Key Figures
ELECTRICA GROUP
The most important national distribution operator, but also the electricity supplier
with the most consumers
serv
Photovoltaic project
development company -
27 MW
Electrica Furnizare S.A.
FISE Electrica Serv S.A.
Electricity and natural gas
supply company
Energy services company
Smart grid technologies
Electrica Esyasoft
Smart Solutions S.A.
CCP.RO Bucharest S.A.
Distributie Energie
Electrica Romania S.A.
Distribution Operator
Crucea Power Park SRL
Wind project development
company - 121 MW
Sunwind Energy SRL
New Trend Energy SRL
Foton Power Energy SRL
Photovoltaic project
development company -
59 MW
Photovoltaic project
development company -
77 MW
~3.98 million
~3.5 million
204,607 km
17.8 TWh (2024 (+ 4,2%))
15.48% (2024)
Users
Consumption
places
Voltage lines
Total market share
Distributed Energy
Electricty supplied on the
retail market
Electricity Distribution
Electricity Supply
17.1 TWh (2023)
16.77% (2023)
7.6 TWh (2024)
7.8 TWh (2023)
BAR: 8.2 mld RON
Commisioned Capex: RON 808 million (2024)
RON 777 million (2023)
(est. 31 dec. 2024)
Electrica Group is a key player in the energy sector, operating
in the distribution, supply, production, and energy services
segments, serving over 3.9 million users.
Sustainability reporting for the year 2024
Independent auditor’s report on the audit of the
separate financial statements
Consolidated financial statements (IFRS-EU)
Separate financial statements 2024
Independent auditor’s report on the audit of the
consolidated financial statements (OMFP 2844/2016)
Clarifications regarding the qualified opinion
expressed by the financial auditor on the
consolidated financial statements for 2024
Independent auditor’s limited assurance report on
the consolidated sustainability statement for the
financial year 2024
Consolidated financial statements (OMFP 2844/2016)
Independent auditor’s report on the audit of the
consolidated financial statements (IFRS-EU)
SUMMARY
Message from the Chairman of the Board of
Directors
Directors’ report for the year 2024
Mesajul from the CEO
006
008
010
492
558
654
306
566
736
484
646
744
Management statement
748
Message
FROM THE CHAIRMAN OF THE BOARD OF
DIRECTORS
The Board of Directors played a decisive role in overseeing and guiding the company along a path defined by responsibility,
transparency, and innovation.
Strengthening robust governance in line with the highest international standards remained a constant priority. This fundamental
pillar contributes to long-term value creation, reinforcing the trust of our shareholders and all stakeholders in the Group’s strategy.
The Board meetings served as a platform for analyzing, validating, and supporting decisions aimed at sustainable development,
with a strong focus on integrating ESG principles into our operational and decision-making model.
We encouraged initiatives designed to strengthen Electrica’s resilience and adaptability in an ever-evolving energy landscape.
A key example is the strategic partnership with EsyaSoft, marking our entry into a new segment dedicated to innovative energy
storage and grid digitalization solutions. Through this strategic direction, we actively contribute to accelerating the energy
transition, promoting innovation as a driver of growth.
In 2024, we also launched the Electrica Foundation, a clear expression of our social responsibility, focused on tackling energy
poverty and supporting vulnerable communities. Another milestone in 2024 was the celebration of 10 years since Electrica’s
listing on the Bucharest Stock Exchange and the London Stock Exchange – a special occasion to reflect on our journey and
reaffirm our commitment to transparency, performance, and active communication with investors.
At the same time, Electrica’s inclusion in the FTSE Russell international indices and the top score obtained for the fourth consecutive
year in the VEKTOR evaluation by ARIR confirm the maturity of our governance and the quality of our ongoing dialogue with the
capital market.
We believe these achievements reflect the shared vision and effective collaboration between the Board of Directors, executive
management, and the entire Electrica team. In 2024, we strengthened not only the foundation of sound governance but also our
belief that a sustainable business model is key to a secure and responsible energy future.
I thank our shareholders, partners, and the Electrica team for their continued trust and dedication. We remain firmly committed
to strengthening Electrica Group’s position in the energy transition, upholding the values that define us: trust, competence, safety,
and sustainability.
THE YEAR 2024 MARKED A PIVOTAL STAGE IN ELECTRICA GROUP’S
EVOLUTION, DISTINGUISHED BY REMARKABLE ACHIEVEMENTS
IN STRATEGIC PERFORMANCE AND A STRONG COMMITMENT TO
SUSTAINABILITY AND CORPORATE GOVERNANCE.
Mihai Diaconu
Chairman of the Board of Directors, Electrica
MESSAGE FROM THE CHAIRMAN OF THE BOARD OF DIRECTORS
MESSAGE FROM THE CHAIRMAN OF THE BOARD OF DIRECTORS
We focused our efforts and investments on key areas of our business, always looking ahead to what we are building together.
This edition of the report marks a first for the company, as it is the first to integrate both financial and non-financial performance,
highlighting our ongoing commitment to sustainability and transparency in our relationship with all stakeholders. It is a concrete
step toward the maturation of our business model and our responsibility to the economic and social environment in which we
operate.
The financial results in 2024 significantly exceeded our set objectives. Group-wide investments reached 112.5% of the planned
value, reaffirming our implementation capacity and our teams’ ability to deliver tangible results, even in a challenging economic
context. The company delivered solid financial performance, with a consolidated net profit of RON 376.5 million, surpassing the
target by over 42%. These results provide a strong foundation on which we will continue to grow the Electrica Group.
The results were also reflected in the performance of our shares on the Bucharest Stock Exchange. On the occasion of our 10-year
listing anniversary, we reached an all-time high of RON 16.30 per share. Moreover, in the past two years, Electrica’s shares have
strongly rebounded, growing by over 100% compared to the difficult period in 2022. In 2024, we also recorded a new high in terms
of share liquidity – exceeding RON 62 million in a single trading session.
A major milestone was also the record amount of non-reimbursable funding obtained for the development and modernization
of the networks managed by our distribution operator, Distribuție Energie Electrică Romania (DEER). In the past two years, we
secured around EUR 450 million - the largest amount in Romania’s energy sector - for infrastructure upgrades and improved
supply security. This includes a EUR 3.4 million PNRR grant for an energy storage project in Fântânele, which underlines our
commitment to building an innovative and sustainable energy infrastructure.
Alongside infrastructure development, we also significantly expanded our renewable energy production portfolio. The acquisition
of Foton Power Energy and New Trend Energy added photovoltaic projects of over 130 MW to our portfolio. Additionally, Crucea
Power Park’s success in the first round of the Contracts for Difference (CfD) scheme, with the “Crucea Est” wind project, strengthens
our strategic role in the green transition and ensures financial predictability for the next 15 years.
Another major recognition in 2024 came from Brand Finance, where Electrica maintained its 7th place among the most valuable
Romanian brands – the highest position reached so far. This achievement reflects not only the Group’s reputational strength but
also our collective effort to build a strong, sustainable, and respected brand.
Of course, 2024 was not without challenges – energy price volatility, inflationary pressures, and a complex economic environment
tested us once again. Yet, our teams at Electrica have proven that they can turn challenges into growth opportunities. I sincerely
thank my colleagues for the exceptional way in which they tackled every project and every obstacle.
Looking ahead, our priorities remain clear: to develop sustainable projects, to further digitalize our operations, and to strengthen
our leadership position in the energy sector. We aim for our actions to have a positive and lasting impact – for the company, for
our communities, and most of all, for all of us.
WE CLOSED THE YEAR 2024 WITH A STRONG SENSE OF
ACHIEVEMENT AND THE CONFIDENCE THAT ELECTRICA IS
CONSTANTLY EVOLVING, IN A TIME WHEN THE ENERGY MARKET
CONTINUES TO UNDERGO RAPID TRANSFORMATION.
Alexandru Aurelian Chiriță
Electrica CEO
Message
FROM THE CEO
MESSAGE FROM THE CEO
MESSAGE FROM THE CEO
Electrica Group
DIRECTORS’ REPORT
FOR THE YEAR 2024
(based on the individual and consolidated financial statements prepared in accordance with the
International Financial Reporting Standards as adopted
by the European Union) – S-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) – S-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 Code
for the 12-month period ended 31 December 2024
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
29 April 2025 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
Identification details of Electrica
16
1
Electrica 2024 Overview
18
1.1
2024 Key financial data
20
1.1.1
2024 Key financial data - S-IFRS-EU
20
1.1.2
2024 Key financial data - S-OMFP 2844/2016
21
1.2
Key events in 2024
28
1.2.1
General Meetings of Shareholders (GMS)
28
1.2.2
Decisions of the ELSA’s BoD
29
1.2.3
Other relevant events
31
1.2.4
Litigations reported to the capital marketl
34
1.2.5
Distribution segment
35
1.2.6
Supply segment
38
1.3
Subsequent events
42
1.3.1
General Meetings of Shareholders
42
1.3.2
Decisions of the ELSA’s BoD
42
1.3.3
Other relevant events
43
1.3.4
Litigations reported to capital market
43
1.3.5
Distribution segment
44
1.3.6
Supply segment
44
2
Electrica Group
46
2.1
Organizational structure
48
2.2
Mission, vision, values
50
2.3
Main elements of the Strategic Plan for the period 2024 - 2030
51
2.4
Outlook
55
2.5
Key factors, directions and significant market trends affecting the operational
results of Electrica Group
60
3
Electrica on the capital markets
64
3.1
Ownership structure
66
3.2
Shares evolution on BSE and Global depository receipts (GDRs) evolution on LSE
67
3.2.1
BSE shares
67
3.2.2
Global Depositary Receipts (GDRs) on the LSE:
69
3.3
Investor relations (IR)
71
3.4
Related parties transactions
73
3.5
Dividends policy
73
3.6
Dividend distribution
74
3.7
Own shares
75
4
Corporate Governance in ELSA
76
4.1
Corporate Governance Code
78
4.2
General Meeting of ELSA’s Shareholders
80
4.3
Shareholders’ rights
80
4.4
ELSA’s Board of Directors
81
4.5
The activity of ELSA’s Board of Directors and of its consultative committees in
2024
94
4.6
ELSA’s Executive management
102
4.7
Remuneration of the Directors and of the Executive Managers with mandate
agreements
106
4.8
Statement regarding the corporate governance “Comply or Explain”
106
4.9
Implementing action plans undertaken by signing the framework agreement
with EBRD
117
4.10
Internal audit activity report for 2024
124
5
Operating activity of Electrica in 2024
128
5.1
Operating segments
130
5.2
Fixed assets
136
Contents
12
13
ELECTRICA 2024 ANNUAL REPORT
ELECTRICA 2024 ANNUAL REPORT
5.2.1
Tangible assets - summarize key aspects of their location and main
characteristics
136
5.2.2
Tangible assets - summarize key aspects of their attrition
137
5.2.3
Investments
138
5.2.4
Aspects of ownership of tangible assets
143
5.3
Procurement
143
5.4
Sales activity
144
5.5
Personnel
149
5.6
Research and development activities
151
5.7
Significant aspects of the impact of subsidies on the capitalization of additional
related to technological consumption (NL)
154
5.8
Going concern - substantiation and working hypothesis
155
6
Electrica Financial Reporting for 2024
156
6.1
Consolidated statement of financial position
158
6.1.1
Consolidated statement of financial position- S-IFRS-EU
158
6.1.2
Consolidated statement of financial position - S-OMFP2866/2016
164
6.2
Consolidated statement of profit or loss
170
6.2.1
Consolidated statement of profit or loss - S-IFRS-EU
170
6.2.2
Consolidated statement of profit or loss - S-OMFP 2844/2016
176
6.3
Consolidated cash flow statement
182
6.3.1
Consolidated cash flow statement - S-IFRS-EU
182
6.3.2
Consolidated cash flow statement - S-OMFP 2844/2016
186
6.4
Separate statement of the financial position
190
6.5
Separate statement of profit or loss
195
6.6
Separate cash flow statement
196
6.7
Risk management
200
6.8
Description of the main features of internal control and risk management
systems in relation to the financial reporting process
215
7
Statements
218
Appendix 1 - Litigations
222
A.1
Electrica Group litigations until 2024:
222
A.1.1
Disputes with ANRE
222
A.1.2
Fiscal matter disputes
224
A.1.3
Other significant litigations (with a value higher than EUR 500 thousand)
226
A.1.4
Litigations against the Romanian Court of Accounts
236
A.1.5 Other litigations with significant impact
238
Appendix 2 - Details of the main investments of Electrica Group during 2024
251
Appendix 3 - Applicable regulatory framework
261
A.3.1
Applicable legal framework in 2024:
261
A.3.1.1 Distribution activity
261
A.3.1.2 Supply activity
274
A.3.2 Changes to the legal framework in 2025 up to the date
of current report
288
A.3.2.1 Distribution segment
288
A.3.2.2 Supply segment
290
Appendix 4 - Corporate Governance
292
A.4.1
The Board of Directors of ELSA’s subsidiaries
292
A.4.2 Executive management of ELSA’s subsidiaries
294
A.4.3 Number of shares owned by the executive managers and directors of
Electrica Group
296
A.4.4 General Meetings of Shareholders of ELSA subsidiaries
296
Appendix 5 - Table list
298
Appendix 6 - Figures list
300
Glossary
302
14
15
ELECTRICA 2024 ANNUAL REPORT
ELECTRICA 2024 ANNUAL REPORT
Ordinary Shares
GDR
ISIN
ROELECACNOR5
US83367Y2072
Bloomberg Symbol
0QVZ
ELSA:LI
Currency
RON
USD
Nominal Value
RON 10
-
Stock Market
Bucharest Stock Exchange REGS
London Stock Exchange MAIN MARKET
Ticker
EL
ELSA
•
International Financial Reporting Standards as approved by the European Union
(“IFRS-EU”)
•
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)
The individual and consolidated financial statements as of and for the period ended
31 December 2024 are audited by an independent financial auditor.
Applicable accounting standards:
Audit:
Report date: 27 March 2025
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: J2000007425408
LEI Code (Legal Entity Identifier): 213800P4SUNUM5AUDX61
Subscribed and paid share capital: RON 3,395,530,040
Reporting period: 2024 Year (period 1 January - 31 December 2024)
Main characteristics of issued shares: 339,553,004 ordinary shares of 10 RON nominal value, 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 are listed on the London Stock Exchange
(ticker: ELSA).
Identification details of Electrica
Source: Electrica
Table 1. Company details
16
17
DIRECTORS’ REPORT FOR THE YEAR 2024
DIRECTORS’ REPORT FOR THE YEAR 2024
ELECTRICA 2024 ANNUAL REPORT
ELECTRICA 2024 ANNUAL REPORT
1. ELECTRICA 2024 OVERVIEW
20
21
DIRECTORS’ REPORT FOR THE YEAR 2024
DIRECTORS’ REPORT FOR THE YEAR 2024
ELECTRICA 2024 OVERVIEW
ELECTRICA 2024 OVERVIEW
ELECTRICA 2024 ANNUAL REPORT
ELECTRICA 2024 ANNUAL REPORT
1.1
2024 Key financial data
1.1.1 2024 Key financial data - S-IFRS-EU
In 2024, the net result of the Electrica Group was a profit of RON 390 million, a result generated mainly by the
performance of the distribution segment, recording a profit of RON 723.7 million in 2024, compared to the
net profit recorded in 2023 in the amount of RON 637.8 million in the context of the increase in tariffs by 6.8%
compared to the last adjusted tariffs starting with April 2023, as well as the increase in distributed electricity
volumes by 4.2%.
For the supply segment, both in 2024 and in 2023, the effect of retail electricity prices was covered by subsidies
received from the state authorities, as a result of the application of the price capping mechanism for electricity
and natural gas, as a result of the application of Emergency Ordinance 27/2022, with subsequent amendments
and completions. The implementation of these schemes and the settlement mechanism of the amounts
granted as support to customers, ex post from the state budget to electricity suppliers, have generated cash
flow constraints, as well as uncertainties regarding the full recovery of the respective amounts by suppliers.
In this context, EFSA has adapted its medium and long-term strategy, so as 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 numerous successive and major changes in recent times.
Table 2: Key financial data for 2024 - 2021 - S-IFRS-EU
(mil. RON)
2024
2023
2022
2021
Revenue
8,995
9,817
10,010
7,179
Other operating income
1,689
3,499
2,841
196
Operational costs
(9,920)
(12,123)
(12,973)
(7,980)
EBITDA1
1,360
1,714
374
(128)
EBIT
764
1,192
(123)
(606)
Gross profit
487
898
(288)
(632)
Net profit
390
772
(240)
(553)
Sourse: Electrica
As can be seen in the graphs below, the EBITDA margin decreased by RON 353.9 mn. in 2024 compared to
2023, while the net profit margin decreased by RON 382.6 mn.
As of 31 December 2024, the Group has a capital structure with net debt position2 of RON 4,468 mn.
(31 December 2023: RON 3,835 mn., respectively 31 December 2022: RON 3,051 mn.).
Figure 1: Consolidated revenue of Electrica
Group (RON mn.) - S-IFRS-EU
Figure 3: Consolidated net profit (RON mn.) -
S-IFRS-EU
Figure 2: EBITDA (RON mn.) and EBITDA margin
(%)- S-IFRS-EU
Figure 4: Net debt (RON mn.) - S-IFRS-EU
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.i
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.
Source: Electrica
Source: Electrica
Source: Electrica
Source: Electrica
1.1.2 2024 Key financial data - S-OMFP 2844/2016
In 2024, the net result of the Electrica Group was a profit of RON 376 million, a result generated mainly by the
performance of the distribution segment, recording a profit of RON 712.7 million in 2024, compared to the
net profit recorded in 2023 in the amount of RON 486.0 million in the context of the increase in tariffs by 6.8%
compared to the last adjusted tariffs starting with April 2023, as well as the increase in distributed electricity
volumes by 4.2%.
For the supply segment, both in 2024 and in 2023, the effect of retail electricity prices was covered by subsidies
received from the state authorities, as a result of the application of the price capping mechanism for electricity
and natural gas, as a result of the application of Emergency Ordinance 27/2022, with subsequent amendments
and completions. The implementation of these schemes and the settlement mechanism of the amounts
granted as support to customers, ex post from the state budget to electricity suppliers, have generated cash
flow constraints, as well as uncertainties regarding the full recovery of the respective amounts by suppliers.
In this context, EFSA has adapted its medium and long-term strategy, so as 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 numerous successive and major changes in recent times.
9,401
9,273
8,454
609
543
542
10,010
9,817
8,995
2022
2023
2024
Revenues excl Green Certificates
Green Certificates Revenues
9,401
9,273
8,454
609
543
542
10,010
9,817
8,995
2022
2023
2024
Venituri fara Certificate Verzi
Venituri din Certificate Verzi
374
1,714
1,360
3.7%
17.5%
15.1%
2022
2023
2024
EBITDA
EBITDA Margin
(240)
772
390
-2.4%
7.9%
4.3%
2022
2023
2024
Net Result
Net Result Margin
3,051
3,835
4,468
2022
2023
2024
22
23
DIRECTORS’ REPORT FOR THE YEAR 2024
DIRECTORS’ REPORT FOR THE YEAR 2024
ELECTRICA 2024 OVERVIEW
ELECTRICA 2024 OVERVIEW
ELECTRICA 2024 ANNUAL REPORT
ELECTRICA 2024 ANNUAL REPORT
9,401
9,273
8,454
609
543
542
10,010
9,817
8,995
2022
2023
2024
Revenues excl Green Certificates
Green Certificates Revenues
1,363
1,733
1,550
13.6%
17.7%
17.2%
2022
2023
2024
EBITDA
EBITDA Margin
559
620
376
5.6%
6.3%
4.2%
2022
2023
2024
Net Result
Net Result Margin
3,051
3,835
4,468
2022
2023
2024
Essential market information:
• Electricity distribution in Romania is fulfilled mainly by four electricity distribution system operators,
regulated by ANRE;
• Each company is responsible for the exclusive distribution of electricity in the region for which it is
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;
• Electrica Group is a key player in the electricity distribution sector, both in terms of areas covered and of
number of users served;
• The estimated Regulated Assets Base (RAB) value at the end of 2024 was RON 8.2 bn (nominal terms);
• 204,607 km of electric lines - 7,606 km for High Voltage (“HV”), 47,187 km for Medium Voltage (“MV”) and
149,814 km for Low Voltage (“LV”);
• Total area covered: 97,196 km2, 40.8% of Romania’s territory;
• 3.98 mn. users (2024) for the distribution activity;
• 17.77 TWh of electricity distributed in 2024, an increase of 4.2% as compared to 2023;
• 39.7% market share for the distribution of electricity to final users in 2023 (based on distributed
quantities, according to ANRE report for 2023).
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, 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.i
4 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.
Figure 5: Consolidated revenue of Electrica
Group (RON mn.) - S-OMFP 2844/2016
Figure 8: Net debt (RON mn.) - S-OMFP
2844/2016
Figure 7: Consolidated net profit (RON mn.) -
S-OMFP 2844/2016
Figure 6: EBITDA (RON mn.) and EBITDA margin
(%)- S-OMFP 2844/2016
Source: Electrica
Source: Electrica
Source: Electrica
Source: Electrica
DISTRIBUTION SEGMENT
Table 3. Key financial data for 2024 - 2021
(RON mn.)
2024
2023
2022
2021
Revenue
8,995
9,817
10,010
7,179
Other operating income
1,689
3,499
2,841
196
Capitalised costs of intangible non-
current assets
190
19
989
-
Operational costs
(10,126)
(12,323)
(13,011)
(7,980)
EBITDA
1,550
1,733
1,363
(128)
EBIT
748
1,011
829
(606)
Gross profit
471
717
664
(632)
Net profit
376
620
559
(553)
Source: Electrica
As can be seen in the graphs below, the EBITDA margin decreased by RON 182.4 mn. in 2024 compared to 2023,
while the net profit decreased by RON 243.9 mn.
As of 31 December 2024, the Group has a capital structure with net debt position4 of RON 4,468 mn. (31
December 2023: RON 3,835 mn., respectively 31 December 2022: RON 3,051 mn.).
Figure 9: Romanian electricity distribution map
Source: Electrica
24
25
DIRECTORS’ REPORT FOR THE YEAR 2024
DIRECTORS’ REPORT FOR THE YEAR 2024
ELECTRICA 2024 OVERVIEW
ELECTRICA 2024 OVERVIEW
ELECTRICA 2024 ANNUAL REPORT
ELECTRICA 2024 ANNUAL REPORT
Source: ANRE Report for performance indicators’ monitoring
2023, Electrica
Source: ANRE Report for performance indicators’ monitoring 2023,
Electrica
Figure 11: Quantity distributed (TWh)
Figure 13: EBITDA – distribution segment
(RON mn.) - S-IFRS-EU
Figure 12: Revenues - distribution segment
(RON mn.) - S-IFRS-EU
KEY FINANCIAL INDICATORS FOR DISTRIBUTION SEGMENT
In 2024, revenues from the electricity distribution segment increased by approximately RON 298.2 mn., or
6.8%, to RON 4,709.6 mn., from RON 4,411.5 mn. in 2023 mainly from the effect generated by the increase in
distribution tariffs and volumes of distributed electricity, with a net impact of RON 316.7 mn. offset by the
decrease of RON 18.5 mn. in revenues recognized in accordance with IFRIC 12 (recognized based on the stage
of completion of the works, according to the accounting policy regarding the recognition of revenues from
construction contracts).
S-IFRS-EU: The segment’s net profit is 725.7 million RON in 2024, compared to the net profit recorded in 2023
of 637.8 million RON. Net profit is favorably influenced by the increase in revenues by RON 298.2 million in
2024 compared to the revenues recorded in 2023.
S-OMFP 2844/2016: The segment’s net profit is RON 712.7 mn. in 2024, compared to the net profit recorded in
2023 of RON 486.0 mn. Net profit is favorably influenced by the increase in revenues by RON 298.2 mn. in 2024
compared to the revenues recorded in 2023.
Figure 10: Evolution of the number of users (mn.)
Source: Electrica
Source: Electrica
Figure 15: Net debt/(cash) – distribution
segment (RON mn.) - S-IFRS-EU
Figure 14: Net Profit – distribution segment
(RON mn.) - S-IFRS-EU
Source: Electrica
Source: Electrica
Figure 17: EBITDA – distribution segment
(RON mn.) - S-OMFP 2844/2016
Figure 16: Revenues - distribution segment
(RON mn.) - S-OMFP 2844/2016
Source: Electrica
Source: Electrica
Source: Electrica
3.77
3.80
3.83
3.88
3.93
5.78
5.87
5.96
6.06
6.14
9.55
9.67
9.79
9.94
10.07
2019
2020
2021
2022
2023
Electrica
Others
17.73
17.48
18.47
17.73
17.05
27.17
26.62
27.83
26.93
26.31
44.90
44.10
46.30
44.65
43.37
2019
2020
2021
2022
2023
Electrica
Others
3,397
4,411
4,710
2022
2023
2024
28
1,436
1,579
2022
2023
2024
-491
638
724
2022
2023
2024
1,530
1,998
2022
2023
2024
1,397
3,397
4,411
4,710
2022
2023
2024
1,455
1,772
2022
2023
2024
1,017
Figure 19: Net debt/(cash) – distribution
segment (RON mn.) - S-OMFP 2844/2016
Figure 18: Net Profit – distribution segment
(RON mn.) - S-OMFP 2844/2016
Source: Electrica
Source: Electrica
308
486
713
2022
2023
2024
1,397
1,530
1,998
2022
2023
2024
26
27
DIRECTORS’ REPORT FOR THE YEAR 2024
DIRECTORS’ REPORT FOR THE YEAR 2024
ELECTRICA 2024 OVERVIEW
ELECTRICA 2024 OVERVIEW
ELECTRICA 2024 ANNUAL REPORT
ELECTRICA 2024 ANNUAL REPORT
Figure 21: EBITDA - supply segment (RON mn.)
Figure 23: Net debt/(Cash) - supply segment
(RON mn.)
Figure 20: Revenues - supply segment
(RON mn.)
Figure 22: Net profit - supply segment (RON mn.)
Source: Electrica
Source: Electrica
Source: Electrica
Source: Electrica
KEY FINANCIAL INDICATORS FOR SUPPLY SEGMENT
Revenues from electricity and natural gas supply decreased in 2024 by approximately RON 954.7 mn., or 13.1%,
to RON 6,325.6 mn. from RON 7,280.3 mn. in 2023.
Quantities of electricity supplied decreased in 2024 by approximately 2.6%, 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 a decrease in 2024, reaching a negative EBITDA of
166.8 mn. RON from a positive EBITDA of 305.5 mn. RON recorded in 2023, and at the same time a decrease in
the EBITDA margin from 4.2% in 2023 to (2.6%) in 2024.
The supply segment has a net debt position that increased compared to 2023 by approx. RON 12.2 mn.,
reaching RON 1,904.6 mn. in 2024.
GROUP LIQUIDITY
At Group level, the total liquidity available in cash and overdraft limits as of 31 December 2024 was RON 1,082
mn., mainly due to the lower level of use of the overdraft limits in the distribution and supply segments. The
level of cash on 31 December 2024 was RON 454 mn., increasing compared to the previous reporting period.
.
After the approval of the financing ceiling of up to RON 1.5 bn. for Electrica Furnizare through EGMS Decision no.
1 from 21 March 2022, increased up to RON 1.7 bn. through EGMS Decision no. 3 from 9 June 2022 and up to RON
0.85 bn. through EGMS Decision no. 4 from 22 November 2023, the Group took all the necessary formalities
with its partner banks to contract supplementary lines of credit to ensure the financing. Moreover, the cash
pooling structures allow the Group to optimize the use of liquidity between companies and to quickly cover
unforeseen liquidity needs.
The level of receipts, payments and liquidity is monitored continuously and closely at the level of each
company of the Group and consolidated in order to detect any deviation in time.
Essential market data (according to ANRE Report for December 2024)
• 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 91 suppliers, (last resort suppliers active on Retail Market competitive
segment included) from which 82 are relatively small (<4% market share);
Electrica Furnizare (EFSA) has a total market share of 15.48%; and on the competitive market has a share of
10.36% (ANRE Report - December 2024). By comparison, in 2023 Electrica Furnizare had a total market share of
16.77% and a competitive market share of 10.45% (ANRE report - December 2023).
