the past around state-controlled 

been fulfilled as at 31 December 2023.

Pledged Assets

On 31 December 2023, for several overdrafts the Group has pledges (guarantees) for trade receivables amounts, 

as specified on contracts.

Bank Guarantees

The maximum limit of the facility for issuing bank guarantees (credit facility for issuing guarantee instruments 

and multi-product lines) RON 3,110,456 thousand, of which non-cash uses RON 1,104,986 thousand.

companies and in the recent years refers to clients that are facing financial difficulties in their industries due to 

specific changes in circumstances in their industry sector. The Group has implemented a policy on credit risk 

management and is also considering securing trade receivables. Also, the electricity supply contracts include 

termination clauses in certain circumstances.

The Group establishes an allowance for impairment that represents the amount of expected credit losses, 

calculated based on the expected loss rate.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (OMFP 2844/2016)FOR THE YEAR ENDED 31 DECEMBER 20232023 ANNUAL REPORTNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (OMFP 2844/2016)2023 ANNUAL REPORTELECTRICA S.AFOR THE YEAR ENDED 31 DECEMBER 2023ELECTRICA S.A514

515

Impairment

Exposure to liquidity risk

The following table provides information about the exposure to credit risk and expected credit losses for trade 

The following are the remaining contractual maturities of financial liabilities at the reporting date. The amounts 

receivables for customers as at 31 December 2023:

are gross and undiscounted.

31 December 2023

Contractual cash flows

Neither past due nor impaired

Past due 1-30 days

Past due 31-60 days

Past due 61-90 days

Past due more than 90 days

Total

Expected 
credit loss 
rates (“ECL”)

Gross value

Lifetime ECL

Net trade 

Credit 

receivables

impaired

2%

7%

14%

37%

92%

2,229,339 

(35,330) 

2,194,009 

255,100 

(16,875) 

238,225 

47,635 

25,927 

(6,670) 

(9,640) 

622,659 

(571,703) 

40,965 

16,287 

50,956 

3,180,660 

(640,218) 

2,540,442 

No

No

No

No

Yes

The Group performed a sensitivity analysis and a 5% increase in the expected credit loss rates would not lead a 

material impact on the results of the Group. 

31 December 2022

Expected 
credit loss 
rates (“ECL”)

Gross value

Lifetime ECL

Net trade 

Credit 

receivables

impaired

3%

4%

16%

35%

95%

1,951,656

(60,310)

1,891,346

490,985

(19,342)

471,643

66,365

27,259

(10,488)

(9,671)

582,426

(552,878) 

55,877

17,588

29,548

No

No

No

No

Yes

Neither past due nor impaired

Past due 1-30 days

Past due 31-60 days

Past due 61-90 days

Past due more than 90 days

Total

Financial liabilities

Carrying 
amount

Total

less than
 1 year

1-2 years

2-5 years

more than 

5 years

31 December 2023

Bank overdrafts

Lease liability

2,851,221 

2,851,221 

2,851,221 

-

-

-

43,195 

43,195 

14,052 

9,920 

3,980 

15,243 

Long term bank borrowings

1,317,642 

1,317,642 

523,294 

258,923 

475,905 

59,520 

Trade payables

Total

31 December 2022

Bank overdrafts

Lease liability

Trade payables

Total

(iii)  Market risk

1,671,478 

1,671,478 

1,671,478 

-

-

-

5,883,536 

5,883,536 

5,060,045 

268,843 

479,885 

74,763 

2,571,037

2,571,037

2,571,037

-

-

-

53,673

53,673

19,211

10,795

10,645

13,022

760,713

760,713

113,520

354,471

200,505

92,217

1,407,097

1,407,097

1,407,097

-

-

-

4,792,520

4,792,520

4,110,865

365,266

211,150

105,239

Market risk is the risk that changes in market prices – such as foreign exchange rates and interest rates – will 

affect the Group’s income or the value of its financial instruments held. The objective of market risk management 

is to manage and control market risk exposures within acceptable parameters, while optimising the return.

Currency risk

The Group is exposed to currency risk to the extent that there is a mismatch between the currencies in which 

sales, purchases and borrowings are denominated and the functional currency of the Group. The functional 

The following table provides information about the exposure to credit risk and expected credit losses for trade 

Long-term bank borrowings 

receivables for customers as at 31 December 2022:

3,118,691

(652,689) 

2,466,002

currency of all entities belonging to the Group is the Romanian Leu (RON). 

Details of the main movements in the allowances for doubtful debts are disclosed in Note 18.

(ii) Liquidity risk

Liquidity risk is the risk that the Group will encounter difficulty in meeting the obligations associated with its 

financial liabilities that are settled by delivering cash or another financial asset. The Group’s approach to 

managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when 

they are due, under both normal and stressed conditions, without incurring unacceptable losses.

The Group aims to maintain the level of its cash and cash equivalents at an amount in excess of expected cash 

outflows on financial liabilities. The Group also monitors the level of expected cash inflows on trade receivables 

together with expected cash outflows on trade and other payables. In addition, the Group maintains overdrafts 

(refer to Note 29).

The currency in which these transactions are primarily denominated is RON. Certain liabilities are denominated in 

foreign currency (EUR). The Group also has deposits and bank accounts denominated in foreign currency (EUR). 

The Group’s policy is to use the local currency in its transactions as far as practically possible. The Group does not 

use derivative or hedging instruments.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (OMFP 2844/2016)FOR THE YEAR ENDED 31 DECEMBER 20232023 ANNUAL REPORTNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (OMFP 2844/2016)2023 ANNUAL REPORTELECTRICA S.AFOR THE YEAR ENDED 31 DECEMBER 2023ELECTRICA S.A516

517

Exposure to currency risk

Exposure to interest rate risk

The summary of quantitative data about the Group’s exposure to currency risk is as follows:

The interest rate profile of the Group’s interest-bearing financial instruments is as follows:

in thousands of RON

Cash and cash equivalents

Lease liability

Net statement of financial position exposure

31 December 2023

31 December 2022

denominated in EUR

denominated in EUR

347

(42,231)

(41,844)

277

(21,004) 

(20,727)

The following significant exchange rates have been applied during the year:

RON

EUR 1

Sensitivity analysis

Average rate

Year-end spot rate

2023

4.9465

2022

4.9315

2023

4.9746

2022

4.9474

Fixed-rate instruments

Financial assets

Call deposits 

Financial liabilities

Long-term bank borrowings

Lease liability

Total

Variable-rate instruments

Financial liabilities

A reasonably possible strengthening (weakening) of the EUR against RON at 31 December would have affected 

Lease liability

the measurement of financial instruments denominated in a foreign currency and profit before tax by the 

amounts shown below. The analysis assumes that all other variables, in particular interest rates, remain constant 

and ignores any impact of forecast sales and purchases.

Long-term bank borrowings

Bank overdrafts

Total

31 December 2023

31 December 2022

153,997 

193,219

(1,068,912) 

(32,312) 

(947,227) 

(651,752)

(37,378)

(495,911)

(10,883) 

(248,730) 

(16,295)

(108,961)

(2,851,221) 

(2,571,037)

(3,110,834) 

(2,696,293)

Effect

31 December 2023

EUR (5% movement)

31 December 2022

EUR (5% movement)

Interest rate risk

Profit before tax

Strengthening

Weakening

Fair value sensitivity analysis for fixed-rate instruments

(2,092) 

(1,036) 

2,092

1,036

The Group does not account for any fixed-rate financial assets or financial liabilities at fair value through profit or 

loss. Therefore, a change in interest rates at the reporting date would not affect profit or loss.

Cash flow sensitivity analysis for variable-rate instruments

A reasonably possible change of 50 basis points in interest rates at the reporting date would have increased 

(decreased) profit before tax by the amounts shown below. This analysis assumes that all other variables, in 

particular foreign currency exchange rates, remain constant.

For financing purposes, the Group uses both medium and long-term bank loans and short-term loans in the form 

of overdraft facilities (please see Note 29).

The Group is exposed to interest rate risk because entities in the Group borrow funds at both fixed and floating 

interest rates. The risk is managed by the Group by maintaining an appropriate mix between fixed and floating 

rate borrowings (please see Note 29), as the long-term borrowings are contracted mainly at fixed rates, while the 

overdraft facilities bear variable rates. The Group does not have in place hedging contracts for interest rate. 

The Groups exposures to interest rates on financial assets and financial liabilities are detailed below. The Group is 

exposed to the interest rate benchmark ROBOR, which is the interest rate on the Romanian interbank market.

31 December 2023

Variable-rate instruments

31 December 2022

Variable-rate instruments

Profit before tax

50 bp increase

50 bp decrease

(15,554)

15,554

(13,481) 

13,481

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (OMFP 2844/2016)FOR THE YEAR ENDED 31 DECEMBER 20232023 ANNUAL REPORTNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (OMFP 2844/2016)2023 ANNUAL REPORTELECTRICA S.AFOR THE YEAR ENDED 31 DECEMBER 2023ELECTRICA S.A 
 
518

519

31 Related parties 

(a) Main shareholders

Supplier

2023

2022

31 December 2023

31 December 2022

Purchases (without VAT)

Balance (including VAT)

As at 31 December 2023 and 31 December 2022, the major shareholder of Societatea Energetica Electrica S.A. is 

the Romanian State, represented by the Ministry of Energy with a share of ownership of 48.79% from the share 

Electrocentrale Bucuresti

capital.

(b) Management and administrators’ compensation

Executive Management compensation

2023

36,623 

2022

34,726

ANRE

Transgaz

Others

Total

-

16,763 

7,638 

5,945 

191,862

10,458

8,029

7,768

-

12

1,850

1,513 

-

14

986

1,168

5,585,186

6,299,475

635,845

426,562

Executive management compensation refers to both the managers with mandate contract and those with 

supply of electricity, of which the most important transactions are the following:

The Group also makes sales to companies in which the State has control or significant influence representing 

labour contract, from both the subsidiaries and Electrica SA. This also includes the benefits in the event of the 

termination of mandate contracts for executive directors.

Compensations granted to the members of the Board of Directors were as follows:

Members of Board of Directors

2023

4,151 

2022

3,063

Electrica SA’s Board of Directors comprises 7 members. According to the remuneration policy approved by the 

General Meeting of Shareholders that took place on 20 April 2022, the annual number of paid sessions is limited 

to twelve for Board of Directors meetings and to six for each of the committees. Additional committee meetings 

can be organized only in exceptional situations, upon the Chairs’ committee decision, who are responsible to 

efficiently organize the agenda and activity. However, only one such additional meeting shall be remunerated, for 

each committee.

No loans were granted to directors or administrators in 2023 and 2022.

(c) Transactions with companies in which the state has control or significant influence 

The Group has transactions with companies in which the State has control or significant influence in the ordinary 

course of business, related mainly to the acquisition of electricity, transport and system services and sale of 

electricity. Significant purchases and balances are mainly with energy producers/suppliers, as follows:

Supplier

OPCOM

Transelectrica

Nuclearelectrica

Hidroelectrica

Complexul Energetic Oltenia

OMV Petrom SA

SNGN Romgaz SA

Purchases (without VAT)

Balance (including VAT)

2023

2022

31 December 2023

31 December 2022

2,879,757 

2,727,101

671,172 

799,117 

44,631 

1,107,474 

-

52,689 

968,470

866,763

581,598

478,813

261,123

197,490

212,746 

170,242 

107,671 

37

132,693 

-

9,081 

23,981

185,856

93,013

42,493

45,257

26,349

7,445

Sales 

Balance, gross 

Allowance 

(without VAT)

(including VAT)

(including VAT)

Balance, net

Client

OPCOM 

Transelectrica

C.N.C.F  CFR S.A.

SNGN Romgaz SA

Hidroelectrica

CN Romarm

CFR Electrificare

Transgaz

CN Remin SA

C.N.C.A.F MINVEST SA

Oltchim

CET Braila

Termoelectrica

2023

37,429

157,861

114,009

32,762

288,923

25,158

19,043

1,684

923

-

-

14

-

2,174

44,220

33,841

-

32,882

4,279

2,347

544

71,347

26,802

115,426

3,378

1,206

County Agency for Payments and 
Social Inspection

18,981

18,981

Ministry of Energy/ National Agency 
for Payments and Social Inspection

3,287,858

2,605,684

31 December 2023

-

-

5

-

-

-

-

-

71,216

26,802

115,426

3,361

1,206

-

-

2,174

44,220

33,836

-

32,882

4,279

2,347

544

131

-

-

17

-

18,981

2,605,684

Others

Total

211,691

9,173

364

8,809

4,196,336

3,008,780

218,380

2,790,400

(*) In the 12-month period ended 31 December 2023, Electrica Furnizare S.A. recognised subsidies amounting to RON 3,306,839 thousand, to 
be received from the Ministry of Energy/National Agency for Payments and Social Inspection, as a result of the application of the price cap 

mechanism for electricity and natural gas according to the legislation in force.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (OMFP 2844/2016)FOR THE YEAR ENDED 31 DECEMBER 20232023 ANNUAL REPORTNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (OMFP 2844/2016)2023 ANNUAL REPORTELECTRICA S.AFOR THE YEAR ENDED 31 DECEMBER 2023ELECTRICA S.A520

521

Balance, gross 

(including VAT)

Allowance

Balance, net

31 December 2022

-

-

9

-

-

-

-

71,148

26,802

115,943

3,361

1,206

-            

522

22,630

112,754

2,245

16,429

648

2,089

764

132

-

-

3

-

1,322,311 

10,754

Client

OPCOM 

Transelectrica

SNGN Romgaz SA

Hidroelectrica

CN Romarm

CFR Electrificare

Transgaz

CN Remin SA

C.N.C.A.F MINVEST SA

Oltchim

CET Braila

Termoelectrica

Sales 

(excluding 

VAT)

2022

326,640

314,253

86,353

68,716

17,386

10,332

11,580

704

-

-

5

-

22,630

112,754

2,253

16,429

648

2,089

764

71,279

26,802

115,943

3,365

1,206

Ministry of Energy/ National Agency 
for Payments and Social Inspection 

2,687,131

1,322,311

127,686

11,277

Others

Total

32 Contingencies

Contingent liabilities

Fiscal environment

Tax inspection report for SDEE Muntenia Nord S.A (currently Distributie Energie Electrica Romania S.A.)

The subsidiary SDEE Muntenia Nord S.A. (currently Distributie Energie Electrica Romania S.A.) was subject to a 

tax audit performed by the Local Taxes Department of Galati City Hall that referred to the building taxes paid 

for the period 2012-2016. The tax audit was finalized in December 2019, when the fiscal inspection report was 

communicated to the subsidiary. The fiscal report established additional payment obligations for the subsidiary 

representing building tax for the period 01.01.2012-31.12.2015 in the total amount of RON 24,831 thousand, of which 

principal in amount of RON 12,051 thousand and related late penalties computed as of October 2019, in amount 

of RON 12,780 thousand. The amount of late charges was recalculated to RON 13,021 thousand between the tax 

inspection report date and principal debt payment date. Litigious actions were started in order to challenge the 

tax inspection report.

The Group recognised an expense in amount of RON 12,051 thousand during the year ended 31 December 2019 

in accordance with IFRIC 23 „Uncertainty over Income Tax Treatments”. At the same time, for the late penalties 

in the amount of RON 13,021 thousand, a letter of bank guarantee was established in the amount of RON 13,021 

thousand valid until 14 August 2024, in order to mitigate the associated risks.

Other litigations and claims

The Group is involved in a series of litigations and claims (ie, with ANRE, NAFA, Court of Accounts, claims for 

damages, claims over land titles, labour related litigations etc.).

As summarised in Note 28, the Group set-up provisions for the litigations or claims for which the management 

assessed as probable the outflow of resources embodying economic benefits due to low chances of favourable 

outcomes of those litigations or disputes. The Group does not present information in the financial statements and 

did not set-up provisions for items for which the management assessed as remote the possibility of outflow of 

3,650,786

1,709,750

218,991

1,490,759

economic benefits.

The Group discloses if the case information on the most significant items of litigations or claims for which the 

Group did not set-up provisions as they relate to possible obligations that arise from past events whose existence 

will be confirmed only by the occurrence or non-occurrence of uncertain future events not wholly within the 

control of the Group (ie, litigations for which different inconsistent sentences were issued by the Courts, or 

litigations which are in early stages and no preliminary ruling was issued so far).

Tax audits are frequent in Romania, consisting of detailed verifications of the accounting records of taxpayers. 

Such audits sometimes take place after months, even years, from the date liabilities are established. 

(a) Contractual commitments

Consequently, companies may be found liable for significant taxes and fines. Moreover, tax legislation is subject 

33 Commitments

to frequent changes and the authorities demonstrate inconsistency in interpretation of the law.

Contractual commitments as at 31 December 2023 and 31 December 2022 are as follows:

Income tax returns may be subject to revision and corrections by tax authorities, generally for a five-year period 

after they are completed.

The Group may incur expenses related to previous years’ tax adjustments as a result of controls and litigations 

with tax authorities. The management of the Group believes that adequate provisions were recorded in 

the consolidated financial statements for all significant tax obligations; however, a risk persists that the tax 

authorities might have different positions.

Purchase of electricity

Purchase of green certificates

Purchase of property, plant and equipment and intangible assets

Purchase of investments

Total

31 December 2023

31 December 2022

707,797 

172,979 

626,617 

45,122

802,252

129,246

446,937

289,636

1,552,515

1,668,071

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (OMFP 2844/2016)FOR THE YEAR ENDED 31 DECEMBER 20232023 ANNUAL REPORTNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (OMFP 2844/2016)2023 ANNUAL REPORTELECTRICA S.AFOR THE YEAR ENDED 31 DECEMBER 2023ELECTRICA S.A522

523

(b) Investment program

The investment program at Group level estimated to be approved for the year 2024 is as follows:

Distribution activity

Supply activity

Maintenance activity

Production activity

Other

Total

2024

865,480

53,290

10,300

588,130

16,600

1,533,790

The capital expenditures actually incurred may differ from the ones planned.

(c) Guarantees and pledges

At 31 December 2023 and 31 December 2022, the Group has guarantees on its bank accounts opened at ING Bank 

N.V., Raiffeisen Bank, Banca Comerciala Romana, Banca Transilvania, Intesa Sanpaolo Bank and Alpha Bank for 

the overdrafts contracted (please see Note 29), and also on its bank accounts opened at BRD – Group Societe 

Generale, Unicredit Bank, Banca Transilvania, Banca Comerciala Romana, Vista Bank and CEC Bank for the long-

term borrowings contracted (please see Note 29). 

At 31 December 2023, the Group has outstanding bank letters of guarantee of RON 1,193,823 thousand (31 

December 2022: RON 952,008 thousand) issued in favour of its suppliers.

(d) Audit fees

The audit fees for the consolidated financial statements were in amount of 1,075 thousand RON, and during 

the year 2023, non-audit services fees were in amount of 174 thousand RON (limited review of the interim 

consolidated financial statements). The audit fees for the individual financial statements is mentioned in the 

annual individual financial statements of Electrica S.A..

34 Subsequent events 

On 15 February 2024, the subsidiary Distributie Energie Electrica Romania (DEER) has obtained approval for EUR 

171 million in non-reimbursable European funding through the Modernisation Fund (FM), representing 80% of the 

eligible expenditure for seven new investment projects in the electricity distribution network, projects with an 

estimated value of approximately EUR 266 million (with VA). 

Chief Executive Officer

Alexandru-Aurelian Chirita

Chief Financial Officer

Stefan Alexandru Frangulea

25 March 2024

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (OMFP 2844/2016)FOR THE YEAR ENDED 31 DECEMBER 20232023 ANNUAL REPORTNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (OMFP 2844/2016)2023 ANNUAL REPORTELECTRICA S.AFOR THE YEAR ENDED 31 DECEMBER 2023ELECTRICA S.A524

525

INDEPENDENT AUDITOR’S REPORT 
ON 2023 CONSOLIDATED FINANCIAL 
STATEMENTS (OMFP 2844/2016)

526

527

Deloitte Audit S.R.L.  
The Mark Tower,  
82-98 Calea Griviței,  
Sector 1, 010735 
Bucharest, Romania 

T: +40 21 222 16 61 
F: +40 21 222 16 60 
www.deloitte.ro 

INDEPENDENT AUDITOR’S REPORT 

To the Shareholders, 
SOCIETATEA ENERGETICA ELECTRICA S.A. 

Report on the Audit of the Consolidated Financial Statements  

Opinion 

1.  We have audited the consolidated financial statements of Societatea Energetica Electrica S.A.and its subsidiaries (“the 

Group”), with registered office in Bucharest, District 1, Street Grigore Alexandrescu, No. 9 , identified by unique tax 
registration code 13267221, which comprise the consolidated statement of financial position as at December 31, 2023, and 
the consolidated statement of comprehensive income, consolidated statement of changes in equity and consolidated 
statement of cash flows for the year then ended, and notes to the consolidated financial statements, including material 
accounting policy information. 

2. 

The financial statements as at December 31, 2023 are identified as follows: 

•  Net assets / Equity                                                                                                                                       RON 6,008,000 thousand   
•  Net profit for the financial year 
RON 620,380 thousand  

3. 

In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the consolidated 
financial position of the Group as at December 31, 2023, and its consolidated financial performance and its consolidated cash 
flows for the year then ended in accordance with Ministry of Public Finance Order no. 2844/2016, with subsequent 
amendments. 

Basis for Opinion 

4.  We conducted our audit in accordance with International Standards on Auditing (ISAs), Regulation (EU) No. 537/2014 of the 
European Parliament and the Council (herein after referred to as “the Regulation”) and Law 162/2017 on the statutory audit 
of annual financial statements and annual consolidated financial statements and on amending other pronouncements (herein 
after referred to as “the Law 162/2017”). Our responsibilities under those standards are further described in the Auditor’s 
Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Company in 
accordance with the International Ethics Standards Board for Accountants’ International Code of Ethics for Professional 
Accountants (including International Independence Standards) (IESBA Code), in accordance with ethical requirements 
relevant for the audit of the financial statements in Romania including the Regulation and the Law 162/2017 and we have 
fulfilled our other ethical responsibilities in accordance with these requirements and the IESBA Code. We believe that the 
audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. 

Emphasis of Matter 

5.  We draw attention to Note 7 of the consolidated financial statements, which describes that the Group prepares two sets of 
consolidated financial statements, one under statutory regulations, namely Ministry of Finance Order 2844/2016 with 
subsequent amendments and one under International Financial Reporting Standards as adopted by the European Union 
(“IFRS”). These consolidated financial statements are prepared under OMF 2844/2016 with subsequent amendments, which 
differs from IFRS as summarized in Note 7. Consequently these consolidated financial statements do not comply with IFRS. 
Our audit report is not modified in respect of this matter. 

Key Audit Matters 

6. 

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the 
consolidated financial statements of the current period. These matters were addressed in the context of our audit of the 
consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion 
on these matters.  

Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited ("DTTL"), its global network of member firms, and their related entities (collectively, the "Deloitte organization"). DTTL (also 
referred to as "Deloitte Global") and each of its member firms and related entities are legally separate and independent entities, which cannot obligate or bind each other in respect of third parties. 
DTTL and each DTTL member firm and related entity is liable only for its own acts and omissions, and not those of each other. DTTL does not provide services to clients.  
Please see www.deloitte.com/about to learn more.  

1 

Key audit matters 

Going Concern 

As presented in Note 6 the consolidated financial 
statements have been prepared on the going concern 
basis. The key judgement leading to this conclusion are set 
out in that note. 

In particular the Group operates in the electricity 
distribution and supply industry which is currently affected 
by the capping laws on sales to end customers. The 
Romanian authorities regulatory position is under review 
and there may be further laws enacted which could 
adversely impact the Group’s operating cash flows. In the 
forthcoming twelve months the Group will need to obtain 
additional financing and given the position of the Group 
and its significance to the Romanian economy 
management expects that all necessary financing will be 
made available. 

The ability of the Group to continue as a going concern is 
dependent on the successful extension of the existing debt 
facilities, drawdown of new financing and on stabilizing of 
the regulatory regime on energy prices as described in 
note 6 which provides an appropriate margin to support 
servicing of the Group’s short and long term financings. 

In view of the significant judgements, the application and 
disclosures of the basis of the going concern assumption 
are considered a Key Audit Matter.  

Valuation of Retail accrued revenue, related to electricity 
supplied to households 

The Group recognizes at the end of each reporting period 
accrued revenue from the energy supply activity, related 
to the household population. If the actual meter readings 
are not available at the end of the reporting period, 
energy supplied to households is estimated based on 
internal information related to historical patterns of 
consumption. The degree of estimation uncertainty 
reduces from one period to another, however judgement 
is inherent in the valuation of the accrued revenue related 
to the household population.  

Because of the significance of the estimations around the 
accrued revenue related to the households and the 
inability of relying on the effectiveness of the controls, we 
consider the valuation of retail accrued revenue, related to 
households a key audit matter. 

How our audit addressed the key audit matter 

We  have  assessed  managements  valuation  of  the  going  concern 
assumption by performing the following procedures:  

•  We have obtained the cash flow forecasts and critically 

challenged the management and the Board of Directors and 
Audit Committee on the assumptions used;         

•  We considered whether at the date of this report additional 
information exist from the Romanian authorities with 
respect to the capping mechanism;                               

•  We have assessed the Group’s position on the existing debt 

facilities, covenant compliance and newly negotiated debt 
facilities, during 2024 until the date of this report; 

•  We assessed the adequacy of the disclosure of the basis of 

going concern assumption, including the key judgements 
adopted; 

The group has a number of IT systems across the businesses and 
we were not able to rely on the effectiveness of IT controls within 
the revenue cycle. The audit procedures adopted were 
substantive in nature and included the following: 

• 

• 

• 

• 

Obtaining an understanding of the accounting policies used 
in the preparation of the consolidated financial statements, 
with respect to revenue recognition; 

Testing the reconciliation made by the Group between the 
quantity of electricity purchased for supply purposes and 
the quantity of electricity delivered from the supply activity; 

Testing the acquired electricity for supply purposes through 
a combination of direct confirmations received from the 
electricity producers and other supporting documents;  

Testing the revenues related to electricity supplied to final 
customers through a combination of direct confirmations 
and other supporting documents; 

• 

Performing analytical procedures on all electricity sales. 

2 

INDEPENDENT AUDITOR’S REPORT ON 2023 CONSOLIDATED FINANCIAL STATEMENTS (OMFP 2844/2016)2023 ANNUAL REPORTINDEPENDENT AUDITOR’S REPORT ON 2023 CONSOLIDATED FINANCIAL STATEMENTS (OMFP 2844/2016)2023 ANNUAL REPORT 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
    
 
 
 
 
 
 
 
 
 
 
 
 
 
 
528

529

Other information  

7. 

The administrators are responsible for the preparation and presentation of the other information. The other information 
comprises the Administrators’ Consolidated report and the Remuneration report, but does not include the consolidated 
financial statements and our auditor’s report thereon, or the non-financial information declaration, which is being presented 
in a separate report. 

Our opinion on the financial statements does not cover the other information and, unless otherwise explicitly mentioned in 
our report, we do not express any form of assurance conclusion thereon. 

In connection with our audit of the consolidated financial statements for the year ended December 31, 2023, our 
responsibility is to read the other information and, in doing so, consider whether the other information is materially 
inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially 
misstated. 

Other reporting responsibilities with respect to other information – Administrators’ consolidated report 

With respect to the Administrators’ consolidated report, we read it and report if this has been prepared, in all material 
respects, in accordance with the provisions of Ministry of Public Finance Order no. 2844/2016, with subsequent amendments.  

On the sole basis of the procedures performed within the audit of the consolidated financial statements, in our opinion:  

a) 

the information included in the Administrators’ consolidated report and the Remuneration report for the financial year 
for which the consolidated financial statements have been prepared, is consistent, in all material respects, with the 
consolidated financial statements; 

b) 

the Administrators’ consolidated report has been prepared, in all material respects, in accordance with the provisions of 
Ministry of Public Finance Order no. 2844/2016, with subsequent amendments. 

Moreover, based on our knowledge and understanding concerning the Group and its environment gained during the audit on 
the financial statements prepared at December 31, 2023, we are required to report if we have identified a material 
misstatement of this Administrators’ consolidated report and the Remuneration report. We have nothing to report in this 
regard.  

Other reporting responsibilities with respect to other information – Remuneration report 

With respect to the Remuneration report, we read it to determine if it presents, in all material respects, the information 
required by article 107, paragraphs (1) and (2) of Law 24/2017 regarding the issuers of financial instruments and market 
operations, republished. We have nothing to report in this regard. 

Responsibilities of Management and Those Charged with Governance for the Consolidated Financial Statements  

8.  Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance 

with Ministry of Public Finance Order no. 2844/2016, with subsequent amendments and for such internal control as 
management determines is necessary to enable the preparation of consolidated financial statements that are free from 
material misstatement, whether due to fraud or error. 

9. 

In preparing the consolidated financial statements, management is responsible for assessing the Group’s ability to continue 
as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting 
unless management either intends to liquidate the Group or to cease operations, or has no realistic alternative but to do so. 