SUPPLY SEGMENT
2,755
3,391
1,567
8,186
7,280
6,326
10,941
10,671
7,892
2022
2023
2024
Other Revenues
Revenues
305
(167)
4.8%
4.2%
-2.6%
2022
2023
2024
391
(167)
EBITDA
EBITDA Margin
261
98
(338)
3.2%
1.4%
-5.3%
2022
2023
2024
Net Result
Net Result Margin
1,449
1,892
1,905
2022
2023
2024
335
109
147
188
377
251
478
641
454
304
117
195
336
123
1,051
598
938
627
507
226
342
523
500
1,301
1,076
1,578
1,082
Cash, cash equivalents and deposits
Available overdraft limits
30.Dec.22
31.Mar.23
30.Jun.23
30.Sep.23
31.Dec.23
31.Mar.24
30.Jun.24
30.Sep.24
31.Dec.24
28
29
DIRECTORS’ REPORT FOR THE YEAR 2024
DIRECTORS’ REPORT FOR THE YEAR 2024
ELECTRICA 2024 OVERVIEW
ELECTRICA 2024 OVERVIEW
ELECTRICA 2024 ANNUAL REPORT
ELECTRICA 2024 ANNUAL REPORT
1.2 Key events in 2024
During 2024 the following main events took place:
1.2.1. General Meetings of Shareholders (GMS)
On 26 January 2024, the OGMS took place, physically
and online through the voting platform https://
electrica.voting.ro/, with a quorum of 90,0675% of the
total voting rights and 88.2849% of the share capital
of the Company, which approved the election of
the following members of the Company’s Board of
Directors by applying the cumulative vote method:
• 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 were
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.
Also, Electrica shareholders approved with the
majority of votes cast by the shareholders present or
represented:
• Establishing the term of office of the members
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 voting 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
voting method, respectively the one approved by
the Resolution of the Ordinary General Meeting of
Shareholders no. 1 of 9 February 2018.
On 25 April 2024, the OGMS and EGMS took place,
physically and online through the voting platform
https://electrica.voting.ro/,
with
a
quorum
of
90.6464% of the total voting rights and 88.8435%
of the share capital of the Company, which mainly
approved:
• The Separate Financial Statements for the
year 2023 prepared in accordance with OMFP
2844/2016;
• The Consolidated Financial Statements for the
year 2023 prepared in accordance with OMFP
2844/2016 and IFRS-EU;
• The distribution of the net profit for the financial
year 2023, respectively the total gross dividend
value of RON 40 mn. gross dividend per share of
RON 0.1178 and date of payment of the dividends
for the year 2023 as 21 June 2024;
• The income and expenses budget of Electrica for
financial year 2024, at individual and consolidated
level;
• The filing of a civil damage action in court for
the liability of Mr. George Cristodorescu, former
director of the company;
• The cancellation of the shares owned by Electrica
(treasury shares) obtained thorough stabilization
after the IPO from June 2014, respectively the
reduction of the share capital with the number of
the cancelled own shares and the amendment of
Articles of Association to reflect these operations.
Also, EGMS also rejected the approval of a ceiling of
up to EUR 300 mn. for one or more bond issues.
On 8 November 2024, the EGMS took place,
physically and online through the voting platform
https://electrica.voting.ro/,
with
a
quorum
of
87.9981% of the total voting rights respectively of the
Company’s share capital, which mainly approved:
• The ceiling of up to EUR 500,000,000 for a bond
issue or several subsequent issues of green bonds
or sustainable linked bonds, or a mix thereof, for
the period 2025-2026;
• The conclusion of a syndicated credit facility
in the amount of RON 3,100,000,000 and the
establishment of related guarantees, from a
consortium of commercial banks, with ELSA and
DEER as Borrowers, ELSA being also guarantor for
EFSA and DEER;
• Approval of the investment of EUR 38 million in the
„Satu Mare 3” photovoltaic park with a projected
capacity of 59 MW through the wholly owned
company New Trend Energy S.R.L.;
• Approval of the investment of EUR 49.5 million in
the „Bihor 1” photovoltaic park with a projected
installed capacity of 77.5 MW through the wholly
owned company Foton Power Energy S.R.L.
On 11 December 2024 the EGMS took place, physically
and online through the voting platform https://
electrica.voting.ro/, with a quorum of 88,2396% of
the total voting rights respectively of the Company’s
share capital, which mainly approved:
• the guarantee to be issued by ELSA for a term
loan in the amount of up to EUR 200,000,000 or
the equivalent in RON that DEER will contract from
the EIB to finance the investment plan for the
period 2025-2027;
• the ratification of the signing of the Addendum
to the Facility Agreement dated 3 November
2021, in the amount of RON 450,000,000, signed
between ELSA, as Borrower, and Erste Group
Bank S.A. and Raiffeisen Bank S.A., as Lenders
as well as the mandate of the BoD to take, on
behalf of and for ELSA, within the approved value
limits, all necessary measures regarding the
Facility Agreement dated 03 November 2021. The
aforementioned addendum was signed on 31
October 2024.
1.2.2. Decisions of the ELSA’s BoD
• On 22 January 2024, ELSA’s Board of Directors
decided to extend the duration of the mandate
of Mr. Alexandru-Aurelian Chirita, as interim CEO,
under the same conditions, until 31 March 2024
(inclusively).
• During its meeting on 12 February 2024, ELSA’s BoD
elected Mr. Dumitru Chirita as the Chair of the
Board of Directors until 31 December 2024.
• 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
31 December 2024.
• During the same meeting from 12 February 2024,
the Board of Directors decided the following
composition for its consultative committees, until
31 December 2024:
• The Strategy and Corporate Governance
Committee: Mr. Marian Cristian Mocanu –
Chair; Mr. Dumitru Chirita – Member; Mr.
Dragos Valentin Neacsu – Member.
• The Audit and Risk Committee: Ms. Valentina-
Elena Siclovan – Chair; Mr. Adrian-Florin Lotrean
– Member; Mr. Ion Cosmin Petrescu – Member.
30
31
DIRECTORS’ REPORT FOR THE YEAR 2024
DIRECTORS’ REPORT FOR THE YEAR 2024
ELECTRICA 2024 OVERVIEW
ELECTRICA 2024 OVERVIEW
ELECTRICA 2024 ANNUAL REPORT
ELECTRICA 2024 ANNUAL REPORT
• The Nomination and Remuneration Committee:
Mr. Adrian-Florin Lotrean – Chair; Mr. Marian
Cristian Mocanu – Member; Mr. Ion Cosmin
Petrescu – Member.
• The Climate Governance and Public Affair
Committee: Mr. Dragos Valentin Neacsu –
Chair; Ms. Valentina-Elena Siclovan – Member;
Ms. Georgiana Bogasievici – Member.
• On 6 March 2024, ELSA’s BoD convened ELSA’s
OGMS and EGMS on 25 April 2024. On 25 March
2024, ELSA’s BoD supplemented the agenda
of the OGMS and EGMS meetings convened
on 25 April, according to the requests of the
Ministry of Energy, as a representative of the
shareholder the Romanian State.
• On 25 March 2024, ELSA’s Board of Directors
decided to extend the duration of the mandate
of Mr. Alexandru-Aurelian Chirita, as CEO, under
the same conditions, until 31 December 2024
(inclusively).
• On 19 September 2024, Electrica announced that
Mr. Dumitru Chirita resigned from the Chair of the
BoD position starting 19 September 2024 and as a
member of the BoD starting 19 October 2024.
• On the same date, Electrica’s BoD elected Mr.
Ion-Cosmin Petrescu as Chair of the BoD, starting
from 19 September 2024 until 18 October 2024.
• On 19 September 2024, ELSA’s BoD convened the
EGMS on 8 November 2024.
• On 21 October 2024, Electrica’s BoD elected Mr.
Ion-Cosmin Petrescu as Chair of the BoD, starting
from 21 October until 20 November 2024. Also,
the BoD appointed Mr. Mihai Diaconu as interim
member of the Board of Directors, starting on
21 October 2024 and until 30 April 2025 or until
the date of the next Ordinary General Meeting
of Shareholders (OGMS), on the vacant position.
• ELSA’s BoD decided the following composition
for its Strategy and Corporate Governance
committee, for the period starting 21 October
2024 and until 20 November 2024: Marian Cristian
Mocanu – chair, Ms. Valentina Siclovan – member,
Mr. Dragos Valentin Neacsu – member.
• On the same day, the BoD convened the EGMS on
11 December 2024 and approved the consolidated
value of the Investment Plan (Commissioning) of
the subsidiary DEER for the 5th regulatory period
2025-2029 (RP5).
• On 29 October 2024, ELSA’s BoD elected Mr. Mihai
Diaconu as Chair of the Board of Directors for the
period starting 29 October 2024 until 31 January
2025 and change of the Composition of the
Strategy and Corporate Governance committee
thus: Mr. Marian Cristian Mocanu – chair, Mr. Mihai
Diaconu – member, Mr. Dragos Valentin Neacsu
– member.
• On 20 November 2024, the BoD convened the
Ordinary and Extraordinary General Meetings of
Shareholders on 5 February 2025.
• On 26 November 2024, ELSA’s BoD decided the
appointment of Mr. Alexandru-Aurelian Chirita
as CEO starting from 01 January 2025 until
31 December 2026 (inclusively). Also, during
the same meeting, the BoD decided on the
appointment of Mr. Stefan-Alexandru Frangulea
as CFO starting 28 February 2025 until 31
December 2026 (inclusively).
• On 17 December 2024, ELSA’s BoD approved the
increase of the financial part of the consolidated
value of the annual investment plan (CAPEX) of
its subsidiary DEER for 2024.
• On 17 December 2024, the BoD approved the
reviewed Group’s General Strategy - Electrica
2030, as well as the revised Sustainability Strategy
of Electrica Group for 2025-2030.
1.2.3. Other relevant events
• On 19 January 2024, Electrica received from
the European Bank for Reconstruction and
Development (EBRD) a notification according to
which, on 15 January 2024, the EBRD disposed
of a number of 205,505 Electrica shares, falling
below the 5% threshold provided by article 71 of
Law 24/2017 on issuers of financial instruments
and market operations, thus reaching a holding
of 4.9502% of the voting rights of Electrica
calculated on the basis of all the shares to which
voting rights are attached, even if for the shares
own shares (6,890,593 own shares) their exercise
is suspended, in accordance with the provisions
of art. 71 (1) of Law no. 24/2017 regarding issuers
of financial instruments and market operations.
• On 14 February 2024, Electrica published the
preliminary key operational indicators for Q4
2023.
• On 15 February 2024, Electrica published a current
report regarding the final settlement of a litigation
against ANRE.
• On 15 February 2024, Electrica announced the
attraction of new non-reimbursable financing of
EUR 171 mn. through the Modernization Fund.
• On 26 February 2024, Electrica published a current
report regarding the action filed by Electrica
against DEER, following the implementation of
measures ordered by Court of Accounts (CCR).
• On 28 February 2024, Electrica announced the
official admission of Electrica shares in FTSE
Russell indices, starting 18 March 2024.
• On 29 February 2024, Electrica published the
Preliminary Consolidated Financial Statements
for the year 2023, prepared in accordance with
OMFP 2844/2016.
• On 6 March 2024, Electrica published the audited
Consolidated
Financial
Statements
for
the
year 2023, prepared in accordance with OMFP
2844/2016, and the audited Separate Financial
Statements for the year 2023, together with the
Independent Auditor’s Reports and the BoD
Reports for the year 2023.
• On 25 March 2024, Electrica published the audited
Consolidated Financial Statements for the year
2023, prepared in accordance with IFRS-EU, as well
as a current report regarding the Restatement
of the 2022 IFRS Financial Statements and the
differences between the Financial Statements for
the year 2023 prepared in accordance with IFRS-
EU and OMFP 2844/2016.
• On 25 March 2024, Electrica published the 2024
CAPEX Plan, at the Group level.
• On 10 April 2024, Electrica published a current
report regarding the final settlement of file no.
2229-2-2017 against Court of Accounts.
• On April 11, 2024, Electrica announced the
signing of an EPC (Engineering, Procurement &
Construction) contract for the development of the
„Satu Mare 2” photovoltaic project. The contract
involves the implementation of the photovoltaic
park with an installed capacity of 27 MWp, the
110 kV electrical substation for the beneficiary,
as well as their operation and maintenance for
a period of 3 years from commissioning, with a
total contract value of approximately EUR 19.3
million (excluding VAT).
• On 25 April 2024, Electrica published a statement
regarding the effect of the resolutions of the EGMS
from 25 April 2024 on the dividend payment date
for the year 2023, specifically the postponement
of dividend payments until the legal deadlines
related to the cancellation of own shares are met.
• On 30 April 2024, Electrica published a current
report regarding the final settlement of DEER
case no. 375/1285/2021. More information on the
subject can be found in the “Litigations” chapter.
• On
30
April
2024,
Electrica
published
the
preliminary key operational indicators for Q1 2024.
• On 2 May 2024, Electrica published a current
report regarding the estimated impact of the
final settlement of DEER case no. 375/1285/2021.
• On
15
May
2024,
Electrica
published
the
32
33
DIRECTORS’ REPORT FOR THE YEAR 2024
DIRECTORS’ REPORT FOR THE YEAR 2024
ELECTRICA 2024 OVERVIEW
ELECTRICA 2024 OVERVIEW
ELECTRICA 2024 ANNUAL REPORT
ELECTRICA 2024 ANNUAL REPORT
Consolidated condensed financial statements
(unaudited) for Q1 2024, according to IFRS-EU,
together with the Q1 2024 BoD Report.
• On 16 May 2024, Electrica published a current
report regarding the resolution of the Bucharest
Court of Appeal in file no. 1927/2/2019 (EFSA
litigation).
• On 16 May 2024, Electrica announced the signing
of a Memorandum of Understanding with Esyasoft
Holding Ltd.
• On
4
June
2024,
Electrica
published
an
announcement regarding the 2023 dividends
payment methods.
• On 10 June 2024, Electrica published a current
report regarding the settlement in file 107-1285-
2024 – DEER – CCR.
• On 28 June 2024, Electrica published a current
report regarding the clarifications on the 2023
dividend payment date.
• On 11 July 2024, Electrica published a current
report regarding the approval by the Bucharest
Trade Registry (ORC) of the request to reduce
the share capital as a result of the cancellation
of own shares, which also contained information
regarding the dividend payment date for the year
2023, specifically 22 July 2024.
• On 22 July 2024, Electrica announced that on 19
July 2024, the Financial Supervisory Authority
(ASF) issued the Certificate of Registration
of Financial Instruments (CIIF) related to the
reduction of share capital by canceling own
shares. On the same date, the Central Depository
also operated the reduction of Electrica’s share
capital by canceling ELSA’s own shares.
• On 31 July 2024, Electrica announced that
together with EsyaSoft Holding Ltd. of Dubai, UAE,
part of the International Holding Company (IHC)
group, Electrica will establish a joint-venture
company (joint-venture) that will have as its
object of activity the production and operation
of advanced green energy technologies for the
domestic and European markets.
• On 2 August 2024, Electrica announced the
attraction of new non-reimbursable funding
worth EUR 200 million through the Modernization
Fund. Thus, DEER had attracted approximately
EUR 450 million from the Modernization Fund up
to that point, representing about 38% of the total
funding already signed under the Modernization
Fund, with another 12 projects submitted.
• On 9 August 2024 Electrica published preliminary
key operating indicators for Q2 2024.
• On September 17, 2024, Electrica announced the
attraction of EUR 3.4 million through the National
Recovery and Resilience Plan (PNRR) for energy
storage in a project in Fantanele, Mures County,
with an installed energy storage capacity of
69.93 MWh. The total value of the project is
approximately EUR 21.8 million (excluding VAT),
of which the non-reimbursable funds represent
about 20% of the total eligible value.
• On 19 September, Electrica announced the
renunciation of Mr. Dumitru Chirita to the director
and Chair of the BoD positions, and the election of
Mr. Ion Cosmin Petrescu as the new Chair of the
BoD until 18 October 2024.
• On 30 October, Electrica published Q3 2024
Preliminary
Key
Operational
Indicators
• On 15 November, Electrica published the summary
of results and the Q3 2024 BoD Report.
• On 22 November 2024, Electrica announced
the signing of the official documents for the
establishment of the new company, Electrica
Esyasoft Smart Solutions SA, which is 25% owned
by Societatea Energetica Electrica SA and 75%
by Esyasoft Enterprise Holding RSC LTD. This
company will focus on smart grid technologies
(including storage solutions - batteries and
network
digitalization).
• On
26
November
2024,
by
Decision
no.
251/26.11.2024, the Commission for the Examination
of Foreign Direct Investments (CEISD) authorized
the creation of a new legal entity jointly owned by
Societatea Energetica Electrica S.A. and Esyasoft
Enterprise Holding RSC Ltd
• On 17 December 2024, Electrica announced that
its subsidiary, Crucea Power Park SRL (CPP),
which is developing the Crucea Est wind farm
project, was among the winners in the first round
of the State Aid Scheme Auction in the form of
Contracts for Difference (CfD), in the call from 18
November 2024. CPP obtained this status for its
onshore wind power generation project, with an
allocated installed capacity of 54.0 MW (the total
projected installed capacity being 138 MW), at a
price of EUR 77.3250/MWh. The projected installed
capacity of the park developed by CPP is up to 138
MW, and the energy storage capacity will have an
installed power of 15 MW / 60 MWh.
• On 17 December 2024, Electrica announced that
DEER had contracted EUR 200 million from the
European Investment Bank (EIB) to finance DEER’s
investment plan for the period 2024-2026, with
the aim of modernizing its electricity distribution
network. The EIB loan is guaranteed by ELSA.
• On 23 December 2024, Electrica published an
announcement regarding the approval by ANRE
of the specific tariffs for the electricity distribution
service for its subsidiary, Societatea Distributie
Energie Electrica Romania S.A. (DEER). The ANRE
order also approved the values of DEER’s annual
investment plans corresponding to PR5, broken
down by funding sources, as well as the minimum
mandatory annual investment values in PR5.
The complete list of current reports can be found on
the ELSA website at:
https://www.electrica.ro/en/investors/results-and-
reports/current-reports/
Corporate image
As a result, mainly, of PR & Communication actions,
Electrica remained in 7th place in the ranking of the
most valuable Romanian brands in 2024. This is the
highest position occupied by the company so far.
Within the same ranking, the market value of the
brand is estimated at 237 million EUR.
Regarding transparency, Electrica reaffirmed its
commitment to stakeholders by publishing the
Sustainability Report for the eighth consecutive year.
It provides detailed information about all companies
within the Electrica Group and can be accessed on
the company’s official website https://www.electrica.
ro/en/investors/results-and-reports/sustainability-
reports/. Also, all these reports were the basis for the
assessment of aspects in the field of sustainability.
Certification
In October 2024, at the level of S.E. Electrica S.A., the
surveillance audit dedicated to the Integrated Quality
- Environment - HSE - Information Security - Energy
Management System was carried out in accordance
with the requirements of the SR EN ISO 9001:2015,
SR EN ISO 14001:2015, SR ISO 45001:2018, SR EN ISO/
IEC 27001:2018 and SR EN ISO 50001:2019 reference
standards. The audit was carried out by the external
certification body SRAC Cert affiliated with IQNet,
with no major non-conformities identified, but only
areas for improvement.
Also S. „FISE ELECTRICA SERV” – S.A. underwent during
2024 the recertification audit of the Integrated
Management System, implemented in accordance
with the requirements of the reference standards ISO
9001:2015, ISO 14001:2015 and ISO 45001:2018. The audit
was carried out by the external certification body
SRAC Cert.
During 2024, the companies “Distributie Energie
Electrica Romania” and “ELECTRICA FURNIZARE SA”
underwent the recertification audit of the Integrated
Management System Quality - Environment - SMM in
accordance with the requirements of the reference
standards SR EN ISO 9001:2015, SR EN ISO 14001:2015
and SR ISO 45001:2018 respectively. The audits were
carried out by the external certification body SRAC
Cert.
Acquisition of shares in subsidiaries
On July 15, 2024, Electrica announced the completion
of the acquisition of New Trend Energy S.R.L., which
is developing the „Satu Mare 3” photovoltaic project,
with a projected capacity of 59 MW. The project is in
the „ready-to-build” phase.
On September 12, 2024, Electrica announced the
completion of the acquisition of Foton Power Energy
SRL, which is developing the „Bihor 1” photovoltaic
34
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DIRECTORS’ REPORT FOR THE YEAR 2024
DIRECTORS’ REPORT FOR THE YEAR 2024
ELECTRICA 2024 OVERVIEW
ELECTRICA 2024 OVERVIEW
ELECTRICA 2024 ANNUAL REPORT
ELECTRICA 2024 ANNUAL REPORT
project, with a projected installed capacity of 77.5
MW. The project is in the „ready-to-build” phase.
On October 15, 2024, Crucea Power Park S.R.L. became
a subsidiary of Electrica, as a result of Electrica’s
ownership of 60% of the share capital. On February
7, 2025, Electrica announced the completion of the
acquisition of Crucea Power ParkS.R.L., which is
developing the „Crucea Est” wind project with an
installed capacity in turbines of up to 138 MW and a
projected electricity storage capacity of 60 MWh (15
MW x 4h), located in Constanta County, in the area of
Crucea and Pantelimon. The project is in the „ready-
to-build” phase.
Transactions with related parties
During 2024, Electrica published 34 current reports
according to art. 108 of Law no. 24/2017 regarding
the transactions concluded in this period between
DEER – OPCOM, EFSA – OPCOM, DEER – EFSA, EFSA –
Transelectrica, EFSA – SNN, EFSA – Hidroelectrica and
DEER - Hidroelectrica, whose cumulated value in the
case of each announcement exceeds the threshold
of 5% of ELSA’s net assets, calculated on the basis
of Electrica’s latest available individual financial
statements.
Also, two more current reports were published,
regarding the details of the MACEE contracts
concluded by DEER and EFSA and the internal treasury
agreements concluded by ELSA with EFSA, DEER and
Electrica Serv.
On 31 January 2024, ELSA published the Auditor’s
report regarding the transactions reported in H2 2023
according to Art. 108 Law 24/2017 (R).
On 30 July 2024, ELSA published the Auditor’s report
regarding the transactions reported in H1 2024
according to Art. 108 Law 24/2017 (R).
All these current reports and auditor’s reports can
be found on ELSA’s website, at this address: https://
www.electrica.ro/en/investors/results-and-reports/
current-reports-art-108/
For more details, see chapter 3.4 of this report.
1.2.4. Litigations reported to the capital market
• Case no. 2790/1/2023 (former no. 360/2/2015)
https://www.electrica.ro/wp-content/
uploads/2024/02/ELSA_EN_CurrentReport_
ANRE_Litigation_2790-1-2023-ex-360-2-
2015_15Feb2024_LSE.pdf
• Case no. 107/1285/2024
https://www.electrica.ro/wp-content/
uploads/2024/02/ELSA_EN_CurrentReport_
DEER_CCR_26Feb2024_LSE.pdf
https://www.electrica.ro/wp-content/
uploads/2024/06/ELSA_EN_Current_report_
Settlement_file_DEER_CCR_10Jun2024_LSE.pdf
• Case no. 2229/2/2017*
https://www.electrica.ro/wp-content/
uploads/2024/04/ELSA_EN_Current-
Report_Final-Settlement-of-File-2229-2-
2017_10Apr2024_LSE.pdf
• DEER Case no. 375/1285/2021
https://www.electrica.ro/wp-content/
uploads/2024/04/20240430_ELSA_EN_Raport-
curent-ds-DEER-nr.-375-1285-2021_LSE.pdf
https://www.electrica.ro/wp-content/
uploads/2024/05/20240501_ELSA_EN_
CurrentReport_Impact_DEER_file_no375-1285-
2021_LSE.pdf
• EFSA Case no. 1927/2/2019
https://www.electrica.ro/wp-content/
uploads/2024/05/20240516_ELSA_EN_
CurrentReport_ANRE_Litigation_EFSA_first_
instance.pdf
For more details, see Appendix 1 of this report.
1.2.5. Distribution segment
For
the
distribution segment,
the
significant
changes in the Romanian legislation were detailed at
Appendix 3.1.1. Based on these changes, the expected
effects refer to:
• GEO no. 119/2022 for the amendment and
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 2022—31 March 2023, as well as for the
modification and completion of some normative
acts in the field of energy - in force starting from 1
September 2022: (i) the additional costs with the
purchase of electricity, made between 1 January
2022 and 31 August 2023, in order to cover the NL,
compared to the costs included in the regulated
tariffs, are capitalized quarterly, RRR = 50% of
the RRR applicable to each periods; GEO no.
119/2022 was approved and amended by Law no.
357/2022, application period 1 January 2023 – 31
March 2025.
• GEO no. 153/2022 for the amendment and
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 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 GEO no. 119/2022 for amending and
supplementing the GEO no. 27/2022 regarding
the measures applicable to final customers in the
electricity and natural gas market in the period
1 April 2022-31 March 2023, as well as for the
modification and completion of some normative
acts in the field of energy: (i) in the period 1 January
2023-31 March 2025 the mechanism for the
centralized purchase of electricity is established;
(ii) OPCOM is designated as the sole purchaser, it
buys the electricity from the planned producers
and sells the purchased electricity to the electricity
suppliers who have contracts concluded with
final customers, the electricity transport and
system operator and the electricity distribution
operators, for covering the own technological
consumption of the networks operated by them.
DO can buy from OPCOM through an annual/
monthly mechanism 75% of the amount of NL
forecasted and validated by ANRE at the price of
450 RON/MWh, and producers can sell to OPCOM
through an annual/monthly mechanism 80% of
the amount produced forecasted and validated
by ANRE and Transelectrica at the price of 450
RON/MWh. GEO no. 153/2022 was approved and
amended by Law 206/2023.
• Emergency Ordinance no. 32/2024, amending
and supplementing GEO no. 27/2022, and for the
period April 1, 2024 - December 31, 2024, MACEE
was amended, so that producers voluntarily sell
to OPCOM at the price of 400 RON/MWh and DSOs
buy electricity from OPCOM at the price of 400
RON/MWh.
• ANRE order no. 129/2022 for the approval of the
Methodological Norms for the recognition in
tariffs of the additional costs with the purchase
of electricity to cover the own technological
consumption compared to the costs included
in the regulated tariffs, application period 1
January 2022 – 31 August 2023 - (i) the quarterly
capitalization of the additional costs with NL
compared to the costs included in the regulated
tariffs; (ii) the capital costs related to the year
2022 are recognized in a distinct component
related to the additional cost with NL applicable
starting on 01 April 2023, outside the 7% limitations
imposed for tariff increases; (iii) the recognized
NL price for 2022 will be equal to the reference
price calculated as an average among network
operators, increased by 5%; (iv) the additional
cost with NL capitalized in 2023 will be included
in the separate NL component applicable in 2024.
By ANRE Order no. 104/2023, the application period
e_
ent-
DEER-
act_
E_
36
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DIRECTORS’ REPORT FOR THE YEAR 2024
DIRECTORS’ REPORT FOR THE YEAR 2024
ELECTRICA 2024 OVERVIEW
ELECTRICA 2024 OVERVIEW
ELECTRICA 2024 ANNUAL REPORT
ELECTRICA 2024 ANNUAL REPORT
was changed until March 31, 2025, according to
the changes approved by Law no. 357/2022.
• 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
with the following changes: (i) The year 2024
represents the transition period from the fourth
period (RP4) to the fifth regulatory period (RP5);
(ii) The target income of the DO for the year 2024
is established according to the Methodological
Norms that complete the Methodology (Annex
1^1); (iii) In 2024, ANRE approved for DEER regional
distribution tariffs established on the basis of a
single regulated income and a single NL target;
(iv) The forecast for NL price for the year 2024 is
calculated as a weighted average considering
75% the price approved by MACEE and 25% the
DAM price for May 2023; (v) The value of the RAB
achieved on 31 December 2023 will be calculated
in 2024, and the DO will transmit to ANRE, until
31 May 2024, the net accounting value of the
fixed assets included in the RAB on 31 December
2023; (vi) The regulated rate of return for the
year 2024 is maintained at the value of 6.39%;
(vii) The inflation corrections related to RP4 will
be calculated in 2024 and added to the target
income of 2025, which represents the first year
of RP5; (viii) The deadline for submitting to ANRE
the documentation substantiating the tariffs and
the investment program for the year 2024 was 15
August 2023.
• The methodology for setting distribution tariffs
was approved by ANRE Order no. 67/17.09.2024
and entered into force on September 20, 2024.
The main changes:
Controllable Operation and Maintenance (OPEX),
Controllable (DC) and Uncontrollable (CNC)
Costs
• The CC and the efficiency factor will be
established based on the OPEX study conducted
by ANRE with an external consultant.
• PEX is not subject to efficiency and will adjust
annually with the inflation rate (IR) and by 5%,
correlated with the real wage growth index cf
CNSP.
• The R&D costs will not be subject to efficiency
and can be requested by the OD, the maximum
value being RON 5 million per total RP5.
• Expenses related to contracts with related
parties for the representation of DSOs,
regulatory consulting services, and expenses
corresponding to the profit attributed to any
subcontracted parties are not recognized.
• The inflation correction between the achieved
and the forecasted IR applies to the PEX, only if
the IR difference is positive.
Investment expenditure and RAB
• RAB RP5 will be inflated with the forecasted RI
used in the calculation of RRR;
• Investments such as updates of computer
applications or databases will not be recognized
in the RAB, they will be recognized as special
expenses within the CNC.
• Endowment assets will be recognised in the RAB
if the OD demonstrates their effectiveness.
Incentive RRR
• The following RRR incentives will no longer be
granted: 1% new grid investments and 1% for
PCIs.
• For investments in networks carried out within
projects co-financed by non-reimbursable EU
funds, an incentive of 0.5% will be granted.