10.  Those charged with governance are responsible for overseeing the Group’s financial reporting process. 

Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements 

11.  Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free 
from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. 
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs will 
always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered 
material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users 
taken on the basis of these consolidated financial statements. 

12.  As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional skepticism 

throughout the audit. We also: 

• 

• 

• 

• 

• 

• 

Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or 
error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and 
appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is 
higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, 
misrepresentations, or the override of internal control. 

Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are 
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group's 
internal control. 

Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related 
disclosures made by management. 

Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the 
audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant 
doubt on the Group’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are 
required to draw attention in our auditor’s report to the related disclosures in the consolidated financial statements or, 
if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up 
to the date of our auditor’s report. However, future events or conditions may cause the Group to cease to continue as a 
going concern. 

Evaluate the overall presentation, structure and content of the consolidated financial statements, including the 
disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a 
manner that achieves fair presentation.  

Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities 
within the Group to express an opinion on the consolidated financial statements. We are responsible for the direction, 
supervision and performance of the group audit. We remain solely responsible for our audit opinion. 

13.  We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the 
audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. 

14.  We also provide those charged with governance with a statement that we have complied with relevant ethical requirements 
regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought 
to bear on our independence, and where applicable, actions taken to eliminate threats or safeguards applied. 

15.  From the matters communicated with those charged with governance, we determine those matters that were of most 
significance in the audit of the financial statements of the current period and are therefore the key audit matters. We 
describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, 
in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse 
consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication. 

Report on Other Legal and Regulatory Requirements  

16.  We were appointed by the General Meeting of Shareholders on April 27, 2023 to audit the financial statements of Societatea 

Energetica Electrica S.A. for the financial year ended December 31, 2023. The uninterrupted total duration of our 
commitment is 6 of years, covering the financial years ended December 31, 2018 to December 31, 2023. 

3 

4 

INDEPENDENT AUDITOR’S REPORT ON 2023 CONSOLIDATED FINANCIAL STATEMENTS (OMFP 2844/2016)2023 ANNUAL REPORTINDEPENDENT AUDITOR’S REPORT ON 2023 CONSOLIDATED FINANCIAL STATEMENTS (OMFP 2844/2016)2023 ANNUAL REPORT 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
530

531

We confirm that: 

•  Our audit opinion is consistent with the additional report submitted to the Audit Committee of the Company that we 

issued the same date we issued this report. Also, in conducting our audit, we have retained our independence from the 
audited entity. 

•  No non-audit services referred to in Article 5 (1) of EU Regulation no. 537/2014 were provided. 

The engagement partner on the audit resulting in this independent auditor’s report is Răzvan Ungureanu.  

Răzvan Ungureanu, Audit Partner  

For signature, please refer to the original 
signed Romanian version. 

Registered in the Electronic Public Register of Financial  
Auditors and Audit Firms under AF 4866 

On behalf of: 

DELOITTE AUDIT SRL 

Registered in the Electronic Public Register of Financial  
Auditors and Audit Firms under FA 25 

The Mark Building, 84-98 and 100-102 Calea Griviței, 9th Floor, District 1 
Bucharest, Romania 
March 5, 2024 

5 

INDEPENDENT AUDITOR’S REPORT ON 2023 CONSOLIDATED FINANCIAL STATEMENTS (OMFP 2844/2016)2023 ANNUAL REPORTINDEPENDENT AUDITOR’S REPORT ON 2023 CONSOLIDATED FINANCIAL STATEMENTS (OMFP 2844/2016)2023 ANNUAL REPORT 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
532

533

2023 CONSOLIDATED 
FINANCIAL STATEMENTS 
(IFRS-EU)

as at and for the year ended

31 December 2023

prepared in accordance with

International Financial Reporting Standards  
as adopted by the European Union

Free translation from Romanian,  
which is the official and binding version

534

535

Contents

Consolidated statement of financial position

Consolidated statement of profit or loss

Consolidated statement of comprehensive income

Consolidated statement of changes in equity

Consolidated statement of cash flows

Notes to the consolidated financial statements

Basis of preparation

1.

2.

3.

4.

Reporting entity and general information

Basis of accounting

Functional and presentation currency

Use of judgments and estimates

Accounting policies

5.

6.

7.

8.

9.

Restatements

Basis of measurement

Changes in significant accounting policies

Accounting policies

Adoption of new and revised standards

Performance for the year

10. Operating segments

11.

Revenue

12.

Electricity, natural gas and merchandise purchased 

13. Other operating income and expenses

14

Net finance result

15.

Earnings per share

536

538

539

540

542

544

551

552

552

554

556

556

556

570

572

576

576

577

578

578

Employee benefits

16

17

18

Short-term employee benefits

Post-employment and other long-term employee benefits

Employee benefit expenses

Income taxes

19.

Income taxes

Assets

20. Trade receivables

21. Other receivables

22. Cash and cash equivalents

23.

Inventories

24. Property, plant and equipment

25.

Intangible assets

26.

Investments in associates

Equity and liabilities

27. Capital and reserves

28. Trade payables

29. Other payables

30. Provisions

31.

Bank borrowings and overdrafts

Financial instruments

32.

Financial instruments - Fair values and risk management

Other information

33. Related parties

34. Contingencies

35. Commitments

36. Subsequent events

579

579

583

583

585

587

588

588

589

592

593

595

597

597

597

598

603

608

610

611

612

2023 CONSOLIDATED FINANCIAL STATEMENTS (IFRS-EU) 2023 CONSOLIDATED FINANCIAL STATEMENTS (IFRS-EU) 2023 ANNUAL REPORT2023 ANNUAL REPORT536

537

Note

31 December 2023

31 December 2022 
(restated)*

Note

31 December 
2023

31 December 2022 
(restated)*

ASSETS

Non-current assets

Intangible assets related to concession arrangements

Other intangible assets

Goodwill

Property, plant and equipment

Investments in associates 

Other investments

Deferred tax assets

Other non-current assets

Right of use assets

Total non-current assets

Current assets

Trade receivables

Subsidies receivable

Other receivables

Cash and cash equivalents

Inventories

Prepayments

Current income tax receivable

Assets held for sale

Total current assets

Total assets

EQUITY AND LIABILITIES

Equity

Share capital

Share premium

Treasury shares reserve

Pre-paid capital contributions in kind from shareholders

Revaluation reserve

Legal reserves

Retained earnings

Total equity attributable to the owners of the Company

Non-controlling interests

Total equity

*please see Note 5

(Continued on next page)

25

25

24

26

19

20

13

21

22

23

27

27

27

27

27

27

6,220,530

5,675,866

27,822

24,663

594,994

16,638

7,000

32,404

51,954

40,993

12,854

12,040

499,390

18,824

7,000

30,180

2,393

52,152

7,016,998

6,310,699

2,540,442

2,614,535

93,832

377,215

115,660

12,935

-

280

2,466,002

1,280,788

 127,253

 334,887

 113,972

13,874

24,000

280

5,754,899

4,361,056

12,771,897

10,671,755

3,464,436

103,049

(75,372)

7

159,536

449,363

1,259,396

5,360,415

(451)

5,359,964

 3,464,436

 103,049

 (75,372)

7

 92,117

 429,583

554,634

4,568,454 

(516)

4,567,938   

Liabilities

Non-current liabilities

Lease liability – long term

Deferred tax liabilities

Employee benefits

Other payables

Long-term bank borrowings

Total non-current liabilities

Current liabilities

Current portion of long-term bank borrowings

Lease liability – short term

Bank overdrafts

Trade payables

Other payables

Deferred revenue

Employee benefits

Provisions

Current tax liabilities

Total current liabilities

Total liabilities

Total equity and liabilities 

*please see Note 5

19

16

29

31

31

31

28

29

16,17

30

29,143

121,318

151,358

37,161

794,348

1,133,328

523,294

14,052

2,851,221

1,671,478

1,035,084

7,837

120,548

41,167

13,924

6,278,605

7,411,933

34,462

60,306

117,269

72,432

647,193

931,662

113,520

19,211

2,571,037

1,407,097

867,536

24,750

114,174

53,701

1,129

5,172,155

6,103,817

12,771,897

10,671,755 

The accompanying notes are an integral part of these consolidated financial statements.

Chief Executive Officer

Alexandru-Aurelian Chirita

Chief Financial Officer

Stefan Alexandru Frangulea

25 March 2024

CONSOLIDATED STATEMENT OF FINANCIAL POSITION (IFRS-EU)AS AT 31 DECEMBER 20232023 ANNUAL REPORTCONSOLIDATED STATEMENT OF FINANCIAL POSITION (IFRS-EU)2023 ANNUAL REPORTELECTRICA S.AAS AT 31 DECEMBER 2023ELECTRICA S.A 
 
 
 
 
 
 
538

539

Note

2023

2022 
(restated)*

Note

2023

2022
(restated)*

Profit/(Loss) for the year

772,103

(240,463)

9,816,593

3,498,553

10,009,896

2,840,963

(9,057,976)

(10,506,809)

(976,436)

(962,065)

(95,218)

(524,481)

(75,820)

(431,399)

1,191,751

3,425

(297,220)

(293,795)

(593,490)

(823,422)

(88,229)

(496,253)

(112,311)

(352,971)

(122,626)

9,718

(174,713)

(164,995)

11

5,13

25

18

24,25

20,21

13

14

14

26

5,19

Revenue

Other income

Electricity, natural gas and merchandise purchased

Construction costs related to concession agreements

Employee benefits

Repairs, maintenance and materials 

Depreciation and amortization

Impairment for trade and other receivables, net

Other operating expenses

Operating profit

Finance income

Finance costs

Net finance cost

Share of results of associates

Profit/(Loss) before tax

Income tax (expense)/benefit

Profit/(Loss) for the year

Profit/(Loss) for the year attributable to:

- owners of the Company

- non-controlling interests

Profit/(Loss) for the year 

Earnings/(Loss) per share

Basic and diluted earnings/(loss) per share (RON)

15

2.27

(0.71)

*please see Note 5

The accompanying notes are an integral part of these consolidated financial statements.

Chief Executive Officer

Alexandru-Aurelian Chirita

Chief Financial Officer

Stefan Alexandru Frangulea

25 March 2024

Other comprehensive income

Items that will not be reclassified to profit or loss

Revaluation of property, plant and equipment

Tax related to revaluation of property, plant and equipment

Re-measurements of the defined benefit liability 

Tax related to re-measurements of the defined benefit liability

Other comprehensive income, net of tax

Total comprehensive income/(loss)

Total comprehensive income/(loss) attributable to:

- owners of the Company

- non-controlling interests

24

19

17

19

85,510

(13,699)

(11,918)

1,907

-

-

9,503

(1,479)

61,800

8,024

833,903

(232,439)

834,017

(114)

833,903

(232,330)

(109)

(232,439)

(39)

(13)

Total comprehensive income/(loss)

*please see Note 5

897,917

(125,814)

772,103

772,217

(114)

772,103

(287,634)

47,171

(240,463)

(240,354)

(109)

(240,463) 

The accompanying notes are an integral part of these consolidated financial statements.

Chief Executive Officer

Alexandru-Aurelian Chirita

Chief Financial Officer

Stefan Alexandru Frangulea

25 March 2024

CONSOLIDATED STATEMENT OF PROFIT OR LOSS (IFRS-EU)FOR THE YEAR ENDED 31 DECEMBER 20232023 ANNUAL REPORTCONSOLIDATED STATEMENT OF PROFIT OR LOSS (IFRS-EU)2023 ANNUAL REPORTELECTRICA S.AFOR THE YEAR ENDED 31 DECEMBER 2023ELECTRICA S.A,

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CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (IFRS-EU)FOR THE YEAR ENDED 31 DECEMBER 20232023 ANNUAL REPORTCONSOLIDATED STATEMENT OF CHANGES IN EQUITY (IFRS-EU)2023 ANNUAL REPORTELECTRICA S.AFOR THE YEAR ENDED 31 DECEMBER 2023ELECTRICA S.A 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
542

543

Note

2023

2022 (restated)*

Note

2023

2022 (restated)*

772,103

(240,463)

Payments for network construction related to concession agreements

Cash flows from investing activities

Payments for purchases of property, plant and equipment

Cash flows from operating activities

Profit/(Loss) for the year

Adjustments for:

Depreciation 

Amortisation

24

25

Reversal of impairment of property, plant and equipment and intangible 
assets, net

24,25

Revaluation of property, plant and equipment recognized in profit or loss, 
net

24

Gain on disposal of property, plant and equipment and intangible assets 

24,25

Impairment of trade and other receivables, net

Change in provisions, net

Net finance cost

Changes due to employee benefits

Share of loss of associates

Income tax expense/(benefit)

20,21

30

14

26

19

Changes in:

Trade receivables

Subsidies receivable

Other receivables

Prepayments

Inventories

Trade payables

Other payables

Provisions and employee benefits

Deferred revenue

Cash used in operating activities

Interest paid

Income tax paid

16,391

508,090

-

(2,081)

(82)

75,820

(12,534)

293,795

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39

125,814

1,777,355

 19,915

 476,469

(5)

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(393)

  112,311

 18,779

 164,995

(4,358)

13

(47,171)

500,092

(309,158)

 (1,286,734)

(1,333,747)

(1,280,788)

5,636

939

(1,688)

244,355

110,400

28,545

(16,913)

505,724

(278,462)

(58,993)

13,914 

(8,840)

(41,014)

 494,611

570,158 

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 15,088

(1,029,967)

 (149,397)

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25

26

31

31

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22

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22

(10,391)

(845,331)

(21,313)

232

3,270

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(6,308)

(1,924)

(8,295)

 (537,782)

(7,829)

614

2,847

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(4,452)

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(885,914)

(554,900)

742,658

271,943

(187,730)

(26,762)

(40,136)

759,973

42,328

334,887

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377,215

217,561

1,900,371

(92,925)

(24,163)

(152,291)

1,848,553

113,057

(405,572)

627,402

334,887

Payments for purchase of other intangible assets

Proceeds from sale of property, plant and equipment

Interest received

Acquisition of investments in associates

Payments for acquisition of subsidiaries, net of cash acquired

Payments for non-controlling interest acquired without change in 
control

Net cash flow used in investing activities

Cash flows from financing activities

Proceeds from long-term bank borrowings

Proceeds from overdrafts

Repayment of long-term bank loans

Payment of lease liabilities

Dividends paid

Net cash generated from financing activities

Net increase in cash and cash equivalents

Cash and cash equivalents at 1 January

Reclassification of overdrafts previously presented as cash and cash 
equivalents

Cash and cash equivalents at 31 December 

*please see Note 5

The accompanying notes are an integral part of these consolidated financial statements.

The non-cash transactions are disclosed in Note 22.

Chief Executive Officer

Alexandru-Aurelian Chirita

Chief Financial Officer

Stefan Alexandru Frangulea

Net cash flow from/(used in) operating activities

168,269

(1,180,596)

*please see Note 5

(Continued on next page)

25 March 2024

CONSOLIDATED STATEMENT OF CASH FLOWS (IFRS-EU)FOR THE YEAR ENDED 31 DECEMBER 20232023 ANNUAL REPORTCONSOLIDATED STATEMENT OF CASH FLOWS (IFRS-EU)2023 ANNUAL REPORTELECTRICA S.AFOR THE YEAR ENDED 31 DECEMBER 2023ELECTRICA S.A 
 
 
544

545

1 

Reporting entity and general information 

(a)  General information about the Group

Subsidiary

Activity

Sole 
registration 
code

Head Office

% shareholding 

These financial statements are the consolidated financial statements of Societatea Energetica Electrica S.A. 

(“the Company” or “Electrica SA”) and its subsidiaries (together “the Group”) as at and for the year ended 31 

December 2023. 

The registered office of the Company is no. 9, Grigore Alexandrescu Street, District 1, Bucharest, Romania. The 

Electrica Producție Energie 
S.A.(“EPE”)

Electrica Energie Verde 1 SRL* 
(“EEV1” – formerly Long Bridge 
Milenium SRL)

Electricity generation

44854129

Bucuresti

99.9920%

Electricity generation

19157481

Bucuresti

100%*

Company has sole registration code 13267221 and Trade Register registration number J40/7425/2000.

Sunwind Energy S.R.L.

Electricity generation

As at 31 December 2023 and 31 December 2022, the major shareholder of Societatea Energetica Electrica S.A. 

is the Romanian State, represented by the Ministry of Energy with a share of ownership of 48.79% from the 

share capital.

The Company’s shares are listed on the Bucharest Stock Exchange and the global depository receipts 

(“GDRs”) are listed on the London Stock Exchange. The shares traded on the London Stock Exchange are the 

global depositary receipts, one global depositary receipt representing four shares. The Bank of New York 

Mellon is the depositary bank for these securities.

New Trend Energy S.R.L.

Electricity generation

Green Energy Consultancy & 
Investments S.R.L.

Electricity generation

29172101

Prahova

Foton Power Energy S.R.L.

Electricity generation

43652555

Constanta

42910478

42921590

Constanta

Constanta

60%

60%

75%

30%

Indirect ownership - Electrica Energie Verde 1 SRL is 100% owned by the subsidiary Electrica Furnizare S.A.

* 
**  On 31.12.2023 the merger by absorption took place between Societatea Energetica Electrica SA (ELSA) as absorbing company and 

Societatea Electrica Productie Energie SA (EPE), Electrica Energie Verde 1 SRL (EEV1) and Green Energy Consultancy & Investments SRL 
(GECI) as absorbed companies.  

As at 31 December 2023 the Company’s subsidiaries are the following: 

As at 31 December 2023 and 31 December 2022, the Company’s associates are the following:

Subsidiary

Activity

Distributie Energie Electrica 
Romania S.A. (“DEER”)

Electricity distribution in 
geographical areas Transilvania 
Nord, Transilvania Sud and 
Muntenia Nord

Sole 
registration 
code

Head Office

% shareholding 

14476722

Cluj-Napoca

99.99999929%

Associate

Activity

registration 

code

Sole 

Head 

Office

% shareholding 

% shareholding 

as at 31 

as at 31 

December 2023

December 2022

Crucea Power Park S.R.L.

Electricity generation

25242042

Constanta

40%

30%

Changes in Group structure during 2023

is in the «ready-to-build» phase and is located in 

Electrica Furnizare S.A. (“EFSA”)

Electricity and natural gas supply

28909028

Bucuresti

99.9998444099934%

the vicinity of Botiz commune, Satu Mare county. 

Electrica Serv S.A. (“SERV”)

Services in the energy sector 
(maintenance, repairs, 
construction)

Sunwind Energy S.R.L.

Electricity generation

New Trend Energy S.R.L.

Electricity generation

Foton Power Energy S.R.L.

Electricity generation

17329505

Bucuresti

99.99998095%

42910478

42921590

43652555

Constanta

Constanta

Constanta

100%

60%

60%

As at 31 December 2022 the Company’s subsidiaries are the following: 

Subsidiary

Activity

Sole 
registration 
code

Head Office

% shareholding 

Distributie Energie Electrica 
Romania S.A. (“DEER”)

Electricity distribution in 
geographical areas Transilvania 
Nord, Transilvania Sud and 
Muntenia Nord

Electrica Furnizare S.A. (“EFSA”)

Electricity and natural gas supply

28909028

Bucuresti

99.9998444099934%

Electrica Serv S.A. (“SERV”)

Services in the energy sector 
(maintenance, repairs, 
construction)

17329505

Bucuresti

99.99998095%

Acquisition of shares in subsidiaries

Also, the Financing Contract was signed between 

Sunwind Energy SRL as the Beneficiary and the 

On 6 February 2023, Electrica completed the 

Ministry of Energy as the coordinator of reforms 

acquisition of  Green Energy Consultancy & 

and/or investments for the National Recovery and 

Investments S.R.L., having as main object of activity 

Resilience Plan (NRRP). 

the production of energy from photovoltaic sources. 

Until 31 December 2022 the company was acquired 

On 31 July 2023, Electrica acquired an additional 30% 

75%. Green Energy Consultancy & Investments 

of the shares and voting interests in Foton Power 

S.R.L. develops the photovoltaic project “Vulturu”, 

Energy S.R.L.,having as main object of activity the 

with a designed installed capacity of 12 MWp DC 

production of energy from photovoltaic sources. As 

(peak power at the panels level) and 9.75 MW AC 

a result, the Group’s equity interest increased from 

(authorised power for delivery into the grid), located 

30% to 60%, thus, Foton Power Energy S.R.L. becoming 

near Vulturu locality, Vrancea county. The project is 

a subsidiary of Electrica Group. Foton Power Energy 

in the “ready-to-build” phase.

S.R.L. develops the photovoltaic project “Bihor 1”, with 

On 24 March 2023, Electrica completed the 

near Oradea.

acquisition of Sunwind Energy S.R.L, which has 

as its main activity production of energy from 

Acquisition of shares in associates

photovoltaic sources. Until 31 December 2022 

the project was acquired 60%. Sunwind Energy 

On 15 May 2023, Electrica acquired an additional 10% 

develops the photovoltaic project «Satu Mare 2», 

of the shares and voting interests in Crucea Power 

with an installed capacity of 27 MW. The project 

Park S.R.L.. As a result, the Group’s equity interest 

14476722

Cluj-Napoca

99.99999929%

a projected installed capacity of 77.5 MW, located 

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (IFRS-EU)FOR THE YEAR ENDED 31 DECEMBER 20232023 ANNUAL REPORTNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (IFRS-EU)2023 ANNUAL REPORTELECTRICA S.AFOR THE YEAR ENDED 31 DECEMBER 2023ELECTRICA S.A546

547

increased from 30% to 40%.

S.A. subsidiary) which further invoices the electricity 

by Law no. 184/2018). The postponed green 

Regarding the costs of electricity purchased for own 

consumption to final consumers.

certificates will be reinserted starting from 1 January 

technological consumption (“NL”):

Merger by absorption within the Group

2021, in equal monthly tranches until 31 December 

On 20 December 2023, the Extraordinary General 

competitive market and as the supplier of last resort 

Meeting of the Company’s Shareholders (EGMS) 

for approx. 3.4 million clients. Electrica Furnizare 

(b)  Regulations in the energy sector

approved the merger by absorption between 

S.A. holds an electricity supply license that covers 

Societatea Energetica Electrica SA (“ELSA”), 

the entire territory of Romania, which was extended 

Regulatory environment

Electrica Furnizare S.A. is active on both the 

2030.

Societatea Electrica Productie Energie SA (“EPE”), 

in 2021 for a period of 10 years. At the same time, 

Electrica Energie Verde 1 SRL (“EEV1”) and Green 

Electrica Furnizare S.A. ensures the supply of 

The activity in the energy sector is regulated by the 

•  at the justified request of the Distribution 

Energy Consultancy & Investments SRL (“GECI”) 

electricity for household customers in a universal 

Romanian Energy Regulatory Authority.

(together the „Companies”) and the participation 

service regime. At the same time, it also holds a 

of the Companies in the merger, with Societatea 

license for carrying out the activity of natural gas 

Energetica Electrica SA as absorbing company, 

supply, valid until 2032. In 2023, Electrica Furnizare 

Some of the main responsibilities of ANRE are 

to approve prices and tariffs and to issue 

Electrica Productie Energie SA, Electrica Energie 

S.A. was designated supplier of last resort („FUI”) for 

substantiation methodologies used to set regulated 

Verde 1 SRL and Green Energy Consultancy & 

electricity in May and October, and for natural gas 

prices and tariffs.

•  ANRE has the right to correct the projection 

of distribution tariffs for a regulatory period 

or for one year, if there have been significant 

variations in prices on the electricity market, 

which lead to an important change in 

distribution service costs; 

Operator, the regulated revenue of year t + 1 

may include a cost of electricity purchased 

for own technological consumption (“NL”) 

forecast for year t + 1, by changing the reference 

price, depending on the evolution of prices 

on the electricity market and the result of the 

analysis of the evolution of tariffs for the current 

Investments SRL as absorbed companies, with the 

it was nominated supplier of last resort in April and 

effective date of the merger being 31 December 

November 2023.

2023.

Group’s main activities

Through the acquisition of the new subsidiary 

Electrica Energie Verde 1 S.R.L. (formerly Long Bridge 

Milenium S.R.L.) as of 31 August 2020, establishment 

The activities of the Group include operation and 

of a new legal entity Electrica Productie Energie 

electricity and natural gas supply to final consumer 

agreements in five project companies having 

as well as energy production from renewable 

as main activity the production of energy from 

sources. The Group is the electricity distribution 

renewable sources the Group entered on the 

operator and the main electricity supplier in 

electricity generation segment, in particular from 

Muntenia Nord area (Prahova, Buzau, Dambovita, 

renewable sources. Currently, one of the project 

Braila, Galati and Vrancea counties), Transilvania 

companies has been absorbed through merger by 

Nord area (Cluj, Maramures, Satu Mare, Salaj, Bihor 

the parent company where a photovoltaic park with 

and Bistrita Nasaud counties) and Transilvania 

a capacity of 12 MW is being developed.

Sud area (Brasov, Alba, Sibiu, Mures, Harghita and 

Covasna counties), operating with transformation 

Through the merger that took place on 31 December 

subsidiary, Electrica Energie Verde 1 S.R.L., Electrica 

The Company’s distribution subsidiary, Distributie 

SA became a producer of electricity from renewable 

Energie Electrica Romania S.A. which resulted 

sources that operates a photovoltaic park in 

from the merger through absorption of the three 

Stanesti, Giurgiu county, with an installed capacity 

distribution subsidiaries Societatea de Distributie a 

of MW 7.5 (operating capacity limited MW to 6.8). 

Energiei Electrice Transilvania Nord S.A., Societatea 

In 2023 the operation of the plant was continuous, 

de Distributie a Energiei Electrice Muntenia Nord S.A. 

with no significant events leading to production 

and Societatea de Distributie a Energiei Electrice 

shutdowns, producing in total MWh 9,599 (2022: 

Transilvania Sud S.A. now operates electric lines 

MWh 10,466). According to Law no. 220/2008 and 

in 18 counties, from three geographical areas of 

based on the accreditation issued by ANRE, Stanesti 

the country, representing 40.7% of the Romanian 

park receives a number of 6 green certificates 

territory, and serves over 3.93 million users. It 

(“GC”) for each MWh produced and delivered, of 

invoices the electricity distribution service to 

which until 2020, 4 GC were issued for trading and 2 

electricity suppliers (mainly to Electrica Furnizare 

GC were postponed (the amendment is introduced 

Electricity distribution

regulatory period.

In 2019, a new regulatory period began, governed 

In 2022, according to the Government’s emergency 

by the provisions of ANRE Order no. 169/2018 for 

ordinance (GEO) no. 119/2022, the additional 

the approval of the Methodology for establishing 

costs for purchased electricity (determined as 

the tariffs for the electricity distribution service (IV 

the difference between the realized costs and the 

The following items are considered by ANRE 

when setting the target revenue for one year 

costs included in the approved distribution tariffs), 

made between 1 January 2022 and 31 August 

2023, in order to cover the own technological 

consumption, compared to the costs included in 

of the regulatory period: controllable and non-

the tariffs regulated (and not only borrowings), are 

controllable operating and maintenance costs; 

capitalized quarterly and remunerated with 50% 

costs of electricity purchased for own technological 

of the regulated rate of return (RRR) approved by 

consumption (related to distribution network); 

ANRE, applicable during the amortization period 

regulated depreciation charge; the return on the 

of the respective costs and are recognized as a 

regulated assets base (“RAB”); revenues from 

distinctive component in the regulated tariffs, 

reactive energy and revenues from other activities, 

called the component related to additional costs 

with NL. Also, ANRE elaborated the Methodological 

norms regarding the recognition in the tariffs of the 

Starting with 13 May 2020, the regulated rate of 

additional costs with the acquisition of electricity 

return („RRR”) of RAB is 6.39% to which is added:

for covering the network losses compared to the 

•  1% incentive for new investments in RED, 

approved by ANRE;

costs included in the regulated tariffs, the purpose 

of these norms is to establish the substantiation 

of additional costs with the purchase of electricity 

•  2% incentive for investments in the electricity 

to cover the NL, as well as the conditions for their 

distribution network financed from own funds in 

recognition in the regulated income, based on 

projects in which European non-reimbursable 

which the distribution tariffs are established. Law no. 

funds are also attracted, if the investments are 

357/2022 regarding the approval of GEO no. 119/2022 

performed and put into function by operators 

provides for the capitalization of additional costs 

after 1 February 2021, approved by ANRE;

with the purchase of electricity made between 1 

January 2022 and 31 March 2025.

•  1% incentive for investments in projects of 

common interest (PCI), approved by ANRE.

station and 0.4 kV to 110 kV power lines. 

2023 between the parent company and its former 

as well as corrections from previous periods.

construction of electricity distribution networks and 

S.A. and also the five shares sales and purchase 

regulatory period: 2019-2023).

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (IFRS-EU)FOR THE YEAR ENDED 31 DECEMBER 20232023 ANNUAL REPORTNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (IFRS-EU)2023 ANNUAL REPORTELECTRICA S.AFOR THE YEAR ENDED 31 DECEMBER 2023ELECTRICA S.A548

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According to the Government’s Emergency 

differences are recovered or returned through the 

Competitive market 

Ordinance (“GEO”) no. 153/2022 during the period 

annual tariff changes, except the capitalised costs 

of gas that covers 90% of Romania’s storage 

capacity and the market share that each 

1 January 2023 – 31 March 2025 is established the 

with own technological consumption. The difference 

Transactions on the competitive wholesale market 

supplier has had it in 2022; 

centralized electricity purchasing mechanism, 

between the purchase price of electricity for own 

OPCOM being designated the sole purchaser. The 

technological consumption versus the ex-ante 

are transparent, public, centralised and non-

discriminatory. Participants to the wholesale 

distribution operators (“OD”) will buy from OPCOM 

purchase price recognized by ANRE in the related 

market can trade electricity based on the bilateral 

through an annual/monthly mechanism at least 75% 

regulated tariffs 2022 related to the purchase of 

contracts concluded on the dedicated markets.

of the quantity forecasted and validated by National 

electricity and natural gas, made between 1 January 

Authority for Energy Regulation (“ANRE”) at the price 

2022 and 31 March 2025, in order to cover the costs 

The following support mechanisms have been put in 

of 450 RON/MWh, and the producers will sell to 

of electricity purchased for own technological 

place:

OPCOM through annual/monthly mechanism 80% of 

consumption (“NL”) for economic operators for 

the quantity forecasted and validated by ANRE and 

energy transport and distribution services are 

Transelectrica at the price of 450 RON/MWh.

capitalised. These are recognized as a distinctive 

component in the regulated tariffs, named 

In 2023 ANRE amended the Methodology for setting 

component related to additional network losses 

tariffs for the electricity distribution service, by 

costs. Also, law no. 357/2022 regarding the approval 

ANRE Order no. 79/2023 (Order) and defined 2024 

of GEO no. 119/2022 provides for the capitalization 

as the transition period from the fourth regulatory 

of additional costs with the purchase of electricity 

period (PR4) to the fifth regulatory period (PR5). 

made between 1 January 2022 and 31 March 2025.

Thus, for DEER, in 2024 the zonal distribution tariffs 

established on the basis of a single regulated 

Electricity supply

revenue and single NL targets for the total DEER are 

maintained.

Tariff adjustments

The regulatory framework has undergone significant 

changes over the past decade, including the 

liberalization of electricity and natural gas markets, 

the separation of supply and distribution activities, 

Annually, ANRE makes revenue corrections 

the implementation of the support scheme for 

due to: change in the quantities of electricity 

renewable energy, the support of electricity 

distributed compared to the forecast; change in 

prosumers and the capping of prices to final 

quantities and acquisition price for the regulated 

customers.

own technological consumption compared to 

the forecast; the annual change in controllable 

In 2022 the electricity market was completely 

operating and maintenance costs, realized and 

liberalized for all categories of customers and the 

accepted against the forecast; annual change 

price was established by suppliers through free 

in uncontrollable operating and maintenance 

market mechanisms, both for universal service 

costs compared to the forecast; changes in 

offers and for the offers related to the competitive 

revenues from reactive energy compared to the 

market. 

forecast; failure to meet/exceeding the approved 

investments programme; revenues generated from 

Regulated market

other operations made by the distribution operator 

and the quantity of electricity recovered from 

Starting with 1 November 2021, in the context of the 

recalculations.

increase in prices for the electricity and natural 

gas markets at international and national level, 

•  The obligation of natural gas producers to sell 

at the price of 150 RON/MWh the necessary 

quantities to the suppliers of domestic 

customers/heat energy producers;

•  The mechanism provides - OPCOM, as sole 

acquirer, buys electricity from producers 

(electricity producers with an installed power 

equal to or greater than 10 MW) and sells the 

purchased electricity to electricity suppliers 

that have contracts with final customers, the 

•  compensation of household consumers for part 

of the costs incurred by the electricity invoices  

(1 November 2021 until 31 March 2022);

•  capping the selling price for household and  

transmission system operator electricity and 

non-household consumers (1 November 2021 – 

distribution system operators electricity to 

31 March 2025);

•  exemption (1 November 2021 until 31 January 

2022) of several types of non-household 

consumers from payment of regulated tariffs 

and other taxes/contributions.

The amounts compensated will be received from 

the National Agency for Payments and Social 

Inspection for household consumers and a from the 

Ministry of Energy for non-household consumers (for 

further details please refer to Note 20).

Over 2023, several changes have been brought to 

the legislation, having a significant impact on the 

supply of electricity, as follows:

•  Price capped for electricity for household and 

non-domestic customers according to GEO no. 

27/2022, with subsequent amendments and 

additions

cover their own technological consumption; the 

price paid by OPCOM to electricity producers, 

for the quantities of electricity sold by them 

is 450 RON/MWh and the sale price of OPCOM 

to the economic operators is also 450 RON/

MWh (OPCOM has the right to charge market 

participants tariffs/commissions at the level of 

costs recorded by organizing the centralized 

electricity purchase mechanism); In order to 

carry out the transactions, OPCOM shall organize 

an annual procurement procedure as well as an 

additional procurement procedure each month 

for the quantities of electricity to be delivered 

in the following month; annual and monthly 

electricity quantities are firm obligations of 

electricity producers and economic operators 

and are evenly distributed across all settlement 

intervals each month (contracts are concluded 

by signing, within maximum 3 working days).

•  The limitation of the average purchase price 

price capped applies in 2023: 

The categories of customers to whom the electricity 

considered for determining the amounts to 

be recovered from the state budget initially to 

1,300 RON/MWh; and currently at 900 RON/MWh 

(according to Law no. 206/2023, which approves 

GEO 153/2022), except of the purchase intended 

•  household customers (tranche <100 KWh/

month - maximum price 0.68 lei/KWh, tranche 

100-300 KWh/month - with the distinct estimate 

of the volume exceeding 255 KWh/month - 

respectively the price level capped at 0.800 lei/

KWh and with a maximum price of 1.3 lei/KWh;

•  non-household customers - divided separately 

into the category of customers benefiting 

from capping for 85% of consumption with 

The regulator establishes through the regulated 

the energy crisis, as well as the effects caused by 

for supply as a last resort, where this limitation 

income and tariffs for the following year taking into 

these increases among the population, in Romania, 

does not apply;

account the justified corrections presented above, 

a series of support measures for electricity and 

which are added algebraically to the income for 

natural gas customers have been applied, by 

the following year. The group does not recognize 

establishing compensation and capping schemes 

assets and liabilities resulting from regulation 

between 1 November 2021 and 31 March 2025.

in relation to these deficits or surpluses, as the 

•  The obligation to store natural gas was 

calculated by ANRE according to two criteria: 

the obligation of all suppliers to store a quantity 

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (IFRS-EU)FOR THE YEAR ENDED 31 DECEMBER 20232023 ANNUAL REPORTNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (IFRS-EU)2023 ANNUAL REPORTELECTRICA S.AFOR THE YEAR ENDED 31 DECEMBER 2023ELECTRICA S.A550

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a price capped at 1 leu/KWh, category of 

6 (six) green certificates for each MWh of electricity 

year. The computation of the capitalized amounts 

effects on the activity of Group companies and over 

customers benefiting from capping for 100% of 

produced and delivered to the grid, out of which, 

is carried out in compliance with the legislation 

the financial results will be analyzed.

consumption, price capped at 1 leu/KWh and the 

for the period  1 July 2013 – 31 December 2020, 

specific to the entities that are the subject of GEO 

rest of the companies at a maximum price of 

according to Law 23/2014 and Law 184/2018, 2 (two) 

119/2022, with subsequent additions and changes.

Geopolitical tensions

1.300 lei/KWh.

green certificates were postponed from trading. 

Those two GC postponed from trading are to be 

The changes brought by EGO 119/2022 are changes 

In February 2022 global geopolitical tensions 

The categories of customers to whom the natural 

recovered in equal monthly tranches starting from 1 

the recuperation of the additional cost of NL by 

significantly escalated following military 

gas price capped applies in 2023: 

January 2021 until 31 December 2030. 

splitting it in current operating expenses (“OPEX”) 

interventions in Ukraine by the Russian Federation. 

•  household customers – the maximum price is 

capped at 0.310 lei/KWh;

•  non-household customers - the maximum 

price is capped at 0.370 lei/KWh for an annual 

consumption of up to 50 GWh.

The green certificates issued by Transelectrica for 

of unit costs recuperated at cost at 450 RON/MWh 

uncertainties in energy and capital markets have 

the production made by the Stanesti photovoltaic 

(ex-ante tariffs recognition) and for the difference 

increased, with global energy prices expected to be 

park, during the validity period of the accreditation 

above this level of 450 RON/MWh up to the effective 

highly volatile for the foreseeable future.  As at the 

decision issued by ANRE, can be traded, according 

average price, recognized by ANRE, there is a linear 

date of these consolidated financial statements, 

to GEO 24/2017, until 31 March  2032, respectively 

depreciation over 5 years stipulated with return 

management is unable to reliably estimate the 

including the period after the expiration of the 

at 50% of Regulated Rate of Return (RRR). These 

effects on the Groups financial outlook and cannot 

and capitalised costs (“CAPEX”), there is a portion 

As a result of these escalations, economic 

The compensated amounts are settled by the 

National Agency for Payments and Social Inspection 

(„ANPIS”) for household consumers and by the 

Ministry of Energy for non-household consumers.

validity period of the accreditation decision 

(31 January 2028 in the case of the Stanesti 

photovoltaic park). 

changes are also applicable for the year 2023.

exclude adverse consequence on the business, 

operations, and financial position. Management 

For the supply segment, both in 2023 and in 2022 

believes it is taking all the necessary measures to 

the effect of retail prices for electricity was covered 

support the sustainability and growth of the Group’s 

Green certificates

Electricity suppliers have a legal obligation to 

purchase green certificates from producers of 

electricity from renewable sources, based on annual 

targets or quotas set by law, which are applied to 

the quantity of electricity purchased and supplied 

to final consumers. The cost of green certificates 

is invoiced to final consumers separately from the 

tariffs for electricity.

Electricity generation

Green certificates

Producers of electricity from renewable energy 

sources (RES) have the right, according to Law no. 

220/2008, to receive a certain number of green 

certificates, depending on the technology used 

(for example: hydraulic, wind, solar, geothermal, 

biomass, bioliquids, biogas), for each MWh 

produced and delivered to the network and for a 

certain period of time, depending on the degree of 

novelty of the group/power plant.

Starting from February 2013, the Stanesti 

photovoltaic park has the right to receive (the 

month from which it started injecting electricity 

into the network), for a period of 15 (fifteen) years, 

Increase in Energy price impact 

as grants received from the state authorities, as 

business in the current circumstances and that 

a result of the application of the mechanism of 

judgements used in these financial statements 

The regulatory framework in the electricity 

capping the prices for electricity and natural gas, 

remain appropriate.

sector has undergone significant changes in the 

as a result of the application of Ordinance 27/2022, 

last decade, regarding the total liberalization 

with subsequent amendments and additions. 

of the electricity and natural gas market, the 

The implementation method of these schemes 

2  Basis of accounting 

implementation of the support scheme for 

renewable energy, the support of electricity 

consumers, the limitation of prices for final 

and the settlement mechanism of the amounts 

granted as support to clients, ex post from the 

state budget to the electricity suppliers, have 

consumers and the capitalization of additional costs 

generated constraints in terms of cash flow, as well 

with own technological consumption.

As a result, for the distribution segment, 

as uncertainties regarding the recovery the full 

amount of the respective amounts by the suppliers. 

In this context, EFSA has adapted its medium and 

Romanian Regulatory Authority for Energy – ANRE 

long-term strategy, so as to manage the impact 

(https://www.anre.ro/) has to adopt similar 

of these measures on the company’s activities in a 

measures through its Order 129/12.10.2022 approving 

responsible and sustainable manner in the context 

the Methodological Norms regarding the recognition 

of a regulatory framework that has seen numerous 

in the tariffs of the additional costs with the 

successive and major changes in the recent period.

acquisition of electricity for covering the network 

losses compared to the costs included in the 

The Group actively reviews and implements policies 

regulated tariffs, carried out between 1 January 2022 

and strategies to recover from the loss generated 

– 31 March 2025. 

by the increase in energy price, strategies which 

mainly aim in revising the method of generating 

ANRE will determine the recognized annual amounts 

the selling price for final consumers, concluding 

of the capitalized costs based on the quantities and 

agreements with specific clauses ensuring new 

prices recognized for NL, and by 15 March of the year 

financing facilities, closely monitoring suppliers and 

immediately following the year of capitalization 

consumers payment terms, monitoring daily cash 

of the additional costs, ANRE will transmit to the 

flow and forecasted cash flow. The Group continues 

distribution operators the recognized annual 

to closely monitor the macroeconomic outlook and 

amounts of the capitalized costs for the previous 

as additional information will be available, their 

These annual consolidated financial statements 

have been prepared in accordance with 

International Financial Reporting Standards (“IFRS”) 

as adopted by the European Union (“IFRS-EU”). The 

consolidated financial statements were authorized 

for issue by the Board of Directors on 25 March 2024 

and will be submitted for shareholders’ approval in 

the meeting scheduled on 25 April 2024.

Starting with the year ended 31 December 2022, 

the Company also issues a primary set of the 

consolidated financial statements prepared in 

accordance with OMFP no. 2844/2016 (statutory 

financial statements). Until 31 December 2021, 

the consolidated financial statements prepared 

in accordance with OMFP no. 2844/2016 were 

equivalent to IFRS-EU. Starting with 31 December 

2022, according to Order of Ministry of Public 

Finances (OMFP) no. 3900/2022 that has included 

a new clause related to the regulatory accounts 

to capitalise the additional expenses for actual 

energy costs as compared with the ex-ante ANRE 

prices recognised in distribution tariffs for own 

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (IFRS-EU)FOR THE YEAR ENDED 31 DECEMBER 20232023 ANNUAL REPORTNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (IFRS-EU)2023 ANNUAL REPORTELECTRICA S.AFOR THE YEAR ENDED 31 DECEMBER 2023ELECTRICA S.A552

553

technological consumption network, which are 

(a)  Judgements

recognised as intangible assets (please see the 

(a) the grantor controls or regulates what 

revenues and expenditures being recognized 

services the operator must provide with the 

in the profit and loss account (related to the 

primary set of financial statements in accordance 

Information about judgements made in applying 

infrastructure, to whom it must provide them, 

construction and modernization of infrastructure), 

with OMFP no. 2844/2016). Also, according to ANRE 

accounting policies that have the most significant 

and at what price; and

regulations issued in 2022, the capitalised costs 

effects on the amounts recognised in the 

as well as of a margin resulting from rendering the 

construction services established by the Group. 

of intangible non-current assets for the period 

consolidated financial statements is included below.

(b) the grantor controls - through ownership, 

Starting with 30 June 2023, the Group reassessed 

01 January 2022 – 31 March 2025 are recorded in 

the accounting records on the annual financial 

Revenue recognition 

statements according to the instructions developed 

beneficial entitlement or otherwise - any 

the margin applied and a margin of 4.35% is applied 

significant residual interest in the infrastructure 

for period 01 January 2023 – 31 December 2023, 

at the end of the term of the arrangement.

based on the Group’s experience in working with 

by the Ministry of Finance OMFP no. 2844/2016 with 

The Group assesses its revenue arrangements 

external contractors. Until 31 December 2022, the 

subsequent amendments (Romanian GAAP).

based on specific criteria to determine if it is acting 

The control or regulation referred to in condition 

margin applied was 3%, as presented in the annual 

as a principal or an agent. In applying IFRS 15, the 

(a) could be by contract or otherwise (such as 

consolidated financial statements as at and for the 

The Group has consistently applied the accounting 

Group has identified that it acts in the capacity 

through a regulator). The activities of the electricity 

year ended 31 December 2022.

policies to all periods presented in these 

of an agent in case of transactions as Balancing 

distribution operators, including distribution tariffs, 

consolidated financial statements. Details of the 

Responsible Party (“BRP”) and thus recognises 

are regulated by ANRE.

(b)  Assumptions and estimation uncertainties 

Group’s accounting policies are included in Notes 7 

revenue as the net amount of the commission 

and 8.

earned by the Group. The Group concluded that 

The concession contracts are concluded for a 

Information about assumptions and estimation 

it is acting as a principal in all other revenue 

period of 49 years and may be extended for a 

uncertainties that may result in a material 

Other matters – format in accordance with the 

arrangements.

period equal to no more than half of that period. 

adjustment in the subsequent twelve-month period 

European Securities and Markets Authority 

As a price for the concession, the operators pay an 

is included in the following notes: 

(“ESMA”)

Service Concession Arrangements 

annual royalty fee recognized in the distribution 

tariff of 1/1000 of the revenues from electricity 

Due to the technical limitations of the software used 

The distribution subsidiaries (as operators) that 

distribution. According to the concession contracts, 

to present the consolidated financial statements in 

merged into one single distribution operator as of 

the operators use the assets representing the 

the European single electronic format (“ESEF”), the 

31 December 2020 concluded concession contracts 

distribution network owned by them located in the 

tables included in the footnotes are displayed in a 

with the Ministry of Economy (as grantor) in 2005, 

above-mentioned territory for electricity distribution. 

linear, logical, and understandable manner.

updated by subsequent addendums. These 

According to the concession contracts, the grantor 

3 

Functional and presentation currency 

These consolidated financial statements are 

presented in Romanian Lei (RON), which is the 

functional currency of all Group companies. 

All amounts have been rounded to the nearest 

thousand, unless otherwise indicated. 

4  Use of judgements and estimates

In preparing these consolidated financial 

statements, management has made judgements, 

estimates and assumptions that affect the 

application of the Group’s accounting policies and 

the reported amounts of assets, liabilities, income 

and expenses. Actual results may differ from these 

estimates. Estimates and underlying assumptions 

are reviewed on an ongoing basis. Revisions to 

estimates are recognised prospectively.

contracts concern the operation of electricity 

distribution service in the established territory 

(Transilvania Nord, Transilvania Sud, Muntenia 

will buy at the end of the term of concession 

contract the ownership right of the „relevant assets”, 

that are mainly the electricity distribution networks, 

Nord), on the risk and responsibility of the operators 

at a price equal to the value of the regulated assets 

and taking into account the regulations applicable 

base at the end of the concession.

to the operation, modernization, rehabilitation 

and development of energy distribution networks 

Within the arrangements, the Group incurs 

specified in the Electricity Law, the terms and 

significant expenditure in relation to the 

conditions of the licenses for electricity distribution 

development and maintenance of the infrastructure. 

and the regulations issued by ANRE. The distribution 

The construction works are either outsourced by the 

•  Note 20 – assumptions and estimates of 

operator resulting from the merger of the three 

Group to sub-contractors, or performed internally. 

amounts to be received from the state following 

distribution operators within the Group, Distributie 

Significant management judgment is involved in 

the application of the compensation and 

Energie Electrica Romania concluded addendums 

accounting for the concession arrangements under 

capping scheme.

to the concession agreements signed with the 

IFRIC 12, including those in respect of the recognition 

Ministry of Economy for the operation of electricity 

of revenue based on the separation of construction 

Measurement of fair values

distribution service in all three areas.

or upgrade services from operation services. 

IFRIC 12 “Service Concession Arrangements” 

The concessionaires act as service suppliers (they 

disclosures require the measurement of fair values, 

deals with public-to-private service concession 

build, modernize and maintain the distribution 

for both financial and non-financial assets and 

arrangements. IFRIC 12 applies to public-to-private 

network) and the revenues related to the 

liabilities.

A number of the Group’s accounting policies and 

service concession arrangements if: 

construction or improvement of infrastructure 

is recorded according to IFRS 15. This results in 

•  Note 8 d) – assumptions regarding recognition 

of revenue from supply and distribution of 

electricity to consumers based on estimates for 

electricity delivered and for which no reading 

was performed yet;

•  Notes 20 and 32 – assumptions and estimates 

about measurement of the allowance for trade 

receivables at the level of expected credit losses 

(ECL), respectively in determining the loss rates; 

•  Note 24 - assumptions regarding the revalued 

value of tangible assets;

•  Notes 30 and 34 – recognition and measurement 

of provisions and contingencies;

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (IFRS-EU)FOR THE YEAR ENDED 31 DECEMBER 20232023 ANNUAL REPORTNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (IFRS-EU)2023 ANNUAL REPORTELECTRICA S.AFOR THE YEAR ENDED 31 DECEMBER 2023ELECTRICA S.A554

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When measuring the fair value of an asset or a liability, the Group uses market observable data as far as 

Consolidated statement of financial position

possible. Fair values are categorised into different levels in a fair value hierarchy based on the inputs used 

in the valuation techniques as follows:

•  Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities, which the Group 

can access;

•  Level 2: inputs other than quoted prices included in Level 1 that are observable for the asset or liability, 

either directly (i.e. as prices) or indirectly (i.e. derived from prices);

•  Level 3: inputs for the asset or liability that are not based on observable market data (unobservable 

inputs).

If the inputs used to measure the fair value of an asset or a liability might be categorised in different levels 

of the fair value hierarchy, then the fair value measurement is categorised in its entirety in the same level of 

the fair value hierarchy as the lowest level input that is significant to the entire measurement.

Financial assets related to concession 
arrangements – non current portion

Financial assets related to concession 
arrangements – current portion

Retained earnings

Deferred tax liabilities

Total assets

Total equity

Total liabilities

31 December 2022 
as reported 
previously

31 December 2022
reclassifications

31 December 2022
as restated

761,246

(761,246)

190,311

1,353,942

212,555

11,623,312

5,367,246

6,256,066

(190,311)

(799,308)

(152,249)

(951,557)

(799,308)

(152,249)

-

-

554,634

60,306

10,671,755

4,567,938

6,103,817

The Group recognises transfers between levels of the fair value hierarchy at the end of the reporting period 

during which the change has occurred.

Consolidated statement of profit or loss

Further information about the assumptions made in measuring fair values is included in the following notes:

•  Note 32 – Financial instruments;

•  Note 24 – Property, plant and equipment.

5  Restatements

Other income

Income tax benefit/(expense)

31 December 2022
as reported 
previously

3,792,520

(105,078)

31 December 2022
reclassifications

31 December 2022 
as restated

(951,557)

152,249

2,840,963

47,171

Profit for the year

558,845

(799,308)

(240,463)

During 2023, the Group reassessed its previous position with the consolidated financial statements, related 

to the recognition of financial asset from the amendment of the concession agreements, described in Note 

Earnings/(Loss) per share

4. As of 31 December 2022, the Group recognised a financial asset in the amount of RON 951,557 thousand 

as a result of such amendment in the balance sheet, representing the difference between the net cost with 

the purchase of the energy for NL and the NL cost included in the regulatory tariff by ANRE, for the period 

1 January – 31 December 2022. An equivalent amount was also recognised in the profit or loss as „Other 

Basic and diluted earnings/(loss) per share 
(RON)

Consolidated statement of cash flows

income”.

1.65

2.35

(0.71)

The following table summarise the impact on the Group’s consolidated financial statements:

Cash flows from operating activities

Profit

Other income from initial recognition of financial 
assets rising from concession agreements 
amendments

Income tax (benefit)/expense

Changes in:

Other receivables

Other payables

31 December 2022
as reported 
previously

31 December 2022
reclassifications

31 December 2022 
as restated

558,845

(799,308)

(240,463)

(951,557)

951,557

-

105,078

(152,249)

(47,171)

(138,335)

722,407

152,249

(152,249)

13,914

570,158

Net cash flow used in operating activities

(1,029,967)

-

(1,029,967)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (IFRS-EU)FOR THE YEAR ENDED 31 DECEMBER 20232023 ANNUAL REPORTNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (IFRS-EU)2023 ANNUAL REPORTELECTRICA S.AFOR THE YEAR ENDED 31 DECEMBER 2023ELECTRICA S.A556

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6  Basis of measurement

Group has prepared a forecast that includes the 

implemented and the strategies to reduce the 

controlling interests are based on a proportionate 

following assumptions: 

risks which may occur due to the instability of the 

amount of the net assets of the subsidiary. 

The consolidated financial statements have been 

prepared on the historical cost basis except for the 

•  A continuation of the support scheme until 

land and buildings which are measured based on 

31 March 2025 according to the applicable 

the revaluation model.

7  Changes in significant accounting policies 

Adopting new standards

The Group has not adopted new standards issued 

by the International Accounting Standards Board 

legislation but with a more stable flow of 

repayments of the reimbursement requests for 

subsidies as compared with last year, as the 

mechanism has been operationally improved;

•  The renewal of confirmed debt facilities is 

planned up to a limit of RON 4,961,482 thousand, 

including RON 2,736,419 thousand overdraft limits 

(IASB) and adopted by the EU applicable on 1 

limit;

January 2023, so there is no significant change in 

economic environment, the Board of Directors 

has, at the time of approving the consolidated 

financial statements, a reasonable expectation that 

the Group has adequate resources to continue in 

operational existence for the foreseeable future. 

Thus they continue to adopt the going concern 

basis of accounting in preparing the consolidated 

financial statements.

(b)   Basis of consolidation

(iv) Transactions eliminated on consolidation

Intra-group balances and transactions, and any 

unrealized income and expenses arising from intra-

group transactions, are eliminated in preparing the 

consolidated financial statements. 

Unrealized gains arising from transactions with 

equity-accounted investees are eliminated against 

the investment to the extent of the Group’s interest 

in the investee. Unrealized losses are eliminated in 

the same way as unrealized gains, but only to the 

the consolidated statements of the Group.

•  The utilization of not yet confirmed facilities, 

The Group controls an entity when it is exposed 

Adoption of new changes to existing standards

which will be drawn during the forecast period 

involvement with the entity and has the ability to 

overdrafts amounting to RON 574,111 thousand 

to, or has rights to, variable returns from its 

(c)  Business combinations

and of which RON 250,000 thousand will be 

affect those returns through its power over the 

Subsidiaries are entities controlled by the Group. 

extent that there is no evidence of impairment.

and RON 2,225,063 thousand long term loans 

(i)  Subsidiaries

The group adopted the Presentation of information 

reimbursed during the forecast period.

regarding accounting policy (Amendments to IAS 1 

and Statement 2 regarding IFRS practice). Although 

the amendments did not lead to any change in the 

accounting policies themselves, they had an impact 

on the information presented in the consolidated 

financial statements regarding the accounting 

At the date of issuance of these consolidated 

financial statements the regulatory position may 

laws enacted which could adversely impact the 

Groups operating cash flows during the forecast 

policies. The management reviewed the accounting 

period. Given the current market uncertainties, the 

policies and updated the information presented in 

„Note 8 Accounting Policies” and Note 9 “Adoption 

of new and revised standards” (31 December 2022: 

„Note 6 Significant Accounting Policies” and Note 7 

“Adoption of new and revised standards”) in certain 

cases, in accordance with the changes.

Group is closely monitoring the market context 

and is continuously analysing the opportunities 

for optimisation of debt and increase of bank 

overdrafts and long-term loans. In light of the 

importance of the Group as the supplier and 

distributed of electricity on the Romanian market, 

having 39.7 % (according to the latest ANRE report 

Except the above, the new amendments to existing 

2022 for the distribution segment) as market share 

standards that are effective starting with 1 January 

on the electricity distribution and 17.72 % (according 

8  Accounting policies

(a)  Going concern

The consolidated financial statements have been 

prepared on the going concern basis. In making this 

judgement management considers current trading 

performance and access to finance resources. The 

market and having as main shareholder of Electrica 

SA the Romanian State, the management believes 

sufficient financing will be made available to cover 

any financing requirements arising from market 

uncertainty and Group will be able to meet its 

obligations as they fall due. 

Based upon the above projections and other 

information, given the measures already 

entity. Subsidiaries are included in the consolidation 

perimeter from the date that control commences 

until the date on which control ceases. 

Acquisitions of businesses are accounted for 

using the acquisition method. The consideration 

transferred in a business combination is measured 

at fair value, which is calculated as the sum of the 

acquisition-date fair values of assets transferred 

by the Group, liabilities incurred by the Group to 

the former owners of the acquiree and the equity 

On the loss of control, the Group derecognizes the 

interest issued by the Group in exchange for control 

assets and liabilities of the subsidiary, any non-

of the acquiree. Acquisition-related costs are 

controlling interests and the other components 

recognised in profit or loss as incurred.

of equity related to the subsidiary. Any surplus or 

deficit arising on the loss of control is recognized in 

(d)  Revenue

profit or loss. If the Group retains any interest in the 

previous subsidiary, then such interest is measured 

at fair value at the date that control is lost. 

Subsequently that retained interest is accounted 

for as an equity-accounted investee or as an 

available-for-sale financial asset depending on the 

(iii) Non-controlling interests

The Group recognize the revenues from contracts 

with customers in accordance with IFRS 15.