• An incentive of 1% is granted only for the value
that exceeds the mandatory minimum value
for investments made in RED;
• RRR will increase or decrease by 0.5%, depending
on the level of performance achieved by the OD
regarding the development of a smart grid;
• RRR decreases by 2% for investments in
endowments (administrative buildings and
tangible and intangible assets), which will be
PIF in RP5. By exception, the RRR is not reduced
in the case of the equipment actually used
for the works in the RED and which lead to the
maintenance and/or improvement of the RED
parameters.
Costs for the purchase of electricity to cover the
network losses (NL)
• The NL targets will decrease linearly by the end
of RP5 by at least 15% in LV and by 6% in MV;
• The NL recognized price will not exceed the
weighted average of the prices realized by the
DSO, plus 5%;
• In times of crisis on the energy market, declared
by normative acts, the NL price made by the
DSO will be recognized.
Revenues and tariffs
• The regulated income consists of 2 components:
non-NL income and NL income;
• The non-NL revenue is linearized, based on
which distribution tariffs capped at 10% are
established;
• NL revenue is the basis for setting NL tariffs,
which are not capped and are recovered from
consumers (TDCPT) and producers;
• The pole rental activity is regulated and included
in the income of the distribution service.
• Regulated rate of return on invested capital for
RP5 (RRR) - ANRE approved Order no. 55/6.08.2024
establishing RRR RP5, in the amount of 6.94%.
• Draft Order on the approval of the Methodology
for
establishing
performance
indicators
in
relation to the development of a smart grid to
promote energy efficiency and the integration of
electricity produced from renewable sources. The
Methodology proposes:
• Establishing a set of indicators to monitor:
• the quality of the electricity distribution/
transmission
service;
• integration of renewable electricity generation
(E-RES),
storage
facilities
and
flexibility
services;
• the level of digitalisation of electricity grids.
• The evaluation of the performance of each
network operator (RO) is made through a
composite performance indicator, determined
as a weighted average of the monitored
indicators.
• The monitoring of the indicators and the
determination of the composite performance
indicator is done annually, starting with 2027.
• In 2024-2025, the composite indicator is
determined as a weighted average based
on quality indicators, those of integration of
production, storage facilities and flexibility
services, and the weighting coefficients are
equal
• For
indicators
reflecting
the
degree
of
digitalisation of networks, it is proposed to set
targets to be achieved by ROs.
• The thresholds against which the RRR increases
or decreases by 0.5% depending on the
value achieved in one year of the composite
performance
indicator:
• if it is higher than 90%, the RRR is increased
by 0.5%;
• if it is less than 70%, RRR decreases by 0.5%.
• The modification of the Investment Procedure by
ANRE Order no. 6/2023 considers the recognition
of DO investments in energy storage and
production for control and NL: (i) inclusion in the
category of justifiable investments of energy
production installations from renewable sources
for NL supply and control consumption from
the station; (ii) the inclusion in the category of
necessary investments of electricity storage
facilities; (iii) the possibility for DO to own storage
facilities, by way of exception from the provisions
of the Energy Law (art. 46^1 para. (1)), only with
prior approval by ANRE; (iv) establishing the
method of calculating the economic efficiency
of investments in production/storage, to be
recognized by ANRE.
38
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DIRECTORS’ REPORT FOR THE YEAR 2024
DIRECTORS’ REPORT FOR THE YEAR 2024
ELECTRICA 2024 OVERVIEW
ELECTRICA 2024 OVERVIEW
ELECTRICA 2024 ANNUAL REPORT
ELECTRICA 2024 ANNUAL REPORT
• ANRE Order no. 3/2024 for the approval of
the Procedure regarding the approval of the
investments
of
the
transport
and
system
operator and of the concessionaire distribution
operators, which consist of electricity production
facilities from renewable energy sources located
in their own electrical transformation stations,
for approval they must be fulfilled the following
conditions: (i) the electrical energy produced
is consumed exclusively to supply the own
consumption of the electrical station where the
installation is located; (ii) 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 commissioning,
of the level of benefits achieved in relation to
the costs included in the network tariffs. In the
situation where 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. 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
according to this procedure are considered
additional investments to the investment plan
for the year 2023, in the endowment category
and are reported until the 31 May 2024 in a
table dedicated to this type of investment.
TSO/DSO
must
first
obtain
the
exemption
provided
for
in
ANRE
Order
no.
99/2023.
• Law no. 158/2023 for the amendment and
completion of the Electricity Law no. 123/2012
provides that for the supply of equipment and
aggregates for irrigation and for economic
operators that carry out activities included in
CAEN codes 01 Agriculture, hunting and related
services and CAEN 10 Food industry, DSO has
the obligation to ensure the financing and
realization of the design and execution works of
the connection installation of the non-domestic
final customer, whose length will be up to 2.5 km
located on the territory and for the connection
installations that exceed the length of 2.5 km, the
financing of the difference from the network falls
on the responsibility of the non-domestic final
customer. The counter value of the design and
execution works of the connection installation
will be recognized in the tariff by ANRE, the
resulting assets become the property of OD
from the moment the connection installation is
installed. The applicant, a future non-domestic
end 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 date
of the PIF, otherwise he is obliged to return to
the OD the value of the design and execution
of the connection installation, proportionally
with the period remaining unused, gradually, in
accordance with ANRE regulations.
• The regulation approved by ANRE Order no.
99/2023 allows granting to the TSOs and DSO
the right to own, develop, manage or operate
electrical energy storage facilities (ISE) that
represent fully integrated network components
(CRCI). 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.
1.2.6. Supply segment
The regulatory framework has undergone significant
changes over the last decade, in terms of full
liberalization of electricity and natural gas market,
supply
and
distribution
activities
unbundling,
implementation
of
renewable
energy
support
scheme, support for electricity consumers and price
capping for final consumers.
Starting 1 November 2021, against the background of
the increase in energy and natural gas price on the
international and national markets, the energy crisis,
as well as the effects caused by these increases
among population in Romania, a series of support
schemes have been applied to electricity and gas
consumers, by establishing compensation and
capping schemes between 1 November 2021 and 31
March 2025.
Therefore, the year 2024 was under the influence of
the following features:
1) Price cap for household and non-household
consumers according to GEO no. 27/2022, with
subsequent
amendments
and
additions;
2) Limitation of average acquisition price considered
for determining the amounts to be recovered from
state budget to 1,300 RON/MWh initially, lowered to
900 RON/MWh in present - amendment according
to Law no.206/2023 (approving GEO 153/2022), and
starting April 1, 2024 at 700 RON/MWh (according
to GEO 32/2024);
3) Centralized electricity purchasing mechanism
(MACEE) provides that OPCOM, as the sole
purchaser, purchases electricity from producers
(electricity producers with an installed capacity
equal to or greater than 10 MW) and sells the
purchased electricity to: electricity suppliers who
have contracts with end customers, the electricity
transmission system operator and electricity
distribution system operators to cover their
own technological consumption. For contracts
concluded until March 31, 2024, the price paid by
OPCOM to energy producers, for the quantities of
electricity sold, was 450 RON/MWh, and OPCOM’s
selling price to economic operators was also 450
RON/MWh (OPCOM has the right to charge market
participants tariffs/commissions at the level of
the costs recorded by organizing the centralized
electricity purchasing mechanism). In order to
carry out the transactions, OPCOM will organize a
monthly annual procurement procedure, as well
as an additional monthly procurement procedure
for the quantities of electricity to be delivered in
the following month; the annual and monthly
quantities of electricity are firm obligations of
electricity producers and economic operators for
all settlement intervals each month (contracts
are concluded by signing, within a maximum of 3
working days);
Starting with April 1, 2024, the MACEE price was
changed, decreasing from 450 RON/MWh to
400 RON/MWh. At the same time, producers can
voluntarily sell electricity through MACEE.
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 that each supplier
had in the gas year 2022-2023 (EFSA market share
was 0.82%). The storage obligation for the 2024-
2025 cycle was established by ANRE by decision
no. 360/28 Feb 2024 at a volume of 219 GWh, an
obligation that was fulfilled by 31 October 2024,
according to legal regulation;
5) The obligation of natural gas producers to sell at
a price of 150 RON/MWh the quantities necessary
to supply household customers/thermal energy
producers has changed starting with April 1, 2024,
respectively the selling price of natural gas has
decreased from 150 RON/MWh to 120 RON/MWh.
In accordance with the provisions of GEO no.
32/2024 from April 1, 2024:
• the rule regarding the payment of 40% of the
amount related to the cap within 10 days from
the date of submission of the application - in
the new way of working for the payment of the
amount related to the cap will be 10 days from
the date on which ANRE confirms to ME/ANPIS
the correctness of the data „within the limits of
the amounts available in the Energy Transition
Fund and other legally established amounts”;
• suppliers receive guarantees of origin for the
quantity contracted through MACEE;
• the percentage for the accepted profit for the
purpose of overtaxing trading activity increases
to 10%;
• during the period April 1, 2025 – March 31, 2026,
suppliers can prepare offers for end customers
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DIRECTORS’ REPORT FOR THE YEAR 2024
DIRECTORS’ REPORT FOR THE YEAR 2024
ELECTRICA 2024 OVERVIEW
ELECTRICA 2024 OVERVIEW
ELECTRICA 2024 ANNUAL REPORT
ELECTRICA 2024 ANNUAL REPORT
only if the purchase covers at least 50% of the
consumption needs of the portfolio held;
• the
natural
gas
supply
component
was
increased from 12 RON/MWh to 15 RON/MWh
for non-FUI customers, and for natural gas
customers taken over as a last resort, from 13.5
RON/MWh to 15 RON/MWh.
Additionally, on July 29, 2024, ANRE amended the
Guide for completing the data to be uploaded to the
ANRE portal for the settlement from the state budget
of the amounts related to the price capping for
final customers, applicable from January 1, 2024 for
electricity. The main changes consist of recognizing
the quantity for which the settlement is made, namely
the consumption invoiced for the month of analysis,
and the method of allocating imbalances based on
the share of consumption made by each category
of customers in the portfolio held (eligible and FUI,
including the wholesale market). This algorithm for
allocating acquisition costs significantly impacts the
full recovery of the costs recorded by suppliers.
On December 23, 2024, Law no. 316/2024 approving
GEO no. 32/2024 and through which the procedure
for regularizing the volumes of electricity/natural
gas for which settlement was requested was
introduced, respectively until March 31, 2026. The
regularization of the amounts settled from the state
budget by electricity and natural gas suppliers will
be carried out, after the transmission to ANRE, for
each month of the period and for each category of
customers benefiting from the capped final price, of
the information regarding the quantities of energy
invoiced for the months of consumption during the
application period, as a result of changes to the
amounts already settled from the state budget.
The categories of customers to whom the electricity
capping was applied in 2024:
• household customers - tranche <100 KWh/
month - maximum price 0.68 RON/KWh, tranche
100-300 KWh/month - with a distinct estimate
of the volume exceeding 255 KWh/month -
respectively the price level capped at 0.80 RON/
KWh and with a maximum price of 1.3 RON/KWh;
• non-household customers - divided distinctly
into
the
category
of
customers
benefiting
from capping for 85% of consumption with a
price capped at 1.0 RON/KWh, the category of
customers benefiting from capping for 100% of
consumption, price capped at 1.0 RON/KWh and
the rest of the companies at a maximum price of
1.3 RON/KWh.
The categories of customers to whom the natural
gas capping was applied in 2024:
• household customers – maximum price capped
at 0.31 RON/KWh;
• non-household
customers
–
maximum
price capped at 0.37 RON/KWh for an annual
consumption of up to 50 GWh.
The compensated amounts are settled by the
National Agency for Payments and Social Inspection
(“NAPSI”) for household consumers and by the
Ministry of Energy for non-household consumers.
Trading on the competitive wholesale market
is
transparent,
public,
centralized
and
non-
discriminatory. Participants on the wholesale market
can trade electricity based on bilateral contracts
concluded on dedicated markets.
According to the provisions of GEO no. 27/2022,
with subsequent amendments and completions,
the duration of application of the Capping support
scheme is until March 31, 2025.
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.
Electricity price
The increase in the percentage for the profit accepted
when surtaxing trading activity, as well as the fact
that MACEE has become a voluntary market, led to
an increase in the number of sales offers initiated
by large producers (Hidroelectrica, Nuclearelectrica
and CE Oltenia).
The increase in prices in the DAM and the reduction
in the volumes offered for sale in MACEE (up to their
total absence) influenced the increase in trading
prices in the forward markets, above the limit of 450
RON/MWh.
Due to the changes recorded in recent years on the
global energy market (including in the EU), each
member state of the European Union had to modify
its legislative framework of the energy sector in order
to protect the interests of civil society, 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.
For the supply segment, in 2024 the effect of retail
electricity prices was covered by subsidies settled by
the state authorities, following the application of the
mechanism for capping electricity and natural gas
prices for final customers according to GEO 27/2022,
as subsequently amended and supplemented. The
manner of implementing these schemes and the
mechanism for settling the amounts granted as
support to customers, ex post from the state budget
to electricity suppliers, are likely to generate cash flow
constraints, as well as uncertainties regarding the
full recovery of the respective amounts by suppliers.
In this context, EFSA has adapted to these changes,
so as to manage their impact on the company’s
activities in a responsible and sustainable manner
in the context of a regulatory framework that has
undergone numerous successive and major updates.
Subsidies to be received
As of 31 December 2024, the estimated amount for
subsidies to be received from the Ministry of Energy
is RON 1,956.9 mn. (December 31, 2023: RON 2,595.6
mn.), and from the National Agency for Payments
and Social Inspection is RON 19.8 mn. (December
31, 2023: RON 19.0 mn.). Of the amount of subsidies
receivable from the Ministry of Energy, the amount
of RON 1,304.9 mn. (December 31, 2023: RON 1,528.7
mil.) represents uncollected claims that have been
submitted to the state authorities and RON 652.0
mn. (December 31, 2023: RON 1,085.9 mn.) represents
claims that have not yet been submitted to the state
authorities by December 31, 2024 and December 31,
2023, respectively.
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ELECTRICA 2024 ANNUAL REPORT
1.3 Subsequent events
Below are presented the relevant events that took place at the Group level in the period between 31 December
2024 and the date of the present report.
1.3.1. General Meetings of Shareholders
On February 5, 2025, the OGMS and EGMS took place
physically and online, through the platform https://
electrica.voting.ro/, with a quorum of 88.6024% of
the total voting rights, respectively of the Company’s
share capital in the case of the OGMS and 88.5738% of
the total voting rights, respectively of the Company’s
share capital, for the EGMS, which approved, mainly:
• the approval of the EUR 253 million investment
in the „Crucea Est” wind farm, with an installed
capacity in turbines of up to 138 MW and a
projected electricity storage capacity of 60 MWh
(15 MW x 4h), located in Constanta county, in the
area of Crucea and Pantelimon (project in the
„ready-to-build” phase) through the company
fully owned at the date of this report by Crucea
Power Park SRL, as well as the granting by ELSA of
a loan to the associate of the company Crucea
Power Park SRL, in the amount of up to EUR
253,000,000, in order to finance the investment
works necessary for the completion and operation
of the „Crucea Est” wind power plant;
• amendment of article 5 par. (2) and (3) of the
Articles of Association of the Electrica S.A. Energy
Company, in the sense of updating the main CAEN
code and updating and completing the CAEN
codes related to the secondary activities of the
company, according to the new legal regulations.
Election of Mr. Mihai Diaconu, as a member of
the Board of Directors of the Company to fill the
vacant position, following the resignation of Mr.
Dumitru Chirita. The term of office of the elected
director will be equal to the period remaining until
the expiration of the term of office related to the
vacant position, namely until January 26, 2028;
• appointment of the company Deloitte Audit
S.R.L. as auditor of Electrica S.A. regarding the
sustainability reporting/sustainability statement
prepared in accordance with the requirements of
Directive (EU) 2022/2464 for a contract duration
of 2 years, respectively for the financial years
2024 and 2025.
1.3.2. Decisions of the ELSA’s BoD:
During the meeting of January 29, 2025, the ELSA
Board of Directors elected Mr. Mihai Diaconu as
Chairman of the Board of Directors starting with
February 1, 2025, for the duration of his mandate
as director and established the composition of the
Board of Directors Committees until December 31,
2025. The ELSA Board of Directors also abolished the
positions of vice-chairmen of the Board starting with
January 29, 2025.
1.3.3. Other relevant events
On January 31, 2025, the second 4-year mandate of
the Executive Director of the Distribution Department,
Ms. Livioara Sujdea, effectively ended upon reaching
its term.
On 6 March 2025, Electrica informed the investors
regarding the identification of inconsistencies in
the payment processes at the level of its subsidiary
Electrica Serv, with a financial impact no higher than
EUR 1 mn. at the time. Besides the notification of the
competent authorities and of the financial auditor
and the thorough internal control, the company’s
economic director was revoked from office, and
the mandate contract of the general manager
was suspended by the consensus of the parties
for a period of 30 days until the clarification of the
situation and the executive management has been
reorganized to ensure operational continuity and
strengthen internal control mechanisms, in order to
be able to prevent such situations in the future.
Acquisiton of shares in subsidiaries
On February 7, 2025, ELSA acquired the remaining
shares up to 100% of the share capital of Crucea
Power Park S.R.L.
At the same time, based on the mandate granted by
EGMS ELSA through EGMS Resolution no. 1/05.02.2025,
the General Meeting of the Associates of the Crucea
Power Park S.R.L. company approved the investment
project carried out by Crucea Power Park S.R.L.
„Construction of a wind farm, medium voltage
electrical network, electrical park transformation
station, 110 KV underground network, land enclosure
and connection to SEN (transformation station
(110KV/400KV),
LEA400KVA
connection,
Network
strengthening works, Installation of electrical energy
storage capacity” - in Crucea and Pantelimon
communes, Constanta county (Crucea Est wind
project), with a total investment value of up to EUR 253
mn. without VAT and the start of the implementation
of the investment.
Transactions with related parties
After December 31, 2024, Electrica published 7
more current reports, according to art. 108 of Law
no. 24/2017, regarding the transactions concluded
between DEER – OPCOM, EFSA – OPCOM, DEER – EFSA,
EFSA – TEL, EFSA-SNN.
All these current reports, as well as those of the
auditor, can be found on the ELSA website at https://
www.electrica.ro/en/investors/results-and-reports/
current-reports-art-108/.
On January 30, 2025, Electrica published the Auditor’s
Report regarding the transactions reported in H2
2024 according to Art. 108 of Law 24/2017 (R).
For more details, see chapter 3.4 of this report.
1.3.4. Litigations reported to capital market
On January 22, 2025, ELSA announced that on January
21, 2025, both ELSA and DEER filed administrative
litigation actions with the Bucharest Court of Appeal
against the National Energy Regulatory Authority
(ANRE) for the partial annulment of ANRE Order no.
97/2024.
https://www.electrica.ro/wp-content/
uploads/2025/01/ELSA_EN_Current-report_
Annulment-ANRE-Order-97-2024_22Jan2024_LSE.
pdf
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ELECTRICA 2024 ANNUAL REPORT
1.3.5. Distribution segment
For the distribution segment, subsequent significant
changes to the Romanian legislation have been
detailed in Annex 3.2.1. Based on these changes, the
expected effects relate to:
• ANRE Order no.1/2025 regarding the modification
and completion of the Framework Conditions for
the realization of the implementation calendar of
the intelligent electricity metering systems at the
national level approved by ANRE Order no. 177/2018
with subsequent changes and additionse:
• modifying and supplementing the existing
provisions to ensure compliance with the
conditions - framework with the provisions of
art. 66 paragraphs (5) and (7) of Law 123/2012;
• introduces provisions to create conditions
so that the SMI realized are able to reach the
performance criteria provided in terms of the
reliability and accuracy of the transmission
and valorization of the measurement and
instrumentation data collected and transited
through the system elements;
• increasing the accuracy and relevance of the
monitoring of the SMI implementation process
by
updating
the
corresponding
annexes;
detailed
explanations
of
the
monitored
indicators and parameters were carried out;
provisions were introduced for the preparation
of annual monitoring reports in a unitary and
sufficiently detailed manner to ensure visibility
on the development of the SMI implementation
process;
• substantiating the proposals to change the
SMI implementation calendar in a unitary way
by introducing annex no. 6 to the conditions -
framework that includes reference framework
structures for the preparation of supporting
memoranda and cost-benefit analyzes that
substantiate the requests to change the SMI
implementation
calendar;
• replacing the phrase „users integrated in
SMI” with „places of consumption/production
and consumption integrated in SMI” and
reformulating references to integration in SMI
so that it refers to places of consumption/
production and consumption; the reference to
users is made only in relation to information,
rights and obligations;
• the inclusion of provisions to ensure the
access of users whose places of consumption/
production and consumption are integrated in
SMI, to unvalidated consumption data, in near
real time, in accordance with the provisions of
the Law.
1.3.6. Supply segment
For the supply segment, subsequent significant
changes in Romanian legislation have been detailed
in Appendix 3.2.2. Based on these changes, the
expected effects refer to:
According to the provisions of GEO no. 5/2025
regarding the measures applicable to final customers
in the electricity market during the period 1 April 2025-
30 June 2025, respectively the measures applicable
to final customers in the natural gas market during
the period 1 April 2025-31 March 2026, as well as for
the amendment and completion of some normative
acts in the energy field with subsequent amendments
and completions, the duration of application of the
support scheme through Capping is until 31 March
2025 - the period of application of the support
scheme (capping type) is 3 months for electricity,
respectively 1 April 2025 - 30 June 2025 and one year
for natural gas, respectively 1 April 2025 - 31 March
2026.
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 2024
and the date of this report are presented in Appendix
A.3.2.
2. ELECTRICA GROUP
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2.1 Organizational structure
The Electrica Group is one of the main distributors and suppliers of electricity on the Romanian market.
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. 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, EFSA
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 services
to third parties and various services to the companies in the group (car rental, building rental, etc.);
• Sunwind Energy S.R.L. („SWE”), is developing the photovoltaic project „Satu Mare 2” with a designed
installed capacity of 27 MW, located near Satu Mare and became subsidy on 21 March 2022 as a result of
ELSA owning 60% of shares. On 24 March 2023, ELSA bought the remaining shares up to 100%;
• New Trend Energy S.R.L. („NTE”), develops the photovoltaic project „Satu Mare 3”, with a designed capacity
of 59 MW, located near Satu Mare and became subsidy on 27 May 2022 as a result of ELSA owning 60% of
shares. On 12 July 2024, ELSA bought the remaining shares up to 100%;
• 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. On 12 September 2024, ELSA bought the remaining shares up to 100%;
• 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 and became subsidy on 15 October 2024 as a result of ELSA
owning 60% of shares.
Table 4. ELSA’s subsidiaries
Subsidiary
Activity
Sole
registration
code
Head
% shareholding
as at 31 December
2024
Distributie Energie
Electrica Romania
S.A. („DEER”)
Electricity distribution in
geographical areas Transilvania
Nord, Transilvania Sud and
Muntenia Nord
14476722
Cluj-Napoca
99.99999929%
Electrica Furnizare
S.A. (“EFSA”)
Electricity and natural gas supply
28909028
Bucharest
99.9998444099934%
Electrica Serv S.A.
(“SERV”)
Services in the energy sector
(maintenance, repairs,
construction)
17329505
Bucharest
99.99998095%
Sunwind Energy S.R.L.
(“SWE”)
Production of electricity
42910478
Bucharest
100%
New Trend Energy
S.R.L. (“NTE”)
Production of electricity
42921590
Bucharest
100%
Foton Power Energy
S.R.L. (“FPE”)
Production of electricity
43652555
Bucharest
100%
Crucea Power Park
S.R.L. (“CPP”)
Production of electricity
25242042
Constanta
60%
Source: Electrica
Table 5. ELSA’s associates
Associate
Activity
Sole
registration
code
Head
% shareholding
as at 31 December
2024
Electrica Esyasoft
Smart Solutions S.A.
Manufacturing of batteries
50993644
Bucharest
25%
Source: Electrica
Electrica Esyasoft Smart Solutions S.A. was registered at the Bucharest Trade Registry Office (owned 25% by
Societatea Energetica Electrica S.A. and 75% by Esyasoft Enterprise Holding RSC LTD) on December 5, 2024,
which will focus on intelligent network technologies (including storage solutions - batteries and digitization
of networks).
serv
Electrica Furnizare S.A.
FISE Electrica Serv S.A.
Electrica Esyasoft
Smart Solutions S.A.
CCP.RO Bucharest S.A.
Distributie Energie
Electrica Romania S.A.
Sunwind Energy SRL
New Trend Energy SRL
Foton Power Energy SRL
Crucea Power Park SRL
Electricity and natural gas
supply company
Energy services company
Smart grid technologies
Distribution Operator
Photovoltaic project
development company -
27 MW
Photovoltaic project
development company -
59 MW
Photovoltaic project
development company -
77 MW
Wind project development
company - 121 MW
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Table 6. Long term investments owned by ELSA
Company
Activity
Sole
registration
code
Head Office
% shareholding
as at 31 December
2024
CCP.RO
Bucharest S.A.
(„CCP.RO”)
Financial brokerage activities, with the
exception of insurance activities and
pension funds (risk management through
derivative products on the energy market)
41850416
Bucharest
5.92%
Source: Electrica
• 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 three
processes of increase of the share capital of CCP.RO, processes in which ELSA did not participate, ELSA’s
shareholding decreased successively to 7.72%, 7.42% and 5.92% respectively, processes carried out on the
basis of the approvals of the CCP.RO EGMS of 29 May 2023, 3 April 2024 and 4 September 2024.
2.2 Mission, vision, values
The organizational identity of the Electrica Group is defined by:
Mission:
Our mission is to supply, distribute and produce energy, focusing on excellence in infrastructure and services
to meet the needs of customers and communities. We are dedicated to diversifying and innovating our range
of services, developing energy production and storage capacity, and optimizing operations with advanced
digital technologies.
Vision:
The number 1 company in Romania in customer preferences for integrated energy services, offering complete
solutions for supply, distribution, energy production and related services.
Values:
Trust – We are the partner you can rely on, now and in the future;
Competence - We build with skill. We are proud of the role that our work gives us in society;
Safety - We care about the safety of our employees, collaborators and the communities in which we work;
Sustainability - Our solutions are long-term and friendly to the environment and people.
2.3 Main elements of the Strategic Plan for the period
2024 – 2030
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 Investors
> Strategy overview > Main elements of the Electrica Group Strategy for the period 2024-2030 – document
published in December 2024
The main strategic objectives assumed for the Group’s General Strategy are:
• Development of energy production and storage capacity
Electrica aims to expand its energy production and storage capacity, focusing on renewable sources and
innovative solutions:
− Installation of 1,000 MW of capacity from solar and wind sources by 2030;
− Implementation of advanced technologies to streamline production;
− Develop a storage capacity of 900 MWh by 2030 to support the integration of renewables;
− Analysis of solutions for predictable in-belt production and advanced storage, including the use of
hydrogen.
• Development and modernization of distribution infrastructure
For the integration of renewable sources and grid optimization, Electrica provides:
− Full automation of transformer stations (100%) and transformer substations (15%) by 2030;
− Implementation of a smart grid for monitoring and managing energy flows;
− Investments of RON 3.7 bn. in the next 5 years, according to the 10-year development plan.
• Diversifying the services offered to customers
Electrica aims to introduce a wide range of services for B2B and B2C customers:
- Launching packages for energy efficiency, smart home solutions and electric vehicle infrastructure;
- Regional expansion into at least one new market by 2030.
• Operational optimization
Directions such as:
− Creation of a performance management program;
− Developing an integrated feedback system for customers;
− Implementation of predictive maintenance solutions through digital technologies.
• Digitalization and cybersecurity
Electrica plans to digitize most processes (80% by 2030):
− Automating customer interaction and using AI;
− Strengthening cybersecurity through integrated strategies and the use of advanced technologies.
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• Skills development and employee retention
The focus is on:
− Professional
training
programs
and
collaborations
with
the
academic
environment;
− Realigning
the
organizational
culture
for
better alignment with the company’s values.
• ESG Practices(Environmental, Social,
Governance)
Electrica is stepping up its efforts towards
sustainability:
− Reducing the carbon footprint and promoting
renewable energy;
− Creating a fair working environment and
implementing community initiatives;
− Adopting
best
corporate
governance
practices and implementing a robust ethics
program.
These
measures
demonstrate
Electrica’s
commitment
to
a
sustainable
future,
based
on innovation and efficiency. In addition to the
traditional areas of interest, namely electricity
distribution, electricity and natural gas supply
and energy services, there is a high interest in the
development of new activities, based on innovative
technology, while continuing the monitoring and
analysis of growth opportunities through mergers
or acquisitions. Also, a closer relationship with
customers is pursued, based on the development of
skills, but also on an offer of products and services in
line with their needs.