Under the standard, Revenue is recognized when 

or as the customer acquires control over the goods 

or services rendered, at the amount which reflects 

the price at which the Group is expected to be 

entitled to receive in exchange of those goods or 

services. Revenue is recognized at the fair value of 

The Group measures any non-controlling interests 

the services rendered or goods delivered, net of VAT, 

in the subsidiary at their proportionate share of the 

excises or other taxes related to the sale.

subsidiary’s identifiable net assets.

Changes in the Group’s interest in a subsidiary that 

do not result in a loss of control are accounted 

for as equity transactions. Adjustments to non-

Supply and distribution of electricity

The revenue from supply and distribution of 

electricity to consumers is recognized when 

2023 do not have a material impact over the 

to the latest ANRE report October 2022 for the supply 

level of influence retained.

Group’s consolidated financial statements.

segment) as market share on the electricity supply 

be further amended and there may be further 

(ii)  Loss of control

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (IFRS-EU)FOR THE YEAR ENDED 31 DECEMBER 20232023 ANNUAL REPORTNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (IFRS-EU)2023 ANNUAL REPORTELECTRICA S.AFOR THE YEAR ENDED 31 DECEMBER 2023ELECTRICA S.A558

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electricity is delivered to consumers (consumed by 

Generation and sale of electricity

the facts, circumstances and terms of each 

(g)  Finance income and finance costs

consumers), based on meter readings and based 

project and only recognised to the extent that 

on estimates for electricity delivered and for which 

The electricity produced by the Group is mainly 

it is highly probable not to significantly reverse 

The Group’s finance income and finance costs 

no reading was performed yet. The invoicing of 

sold on the Day Ahead Market and the revenue is 

in the future. Revenue in respect of claims is 

include:

electricity sales is performed on a monthly basis. 

recognized when the electricity is injected into the 

recognised only if it is highly probable not to 

Monthly electricity invoices are based on meter 

network and is being sold on the market.

reverse in future periods.

readings or on estimated consumptions based on 

the historical data of each consumer. Electricity 

supplied to consumers which is not yet billed as at 

the reporting date is accrued on the basis of recent 

average consumption or based on subsequent 

meter readings. Differences between estimated and 

actual amounts are recorded in subsequent periods. 

Revenues from electricity distribution and supply 

also include the cost of green certificates recharged 

by the Group to final consumers (see paragraph 

(k)). 

The Group acts in the capacity of an agent in case 

of transactions as Balancing Responsible Party 

(“BRP”). Thus, in its quality as an agent, the Group 

recognizes revenue for the commission earned 

in exchange for facilitating the transfer of goods 

or services. Any holder of a production/supply/

distribution license must be established as a 

Balancing Responsible Party or must delegate this 

responsibility to a Balancing Responsible Party. By 

delegating this responsibility to a BRP, there is the 

benefit of imbalance aggregation in the meaning of 

Balancing Market cost reduction by comparison with 

the case where the producer/supplier/distributor 

would act itself as a Balancing Responsible Party.  

Electrica Furnizare S.A. acts as BRP for a large 

number of participants, electricity producers as well 

as electricity suppliers and distribution operators. 

For the settlement of imbalances, BRP Electrica 

is using the “method of internal redistribution 

of payments”, ensuring benefits of imbalance 

aggregation for all the participants included in 

the BRP. BRP Electrica provides the transmission of 

physical notifications to CNTEE Transelectrica SA 

and its role is to balance the differences between 

the electricity contracted and the electricity 

measured at the level of the entire BRP.

Sale of green certificates

Electricity suppliers have a legal obligation to 

purchase green certificates from producers of 

electricity from renewable sources, based on annual 

targets or quotas set by law, which are applied to 

the quantity of electricity purchased and supplied 

to final customers. Cost of green certificates is 

invoiced to final customers separately from the 

tariffs for electricity.

Electricity producers are entitled by the law in force 

to receive a certain number of green certificates for 

each MWH of electricity produced from renewable 

sources and injected into the network. The green 

certificates can be sold on the spot market, term 

•  If the outcome of a construction contract can 

be estimated reliably, then contract revenue is 

recognised in profit or loss in proportion to the 

stage of completion of the contract. The stage of 

completion is assessed with reference to surveys 

of work performed. Otherwise, contract revenue 

is recognized only to the extent of contract costs 

incurred that are likely to be recoverable.

•  Contract expenses are recognized as incurred 

unless they create an asset related to future 

contract activity. An expected loss on a contract 

is recognised immediately as expense.

(e)  Other income

market or a combination of both. The selling price 

Revenues from the subsidies

must fall between the minimum and maximum 

values set by Law no. 220/2008 for establishing the 

system for promoting the production of electricity 

from renewable energy sources, republished, with 

subsequent amendments. Revenue from green 

certificates is recognized in the profit or loss 

statement when the green certificates are sold on 

the trading market.

Service concession arrangement

Revenue related to construction or upgrade 

services under service concession arrangement is 

recognised based on the stage of completion of 

the work performed, consistent with the accounting 

policy on recognising revenue on construction 

contracts, as follows:

Revenues from subsidies are recognised in profit or 

loss on a systematic basis over the periods in which 

the Group recognises as expenses the related costs 

for which the grants are intended to compensate, 

as a result of the application of the electricity price 

cap. These subsidies are recoverable from the 

National Agency for Payments and Social Inspection 

for household consumers and from the Ministry of 

Energy for non-household consumers, as a result 

of the application of the electricity and natural gas 

price ceiling mechanism and are applicable for 

period 1 November 2021 – 31 March 2025. Starting 

with April 2022, the revenues from subsidies are 

recorded as the difference between the income 

calculated at the contract price and the income 

invoiced to the customer at the capped price.

•  Revenue in respect of variations to contracts 

and incentive payments is recognised when 

(f)  Repairs and maintenance

there is an enforceable right to payment and 

Repair and maintenance expense is recorded as the 

it is highly probable it will be agreed by the 

operating expense base on an accrual basis.

customer. Variable consideration is assessed 

on a contract by contract basis according to 

•  interest income;

•  interest expense;

•  foreign currency gains or losses on financial 

assets and financial liabilities; 

•  impairment losses recognised on financial 

assets (other than trade receivables).

Interest income or expense is recognised using the 

effective interest method. 

Income from financial assets is initially recognised 

at fair value plus or minus transaction costs that are 

directly attributable to its acquisition or issue.

(h) 

Employee benefits

(i)  Short-term employee benefits

Short-term employee benefits are measured on 

an undiscounted basis and are expensed as the 

related service is provided. A liability is recognised 

for the amount expected to be paid if the Group has 

a present legal or constructive obligation to pay 

this amount as a result of past service provided by 

the employee and the obligation can be estimated 

reliably.

(ii)  Defined benefit plans

The Group’s net obligation in respect of defined 

benefit plans is calculated separately for each plan 

by estimating the amount of future benefit that 

employees have earned in the current and prior 

periods, discounting that amount.

The calculation of defined benefit obligations is 

performed annually by a qualified actuary using the 

projected unit credit method. 

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (IFRS-EU)FOR THE YEAR ENDED 31 DECEMBER 20232023 ANNUAL REPORTNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (IFRS-EU)2023 ANNUAL REPORTELECTRICA S.AFOR THE YEAR ENDED 31 DECEMBER 2023ELECTRICA S.A560

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Re-measurements of the net defined benefit liability, 

(i)  Current tax

in which the Group expects, at the reporting date, to 

(j)  Green certificates

which comprise actuarial gains and losses, are 

recover or settle the carrying amount of its assets 

recognised immediately in other comprehensive 

Current tax comprises the expected tax payable or 

and liabilities. Deferred tax assets and liabilities are 

Electricity supply

income. The Group determines the net interest 

expense/(income) on the net defined benefit 

receivable on the taxable income or loss for the year 

and any adjustment to tax payable or receivable 

liability for the period by applying the discount rate 

in respect of previous years. It is measured using 

offset only if certain criteria are met. 

Unrecognized deferred tax assets are reassessed at 

purchase green certificates from producers of 

Electricity suppliers have a legal obligation to 

used to measure the defined benefit obligation at 

tax rates enacted or substantively enacted at the 

each reporting date and recognized to the extent 

electricity from renewable sources, based on annual 

the beginning of the annual period to the then-net 

reporting date. Current tax also includes any tax 

defined benefit liability, taking into account any 

arising from dividends.

changes in the net defined benefit liability during 

the period as a result of contributions and benefit 

payments. Net interest expense and other expenses 

related to defined benefit plans are recognised in 

profit or loss.

When the benefits of a plan are changed or when 

a plan is curtailed, the resulting change in benefit 

that relates to past service or the gain or loss on 

curtailment is recognised immediately in profit or 

loss. The Group recognises gains and losses on 

the settlement of a defined benefit plan when the 

settlement occurs.

(iii) Other long-term employee benefits

The Group’s net obligation in respect of long-term 

employee benefits is the amount of future benefit 

that employees have earned in return for their 

service in the current and prior periods. That benefit 

is discounted to determine its present value. Re-

measurements are recognised in profit or loss in the 

period in which they arise.

(ii)  Deferred tax

Deferred tax is recognised in respect of temporary 

differences between the carrying amounts of assets 

and liabilities for financial reporting purposes and 

the amounts used for taxation purposes. Deferred 

tax is not recognised for:

•  temporary differences on the initial recognition 

of assets or liabilities in a transaction that is not 

a business combination and that affects neither 

accounting nor taxable profit or loss;

•  temporary differences related to investments in 

subsidiaries, associates and joint arrangements 

to the extent that the Group is able to control 

the timing of the reversal of the temporary 

differences and it is probable that they will not 

reverse in the foreseeable future; and

that it has become probable that the future taxable 

targets or quotas set by law, which are applied to 

profits will be available against which they can be 

the quantity of electricity purchased and supplied to 

used.

final customers.

The Group applies IFRIC 23 „Uncertainty over Income 

The cost of green certificates is accrued in the profit 

Tax Treatments”. IFRIC 23 clarifies how to apply 

or loss based on the quantitative quota determined 

the recognition and measurement requirements 

by the regulator representing the quantity of the 

in IAS 12 when there is uncertainty over income tax 

green certificates that the Group has to purchase 

treatments. 

for the year and based on the price of green 

certificates acquired on the centralized market. The 

In such a circumstance, the Group shall recognise 

obligation for covering the annual acquisition quota 

and measure its current or deferred tax asset or 

is accrued in profit or loss.

liability applying the requirements in IAS 12 based 

on taxable profit (tax loss), tax bases, unused tax 

Electricity generation

losses, unused tax credits and tax rates determined 

applying this interpretation.

Electricity producers are entitled by the law in force 

to receive a certain number of green certificates for 

The Group assesses whether it is probable (more 

each MWH of electricity produced from renewable 

than 50% chances) that a tax authority will accept 

sources and injected into the network. 

an uncertain tax treatment.

Thus, the Group shall reflect the effect of uncertainty 

when the producer has the right to receive as a 

for each uncertain tax treatment by using either of 

result of energy produced and delivered into the 

Green certificates are recognized as inventories 

•  taxable temporary differences arising on the 

the following methods, depending on which method 

network, at nil nominal value. Recognition in the 

initial recognition of goodwill.

the entity expects to better predict the resolution of 

profit and loss account is done at the time of their 

the uncertainty: 

sale.

(iv) Termination benefits

Deferred tax assets are recognised for unused tax 

losses, unused tax credits and deductible temporary 

(a) the most likely amount - the single most likely 

(k)  Inventories

Termination benefits are expensed at the earlier of 

when the Group can no longer withdraw the offer of 

those benefits and when the Group recognises costs 

for a restructuring. If benefits are not expected to 

be settled wholly within 12 months of the end of the 

reporting period, then they are discounted.

differences to the extent that it is probable that 

future taxable profits will be available against which 

they can be used. Deferred tax assets are reviewed 

at each reporting date and are reduced to the 

extent that it is no longer probable that the related 

tax benefit will be realised.

(i) Income tax

Deferred tax is measured at the tax rates that are 

expected to be applied to temporary differences 

Income tax expense comprises current and deferred 

when they reverse, using tax rates enacted or 

tax. It is recognised in profit or loss except to the 

substantively enacted at the reporting date. The 

extent that it relates to a business combination 

measurement of deferred tax reflects the tax 

or items recognised directly in equity or in other 

consequences that would follow from the manner 

comprehensive income.

amount in a range of possible outcomes. The 

most likely amount may better predict the 

resolution of the uncertainty if the possible 

outcomes are binary or are concentrated on one 

value. 

Inventories consist mainly of spare parts that do not 

meet the recognition criteria for property, plant and 

equipment, consumables, goods for resale, other 

inventories and the natural gas storage.

(b) the expected value - the sum of the 

Inventories are measured at the lower of cost and 

probability-weighted amounts in a range of 

possible outcomes. The expected value may 

better predict the resolution of the uncertainty 

if there is a range of possible outcomes that are 

neither binary nor concentrated on one value.

net realizable value. 

The cost of inventories is based on the weighted 

average cost method. The cost of inventories 

includes all the acquisition costs and other 

expenses related to bringing the inventories to their 

current place and condition.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (IFRS-EU)FOR THE YEAR ENDED 31 DECEMBER 20232023 ANNUAL REPORTNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (IFRS-EU)2023 ANNUAL REPORTELECTRICA S.AFOR THE YEAR ENDED 31 DECEMBER 2023ELECTRICA S.A562

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Consumables used for the repairs and maintenance 

Spare parts, stand-by and servicing equipment 

subsequently amended and supplemented, access 

•  From 25 July 2022 they do not become part of 

of the electricity network are included in profit and 

are classified as property, plant and equipment if 

to power grids of public interest is a mandatory 

the distribution operator’s assets, on the basis of 

loss when consumed and presented in “Repairs, 

they are expected to be used during more than one 

service provided under regulatory conditions, which 

Law no. 248/2022 and ANRE Order no. 133/2022, 

maintenance and materials”.

period or can be used only in connection with an 

the transmission and system operator as well as the 

they are only transferred to the distribution 

item of property, plant and equipment.

distribution operators must ensure. 

operator for operation.

(l)  Property, plant and equipment

(i)  Recognition and measurement

plant and equipment is recognised in profit or loss.

distribution operators are obliged to communicate 

160/2020 amending ANRE Order no.59/2013, the 

Any gain or loss on disposal of an item of property, 

At the request of a new or pre-existing customer, the 

Starting with 2021, according to ANRE Order no. 

Property, plant and equipment are stated initially at 

(ii)  Subsequent expenditure

cost, which includes purchase price and other costs 

directly attributable to acquisition and bringing the 

Subsequent expenditure is capitalised only if it 

asset to the location and condition necessary for 

is probable that the future economic benefits 

their intended use. 

associated with the expenditure will flow to the 

After initial recognition, land and buildings 

are measured at revalued amounts less any 

(iii) Depreciation

accumulated depreciation and any accumulated 

Group.

impairment losses since the most recent valuation. 

Depreciation is calculated to write off the cost of 

The other items of property, plant and equipment 

items of property, plant and equipment less their 

are measured at cost less any accumulated 

estimated residual values using the straight-line 

depreciation and any accumulated impairment 

method over their estimated useful lives and is 

losses. Revaluations of land and buildings are made 

recognised in profit or loss. Leased assets are 

with sufficient regularity to ensure that the carrying 

depreciated over the shorter of the lease term and 

amount does not differ materially from the one that 

their useful lives unless it is reasonably certain that 

would be determined using the fair value at the end 

the Group will obtain ownership by the end of the 

of the reporting period. When a building is revalued, 

lease term. Land and construction in progress are 

the accumulated depreciation is eliminated against 

not depreciated.

the gross carrying amount of that item, and the net 

amount is restated to the revalued amount of the 

asset. 

The estimated useful lives of property, plant and 

equipment are as follows:

the technical and economic conditions for the 

connection installations that are financed by the 

connection network and to cooperate with the 

customers will remain in their ownership and are 

applicant to choose the most advantageous 

being exploited by the network operator. However, 

technical and economic solution. Afterwards, 

according to ANRE Order no. 17/2021 for the 

a connection contract is concluded between 

connection installations of all household consumers 

the distribution operator and the customer at 

and of the non-household with lengths less than 2.5 

a regulated tariff. The actual construction of 

km, the distribution operator has the obligation to 

the connection installation is carried out by a 

finance them and these will remain in the ownership 

construction supplier certified by ANRE. 

of the network operator.

The Group collects cash from customers, which 

(n)  Intangible asset in a service concession 

is used only to pay for the construction of the 

arrangement

connection station, and the Group must then use 

this asset to connect customers to the network. 

(i) Recognition and measurement

According to ANRE Order no. 59/2013, with 

subsequent amendments, these assets remain in 

the ownership of the network operator.

The Group recognises an intangible asset arising 

from a service concession arrangement when it 

has a right to charge for use of the concession 

The Group recognizes the assets at nil value, net of 

infrastructure. An intangible asset received as 

the amount of the deferred income representing the 

consideration for providing construction or upgrade 

contributions from customers. The assets financed 

services in a service concession arrangement is 

from connection fees received from the new users of 

measured at fair value on initial recognition with 

the distribution network are not included in the RAB. 

reference to the fair value of the services provided. 

At the end of the concession contract, the assets 

Subsequent to initial recognition, the intangible 

built from the connection tariff will be transferred to 

asset is measured at cost, less accumulated 

If significant parts of an item of property, plant 

and equipment have different useful lives, then 

they are accounted for as separate items (major 

components) of property, plant and equipment.

Properties in the course of construction for 

production, supply or administrative purposes, or 

for purposes not yet determined, are carried at 

cost, less any recognised impairment loss. Cost 

includes professional fees and, for qualifying assets, 

borrowing costs capitalised in accordance with the 

Group’s accounting policy. Depreciation of these 

assets, determined on the same basis as other 

property assets, commences when the assets are 

ready for their intended use.

Category

Buildings

Equipment

Motor vehicles and office 
equipment

Useful lives (years)

the concessionaire free of charge together with the 

amortization and accumulated impairment losses.

45-70

3-25

3-10

assets part of RAB.

In the case of non-household customers, the value 

of the connection works, including those for the 

design/construction of the connection/connection, 

is entirely borne by the customers. Assets resulting 

from connection work:

(ii) Amortization

The amortization method used is selected on the 

basis of the expected pattern of consumption of 

the expected future economic benefits embodied 

in the asset, and is applied consistently from 

period to period, unless there is a change in the 

Depreciation methods, useful lives and residual 

values are reviewed at each reporting date and 

adjusted if appropriate.

(m)  Connection fees

According to art. 25 paragraph (1) of Law no. 

123/2012 on electricity and natural gas, as 

•  In the period from 1 January 2022 to 24 July 2022, 

expected pattern of consumption of those future 

they enter the distribution operator’s assets from 

economic benefits. The Group determined that the 

the time of commissioning, on the basis of GEO 

amortization method that reflects appropriately the 

no. 143/2021, without being recognised by ANRE 

expected pattern of consumption of the expected 

as part of the regulated asset base.

future economic benefits is correlated with the 

amortisation of the regulated asset base “RAB”. 

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(o)  Other intangible assets

(q)  Financial instruments

consist solely of payments of principal and interest 

The exemption was applicable between 1 November 

(i)  Recognition and measurement

Financial assets and financial liabilities are 

on the principal amount outstanding.

2021 until 31 January 2022 for several types of non-

household consumers from payment of regulated 

Other intangible assets that are acquired by the 

position when the Group becomes a party to the 

amount at which the financial asset is measured 

Group and have finite useful lives are measured 

contractual provisions of the instrument. 

at initial recognition minus the principal 

Cash and cash equivalents

at cost less accumulated amortization and any 

reimbursements, plus the cumulative amortization 

accumulated impairment losses.

Financial assets and financial liabilities are initially 

using the effective interest method of any difference 

Cash and cash equivalents comprise cash 

recognised in the Group’s statement of financial 

The amortized cost of a financial asset is the 

tariffs and other taxes/contributions.

(ii)  Subsequent expenditure

Subsequent expenditure is capitalised only when it 

increases the future economic benefits embodied 

in the specific asset to which it relates. All other 

expenditure, including expenditure on internally 

generated goodwill and brands, is recognised in 

profit or loss as incurred.

(iii) Amortization

Amortization is calculated to write off the cost of 

intangible assets less their estimated residual 

values using the straight-line method over their 

estimated useful lives and is generally recognised in 

profit or loss. 

The estimated useful lives of software and licenses 

are 3-5 years.

Amortization methods, useful lives and residual 

values are reviewed at each reporting date and 

adjusted if appropriate.

(p)  Goodwill

Goodwill is measured as the value of the 

consideration transferred (fair value) plus the 

amount of any non-controlling interest (NCI) plus 

the fair value of previous equity interests minus 

the net of the acquisition-date amounts of the 

identifiable assets acquired and the liabilities 

assumed (measured in accordance with IFRS 3).

Goodwill arising on the acquisition of subsidiaries 

is measured at cost less accumulated impairment 

losses.

measured at fair value. Transaction costs that are 

directly attributable to the acquisition or issue of 

financial assets and financial liabilities (other than 

financial assets and financial liabilities at fair value 

through profit or loss) are added to or deducted 

from the fair value of the financial assets or financial 

between that initial amount and the maturity 

amount, adjusted for any loss allowance. The 

balances, call deposits and deposits with maturities 

of three months or less from the set-up date that 

gross carrying amount of a financial asset is the 

are subject to an insignificant risk of changes in 

amortized cost of a financial asset before adjusting 

their fair value and are used by the Group in the 

for any loss allowance.

management of its short-term commitment.

liabilities, as appropriate, on initial recognition. 

Foreign exchange gains and losses

(ii)  Financial liabilities

Transaction costs directly attributable to the 

acquisition of financial assets or financial liabilities 

at fair value through profit or loss are recognised 

immediately in profit or loss.

A financial instrument is any contract that gives 

rise to both a financial asset of one enterprise 

and a financial liability or equity shares of another 

enterprise. For this purpose, a financial asset is any 

asset that is (a) cash; (b) a contractual right to 

receive cash or another financial asset from another 

enterprise; (c) a contractual right to exchange 

financial instruments with another enterprise under 

conditions that are potentially favourable; or (d) an 

equity share of another enterprise.

(i)  Financial assets

All regular way purchases or sales of financial 

assets are recognised and derecognised on a trade 

date basis. Regular way purchases or sales are 

purchases or sales of financial assets that require 

delivery of assets within the time frame established 

by regulation or convention in the marketplace. 

All recognised financial assets are measured 

subsequently in their entirety at either amortised 

cost or fair value, depending on the classification of 

the financial assets.

Financial assets are initially measured at fair value 

and subsequently at amortized cost in accordance 

with IFRS 9, as they are held in a business model to 

collect contractual cash flows and these cash flows 

The carrying amount of financial assets that are 

All financial liabilities are measured subsequently at 

denominated in a foreign currency is determined in 

amortised cost using the effective interest method 

that foreign currency and translated at the spot rate 

or at fair value through profit or loss. 

at the end of each reporting period.

Loans and receivables

Financial liabilities that are not (i) contingent 

consideration of an acquirer in a business 

combination, (ii) held-for-trading, or (iii) valued 

These assets are initially recognised at fair 

as at fair value, are measured subsequently at 

value plus any directly attributable transaction 

amortised cost using the effective interest method. 

costs. Subsequent to initial recognition, they are 

measured at amortised cost using the effective 

The effective interest method is a method of 

interest method. The amortised cost is reduced by 

calculating the amortised cost of a financial liability 

impairment losses. Loans and receivables comprise 

and of allocating interest expense over the relevant 

trade receivables, cash and cash equivalents and 

period. The effective interest rate is the rate that 

deposits. 

Trade receivables

exactly discounts estimated future cash payments 

(including all fees and points paid or received that 

form an integral part of the effective interest rate, 

transaction costs and other premiums or discounts) 

Trade receivables include mainly unsettled 

through the expected life of the financial liability, 

invoices issued until reporting date for supply and 

or (where appropriate) a shorter period, to the 

distribution of electricity and services, late payment 

amortised cost of a financial liability.

penalties and accrued revenue for electricity 

delivered and services rendered until the end of the 

Other financial liabilities include bank borrowings, 

year,but invoiced after the end of the ye.

bank overdrafts, financing for network construction 

related to concession agreements and trade 

Other receivables from capping schemes:

payables.

The compensation of household consumers for part 

of the costs incurred by the electricity invoices was 

applicable between 1 November 2021 until 31 March 

2022.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (IFRS-EU)FOR THE YEAR ENDED 31 DECEMBER 20232023 ANNUAL REPORTNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (IFRS-EU)2023 ANNUAL REPORTELECTRICA S.AFOR THE YEAR ENDED 31 DECEMBER 2023ELECTRICA S.A566

567

(iii)   Share capital

(i) Significant increase in credit risk

Derecognition of financial assets

(s)  Dividends

Ordinary shares

In assessing whether the credit risk on a financial 

The Group derecognises a financial asset only 

Dividends are recognized as a deduction from 

instrument has increased significantly since initial 

when the contractual rights to the cash flows from 

equity in the period in which their distribution is 

Ordinary shares are classified as equity. Incremental 

recognition, the Group compares the risk of a 

the asset expire, or when it transfers the financial 

approved and recognised as a liability to the extent 

costs directly attributable to the issue of ordinary 

default occurring on the financial instrument at the 

asset and substantially all the risks and rewards 

it is unpaid at the reporting date. Dividends are 

shares, net of any tax effects, are recognised as a 

reporting date with the risk of a default occurring 

of ownership of the asset to another entity. If the 

disclosed in the notes to financial statements when 

deduction from equity.

on the financial instrument at the date of initial 

Group neither transfers nor retains substantially all 

their distribution is proposed after the reporting 

recognition. 

the risks and rewards of ownership and continues to 

date and before the date of the issuance of the 

premium.

(iv)  Impairment

appropriate. Any recoveries made are recognised in 

profit or loss. 

If an asset’s carrying amount is increased as a 

Repurchase and reissue of ordinary shares 

(treasury shares)

When shares recognised as equity are repurchased, 

the amount of the consideration paid, which 

includes directly attributable costs, net of any tax 

effects, is recognised as a deduction from equity. 

Repurchased shares are classified as treasury 

Irrespective of the above analysis, the Group 

considers that default has occurred when a 

financial asset is more than 90 days past due 

unless the Group has reasonable and supportable 

information to demonstrate that a more lagging 

default criterion is more appropriate.

shares and are presented in the treasury share 

(ii) Write-off policy

reserve. 

When treasury shares are sold or reissued 

finalization of the bankruptcy proceedings. 

subsequently, the amount received is recognised 

Financial assets written off may still be subject to 

as an increase in equity and the resulting surplus or 

enforcement activities under the Group’s recovery 

deficit on the transaction is presented within share 

procedures, taking into account legal advice where 

The Group writes off a financial asset after the 

Impairment of financial assets

credit losses

(iii) Measurement and recognition of expected 

The Group recognizes a loss allowance for expected 

credit losses on investments in debt instruments 

that are measured at amortized cost or at fair 

value through other comprehensive income. The 

amount of expected credit losses is updated at 

each reporting date to reflect changes in credit risk 

since initial recognition of the respective financial 

instrument.

The Group always recognizes lifetime expected 

credit losses for trade receivables. The expected 

credit losses on these financial assets are estimated 

using a provision matrix based on the Group’s 

historical credit loss experience, adjusted for factors 

that are specific to the debtors, general economic 

conditions and an assessment of both the current 

The measurement of expected credit losses is a 

function of the probability of default, loss given 

default (i.e. the magnitude of the loss if there 

is a default) and the exposure at default. The 

assessment of the probability of default and loss 

forward-looking information as described above. As 

for the exposure at default, for financial assets, this 

is represented by the assets’ gross carrying amount 

at the reporting date.

For financial assets, the expected credit loss is 

estimated as the difference between all contractual 

cash flows that are due to the Group in accordance 

with the contract and all the cash flows that the 

Group expects to receive, discounted at the original 

as well as the forecast direction of conditions at the 

effective interest rate.

reporting date, including time value of money where 

appropriate.

control the transferred asset, the Group recognises 

financial statements.

its retained interest in the asset and an associated 

liability for amounts it may have to pay. If the Group 

(t)  Pre-paid capital contributions in kind from 

retains substantially all the risks and rewards of 

shareholders

ownership of a transferred financial asset, the Group 

continues to recognise the financial asset and 

also recognises a collateralised borrowing for the 

proceeds received.

(r)  Revaluation reserve

These contributions from a shareholder represent 

pre-paid contributions of land for which the 

Company obtained title deeds in respect of future 

issuance of shares. The amounts recorded are 

based on the fair value of the land.

The difference between the revalued amount and 

(u)  Provisions

the net carrying amount of property, plant and 

equipment is recognised as revaluation reserve 

included in equity.

A provision is recognised if, as a result of a past 

event, the Group has a present, legal or constructive 

obligation that can be estimated reliably, and it is 

probable that an outflow of economic benefits will 

result of a revaluation, the increase is recognised 

be required to settle the obligation. Provisions are 

and accumulated in equity under the heading 

of revaluation reserve. However, the increase is 

recognised in profit and loss to the extent that 

it reverses a revaluation decrease of the same 

determined by discounting the expected future cash 

flows at a pre-tax rate that reflects current market 

assessments of the time value of money and the 

risks specific to the liability. The unwinding of the 

amount of the asset previously recognised in profit 

discount is recognised as finance cost.

and loss.

If an asset’s carrying amount is decreased as a 

the Group has approved a detailed and formal 

A provision for restructuring is recognised when 

in profit or loss. However, the decrease is recognized 

has commenced or has been announced publicly. 

in equity in revaluation reserves if there is any 

Future operating losses are not provided for.

credit balance existing in the revaluation reserve in 

respect of that asset. 

The revaluation reserve is transferred to retained 

earnings in an amount corresponding to the use of 

the asset (as the asset is depreciated) and upon 

disposal of the asset.

(v)  Contingent assets and liabilities

A contingent liability is:

(a) a possible obligation that arises from past 

events and whose existence will be confirmed 

only by the occurrence or non-occurrence of 

one or more uncertain future events not wholly 

within the control of the Group; or

given default is based on historical data adjusted by 

result of a revaluation, the decrease is recognised 

restructuring plan, and the restructuring either 

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (IFRS-EU)FOR THE YEAR ENDED 31 DECEMBER 20232023 ANNUAL REPORTNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (IFRS-EU)2023 ANNUAL REPORTELECTRICA S.AFOR THE YEAR ENDED 31 DECEMBER 2023ELECTRICA S.A568

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(b) a present obligation that arises from past events 

The Group remeasures the lease liability (and 

(x)  Investment in associates

whether it is necessary to recognise any impairment 

that is not recognised because:

makes a corresponding adjustment to the related 

loss with respect to the Group’s investment in an 

i.   it is not probable that an outflow of resources 

right-of-use asset) whenever:

An associate is an entity over which the Group has 

associate. When the entire carrying amount of 

significant influence and that is neither a subsidiary 

the investment (including goodwill) is tested for 

embodying economic benefits will be 

•  the lease term has changed or there is a 

nor an interest in a joint venture. Significant 

impairment in accordance with IAS 36 as a single 

required to settle the obligation; or

significant event or change in circumstances 

influence is the power to participate in the financial 

asset by comparing its recoverable amount (higher 

resulting in a change in the assessment of 

and operating policy decisions of the investee but is 

of value in use and fair value less costs of disposal) 

exercise of a purchase option, in which case the 

not control or joint control over those policies. 

ii.  the amount of the obligation cannot be 

measured with sufficient reliability.

lease liability is remeasured by discounting the 

revised lease payments using a revised discount 

Contingent liabilities are not recognized in the 

Group’s financial statements, but disclosed unless 

rate;

the possibility of an outflow of resources embodying 

•  the lease payments change due to changes 

The results and assets and liabilities of associates 

are incorporated in these consolidated financial 

statements using the equity method of accounting, 

except when the investment is classified as held for 

economic benefits is remote.

in an index or rate or a change in expected 

sale, in which case it is accounted for in accordance 

payment under a guaranteed residual value, 

with IFRS 5. 

with its carrying amount. Any impairment loss 

recognised is not allocated to any asset, including 

goodwill that forms part of the carrying amount of 

the investment. Any reversal of that impairment 

loss is recognised in accordance with IAS 36 to 

the extent that the recoverable amount of the 

investment subsequently increases. 

The Group discontinues the use of the equity 

method from the date when the investment ceases 

A contingent asset is a possible asset that 

arises from past events and whose existence will 

be confirmed only by the occurrence or non-

occurrence of one or more uncertain future events 

not wholly within the control of the Group.

A contingent asset is not recognized in the Group’s 

financial statements, but disclosed when an inflow 

of economic benefits is probable.

(w) Leases

(i)  The Group as lessee

basis over the term of the lease unless another 

systematic basis is more representative of the time 

pattern in which economic benefits from the leased 

assets are consumed. 

The lease liability is initially measured at the present 

value of the lease payments that are not paid at 

the commencement date, discounted by using 

the default rate in the lease. If this rate cannot be 

readily determined, the Group uses its incremental 

borrowing rate.

The lease liability is presented as a separate line 

in the consolidated statement of financial position. 

The lease liability is subsequently measured by 

increasing the carrying amount to reflect interest 

on the lease liability (using the effective interest 

method) and by reducing the carrying amount to 

reflect the lease payments made.

in which cases the lease liability is remeasured 

by discounting the revised lease payments 

using an unchanged discount rate (unless the 

lease payments change is due to a change in 

a floating interest rate, in which case a revised 

discount rate is used);

•  a lease contract is modified and the lease 

modification is not accounted for as a separate 

lease, in which case the lease liability is 

remeasured based on the lease term of the 

modified lease by discounting the revised lease 

payments using a revised discount rate at the 

effective date of the modification.

underlying asset. If a lease transfers ownership 

of the underlying asset or the cost of the right-

of-use asset reflects that the Group expects to 

exercise a purchase option, the related right-of-

use asset is depreciated over the useful life of the 

underlying asset. The depreciation starts at the 

commencement date of the lease. The right-of-

use assets are presented as a separate line in the 

consolidated statement of financial position. 

(ii)  Rental income

Rental income from property, plant and equipment 

other than investment property is recognised as 

Other income. Rental income is recognised on a 

Under the equity method, an investment in an 

associate is recognised initially in the consolidated 

to be an associate.

statement of financial position at cost and adjusted 

thereafter to recognise the Group’s share of the 

(y)  Segment reporting

profit or loss and other comprehensive income of 

the associate. 

Segment results that are reported to the Company’s 

Board of Directors (the chief operating decision 

When the Group’s share of losses of an associate 

maker) include items directly attributable to a 

exceeds the Group’s interest in that associate 

segment as well as those that can be allocated on a 

(which includes any long-term interests that, in 

reasonable basis. 

substance, form part of the Group’s net investment 

in the associate), the Group discontinues 

(z)  Subsequent events 

recognising its share of further losses. Additional 

An investment in an associate is accounted for 

in the consolidated financial statements. Events 

using the equity method from the date on which 

occurring after the reporting date that provide 

the investee becomes an associate. On acquisition 

information on events that occurred after the 

of the investment in an associate, any excess of 

reporting date (non-adjusting events), when 

the cost of the investment over the Group’s share 

material, are disclosed in the notes to the 

of the net fair value of the identifiable assets and 

consolidated financial statements. When the going 

liabilities of the investee is recognised as goodwill, 

concern assumption is no longer appropriate at or 

which is included within the carrying amount of the 

after the reporting period, the financial statements 

investment. Any excess of the Group’s share of the 

are not prepared on a going concern basis.

net fair value of the identifiable assets and liabilities 

over the cost of the investment, after reassessment, 

is recognised immediately in profit or loss in the 

period in which the investment is acquired.

Right-of-use assets are depreciated over the 

losses are recognised only to the extent that the 

Events occurring after the reporting date 31 

Group has incurred legal or constructive obligations 

December 2023, which provide additional 

shorter period of lease term and useful life of the 

or made payments on behalf of the associate. 

information about conditions prevailing at the 

reporting date (adjusting events) are reflected 

straight-line basis over the term of the lease.

The requirements of IAS 36 are applied to determine 

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9  Adoption of new and revised standards and 

As of 31 December 2023, the Group adopted 

of publication of these consolidated financial 

new IFRS international financial reporting standard 

interpretations

Disclosure of Accounting Policies (Amendments to 

statements (the effective dates stated below is for 

that will align the current standard „IFRS 14 Deferral 

Initial application of new amendments to the 

existing standards effective for the current 

reviewed the accounting policies and made 

updates as per “Note 7 Changes in significant 

IAS 1 and IFRS Practice Statement 2).  Management 

IFRS as issued by IASB): 

•  IFRS 14 “Regulatory Deferral Accounts” (effective 

global level, which is expected to take into account 

Accounts Related to Regulated Activities” to the 

new requirements of the energy market at EU and 

reporting period

accounting policies”  in certain instances in line with 

for annual periods beginning on or after 1 

all relevant related subjects, including the proper 

The following amendments to the existing standards 

issued by the International Accounting Standards 

Except of the above, the adoption of amendments 

the amendments.

January 2016) – the European Commission has 

treatment of own technological consumption 

decided not to launch the endorsement process 

expenses. IASB has redeliberated proposals in the 

of this interim standard and to wait for the final 

Exposure Draft Regulatory Assets and Regulatory 

Board (IASB) and adopted by the EU are effective for 

to the existing standards has not led to any material 

standard;

the current reporting period:

changes in the Group’s consolidated financial 

statements.

•  IFRS 17 “Insurance Contracts” including 

amendments to IFRS 17 issued by IASB on 25 June 

Standards and amendments to the existing 

2020 - adopted by the EU on 19 November 2021 

standards issued by IASB and adopted by the EU 

(effective for annual periods beginning on or 

but not yet effective

after 1 January 2023);

•  Amendments to IFRS 17 “Insurance contracts” 

financial statements, the following amendments 

At the date of authorization of these consolidated 

•  Amendments to IAS 1 “Presentation of Financial 

Statements” - Classification of Liabilities as 

Current or Non-Current (effective for annual 

periods beginning on or after 1 January 2024);

•  Amendments to IAS 1 “Presentation of Financial 

Statements” - Non-current Liabilities with 

Covenants (effective for annual periods 

- Initial Application of IFRS 17 and IFRS 9 – 

to the existing standards were issued by IASB and 

beginning on or after 1 January 2024);

Comparative Information, adopted by the EU on 

adopted by the EU and which are not yet effective:

9 September 2022 (effective for annual periods 

beginning on or after 1 January 2023);

• 

The first two IFRS Sustainability Disclosure 

Standards in June 2023: IFRS S1 General 

•  Amendments to IAS 1 “Presentation of Financial 

Requirements for Disclosure of Sustainability-

•  Amendments to IFRS 16 “Leases” - Lease Liability 

in a Sale and Leaseback (effective for annual 

periods beginning on or after 1 January 2024);

Statements” and IFRS Practice Statement 2 - 

related Financial Information and IFRS S2 

•  Amendments to IFRS 10 “Consolidated 

Disclosure of Accounting Policies adopted by the 

Climate-related Disclosures, adopted by the EU 

Financial Statements” and IAS 28 “Investments 

EU on 2 March 2022 (effective for annual periods 

on 31 July 2023 (effective for annual reporting 

beginning on or after 1 January 2023);

periods beginning on or after 1 January 2024).

•  Amendments to IAS 8 “Accounting Policies, 

The Group has elected not to adopt the 

Changes in Accounting Estimates and Errors” 

amendments to existing standards in advance of 

– Definition of Accounting Estimates adopted 

their effective dates. The Group anticipates that 

by the EU on 2 March 2022 (effective for annual 

the adoption of these amendments to existing 

periods beginning on or after 1 January 2023);

standards will have no material impact on the 

financial statements of the Group in the period of 

•  Amendments to IAS 12 “Income Taxes” - Deferred 

initial application.

Tax related to Assets and Liabilities arising 

in Associates and Joint Ventures” - Sale or 

Contribution of Assets between an Investor 

and its Associate or Joint Venture and 

further amendments (effective date deferred 

indefinitely until the research project on the 

equity method has been concluded);

•  Amendments to IAS 21 The Effects of Changes in 

Foreign Exchange Rates: Lack of Exchangeability 

(applicable for annual periods beginning on or 

after 1 January 2025, but not yet endorsed in the 

from a Single Transaction adopted by the EU 

New standards and amendments to the existing 

EU);

on 11 August 2022 (effective for annual periods 

standards issued by IASB but not yet adopted by 

beginning on or after 1 January 2023);

the EU

•  International Tax Reform—Pillar Two Model Rules 

At present, IFRS as adopted by the EU do not 

– Amendments to IAS 12 (the Amendments) to 

significantly differ from regulations adopted by 

clarify the application of IAS 12 “Income Taxes” 

the International Accounting Standards Board 

(effective for annual periods beginning on or 

(IASB) except for the following new standards and 

•  Amendments to IAS 7 Statement of Cash Flows 

and IFRS 7 Financial Instruments: Disclosures: 

Supplier Finance Arrangements (applicable for 

annual periods beginning on or after 1 January 

2024, but not yet endorsed in the EU).

after 1 January 2023).

amendments to the existing standards, which 

were not endorsed for use in EU as at the date 

The International Accounting Standards Board has 

been currently working on the development of a 

Liabilities based on the feedback received on 

previous variants on Exposure Drafts made available 

for public comment (https://www.ifrs.org/projects/

work-plan/rate-regulated-activities/#current-

stage). As debated in exposure drafts, until now 

there is no approved legislation at IASB level. 

Currently IFRS 14 (originally issued in January 2014 

and applied to an entity’s first annual IFRS financial 

statements for a period beginning on or after 1 

January 2016) can be applied only when a reporting 

entity is a IFRS First Time Adopter. As the Group is 

not a IFRS First Time Adopter, the management of 

the Company did not consider any impact coming 

out from the application of IFRS 14, further guidance 

being expected in the future.

The Group anticipates that the adoption of these 

new standards and amendments to the existing 

standards will have no material impact on the 

consolidated financial statements of the Group in 

the period of initial application. 

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (IFRS-EU)FOR THE YEAR ENDED 31 DECEMBER 20232023 ANNUAL REPORTNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (IFRS-EU)2023 ANNUAL REPORTELECTRICA S.AFOR THE YEAR ENDED 31 DECEMBER 2023ELECTRICA S.A572

573

10  Operating segments

(a)  Basis for segmentation

The following summary describes the operations of each reportable segment:

Reportable segments

Operations

Electricity and natural gas 
supply

Buying and supplying electricity and natural gas to final consumers 
(includes Electrica Furnizare S.A.)

Electricity distribution

Electricity generation

Operation, maintenance and construction of electricity networks 
operated by the Group (includes Distributie Energie Electrica Romania 
S.A. and the activity performed by Electrica Serv S.A within the 
distribution network).

Production of electricity from renewable sources (Sunwind Energy 
S.R.L., New Trend Energy S.R.L., and Foton Power Energy S.R.L and the 
activity carried out by Electrica S.A. in the electricity production 
segment).

External electricity network 
maintenance

Repairs, maintenance and other services for electricity networks 
owned by other distributors (Electrica Serv S.A., without the activity 
performed in the electricity distribution segment).

The Board of Directors of the Company reviews management reports of each segment. Segment Adjusted 

EBITDA (see definition below) is used to measure performance because management believes that such 

information is one of the most relevant in evaluating the results of the segments.

There are varying levels of integration between the Electricity supply, Electricity distribution and External 

electricity network maintenance segments. This integration includes electricity distribution and shared 

electricity network maintenance services. Inter-segment pricing policy is determined on an arm’s length 

basis. 

All assets are allocated to reportable segments, except for investments in associates and deferred tax 

assets.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (IFRS-EU)FOR THE YEAR ENDED 31 DECEMBER 20232023 ANNUAL REPORTNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (IFRS-EU)2023 ANNUAL REPORTELECTRICA S.AFOR THE YEAR ENDED 31 DECEMBER 2023ELECTRICA S.Al

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (IFRS-EU)FOR THE YEAR ENDED 31 DECEMBER 20232023 ANNUAL REPORTNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (IFRS-EU)2023 ANNUAL REPORTELECTRICA S.AFOR THE YEAR ENDED 31 DECEMBER 2023ELECTRICA S.A 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
576

577

11  Revenue

Electricity distribution and supply, net

Supply of natural gas

Construction revenue related to concession agreements (Note 25)

Repairs, maintenance and other services rendered

Proceeds from sale of green certificates

Re-connection fees

Consulting services

Sales of merchandise

Total

*please see Note 5

2023

8,457,651

191,339

1,018,912

74,077

3,212

14,362

106

56,934

2022 
(restated)*

8,991,986

322,320

611,294

45,937

3,741

3,824

-

30,794

13 

Other income and expenses

(a)  Other income

Subsidies related to electricity supply and natural gas (Note 20)

Rental income

Late payment penalties from customers

Other

Total

*please see Note 5

2023

3,306,839

92,332

71,075

28,307

2022 
(restated)*

2,687,131

92,486

52,110

9,236

3,498,553

2,840,963

9,816,593

10,009,896

Rental income refers mainly to the subsidies, following by rental of the electricity poles by the distribution 

subsidiary to telecom operators.

In respect to the timing of the revenue recognition, most of the Group’s services provided are transferred 

During 2023, the Group recognized subsidies on the supply segment recognized subsidies of RON 3,306,839 

to the customer over time, only a small part amounting to RON 2,921 thousand (2022: RON 2,694 thousand) 

thousand, out of which RON 2,614,535 thousand outstanding receivable from the Ministry of Energy following 

being transferred at a point in time (e.g. metering services provided by the distribution companies, 

providing periodic data analysis to the customer for certain taxes collected on behalf of them).

the application of the electricity and natural gas price capping and compensation mechanism, approved 

by Order no. 118/2021 with subsequent amendments and GEO no. 27/2022, the latter being amended by GEO 

12  Electricity, natural gas and merchandise purchased

Electricity purchased

Green certificates purchased

Cost of merchandise

Natural gas purchased

Total

2023

8,238,811

543,359

221,255

54,551

2022 

9,380,690

609,107

493,847

23,165

9,057,976

10,506,809   

The cost of electricity and natural gas purchased includes the cost of the green certificates purchased 

by the supply subsidiary which has a legal obligation to purchase green certificates from producers of 

electricity from renewable sources, based on annual targets or quotas set by law, which are applied to 

the quantity of electricity purchased and supplied to final customers. The cost of green certificates is then 

invoiced to final customers separately from electricity tariffs.

no. 119/2022.

(b)  Other operating expenses

Utilities

Other taxes and duties 

IT services

Fines and penalties

Printing and distribution of invoices services

Meters reading expenses

Bank fees

Security services

Advertising and publicity expenses

Penalties to State budgets

Cash collection services

Postage and telecommunication services

Call centre services

Rent 

Other

Total

14 

Net finance income/(cost)

2023

63,138

51,549

51,151

48,404

36,341

29,831

26,635

19,795

14,654

14,482

13,148

11,448

12,047

12,461

26,315

2022 

56,643

46,950

34,929

12,948

44,092

39,748

10,836

17,549

7,440

2,135

14,632

21,010

18,998

10,929

14,132

431,399

352,971

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (IFRS-EU)FOR THE YEAR ENDED 31 DECEMBER 20232023 ANNUAL REPORTNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (IFRS-EU)2023 ANNUAL REPORTELECTRICA S.AFOR THE YEAR ENDED 31 DECEMBER 2023ELECTRICA S.A578

579

Interest income 

Other finance income

Total finance income

Interest expense

Interest cost for employee benefits (Note 17)

Foreign exchange losses, net

Total finance costs

Net finance cost

15  Earnings/(loss) per share

2023

3,270

155

3,425

2022 

2,847

6,871

9,718

(280,463)

(156,985)

(10,043)

(6,714)

(297,220)

(293,795)

(7,354)

(10,374)

(174,713)

(164,995)

The calculation of basic and diluted earnings/(loss) per share has been based on the following profit 

attributable to Company’s shareholders and weighted-average number of ordinary shares outstanding:

Profit/(Loss) attributable to shareholders

Profit/(Loss) for the year attributable to the owners of the Company

Profit/(Loss) attributable to shareholders of the Company

*please see Note 5

Number of ordinary shares (in number of shares)

Number of ordinary shares at 31 December

2023

772,217

772,217

2022

(restated)*

(240,354)

(240,354)

2023

2022

339,553,004

339,553,004

For the calculation of basic and diluted earnings per share, treasury shares (6,890,593 shares) were not 

treated as outstanding ordinary shares and were deducted from the number of issued ordinary shares.

Earnings/(Loss) per share

Basic and diluted earnings/(loss) per share (RON)

2023

2022

(restated)

2.27

(0.71)

16  Short-term employee benefits

Personnel payables

Current portion of defined benefit liability and other employee 
benefits

Social security charges 

Tax on salaries 

Total 

31 December  2023

31 December 2022

70,598

12,871

31,192

5,887

70,105

11,548

27,301

5,220

120,548

114,174

For details of the related employee benefit expenses, see Note 18.

In Romania, all employers and employees, as well as other persons, are contributors to the State social 

security system. The social security system covers pensions, child benefit, temporary inability to work 

situations, risks of work accidents and professional diseases and other social assistance services, 

redundancy payments and incentives granted to employers for creating new jobs.

17  Post-employment and other long-term employee benefits

The Group provides cash benefits to employees depending on seniority in the form of jubilee bonuses and 

depending on the years of service at retirement in the form of retirement bonuses. The post-employment 

and other long-term employee benefits are stipulated in the Collective Labour Contracts.

In 2023 and 2022, employee benefit obligations were computed by an independent actuary using the 

projected unit credit method with benefits calculated proportionally to the period of service.

Defined benefit liability

Other long-term employee benefits

Total

    - Current portion*

    - Non-current portion

*included in Personnel payables in Note 16

31 December  2023

31 December 2022

55,839

108,923

164,762

13,404

151,358

41,675

87,762

129,437

12,168

117,269

(i)  Movement in the defined benefit liability and other long-term employee benefits

The following tables shows a reconciliation from the opening balances to the closing balances for the 

defined benefit liability and other long-term employee benefits and its components. There are no plan 

assets.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (IFRS-EU)FOR THE YEAR ENDED 31 DECEMBER 20232023 ANNUAL REPORTNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (IFRS-EU)2023 ANNUAL REPORTELECTRICA S.AFOR THE YEAR ENDED 31 DECEMBER 2023ELECTRICA S.A580

581

Defined benefit liability

Balance at 1 January

Included in profit or loss

Current service cost

Past service cost

Interest cost

2023

41,675

4,904

-

3,278

2022

79,078

4,893

(23,367)

3,100

(b) Group specific assumptions:

•  For the year 2023 were taken into consideration the salaries’ growth rates budgeted by the Group. 

Starting with the year 2024, salaries’ growth is forecasted at the inflation rate;

•  Employees’ turnover: based on historical data;

•  Jubilee and retirement bonuses granted based on seniority as per the collective labour contracts, as 

Included in other comprehensive income

follows:

Remeasurements loss

   - Actuarial loss

Other

Benefits paid

Balance at 31 December 

Other long-term employee benefits

Balance at 1 January

Included in profit or loss

Current service cost

Past service cost

Actuarial (gain)/ loss

Interest cost 

Other

Benefits paid

Balance at 31 December 

11,918

(9,503)

Jubilee bonus based on years of service in the Group

(5,936)

55,839

2023

87,761

7,580

-

16,637

6,764

(9,819)

108,924

(12,526)

41,675

2022

88,356

7,786

(353)

(4,509)

4,256

(7,775)

87,761

Seniority

20 years

30 years

35 years

40 years

45 years

No of gross monthly base salaries

31 December 2023

31 December 2022

1

2

3

4

5

1

2

3

4

5

Retirement bonus based on years of service in the Group

Seniority

Between 8 and 10 years

Between 10 and 25 years

More than 25 years

No of gross monthly base salaries

31 December 2023

31 December 2022

2

3

4

2

3

4

Defined benefits refer to the retirement bonuses granted according to the seniority within the Group and 

other long-term benefits refer to the jubilee bonuses granted for seniority.

Termination benefits

(ii) Actuarial assumptions

(a) Termination benefits for individual lay-offs at the Group’s initiative

The following were the main actuarial assumptions at each reporting date:

(a) Macroeconomic assumptions:

In accordance with the Collective Labour Contracts concluded between the Group and the Unions, when 

individual labour contract are terminated at the Group’s initiative, the Group pays termination benefits to 

the employees depending on their period of service, as follows:

•  inflation. The actuary used information from the National Commission for Strategy and Prognosis:

Year

2023

2024

2025

2026

2027+

Valuation date

31 December 2023

Valuation date

31 December 2022

10.4%

4.8%

3.5%

3%

2.5%

7.5%

4.9%

3%

2.5%

2.5%

•  the discount rate used is based on the yield of the Romanian Government bonds at the reporting date, 

therefore the weighted average discount rate is 6% for the year 2023 (2022: 8.1%);

•  taxes and social charges are those in force as at the reporting date.

Period of service

1 – 2 years

2 – 5 years

5 – 10 years

10 – 20 years

More than 20 years

No of gross monthly base salaries

31 December 2023

31 December 2022

2

3

4

5

8

2

3

4

5

8

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (IFRS-EU)FOR THE YEAR ENDED 31 DECEMBER 20232023 ANNUAL REPORTNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (IFRS-EU)2023 ANNUAL REPORTELECTRICA S.AFOR THE YEAR ENDED 31 DECEMBER 2023ELECTRICA S.A582

583

(b) Termination benefits for collective lay-offs at the Group’s initiative

18 

Employee benefit expenses

For collective lay-offs, according to the Collective Labour Contracts, the Group pays termination benefits to 

the employees depending on their period of service, as follows:

Vechime

1 – 3 years

3 – 5 years

5 – 10 years

10 – 20 years

More than 20 years

No of gross monthly base salaries

31 December 2023

31 December 2022

3

6

7

11

16

3

6

7

11

16

The above mentioned stipulations do not apply to employees with individual labour contract concluded 

for a determined period. The above stipulations do not apply to employees that obtained other higher 

cumulative salary compensation rights, provided by legal regulations regarding the Group’s reorganization 

and restructuring. Employees who are re-employed within the Group after lay-off are not entitled to the 

above-mentioned benefits.

Sensitivity analysis

Significant actuarial assumptions for the determination of the benefit obligation are the discount rate, 

expected salary increase and retirement age. The sensitivity analysis below has been determined based on 

reasonably possible changes of the respective assumptions occurring at the end of the reporting period, 

while holding all other assumptions constant.

Average number of employees

Number of employees at 31 December

Wages and salaries*

Social security contributions

Meal tickets

Termination benefits

Total employees benefits for the year

Capitalised employee benefit expenses

Total employees benefits in the statement of profit or loss

2023

7,676

7,960

2023

911,995 

27,163 

46,583 

1,015 

986,756

(24,691) 

962,065 

2022

7,760

7,874

2022

790,425

20,694

33,187

267

844,573

(21,151)

823,422

*Wages and salaries includes also current service cost, defined benefits and other long-term employee benefits 

Management remuneration is disclosed in Note 33 b) Related parties.

19 

Income taxes

In determining the amount of current and deferred tax, the Group takes into account the impact of 

uncertain tax positions and whether additional taxes and interest may be due. This assessment relies 

on estimates and assumptions and may involve a series of judgments about future events. The Group 

considers that the accounting records for taxes due are adequate for all open tax years, based on 

assessment made by management taking into account various factors, including the interpretation of 

Increase by 1%

Decrease by 1%

tax legislation and previous experience. New information may become available that causes the Group to 

2023

(11,301) 

2022

(9,237)

2023

12,675

2022

8,611

change its judgment regarding the adequacy of existing tax liabilities; such changes to tax liabilities will 

impact tax expense in the period when such a determination is made.

13,195  

9,415

(11,930)

(10,049)

(i)  Amounts recognised in profit or loss

Current tax expense

Deferred tax expense

Total expense/(benefit) related to income tax 

*please see Note 5

2023

78,819

46,995

125,814 

2022
(restated)*

2,576

(49,747)

(47,171) 

Discount rate

Salary growth

Retirement age

Increase by 1 year

Decrease by 1 year

2023

1,135 

2022

812

2023

(1,135)

2022

(812)

The sensitivity analysis presented above may not be representative of the actual change in the benefit 

obligation as it is unlikely that the changes in assumptions would occur in isolation of one another as some 

of the assumptions may be correlated. In presenting the above sensitivity analysis, the present value of the 

benefit obligation has been calculated using the projected unit credit method at the end of the reporting 

period, which is the same as that applied in calculating the benefit obligation liability recognized in the 

statement of financial position.  