Also, an important role will be played by optimizing
IT&C support functions and aligning with industry-
specific trends and solutions. In this context,
beyond the digitization of processes and their
integration into IT platforms, the development of
smart grids, the integration of smart meters at the
pace of their implementation plan, support for the
operationalization of prosumers, etc., are provided
in the distribution area. In the supply area, the
development of a customer-friendly interface, the
automation of contracting, reporting and invoicing
processes and data exchange with all distributors in
Romania are critical elements supported by IT&C in
order to ensure strategic advantages to the Group’s
business segments.
The corporate governance framework continues
to be improved, with the close follow-up of the
Corporate Governance Action Plan established
together with the EBRD since 2014. The establishment
of the Climate Governance and Public Policy
Committee was approved in order to prepare the
necessary framework for the implementation of
initiatives that contribute to the achievement of the
EU objective of zero greenhouse gas emissions by
2050 and to ensure the long-term resilience of the
companies within the Group, in the light of potential
structural changes in the business environment,
resulting from climate change.
From a process-oriented culture to a result-oriented
and customer-centric culture, through leadership
and improving employee satisfaction, we aim to
realign the culture with the vision, mission and core
values of the organization to achieve the strategic
objectives proposed in the 2024-2030 horizon.
We are committed to cultivating a culture that
embraces diversity, we remain committed to creating
the
most
equitable
and
inclusive
workplaces,
advancing the representation of diversity at every
level of the organization.
By translating overall strategic objectives into
specific objectives and initiative plans, at the level
of each subsidiary, the organization adapts to
market conditions, customer expectations and the
rapid pace of technology so as to deliver value
consistently.
Distribution segment
In the Distribution segment, the organizational
transformation
process
initiated
in
2017
was
consolidated by the legal merger of the three
Distribution Operators of the Group in 2020, under the
umbrella of Distributie Energie Electrica Romania SA
(DEER). The post legal merger integration facilitated
the adaptation and improvement of processes and
technology according to the new strategy (horizon
2019-2023) and the program of measures related to
the integration.
The current strategy, approved last December, is
based on three main pillars: sustainable growth of the
company’s value, transformation and sustainability
through the implementation of ESG principles
and organisational excellence programmes, and
efficiency
through
increased
network
security,
digitalisation and improved business resilience.
The long-term strategy is designed to position us at
the forefront of the national energy transition and
contribute to achieving our 2030 and 2050 targets,
not only responding to today’s challenges but also
anticipating the future of the energy sector.
Strategic
objectives
at
Group
level
include
diversifying renewable energy sources, with a focus
on generation and storage, to contribute to the
transition to a green economy and to offer a variety
of services such as energy efficiency solutions and
exploring regional growth opportunities.
Considering the market context and unpredictable
situations, adaptability is a key element of the long-
term strategy. Thus, in the Distribution segment,
we aim to develop smart grids and increase their
flexibility to meet the needs of consumers and
to integrate electric vehicles. We aim to increase
network security, accelerate the digitisation process
and improve business resilience to face future
market challenges.
As a result of the implementation, as of 1 January 2022,
of the new unified target organization chart, whereby
all structures in the area of strategic activities (asset
management,
energy
management,
integration
program
management,
IT&C,
strategic
project
management), financial and support activities have
been brought together under a single coordination
at the level of the company resulting from the
merger - Distributie Energie Electrica Romania SA
(DEER), in the coming years will continue the process
of adaptation and continuous improvement of
processes and supporting technology, as defined
by the approved Strategy for the distribution
segment. As a result of the implementation of the
organisational transformation plan as of 1 February
2023, a number of strategic objectives have been
pursued, such as:
• simplification and structuring of the decision-
making chain by branches of activity;
• specialisation and professionalisation of human
resources in key activities;
• reducing the NL by creating a well-structured
organisational branch so that there are no
decision-making or operational bottlenecks;
• corporate
cultural
transformation
of
the
organisation,
focused
on
efficiency
and
performance, ensuring business sustainability;
• retention of highly skilled workforce;
• human resources concentration, development
and specialisation;
• accelerating the adoption of best practices
and
new
technologies,
bringing
increased
transparency and reduced monitoring costs;
• increasing
financial
and
operational
performance and keeping within ANRE regulated
costs.
Within the strategy there is a strong focus on the
implementation
of
ESG
(Environmental,
Social,
Governance) principles and the development of
organisational excellence programmes. In view of
the geopolitical crisis in 2022, which has led to a
steep rise in energy prices, we are also focusing on
streamlining operational costs and securing funding
sources for future investments.
Ultimately, our strategy is a response to changes in
the energy sector and market needs, and the need
for continuous adaptation and innovation remains
at the heart of our actions.
The regulatory framework approved for the fifth
regulatory period stimulates investments in the
network, mainly in terms of the development of a
smart grid that promotes energy efficiency and the
integration of energy produced from renewable
sources, based on a set of indicators to be approved
by ANRE.
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To finance investments in the Distribution segment,
investment financing mechanisms will be optimised,
using both own sources and European funding
programmes,
which
provide
opportunities
for
upgrading networks and transforming them into
smart grids, which will be reflected both in improved
network
resilience
and
increased
operational
efficiency.
Supply segment
At the end of 2023, the Electrica Group established
the main strategic directions for the period 2024-
2030. Thus, the strategic objectives related to
the supply segment that stem from the group’s
strategy are: diversification of services, large-scale
implementation of ESG, digitalization, innovation and
operational
excellence.
In the period 2024-2030, EFSA aims to become a
leader in offering a superior digital experience to
customers. In this regard, the focus will be on process
automation, end-to-end digitalization of customer
interaction on online platforms, development of the
online store, development of the internal platform
and training and development of digital skills.
The main areas of action are: personalization and
flexibility, by offering customizable tariff plans
and options for consumers depending on lifestyle
and specific needs; strategic partnerships with
companies in complementary fields of education
and awareness (through constant concern for the
development and promotion of educational content
on topics such as energy efficiency, energy saving
and environmental impact, as well as enrollment in
community involvement actions on the same topics).
Services segment
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 costs;
• creation of a structure of qualified personnel
for the construction of photovoltaic power plant
assembly works;
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 culture
within Electrica Group, by moving from the reactive
stage to the integrity stage, by internalizing the
ethical standards and the values of the organization,
understanding the ethics role as a value enhancing
factor and providing a permanent internal control
system
which
involves
the
entire
company’s
personnel.
The CSR (Corporate Social Responsibility) activites
still remain very important for the Electrica Group,
with multiple key areas being supported, with
hundreds of projects registered annually to benefit
from Electrica’s support.
2.4 Outlook
Electrica Group operates in a key area of the
economy and carefully monitors the national and
international context in order to be able to make the
best decisions in the coming period and to respond
to short and medium-term challenges.
The efforts already started to achieve the strategic
objectives of the Electrica Group will continue, namely,
the development of energy production and storage
capacity, the development and modernization of
the distribution infrastructure, the diversification
of
services
offered
to
customers,
operational
optimization, digitalization, the development of
skills and employee retention, the development and
implementation of ESG practices.
Considering the energy policies developed at both
EU and national level, as well as the international
context of the energy markets, the following trends
are expected to characterize on medium and long
term the local electricity market:
• Competition between players on the electricity
supply market in terms of diversifying the
portfolio of products offered to customers with
a focus on the value-added products offered
(especially energy efficiency) and digital services
offered (mobile applications, invoices and online
payments, expanding customer service through
chat solutions);
• In
the
area
of
electricity
distribution,
the
regulatory framework for the fifth period focuses
on the remuneration of distribution operators,
taking into account investments in the network,
especially in terms of the development of a smart
grid that promotes energy efficiency and the
integration of energy produced from renewable
sources.
• Taking into account the significant reflection of the
level of prices on the energy market in operators’
costs, separate tariff components were approved
through the RP5 regulatory methodology whereby
network operators recover the cost of purchasing
electricity to cover NL and other costs.
• An element that affects and will continue to
significantly affect the profitability of distribution
companies is the increase in the purchase price
of NL, a situation which was partially regulated
by the entry into force of: (i) 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, (ii) 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
energy
field,
(iii)
EMERGENCY
ORDINANCE no. 119/2022 for the amendment and
completion of GEO no. 27/2022 regarding the
measures applicable to end customers in the
electricity and natural gas market in the period
1 April 2022 - 31 March 2023, as well as for the
modification and completion of some normative
acts in the 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 the field of energy, ANRE approved by ANRE
Order no. 129/2022 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;
• Regulation
(EU)
2022/1854,
regarding
an
emergency intervention to address the problem
of high energy prices, provides for a maximum
threshold of 180 Euro/MWh for solar, nuclear,
hydro, wind and lignite production, incomes
above this threshold will be collected by the state;
• Energy
generation
technologies
will
force
energy distributors to adapt their processes
and strategies regarding the development and
modernization of networks and to offer solutions
to independent producers, given the exponential
increase in the number of prosumers, active
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participants in the energy market; in this context,
significant investments are needed to improve
the
infrastructure,
both
transmission
and
distribution. The high price of electricity in recent
years, but also the uncertainty of maintaining the
electricity price cap, has increased consumers’
interest in independently producing part of the
energy consumed, which has accelerated trends
in this regard. The significant reduction in the
costs of photovoltaic technologies represents
a development opportunity for smaller-scale
generation projects, especially in the domestic
area;
• On the long term, full electric vehicles, light
commercial
vehicles
and
electrification
of
railways
are
expected
to
increase
the
consumption of electricity in the transportation
sector;
• Future development of technologies will support
energy efficiency policies such as:
• Development of transmission and distribution
networks,
including
smart
grid
and
smart
metering;
• End-use energy efficiency (thermal integrity of
buildings, lighting, electric appliances, motor
drives, heat pumps etc.);
• The smart metering implementation will offer
complex
tariffs
options
to
the
consumers,
detailed information regarding the consumption
profile, which might lead to increased flexibility
and demand reduction during peak periods.
Thus, the consumers shall be better informed and
involved in decision-making process, as active
participants. The smart metering implementation
pace depends on the implementation calendar
adopted at national level;
• The development of the transmission and
distribution infrastructure and long-distance
interconnection will become a necessity. The
electricity market target model, which implies
the development of Europe’s internal electricity
market, will continue to evolve and be in line
with future trends and challenges in the energy
industry;
• Process
optimization
based
on
artificial
i n t e l l i g e n c e ;
• Using machine learning algorithms to optimize
production processes and minimize waste;
• Adopting similar AI strategies can optimize
energy production, increase equipment reliability
and minimize operational expenses.
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
International
geo-political
context
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.
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.
The plan targets 4 areas: Saving, diversifying sources, accelerating the shift to
clean energy, investment and reform.
Electricity prices
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Key drivers
Description
Impact on
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.
Regarding user connection, the Energy Law was amended in the period 2020-
2022, so that: in 2021, the OD financed the connection works of household and
non-household customers with lengths less than 2.5 km, and starting with 2022,
the free connection for non-households was eliminated, and for households,
the obligation to finance by the OD only one connection in an average value
established by ANRE was maintained. In 2023, the free connection of equipment
and aggregates for irrigation and non-household customers with CAEN code 01
Agriculture, hunting and ancillary services and CAEN code 10 Food industry was
introduced, for connection installations with a length of less than 2.5 km, the
financing of the network difference exceeding the length of 2.5 km is ensured by
non-household customers.
The year 2024 represents the transition period from the fourth period (PR4) to
the fifth regulatory period (PR5); For the year 2024, ANRE approved for DEER zonal
distribution tariffs established based on a single regulated income and a single
CPT target; The methodological norms approved by ANRE in October 2022 allow
the capitalization starting with 2022 of the additional cost with CPT compared to
the price recognized in the tariffs.
The methodology for setting distribution tariffs approved by ANRE Order no.
67/2024 establishes the regulatory framework for the fifth regulatory period
(RP5) and the method for establishing regulated revenues and the profitability
of the distribution subsidiary’s assets. The RRR value approved for RP5, of 6.94%,
is increased or decreased by 0.5 percentage points, depending on the level of
performance achieved by the DSO with regard to the development of a smart
grid that promotes energy efficiency and the integration of energy produced
from renewable sources, in relation to the values of a set of indicators that will
be approved according to a methodology developed by ANRE. The regulated
revenues of the DSO consist of: (i) non-NL revenues that are recovered through
the tariffs applied to consumers and (ii) NL revenues that are recovered from
both consumers and electricity producers.
Electricity prices
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.
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
Key drivers
Description
Impact on
Technological
development
Smart networks and smart meters will create benefits for the end consumers,
distribution operators and suppliers in terms of energy efficiency, resource
optimization and network operation, implementation of demand response etc. It
is necessary to prepare the networks and to integrate the distributed resources
(storage solutions, micro-grids, local production, electric machines, etc.), also
considering the management of their impact.
Electricity
prices and
consumption
Increase in
environmental
awareness
Romania has adopted the 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
Source: Electrica
IT&C perspectives for the year 2025
Digital Transformation and Financial Optimization
In accordance with the objectives and directions
established by the Digitalization Strategy approved
in 2022, the organization proposes to implement
Central Finance SAP. This system brings benefits
such as reducing financial data consolidation time
by 40%, increasing reporting accuracy by 30% and
optimizing accounting processes by automating
repetitive tasks. Central Finance SAP integrates
financial data from various ERP and accounting
systems, providing a consolidated picture of the
financial situation. Standardization and automation
of financial processes will reduce redundancy and
complexity, facilitating better resource management
and faster financial reporting.
Innovation and Emerging Technologies
An essential element of the 2025 strategy is the
creation of an innovation and product development
laboratory. This lab will explore and implement
emerging technologies such as artificial intelligence
(AI) and the Internet of Things (IoT). Key initiatives
include the development of AI solutions to automate
customer
service
and
support
processes,
the
deployment of IoT sensors to optimize the logistics
chain, and predictive data analysis to improve
business decisions. These initiatives will reduce
operational costs by up to 25% and accelerate
innovation within the organization.
Cyber Security and Data Protection
The growth of cyber threats requires significant
investment
in
advanced
security
solutions.
Implementing robust cybersecurity measures such
as multi-factor authentication (MFA), advanced
AI threat detection, and regulated vulnerability
testing will help protect critical information. The
development of training and awareness programs
for employees will include quarterly training sessions
and cyber attack simulations, aimed at improving
the organization’s response to possible security
incidents.
Digitization and Customer Experience
The adoption of innovative ITC technologies enables
the organization to respond more effectively to
market demands and changes in the business
environment. Through digitization, procurement will
be supported by implementing AI virtual assistance
for 24/7, integrating omnichannel platforms for
smoother
interaction
and
using
analytics
to
personalize services. These measures will lead to an
estimated 35% increase in their satisfaction.
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Adaptability and Competitiveness
Continuing and accelerating digitization initiatives
will enable the organization to remain competitive,
optimize IT&C infrastructure and provide faster and
more customer-friendly services. Adaptability to
new technological and economic trends will ensure
long-term success and a solid market position.
Implementing
cloud
solutions
and
using
RPA
(Robotic Process Automation) to streamline internal
processes will reduce operational costs by up to 20%,
enabling more efficient allocation of resources.
Through these concrete initiatives, the organization
aims to maximize operational efficiency, drive
innovation and improve security and customer
experience, thereby strengthening its position as a
leader in the IT&C industry.
2.5 Key factors, directions and significant market trends
affecting the operational results of Electrica Group
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 implementation of smart grid solutions takes
into account the development and implementation
of a smart grid for monitoring and managing energy
flows and network retrofitting and the implementation
of advanced technologies for monitoring and
managing energy flows and network retrofitting. One
of the main factors influencing the strategic decisions
for the Distribution area is represented by the 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
procurement by OPCOM of energy for the NL does not
lead to the improvement of the results.
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 power consumption from the station or for
the development of electricity storage facilities and
the way to integrate flexibility services.
Increasing the network capacity for integrating
production from E-SRE aims to promote and execute
investment works from the 10-year development
plan,
specifically
increasing
and
optimizing
capacity in order to connect producers to the RED
and continuing efforts to improve the network’s
performance
indicators.
The year 2024 was approved by ANRE as the
transition period to the fifth regulatory period, the
DEER distribution tariffs for 2024 are transitional and
established based on a single revenue, the NL target
being single for the entire DEER.
In 2024, ANRE approved the revenue and profitability
projection for the fifth regulatory period 2025-2029
(RP5). Through the tariff approval orders, ANRE
approved the total investment values and the
minimum mandatory values for RP5, considering that
the Methodology provides that in the event that the
value of network investments made in a year from
own sources exceeds their minimum mandatory
value, ANRE applies an incentive of one percentage
point above the RRR value to the value of this excess.
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 2024, 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 2024, EFSA was the nominated Supplier of
Last Resort for electricity in March and August 2024,
and for natural gas in June 2024.
In this context, EFSA will adapt its medium and
long-term strategy to manage the impact of these
measures on the activities of companies in a
responsible and sustainable manner in the context
of a regulatory framework that has undergone
successive changes and has a high impact on the
activities of companies.
The evolution of acquisition cost
The first quarter of 2024 was characterized by low
liquidity in the wholesale market generated by the
implementation at the end of 2022 of measures
to reduce the price of electricity and natural gas,
namely: OUG 27, OUG 119 and OUG 153.
Starting with April 1, 2024, the provisions of OUG
32/2024 came into force, through which:
• the selling price in MACEE was reduced from 450
lei/MWh to 400 lei/MWh, and MACEE became a
voluntary market for both suppliers and energy
producers;
• the percentage for the accepted profit when
surtaxing trading activity increased from 2% to
10%.
Because MACEE has become an optional market, the
number of sales offers initiated by large producers
(Hidroelectrica, Nuclearelectrica and CE Oltenia) in
the forward markets has increased, at prices above
the limit of 450 lei/MWh.
The trading price in the PZU during the evening
peak hours recorded values of over 4,000 lei/MWh,
the maximum recorded in September, respectively
5,084 lei/MWh, the highest value achieved since the
establishment of this market. The causes that led to
this price increase were: the reduction of volumes
offered for sale in MACEE (up to their total absence),
the increase in electricity consumption, the periods in
which the Hungarian energy market was decoupled
from the countries of South-Eastern Europe, resulting
in the reduction of the net transfer capacity in
Hungary and the unavailability of production units in
the region.
The average trading price of energy in the PZU in 2024
was 514.33 lei/MWh, having a value approximately
similar to the average price recorded in 2023,
respectively 511.83 lei/MWh.
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On days with low consumption (Sundays or legal
holidays) and high production from renewable
sources, DAM trading intervals with negative prices
were recorded.
For natural gas, the weighted average price on
DAM decreased in 2024 by approximately 32.70 lei
compared to the average trading price achieved in
2023, from 185.69 lei/MWh to 152.98 lei/MWh.
In PE, the value of imbalances reached a very high
level. Through GEO 27, a supplier is recognized
for the value of the imbalance in the settlement
process of the capping scheme in a percentage of
5% (compared to 10%, previously) of the value of the
electricity purchased through all forward contracts
and from the SPOT markets. The recognized value
has become significantly lower compared to the cost
borne by the supplier, this cost reaching in certain
months of 2024 a level of over 70 lei/MWh, compared
to approx. 13 lei/MWh as it was in 2022.
The analyses carried out showed that these costs are
largely generated by the created and unrecognized
imbalances of prosumers. The rapid development of
the prosumer segment, the lack of historical data to
be able to make a forecast based on mathematical
models,
make
it
impossible
to
estimate
the
imbalances, without real-time measurement data.
It is difficult to assess what the evolution of the
wholesale electricity and natural gas market will be
in 2025. Price volatility will continue to be very high,
against the backdrop of geopolitical tensions, the
increase in renewable energy production without
major investments and in storage capacities, but also
the maintenance of low demand from consumers,
therefore it is estimated that prices will remain at a
level similar to those achieved in 2024.
The impact on customers
The impact on clients in the dynamic domestic and
international context:
• Acceleration and optimization of the implemented
digitization and development of synergies within
national supplier change platform, by adapting
and homogenizing processes to optimize the
relationship with clients;
• Adapting
to
internal
context
created
by
liberalization of energy prices, as well as to the
international one causing supply fluctuations;
• Support measures granted to both household
consumers and non-households;
• Maximizing the results obtained following the
development of partnership relations in the
dynamic context created by liberalization.
3. ELECTRICA ON THE CAPITAL MARKETS
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R
O
M
A
N
I
A
N
S
T
A
T
E
4
9
.
7
8
%
BNY MELLON DRS (LSE) 0.57%
BERD (UK) 0.96%
INDIVIDUAL PERSONS 4.33%
R
O
MA
NI
A
40
.5
3
%
OTHER
COUNTRIES
3.83%
O
T
H
E
R
L
E
G
A
L
P
E
R
S
O
N
S
4
4
.
3
6
%
No. of Shares
Percentage of
share capital/
voting rights(%)
Romanian State through the Ministry of Energy
European Bank for Reconstruction and Development (EBRD)
Electrica
Bank of New York Mellon - GDRs
Other legal persons
Individual persons
Total
Shareholder
169,046,299
49.7850%
3,272,744
0.9638%
0
0%
1,934,008
0.5698%
150,610,122
44.3554%
14,689,031
4.3260%
339,553,004
100.00%
3.1 Ownership structure
ELSA is a company with a majority private share capital, and the company’s shares have been listed since
July 2014 on the Bucharest Stock Exchange (BSE – symbol EL) and at the same time the global depositary
receipts (which support the shares) are listed on the London Stock Exchange (LSE – symbol ELSA).
Until July 2014, the Romanian State, through the Ministry of Economy, Energy and Business Environment, was the
sole shareholder of ELSA. Starting with July 4, 2014, after the Initial Public Offering following the 105% increase in
the share capital, ELSA became a company with a majority private share capital, and the double listing in 2014
represents the only majority privatization of a Romanian state-owned company through the Stock Exchange.
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 2024, the ownership structure according to the Central Depository records (Romanian:
Depozitarul Central) is presented below.
Table 8. Ownership structure
Shareholder
Number of
shares
Stake held
(% of the share
capital)
Percent of
voting rights (%)
The Romanian State, through the Ministry Energy,
Bucharest, Romania
169,046,299
49.7850%
49.7850%
The European Bank for Reconstruction and
Development
3,272,744
0.9638%
0.9638%
BNY MELLON DRS, New York, USA
1,934,808
0.5698%
0.5698%
Other legal entities*
150,610,122
44.3554%
44.3554%
Individuals
14,689,031
4.3260%
4.3260%
TOTAL
339,553,004
100.0000%
100.0000%
Source: Central Depository, Electrica
Note 1: Total Shares - 339,553,004 (all with voting rights)
* Paval Holding, NN Group NV and Allianz SE hold, directly or indirectly, between 5% and 10% of the total number of shares with voting rightst
The shares presented to be held by the Bank of New York Mellon represent the global depositary receipts
(GDRs) owned by ELSA shareholders that are traded on the London Stock Exchange (LSE). A global depositary
receipt represents four shares. The Bank of New York Mellon is the depositary bank for these securities.
Figure 24: Ownership structure as of 31 December 2024
At the end of 2024, ELSA shares were held by a total of 14,274 shareholders, of which 237 were legal entities
and 14,307 were individuals from 29 countries. Of the total shares, 94.59% (321,191,881 shares) were held by
investors residing in Romania.
Thus, foreign shareholders held 5.41% of the share capital (18,361,123 shares), the largest share being
represented by American shareholders. Shareholders from the US held 2.48% (this category also includes GDR
holders), and from the UK and Ireland held 1.27% of the share capital,
Romanian Pillar II and Pillar III pension funds together held about 27% of the share capital, representing the
second largest global shareholder after the Romanian State.
3.2 Shares evolution on BSE and Global depository receipts
(GDRs) evolution on LSE
3.2.1 BSE shares
ELSA shares are included in several BSE indices, including the BET index (the Romanian capital market
benchmark index that reflects the performance of the most traded companies on the BSE regulated market),
implicitly in the BET-TR index, as well as in the BET-NG index (the sector index that reflects the performance
of companies listed on the BSE regulated market whose main activity is energy and related utilities) and the
BET-EF index (dedicated to the best represented sectors of activity in the capital market, energy, utilities and
financial). Complete list of BSE indices in which ELSA shares are included: BET-EF, BET-NG, BET, BET-TR, BET-TRN,
BET-XT, BET-XT-TR, BET-XT-TRN, BETPlus, BET-BK, ROTX.
Source: Central Depository, Electrica
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ELECTRICA ON THE CAPITAL MARKETS
ELECTRICA ON THE CAPITAL MARKETS
ELECTRICA 2024 ANNUAL REPORT
ELECTRICA 2024 ANNUAL REPORT
Electrica shares have been included in the MSCI indices since the year of listing, 2014, and also, Electrica
shares have been included in the FTSE Russell international index series starting with March 18, 2024, the
inclusion being confirmed on February 27, 2024.
Meanwhile, the FTSE Russell Index Committee confirmed in August 2024 the first maintenance of Electrica
shares in the FTSE Russell indices (for the period July 2023 - June 2024). For the second maintenance (Jan
2024 - Dec 2024), the criteria were met in 8 months, and the confirmation came on February 24, 2025. The next
maintenance (July 2024 - June 2025) will be assessed in August 2025.
With the inclusion of Electrica in the FTSE Russell indices, several American funds that replicate the structure
of the FTSE Russell indices have entered Electrica’s shareholding, so that US shareholders have come to hold
almost half of the shares held by non-residents.
In order to support the liquidity of its listed shares, Electrica concluded at the end of 2022 two Market Making
services contracts for the Issuer, with SIF BRK Financial Group S.A. and WOOD & Company Financial Services,
a.s. Praga, for a period of two years, effective as of January 1, 2023, with the main purpose of accessing the
FTSE Russell international indices. Both contracts were extended, with the main purpose of maintaining the
FTSE Russell indices.
Between July 4, 2014 and December 31, 2024, ELSA shares recorded a minimum price of RON 6.10 (September
29, 2022) and a maximum price of RON 16.30 (July 17, 2024), and the average price was RON 11.65.
The gross dividends per share granted by ELSA during this period had a cumulative value of 5.9173 RON. Thus,
the aggregate return generated by ELSA shares (together with dividends) from the listing until the end of
2024 was 73.8%, of which 20% from the price return on the BSE and 53.8% from dividends.
Since the listing on July 4, 2014 until the end of 2024, ELSA shares have attracted a liquidity of 4.826 billion RON
on the BSE, with a daily average of 1.82 million RON. During this 10.5-year period, 414.2 million ELSA shares were
traded (including DEAL transactions), representing 122% of the share capital, respectively of the voting shares.
Thus, the average daily turnover during this period on the BSE was 156,000 shares.
During 2024, ELSA shares attracted a liquidity of 509 million RON on the BSE, with a daily average of 2 million
RON, up 106% compared to 2023, 8th in the top trading BSE. 38.8 million shares were traded, up 49% compared
to 2023, so the average daily turnover was 155,042 shares. The total turnover in 2024 represented 11.4% of the
share capital.
In 2024, Electrica shares had a price return of 15%. The gross dividend per share granted by ELSA in 2024
(relating to the year 2023) was RON 0.1178, the same as in 2023, but below the levels recorded in previous
years, with a yield of 0.86% (calculated at the closing price of RON 13.66 as of the ex-date – May 30, 2024).
Thus, in 2024, the aggregate yield of Electrica shares was 16.01%, in line with that of BET-TR, which was 16.15%.
The year 2024 was a historic year for Electrica shares from several points of view: in July 2024, 10 years were
celebrated since the listing on the BSE and LSE; the shares crossed several psychological price thresholds,
from 12 lei to 16 lei, also setting a historical maximum price of 16.30 lei on July 17, 2024; Electrica shares were
included for the first time in the FTSE Russell indices; the highest turnover in the last 6 years and the highest
liquidity in the last 7 years were recorded, excluding the transfer of 25 million Electrica shares from one vehicle
to another made by Dedeman in 2020).
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,
from 10.17% on July 4, 2014, to 0.57% at the end of 2024.
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, with 12.74 million GDRs being traded.
During 2024, the trend was upward, with the price at the end of 2024 being USD 13.00, up 31% compared to the
end of 2023 (USD 9.90), on a turnover of 32,644 GDRs, up 13.4% compared to 2023. A summary of the above is
provided below.
Table 9. BSE Shares and Global Depositary Receipts (GDRs) on LSE
Indicator
4 Jul 2014 -
31 Dec 2024
2024
2023
Variation
2024 vs 2023
Bucharest Stock Exchange
Total liquidity (RON)
4.825.844.780
509.142.418
247.111.195
106,0%
Average daily liquidity (RON)
1.817.644
2.036.570
996.416
104,4%
Turnover (no. shares)
414.178.219
38.670.607
26.054.922
48,8%
Average daily turnover (no. shares)
155.999
155.042
105.060
47,6%
Market cap. - end of period (RON)
4.482.099.653
4.482.099.653
3.977.172.493
12,7%
Minimum price (RON)
6,10
10,86
8,01
35,6%
Maximum price (RON)
16,30
16,30
11,56
41,0%
Average price (RON)
11,65
13,14
9,48
38,5%
Price at the end of period (RON)
13,20
13,20
11,48
15,0%
Dividend(s) ELSA (RON)
5,9173
0,1178
0,1178
0%
ELSA Share price performance (%)
20,0%
15,0%
41,9%
-
BET performance (%)
138,3%
8,8%
31,8%
-
BET-NG performance (%)
70,0%
7,0%
31,4%
-
BET-TR performance (%)
378,18%
16,15%
39,9%
-
ELSA’s Adjusted price performance (%)2
78,80%
16,01%
43,36%
-
ELSA’s Dividend(s) yield1 (%)
53,79%
1,03%
1,46%
-29,7%
BET-TR Dividend(s) yield1 (%)
239,80%
7,37%
8,15%
-9,5%
London Stock Exchange
ELSA’s GDRs liquidity (USD)
163.227.585
401.842
229.723
74,9%
ELSA’s GDRs turnover (no. of GDRs)
12.710.816
32.644
28.787
13,4%
GDRs price performance (%)
-4,8%
31,3%
67,8%
-
Source: BSE, Electrica
1 Computed at the previous periods’ last day close price (for comparability)
2 Computed together with dividend(s) granted during the analyzed period
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DIRECTORS’ REPORT FOR THE YEAR 2024
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ELECTRICA ON THE CAPITAL MARKETS
ELECTRICA ON THE CAPITAL MARKETS
ELECTRICA 2024 ANNUAL REPORT
ELECTRICA 2024 ANNUAL REPORT
Figure 25: Evolution of the adjusted closing price of ELSA’s shares vs BET-TR index during 2024 and
January 2025
Source: BSE, Electrica
During 2024, Electrica shares „broke” five psychological price thresholds, from 12 lei to 16 lei, setting a historical
high of 16.30 lei on July 17, 2024, a level at which the gain since the beginning of the year was 43%, benefiting
from both a favorable market context, with the entry of index funds that replicate the FTSE Russell indices, and
from continuously consolidating financial results (2023 vs. 2022, Q1 2024 vs. Q1 2023), amid the stabilization of
prices on the energy market and the implementation of MACEE.
However, balancing market prices started to rise in June and what seemed like a passing event turned out to
be a persistent situation until the end of the year. This extreme volatility in the balancing market was reflected
in the results of the supply segment, which turned into a loss in Q2 2024 and then deepened into losses in Q3
2024, amid the absorption of market price shocks and the billing of capped prices to customers, most of the
price difference not yet being covered by the state through regulated mechanisms. Thus, with the publication
of Q2 2024 results on August 26, Electrica’s share price suffered a sharp depreciation, erasing more than half
of the accumulated gain up to the historical highs, the erosion continuing even after the publication of Q3
2024 results on November 15 until early December, when the gain at the beginning of the year was 80% lower
than that at the July 2024 highs.
However, after the price slipped back through the thresholds that it had „broken” on the rise at the beginning
of the year, to the area of 12.3 lei/share on December 5, 2024, investors returned to buying, so that the price
rose to 13.20 at the end of 2024, and in January 2025 it again exceeded the threshold of 14 lei, to almost 15 lei,
the closing price at the end of January being 14.02 lei, equivalent to a gain since the beginning of the year of
6.2%, the 4th highest among the 20 companies in BET.
Figure 26: Monthly trading volume and weighted average monthly closing price of shares on BSE (in
RON) and GDRs on LSE (in USD) during 2024 and January 2025
Source: BSE, LSE, Electrica
3.3 Investor relations (IR)
Electrica’s management understands that, as a listed
company, efficient and transparent communication
with investors is essential to gain and maintain their
trust, thus contributing to the company’s long-term
success on the financial market. During 2024, as every
year since the listing in 2014, the management was
actively involved in activities dedicated to investors
and analysts.
In order to inform stakeholders fairly, continuously
and transparently, the Investor Relations department
has disseminated numerous current reports and
announcements on the platforms of the Bucharest
Stock Exchange (BSE), the London Stock Exchange
(LSE), the Financial Supervisory Authority (FSA), as well
as on ELSA’s website. All these documents, as well as
the data necessary for any investor to be accurately
and comprehensively informed can be found on the
company’s website, in the Investors section.
In 2024, with the participation of the entire executive
management team of the Electrica Group, four
teleconferences were organized to present the
annual, quarterly and half-yearly financial results
of the Group. The events were broadcast live via
webcast, and both the supporting documents and
the recordings and transcripts of the teleconferences
can be accessed on the company’s website, in
the section Investors > Results and Reports >
Presentations and other information.
ELSA’s management representatives and the investor
relations team also participated in the main national
and international conferences held in physical and/
or hybrid format dedicated to investors in 2024,
-0.91
16.15
18.09
-2.96
16.01
23.15
-10.00
0.00
10.00
20.00
30.00
40.00
jan.-24
feb.-24
mar,-24
apr.-24
may-24
jun.-24
jul.-24
aug.-24
sept.-24
oct.-24
nov.-24
dec.-24
jan.-25
BET-TR
Electrica adjusted price with dividends
EL: +23.15%
BET-TR: +
3,134,591
4,407,763
11,603,624
2,304,589
1,475,650
863,703
4,087,754
1,998,248
1,341,235
1,115,767
4,476,413
1,951,270
1,206,905
12,400
1,000
35,224
0
4,000
10,600
32,680
34,620
0
0
52
0
16
11.53
13.12
14.25
10.30
13.00
13.50
-
2.00
4.00
6.00
8.00
10.00
12.00
14.00
16.00
-
2,000,000
4,000,000
6,000,000
8,000,000
10,000,000
12,000,000
14,000,000
BSE - Shares - Monthly volume
LSE - GDRs - Monthly volume (shares equiv,)
BSE- Shares- Average monthly closing price (RON)
LSE - GDRs - Average monthly closing price (USD)
jan.-24
jan.-25
feb.-24
mar.-24
apr.-24
may-24
jun.-24
jul.-24
aug.-24
sept.-24
oct.-24
nov.-24
dec.-24
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ELECTRICA ON THE CAPITAL MARKETS
ELECTRICA ON THE CAPITAL MARKETS
ELECTRICA 2024 ANNUAL REPORT
ELECTRICA 2024 ANNUAL REPORT
interacting directly with dozens of investors and
analysts, both institutional and individual. Among the
events are:
• January 29, 2024: „VEKTOR by ARIR 2023 Results”
- the launch of the VEKTOR 2023 results for listed
companies, where Electrica obtained a score of
10 for the third consecutive year;
• March 3, 2024, June 12, September 10, November
27, 2024: Partnership and active participation
in the Quarterly Report – quarterly conference
organized by TradeVille and Ziare.com, which
facilitates interaction between retail investors
and listed companies;
• April 4, 2024: Closing event for the Investor
Relations & Liquidity Support Programme by
EBRD & BSE, where Electrica was one of the three
companies selected to benefit from consultancy
on investor relations strategy and liquidity
improvement (Vertik being the consultant chosen
by the EBRD);
• June 26, 2024: Events celebrating 10 years since
Electrica’s listing on BSE and LSE (Ring-the-Bell
and reception);
• September 5-6, 2024: Romania Investor Days
(WOOD & Co) in Bucharest;
• November 11-12, 2024: 29th session of the
COP (2024 United Nations Climate Change
Conference) in Baku, Azerbaijan;
• November 26, 2024: ARIR Gala.
On March 18, 2024, Electrica shares were included, for
the first time, in the FTSE Global Equity Index Series
(GEIS), just one year after the implementation of the
two optimally calibrated market-maker contracts
with BRK Financial Group S.A. and Wood & Company
Financial Services a.s. from Prague. This remarkable
achievement, in a year in which Electrica celebrated
10 years since its listing, represents a reconfirmation
of the efficiency of the implementation of the Group’s
business strategy.
Electrica continues its partnership with the Bucharest
Stock Exchange (BSE) and supports the BVB Research
Hub platform, dedicated to increasing the visibility
of listed companies and attracting investors and
analysts, offering the public, especially individual
investors,
access
to
informative,
educational
materials, tools and analyses through the online
portal www.bvbresearch.ro.
In 2024, ELSA continued to be an associate member
of the Romanian Stock Exchange Investor Relations
Association (ARIR), getting involved in the numerous
projects carried out by it, especially in the active
participation in the projects of legislative and
regulatory amendments to the capital market and
the Corporate Governance Code.
In the period November-December 2024, an investor
perception study was carried out with the help of
an independent consultant, aimed at analyzing
the perceptions of investors, analysts, brokers and
other stakeholders active on the capital market (e.g.
influencers). The purpose of this study was to collect
information regarding the opinions, expectations
and current concerns of Electrica investors, data
that will contribute to strengthening the relationship
with the investor community, aligning the company’s
communication strategy with their expectations
and, ultimately, improving its reputation on the
market. The study addressed seven main areas:
general perceptions, financial performance and
profitability, strategy and growth prospects, ESG
and
management,
risks
and
volatility,
capital
market performance and investor communication,
innovation and technology.
All actions taken in 2024 and plans for the following
years aim to implement the most efficient investor
program, increase transparency and improve the
quality of communication with investors, analysts
and the capital market as a whole, with the main
objective of retaining, attracting and satisfying
shareholders and investors.
The efforts made were recognized by obtaining for
2024, for the fourth consecutive year, the maximum
score of 10 at Vektor - the indicator designed to
promote the implementation of the best corporate
governance and investor communication practices
for companies listed on the Romanian stock
exchange, calculated by the Romanian Association
for Investor Relations and published annually on the
BSE.
3.4 Related parties transactions
ELSA has the obligation to report the significant
transactions concluded by ELSA or its subsidiaries
with related parties, as per art. 108 of law no. 24/2017.
„Significant transaction” means any transfer of
resources, services or obligations, whether or not
it involves the payment of a price, the individual or
cumulative value of which represents more than 5%
of ELSA’s net assets, according to the latest individual
financial statements published by ELSA (in 2024, there
were three references: on September 30, 2023 – RON
198,760,627, on December 31, 2023 – RON 199,025,704
and on June 30, 2024 – RON 200,247,479).
The 34 current reports regarding this type of
transactions, together with two semi-annual auditor
reports, two conventions concluded by DEER and
EFSA on MACEE and the internal treasury convention,
published by ELSA in 2024 and 5 other current reports
until January 31, 2025, can be found on the company’s
website, at https://www.electrica.ro/en/investors/
results-and-reports/current-reports-art-108/.
3.5 Dividend policy
ELSA’s dividend policy, updated in May 2022, can be
accessed on the company’s website under section
https://www.electrica.ro/en/investors/corporate-
governance/corporate-policies/.
ELSA’s dividends are distributed from the annual net
distributable profit based on the annual individual
audited financial statements, and/or from other
items of equity (e.g. retained earnings) set up at the
level of the Company, after their approval by ELSA’s
Ordinary General Shareholders’ Meeting (OGMS) and
the approval of the dividend proposal by the OGMS.
The shareholders receive dividends proportionally
to their share in the company’s paid-up capital. The
company will pay all dividends in RON.
Regarding the global deposit receipts that are traded
on the London Stock Exchange, ELSA pays dividends
to the GDRs issuer proportionally to its holdings.
Holders of GDRs will then receive dividends from the
GDR issuer, proportionally to their holdings.
In selecting a certain dividend pay-out ratio according
to the dividend policy, the Board of Directors takes
into consideration the followinge:
• 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
as finance income in ELSA’s individual financial
statements in year N and thus constitute the source
of the net result from which ELSA declares and
subsequently pays dividends to its shareholders in
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.
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ELECTRICA ON THE CAPITAL MARKETS
ELECTRICA ON THE CAPITAL MARKETS
ELECTRICA 2024 ANNUAL REPORT
ELECTRICA 2024 ANNUAL REPORT
245
292
251
245
248
246
248
153
40
40
60
250
292
251
245
283
245
283
306
23
22
66
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
Dividends distributed
Distributable profit
Distribution rate
100%
3.6 Dividend distribution
3.7 Own shares
In July 2014, ELSA repurchased, in order to stabilize the price, 5,206,593 shares and 421,000 Global Depository
Receipts, representing the equivalent of 1,684,000 shares, a total of 6,890,593 own shares. The total amount
paid for these shares and Global Depository Receipts was RON 75.4 million.
The Extraordinary General Meeting of Shareholders of Electrica decided on April 25, 2024 to cancel these own
shares and reduce the share capital accordingly. On July 19, 2024, the Financial Supervisory Authority (ASF)
issued the Financial Instruments Registration Certificate (CIIF) no. AC - 4023 - 3 / 19.07.2024 related to the
reduction of share capital with the value of own shares held since 2014.
On July 22, 2024, the Central Depository operated the reduction of the share capital of Electrica SA by canceling
the 6,890,593 own shares, so that currently the company has a share capital of 3,395,530,040 lei, divided into
339,553,004 shares, with a nominal value of 10 lei/share, all with voting rights.
The dividends1 distributed by ELSA fluctuated in the period 2014 - 2023, 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, 50% in 2021 (RON 152.9 mn. was
distributed to “Others reserves”) and 174% in 2022 (RON 16.97 mn. was distributed from “Others reserves”).
The distribution rate for 2023 dividends was 184% (RON 18.22 mn. was distributed from “Other reserves”).
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.
Figure 27: Gross dividends distributed (2014-2024) (RON mn.)
The dividend yield paid in 2024, related to the results of 2023, registered a level of 0.9%, the gross dividend per
share paid in 2024 being RON 0.1178. The dividend yield (%) is calculated as Gross dividend per share/Closing
price of the share on the BSE at the ex-date.
Thus, ELSA offered investors a stable return every year from 2014 to 2021, ranging between 5.2% and 7.3%,
except for 2022 and 2023, for which the return and dividend level were affected by the energy crisis.
More details about dividends and their distribution can be found on the website: https://www.electrica.ro/en/
investors/shares-and-shareholders/dividende_en/.
Source: Electrica
0.7217
0.8600
0.7415
0.7237
0.73
0.7248
0.73
0.45
0.1178
0.1178
6.1%
6.9%
5.2%
7.3%
6.8%
6.9%
6.0%
5.2%
1.4%
0.9%
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
Figure 28: Gross dividend per share (RON) and dividend yield (%)
Source: Electrica
4. CORPORATE GOVERNANCE IN ELSA
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DIRECTORS’ REPORT FOR THE YEAR 2024
CORPORATE GOVERNANCE IN ELSA
CORPORATE GOVERNANCE IN ELSA
ELECTRICA 2024 ANNUAL REPORT
ELECTRICA 2024 ANNUAL REPORT
ELSA confers a great importance to the principles of
good corporate governance, considering corporate
governance a key element for the sustainable
business growth and for the enhancement of long-
term value for shareholders.
ELSA constantly develops and adapts its corporate
governance practices and model, both at standalone,
as well as at Group level, so that it can align with the
increasingly rigorous capital market requirements
and with the best practices in corporate governance
at European level, and also for creating opportunities
and increase competitiveness.
The corporate governance represents the set of
principles standing at the basis of the governance
framework used for the company’s management
and control. Transposed in the internal rules and
regulations, these principles determine the efficiency
and effectiveness of the control mechanisms aiming
to protect and harmonize the interests of all the
stakeholders – shareholders, directors, executive
managers, managers of different structures of the
company, employees and the organizations that
represent their interests, customers and business
partners, suppliers, central and local authorities,
regulators and capital markets operators etc.
ELSA’s Code of Corporate Governance presents
primarily the main work methods, attributions and
responsibilities of the management and supervisory
structures of the company, as well as those of the
committees constituted to support these structures
to fulfil their responsibilities.
ELSA undertook, from the moment of the IPO
and admission to trading from July 2014, the
implementation of a corporate governance action
plan, as part of the framework agreement concluded
with the European Bank for Reconstruction and
Development.
The
standards
and
measures
provisioned in this plan have been implemented and
continuously monitored. For more details about this
Action plan, please see chapter 4.9.
4.1 Corporate Governance Code
Starting with 2014, ELSA adheres to and applies
wilfully the provisions of the Corporate Governance
Code issued by BSE, reviewed periodically. This
code can be accessed on the BSE’s website at the
following address: http://www.bvb.ro/Regulations/
LegalFramework/BvbRegulations.
The latest version of the BSE CGC was published
on December 9, 2024 and became applicable as
of January 1, 2025. The adaptation of practices
in accordance with it will be done in 2025, with
compliance reporting to be done in the 2025 annual
report, in 2026.
Formally, ELSA adopted the Code of Corporate
Governance (ELSA CGC) starting with February 2015
and made it available to all the interested parties on
ELSA’s website, in the section Investors > Corporate
Governance.
The most recent revision was in 2020, (chapter 6 on
the risk management system was revised). ELSA’s
CGC is available on the company’s website in the
Investors > Corporate Governance section.
ELSA’s compliance with BSE’s Corporate Governance
Code is being thoroughly assessed, and as updates
and developments appear, ELSA promptly reports
them to the capital market. The compliance with the
provisions of the CGC issued by the BSE is presented
annually in the Declaration on Corporate Governance
“apply or explain” in Chapter 4.8. This is also available
on the company’s website in the section Investors >
Corporate Governance > Comply or Explain.
ELSA CGC embeds the general principles and conduct
rules that set forth and regulate the corporate values,
the responsibilities, the obligations and the business
conduct of the company.
ELSA CGC contains the terms of reference and the
main responsibilities of the company’s administrative
and executive management, as they are detailed in
ELSA’s Articles of Association, the organization and
functioning regulations of the Board of Directors and
those of its committees.
ELSA CGC is also a guide on business conduct and
corporate governance matters for the management
and for the employees of ELSA, as well as for other
stakeholders, and provides information about the
company’s principles and policies. The corporate
policies and documents referred to in ELSA CGC can
be accessed on the company’s website in the section
Investors > Corporate Governance > Corporate
policies and other documents.
During 2024, the following corporate documents were
reviewed and published on the Electrica website:
Policy on the Organization and Conduct of General
Meetings of Shareholders - on August 19, 2022, and
the Articles of Association of the Company, updated
to reflect the reduction of the share capital following
the cancellation of treasury shares - entered into
force on July 11, 2024.
In compliance with company’s policies and with the
procedures of the Code of Ethics and Professional
Conduct, the Audit and Risk Committee ensures that
the company’s activity is carried on with honesty
and integrity, including the implementation of the
whistle-blower policy.
ELSA has implemented a procedure for reporting
ethical deviations, irregularities and any other aspects
of non-compliance with the law that otherwise could
cause image and/or commercial prejudice or even
involve legal sanctions, thus damaging the prestige
and profitability of the company. The whistle-
blowing reporting system which functions according
to this procedure, as well as the procedure itself, are
available on ELSA’s website, in the Whistleblowing
section.
Since ELSA’s shares are allowed for trading both on
the regulated market managed by Bucharest Stock
Exchange (BSE), as well as on the market managed
by the London Stock Exchange (LSE), ELSA is subject
to the rules imposed by the national and European
laws regarding market abuse prevention and the
regime applicable to inside information. Thus, ELSA
has implemented a Policy on preventing the misuse
of inside information, unauthorized disclosure of
inside information and market manipulation (Policy
regarding Market Abuse). The purpose of this policy is
to prevent violations of the legal provisions regarding
the misuse of inside information, by increasing
the awareness of all persons who possess inside
information regarding the obligations, restrictions
and sanctions applicable in case of possession and
abusive use of inside information or in case of market
manipulation regarding ELSA’s securities.
All the owners of financial instruments of the
same type and class issued by ELSA are entitled
to equal treatment. In order to ensure efficient,
active and transparent communication with its
shareholders, within ELSA activates the investor
relations department and related processes have
been set up to ensure efficient and transparent
communication with investors, in compliance with
the legal obligations in force, which can be found
in the Investor Relation Corporate Disclosure Policy,
applicable at ELSA level, available, in the updated
form, on the company’s website since 25 August 2020.
The company’s rules and procedures that establish
the framework for organizing and conducting
general meetings of shareholders are contained in
ELSA’s GMS Policy, amended on 17 August 2022 and
available electronically on the company’s website
in the sections Investors > General Meeting of
Shareholders and Investors > Corporate Governance
> Corporate policies and other documents.
The section dedicated to investors is available on
ELSA’s website by accessing https://www.electrica.
ro/en/investors/. Up-to-date essential information,
of interest for the investors, can be found in this
section, providing access to documents governing
the company, in accordance with the provision of
the CGC issued by BSE. This section also contains
the name and contact details of the person who can
provide, upon request of interested parties, relevant
information regarding the activity of the company.
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ELECTRICA 2024 ANNUAL REPORT
ELECTRICA 2024 ANNUAL REPORT
4.2 General Meeting of ELSA’s Shareholders
The General Meeting of Shareholders (“GMS”) is the
main corporate governance body of ELSA, deciding
on the items as outlined in the Articles of Association.
The convening, functioning, voting method, as well
as other provisions regarding the GMS are detailed
in ELSA’s Articles of Association, which is available
in electronic format on ELSA’s website https://www.
electrica.ro/en/the-group/about/constitutive-act/.
Starting from February 1, 2020, ELSA has in force a
policy regarding the organization and conduct of the
company’s general meetings of shareholders, which
presents in detail aspects of interest to investors
regarding the organization and conduct of the AGM.
Its last update was carried out in September 2024,
being extended by the introduction of electronic
voting, with all the options allowed by the capital
market legislation. The policy is available on the
company’s website, in the section Investors >
Corporate Governance > Corporate Policies > Policy
on Organizing and Running the General Meetings of
Shareholders.
ELSA’s ordinary general meeting of the shareholders
(OGMS and EGMS) main duties are found in the
company’s articles of association, available on
the company’s website here: Investors > Corporate
Governance > Corporate Policies > Articles of
Association – entered into force on February 5, 2025.
The OGMS is convened at least once a year, within a
maximum of four months from the end of the financial
year. Except for this situation, OGMS and EGMS are
convened as many times as needed, being convened
by ELSA’s Board of Directors whenever necessary
for the activity of Electrica Group. The GMS may be
convened also, upon the request of shareholders
representing, individually or cumulatively, at least 5%
of the share capital. In this case, the general meeting
of the shareholders shall be convened by the Board
of Directors within no more than 30 days and shall
meet within no more than 60 days from the date of
receiving the request.
4.3 Shareholders’ rights
The rights of all ELSA’s shareholders, independent
of their holdings, are protected according to the
relevant legislation. Shareholders have, amongst
other rights provided under the company’s Articles of
Association and the laws and regulations in force, the
right to obtain information about ELSA’s operations
and results, regarding the exercise of voting rights
and the voting results in the GMS.
Shareholders have also the right to participate and
vote in the GMS, as well as to receive dividends. There
are no shares granting the right to more than one
vote.
Moreover, shareholders have the right to challenge
the decisions of GMS or to withdraw from ELSA and
to request the Company to acquire their shares, in
certain conditions mentioned by the law. Likewise,
one or more shareholders holding, individually or
jointly, at least 5% of the share capital, may request
the calling of a GMS. Those shareholders have also
the right to add new items to the agenda of a GMS,
provided that those proposals are accompanied
by a justification or a draft resolution proposed for
approval and copies of the identification documents
of the shareholders who make the proposals.
The rights and obligations of the holders of the
shares, as well as those of the depositary receipt
holders are found in the company’s articles of
association, available on the company’s website
here: Investors > Corporate Governance > Corporate
Policies > Articles of Association - entered into force
on February 5, 2025.
Transfer of shares
The shares are indivisible. The company shall
recognize a sole owner per each share, subject to the
provisions of article 11 paragraph (4) from Articles of
Association.
The partial or total transfer of shares between the
shareholders or to third parties shall be carried out
according to the terms and procedure provided by
the applicable legal provisions, including the capital
markets legislation.
4.4 ELSA’s Board of Directors
ELSA
adopted
a
one-tier
(unitary)
corporate
governance system, in accordance with the principles
of good corporate governance, transparency and
accountability towards its shareholders and other
categories of stakeholders, aiming to support and
drive the business development and the efficient
exchange of relevant corporate information.
The Board of Directors (BoD) is responsible for taking
all the necessary measures to carry out, as well as to
supervise the activity of the company. Its structure,
organization,
duties
and
responsibilities
are
established under the Articles of Association and the
Charter (organization and functioning regulations)
of the BoD.
According to the provisions of the company’s
Articles of Association, starting with 14 December
2015, the BoD is composed of seven non-executive
directors, elected by the Ordinary General Meeting
of Shareholders of the company for a four-year
mandate, out of which four must meet the criteria of
independence provided by the Articles of Association.
During 2024, the Board of Directors’ structure has
undergone changes, as follows:
•
At the beginning of the year, the Board of Directors
was composed of the following members: Mr.
Iulian Cristian Bosoanca - President, Ms. Valentina
Siclovan, Mr. Radu Mircea Florescu, Mr. Gicu Iorga,
Mr. Adrian-Florin Lotrean, Mr. Dragos-Valentin
Neacsu and Mr. Ion-Cosmin Petrescu;
•
On January 26, 2024, the OGMS approved the
election of the following members of the Board
of Directors of the Company by applying the
cumulative voting method: Mr. Ion - Cosmin
Petrescu, Mr. Dumitru Chirita, Ms. Georgiana
Bogasievici, Mr. Dragos - Valentin Neacsu, Mr.
Adrian - Florin Lotrean, Mr. Marian-Cristian
Mocanu and Ms. Valentina - Elena Siclovan; The
Board members elected Mr. Dumitru Chirita as
President of the Board of Directors starting with
February 12, 2024 and until December 31, 2024;
•
Also, on February 12, 2024, the Board of Directors
of “Societatea Energetica Electrica S.A.” elected
Mr. Dragos Valentin Neacsu and Mr. Adrian -
Florin Lotrean as vice-chairmen of the Board of
Directors starting with February 12, 2024 and until
December 31, 2024;
•
On September 19, 2024, the Board of Directors
takes note of the resignation of Mr. Dumitru Chirita
as Chairman of the Board of Directors, starting
with September 19, 2024, as well as the resignation
of the directorship starting with October 19, 2024,
and elected Mr. Cosmin Petrescu as Chairman of
the Board of Directors starting with September 19,
2024 and until October 18, 2024, inclusive;
•
On October 21, 2024, considering the resignation
of Mr. Dumitru Chirita as director, the Board
of Directors appoints Mr. Mihai Diaconu, as a
provisional member of the Board of Directors,
starting with October 21, 2024 and until April 30,
2025 or until the next meeting of the Ordinary
General Meeting of Shareholders of Electrica;
At the same time, the Board of Directors of
“Societatea Energetica Electrica S.A.” elected
Cosmin Petrescu as Chairman of the Board of
Directors starting with October 21, 2024 and until
November 20, 2024, inclusive;
•
On October 29, 2024, the Board of Directors of
“Societatea Energetica Electrica S.A.” elected
Mr. Mihai Diaconu as Chairman of the Board of
Directors starting with October 29, 2024 and
until January 31, 2025, inclusive. On February 5,
2025, the AGM appointed Mr. Mihai Diaconu as a
member of the Board of Directors with a term of
office until January 26, 2028.
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CORPORATE GOVERNANCE IN ELSA
CORPORATE GOVERNANCE IN ELSA
ELECTRICA 2024 ANNUAL REPORT
ELECTRICA 2024 ANNUAL REPORT
•
On 26 January 2024, the GMS appointed a new Board of Directors, through the cumulative vote method,
therefore, at the date of the Directors report, the BoD consists of the following members: Mr. Ion-Cosmin
Petrescu, Mr. Dumitru Chirita, Mrs. Georgiana Bogasievici, Mr. Dragos-Valentin Neacsu, Mr. Adrian-Florin
Lotrean, Mr. Marian-Cristian Mocanu, Ms. Valentina-Elena Siclovan.
Table 10. Members of the BoD in 26 January 2024
No.
Name
Term of office (until 27 April 2025)
Status
Starting date
of the first
mandate
1.
Mr. Iulian Cristian
Bosoanca
4 years
Chairman,
non-executive
director
29 April 2020
2.
Mr. Radu Mircea
Florescu
4 years
non-executive
director,
independent
7 February 2019
3.
Mr. Gicu Iorga
4 years
non-executive
director
1 May 2017
4.
Mr. Adrian-Florin
Lotrean
4 years
non-executive
director,
independent
28 April 2021
5.
Mr. Dragos-Valentin
Neacsu
4 years
non-executive
director,
independent
28 April 2021
6.
Mr. Ion-Cosmin
Petrescu
4 years
non-executive
director
28 April 2021
7.
Ms. Valentina-Elena
Siclovan
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,
independent
24 July 2023
Source: Electrica
Table 11. Members of the BoD 26 January 2024 – 31 December 2024
No. crt
Name
Term of office (until 26
January 2028)
Status
Starting date of
the first mandate
1.
Mr. Dumitru Chirita
26.01.2024 – 19.10.2024
President, (26.01.2024-
18.09.2024),
non-executive director
26 January 2024
2.
Dl. Marian Cristian
Mocanu
4 years
non-executive director,
independent
26 January 2024
3.
Mrs. Georgiana
Bogasievici
4 years
non-executive director
26 January 2024
4.
Mrs. Valentina –
Elena Siclovan
4 years
non-executive director,
independent
24 July 2023
5.
Mr. Adrian-Florin
Lotrean
4 years
non-executive director,
independent
28 April 2021
6.