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (IFRS-EU)FOR THE YEAR ENDED 31 DECEMBER 20232023 ANNUAL REPORTNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (IFRS-EU)2023 ANNUAL REPORTELECTRICA S.AFOR THE YEAR ENDED 31 DECEMBER 2023ELECTRICA S.A584

585

(ii)  Amounts recognised in other comprehensive income

Before tax

2023

Tax 

expense

Net of tax

Before tax

2022

Tax 

expense

Net of tax

2022

Revaluation of property, plant 
and equipment

Remeasurement of defined 
benefit liability 

Total

85,510

(13,699)

71,811

-

-

-

(11,918) 

1,907 

(10,011) 

9,503

(1,479)

73,592 

(11,792) 

61,800 

9,503

(1,479)

8,024

8,024

(iii)  Reconciliation of effective tax rate

2023

2022 (restated)*

Profit before tax 

897,917

(287,634)

Tax using Company’s domestic tax rate

16%

143,667

2%

-3%

0%

-1%

0%

17,338

(25,426)

(3,165)

(5,622)

(978)

16%

-10%

8%

1%

0%

2%

(46,021)

28,845

(22,083)

(3,388)

(137)

(4,387)

Non-deductible expenses

Non-taxable income

Deduction of legal reserves

Other tax effects

Recognition of tax effect of previously unrecognised 
tax losses

Income tax expense/(benefit)

*please see Note 5

(iv)  Movement in deferred tax balances

Net 

balance at 

1 January 

2022

39,838

Recognised 

in profit or 

loss 

(2,858)

Property, plant and 
equipment

Intangible assets related to 
concession agreements

187,500

20,515  

Balance at  31 December 2022 (restated)*

Net

Deferred tax 

Deferred tax 

assets

liabilities

Recognised 

in other 

comprehensive 

income

-

-

36,980

208,015 

-

-

36,980

208,015 

Employee benefits

Impairment of trade 
receivables

Tax loss carried forward

Other items

Tax liabilities/(assets) 
before set-off

Set off of tax

Net tax liabilities/(assets) 

*please see Note 5

(23,940)

1,360

1,479

(21,101)

(21,101)

(24,732)

(6,198)

(95,972)

89,904

(4,299)

(152,471)

-

-

-

(30,930)

(30,930)

(6,068)

(6,068)

(156,770)

(156,770)

-

-

-

-

78,395

(49,747)  

1,479

30,126   

(214,869)

244,996  

-

-

-

-

184,689

(184,689)

78,395

(49,747)

1,479

30,126

(30,180)

60,306 

(v)  Unrecognised deferred tax assets

Deferred tax assets have not been recognised in respect of the certain tax losses generated by the 

Company, because it is not probable that future taxable profit will be available against which the entity 

14%

125,814

16%

(47,171) 

generating it can use the benefits therefrom.

Balance at 31 December 2023

Tax losses

2023

balance at 

in profit or 

in other 

1 January 

loss 

comprehensive 

Net

Deferred tax 

Deferred tax 

assets

liabilities

Net 

Recognised 

Recognised 

20  Trade receivables 

Property, plant and 
equipment

Intangible assets related to 
concession agreements

Employee benefits

Impairment of trade 
receivables

Tax loss carried forward

Other items

Tax liabilities/(assets) 
before set-off

Set off of tax

Net tax liabilities/(assets) 

2023

36,980

income

8,837

13,699

59,516

208,015 

21,679 

-

229,694

-

-

59,516

229,694

(21,101)

(4,236)

(1,907)

(27,244)

(27,244)

(30,930)

5,370

(6,068)

(156,770)

1,712

13,633

-

-

-

(25,560)

(25,560)

(4,356)

(4,356)

(143,136)

(143,136)

-

-

-

-

30,126 

46,995

11,792

88,914

(200,296)

289,210

-

-

-

-

167,892

(167,892)

30,126

46,995

11,792

88,914

(32,404)

121,318

Trade receivables, gross

Bad debt allowance 

Total trade receivables, net

Trade receivables from related parties are presented in Note 33.

2023

318,176

2022

337,136

31 December 2023

31 December 2022

3,180,660

(640,218)

2,540,442

3,118,691

(652,689)

2,466,002

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (IFRS-EU)FOR THE YEAR ENDED 31 DECEMBER 20232023 ANNUAL REPORTNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (IFRS-EU)2023 ANNUAL REPORTELECTRICA S.AFOR THE YEAR ENDED 31 DECEMBER 2023ELECTRICA S.A 
 
 
 
 
 
586

587

Trade receivables, gross, comprise:

Electricity distribution and supply 

Late payment penalties receivable

Customers with judicial execution titles 

Repairs, maintenance and other services 

Other

Total trade receivables, gross

31 December 2023

31 December 2022

2,603,238

2,482,266

89,346

333,682

20,904

133,490

80,658

347,667

11,850

196,250

Loss allowances are determined according to IFRS 9 “Financial instruments” based on “expected credit 

loss” model. In applying IFRS 9, the Group has identified 5 clusters of customers based on shared risk 

characteristics: 3 separate clusters for the distribution subsidiaries and 2 clusters (households and non-

households) for the supply subsidiary.

A significant part of the bad debt allowances refers to clients in litigation, insolvency or bankruptcy 

procedures, many of them being older than five years. The Group will derecognize these receivables 

together with the related allowances after the finalization of the bankruptcy process. These receivables were 

treated separately in computing the allowance according to IFRS 9. The amounts written-off in 2022 relates 

3,180,660

3,118,691

to Oltchim (please see Note 19 from prior year financial statements).

Following the adoption of the Order no. 118/2021 with subsequent amendments and GEO no. 27/2022, the 

latter one being amended by GEO no. 119/2022, concerning the capping and compensation mechanism, 

In applying IFRS 9 as of 31 December 2023, The Group has considered all the information available without 

undue costs (including forward looking information) that may affect the credit risk of its receivables since 

part of the receivables due to the subsidiary Electrica Furnizare S.A. for the sale of electricity and gas to final 

original recognition, thus recording a bad debt allowance in amount of RON 111,271 thousand.

consumers will be recovered from the Romanian State through National Agency for Payments (domestic 

consumers) and Social Inspection and Ministry of Energy (non-household consumers). 

Electricity distribution and supply

On 31 December 2023, the amounts estimated to be received from the Ministry of Energy for non-household 
consumers are 10,130 thousand RON (31 December 2022: 20,480 thousand RON) and from the National 
Agency for Payments and Social Inspection for household consumers are 36,496 thousand RON (31 
December 2022: 21,043 thousand RON). The receivables are booked under the caption “Electricity distribution 
and supply”.

Grants to be received

As at 31 December 2023, the estimated amount for subsidies to be received from the Ministry of Energy 
is RON 2,595,554 thousand (31 December 2022: RON 1,280,788 thousand) and from County Agency for 
Payments and Social Inspection is RON 18,981 thousand. From the total amount of subsidies to be received, 
RON 1,528,679 thousand represent uncollected claims submitted to the state authorities and RON 1,085,856 
thousand claims not yet submitted to the state authorities as at 31 December 2023.

According to the legal provisions and regulations adopted regarding the recovery of these subsidies, 
the amounts should be recovered within 40 days after submission of the required documentation to the 
National Agency for Payments and Social Inspection or the Ministry of Energy, as the case may be.

The amounts should be recovered within 40 days of submission of the required documentation to the 
National Agency for Payments and Social Inspection or the Ministry of Energy, as appropriate. Claims are 
recorded under the line „Electricity distribution and supply”.

The reconciliation between the opening balances and the closing balances of the impairment for trade 

receivables in the form of lifetime expected credit losses is as follows:

Lifetime expected credit losses

Balance as at 1 January

Loss allowance recognized 

Decrease in loss allowance

Amounts written off

Balance as at 31 December

The aging of trade receivables is presented in Note 32.

2023

652,689

111,271

(35,198)

(88,544)

640,218

2022

980,858

146,203

(34,248)

(440,124)

652,689

21  Other receivables

VAT receivable

Receivables from EU funds

Other receivables

Lifetime expected credit losses

Total other receivables, net

31 December 2023

31 December 2022

12,762

45,194

56,103

(20,227)

93,832

13,024

13,932

120,777

(20,480)

127,253

Other receivables include mainly guarantees from energy suppliers and receivables to be recovered from 

state authorities in respect to medical leave indemnities. 

The reconciliation between the opening balances and the closing balances of the impairment for other 

receivables is as follows:

Loss allowance

2023

2022

Balance as at 1 January

Decrease in loss allowance

Balance as at 31 December

20,480

(253)

20,227

20,124  

356

20,480

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (IFRS-EU)FOR THE YEAR ENDED 31 DECEMBER 20232023 ANNUAL REPORTNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (IFRS-EU)2023 ANNUAL REPORTELECTRICA S.AFOR THE YEAR ENDED 31 DECEMBER 2023ELECTRICA S.A 
588

589

22 

Cash and cash equivalents  

24  Property, plant and equipment

Bank current accounts

Call deposits

Cash in hand

31 December  2023

31 December 2022

The movements in property, plant and equipment in 2023 and 2022 are as follows:

223,213

153,997

5

141,656

193,219

12

Land and land 

improvements

Buildings 

Equipment

furniture 

Construction 

and office 

in progress

 Total 

equipment

Vehicles, 

Total cash and cash equivalents in the consolidated statement of 
financial position

377,215

334,887

In the context of the consolidated statement of cash flows, non-cash activity includes the netting of trade 

receivables and trade payables in the amount of RON 160,104 thousand in 2023 (31 December 2022: RON 

53,106 thousand).

23  Inventories

As at 31 December 2023 and 31 December 2022, inventories are as follows:

Spare parts

Consumables and other materials

Natural gas

Other inventories

Allowance for impairment of inventories

Total inventories

31 December  2023

31 December  2022

35,057

50,060

25,536

13,693

(8,686)

29,589

53,527

23,319

17,004

(9,467)

115,660

113,972

Inventories include mainly spare parts, consumables and the natural gas storage (applicable only for the 

supply subsidiary) that was set up according to ANRE’s regulations. Spare parts refer mainly to items such 

as cables, conductors, sockets, switches which are used for the distribution network.

 As at 31 December 2023, the remaining quantity of natural gas stored is of MWh 143,870 (31 December 2022: 

MWh 107,427), amounting to RON 25,536 thousand (31 December 2022: RON 23,319 thousand).

Gross carrying amount

Balance at 31 December 2021

Reclassification of assets held for sale

Balance at 1 January 2022

Additions

Transfer from construction in progress

Disposals

Acquisition of subsidiary 

Balance at 31 December 2022

Additions

Transfer from construction in progress

Disposals

Effect of revaluation recognised in 
other comprehensive income

Effect of revaluation recognised in 
profit or loss

Decrease in gross value through 
reversal of accumulated depreciation

Balance at 31 December 2023

Accumulated depreciation and 
impairment losses

Balance at 1 January 2022

Depreciation

Accumulated depreciation of 
disposals

Impairment loss

Balance at 31 December 2022

Depreciation

Accumulated depreciation of 
disposals

Cancellation of accumulated 
depreciation 

Balance at 31 December 2023

Net carrying amounts

At 1 January 2022

At 31 December 2022

At 31 December 2023

252,798

202,557

91,801

96,950

29,188

673,297

1,024

4,115

-

-

-

5,139

253,822

206,672

91,801

96,950

29,188

678,433

1,179

-

85

1,133

1,977

2,386

804

269

5,475

9,435

(3,778)

95

(3,276)

(1,093)

(1,844)

(838)

(9)

(7,060)

 25

-

-

-

3,875

3,900

251,835

206,712

94,320

97,185

34,751

684,803

763 

-

(576) 

936

124

-

46,999

38,511

2,462

(381)

-

(23,907)

239

1,862 

371

110

21,872 

24,181 

-

2,096 

(5,236) 

(1,308) 

(1,271) 

(8,391) 

-

-

-

-

-

-

-

-

-

85,510

2,081

(23,907)

301,483 

221,995 

91,185 

96,358 

55,352 

766,373 

-

-

-

-

-

-

-

-

-

13,478

44,588

91,175

18,634

167,875

8,022

7,378

(1,778)

(5)

-

4,515

(594)

-

-

-

-

19,915

(2,372)

(5)

21,495

50,188

95,096

18,634

185,413

7,450 

6,499 

2,442 

-

(5,375) 

(1,635) 

(23,416)

-

-

-

-

-

16,391 

(7,010) 

(23,416)

5,529 

51,312 

95,903 

18,634 

171,378 

252,798

189,079

251,835

185,217

47,213

44,132

301,483 

216,466 

39,873 

5,775

2,089

455

10,554

505,419

16,117

499,390

36,718 

594,994 

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (IFRS-EU)FOR THE YEAR ENDED 31 DECEMBER 20232023 ANNUAL REPORTNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (IFRS-EU)2023 ANNUAL REPORTELECTRICA S.AFOR THE YEAR ENDED 31 DECEMBER 2023ELECTRICA S.A590

591

Tangible assets include mainly land, buildings and equipment.

The following table shows the valuation techniques used in measuring fair values (Level 3), as well as the 

As at 31 December 2023, the Group carried out a revaluation to fair value of property, plant and equipment 

consisting of land, land improvements and buildings. The revaluation was carried out by an independent 

chartered valuer Darian DRS S.A.

As a result of the revaluation, the gain recorded in the Consolidated Statement of Comprehensive Income 

was RON 85,510 thousand and the gain recorded in the Consolidated Statement of Profit or Loss was RON 

2,081 thousand.

Measurement of fair value

The Group’s land, land improvements and buildings are stated at their revalued amounts, being the 

fair value at the date of revaluation, less any subsequent accumulated depreciation and subsequent 

accumulated impairment losses. The fair value measurements of the Group’s land, land improvements and 

buildings as at 31 December 2023 were performed by Darian DRS S.A., an independent valuer not related to 

the Group. Darian DRS S.A. is member of the National Association of Authorised Romanian Valuers and has 

appropriate qualifications and recent experience in the fair value measurement of properties in the relevant 

locations. The valuation conforms to International Valuation Standards and was based on recent market 

transactions on arm’s length terms for similar properties, whenever possible and discounted cash-flows 

method.

There were no significant changes to the valuation technique in the period between the current revaluation 

performed on 31 December 2023 and the previous one performed on 31 December 2020.

significant unobservable inputs used. 

Category

Valuation technique

Land and land 
improvements

Market approach

The fair value is estimated based on 
selling price per square meter of land of 
similar characteristics (i.e. ownership, legal 
limitations, financing and selling conditions, 
location, physical and economical properties 
and best use). The market price is mainly 
based on recent transactions.

Buildings

Buildings were evaluated using the following 
methods, depending on the best use and 
the availability and credibility of available 
market information:

Inter-relationship 

Significant unobservable 

between key 

inputs

unobservable inputs and 

fair value measurement

•  Adjustment for liquidity, 

location, size.

The estimated fair value 
would increase/(decrease) 
if:

•  Adjustment for liquidity, 

location or size would be 
lower/(higher) 

The income approach

The income approach is based on the 
determination of the reproducible annual 
flow, derived from the rental of the property 
and a determination of the capitalization 
rate and implicitly the multiplier factor.

Market approach

The market approach is based on the selling 
price per square meter for buildings with 
similar characteristics (i.e. ownership, legal 
limitations, financing and selling conditions, 
location, physical and economical 
properties, and best use), adjusted for 
liquidity, location, size etc.

The cost approach
It was applied for fixed assets where it was 
not possible to apply the market or income 
approach, as is the case with rural housing. 
The cost approach assumes that the 
maximum value of a good for an informed 
buyer is the amount needed to buy or build 
a new good with equivalent utility. When the 
good is not new, all the forms of depreciation 
that can be attributed to the good must be 
deducted (deducted) from the current new 
cost, until the evaluation date.

•  Adjustment for liquidity, 

location, size.

The estimated fair value 
would increase/(decrease) 
if:

•  Adjustment for liquidity, 

location or size would be 
lower/(higher)

Office space rent

•  Occupancy rates 

(between 85% and 90%)

•  Capitalisation rates 

(between 7% and 8%)

•  Annual rent per sqm 

(between 15 and 20 EUR/
sqm), depending on 
location;

Commercial space rent

•  Occupancy rates 

(between 80% and 90%)

•  Capitalisation rates 

(between 7% and 8%)

•  Annual rent per sqm 

(between 10 and 60 EUR/
sqm), depending on 
location;

•  Occupancy rates were 

higher/(lower) 

•  Yield rates were lower/

(higher)

•  Annual rent per sqm was 

higher/(lower)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (IFRS-EU)FOR THE YEAR ENDED 31 DECEMBER 20232023 ANNUAL REPORTNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (IFRS-EU)2023 ANNUAL REPORTELECTRICA S.AFOR THE YEAR ENDED 31 DECEMBER 2023ELECTRICA S.A592

593

25 

Intangible assets 

Intangible assets include mainly intangible assets related to distribution service concession agreements 

recorded in accordance with IFRIC 12 “Service Concession Arrangements”, as well as licenses and costs of 

SAP ERP implementation, customer management and billing system and other software, as follows: 

Gross book value

Balance at 1 January 2022

Additions

Transfers from intangible assets in progress

Disposals

Balance at 31 December 2022

Additions

Transfers from tangible assets in progress

Disposals

Balance at 31 December 2023

Accumulated amortization and impairment 
losses 

Balance at 1 January 2022

Amortization

Accumulated amortization of disposals

Balance at 31 December 2022

Amortization

Accumulated amortization of disposals

Balance at 31 December 2023

Net carrying amounts

At 1 January 2022

At 31 December 2022

At 31 December 2023

Intangible 

assets related 

Software and 

to concession 

licenses

agreements

Intangible 

assets in 

progress

 Total 

10,132,347

193,401

1,909

10,327,657

611,294

-

-

7,694

2

(1,006)

140

(2)

-

619,128

-

(1,006)

10,743,641

200,091

2,047

10,945,779

1,018,912 

20,759 

-

-

680

(11,106) 

994

(680)

1,040,665 

-

-

(11,106) 

11,762,553 

210,424 

2,361 

11,975,338 

4,617,790

186,327

449,987

-

3,960

(1,005)

5,067,777

189,282

474,246 

6,171

-

(10,490) 

5,542,023 

184,963 

-

-

-

-

-

-

-

4,804,117

453,948

(1,005)

5,257,060

480,416 

(10,490) 

5,726,986 

5,514,557

5,675,864

6,220,530 

7,074

10,809

25,461 

1,909

2,047

5,523,540

5,688,719

2,361 

6,248,352 

The Group applies IFRIC 12 for the accounting of the transactions under these concession contracts (see 

further details in Notes 4, 8(d) and 8(l)).

For the year ended 31 December 2023, the Group has recognized construction revenue related to the 

concession agreements of RON 1,018,912 thousand (2022: RON 611,294 thousand).

The main information related to the current concession contracts agreements and the intangible assets 

amounts recognized for each network distribution area is summarized below:

Network distribution 

Contract 

areas

date

Concession 

period 

(years)

Concession 

Net 

Net 

carrying 

carrying 

Contract 

period 

Renewal 

amount 

amount 

expiry date

remaining 

option

at 31 

at 31 

(years)

December 

December 

Muntenia Nord area

Transilvania Nord area

Transilvania Sud area

2005

2005

2005

49

49

49

2054

2054

2054

33

33

33

Yes

Yes

Yes

Total

2023

2022

2,197,712 

1,968,811

2,007,855 

1,890,409

2,014,963 

1,816,644

6,220,530

5,675,864

The concession contracts can be prolonged for a period up to half of the initial established period of 49 

years.

The investments in relation to the development and modernization of the infrastructure incurred in 2023 

refers mainly to:

•  Modernization of the current transformer points and stations, current underground and overhead power 

lines in amount of RON 484,220 thousand (2022: RON 139,487 thousand);

•  Investments related to improvements for electricity distribution network in amount of RON 81,660 

thousand (2022: RON 79,132 thousand).

•  Significant construction works of new transformer stations, new underground and overhead power lines 

in amount of 2023: RON 144,980 thousand (2022: RON 148,404 thousand);

•  Acquisition of own car fleet, including utilities vehicles and specialized vehicles in amount of RON 0 

thousand; (2022: RON 58,256 thousand);

•  Modernization and inclusion in SCADA (which is an automatic control system which monitors the 

equipment) of transformers points and stations, in amount of RON 24,880 thousand (2022: RON 164 

thousand).

26 

Investments in associates

On 28 July 2021 and on 7 December 2021, Electrica SA concluded four agreements for the sale-purchase 

of shares in four project companies having as main activity the production of electricity from renewable 

sources. The sale-purchase agreements concluded, mention the fact that in the first stage the Group 

acquires 30% of the share capital of the four companies, remaining that in the following stages, to acquire 

the remaining 70% of the share capital after the conditions provided in the sale-purchase agreements will 

be fulfilled. By the end of 31 December 2023, three of the project companies were acquired by at least 60% 

(please see Note 1), therefore they are accounted as subsidiaries, the other one is as follows:

•  Crucea Power Park SRL, develops the wind project „Crucea Est”, with a projected installed capacity of 

121 MW and a projected electricity storage capacity of 60 MWh (15 MW x 4h), located outside the Crucea 

area, Constanta County. The estimated purchase price for the „Crucea Est” wind project is 70 thousand 

EUR/MW for the aforementioned capacity, totalling the amount of 8,470 thousand EUR. On 28 July 2021, 

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (IFRS-EU)FOR THE YEAR ENDED 31 DECEMBER 20232023 ANNUAL REPORTNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (IFRS-EU)2023 ANNUAL REPORTELECTRICA S.AFOR THE YEAR ENDED 31 DECEMBER 2023ELECTRICA S.A594

595

Electrica SA paid the amount of EUR 2,541 thousand representing 30% of the project value, respectively 

The share loss in amount of RON 39 thousand for the period was recognized in the consolidated statement 

30% of the shares of Crucea Power Park SRL. On 15 May 2023, Electrica acquired a further 10% of the 

of profit and loss for the year ended as at 31 December 2023.

shares and voting interests in Crucea Power Park S.R.L. As a result, the Group’s shareholding increased 

from 30% to 40%.

Considering the holding percentage of 40%, as at 31 December 2023, the entity is accounted for using the 

equity method in these consolidated financial statements as provided in the Group›s accounting policies in 

Note 8. 

The cost of the investments at acquisition date, totalling the amount of RON 12,500 thousand, is detailed as 

follows: 

Acquisition date

Percentage ownership and voting rights at acquisition date

Net assets at acquisition date

Group’s share of net assets 

Goodwill

Cost of investment at acquisition datei

 Crucea Power Park S.R.L.

31.07.2021

30%

(242)

(73)

12,573

12,500 

Summarised financial information in respect  of the Group’s associate is set out below:

 Crucea Power Park S.R.L. 

Non-current assets

Current assets

Non-current liabilities

Current liabilities

Net assets

Reconciliation to carrying amounts:

Opening net assets at acquisition date

Additions net assets/liabilities

Loss for the period

Closing net assets 31.12.2023

31.12.2023

9,199

1,187

(10,376)

(45)

(36)

(246)

293

(83)

(36)

27  Capital and reserves

(a)  Share capital and share premium

The issued share capital in nominal terms consists of 346,443,597 ordinary shares as at 31 December 2023 

(31 December 2022: 346,443,597) with a nominal value of RON 10 per share. As of 4 July 2014, after the Initial 

Public Offering (“IPO”), the Company’s shares are listed on the Bucharest Stock Exchange and the Global 

Depositary Receipts are listed on the London Stock Exchange. 

The shares owned by the Company’s shareholders that are traded on the London Stock Exchange are the 

global depositary receipts (GDRs). A global depositary receipt represents four shares. The Bank of New 

York Mellon is the depositary bank for these securities. The GDRs’ weight in Electrica’s total share capital 

diminished following the Initial Public Offering, reaching a level of 0.7842% at the end of 2021 as compared to 

10.17% at 4 July 2014.

The holders of ordinary shares are entitled to receive dividends as declared and are entitled to one vote per 

share in the shareholders’ meetings of the Company, except for the 6,890,593 treasury shares purchased by 

the Company in July 2014 in order to stabilize the price. All shares rank equally and confer equal rights to the 

net assets of the Company’s, except for treasury shares.

The Company recognizes changes in share capital only after their approval in the General Shareholders 

Meeting and their registration by the Trade Register. The contributions made by the shareholders which are 

not yet registered with the Trade Register at year end are recognized as pre-paid capital contributions from 

shareholders.

The share premium resulted at IPO was RON 171,128 thousand. The transaction costs of RON 68,079 thousand 

were deducted from the share premium.

Following the SPO that took place in November 2019, the share capital of Electrica SA was increased by in 

kind and in cash contribution, with the amount of RON 5,037 thousand, from the amount of RON 3,459,399 

thousand to the amount of RON 3,464,436 thousand, by issuing a number of 503,668 new nominative and 

dematerialized shares with a nominal value of 10 RON/share.

The costs generated by the secondary public offering were in amount of RON 964 thousand. Also, the 

Company recorded gains referring to share issue of RON 2,186 thousand, resulting from the difference 

between the contribution value of the plots of land and their value recorded as pre-paid capital 

Reconciliation of the financial information summarized above with the net accounting value of the 

participation in the associated entity recognized in the consolidated financial statements:

contributions in kind from shareholders. 

(b)  Treasury shares reserve

Crucea Power Park S.R.L.

In July 2014, the Company purchased 5,206,593 ordinary shares and 421,000 Global Depositary Receipts, 

Closing net assets of associates 31.12.2023

Group’s share in associates %

Group’s share of net assets as at 31.12.2023

Goodwill

Carrying amount of interest in associate 31.12.2023

(36)

40%

(14)

16,652

16,638

equivalent to 1,684,000 shares (totalling 6,890,593 shares). The total amount paid for acquiring the shares 

and Global Depositary Receipts was RON 75,372 thousand.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (IFRS-EU)FOR THE YEAR ENDED 31 DECEMBER 20232023 ANNUAL REPORTNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (IFRS-EU)2023 ANNUAL REPORTELECTRICA S.AFOR THE YEAR ENDED 31 DECEMBER 2023ELECTRICA S.A596

597

(c)  Revaluation reserve

shares (6,890,593 shares) were not considered as outstanding shares and are deducted from the total 

The reconciliation between opening and closing balance of revaluation reserve is as follows:

number of issued ordinary shares.

2023

2022

Out of the dividends declared by the Company of RON 39,999 thousand (2022: RON 152,799 thousand), 

the dividends paid were RON 39,894 thousand (2022: RON 152,447 thousand) the remaining difference 

represents dividends uncollected by the shareholders.

Balance at 1 January

Revaluation reserve for tangible fixed assets

Deferred tax relating to the revaluation reserve

Release of revaluation reserve to retained earnings corresponding to 
depreciation and disposals of property, plant and equipment

Balance as at 31 December

92,117

85,510

(13,699)

(4,392)

159,536

102,829

-

-

(10,712)

92,117

As at 31 December 2023, the Group has revalued its land, land improvements and buildings to fair value. The 

previous revaluation was carried out on 31 December 2020 (see note 24). 

28  Trade payables 

Electricity suppliers

Capital expenditure suppliers

Other suppliers

Total 

 31 December 2023

 31 December 2022

1,005,761

453,014

212,703

1,671,478

970,815

243,715

192,567

1,407,097

(d)  Legal reserves

participants to the electricity market. 

Electricity suppliers are mainly state-owned electricity producers, as detailed in Note 34, but also other 

Legal reserves are set up as 5% of the gross profit for the year in the statutory individual financial 

Other suppliers include suppliers of services, materials, consumables, etc.

statements of the companies within the Group, until the total legal reserves reach 20% of the paid-up 

nominal share capital of each company, according to the legislation. These reserves are deductible for 

income tax purposes and are not distributable.

29  Other payables 

Balance at 1 January 2022

Set-up of legal reserves

Balance at 31 December 2022

Set-up of legal reserves

Balance at 31 December 2023

(e)  Dividends

Legal reserves

408,405

21,178

429,583

19,780

449,363

VAT payable

Liabilities towards the State

Other liabilities

Total 

 31 December 2023

31 December 2022

 Current

Non-current

Current

Non-current

588,814

33,372

412,898

1,035,084

-

-

37,161

37,161

565,075

11,733

290,728

867,536

-

-

72,432

72,432

Other liabilities include mainly guarantees, sundry creditors, connection fees, habitat tax and cogeneration 

contribution. Other non-current liabilities refer to guarantees from customers related to electricity supply.

Romanian companies may distribute dividends from statutory profits, according to the separate financial 

statements prepared in accordance with Romanian accounting regulations.

30  Provisions

The dividends declared by the Company in 2023 and 2022 (from the statutory profits of previous years) are 

as follows:

To the owners of the Company

Total

Distribution of dividends

2023

39,999

39,999

2022

152,798

152,798

Balance at 1 January 2023

Provisions recognized

Provisions utilised

Provisions reversed 

Balance at 31 December 2023

Tax related

1,084

-

-

-

1,084

Other

52,617

7,924

(229)

(20,229)

40,083

Total

53,701

7,924

(229)

(20,229)

41,167

On 27 April 2023 the General Shareholders Meeting of the Company approved dividend distribution of RON 

As at 31 December 2023, provisions refer mainly to benefits upon the termination of executive directors’ 

39,999 thousand (2022: RON 152,798 thousand). The dividend per share distributed is RON 0.1178 per share 

mandate contracts in the form of a non-compete clause amounting to RON 710 thousand (31 December 

(2022: RON 0.45 per share). When calculating the dividend per share, the Company’s repurchased own 

2022: RON 1,839 thousand) and for various claims and litigations involving the Group companies in amount 

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (IFRS-EU)FOR THE YEAR ENDED 31 DECEMBER 20232023 ANNUAL REPORTNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (IFRS-EU)2023 ANNUAL REPORTELECTRICA S.AFOR THE YEAR ENDED 31 DECEMBER 2023ELECTRICA S.A598

599

of RON 40,457 thousand (31 December 2022: RON 51,862 thousand) of which the most significant was for the 

As at 31 December 2023, respectively 31 December 2022, the bank borrowings is as follows:

distribution segment amounting to RON 24,345 thousand for a dispute with ANCOM.