Mr. Dragos-
Valentin Neacsu
4 years
non-executive director,
independent
28 April 2021
7.
Mr. Ion-Cosmin
Petrescu
4 years
President, (19.09.2024-
28.10.2024),
non-executive directorv
28 April 2021
8.
Mr. Mihai Diaconu
On February 5, 2025,
the General Meeting of
Shareholders approves
the appointment of
Mr. Mihai Diaconu as a
member of the Board
of Directors, with a term
equal to the remaining
duration of the mandate
corresponding to the
vacant position, namely
until January 26, 2028
President, (29.10.2024-
31.12.2024),
non-executive director
21 October 2024
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 BoD members:
Mihai Diaconu
—
Chairman, Non-Executive Director, appointed on 21 October 2024 and member of
the Strategy and Corporate Governance Committee.
Born in 1984, Mr. Diaconu has almost 15 years of experience in the field of central public
administration, holding several public management positions, namely Deputy Director General,
Deputy Secretary General and Secretary General in the Ministry of Finance.
Since February 2022, Mr. Diaconu has held the position of Secretary of State in the Ministry of
Finance. In this capacity, he coordinated the activity of drafting and approving draft normative
acts in the field of competence of the Ministry of Finance, the process of drafting/implementing
the strategy in the field of information and communications technology for improving services
in the field of public finance, as well as the activity regarding state aid schemes implemented by
the Ministry of Finance.
Currently, Mr. Diaconu coordinates the activity regarding the management of Romania’s
international arbitration and judicial files, the activity regarding the analysis/approval of the
revenue and expenditure budgets of public enterprises in the central administration and the
monitoring of their economic and financial indicators, as well as the activity of updating the
centralized inventory of state public and private assets. His professional activity within the Ministry
of Finance began in 2014 when he was hired as a personal advisor at the office of the Minister of
Public Finance and was later appointed Deputy Secretary General.
In terms of administrative management, Mr. Diaconu held the position of member of the Boards of
Directors of: ”Telecomunicatii C.F.R.” S.A, in the periods February – June 2021 and April – September
2022, and of the National Credit Guarantee Fund for Small and Medium-sized Enterprises, in the
period June 2018 – December 2019.
From April 2022 to the present, Mr. Diaconu is a member of the Interministerial Committee for
Finance, Guarantees and Insurance.
Mr. Diaconu is a graduate of the University of Bucharest - Faculty of Administration and Business,
where he also holds a master’s degree in public administration management. He has also
completed training and professional development programs organized by the National Institute
of Administration and the Romanian Diplomatic Institute.
Currently, Mr. Mihai Diaconu is a non-executive director, Chairman of the Board of Directors and
member of the Strategy and Governance Committee.
Dragos-Valentin
Neacsu
—
Non-executive, independent
director since 28 April 2021,
member of the Audit and
Risk Committee, member of
the Strategy and Corporate
Governance Committee
and President of the Climate
Governance and Public Policies
Committee.
Born in 1965, Mr. Dragos Neacsu has extensive professional experience in the field of investment management and
financial markets, both in national and international organizations. At the recommendation of the Board of Directors of the
Association of Independent Directors of Romania, Mr. Neacsu is part of the team of sustainability champions, organized
by the European Confederation of Directors (ecoDa), to support the views of the independent directors community, in
the context of the European Commission consultations, regarding the Omnibus package to simplify existing European
regulations, which intends to reduce reporting requirements, taking into account the excessive bureaucracy associated
with the implementation process of the Taxonomy-CSRD-CSDDD trinomial.
In parallel, Mr. Neacsu is the CEO of the GS1 Romania Association, part of an international network that brings together 118
national non-profit associations, with over 50 years of activity in the development and promotion of coding, serialization
and traceability standards in business communication.
Between February 2020 and February 2024, Mr. Neacsu held the positions of independent member of the Board of Directors
of the Bucharest Stock Exchange S.A., member of the Audit Committee and president of the Exchange’s Appeals Committee.
Until October 2019, Mr. Neacsu held the position of Executive General Director, President of the Directorate of SAI Erste
Asset Management SA, previously being Director of Financial Services of Deloitte Consultanta SRL. Between February and
September 2005, he was Minister Secretary of State, head of the State Treasury within the Ministry of Public Finance. Between
July 1998 and February 2005, he held the position of President - General Director 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), Independent non-executive member of the
Supervisory Board of BCR Pensii, Private Pension Fund Management Company S.A. (between 2009-2019), Non-executive
member of CEC Bank S.A Board (between 2005-2006), Member of the Stock Exchange Council (between 2001-2004), of
the first Board of Directors after demutualization (2005) and between 2021-2024, as well as an independent non-executive
member of the C.A. FINS I.F.N S.A (from 2018-present), Member of the Board of Directors of the Romanian Business Leaders
Foundation (2017-2023), member of the Board of the „Merito” project (from 2017-present), Independent non-executive
member of the C.A. FINS I.F.N S.A (from 2018-present).
He is part of the first generation (1994-1995) of the Romanian-Canadian MBA program, launched in cooperation by the
Canadian universities UQAM and McGill, together with the Bucharest Academy of Economic Studies and is a graduate of
the Bucharest Construction Institute (currently the Technical University), class of 1989.
Dragos-Valentin Neacsu is an independent non-executive member of the Board of Directors since April 28, 2021, from 6 May
2021 he was elected a member of the Audit and Risk Committee until 31 July 2023, on 16 May 2023 he was elected a member
of the Strategy and Corporate Governance Committeand on 27 January 2023 he was appointed president of the Climate
Governance and Public Policies Committee.
He was re-elected by Electrica’s Ordinary General Meeting of Shareholders from 26 January 2024.
Currently Mr. Neacsu is a non-executive independent director, Vice-president of the Board of Directors, Chair of the Climate
Governance
Born in 1980, Currently Mr. Lotrean holds the position of coordinating associate of Infinexa Restructuring SPRL
and has extensive professional experience in the field of insolvency, coordinating, as an insolvency practitioner,
complex restructuring projects aimed at the production of heat and electricity in a cogeneration system (for
clients such as CET ARAD SA , Electrocentrale Constanta SA), being a consultant to the judicial administrator
of Electrocentrale Bucuresti SA and coordinating the Hidroserv S.A. restructuring procedure.
In terms of corporate management, Mr. Lotrean had a significant impact as President of the Board of Directors
of Compania Municipale 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 and 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 an insolvency
practitioner in the professional civil society Casa de Insolventa Transilvania S.P.R.L where he participated in
the management of projects regarding over 50 commercial 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.
He was re-elected by Electrica’s Ordinary General Meeting of Shareholders from 26 January 2024.
Currently Mr. Lotrean is a non-executive independent director, Vice-president of the Board of Directors, Chair
of the Nomination and Remuneration Committee and member of the Audit and Risk Committee.
Adrian-Florin
Lotrean
—
Non-executive, independent
director since 28 April 2021, the
Chairman of the Nomination
and Remuneration Committee
and member of the Strategy
and Corporate Governance
Committee.
Ion-Cosmin
Petrescu
—
Non-executive director since
28 April 2021, member of the
Nomination and Remuneration
Committee and of the Audit
and Risk Committee.
Cristian Mocanu
—
Non-executive director since
26 January 2024, Chair of the
the Strategy and Corporate
Governance Committee and
member of the Nomination and
Remuneration Committee.
Born in 1983, Mr. Mocanu, 41 years old, 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.
Currently Mr. Cristian Mocanu is a non-executive director, Chair of the the Strategy and Corporate Governance
Committee and member of the Nomination and Remuneration Committee.
Born in 1978, Mr. Cosmin Petrescu holds an extensive professional experience in business development, sales
and management. Mr. Cosmin Petrescu presently activates in FNGCIMM, 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 and
starting 6 May 2021 was elected member of the Nomination and Remuneration Committee. He was re-elected
by Electrica’s Ordinary General Meeting of Shareholders from 26 January 2024.
Currently Mr. Petrescu is a non-executive director, Member of the Nomination and Remuneration Committee
and Member of the Audit and Risk Committee.
Georgiana
Bogasievici
—
Non-executive director since
26 January 2024, member of
the Climate Governance and
Public Policies Committee.
Valentina Elena
Siclovan
—
Non-executive, independent
director from 24 July 2023 and
Member of the Audit and Risk
Committee.
Born in 1991, Mrs. 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 also attended the professional training and development course „Communication, protocol and etiquette
in diplomacy” at the Romanian Diplomatic Institute.
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.
Mrs. 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.
Currently Mrs. Georgiana Bogasievici is a non-executive director since 26 January 2024, member of the
Climate Governance and Public Policies Committee.
Born in 1960, Mrs. Siclovan, Non-executive independent director, 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.
Mrs. Siclovan 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 till 2000 Mrs. Siclovan 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.
Mrs. Siclovan 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).
On 20 December 2023 Mrs. Siclovan 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.
As of the report date (March 27, 2025), Ms. Siclovan was an independent non-executive director, Chair of the
Audit and Risk Committee, and a member of the Climate Governance and Public Policies Committee. On the
same date, the Board acknowledged Ms. Siclovan’s resignation from her position as a member of the Board of
Directors of the Company and as Chair of the Audit and Risk Advisory Committee, effective May 1, 2025 (with
April 30, 2025, being the last day of her mandate).
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Four consultative committees support the activity
of
the
BoD,
respectively
the
Nomination
and
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.
The consultative committees’ members are elected
for a period of one year. Changes in the composition
of the committees during this period 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 and in the Company’s
Corporate Governance Code.
The composition of the committees during 2024, as
it follows:
01 January – 26 January 2024
Nomination and Remuneration Committee:
• Mr. Adrian-Florin Lotrean – Chairman;
• Mr. Radu Mircea Florescu – Member;
• Mr. Ion Cosmin Petrescu – Member.
Audit and Risk Committee:
• Mr. Radu Mircea Florescu - Chairman;
• Mr. Dragos-Valentin Neacsu – Member;
• Mr. Iulian Cristian Bosoanca – Member.
Strategy and Corporate Governance Committee:
• Mr. Gicu Iorga - Chairman;
• Mr. Dragos-Valentin Neacsu – Member;
• Mr. Adrian-Florin Lotrean – Member.
Climate Governance and Public Policies Committee:
• Mr. Dragos-Valentin Neacsu – Chairman;
• Mr. Radu Florescu – Member;
• Mr. Iulian Cristian Bosoanca – Member.
12 February – 29 October 2024
Nomination and Remuneration Committee:
• Mr. Adrian-Florin Lotrean – Chairman;
• Mr. Marian - Cristian Mocanu – Member;
• Mr. Ion Cosmin Petrescu – Member.
Audit and Risk Committee:
• Ms. Valentina Elena Siclovan - Chairman;
• Mr. Adrian-Florin Lotrean – Member;
• Mr. Ion Cosmin Petrescu – Member.
Strategy and Corporate Governance Committee:
• Mr. Marian - Cristian Mocanu - Chairman;
• Mr. Dragos Valentin Neacsu – Member;
• Mr. Dumitru Chirita – Member until 19.10.2024;
• Ms. Valentina Elena Siclovan between 21.10.2024-
28.10.2024.
Climate Governance and Public Policies Committee:
• Mr. Dragos-Valentin Neacsu – Chairman;
• Mrs. Valentina - Elena Siclovan – Member;
• Mrs. Georgiana Bogasievici – Member.
29 October – 31 December 2024
Nomination and Remuneration Committee:
• Mr. Adrian-Florin Lotrean – Chairman;
• Mr. Marian - Cristian Mocanu – Member;
• Mr. Ion Cosmin Petrescu – Member.
Audit and Risk Committee:
• Ms. Valentina Elena Siclovan - Chairman;
• Mr. Adrian-Florin Lotrean – Member;
• Mr. Ion Cosmin Petrescu – Member.
Strategy and Corporate Governance Committee:
• Mr. Marian - Cristian Mocanu - Chairman;
• Mr. Dragos Valentin Neacsu – Member;
• Mr. Mihai Diaconu – Member.
Climate Governance and Public Policies
Committee:
• Mr. Dragos-Valentin Neacsu – Chairman;
• Mrs. Valentina - Elena Siclovan – Member;
• Mrs. Georgiana Bogasievici – Member.
At the issue date of this report, the
composition of the BoD Committees is as
follows:
Nomination and Remuneration Committee:
• Mr. Adrian-Florin Lotrean – Chairman;
• Mr. Marian -Cristian Mocanu – Member;
• Mr. Ion Cosmin Petrescu – Member.
Audit and Risk Committee:
• Ms. Valentina Elena Siclovan - Chairman;
• Mr. Adrian-Florin Lotrean – Member;
• Mr. Ion Cosmin Petrescu – Member.
Strategy and Corporate Governance Committee:
• Mr. Marian -Cristian Mocanu - Chairman;
• Mr. Dragos Valentin Neacsu – Member;
• Mr. Mihai Diaconu – Member.
Climate Governance and Public Policies Committee:
• Mr. Dragos-Valentin Neacsu – Chairman;
• Ms. Valentina Elena Siclovan – Member;
• Mrs. Georgiana Bogasievici – Member.
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 2024, among the BoD members,
Mr. Dragos-Valentin Neacsu held a number of 20
ELSA shares and Mr. Cristian Mocanu held 500 ELSA
shares, purchased during 2022-2023.
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
years.
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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
purpose of the evaluation is to provide members 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 during 2024,
with the support of an external consultant, Amrop.
Together with the consultant, it was decided that
the evaluation process would consist of detailed
interviews and discussions with each member of
the board and the general secretariat, an analysis
of existing documents and processes, and an online
questionnaire completed by the board members
and other stakeholders. All stages were completed
in December 2024, January 2025, and February 2025.
The board members who participated in the
evaluation
process
are:
• Mr. Mihai Diaconu, Presedinte CA;
• Mrs. Valentina Siclovan;
• Mrs. Georgiana Bogasievici;
• Mr. Cristian Mocanu;
• Mr. Dragos-Valentin Neacsu;
• Mr. Adrian-Florin Lotrean;
• Mr. Cosmin-Ion Petrescu.
The evaluation process focused on the following 11
dimensions relevant to the activity of the Board of
Directors and the market context of Electrica SA:
• Composition and expertise of the BoD;
• Quality of information and materials;
• Agenda and Board meetings;
• Board coordination;
• BoD committees;
• Interactions between the BoD and the Executive
team;
• Dynamics of the interactions and processes;
• Performance management;
• Strategic Management and Risk Management;
• Innovation and digitalization;
• Sustainability.
From the analysis of the results of the evaluation
process, it was found that the following points
represent positive aspects in the activity of the Board
of Directors, contributing to its proper functioning:
• Discussions are open and there are no situations
in which contradictory points of view are not
discussed;
• There is mutual respect that facilitates cohesion,
conflict avoidance and decision-making;
• Each member of the Board of Directors feels that
he is listened to and that his experience in the
areas of competence is taken into account and is
taken into account in the decision-making of the
Board of Directors;
• The members of the Board of Directors have
different
and
complementary
professional
experiences, and this ensures good expertise of
the Board in all areas of responsibility;
• The experience and skills of each member are
well used both within the Committees and at the
level of the Board of Directors meetings;
• Active involvement of all members and the
constructive role of the Chairman of the Board of
Directors;
• The Advisory Committees have members with
the necessary experience and function well;
• The committees relate well with the Executive
Team and the management responsible for the
respective field;
• The level of transparency is high;
• Committee meetings are held in the presence of
the other members of the Board.
4.5 The activity of ELSA’s Board of Directors and of its
consultative committees in 2024
In 2024 the Board of Directors met 32 times; of
these, 15 meetings were organized with the physical
presence of the members, 9 were held by conference
call, in accordance with Art. 18 para. 20 of the
company’s Articles of Association and 8 meetings
were organized electronically.
Below are presented the Board members’ attendance
(in person, by conference call, or by e-mail) in the
meetings of the Board of Directors and its committees
in 2024.
Table 12. Participation of the BoD members at the meetings and of the committees in 2024
Name
The Board of
Directors
(no. of
meetings 32)
The Audit
and Risk
Committee
(no. of
meetings -
20)
The
Nomination
and
Remuneration
Committee
(no. of
meetings - 18)
The Strategy
and
Corporate
Governance
Committee
(no. of
meetings - 19
Climate
Governance
and Public
Policies
Committee
(no. of
meeting – 10)
Mihai Diaconu
8
-
-
4
-
Valentina Elena Siclovan
32
19
-
1
7
Georgiana Bogasievici
30
-
-
-
8
Adrian-Florin Lotrean
32
19
18
1
-
Cristian Mocanu
30
-
16
18
-
Dragos-Valentin Neacsu
32
-
-
19
10
Ion-Cosmin Petrescu
32
19
18
-
-
Iulian Cristian Bosoanca
2
1
-
-
2
Dumitru Chirita
20
-
-
12
-
Radu Mircea Florescu
2
1
2
-
-
Gicu Iorga
2
-
-
1
-
Source: Electrica
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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 Committee has the following duties regarding
remuneration:
• advises the Board in relation to the remuneration,
incentive and compensation policies of the
company;
• advises the Board regarding the periodic review
of the remuneration policy for Board members
and executive managers;
• advises the Board in relation to the remuneration
of the CEO and other executive managers,
including the main remuneration components,
annual and long term performance objectives
and regarding evaluation methodology;
• makes recommendations to the Board on the
remuneration of subsidiaries’ board members
and the general limits of remuneration for
subsidiaries’
executive
management;
• monitors compensation trends within areas
relevant to the Group;
• oversees the remuneration process of the
subsidiaries’ chief executive officer and executive
managers according to the nomination and
remuneration policy at the Group level;
• 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;
• oversees the annual evaluation process of the
Board of Directors’ activity.
The Nomination and Remuneration Committee met
18 times during 2024, among the main aspects on
which the activity of the Committee focused, were
the following:
• Analysis
of
ELSA
executive
managers’
KPIs
achievement for 2023 and establishing of the KPIs
for 2024;
• Supervising the evaluation process of the Board
of Directors’ activity during 2023 and 2024;
• Endorsing the proposals regarding the nomination
of subsidiaries’ Board members;
• Analysis of proposals regarding the position of
provisional Board member and the proposal to
the GMS of the Board members.
The Audit and Risk Committee
The Committee is composed of three non-executive
BoD members, two of them being independent. The
Committee’s composition provided the necessary
expertise in finance and risk management, according
to legal requirements.
The main role of the Committee is to support
the Board in fulfilling its duties of verifying the
efficiency of company’s financial reporting, internal
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
accurate, balanced and comprehensive and provide
all the necessary information for the shareholders’
evaluation of the financial performance.
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
content and presentation of such statements or
information;
• regularly reviews the adequacy of the Group’s
accounting policies;
Several aspects for improvement were also identified:
• The relationship between the Board of Directors
and the Executive Team can be improved and
would increase the level of trust and transparency
at the level of the entire Electrica group;
• Identifying opportunities for informal interactions,
outside of the Board meetings, would lead to
better relations between Board members and
greater trust between them;
• Strengthening the Executive Team and increasing
organizational capabilities in several key areas
(e.g. Human Resources, IT) would give Electrica
the chance to strengthen the organization’s
culture and reduce the risks to which it is exposed;
• A more active role in development plans and in
prioritizing long-term strategies would provide
the Board of Directors with the necessary tools for
creating added value;
• Improving the relationship with the Subsidiaries’
management and cascading good practices and
strategic vision from the Board of Directors to the
subsidiaries would lead to better coordination
and efficiency;
• Performance management that would also be
a tool to increase the organization’s capacity
to develop leaders and specialists could have
positive long-term results;
• Establishing clear eligibility criteria for both the
members of the Board of Directors and for the
members who are part of the boards of directors
of the subsidiaries would increase the board’s
capacity to contribute to the strategic direction of
the Electrica SA group and to protect the interests
of investors.
Following the evaluation, the Consultant submitted
to the Board of Directors a detailed report that
includes the points mentioned above as well as
recommendations for addressing the aspects to be
improved.
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’
remuneration.
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;
• reviews the implementation of the nomination
policy, submits a report to the Board on its
implementation and presents a summary of this
report in the Directors’ Report;
• advises the Board on the appointment and
dismissal of the Chief Executive Officer, makes
recommendations
on
the
appointment
and dismissal of the company’s executive
management team after consulting with the
Chief Executive Officer, and makes proposals on
the appointment and dismissal of subsidiaries’
board of directors members in accordance with
the Group Governance Policy;
• recommends to the Board policies in the
human resources field, including those covering
recruitment and dismissal, talent management
and development and succession planning
across the company and its subsidiaries (the
Group);
• recommends to the Board a succession policy,
both for the members of the board and for the
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
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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
d ep a rtment.
• Analysis and approval of financing proposals at
Electrica and the Group level;
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 following duties in terms of
strategy:
• 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;
• advises the Board in monitoring and assessing 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.
Also, the Committee has duties in terms of 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
Association
and
makes
recommendations
to the Board on relevant amendments to the
company’s corporate governance policy and
documentation;
• submits the Group Governance Policy to the Board
for approval and regularly reviews it thereafter;
• reviews the company’s Delegation of Authorities
policy and the company’s Delegation of Authority
standard in order to ensure that the delegation
• reviews the financial forecast policy of the
Company and recommends, to approval, towards
Board of Directors;
• reviews and advises the Board on whether the
content of the annual report, taken as a whole,
represents a fair, balanced and understandable
account for shareholders and provides them
with the information necessary to assess the
Company’s
performance.
Regarding the audit and internal control matters,
the Committee has the following responsibilities:
• endorses, for the Board’s approval, the annual
plan at Group level, based on the annual risk
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;
• periodically reviews the charter and internal
audit manual and submits them to the Board, for
approval;
• advises the Board on the appointment, dismissal
and remuneration of the Head of Internal Audit
Department;
• monitors
the
adequacy,
effectiveness
and
independence of the internal audit function;
• makes
recommendations
to
the
Board
on
the appointment, rotation or dismissal of the
company’s
external
auditor;
• 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;
• performs any other activities established by the
Board and the law;
• regularly reviews the adequacy of the key internal
control policies, including fraud detection and
bribe prevention policies;
• reviews the operations between affiliated parties
in accordance with a policy drafted by the
Committee and approved by the Board;
• analyzes
the
annual
report
prepared
by
the Internal Audit Department and/or Risk
Management, which evaluates the effectiveness
of the internal control system within the Group.
The Committee has the following responsibilities
concerning risk management matters:
• reviews regularly the main risks facing the
company and the Group, recommending to the
Board adequate policies for risks identification,
mapping, management and mitigation;
• 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
the Group;
• makes
recommendations
to
the
Board
on
financing
methods,
including
proposals
for
contracting any type of loans and securities
associated with these loans;
• makes
recommendations
to
the
Board
regarding
major
economic
transactions
within the authority of the General Meeting of
Shareholders and assesses the associated risks
regarding such transactions.
The Audit and Risk Committee met 20 times during
2024, 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 2023, as well as the financial
statements of company’s subsidiaries for the
financial year of 2023, 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 2024 and
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(9) Defining
a
set
of
long-term
performance
indicators and some key performance indicators
to help reaching the goal of ”zero impact of the
greenhouse gas emissions caused by the Page
2 of 3 Charter of the Climate Governance and
Public Affairs Committee business of the Electrica
Group on the environment”, to be submitted to
the Board for approval;
(10) Conveying
some
recommendations
with
respect to setting the annual targets for the key
performance indicators set for the executive
management,
following
consultations
with
the executive management and after having
obtained the latter’s commitment;
(11) Ensuring the alignment of the methods for
rewarding the executive management in order
to promote the Company’s sustainability and
welfare, on the long term. The Committee shall
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;
(12) Monitoring and assessing the accomplishment
rate of the key performance indicators related to
the climate goals, and issuing recommendations
for the Board with respect to the review of such
goals, or to taking sanctioning measures, as
applicable;
(13) Periodically reviewing the internal policies and
regulations with an impact on the climate goals,
and drafting recommendations intended for
the Board in relation to the adequacy of the
investment level within the Group, as those are
necessary to reach the climate goals within the
set timeframe;
(14) Ensuring a climate of trust, by cooperating
with the investors in order to understand
their topics of interest and priorities, with the
purpose of accomplishing an effective climate
governancea.
The
Climate
Governance
and
Public
Policies
Committee met 10 times during the year 2024,
among the main aspects on which the Committee’s
activity was focused, including the following:
• Endorsement of the Sustainability Strategy of the
Electrica Group, 2024-2030
• Analysis and proposal of ESG partnerships
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.
During the year 2024, the Committee met 19 times,
among the main aspects on which the activity of the
Committee focused, being the following:
• Analysis of the opportunities and the efficiency
of investments in different renewable production
capacities
and
participation
in
various
competitive processes in this regard;
• Endorsement of the amendments to the ELSA’s
Articles of Association;
• Endorsement of the Revenue and Expenditure
Budget for the year 2024;
• Analysis of the revision of the Electrica Corporate
Strategy 2024-2030;
• Endorsement of the of changes to the Organization
Chart;
• Analysis and approval of M&A Project stages.
Climate
Governance
and
Public
Policies
C o m m i t t e e
The committee is made up of three non-executive
members of the CA, two of them being independent.
The Committee component provided expertise and
understanding of threats and opportunities arising
from climate change.
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
process within the Board, based on a proper
knowledge and understanding of the threats
and opportunities that arose as a result of the
climate
changes;
(5) Establishing the most effective way of integrating
considerations pertaining to climate change
within the organisational structures of the
Company;
(6) Monitoring
the
provision
of
a
continuous
assessment
process
by
the
executive
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;
(8) Ensuring
the
consistent,
transparent
communication
on
the
material
climate
risks identified to all stakeholders, especially
to
investors
and
to
the
regulatory
and
supervisory
authorities,
if
applicable.
Alexandru Aurelian Chiriță is a visionary leader and a leading professional in energy and corporate governance.
Since May 2022, he has held the position of CEO of Electrica S.A., the largest integrated electricity distribution,
supply and production group in Romania, with a mandate valid until December 31, 2026.
Under his leadership, Electrica has undergone an extensive strategic transformation process, oriented towards
digitalization, sustainability and sustainable growth. He coordinated the launch of the „Electrica 2030: Strategy
for a Sustainable and Innovative Future” strategy, initiated the implementation of a group-wide ESG program
and orchestrated the first green bond issue in the company’s history, intended to finance energy transition
projects. In 2024, at a symbolic moment when Electrica celebrated 10 years since its listing on the Bucharest
Stock Exchange and the London Stock Exchange, under his leadership, the company reached a record share
price of RON 16.30 and a market value of over RON 5.5 billion, confirming investors’ confidence in the adopted
strategic direction.
His previous professional background includes top positions at Hidroelectrica, where he held the roles of Legal
Manager and Data Protection Manager, managing critical compliance, regulatory and strategic litigation
issues. Alexandru Chiriță has also been actively involved in commercial arbitration and has developed
innovative entrepreneurial initiatives in the field of digital legal services.
His academic background is solid and diversified: he holds a degree in Law from the University of Bucharest,
holds two master’s degrees in European Union Law and European Law and Governance, and is pursuing
doctoral studies in Administrative Law at the National School of Political and Administrative Studies (SNSPA).
His international executive training is complemented by the completion of the Accelerated Management
Program at Yale School of Management, the Artificial Intelligence Programme at Saïd Business School,
University of Oxford and Board Practice & Directorship at Henley Business School.
An active member of prestigious professional organizations, he constantly promotes excellence in leadership,
professional ethics and technological innovation.
Through his dedication, vision and performance, Alexandru Aurelian Chiriță contributes essentially to
strengthening Electrica’s role as a regional leader in the transition to a sustainable and digitized energy
future, being a model of inspiration in the Romanian energy industry.
Alexandru-
Aurelian Chirita
—
Chief Executive Officer
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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,
as well as the other executives with mandates and also approves their empowerments.
The duties of the company’s directors (including those of the Managing Director) are laid down in the mandate
contracts on the basis of which the directors carry out their activities within ELSA, ELSA’s internal rules of
organisation and operation and the applicable legal provisions.
During the meetings held on 22 January 2024 and 25 March 2024, the ELSA Board of Directors decided to
extend the term of office granted to Mr. Alexandru - Aurelian Chirita, as Chief Executive Officer, under the
same conditions. On November 26, 2024, the ELSA Board of Directors decided to grant a term of office as Chief
Executive Officer until December 31, 2026 (inclusive).
During the same meeting, the ELSA Board of Directors decided to grant a mandate as Chief Financial Officer
to Mr. Stefan - Alexandru Frangulea, from February 28, 2025 until December 31, 2026 (inclusive).
On January 31, 2025, the second mandate contract of Mrs. Livioara Sujdea, Executive Director of the Distribution
Department, effectively ended, upon reaching the four-year term.
Following these changes, during 2024, ELSA’s executive directors, appointed under the terms of office, are
presented in the table below.
Table 13. ELSA’s Executive management during 2024, appointed on the basis of mandate contracts
Name
Function
The Executive Manager’s mandate
Alexandru-Aurelian Chirita
Chief Executive Officer
17 May 2022 – 31 December 2026
Stefan Alexandru Frangulea
Chief Financial Officer
4 January 2022 – 31 December 2026
Livioara Sujdea
Chief Distribution Officer
1 February 2017 – 31 January 2025
Ioana Andreea Lambru
Chief Business Development
Officer
15 March 2023 – 14 March 2027
Source: Electrica
More details on the in place executive managers’ biographies can be found on ELSA’s website in the section
https://www.electrica.ro/en/investors/corporate-governance/board-of-directors/.
According to the information held by ELSA, there is no contract, understanding or family relationship between
the executive managers of the Company and another person who may have contributed to their appointment
as executive managers.
According to available information, ELSA’s executive managers mentioned in this chapter have not been
involved, in the last five years, in any litigations or administrative proceedings related to their activity within
the company and neither to their capacity to fulfil their work-related duties in the Group.
Stefan Alexandru
Frangulea
—
Chief Financial Officer
Starting from March 15, 2023, Mrs. Ioana-Andreea Lambru took over the position of Business Development
Executive Officer, for a period of 4 years.
Mrs. 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, Mrs. Ioana-Andreea Lambru was, for
the last 6 years, the President of the Supervisory Board of the Hidroelectrica company.
Since taking on her role at Electrica, Ms. Lambru has played a key role in consolidating the Group’s energy
production segment. Her contributions include finalizing the strategic acquisitions and launching the
renewable energy projects (both solar and wind), and their integration into the parent company, the 2023
merger being a significant first step in this regard. She has also been instrumental in shaping Electrica Group’s
medium- and long-term strategic directions, as well as driving progress toward key goals in areas such as
electricity generation and supply, securing non-reimbursable funding, diversifying added value services, and
advancing digital solutions for the energy sector.
Starting with January 4, 2022, Mr. Ștefan Alexandru Frangulea has taken over the position of Chief Financial
Officer, and his mandate ends on 31 December 2026.
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).
After taking over the Mandate of Chief Financial Officer of Societatea Energetica Electrica SA on 4 January
2022, Stefan-Alexandru Frangulea played an important role in securing financings in equivalent of more than
1 Billion EUR to date to pre-finance the support scheme for the end consumers and the difference of actual
versus ex-ante price for Network Losses (NL) and to finance the development of green energy generation
business. He lead the finance team of the Group towards modernization of Enterprise Resource Planning (ERP)
and automation of consolidation of Financial Statements. Currently he leads the project regarding the first
Green Eurobond issuance of the Company.
Ioana Andreea
Lambru
—
Business Development Officer
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4.7 Remuneration of the Directors and of the Executive
Managers with mandate agreement
The remuneration of administrators and executive
directors within Electrica is carried out in accordance
with the provisions of the Remuneration Policy for
Administrators and Executive Directors (Policy) which
was approved by the Ordinary General Meeting of
Shareholders (OGMS).
The last revision of the Policy was approved during
the OGMS 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 CNR and describes the
main pillars of remuneration, as well as the terms,
conditions and non-financial benefits approved by
ELSA’s corporate bodies.
The remuneration policy has the following objectives:
• 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
compliance with the new BSE Corporate Governance
Code as of 31 December 2024.
Note: considering the fact that there are no mentions
for “Reason for non-compliance”, the corresponding
column has been removed from the table below.
Also, since the Compliance status is YES in all sections,
the column „YES/NO/PARTIALLY” is no longer present
in the table below:
Table 14. ELSA’s compliance with the provisions of the BSE Corporate Governance Code
No.
Provisions of the BSE Corporate
Governance Code
Other remarks
Section A
Responsibilities
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.
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 last update of ELSA’s CGC took place in July 2020.
The Corporate Governance Code was amended following
the resolution of the General Meeting of Shareholders (GMS)
on 25 April 2024, reflecting a reduction in share capital due
to the cancellation of treasury shares. This version came
into effect on 11 July, 2024.
Subsequently, on 5 February, 2025, the CGC was updated to
align the company’s business activities with the provisions
of the Order No. 377/2024 issued by the President of the
National Institute of Statistics, regarding the update of the
National Activities Classification of Economic ( NACE codes),
taking into account Delegated Regulation (EU) 2023.137 of
the European Commission, dated 10 October 2022, which
amends Regulation (EC) No. 1893/2006 of the European
Parliament
and
Council,
establishing
the
Statistical
Classification of Economic Activities (NACE – Revision 2)
The latest version of the Corporate Governance Code, ELSA
CGC, and the rules and regulations governing the Board
and its Committees are available on the company’s website
under the section Investors > Corporate Governance.
A.2.
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.
A.3.
The Board of Directors must consist of at
least five members.
ELSA’s BoD consists of seven members since 14 December
2015.
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No.
Provisions of the BSE Corporate
Governance Code
Other remarks
A.4.
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;
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.4.4. 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; 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.
No.
Provisions of the BSE Corporate
Governance Code
Other remarks
A.5.
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 and Investors > General Meeting of
Shareholders > GMS from 5 February 2025 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 where update are done when necessary .
A.6.
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.
A.7.
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.
A.8.
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,
2022 and 2024), or using a self-assessment questionnaire
(in 2016, 2018, 2019, 2021 and 2023).
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.9.
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 2024, please see chapter 4.5. of the Annual
Report.
A.10.
The corporate governance statement
must contain information on the exact
number of the independent members of
the Board of Directors.
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 2024 in chapter 4.4.
On ELSA’s website, in the section Investors > Corporate
Governance > Board of Directors, it is specified exactly which
members are independenti.
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No.
Provisions of the BSE Corporate
Governance Code
Other remarks
A.11.
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.
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, CNR has
a new component. Details of the composition of the RNC are
given in Chapter 4.4. of the Annual Report for 2024.
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
chairman, 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. of the
Annual Report for 2024.
No.
Provisions of the BSE Corporate
Governance Code
Other remarks
B.2.
The chairman 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 President until 26 January 2024.
At the date of this Report, the President of the Audit and Risk
Committee is Ms. Valetina Elena Siclovan starting with 12
February 2024.
B.3.
Among its responsibilities, the audit
committee must carry out an annual
assessment
of
the
internal
control
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.
B.4.
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.
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 assessment report for 2023 specified in the CGC was
presented and discussed by the Audit and Risk Committee
in the meeting on 28 February 2024.
The assessment report for 2024 specified in the CGC was
presented and discussed by the Audit and Risk Committee
in the meeting on 24 February 2025.
B.5.
The
audit
committee
must
assess
conflicts of interests in connection with
the transactions of the company and its
subsidiaries with related parties.
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 its
meeting on 24 March 2023.
The assessment report for 2023 specified in the CGC will be
presented and discussed by the Audit and Risk Committee
during its meeting on 29 April 2024.
The date of analysis of the report in question has not been
set for the 2024 Report.
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No.
Provisions of the BSE Corporate
Governance Code
Other remarks
B.6.
The audit committee must assess the
effectiveness of the internal control
system and risk management system.
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.
The evaluation report for the year 2023 was presented and
discussed by the Audit and Risk Committee at its meeting
on 28 February 2024.
The 2024 report was discussed on 24 February 2025.
Details regarding the ARC activity for the year 2024 are
presented in chapter 4.5 of the Annual Report.
B.7.
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.
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.
B.8.
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.
ARC reports periodically to the BoD.
B.9.
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.
Provisions on this matter are included in ELSA’s CGC and in
the Policy on Transactions with Related Parties., available in
the Investors > Corporate Governance > Policies and Other
Corporate Documents section
No.
Provisions of the BSE Corporate
Governance Code
Other remarks
B.10.
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.
The Policy regarding the transactions with Related Parties,
has been updated in April 2024and covers all the required
aspects, this is available in the Investors > Corporate
Governance > Policies and Other Corporate Documents
section.
B.11.
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.
The internal audit is carried out by the Internal Audit
Department,
a
structurally
separate
entity.
B.12.
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 Internal Audit Department reports functionally to the
BoD through the ARC, while administratively reports to the
CEO.
Section C
Fair rewards and motivation
C.1.
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.
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 27 April 2023.
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 years 2021, 2022 and 2023 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 2024, this report will be submitted to the consultative
vote of the GSM on 29 April 2025.
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Provisions of the BSE Corporate
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Other remarks
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.
Section D
Building value through investors’ relations
D.1.
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.
Starting with the listing in 2024 the company has both an
Investor Relations department and a dedicated section for
Investor Relations on its official website (in both Romanian
and English). All relevant information for investors, analysts
and the capital market, including all specifics from this
section. is published under the Investors section on ELSA’s
website.
Electrica was appreciated for the fourth consecutive year
in 2024 with the maximum grade at the Vektor evaluation,
Vektor being the indicator of the communication with
investors for listed companies, calculated by the Romanian
Investor Relations Association (RIRA) and published on the
Bucharest Stock Exchange (BSE).
D.2.
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 websitei.
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.
No.
Provisions of the BSE Corporate
Governance Code
Other remarks
D.3.
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 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.
D.4.
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.
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 most updated form
19 September 2024, in electronic form on ELSA website in
the section Investors > Corporate Governance > Corporate
Policies and other documents.
Also, the organization applicable rules of general meetings
of
shareholders
are
mentioned
in
each
convening
notice, published in accordance with the legal and
statutory requirements approximately 60 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
all the GMS (for the shareholders that are present in the
meeting room or remotely, through electronic means),
system used in meetings. The necessary instructions are
publicly available in the Procedure for the Use of Electronic
Means for Participation and Voting at the Electrica S.A. GMS,
in its latest version published on 19 September 2024, in the
Investor > General Meeting of shareholders section.
D.5.
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.
D.6.
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.7.
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.
In this respect, the agreement of the shareholders present
at the General Meetings was requested each time it was the
case.
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Provisions of the BSE Corporate
Governance Code
Other remarks
D.8.
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.
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.
D.9.
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.
ELSA organizes quarterly teleconferences with analysts and
investors and publishes presentations, audio recordings and
transcripts of the teleconferences, on the ELSA website, in
the section Investors > Results and Reports > Presentations
and other information.
D.10.
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.
Information regarding the CSR activities can be found online
on the company’s website, in the CSR section presented in
an integrated format.
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.
Source: Electrica
4.9 Implementing action plans undertaken by signing the
framework agreement with EBRD
The company’s initial public offering and dual
listing process involved the signing of a framework
agreement with the European Bank for Reconstruction
and Development (EBRD), which includes action
plans aiming at key dimensions for the company’s
transformation: developing a culture of integrity
and compliance, adopting best practices regarding
corporate
governance
and
incorporating
the
sustainability principles at Group level.
As for the development of a culture of integrity and
compliance at Electrica Group level, in line with the
EBRD standards, the year 2024 meant maintaining the
compliance framework from an ethical perspective
and updating it in accordance with the evolutions of
the social and legal context in which the organization
operates, through concerted actions on the following
main directions
• maintaining
the
organizational
structures
dedicated
to
ethics
and
compliance;
• 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.
Regarding the organizational structures dedicated to
ethics and compliance, these exist at each 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
members and the election of its members, please
see chapter 4.4
Nomination and Remuneration Policies
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 representatives.
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).
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The Policy was revised and approved at the ordinary
General meeting of shareholders (OGMS), presenting
transparently the elements of fixed and variable
remuneration, including financial and non-financial
benefits, in any form, that may be granted to Directors,
while ensuring the alignment of the interests of
administrators with those of shareholders.
In the year 2024, no changes were made to the
Policy; the remuneration limits previously established
by the General Shareholders’ Meeting (AGA) for
Administrators
and
Executive
Directors
remain
unchanged.
Starting from 2024, the company has published the
Remuneration Report for Administrators and Executive
Directors, in accordance with the provisions of Law
24/2017 regarding issuers of financial instruments
and market operations. The remuneration reports
have been approved by the Ordinary General
Meetings of Shareholders
(OGMS)
of
Electrica
(https://www.electrica.ro/en/investors/results-and-
reports/), with the aim of presenting an overview of
the remunerations and benefits granted and/or due
during the last financial year, to individual managers,
including newly recruited and former managers in
accordance with the Company Policy. By preparing
and publishing them, the Company maintains a
high level of transparency and accountability in the
management of remunerations.
For details regarding the remuneration of the Board
members and of the executive management of ELSA,
please see chapter 4.7.
Advisory Committees of the Board of Directors
n order to increase the effectiveness of its activity,
ELSA’s Board of Directors has established the following
committees with advisory role: the Nomination
and Remuneration Committee, the Audit and Risk
Committee, the Strategy and Corporate Governance
Committee and The Climate Governance and Public
Affairs Committee. For details, please see chapter
4.5.
Internal Control and Audit Framework
During 2024, the documentation governing the
internal audit activity at Electrica Group level
approved in November 2019 was maintained and
applied. This documentation was approved in its
first version by the BoD at the beginning of 2015 and
includes the Internal Audit Charter, the Audit Manual
and the Auditor’s Code of Ethics, its last update
dating from 2019. The documents are available on
ELSA’s website in the section The group > Internal
Audit. For details about the internal audit please see
chapter 4.10. and for more details on the internal
control, please see chapter 6.8.
ELSA’s Articles of Association
EBRD guidelines were included in the Articles of
Association of ELSA adopted on 4 July 2014.
In 2024, ELSA’s Articles of Association were updated
according to ELSA Board of Directors’ decisions
from 25 April 2024. All versions of the ELSA Articles of
Association adopted since the listing of the company
are available on its website in the section The group
> About > Articles of Association.
Clear lines of competence and responsibility
In the documentation of our own IMS (Integrated
Management System) developed at the level of ELSA
and its subsidiaries, which documents the processes,
subprocesses, and activities conducted, the workflow
for reporting, and the establishment of responsibilities
and dedicated competencies are described.
Code of Conduct
EBRD requirements are covered by the Code of
Ethics and professional Conduct. Regarding the
Whistleblowing Policy, it has been updated and is
available on the company’s website.
During 2024, follow-up actions were carried out
in relation to the provisions of the Code at group
level, or to prevent the occurrence of any forms of
conduct contrary to the provisions of the Code and
subsequent policies applicable at Group level.
Compliance with BSE Corporate Governance Code
On 4 January 2016, the new BSE Corporate Governance
Code entered into force and, on this occasion,
ELSA published on 8 January 2016 the „Corporate
Governance Code Apply or Explain” statement
according to the new provisions. ELSA publishes the
updated statement yearly and reports promptly to
the capital market any update of its compliance.
On its turn, ELSA adopted its own Corporate
Governance Code since the beginning of 2015, its last
update being approved by the BoD on 23 June 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 company’s website
in the Investors > Corporate Governance section
(https://www.electrica.ro/en/investors/corporate-
governance/). For details, please consider chapters
4.8 and 4.1.
At the same time, at the level of the Electrica Group,
a Market Abuse Policy was developed, adopted by all
subsidiaries.
The Environmental and Social Action Plan (ESAP)
During 2022 the Environmental and Social Action Plan
was updated by SAP as part of the Loan Agreement
signed by DEER with EBRD and guaranteed by
Electrica S.A. for financing DEER’s CAPEX Plan 2021 –
2023. The revised ESAP includes the following actions,
their status of implementation being also mentioned
in the following section.
Environmental,
health,
safety
management
structure and updated information on certification
Mapping
the
organizational
structure
of
environmental
and
social
management
from
group level to territorial structure level within DEER.
Presentation of this structure on the Group’s intranet
portal, along with the environmental and social
policy/policies presented on the page regarding
the implemented management systems and its
communication to all staff.
During 2024, DEER’s organizational structure includes
the SSM Department, with SSM Zonal Offices (MN,
TN and TS) and the Quality and Environmental
Management Office.
The
recertification
of
DEER’s
environmental
management system in accordance with the ISO
14001:2015 standard was obtained in April 2024.
During 2023, the Company maintained its certification
according to the requirements of the reference
standards ISO 14001:2015, ISO 45001:2018, granted by
the external certification body SRAC Cert.
Project-Specific Risk Assessments
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.
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
Continue to implement the legal requirements
in the field of environment regarding the impact
assessment for the investment projects included in
the CAPEX Plan. If DEER is to develop and implement
impact assessments under national legislation for
investment projects targeting certain installations,
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.
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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.
Environmental impact Studies were required under
Law 292/2018 Annex 5E for the development of
the distribution infrastructure included in DEER
Investment Plan until now.
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
projects carried out.
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.
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
work, based on the risk assessments carried out at the
level of Electrica group and the specific instructions
of the group companies. These plans must be
stunned by the contractor (general contractor) to all
sub-contractors
Technical projects including the section on social,
environmental and SSM risks and measures to
reduce them are part of the contract signed with
contractors and are binding on them and their
subcontractors.
Ensuring the accommodation of workers
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
accommodation
conditions
for
its
staff
are checked and controlled at the time of the
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 month before the
CIM is terminated. Restructuring programs that will
affect more than 100 employees, but less than 500
employees will be presented in the Annual Report.
The provisions on restructuring/reorganisation with
staff reduction at group level are included in the
Collective Labour Agreement signed with the trade
unions and renegotiated every two years.
In the case of reorganisation decisions, such
initiatives will be designed in accordance with best
practice and in compliance with national legislation.
In 2024 there were NO restructurings and NO
collective
redundancies.
Analysis of greenhouse gas emissions
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
status of measures and progress made in reducing
emissions is included in the Sustainability Report.
The determination of the level of greenhouse gas
(GHG) emissions for the activities of the Electrica
Group in the year 2024 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 2024.
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).
• Application/adherence
to
regulations
for
optimizing and improving energy consumption in
DEER’s administrative and technological spaces.
• Reduction
of
operating
time
through
the
appropriate
use
of
ITC
equipment.
• Increased selective collection and recovery of
recyclable waste.
• Installation of GPS, GPS monitoring (via the
SafeFleet platform), route optimization, fuel
consumption
monitoring,
periodic
technical
maintenance of the vehicle fleet.
• Reduction in the number of business-related
trips.
• Staff awareness through the inclusion of carbon
footprint reduction aspects in the topics covered
in the IMS - Environmental Protection training.
Energy management
Implementation and certification of the Energy
Management System, in accordance with the
requirements of ISO 50001 standard at the level of the
Electrica Group.
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 2025.
PCBs
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 2024, ensuring the
company’s compliance with the national elimination
program within the established timeframe (2028), as
per Government Decision 1497/2008. In 2024, a total
of 471 capacitors with PCB content and 1 transformer
with PCB content were removed from operation.
Thus, at the end of the year, a number of 618 PCB
capacitors were still in operation.
The process is monitored annually based on reports,
the results being published in the Electrica Group
Sustainability Report.
Health and Safety System and Policy
Maintaining the certification of the SSO Management
System according to ISO 45001:2018 for DEER. Revision
of OSH policy.
The certification of the Occupational Health and
Safety Management System in accordance with
the ISO 45001:2018 standard was maintained at
the DEER level in the year 2024, with no major non-
conformities recorded by the external certification
body SRAC Cert.
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Asbestos
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.
Community Health & Safety
After the implementation of the CAPEX Plan, the
distribution
infrastructure
must
be
inspected
periodically to verify that the equipment is properly
installed and that the elements that ensure the
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.
During the implementation of the Maintenance
Plan, DEER teams constantly check the distribution
infrastructure to ensure that the equipment is
installed properly/correctly and that the elements
that ensure the protection of the community (e.g.
against
electrocution)
are
functional/applied.
Any situation where it is found that there is an
unprotected equipment that could cause damage
to local communities is immediately remedieda.
Working at Height and Lockout / Grounding
Instruction
Ensuring that the SSM documentation providing rules
for the voltage removal and ensuring the working area
for electricity distribution networks 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
regulationse.
Visual Impacts
Assessing the visual impact for new networks in the
design phase and establishing mitigation measures,
e.g. moving lines underground, changing routes by
taking into account local communities’ perception of
their construction (through environmental and social
management plans) in compliance with national
legislation in this field.
At the design stage DEER adopts technical solutions
taking into account the visual impact of its future
distribution installations (replacement of overhead
power lines with underground cables), in accordance
with the applicable legal provisions, especially at the
community level.
Emergency Preparedness and Response
Checking the emergency plans and ensuring the
endowment of all locations with extinguishers within
the validity term, in accordance with the provisions of
the legislation in force.
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;
regular entry for all categories of employees, in
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 providers;
maintenance of unobstructed access on evacuation
routes; additional actions to prevent fires for the hot
and cold season.
Noise monitoring
Monitoring the noise level for areas with high
sensitivity (residential, hospitals, schools) that claim
the noise level generated by DEER equipment and
establishing and implementing mitigation/reduction
measures, if necessary (if measurements indicate
overruns of the legislated level).
According
to
the
instruction
“DEER-I3-PS-06
-
Environmental
Protection
Control”,
a
“Noise
Measurement Program” is drawn up annually. Sound
level meters are available at each branch level, and
the noise measurement program is planned and
implemented during 2024. There is evidence of these
noise measurements in the “Noise Level Monitoring
Register”, found at the branch level.
Electromagnetic Fields
Continue
monitoring
potential
impacts
from
electromagnetic
fields
(EMF)
from
transformer
stations and transmission lines in compliance with
National legislation with respect to EMF.
There are studies on electromagnetic fields for the
distribution infrastructure of DEER indicating that
they are within the limits of national legislation.
DEER analyzes options for including electromagnetic
field measurements for new installations in the
commissioning process and for independent studies.
Land Acquisition Framework
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
program.
No new land surveys were required for the
development of the distribution infrastructure that is
the subject of the Investment Plan so far.
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
Bird
Mortality Resulting from Interaction with Electrical
Installations,’ based on alerts from SCADA systems
and field inspections to identify carcasses. According
to the provisions of Annex 1 of the instruction,
the ‚Bird Mortality Monitoring Register Resulting
from Interaction with Electrical Installations’ was
developed at the level of each branch for the year
2024.
The bird mortality situation in 2024 at the DEER level
is as follows:
• 203 incidents resulting from bird interaction with
electrical installations (collision/electrocution)
• 230 deceased birds (mostly crows, storks, rooks).
Avoiding and mitigating against bird deaths
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
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conductor, the installation of insulating sheaths, for
the protection of all bird species.
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 protocol should
define the internal communication/escalation chain,
the notification of relevant institutions with regard
to discovered objects/sites, the information of the
personnel involved in the projects on the possibility of
such discoveries and the way of surrounding the area
in order to protect against destruction or alteration
of the discoveries, where necessary. The protocol will
be aligned with the rules for the application of Law
50/1991 on the authorization of construction works.
The accidental Discovery Protocol is part of all DEER
contracts as a separate section/clause.
Update Stakeholder Engagement Policy (SEP)
Updating
the
engagement
methods
used
in
accordance with the policy in order to align with
what is actually done and developing the section on
complaints and integrity warnings.
The policy Regarding transactions with affiliated
parties has been updated: DEER-POL-ET-7.
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 series of internal procedures and
work instructions for each party involved in the
implementation of the Investment Programs. Also,
on the company’s website there is the company’s
Development Plan approved for a period of 10 years.
A unitary mechanism for monitoring complaints/
complaints
Development and implementation of a unitary
IT system at DEER level of registration, analysis,
resolution in their legal framework in accordance
with the legal requirements (ANRE). The complaints
registered directly with DEER will be recognized
and resolved in accordance with the regulations
in force (ANRE) (between 15 days and 30 days to
respond, depending on the nature of the complaint/
complaint).
The mechanism for monitoring complaints is defined
according to the regulations in force and available on
DEER website. Records of complaints and complaints
are kept and submitted to ANRE regulator upon
request or during the performed controls.
Starting with May 2021, there is, at the DEER level, the
RUR application, the Single Application Register.
Community Guide to Security
Develop a guide that contains relevant information
about the process of electricity distribution. The guide
addresses with priority the local communities 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.
The DEER Guide was created, informative material on
DEER activities, as well as aspects related to energy
theft, safety measures around electrical installations.
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 2024
The Internal Audit Department is responsible for
conducting risk-based audit missions at Group
companies’
level.
The Internal Audit Department 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 2024 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 2024, 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 the activity of administration
and recruitment of personnel, Audit of health and
safety
compliance
and
management
of
fixed
assets. 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 2024, the Internal Audit Department team
consisted of one person with management role, one
person with a full – time role and two persons with
part time work (2h/week).
Among the most important audit missions carried
out in 2024 are:
1. Evaluation
and
auditing
of
personnel
administration and recruitment activities. The
audit report contains 3 findings of which 0 with
high
impact;
2. Evaluation and auditing of health and safety
activities. The audit report contains 4 findings of
which 0 with high impact;
3. Evaluation and auditing of the fixed assets
management process. The audit report contains
4 findings of which 0 with high impact;
4. Three “follow-up” missions were carried out,
which were aimed to identify and monitor
the
implementation
degree
of
the
audit
recommendations related to the issued reports;
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5. At the request of the Management Board, two
ad hoc missions were carried out, as follows: an
EFSA-wide mission, carried out in a joint ELSA –
EFSA team, and a DEER mission, carried out by
the ELSA team.
6. In
accordance
with
the
whistleblowing
procedure, 16 whistleblowers were received
through the „whistleblower” system. Of the
total number of warnings received in 2024, 10
were evaluated, 3 were classified as „ranked”,
according to the provisions of Law 361/2022, and
3 warnings received towards the end of the year
are still under analysis at the internal structures
designated responsible.
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 Department works together with the
audited structures in order to draw up the action
plans aimed to reduce or eliminate the identified
risks.
5. OPERATING ACTIVITY OF ELECTRICA
IN 2024
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5.1 Operating segments
The operations of each reportable segment are summarized below.
Table 15. 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 and wind
turbines)
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 2024
Source: Electrica
Note: The figure refers to the company’s number of consumption places/users at 31 December 2024
DISTRIBUTION SEGMENT
Electrica Group’s distribution segment, starting with 1st of January 2021 refers to the activity of DEER (with the
following network areas: Transylvania North, Transylvania South and Muntenia North) and SERV.
The electricity distribution segment is a regulated area of activity, in which operations are conducted in a
geographically limited area in accordance with the concession agreement, the nature of the services provided,
and the specific obligations are stipulated in the license conditions of the concessionaire operator. Thus, the
electricity distribution subsidiary of Electrica Group is the energy distribution operator in Transylvania North
(Cluj, Maramures, Satu Mare, Salaj, Bihor and Bistrita-Nasaud counties), Transylvania South (Brasov, Alba,
Sibiu, Mures, Harghita and Covasna counties) and Muntenia North (Prahova, Buzau, Dambovita, Braila, Galati
and Vrancea counties), operating electrical installation with voltages between 0.4 kV and 110 kV.
DEER holds the exclusive electricity distribution license in these regions of network areas valid until 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 specific distribution tariffs are determined and approved by ANRE based on the “tariff basket cap” method
as set out in ANRE Order no. 169/18 September 2018 regarding the approval of the tariff setting methodology
for the electricity distribution service (applicable in the fourth regulatory period 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.
The regulatory method “tariff basket cap” aims to avoid significant fluctuations in the tariffs applied to the
users for electricity distribution. The model for determining the regulated income is based on the principle of
remunerating in tariffs the justifiable costs recorded by the distribution system operator, the main source of
profit of the distribution company being the rate of return of capital invested in the distribution activity.
The tariffs are adjusted annually, taking into account the operational performance achieved, the quantities
of electricity distributed, the quantities and the purchase price of electricity needed to cover network losses
(NL), controllable and noncontrollable costs, the change in reactive energy revenues from forecasted values,
the depreciation and carrying out expected capitalizable expenses, the changes in actual gross profit from
other activities compared to the forecasted one, as well as the corrections in previous periods carried out
according to the methodology.
On 31 December 2024, the Group was in a surplus position, estimated at about RON 340 mn. (representing
corrections related to the year 2024, without the NL capitalization component), which will be recovered
through the distribution tariffs of the following years.
The fourth regulatory period – RP4 started on January 1, 2019 and ended on December 31, 2023, the year 2024
was a transition year between the fourth and fifth regulatory periods that 2025-2029. 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 level (high, medium and low). The invoiced tariffs are summed
up according to the related voltage level (e.g., the medium voltage tariff includes the high voltage tariff, and
the low voltage tariff includes the high voltage and medium voltage tariff).
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 period.
1.38 mn. users
1.36 mn. users
3.5 mn. consumption places
1.23 mn. users
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The year 2024 represents the transition period from the fourth period (RP4) to the fifth regulatory period
(RP5), the target income of the DSO for the year 2024 is established according to the Methodological Norms
approved by ANRE Order no. 79/2023 that completes the Methodology. In 2024, ANRE approved for DEER
regional distribution tariffs established on the basis of a single regulated income and a single NL target.
The electricity distribution tariffs approved by ANRE Order no.115/20.12.2023 starting with 1 January 2024 are as
follows (RON/MWh):
Table 16. The electricity distribution tariffs approved by ANRE starting with 1 January 2024
The concessionaire
distribution
operator
Voltage
level
U.M.