For the supply segment, starting with July 2022, from the amendment of the Performance Standard 82/2021, 

the compensations are calculated daily or weekly and paid to the customers. Thus, for the provision 

recognised until 31 December 2022, amounting to RON 11,020 thousand, a reversal of RON 8,770 thousand 

was recorded during 2023 and an additional provision of RON 1,482 thousand was set up for the period 

January-December 2023.

31  Bank borrowings and overdrafts

Drawings and repayments of borrowings during the year ended 31 December 2023 were as follows:

Currency

Interest rate

Maturity year

Amount (RON 

thousand)

Balance at 1 January 2023

Drawings of borrowings during the 
period, out of which:

EBRD

Exim Bank Romania

Vista Bank

CEC Bank

ERSTE Group Bank and Raiffeisen Bank

Total drawings

Accumulated interest

Payment of interest out of which paid 
in 2022

Reimbursements, out of which:

BRD

BRD

BRD

Banca Transilvania

Unicredit Bank

BCR

EBRD

Exim Bank Romania

Balance at 31 December 2023

RON

RON

RON

RON

RON

RON

RON

RON

RON

RON

RON

RON

RON

Floating rate (2.1% + interbank rate + 
ROBOR spread) 

ROBOR 3M+1.65%

ROBOR 3M+2.95%

ROBOR 3M+2.85%

ROBOR 3M +1.16%

3.99%

3.85%

3.85%

4.59%

3.85%

ROBOR 3M+1%

Floating rate (1.15% + interbank rate 
+ ROBOR spread) 

ROBOR 3M+1.65%

760,713

180,000

245,890

25,000

200,000

91,768

742,658

11,125

(9,124)

187,730

20,800

14,286

11,425

17,857

9,600

18,950

11,478

83,334

1,317,642

2028

2024

2024

2026

2024

2026

2028

2028

2027

2028

2028

2031

2024

Lender

Borrower

Balance at  

Balance at  

31 December 2023

31 December 2022

Banca Transilvania

UniCredit Bank

BRD

BRD

BRD

BCR

EBRD

EBRD

Distributie Energie Electrica Romania
(formerly SDEE Transilvania Sud S.A.)

Distributie Energie Electrica Romania 
(formerly SDEE Transilvania Nord S.A.)

Distributie Energie Electrica Romania 
(formerly SDEE Muntenia Nord S.A.)

Distributie Energie Electrica Romania 
(formerly SDEE Transilvania Nord S.A.)

Distributie Energie Electrica Romania 
(formerly SDEE Transilvania Sud S.A.)

Distributie Energie Electrica Romania 
(formerly SDEE Muntenia Nord S.A.)

Distributie Energie Electrica Romania

Distributie Energie Electrica Romania

CEC Bank

Electrica Furnizare S.A.

Exim Bank Romania

Distributie Energie Electrica Romania

Vista Bank

Societatea Energetica Electrica S.A.

ERSTE Group Bank and 
Raiffeisen Bank

Total

Societatea Energetica Electrica S.A.

Less: current portion of the long-term bank borrowings

Less: accumulated interest

Total long-term borrowings, net of current portion

Bank Borrowings description:

a)  Investment loan granted by Banca Transilvania

62,508

29,103

62,400

64,286

51,467

90,542

189,971

182,773

200,000

167,825

125,000

91,768

1,317,642

(512,169) 

(11,125) 

794,348

80,367

38,793

83,200

78,571

62,904

109,785

202,983

-

-

4,110

100,000

-

760,713

(104,400)

(9,120)

647,193

On 18 July 2019, Societatea de Distributie a Energiei Electrice Transilvania Sud S.A., currently Distributie 

Energie Electrica Romania S.A., as a borrower, concluded with Banca Transilvania an investment credit 

agreement with the purpose of financing investments in the electricity distribution network, according to 

the investment plan. Main provisions are: Maximum loan amount: RON 125,000 thousand; Interest rate: fixed, 

4.59% per annum; Reimbursements: quarterly instalments until 30.06.2027; Grace period: 12 months. As 

at 31 December 2023, the outstanding balance is of RON 62,508 thousand, of which RON 62,500 thousand 

principal and RON 8 thousand accrued interest. (Outstanding balance as at 31 December 2022: RON  80,367 

thousand).

b)  Investment loan granted by Unicredit Bank

On 13 November 2019, Societatea de Distributie a Energiei Electrice Transilvania Nord S.A., currently 

Distributie Energie Electrica Romania S.A., as borrower, concluded with Unicredit Bank an investment credit 

agreement with the purpose of financing investments in the electricity distribution network, according to 

the investment plan. Main provisions are: Maximum loan amount: RON 60,000 thousand; Interest rate: fixed, 

3.85% per annum; Reimbursements: quarterly instalments until 13.11.2026; Grace period: 12 months. As at 31 

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (IFRS-EU)FOR THE YEAR ENDED 31 DECEMBER 20232023 ANNUAL REPORTNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (IFRS-EU)2023 ANNUAL REPORTELECTRICA S.AFOR THE YEAR ENDED 31 DECEMBER 2023ELECTRICA S.A 
600

601

December 2023, the outstanding balance is of RON 

financing investments in the electricity distribution 

The loan agreement is guaranteed by Electrica SA. 

On 31 December 2023, the outstanding balance is 

29,103 thousand, of which RON 28,800 thousand 

network, according to the approved investment 

(Outstanding balance as at 31 December 2022: RON 

RON 167,825 thousand. The loan benefits from a 

principal and RON 303 thousand accrued interest. 

plan for 2020. Main provisions are: Maximum loan 

202,983 thousand. 

(Outstanding balance as at 31 December 2022: RON 

amount: RON 80,000 thousand; Interest rate: fixed, 

38,793 thousand).

c)  Investment loan granted by BRD – Groupe 

Societe Generale

IOn 29 October 2019, Societatea de Distributie a 

Energiei Electrice Muntenia Nord S.A., currently 

Distributie Energie Electrica Romania S.A., as 

borrower, concluded with BRD – Groupe Societe 

Generale an investment credit agreement with the 

purpose of financing investments in the electricity 

3.85% per annum; Reimbursements: quarterly 

instalments until 2028; Grace period: 12 months. As 

at 31 December 2023, the outstanding balance is 

RON 51,467 thousand, of which RON 51,429 thousand 

principal and RON 39 thousand accrued interest. 

(Outstanding balance as at 31 December 2022: RON 

62,904 thousand).

f) 

Investment loan granted by Banca Comerciala 

Romana (“BCR”)

h)  Investment loan granted by the European 

Investment Bank (“EIB”)

On 14 July 2021, Societatea de Distributie Energie 

Electrica Romania SA, as a borrower, concluded with 

the European Investment Bank an investment credit 

contract, representing the first part of the Approved 

Credit in the amount of EUR 210,000 thousand for the 

guarantee in the name and account of the state 

and is guaranteed by Electrica SA. (Outstanding 

balance as at 31 December 2022: RON 4,110 

thousand). The loan is guaranteed in the name and 

on behalf of the State and is guaranteed by Electrica 

SA.

k)  Line of Credit for working capital and for issuing 

Bank Guarantee Letters granted by Vista Bank

purpose of financing investments in the electricity 

On 30 December 2022, Societatea Energetica 

distribution network according to the 2021-2023 

Electrica S.A., as the borrower, concluded a contract 

investment plan. The main provisions are: Maximum 

for a line of credit for working capital and for the 

distribution network, according to the investment 

On 17 September 2020, Societatea de Distributie 

value of the loan: EUR 120,000 thousand; Interest 

issuance of Bank Guarantee Letters granted by Vista 

plan. Main provisions are: Maximum loan amount: 

a Energiei Electrica Muntenia Nord S.A., currently 

rate and Repayments will be agreed individually 

Bank for a period of 18 months. The main provisions 

RON 130,000 thousand; Interest rate: fixed, 3.99% 

Distributie Energie Electrica Romania S.A., as 

for each tranche drawn. On 31 December 2023, 

are: Maximum credit amount: 100,000 thousand RON; 

per annum; Reimbursements: quarterly instalments 

a borrower and Electrica SA as a guarantor, 

the outstanding balance is Nil as no withdraw 

Interest rate: ROBOR 3M +2.95 % p.a.; full refund at 

until 28.10.2026; Grace period: 12 months. As at 31 

concluded with Banca Comerciala Romana S.A. an 

was made from the loan. The loan agreement is 

maturity. On 31 December 2023, the balance of the 

December 2023, the outstanding balance is of RON 

investment credit agreement with the purpose of 

guaranteed by Electrica SA.

62,400 thousand. (Outstanding balance as at 31 

financing investments in the electricity distribution 

December 2022: RON 83,200 thousand.

network, according to the approved investment 

d)  Investment loan granted by BRD – Groupe 

Societe Generale

On 25 June 2020, Societatea de Distributie a Energiei 

Electrice Transilvania Nord S.A., currently Distributie 

Energie Electrica Romania S.A., as a borrower, 

concluded with BRD – Groupe Societe Generale an 

investment credit agreement with the purpose of 

financing investments in the electricity distribution 

network, according to the approved investment 

plan for 2020. Main provisions are: Maximum loan 

amount: RON 100,000 thousand; Interest rate: fixed, 

plan for 2020. Main provisions are: Maximum loan 

amount: Ron 155,000 thousand; Interest rate: ROBOR 

3M+1% per annum; Reimbursements: quarterly 

instalments until 2028; Grace period: 12 months. As 

at 31 December 2023, the outstanding balance is 

RON 90,542 thousand, of which RON 90,011 thousand 

principal and RON 531 thousand accrued interest. 

(Outstanding balance as at 31 December 2022: RON 

109,785 thousand).

g)  Investment loan granted by the European Bank 

for Reconstruction and Development (“EBRD”)

loan is 125,000 thousand RON. (Outstanding balance 

as at 31 December 2022: RON 100,000 thousand).

i) 

Investment loan granted by the European 

Investment Bank (“EIB”)

l) 

Investment loan granted by the European Bank 

for Reconstruction and Development  (“EBRD”)

On 7 December 2021, Societatea de Distributie 

Energie Electrica Romania SA, as a borrower, 

On 17 March 2023, Societatea de Distributie Energie 

concluded with the European Investment Bank an 

Electrica Romania SA, as a borrower, concluded 

investment credit contract, representing the second 

with the European Bank for Reconstruction and 

part of the Approved Credit in the amount of EUR 

Development a credit agreement for working 

210,000 thousand for the purpose of financing 

capital. The main provisions are: The maximum 

investments in the electricity distribution network 

value of the loan RON 180,000 thousand; Interest 

according to the 2021-2023 investment plan. The 

rate: agreed individually for each tranche drawn; 

main provisions are: Maximum value of the loan: EUR 

Repayments: 14 quarterly instalments until 

90,000 thousand; Interest rate and Repayments will 

31.01.2028; Grace period: 18 months. Maximum credit 

be agreed individually for each tranche drawn. On 

amount: 180,000 thousand RON; Interest rate: ROBOR 

3.85% per annum; Reimbursements: quarterly 

On 2 July 2021, Societatea de Distributie Energie 

31 December 2023, the outstanding balance is Nil 

3M + 2.10%. As at 19 December 2023, the value of 

instalments until 2028; Grace period: 12 months. As 

Electrica Romania SA, as a borrower, concluded 

as no withdraw was made from the loan. The loan 

the loan increased to 240,000 thousand RON. As at 

at 31 December 2023, the outstanding balance is of 

with the European Bank for Reconstruction and 

agreement is guaranteed by Electrica SA.

31 December 2023, the outstanding balance is RON 

RON 64,286 thousand. (Outstanding balance as at 31 

Development a credit agreement for investments 

December 2022: RON 78,571 thousand).

in order to finance investments in the electricity 

e)  Investment loan granted by BRD – Groupe 

Societe Generale

On 25 June 2020, Societatea de Distributie a Energiei 

Electrice Transilvania Sud S.A., currently Distributie 

Energie Electrica Romania S.A. as a borrower, 

concluded with BRD – Groupe Societe Generale an 

investment credit agreement with the purpose of 

distribution network according to the 2021-2023 

investment plan. The main provisions are: The 

maximum value of the loan RON 195,136 thousand; 

Interest rate: agreed individually for each tranche 

drawn; Repayments: 17 half-yearly instalments 

until 31.07.2031; Grace period: 24 months. As at 31 

December 2023, the outstanding balance is RON 

189,970 thousand, of which RON 183,657 thousand 

principal and RON 6,313 thousand accrued interest. 

j) 

Loan for financing current activity granted by 

Eximbank Romania

On 22 December 2022, Distributie Energie Electrica 

Romania S.A., as a borrower, concluded with 

Eximbank Romania a credit agreement for a period 

of 24 months. The main provisions are: Maximum 

loan amount: 250,000 thousand RON; Interest 

rate: ROBOR 3M +1.65 % p.a.; Repayments: 6 equal 

quarterly instalments; Grace period: 6 months. 

182,775 thousand, of which RON 180,000 thousand 

principal and RON 2,775 thousand accrued interest. 

The loan agreement is guaranteed by Electrica SA. 

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (IFRS-EU)FOR THE YEAR ENDED 31 DECEMBER 20232023 ANNUAL REPORTNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (IFRS-EU)2023 ANNUAL REPORTELECTRICA S.AFOR THE YEAR ENDED 31 DECEMBER 2023ELECTRICA S.A602

603

m) Multicredit facility for multiple financing by accessing cash and non-cash products granted by CEC 

Financial Covenants

BANK SA  (“CEC”)

On 4 August 2023, Electrica Furnizare S.A., as the borrower, concluded a Facility Agreement Multicredit. The 

Banca Comerciala Romana, European Bank for Reconstruction and Development and European Investment 

The financial covenants specified in the agreements with BRD – Groupe Societe Generale, Unicredit Bank, 

main provisions are: The maximum value of the loan RON 150,000 thousand; Interest rate: ROBOR 3M+2.85%; 

Bank have been fulfilled as at 31 December 2023.

full repayment at maturity; Maturity date: 03 August 2026. As at 31 December 2023, the outstanding balance 

is RON 200,000 thousand. The loan agreement is guaranteed by Electrica SA.

Pledged Assets

n)  Syndicated credit facility granted by Erste Group Bank AG and Raiffeisen Bank SA

On 31 December 2023, for several overdrafts the Group has pledges (guarantees) for trade receivables 

On 2 November 2021, Electrica S.A., as borrower, entered into a syndicated credit facility with Erste Group 

Bank AG and Raiffeisen Bank SA. The main provisions are: Maximum loan amount RON 750,000 thousand; 

Interest rate: ROBOR 3M+1.16%. On 3 November 2023 the loan was extended for a period of one year and the 

maximum loan amount was reduced to RON 450,000,000. As at 31 December 2023 the balance of the loan 

is RON 91,768 thousand, of which principal RON 91,768 thousand and accrued interest RON 619 thousand (31 

December 2022: RON 0.0 thousand).

Overdrafts

amounts, as specified on contracts.

Bank Guarantees

The maximum limit of the facility for issuing bank guarantees (credit facility for issuing guarantee 

instruments and multi-product lines) RON 3,110,456 thousand, of which non-cash uses RON 1,104,986 

thousand.

32 Financial instruments - fair values and risk management

Until the authorization for issue of these Consolidated Financial Statements by the Board of Directors, 

(a)  Accounting classifications and fair values

the Group has overdrafts from various banks (ING Bank N.V., Raiffeisen Bank, Banca Comerciala Romana, 

Banca Transilvania, BNP Paribas, Intesa Sanpaolo Bank, BRD – Groupe Societe Generale S.A., Alpha Bank 

and UniCredit) with a total overdraft limit of up to RON 2,963,947 thousand (Total overdraft limit as at 31 

December 2022: RON 2,743,542 thousand).

The overdraft facilities are used for financing activities. The outstanding balance of the overdraft facilities as 

at 31 December 2023 is of RON 2,851,221 thousand (31 December 2022: RON 2,571,037 thousand).

Lender (overdrafts)

Borrower

Balance at 

Balance at 

31 December 2023

 31 December 2022

ING Bank N.V

Societatea Energetica Electrica S.A.

Alpha Bank

Electrica Furnizare S.A.

BCR

BRD

Electrica Furnizare S.A.

Electrica Furnizare S.A.

Banca Transilvania

Electrica Furnizare S.A.

ING Bank N.V

Electrica Furnizare S.A.

Raiffeisen Bank

Electrica Furnizare S.A.

UniCredit Bank 

Electrica Furnizare S.A.

BNP Paribas

Electrica Furnizare S.A.

BCR

Distributie Energie Electrica Romania S.A

Banca Transilvania

Distributie Energie Electrica Romania S.A

ING Bank N.V

Distributie Energie Electrica Romania S.A

Intesa San Paolo

Distributie Energie Electrica Romania S.A

Raiffeisen Bank

Distributie Energie Electrica Romania S.A

206,986

213,702

378,887

218,817

187,194

170,602

369,274

302,399

28,830

210,593

159,544

49,682

135,815

218,895

209,138

147,497

227,311

216,570

185,528

169,600

343,001

300,294

-

208,412

158,965

49,855

135,096

219,770

According to IFRS 9, financial assets are measured at amortised cost as they are held within a business 

model to collect contractual cash flows and these cash flows consist solely of payments of principal and 

interest on the principal amount outstanding.

The Group assessed that the carrying amount is a reasonable approximation of the fair value for the 

financial assets and financial liabilities.

(b)  Financial risk management

The Group has exposure to the following risks arising from financial instruments:

•  credit risk;

•  liquidity risk;

•  market risk.

These risks are further explained and detailed.

(i)  Credit risk 

Credit risk is the risk of financial loss to the Group if a customer or counterparty to a financial instrument 

fails to meet its contractual obligations, and arises principally from the Group’s receivables from customers, 

cash and cash equivalents, restricted cash and bank deposits.

The Group’s exposure to credit risk is influenced mainly by the individual characteristics of each customer. 

In the past, the Group had a high credit risk mainly from State-owned companies. 

Total overdrafts

2,851,221

2,571,037

Cash and bank deposits are placed in financial institutions which are considered to have low risk of default.

The carrying amount of financial assets represents the maximum credit exposure.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (IFRS-EU)FOR THE YEAR ENDED 31 DECEMBER 20232023 ANNUAL REPORTNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (IFRS-EU)2023 ANNUAL REPORTELECTRICA S.AFOR THE YEAR ENDED 31 DECEMBER 2023ELECTRICA S.A604

605

Trade receivables

(ii)  Liquidity risk

The Group’s credit risk in respect of receivables was concentrated in the past around state-controlled 

Liquidity risk is the risk that the Group will encounter difficulty in meeting the obligations associated with its 

companies and in the recent years refers to clients that are facing financial difficulties in their industries 

financial liabilities that are settled by delivering cash or another financial asset. The Group’s approach to 

due to specific changes in circumstances in their industry sector. The Group has implemented a policy 

managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities 

on credit risk management and is also considering securing trade receivables. Also, the electricity supply 

when they are due, under both normal and stressed conditions, without incurring unacceptable losses.

contracts include termination clauses in certain circumstances.

The Group establishes an allowance for impairment that represents the amount of expected credit losses, 

cash outflows on financial liabilities. The Group also monitors the level of expected cash inflows on trade 

calculated based on the expected loss rates.

receivables together with expected cash outflows on trade and other payables. In addition, the Group 

The Group aims to maintain the level of its cash and cash equivalents at an amount in excess of expected 

Impairment

maintains overdrafts (refer to Note 32).

Exposure to liquidity risk

The following table provides information about the exposure to credit risk and expected credit losses for 

trade receivables for customers as at 31 December 2023:

The following are the remaining contractual maturities of financial liabilities at the reporting date. The 

31 December 2023

amounts are gross and undiscounted.

Gross 

value

Lifetime ECL

Net trade 

Credit 

receivables

impaired

Financial liabilities

Carrying 

amount

Contractual cash flows

Total

less than 1 

year

1-2 years

2-5 years

more than 

5 years

Expected 
credit loss 

rates (“ECL”)

2%

7%

14%

37%

92%

Neither past due nor impaired

Past due 1-30 days

Past due 31-60 days

Past due 61-90 days

Past due more than 90 days

Total

2,229,339 

(35,330) 

2,194,009 

255,100 

(16,875) 

238,225 

47,635 

25,927 

(6,670) 

40,965 

(9,640) 

16,287 

622,659 

(571,703) 

50,956 

3,180,660 

(640,218) 

2,540,442 

No

No

No

No

Yes

The Group performed a sensitivity analysis and a 5% increase in the expected credit loss rates would not 

lead a material impact on the results of the Group. 

trade receivables for customers as at 31 December 2022:

31 December 2022

Expected 

credit loss 

rates (“ECL”)

Gross 

value

Lifetime ECL

Net trade 

Credit 

receivables

impaired

3%

4%

16%

35%

95%

1,951,656

(60,310)

1,891,346

490,985

(19,342)

471,643

66,365

27,259

(10,488)

(9,671)

55,877

17,588

No

No

No

No

582,426

(552,878) 

29,548

Yes

3,118,691

(652,689) 

2,466,002

Neither past due nor impaired

Past due 1-30 days

Past due 31-60 days

Past due 61-90 days

Past due more than 90 days

Total

Details of the main movements in the allowances for doubtful debts are disclosed in Note 20.

31 December 2023

Bank overdrafts

Lease liability

2,851,221 

2,851,221 

2,851,221 

-

-

43,195 

43,195 

14,052 

9,920 

3,980 

Long term bank borrowings

1,317,642 

1,317,642 

523,294 

258,923 

475,905 

1,671,478 

1,671,478 

1,671,478 

-

-

5,883,536

5,883,536

5,060,045

268,843

479,885

74,763

2,571,037

2,571,037

2,571,037

-

-

53,673

53,673

19,211

10,795

10,645

1,407,097

1,407,097

1,407,097

-

-

4,792,520

4,792,520

4,110,865

365,266

211,150

105,239

-

15,243 

59,520 

-

-

13,022

92,217

-

Trade payables

Total

31 December 2022

Bank overdrafts

Lease liability

Trade payables

Total

(iii)  Market risk

Market risk is the risk that changes in market prices – such as foreign exchange rates and interest rates 

– will affect the Group’s income or the value of its financial instruments held. The objective of market 

risk management is to manage and control market risk exposures within acceptable parameters, while 

optimising the return.

Currency risk

The Group is exposed to currency risk to the extent that there is a mismatch between the currencies in 

which sales, purchases and borrowings are denominated and the functional currency of the Group. The 

functional currency of all entities belonging to the Group is the Romanian Leu (RON). 

The currency in which these transactions are primarily denominated is RON. Certain liabilities are 

denominated in foreign currency (EUR). The Group also has deposits and bank accounts denominated in 

The following table provides information about the exposure to credit risk and expected credit losses for 

Long-term bank borrowings 

760,713

760,713

113,520

354,471

200,505

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (IFRS-EU)FOR THE YEAR ENDED 31 DECEMBER 20232023 ANNUAL REPORTNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (IFRS-EU)2023 ANNUAL REPORTELECTRICA S.AFOR THE YEAR ENDED 31 DECEMBER 2023ELECTRICA S.A606

607

foreign currency (EUR). The Group’s policy is to use the local currency in its transactions as far as practically 

Exposure to interest rate risk

possible. The Group does not use derivative or hedging instruments.

Exposure to currency risk

The summary of quantitative data about the Group’s exposure to currency risk is as follows:

in thousands of RON

Cash and cash equivalents

Lease liability

Net statement of financial position exposure

31 December 2023

31 December 2022

denominated in EUR

denominated in EUR

347

(42,231)

(41,844)

277

(21,004) 

(20,727)

The following significant exchange rates have been applied during the year:

RON

EUR 1

Sensitivity analysis

Average rate

Year-end spot rate

2023

4.9465

2022

4.9315

2023

4.9746

2022

4.9474

A reasonably possible strengthening (weakening) of the EUR against RON at 31 December would have 

affected the measurement of financial instruments denominated in a foreign currency and profit before 

tax by the amounts shown below. The analysis assumes that all other variables, in particular interest rates, 

remain constant and ignores any impact of forecast sales and purchases.

The interest rate profile of the Group’s interest-bearing financial instruments is as follows:

31 December 2023

31 December 2022

(restated*)

Fixed-rate instruments

Financial assets

Call deposits 

Financial liabilities

Long-term bank borrowings

Lease liability

Variable-rate instruments

Financial liabilities

Lease liability

Long-term bank borrowings

Bank overdrafts

Total

153,997 

193,219

(1,068,912) 

(32,312) 

(947,227) 

(10,883) 

(248,730) 

(651,752)

(37,378)

(495,911)

(16,295)

(108,961)

(2,851,221) 

(2,571,037)

(3,110,834) 

(2,696,293)

31 December 2023

EUR (5% movement)

31 December 2022

EUR (5% movement)

Interest rate risk

Profit before tax

Fair value sensitivity analysis for fixed-rate instruments

Effect

Strengthening

Weakening

The Group does not account for any fixed-rate financial assets or financial liabilities at fair value through 

profit or loss. Therefore, a change in interest rates at the reporting date would not affect profit or loss.

(2,092) 

(1,036) 

2,092

1,036

Cash flow sensitivity analysis for variable-rate instruments

A reasonably possible change of 50 basis points in interest rates at the reporting date would have 

increased (decreased) profit before tax by the amounts shown below. This analysis assumes that all other 

variables, in particular foreign currency exchange rates, remain constant.

For financing purposes, the Group uses both medium and long-term bank loans and short-term loans in the 

form of overdraft facilities (please see Note 31).

The Group is exposed to interest rate risk because entities in the Group borrow funds at both fixed and 

31 December 2023

floating interest rates. The risk is managed by the Group by maintaining an appropriate mix between fixed 

Variable-rate instruments

and floating rate borrowings (please see Note 31), as the long-term borrowings are contracted mainly at 

fixed rates, while the overdraft facilities bear variable rates. The Group does not have in place hedging 

contracts for interest rate. 

31 December 2022

Variable-rate instruments

The Groups exposures to interest rates on financial assets and financial liabilities are detailed below. 

The Group is exposed to the interest rate benchmark ROBOR, which is the interest rate on the Romanian 

interbank market.

Profit before tax

50 bp increase

50 bp decrease

(15,554)

15,554

(13,481) 

13,481

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (IFRS-EU)FOR THE YEAR ENDED 31 DECEMBER 20232023 ANNUAL REPORTNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (IFRS-EU)2023 ANNUAL REPORTELECTRICA S.AFOR THE YEAR ENDED 31 DECEMBER 2023ELECTRICA S.A 
 
 
 
 
608

609

33 Related parties

(a)  Main shareholders

Supplier

As at 31 December 2023 and 31 December 2022, the major shareholder of Societatea Energetica Electrica S.A. 

Electrocentrale Bucuresti

is the Romanian State, represented by the Ministry of Energy with a share of ownership of 48.79% from the 

share capital.

(b)  Management and administrators’ compensation

ANRE

Transgaz

Others

Total

Purchases (without VAT)

Balance (including VAT)

2023

-

16,763 

7,638 

5,945 

2022

191,862

10,458

8,029

7,768

31 December 

31 December 

2023

-

12

1,850

1,513 

2022

-

14

986

1,168

5,585,186

6,299,475

635,845

426,562

Executive Management compensation

2023

36,623 

2022

34,726

The Group also makes sales to companies in which the State has control or significant influence 

representing supply of electricity, of which the most important transactions are the following:

Executive management compensation refers to both the managers with mandate contract and those with 

labour contract, from both the subsidiaries and Electrica SA. This also includes the benefits in the event of 

the termination of mandate contracts for executive directors.

Compensations granted to the members of the Board of Directors were as follows:

Members of Board of Directors 

2023

4,151 

2022

3,063

Electrica SA’s Board of Directors comprises 7 members. According to the remuneration policy approved by 

the General Meeting of Shareholders that took place on 20 April 2022, the annual number of paid sessions 

is limited to twelve for Board of Directors meetings and to six for each of the committees. Additional 

committee meetings can be organized only in exceptional situations, upon the Chairs’ committee decision, 

who are responsible to efficiently organize the agenda and activity. However, only one such additional 

meeting shall be remunerated, for each committee.

No loans were granted to directors or administrators in 2023 and 2022.

(c)  Transactions with companies in which the state has control or significant influence 

The Group has transactions with companies in which the State has control or significant influence in the 

ordinary course of business, related mainly to the acquisition of electricity, transport and system services 

and sale of electricity. Significant purchases and balances are mainly with energy producers/suppliers, as 

follows:

Supplier

OPCOM

Transelectrica

Nuclearelectrica

Hidroelectrica

Complexul Energetic Oltenia

OMV Petrom SA

SNGN Romgaz SA

Purchases (without VAT)

Balance (including VAT)

2023

2022

2,879,757 

2,727,101

671,172 

799,117 

44,631 

1,107,474 

-

52,689 

968,470

866,763

581,598

478,813

261,123

197,490

31 December 

31 December 

2023

212,746 

170,242 

107,671 

37

132,693 

-

9,081 

2022

23,981

185,856

93,013

42,493

45,257

26,349

7,445

Client

OPCOM 

Transelectrica

C.N.C.F  CFR S.A.

SNGN Romgaz SA

Hidroelectrica

CN Romarm

CFR Electrificare

Transgaz

CN Remin SA

C.N.C.A.F MINVEST SA

Oltchim

CET Braila

Termoelectrica

Sales 

Balance, gross 

Allowance 

(without VAT)

(including VAT)

(including VAT)

Balance, net

2023

37,429

157,861

114,009

32,762

288,923

25,158

19,043

1,684

923

-

-

14

-

2,174

44,220

33,841

-

32,882

4,279

2,347

544

71,347

26,802

115,426

3,378

1,206

31 December 2023

-

-

5

-

-

-

-

-

71,216

26,802

115,426

3,361

1,206

-

-

2,174

44,220

33,836

-

32,882

4,279

2,347

544

131

-

-

17

-

18,981

2,605,684

County Agency for Payments and Social 
Inspection

Ministry of Energy/ National Agency for 
Payments and Social Inspection

18,981

18,981

3,287,858

2,605,684

Others

Total

211,691

9,173

364

8,809

4,196,336

3,008,780

218,380

2,790,400

(*)  In the 12-month period ended 31 December 2023, Electrica Furnizare S.A. recognised subsidies amounting to RON 3,306,839 thousand, 

to be received from the Ministry of Energy/National Agency for Payments and Social Inspection, as a result of the application of the 
price cap mechanism for electricity and natural gas according to the legislation in force.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (IFRS-EU)FOR THE YEAR ENDED 31 DECEMBER 20232023 ANNUAL REPORTNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (IFRS-EU)2023 ANNUAL REPORTELECTRICA S.AFOR THE YEAR ENDED 31 DECEMBER 2023ELECTRICA S.AClient

OPCOM 

Transelectrica

SNGN Romgaz SA

Hidroelectrica

CN Romarm

CFR Electrificare

Transgaz

CN Remin SA

C.N.C.A.F MINVEST SA

Oltchim

CET Braila

Termoelectrica

Ministry of Energy/ National Agency for 
Payments and Social Inspection 

Others

Total

34 Contingencies

Contingent liabilities

Fiscal environment

610

611

Sales 

Balance, gross 

Allowance 

(without VAT)

(including VAT)

(including VAT)

Balance, net

2022

326,640

314,253

86,353

68,716

17,386

10,332

11,580

704

-

-

5

-

22,630

112,754

2,253

16,429

648

2,089

764

71,279

26,802

115,943

3,365

1,206

31 December 2022

-

-

9

-

-

-

-

71,148

26,802

115,943

3,361

1,206

22,630

112,754

2,245

16,429

648

2,089

764

132

                 -

-

3

-

subsidiary representing building tax for the period 01.01.2012-31.12.2015 in the total amount of RON 24,831 

thousand, of which principal in amount of RON 12,051 thousand and related late penalties computed as of 

October 2019, in amount of RON 12,780 thousand. The amount of late charges was recalculated to RON 13,021 

thousand between the tax inspection report date and principal debt payment date. Litigious actions were 

started in order to challenge the tax inspection report.

The Group recognised an expense in amount of RON 12,051 thousand during the year ended 31 December 

2019 in accordance with IFRIC 23 „Uncertainty over Income Tax Treatments”. At the same time, for the late 

penalties in the amount of RON 13,021 thousand, a letter of bank guarantee was established in the amount of 

RON 13,021 thousand valid until 14 August 2024, in order to mitigate the associated risks.

Other litigations and claims 

The Group is involved in a series of litigations and claims (ie, with ANRE, NAFA, Court of Accounts, claims for 

damages, claims over land titles, labour related litigations etc.).

As summarised in Note 30, the Group set-up provisions for the litigations or claims for which the 

management assessed as probable the outflow of resources embodying economic benefits due to low 

chances of favourable outcomes of those litigations or disputes. The Group does not present information 

in the financial statements and did not set-up provisions for items for which the management assessed as 

2,687,131

1,322,311

-   

1,322,311 

remote the possibility of outflow of economic benefits.

127,686

11,277

522

10,754

3,650,786

1,709,750

218,991

1,490,759

The Group discloses if the case information on the most significant items of litigations or claims for which 

the Group did not set-up provisions as they relate to possible obligations that arise from past events whose 

existence will be confirmed only by the occurrence or non-occurrence of uncertain future events not wholly 

within the control of the Group (ie, litigations for which different inconsistent sentences were issued by the 

Courts, or litigations which are in early stages and no preliminary ruling was issued so far).

35 Commitments

(a)  Contractual commitments

Contractual commitments as at 31 December 2023 and 31 December 2022 are as follows:

Purchase of electricity

Purchase of green certificates

Purchase of property, plant and equipment and intangible assets

31 December 2023

31 December 2022

707,797 

172,979 

626,617 

45,122

802,252

129,246

446,937

289,636

1,552,515

1,668,071

Tax audits are frequent in Romania, consisting of detailed verifications of the accounting records of 

taxpayers. Such audits sometimes take place after months, even years, from the date liabilities are 

established. Consequently, companies may be found liable for significant taxes and fines. Moreover, tax 

legislation is subject to frequent changes and the authorities demonstrate inconsistency in interpretation of 

the law.

Income tax returns may be subject to revision and corrections by tax authorities, generally for a five-year 

period after they are completed.

The Group may incur expenses related to previous years’ tax adjustments as a result of controls and 

litigations with tax authorities, The management of the Group believes that adequate provisions were 

recorded in the consolidated financial statements for all significant tax obligations; however a risk persists 

Purchase of investments

Total

that the tax authorities might have different positions.

Tax inspection report for SDEE Muntenia Nord S.A. (currently Distributie Energie Electrica Romania S.A.)

The subsidiary SDEE Muntenia Nord S.A. (currently Distributie Energie Electrica Romania S.A.) was subject to 

a tax audit performed by the Local Taxes Department of Galati City Hall that referred to the building taxes 

paid for the period 2012-2016. The tax audit was finalized in December 2019, when the fiscal inspection report 

was communicated to the subsidiary. The fiscal report established additional payment obligations for the 

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (IFRS-EU)FOR THE YEAR ENDED 31 DECEMBER 20232023 ANNUAL REPORTNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (IFRS-EU)2023 ANNUAL REPORTELECTRICA S.AFOR THE YEAR ENDED 31 DECEMBER 2023ELECTRICA S.A612

613

(b)  Investment program

The investment program at Group level estimated to be approved for the year 2024 is as follows:

Distribution activity

Supply activity

Maintenance activity

Production activity

Other

Total

2024

865,480

53,290

10,300

588,130

16,600

1,533,790

The capital expenditures actually incurred may differ from the ones planned.

(c)  Guarantees and pledges

At 31 December 2023 and 31 December 2022, the Group has guarantees on its bank accounts opened at ING 

Bank N.V., Raiffeisen Bank, Banca Comerciala Romana, Banca Transilvania, Intesa Sanpaolo Bank and Alpha 

Bank for the overdrafts contracted (please see Note 31), and also on its bank accounts opened at BRD – 

Group Societe Generale, Unicredit Bank, Banca Transilvania, Banca Comerciala Romana, Vista Bank and CEC 

Bank for the long-term borrowings contracted (please see Note 31). 

At 31 December 2023, the Group has outstanding bank letters of guarantee of RON 1,193,823 thousand (31 

December 2022: RON 952,008 thousand) issued in favour of its suppliers.

(d)  Audit fees

The audit fees for the consolidated financial statements were in amount of 1,075 thousand RON, and during 

the year 2023, non-audit services fees were in amount of 174 thousand RON (limited review of the interim 

consolidated financial statements). The audit fees for the individual financial statements are mentioned in 

the annual individual financial statements of Electrica S.A..

36 Subsequent events

On 15 February 2024, the subsidiary Distributie Energie Electrica Romania (DEER) has obtained approval for 

EUR 171 million in non-reimbursable European funding through the Modernisation Fund (FM), representing 

80% of the eligible expenditure for seven new investment projects in the electricity distribution network, 

projects with an estimated value of approximately EUR 266 million (with VAT).

Chief Executive Officer

Alexandru-Aurelian Chirita

Chief Financial Officer

Stefan Alexandru Frangulea

25 March 2024

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (IFRS-EU)FOR THE YEAR ENDED 31 DECEMBER 20232023 ANNUAL REPORTNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (IFRS-EU)2023 ANNUAL REPORTELECTRICA S.AFOR THE YEAR ENDED 31 DECEMBER 2023ELECTRICA S.A614

615

INDEPENDENT AUDITOR’S REPORT 
ON 2023 CONSOLIDATED FINANCIAL 
STATEMENTS (IFRS-EU)

616

617

Deloitte Audit S.R.L.  
The Mark Tower,  
82-98 Calea Griviței,  
Sector 1, 010735 
Bucharest, Romania 

T: +40 21 222 16 61 
F: +40 21 222 16 60 
www.deloitte.ro 

INDEPENDENT AUDITOR’S REPORT 

To the Shareholders, 
SOCIETATEA ENERGETICA ELECTRICA S.A. 

Report on the Audit of the Consolidated Financial Statements  

Opinion 

1.  We have audited the consolidated financial statements of Societatea Energetica Electrica S.A.and its subsidiaries (“the 

Group”), with registered office in Bucharest, District 1, Street Grigore Alexandrescu, No. 9 , identified by unique tax 
registration code 13267221, which comprise the consolidated statement of financial position as at December 31, 2023, 
and the consolidated statement of comprehensive income, consolidated statement of changes in equity and 
consolidated statement of cash flows for the year then ended, and notes to the consolidated financial statements, 
including material accounting policy information. 

2. 

The financial statements as at December 31, 2023 are identified as follows: 

• 
• 

Net assets / Equity                                                                                                                       RON 5,360,415 thousand   
RON     772,103 thousand  
Net profit for the financial year 

3. 

In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the 
consolidated financial position of the Group as at December 31, 2023, and its consolidated financial performance and 
its consolidated cash flows for the year then ended in accordance with IFRS Accounting Standards as adopted by the 
EU. 

Basis for Opinion 

4.  We conducted our audit in accordance with International Standards on Auditing (ISAs), Regulation (EU) No. 537/2014 

of the European Parliament and the Council (herein after referred to as “the Regulation”) and Law 162/2017 on the 
statutory audit of annual financial statements and annual consolidated financial statements and on amending other 
pronouncements (herein after referred to as “the Law 162/2017”). Our responsibilities under those standards are 
further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We 
are independent of the Company in accordance with the International Ethics Standards Board for Accountants’ 
International Code of Ethics for Professional Accountants (including International Independence Standards) (IESBA 
Code), in accordance with ethical requirements relevant for the audit of the financial statements in Romania including 
the Regulation and the Law 162/2017 and we have fulfilled our other ethical responsibilities in accordance with these 
requirements and the IESBA Code. We believe that the audit evidence we have obtained is sufficient and appropriate 
to provide a basis for our opinion. 

Emphasis of Matter 

5.  We draw attention to Note 2 of the consolidated financial statements, which describes that the Group prepares two 
sets of consolidated financial statements, one under statutory regulations, namely Ministry of Finance Order 
2844/2016 with subsequent amendments and one under International Financial Reporting Standards as adopted by 
the European Union (“IFRS”). These consolidated financial statements are prepared under International Financial 
Reporting Standards as adopted by the European Union (“IFRS”), which differs from OMF 2844/2016 with subsequent 
amendments, as summarized in Note 2. Consequently these consolidated financial statements do not comply with 
OMF 2844/2016 with subsequent amendments. Our audit report is not modified in respect of this matter. 

Key Audit Matters 

6. 

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the 
consolidated financial statements of the current period. These matters were addressed in the context of our audit of 
the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a 
separate opinion on these matters.  

Key audit matters 

Going Concern 

How our audit addressed the key audit matter 

As presented in Note 8 the consolidated financial statements 
have been prepared on the going concern basis. The key 
judgement leading to this conclusion are set out in that note. 

We have assessed managements valuation of the going 
concern assumption by performing the following 
procedures:  

•  We have obtained the cash flow forecasts and 
critically challenged the management and the 
Board of Directors and Audit Committee on the 
assumptions used;         

•  We considered whether at the date of this report 

additional information exist from the Romanian 
authorities with respect to the capping mechanism;                               

•  We have assessed the Group’s position on the 

existing debt facilities, covenant compliance and 
newly negotiated debt facilities, during 2024 until 
the date of this report; 

•  We assessed the adequacy of the disclosure of the 

basis of going concern assumption, including the 
key judgements adopted; 

In particular the Group operates in the electricity distribution 
and supply industry which is currently affected by the 
capping laws on sales to end customers. The Romanian 
authorities regulatory position is under review and there 
may be further laws enacted which could adversely impact 
the Group’s operating cash flows. In the forthcoming twelve 
months the Group will need to obtain additional financing 
and given the position of the Group and its significance to 
the Romanian economy management expects that all 
necessary financing will be made available. 

The ability of the Group to continue as a going concern is 
dependent on the successful extension of the existing debt 
facilities, drawdown of new financing and on stabilizing of 
the regulatory regime on energy prices as described in note 8 
which provides an appropriate margin to support servicing of 
the Group’s short and long term financings. 

In view of the significant judgements, the application and 
disclosures of the basis of the going concern assumption are 
considered a Key Audit Matter.  

Valuation of Retail accrued revenue, related to electricity 
supplied to households 

The Group recognizes at the end of each reporting period 
accrued revenue from the energy supply activity, related to 
the household population. If the actual meter readings are 
not available at the end of the reporting period, energy 
supplied to households is estimated based on internal 
information related to historical patterns of consumption. 
The degree of estimation uncertainty reduces from one 
period to another, however judgement is inherent in the 
valuation of the accrued revenue related to the household 
population.  

The group has a number of IT systems across the 
businesses and we were not able to rely on the 
effectiveness of IT controls within the revenue cycle. The 
audit procedures adopted were substantive in nature and 
included the following: 

•  Obtaining an understanding of the accounting 

policies used in the preparation of the consolidated 
financial statements, with respect to revenue 
recognition; 

Because of the significance of the estimations around the 
accrued revenue related to the households and the inability 
of relying on the effectiveness of the controls, we consider 
the valuation of retail accrued revenue, related to 
households a key audit matter. 

• 

Testing the reconciliation made by the Group 
between the quantity of electricity purchased for 
supply purposes and the quantity of electricity 
delivered from the supply activity; 

Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited ("DTTL"), its global network of member firms, and their related entities (collectively, the "Deloitte organization"). DTTL (also 
referred to as "Deloitte Global") and each of its member firms and related entities are legally separate and independent entities, which cannot obligate or bind each other in respect of third parties. 
DTTL and each DTTL member firm and related entity is liable only for its own acts and omissions, and not those of each other. DTTL does not provide services to clients.  
Please see www.deloitte.com/about to learn more.  

1 

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INDEPENDENT AUDITOR’S REPORT ON 2023 CONSOLIDATED FINANCIAL STATEMENTS (IFRS-EU)2023 ANNUAL REPORTINDEPENDENT AUDITOR’S REPORT ON 2023 CONSOLIDATED FINANCIAL STATEMENTS (IFRS-EU)2023 ANNUAL REPORT 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
    
 
 
 
 
 
 
 
 
 
 
 
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Key audit matters 

How our audit addressed the key audit matter 

Other information  

• 

• 

• 

Testing the acquired electricity for supply purposes 
through a combination of direct confirmations 
received from the electricity producers and other 
supporting documents;  

Testing the revenues related to electricity supplied 
to final customers through a combination of direct 
confirmations and other supporting documents; 

Performing analytical procedures on all electricity 
sales. 

We have assessed the Group’s position with respect to 
the recognition of the financial asset related to additional 
costs of purchasing electricity for covering own 
technological consumption of the distribution operators 
and restatement of the consolidated financial statements 
by performing the following procedures:  

•  We have obtained the position paper prepared by 
the management and position paper prepared by 
an external consultant with respect to this matter;       

•  We have read and assessed the memos in view of 
the application of the relevant IFRS standards and 
we have performed internal consultations with our 
IFRS specialists; 

We have assessed the adequacy of the restatement of 
the comparative financial information including related 
disclosure in the financial statements; 

Restatement of financial statements as at December 31, 
2022 

In our auditor’s report on the consolidated financial 
statements for the prior period (i.e. as of 31 December 2022 
and for the year then ended), we have expressed a qualified 
opinion due to the fact that the Group has recorded a 
financial asset related to the concession agreement of RON 
951,557 thousand related to the additional cost of 
purchasing electricity for covering the own technological 
consumption of the distribution operators. We were unable 
to obtain sufficient evidence to support the recognition of 
the amounts recorded as financial assets related to the 
concession agreement in the consolidated statement of 
financial position as of December 31, 2022 and the elements 
making up the statement of profit and loss and other 
comprehensive income, statement of changes in equity and 
statement of cash flows. 

As presented in Note 5 to the consolidated financial 
statements, during 2023, the Group reassessed its previous 
position within the consolidated financial statements related 
to the recognition of financial asset from the amendment of 
the concession agreements, for which a financial asset in the 
amount of RON 951,557 thousand was recognised, 
representing the difference between the net cost with the 
purchase of the energy for network losses and the network 
losses cost included in the regulatory tariff by ANRE, for the 
period 1 January – 31 December 2022, and restated the 
comparatives in the current year financial statements. 

In view of the significant judgements, the application of the 
IFRS as adopted by EU ("IFRS") measurement and recognition 
criteria and also restatement including related disclosures, 
this matter was considered a significant risk and a Key Audit 
Matter.  

7. 

The administrators are responsible for the preparation and presentation of the other information. The other 
information comprises the Administrators’ Consolidated report and the Remuneration report, but does not include the 
consolidated financial statements and our auditor’s report thereon, or the non-financial information declaration, which 
is being presented in a separate report. 

Our opinion on the financial statements does not cover the other information and, unless otherwise explicitly 
mentioned in our report, we do not express any form of assurance conclusion thereon. 

In connection with our audit of the consolidated financial statements for the year ended December 31, 2023, our 
responsibility is to read the other information and, in doing so, consider whether the other information is materially 
inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be 
materially misstated. 

Other reporting responsibilities with respect to other information – Administrators’ consolidated report 

With respect to the Administrators’ consolidated report, we read it and report if this has been prepared, in all material 
respects, in accordance with International Financial Reporting Standards as adopted by the European Union.  

On the sole basis of the procedures performed within the audit of the consolidated financial statements, in our 
opinion:  

a) 

the information included in the Administrators’ consolidated report and the Remuneration report for the 
financial year for which the consolidated financial statements have been prepared, is consistent, in all material 
respects, with the consolidated financial statements; 

b) 

the Administrators’ consolidated report has been prepared, in all material respects, in accordance with 
International Financial Reporting Standards. 

Moreover, based on our knowledge and understanding concerning the Group and its environment gained during the 
audit on the financial statements prepared at December 31, 2023, we are required to report if we have identified a 
material misstatement of this Administrators’ consolidated report and the Remuneration report. We have nothing to 
report in this regard.  

Other reporting responsibilities with respect to other information – Remuneration report 

With respect to the Remuneration report, we read it to determine if it presents, in all material respects, the 
information required by article 107, paragraphs (1) and (2) of Law 24/2017 regarding the issuers of financial 
instruments and market operations, republished. We have nothing to report in this regard. 

Responsibilities of Management and Those Charged with Governance for the Consolidated Financial Statements  

8.  Management is responsible for the preparation and fair presentation of the consolidated financial statements in 

accordance with IFRS Accounting Standards as adopted by the EUand for such internal control as management 
determines is necessary to enable the preparation of consolidated financial statements that are free from material 
misstatement, whether due to fraud or error. 

9. 

In preparing the consolidated financial statements, management is responsible for assessing the Group’s ability to 
continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern 
basis of accounting unless management either intends to liquidate the Group or to cease operations, or has no realistic 
alternative but to do so. 

10.  Those charged with governance are responsible for overseeing the Group’s financial reporting process. 

3 

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INDEPENDENT AUDITOR’S REPORT ON 2023 CONSOLIDATED FINANCIAL STATEMENTS (IFRS-EU)2023 ANNUAL REPORTINDEPENDENT AUDITOR’S REPORT ON 2023 CONSOLIDATED FINANCIAL STATEMENTS (IFRS-EU)2023 ANNUAL REPORT 
 
 
 
 
 
 
 
 
 
 
 
 
                          
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements 

Report on Other Legal and Regulatory Requirements  

11.  Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are 
free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our 
opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in 
accordance with ISAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or 
error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence 
the economic decisions of users taken on the basis of these consolidated financial statements. 

12.  As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional skepticism 

throughout the audit. We also: 

• 

• 

• 

• 

• 

• 

Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to 
fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is 
sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement 
resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, 
intentional omissions, misrepresentations, or the override of internal control. 

Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are 
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the 
Group's internal control. 

Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and 
related disclosures made by management. 

Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on 
the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast 
significant doubt on the Group’s ability to continue as a going concern. If we conclude that a material uncertainty 
exists, we are required to draw attention in our auditor’s report to the related disclosures in the consolidated 
financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on 
the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may 
cause the Group to cease to continue as a going concern. 

Evaluate the overall presentation, structure and content of the consolidated financial statements, including the 
disclosures, and whether the consolidated financial statements represent the underlying transactions and events 
in a manner that achieves fair presentation.  

Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business 
activities within the Group to express an opinion on the consolidated financial statements. We are responsible for 
the direction, supervision and performance of the group audit. We remain solely responsible for our audit 
opinion. 

13.  We communicate with those charged with governance regarding, among other matters, the planned scope and timing 
of the audit and significant audit findings, including any significant deficiencies in internal control that we identify 
during our audit. 

14.  We also provide those charged with governance with a statement that we have complied with relevant ethical 

requirements regarding independence, and to communicate with them all relationships and other matters that may 
reasonably be thought to bear on our independence, and where applicable, actions taken to eliminate threats or 
safeguards applied. 

15.  From the matters communicated with those charged with governance, we determine those matters that were of most 
significance in the audit of the financial statements of the current period and are therefore the key audit matters. We 
describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or 
when, in extremely rare circumstances, we determine that a matter should not be communicated in our report 
because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits 
of such communication. 

16.  We were appointed by the General Meeting of Shareholders on April 27, 2023 to audit the consolidated financial 

statements of Societatea Energetica Electrica S.A. for the financial year ended December 31, 2023. The uninterrupted 
total duration of our commitment is 6 of years, covering the financial years ended December 31, 2018 to December 31, 
2023. 

We confirm that: 

•  Our audit opinion is consistent with the additional report submitted to the Audit Committee of the Company that 
we issued the same date we issued this report. Also, in conducting our audit, we have retained our independence 
from the audited entity. 

•  No non-audit services referred to in Article 5 (1) of EU Regulation no. 537/2014 were provided. 

The engagement partner on the audit resulting in this independent auditor’s report is Răzvan Ungureanu.  

Report  on  compliance  with  the  Law  162/2017  on  the  statutory  audit  of  annual  financial  statements  and  annual 
consolidated  financial  statements  and  on  amending  other  pronouncements  (“Law  162/2017”),  and  Commission 
Delegated  Regulation  (EU)  2018/815  on  the  European  Single  Electronic  Format  Regulatory  Technical  Standard 
(“ESEF”) 

We have undertaken a reasonable assurance engagement on the compliance with Law 162/2017, and Commission 
Delegated Regulation (EU) 2018/815 applicable to the consolidated financial statements included in the annual financial 
report of Societatea Energetica Electrica S.A. and its subsidiaries (“the Group”) as presented in the digital files which 
contain this audit report (“Digital Files”). 

(I) 

Responsibilities of management and those charged with governance for the Digital Files prepared in compliance with 
the ESEF  

Management is responsible for preparing Digital Files that comply with the ESEF. This responsibility includes: 

 

 

 

the design, implementation and maintenance of internal control relevant to the application of the ESEF; 

the selection and application of appropriate iXBRL mark-ups; 

ensuring consistency between the Digital Files and the consolidated financial statements to be submitted in 
accordance with IFRS Accounting Standards as adopted by the EU. 

Those charged with governance are responsible for overseeing the preparation of the Digital Files that comply with ESEF. 

(II) 

Auditor’s Responsibilities for Audit of the Digital Files 

Our responsibility is to express a conclusion on whether the consolidated financial statements included in the annual 
financial report complies in all material respects with the requirements of ESEF based on the evidence we have obtained. 
We conducted our reasonable assurance engagement in accordance with International Standard on Assurance Engagements 
3000 (Revised), Assurance Engagements Other than Audits or Reviews of Historical Financial Information (ISAE 3000) issued 
by the International Auditing and Assurance Standards Board. 

Our firm applies International Standard on Quality Management 1 (“ISQM1”), and accordingly maintains a comprehensive 
system of quality control including documented policies and procedures regarding compliance with ethical requirements, 
professional standards and applicable legal and regulatory requirements. 

5 

6 

INDEPENDENT AUDITOR’S REPORT ON 2023 CONSOLIDATED FINANCIAL STATEMENTS (IFRS-EU)2023 ANNUAL REPORTINDEPENDENT AUDITOR’S REPORT ON 2023 CONSOLIDATED FINANCIAL STATEMENTS (IFRS-EU)2023 ANNUAL REPORT 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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623

A reasonable assurance engagement in accordance with ISAE 3000 involves performing procedures to obtain evidence about 
compliance with ESEF. The nature, timing and extend of procedures selected depend on the auditor’s judgment, including 
the assessment of the risks of material departures from the requirements set out in ESEF, whether due to fraud or error. A 
reasonable assurance engagement includes: 

 

 

 

 

obtaining an understanding of the Company’s process for preparation of the digital files in accordance with ESEF, 
including relevant internal controls; 

reconciling the digital files including the marked-up data with the audited consolidated financial statements of the 
Company to be submitted in accordance with IFRS Accounting Standards as adopted by the EU; 

evaluating if all financial statements contained in the consolidated annual report have been prepared in a valid 
XHTML format; 

evaluating if the iXBRL mark-ups, including the voluntary mark-ups, comply with the requirements of ESEF. 

We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our conclusion. 

In our opinion, the consolidated financial statements for the year ended 31 December 2023 included in the annual financial 
report in the Digital Files comply in all materials respects with the requirements of ESEF. 

Răzvan Ungureanu, Audit Partner  

For signature, please refer to the original 
signed Romanian version. 

Registered in the Electronic Public Register of Financial  
Auditors and Audit Firms under AF 4866 

On behalf of: 

DELOITTE AUDIT SRL 

Registered in the Electronic Public Register of Financial  
Auditors and Audit Firms under FA 25 

The Mark Building, 84-98 and 100-102 Calea Griviței, 9th Floor, District 1 
Bucharest, Romania 
March 25, 2024 

7 

INDEPENDENT AUDITOR’S REPORT ON 2023 CONSOLIDATED FINANCIAL STATEMENTS (IFRS-EU)2023 ANNUAL REPORTINDEPENDENT AUDITOR’S REPORT ON 2023 CONSOLIDATED FINANCIAL STATEMENTS (IFRS-EU)2023 ANNUAL REPORT 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
  
 
 
624

625

STATEMENT 
OF THE MANAGEMENT

626

627

Statement of the Management

Based on the best available information, we confirm that the consolidated financial statements 

reviewed and audited for the period ended 31 December 2023 prepared in accordance with 

International Financial Reporting Standards as adopted by the European Union (“IFRS-EU”), provides 

an accurate and real image regarding the Electrica Group’s financial position, the financial 

performance and the cash flows, as required by the applicable accounting standards, and that 

this Report, prepared in accordance with art. 63 of the law no. 24/2017 on issuers of financial 

instruments and market operations and to annex no. 15 to ASF Regulation no. 5/2018 for the 

period ended 31 December 2023, comprises accurate and real information regarding the Group’s 

development and performance.

Based on the best available information, we confirm that the consolidated financial statements 

reviewed and audited for the period ended 31 December 2023 prepared in accordance with OMFP 

2844/2016 for the approval of the Accounting Regulations in accordance with the International 

Financial Reporting Standards adopted by the European Union with subsequent changes, provides 

an accurate and real image regarding the Electrica Group’s financial position, the financial 

performance and the cash flows, as required by the applicable accounting standards, and that 

this Report, prepared in accordance with art. 63 of the law no. 24/2017 on issuers of financial 

instruments and market operations and to annex no. 15 to ASF Regulation no. 5/2018 for the 

period ended 31 December 2023, comprises accurate and real information regarding the Group’s 

development and performance.

Chair of  the  Board  of Dir ector s ,
Dumitru CHIRITA

Chief  Executive Offi cer,
Alexandru-Aurelian CHIRITA

Chief  Fin ancia l Offi ce r,
Stefan Alexandru FRANGULEA

STATEMENT OF THE MANAGEMENTSTATEMENT OF THE MANAGEMENT2023 ANNUAL REPORT2023 ANNUAL REPORT