The specific
tariff
composed of:
The main
capped
component
The
component
related to
additional
costs with NL
Distributie Energie
Electrica Romania
S.A. -Zona
Muntenia Nord
HT
lei/MWh
34,72
32,96
1,77
MT
lei/MWh
74,69
65,71
8,98
LT
lei/MWh
238,63
215,50
23,13
Distributie Energie
Electrica Romania
S.A. -Zona
Transilvania Nord
HT
lei/MWh
31,22
29,69
1,53
MT
lei/MWh
74,86
67,85
7,01
LT
lei/MWh
190,16
174,96
15,20
Distributie Energie
Electrica Romania
S.A. -Zona
Transilvania Sud
HT
lei/MWh
29,55
28,38
1,17
MT
lei/MWh
63,05
58,68
4,37
LT
lei/MWh
185,49
172,23
13,26
Source: ANRE
The current regulatory period (fifth regulatory period – PR5) began on January 1, 2025. The electricity
distribution tariffs approved by ANRE Order no. 97/20.12.2024, valid from January 1, 2025, are the following
(RON/MWh):
Table 17. Electricity distribution tariffs approved by ANRE starting with January 1, 2025
Distribution
operator
Voltage
levele
U.M.
The specific
tariff
composed
of:
non NL
Component
NL util
Component
NL util_sc
Component
Distributie
Energie
Electrica
Romania S.A.
HT
lei/MWh
34,14
26,32
7,03
0,79
MT
lei/MWh
80,69
46,38
30,84
3,47
LT
lei/MWh
236,10
146,35
80,68
9,07
Source: ANRE
SUPPLY SEGMENT
The electricity and natural gas supply segment also
includes the company Electrica Furnizare S.A. (“EFSA”),
whose main activity is the supply of electricity to end
customers, both in the universal service segment and
as a supplier of last resort, as well as as a supplier on
the competitive market, throughout Romania.
The Group holds the electricity supply license
covering the entire territory of Romania, valid until
2031. In order to expand EFSA’s economic activities
in Hungary, the electricity trading license was
granted by the Hungarian Energy and Public Utilities
Regulatory Authority (MEKH) to Electrica Furnizare, by
Decision no. H879/2022. EFSA also holds the natural
gas supply license valid until 2032.
The electricity market is divided into the market of
last resort suppliers and the competitive market. On
both markets, electricity can be sold/acquired gross
or retail.
The market for universal service and providers of
last resort
As of 31.12.2024, EFSA served approximately 1.7 million
consumer locations under the universal service and
last resort regime.
Competitive market
In 2024, electricity trading on the wholesale market
was carried out transparently on the centralized
markets administered by OPCOM and BRM, based on
directly negotiated bilateral contracts, and on the
spot markets administered by OPCOM.
PRE Electrica - The Party Responsible for Balancing
The representation activity in the Balancing Market
as the Party Responsible for Balancing (PRE) was
carried out by EFSA.
Starting with 2024, 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 20% of the total electricity consumption in
Romania.
At the end of 2024, a number of 98 licensed
participants had transferred responsibility to PRE
EFSA, of which:
• 15 suppliers representing 15.31% of the total PRE;
• 7 distribution operators representing 7.14% of the
total PRE;
• 76 producers representing 77.55% 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
imbalances, in the sense of reducing costs on the
Balancing Market compared to the situation where
the producer/supplier/distributor would constitute
itself as the Party Responsible for Balancing.
ENERGY SERVICES SEGMENT
The Group’s portfolio also includes the energy
services segment (equipment maintenance, repairs
and other ancillary services related to the grid),
mainly provided to distribution companies outside
the Group.
Until 30 November 2020, the segment was represented
by SEM, and after the merger by absorption between
SERV and SEM, the segment includes SERV’s energy
services business.
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Electrica Serv will multiply its efforts to develop the
market for green energy power generation solutions
- photovoltaic power plants and reactive energy
compensators - by strengthening its partnership
with Electrica Furnizare in finding solutions and
opportunities for customer efficiency through the
installation of photovoltaic panels and reactive
energy compensators, smart lighting solutions,
backup power, smart metering.
SERV’s main objectives for the coming period are:
• Expansion of the activity on the service market
outside the ELSA group and consolidation in the
business lines of new activities simultaneously
with reactivation of old activities for which there
is accumulated experience;
• Adapting the business and staff structure to
make the activity more efficient and compensate
for the losses incurred in the last fiscal years;
• Consolidation of the current financial situation and
reinvestment of resources for the development of
the company in new directions.
ELECTRICITY PRODUCTION
Projects in development/implementation
For the production segment, the development of
the projects already acquired in order to reach the
ready to build stage is continuing, i.e. development
activities (final phase) in the 2 production plants:
• Crucea Power Plant S.R.L. - Crucea wind farm
project with P=121 MWp (up to 138 MW) and 60
MWh storage;
• ELSA – 35/70 MWh storage project - Fantanele,
internally developed.
Investment projects in progress of acquisition
Investment approval was obtained for the following
2 projects and in December 2024, the investment
process for both projects began by starting the
competitive selection procedures of the general
contractor (publication of purchase notices):
• New Trend Energy S.R.L. - the CEF Satu Mare 3
project with P=62.5 MWp;
• Foton Energy S.R.L. - the CEF Bihor 1 project with
P=77.5 MWp..
Ongoing investment projects
• Sunwind Energy S.R.L. -Satu Mare 2 Project,
where Electrica S.A. owns 100% of the shares, for
the CEF Satu Mare 2 project with P=27 MWp, as
a result of the completion of the selection of the
EPC contractor (engineering, procurement and
construction), the EPC contract was signed, this
being in the advanced implementation phase,
with a non-refundable co-financing from the
PNRR program.
• In the period 10.04-23.12.2024, the process of
making the investment took place, following that
after the completion by the Distribution Operator
of the connection installation, this capacity
should follow the necessary steps to carry out
the compliance tests and obtain the production
license, stages with a total duration estimated at
about 6-8 months, in accordance with the rules
in force.
• ELSA - The Vulturul Project with P=12 MWp where
the works have been completed and starting from
21.10.2024 is connected to the National Energy
System and operates during the trial period
according to the applicable regulations. The
estimated period of tests is 3-6 months, following
the certification of the tests by Transelectrica and
the obtaining of the Notification of final central
operation to enter the energy market.
Operational project
• ELSA - Stanesti photovoltaic power plant with a
capacity of 7.5 MWp.
In addition to the aspects mentioned above, activities
continue on:
• Evaluation of new project acquisition opportunities
regarding the production of electricity from
renewable sources and/or the conclusion of
partnerships through the acquisition of majority
shares in RES projects (already developed by
potential partners);
• Project development activities have started for:
energy production using efficient and flexible
capacities using natural gas (hydrogen ready);
• Project development activities for energy storage
capacities in batteries of 70 MWh continue and
following participation in a competitive selection
procedure, approval was obtained and a non-
reimbursable financing contract was concluded
(PNRR program).
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: Hydraulics, wind, solar, geothermal,
biomass, wind energy, bioliquids, biogas), for each
MWh produced and delivered in the network and for
a certain period of time, depending on the degree of
novelty of the group/power plant.
Stanesti photovoltaic Park has the right to receive,
starting with February 2013, for a period of 15 (fifteen)
years, 6 (six) green certificates for each 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 December 2030.
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.
As of December 31, 2024, SE Electrica SA still has 83,883
green certificates to recover from the deferred green
certificates.
For 2025, OPCOM set the minimum value of a green
certificate at RON 146.2532, compared to RON 145.4271
in 2024.
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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 2024 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:
Table 18. Number of users and volume of installations as of 31 December 2024
Indicator
UM
TN
MN
TS
Total
Geographical coverage
km²
34,162
28,962
34,072
97,196
Number of users, of which:
no.
1,384,998
1,347,725
1,217,704
3,932,281
high voltage (HV – 110 Kv)
no.
35
43
49
127
medium voltage (MV)
no.
4,722
4,758
3,337
12,817
low voltage (LV)
no.
1,380,241
1,353,387
1,228,651
3,962,279
Overhead power lines length, out of
which:
km
53,392
59,904
46,130
159,426
high voltage (HV – 110 Kv)
km
2,191
2,146
3,150
7,487
medium voltage (MV)
km
11,890
12,669
10,538
35,096
low voltage (LV)
km
39,312
45,088
32,443
116,843
out of which connections
km
18,419
24,560
17,650
60,628
Underground power lines length, out of
which:
km
18,490
12,799
13,886
45,175
high voltage (HV – 110 Kv)
km
38
17
66
120
medium voltage (MV)
km
4,561
3,632
3,891
12,084
low voltage (LV)
km
13,892
9,151
9,929
32,972
out of which connections
km
8,217
2,666
3,329
14,212
Cumulative power of transformers/
power AT
MVA
6,402
9,048
6,959
22,408
in power stations (HV/MV + MV/MV), out
of which:
MVA
3,802
5,985
4,192
13,979
in HV/MV power stations
MVA
3,754
5,633
4,186
13,573
in MV/MV power stations
MVA
48
352
6
406
Switching stations/Transformer stations
MVA
2,600
3,062
2,767
8,429
No. of substations, out of which:
pcs
122
216
106
444
HV/MT power stations
pcs
93
128
102
323
MT/MT power stations
pcs
29
88
4
121
Number
of
switching
stations
and
transformer
stations
pcs
9,643
10,761
9,907
30,311
Source: DEER
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 period 1960-
1990, in the successive stages of development of the National Energy System. This has led to a wide variety
of equipment currently in operation. These represent installations made with Romanian 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:
Table 19: Degree of attrition of the installations
TN
MN
TS
High voltage power lines (110
kV)
Underground power lines
25%
45%
50%
Overhead power lines
74%
64%
73%
Medium voltage power lines
Underground power lines
46%
62%
62%
Overhead power lines
55%
57%
57%
Low voltage power lines
Underground power lines
51%
67%
73%
Overhead power lines
55%
62%
65%
Substations
69%
73%
58%
Transformers
Pole - mounted
44%
48%
50%
Concrete enclosure
51%
66%
76%
Pad - mounted
71%
77%
21%
Underground
15%
95%
85%
Concrete base
10%
8%
12%
Source: DEER
The lands on which the existing electrical distribution networks are located at the entry into force of Law
13/2007 are and remain the public property of the state.
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.
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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%.
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 energy
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:
• racking 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 year 2024 (in 2024 nominal terms) and the period 2025 - 2029 (in 2024 real terms):
Table 20: Investment program approved by ANRE for the year 2024 and 2025-2029 period (RON mn.)
Entity
Transition
Year
Commissioning program approved by ANRE for the 5th
period
Total
2024
2025
2026
2027
2028
2029
DEER
674.7
706
727
747
754
768
3,702
Source: ANRE
In 2024, Electrica Group companies realized the following investments, compared to the planned values:
Table 21: Investments planned 2024 vs achieved 2024 DEER according OMFP 1802/2014 (RON mn.)
Electrica Group subsidiary (RON mn.)
Planned 2024
Achieved 2024
DEER zone TN
298.1
298.0
DEER zone TS
304.5
303.4
DEER zone MN
303.9
303.9
Total
906.5
953.3
Source: Electrica
Table 22: Consolidated investments planned 2024 vs achieved 2024 according OMFP 2844/2016
(RON mn.)
Filiala Grup Electrica (mil. RON)
Planned 2024
Achieved 2024
DEER zone TN (intangible)
298.1
330.4
DEER zone TS (intangible)
304.5
321.8
DEER zone MN (intangible)
303.9
344.0
EFSA
63.0
23.3
ELSA standalone
18.8
20.2
ELSA production segment
157.2
130.4
SERV
13.3
4.5
Total
1,158.8
1,174.6
Source: Electrica
At Electrica Group level, in 2024, the consolidated CAPEX plan was achieved at a rate of 108.4% compared to
the plan approved by the Board of Directors of ELSA in March 2024 and supplemented throughout December
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2024.
The synthetic structure of investments achieved (CAPEX) by the distribution subsidiary in 2024 is presented in
the table below (for details of the most important investments see Appendix 2).
Table 23: The synthetic structure of investments achieved by distribution subsidiary in 2024
(RON mn.)
Category of works (RON mn.)
Total
%
Efficiency, out of which:
331
36%
Energy efficiency/NL
255
28%
Operational efficiency
77
8%
Quality of distribution service, out of which:
505
56%
Continuity of supply
114
12%
Energy quality
144
16%
Legal obligations (network extention/reinforcement)
132
15%
Connections (additional to the plan)
115
13%
Other categories, from which
69
8%
Endowments (including auto)
60
7%
Projects and studies
5
1%
Modernization of buildings, premises
4
0%
Total
905.3
100%
Source: Electrica
The main investments of the Electrica Group were focused in 2024 on improving the quality of the distribution
service, as well as on increasing the energy and operational efficiency.
Figure 30: The structure of CAPEX achievements for distribution operator within the Group, in 2024
(RON mn.)
Source: Electrica
The approved plan of investments to be commissioned in 2024 for Societatea Distributie Energie Electrica
(DEER), the distribution company within Electrica group, was in total amont of RON 717.6 mn., this value also
including investments carried forward, for the year 2023 (RON 43.7 mn.). It was also estimated that additional
works would be carried out beyond the plan due to legal obligations, amounting RON~ 200 mn.
The total value of the investments carried out and commissioned in 2024 by DEER is RON 808.0 mn. representing
an average percentage of 113% compared to the total planned value.
From the total of RON 808.0 mn. investments carried out and commissioned, RON 655.5 mn. are related to
2024 plan, RON 119.5 mn. are additional works from legal obligations and RON 33.0 mn. represent investments
carried forward from 2023 plan.
Energy efficiency/NL
255 - 28%
Operational efficiency
77 - 8%
Continuity of supply
114 - 12%
Other categories
69 - 8%
Connections
(additional to the plan)
115 - 13%
Legal obligations (network
extention/reinforcement)
132 - 15%
Energy quality
144 - 16%
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Table 24. PIF plan vs achieved 2024 (RON mn.)
DEER (RON mn.)
Total 2024 plan
Total achieved
2024
Total percentage of
achievement %
MN area
236.6
284.8
120%
TS area
244.3
253.4
104%
TN area
236.7
269.9
114%
Total DEER
717.6
808.0
113%
Source: Electrica
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 25. RAB evolution 2014-2024 (RON mn.)
RAB
(mn. RON)
2014
2015
2016
2017
2018
2019*
2020*
2021*
2022*
2023*
2024**
SDTN
1,331
1,420
1,519
1,624
1,728
1,854
1,925
2,100
2,423
2,614
2,770
SDTS
1,333
1,377
1,388
1,475
1,521
1,682
1,760
1,915
2,183
2,397
2,549
SDMN
1,486
1,543
1,581
1,679
1,769
1,913
2,016
2,184
2,489
2,685
2,848
Total
4,150
4,340
4,488
4,778
5,018
5,449
5,702
6,199
7,095
7,695
8,167
Source: Electrica
Considering the significant volume of investments required for the next period, efforts have been intensified to
access the non-reimbursable financing schemes: Large Infrastructure Modernization Fund, National Recovery
and Resilience Plan (PNRR).
In 2024, DEER completed five projects with an eligible value of RON 201 mn. within the Large Infrastructure
Operational Program (POIM) 2014-2020.
31 projects were submitted for financing from the Modernization Fund (FM) Key Program 3- Support for the
development and modernization of the electricity distribution network, total amounting ~ EUR 1.3 bn. (without
VAT), of which the eligible amount is ~ EUR 0.95 bn. At the end of 2024, eighteen 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 three other projects for financing from the Modernization Fund - Own-consumption, for
installing photovoltaic systems to cover the own consumption in two substations and headquarter.
* The 2019-2023 values have been updated with the real inflation rate, instead of the inflation rate used in the tariffs.
** The value may change as a result of the final closing of 2024 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.
Obligations of the distribution license holder:
• 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.
In some cases, the acquisitions are carried out and centralized by delegating the coordination of the
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acquisition to a group company, with the primary objective of reducing costs, optimizing the acquisition 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 2024
and the purchase of Services regarding professional training courses in the field of ESG.
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 28.9% in 2024, while the contribution of the supply segment
was 70.4%.
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 2023 ANRE report for
performance indicators’ monitoring.
Figure 31: Market share of distribution segment in 2023
Source: ANRE Report for performance indicators’ monitoring 2023
Figure 32: Total market shares, 2024
Figure 33: Competitive Market, 2024
Source: ANRE report (September 2024)
Notes: *”Others” segement includes suppliers with individual market
share under 4%
**PPC includes PPC ENERGIE and PPC ENERGIE MUNTENIA
Figure 34: Volume of electricity supplied on the
retail market (TWh)
Source: Electrica
Figure 35: Evolution of consumer numbers (ths.)
Source: Electrica
Regarding the the supply segment, although it holds an important position on the electricity supply market,
EFSA faces strengthening competition on the market it operates on.
The figures below show the market shares of Electrica Group for the supply activity on 30 September 2024
(based on supplied volumes).
PPC2
16%
Electrica Furnizare
16%
Hidroelectrica
12%
E.ON Energie
România
7%
Premier Energy
Furnizare
Nova Power & Gas
4%
Getica 95 COM
4%
ngie România
4%
32%
Others
Others, 60.70%
DEER TN,
12.8%
DEER TS,
13.4%
DEER MN
13%
PPC2
16%
Hidroelectrica
13%
Electrica
Furnizare
10%
E.ON Energie
România
6%
Premier Energy
Furnizare
4%
Nova Power & Gas
5%
Getica 95 COM
5%
Engie România
5%
36%
Others
4.2
5.6
5.4
4.2
4.8
5.1
3.8
2.4
2.2
2.1
0.9
1.5
0.7
9.3
9.4
8.6
7.8
7.6
2020
2021
2022
2023
2024
Competitive Market
Universal Service
SoLR
-2%
314
1,556
1,645
1,724
1,777
3,269
1,953
1,817
1,746
1,663
36
26
19
3,583
3,510
3,498
3,495
3,459
2020
2021
2022
2023
2024
Competitive Market
Universal Service
SoLR
-1.04%
Source: ANRE report (September 2024)
Notes: *”Others” segement includes suppliers with individual market
share under 4%
**PPC includes PPC ENERGIE and PPC ENERGIE MUNTENIA
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Figure 36: Consumers structure by quantity of
electricity supplied in 2023
Source: Electrica
Figure 37: Consumers structure by income
generated in 2023
Source: Electrica
Major client exposure
EFSA does not have a significant exposure to a certain industrial sector that could have major influence on
company’s activity. The position of market leader gives the essential advantage of having a very 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.
Starting with 2024, the customer portfolio is diversified, consisting of producers (hydro, thermal, wind,
photovoltaic, biogas, biomass), suppliers and distribution operators, ensuring the balancing service of over
20% of the total electricity consumption in Romania.
At the end of 2024, a number of 98 licensed participants had transferred responsibility to PRE EFSA, of which:
• 15 suppliers representing 15.31% of the total PRE;
• 7 distribution operators representing 7.14% of the total PRE and
• 76 producers representing 77.455% of the total PRE.
Electrica Furnizare PRE Members
Source: Electrica
In 2024, in average, more than 300 bilateral contracts, exchanges with OPCOM respectively, were notified
daily to Transelectrica (OTS).
Starting from February 2021, settlement in PE is carried out at 15-minute intervals using the single-price
methodology according to ANRE Order no. 127/2021. 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 2024, out of a total number of 32,064 intervals, the dual price was applied to a
number of 4,560 intervals (14.22%). As a result of the internal allocation of unbalances, within the PRE EFSA
there was an improvement in excess and loss prices by 63.74 RON/MWh compared to the unbalance prices
calculated by OPCOM/OTS (a degree of compensation of approximately 48%). The average surplus and deficit
28%
35%
28%
9%
HOUSEHOLDS -
UNIVERSAL SERVICE
NON-HOUSEHOLDS - SOLR
HOUSEHOLDS -
COMPETITIVE MARKET
NON-HOUSEHOLDS -
COMPETITIVE MARKET
35%
29%
33%
29%
9%
HOUSEHOLDS -
UNIVERSAL SERVICE
NON-HOUSEHOLDS - SOLR
HOUSEHOLDS -
COMPETITIVE MARKET
NON-HOUSEHOLDS -
COMPETITIVE MARKET
15%
7%
78%
Suppliers
Distributors
Producers
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prices presented in the table below also include the months in which the average surplus/deficit prices were
negative.
January - November 2024
Excess Average Price OPCOM/OTS
Excess Average Price EFSA PRE
4.14
67.88
Loss Average Price OPCOM/OTS
Loss Average Price EFSA PRE
276.23
212.50
Source: Electrica
During February - May 2024, the average surplus and deficit prices were negative, with a compensation
degree of approximately 42%:
February - May 2024
Excess Average Price OPCOM/OTS
Excess Average Price EFSA PRE
-752.66
-663.11
Loss Average Price OPCOM/OTS
Loss Average Price EFSA PRE
-346.19
-435.73
Source: Electrica
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 2024, the Intraday Market trading results are as follows:
• On purchase - the quantity of 49,006.25 MWh at an average price of 603.02 RON/MWh;
• For sale - the quantity of 38,298.60 MWh at an average price of 602.76 RON/MWh.
Out of a total traded for purchase on IM OPCOM of 162,169.35 MWh (at an average price of 608.20 RON/MWh),
EFSA traded a volume of 49,006.25 MWh representing a percentage of about 30%, and of the total traded for
sale on IM OPCOM of 220,161.08 MWh (at an average price of 562.92 RON/MWh). EFSA traded a quantity of
38,298.60 MWh representing a percentage of about 17%.
5.5 Personnel
On 31 December 2024, Electrica Group had 7,794 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 26. Number of employees evolution 2024 – 2020
Segment
2024*
2023
2022
2021
2020
Electricity distribution segment - DEER
6,473
6,589
6,555
6,454
7,213
Services segment - SERV
446
473
469
612
694
Supply segment – EFSA
787
796
816
838
793
Headquarter – ELSA
88
87
71
109
120
Total
7,794
7,945
7,911
8,013
8,126
Source: Electrica
* *According to the modified reporting methodology to INS, the employees number from 31.12.2024 also includes 18 persons who worked based
on a mandate agreement (5 DEER, 6 EFSA, 3 SERV, 4 ELSA HQ).
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 2024, approximately 71% of the Group’s employees represent directly productive staff, and
29% represent indirectly productive staff, including technical, economic, social and administrative personnel.
As of 31 December 2024, about 96% of the Group’s employees are Union members and their employment
conditions are governed by the Collective Labor Agreement, which will expire on 17 May 2026 for ELSA and
between March - June 2026 for the Group’s subsidiaries. The Electrica Group did not face Union actions in 2024.
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 professional evaluation of employees, succession and final provisions.
The long-term strategic objectives, set at the end of 2024, 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 dynamics of the labor market.
In 2024, the methodological and conceptual framework for the application of international best practices was
continued to increase the maturity of the performance management system within Electrica, which 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.
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.
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ELECTRICA 2024 ANNUAL REPORT
HEALTH AND SAFETY AT WORK
In 2024, all companies within the Electrica Group
maintained their Integrated Management System
certification,
ensuring
compliance
with
legal
requirements in the field of occupational health and
safety and with the SR ISO 45001:2018 standard. This
guarantees the provision of services and the conduct
of processes in safe conditions for both their own
personnel and contractors, as well as for clients.
The work accidents situation and specific indicators at Electrica Group level
In 2024, a total of 12 work accidents were recorded
within the Electrica Group, an increase compared to
2023, with one of them being fatal.
The
complex
of
complementary
causes
and
contributing factors that led to each of these
accidents was analyzed at the level of the Group’s
companies
by
legally
constituted
committees,
and the investigation files include the preventive
measures necessary to be implemented by the
company to avoid similar situations.
The work accident frequency rate (IF), expressed as
the number of accidents per 1,000 employees, was
1.56‰ for 2024 within the Electrica Group, showing
an increase compared to 2023, correlated with an
increase in the number of accidents within the group.
These accidents were caused by non-compliance
with occupational health and safety instructions, due
to workers’ inattention and improper maneuvers.
During the reference period, one fatal work accident
was recorded.
FI* 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
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).
Figure 38: Frequency index 2022-2024
Source: Electrica
*For the year 2024, the data published by the Ministry of Labor and Social Solidarity is as of September 30, 2024, with the final figures set to be
published on April 15, 2025
Aspects regarding the employees health
The field of activity of the Electrica Group does not
involve the risk of conditions caused exclusively by
working conditions, so no occupational diseases were
recorded in 2024 or in previous years. Prevention,
monitoring, and ensuring occupational health within
the Electrica Group were carried out by doctors
specialized
in
occupational
medicine
through
dedicated service contracts and were monitored
at the ELSA level for the companies in the portfolio
through reporting.
Actions to improve safety and health of employees at work place
At the company level, training and control activities
in the field of Occupational Health and Safety (OHS)
have been maintained. The controls carried out are
primarily aimed at ensuring compliance with current
instructions and regulations, non-compliance with
which was identified as the main cause of accidents
in 2024. The controls target both the company’s own
personnel and contractors, with the long-term goal
of „zero” accidents.
Changing the organizational culture and focusing on
values such as safety, responsibility, discipline, and
collaboration is a long-term process that requires
sustained human and financial effort through the
implementation of the following actions:
• Developing and implementing a dedicated policy
and programs to promote responsibility and
compliance with occupational health and safety
rules, as well as prevention in relation to accident
risks;
• Consulting workers from all workplaces in the
process of improving the work environment and
conditions;
• Developing a system for communicating OHS
events/near-misses
through
IT&C
platforms,
ensuring quick and easy communication, with
the option of anonymity if desired, for electricians,
coupled with encouraging reporting;
• Communicating OHS objectives to all contractors
of the Electrica Group companies and monitoring
their compliance with legal requirements and
specific instructions in the field. Forming a
working group with representatives from all
Group companies to develop tools for better
management of OHS aspects in relation to
contractors;
• Communicating
to
users
and
communities
the risks to which people are exposed through
unauthorized access to installations managed by
the Group’s companies, both physical risks (such
as electrical risk, risk of falling from height) and
legal risks.
In 2024, the total number of OHS training hours
conducted was 341,210, compared to 333,792 OHS
training hours in 2023.
In 2024, a total of 2,670 OHS inspections were
carried out by certified personnel, compared to
2,435 inspections in 2023. Following the inspections,
preventive and corrective measures were established
to reduce the incidence of work accidents and
mitigate the risks of their occurrence.
Despite
numerous
inspections
by
Territorial
Labor
Inspectorates
and
Emergency
Situations
Inspectorates during the reference period, none of
the Electrica Group companies faced sanctions.
0.66
1.16
1.56
0.78
0.8
0.87
1.03
0.89
1.34
0
0.2
0.4
0.6
0.8
1
1.2
1.4
1.6
1.8
2022
2023
2024
Frequency Index
Group
National
Industry
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ELECTRICA 2024 ANNUAL REPORT
ELECTRICA 2024 ANNUAL REPORT
5.6 Research and development activities
Electrica Group is promoting technological innovation
by participating in research and development
projects financed/co-financed through European
funds, which aims to empower the resilience of energy
systems with an increasingly complex structure but
also more vulnerable to cyber-attacks.
Thus, with the integration of an increasing number
of distributed generation sources in the distribution
network increases the role of intelligent technologies
as well in network operation by remote monitoring,
control, or operation and even more by network self-
healing implementation.
The growing number of cyber security incidents in
the energy system as well as the need for shielding
against a variety of threats require novel and holistic
solutions that employ cutting-edge technologies to
detect and mitigate threats, ensuring compliance
with the latest cyber security standards.
In this context, Electrica participated in the European
project
ELECTRON
-
resilient
and
self-healed
EleCTRical power Nano-grid, 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
delivered
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 was carried out by a consortium of
34 organizations (companies, universities, etc.),
coordinated by Intrasoft International, Belgium, with
a duration of 36 months starting from October 2021.
There were several approaches in the project work
plan, which differentiate the ELECTRON methodology
from the state of the technology.
ELECTRON
offers
a
contemporary
certification
framework aligned with the Cybersecurity Act for
the integration of risk assessment and certification
processes for products, devices and services within the
EPES. The framework introduced takes risk assessment
a step further, ensuring collaborative vulnerability
assessment between different stakeholders in the
energy sector.
In the field of Privacy-Aware Intrusion and Anomaly
Detection, a cybersecurity protection framework
is introduced by adopting a federated learning
approach. In particular, under the orchestration of
XL-SIEM, FL-IDPS AI models will focus on intrusion and
anomaly detection against EPES protocols.
In
Post-Quantum
Privacy-Preserving
for
Energy
Systems,
ELECTRON
provides
a
post-quantum
public-key cryptosystem that is resistant to known
cyberattacks performed by conventional computers
and meets EPES requirements, such as the reduced
storage and computing resources of EPES devices
(e.g., smart meters).
ELECTRON also aims to provide a nano-grid based
architecture to apply intelligent energy management
and protection against cyberattacks and failures
at different scales. Nano-grid introduces local
optimization and intelligent control to increase
reliability and power quality. In addition, ELECTRON
will leverage SDN by implementing a distributed and
fault-tolerant SDN architecture.
In addition, ELECTRON applied AR/VR-based training
to ensure that EPES personnel can effectively respond
to security incidents in different parts of the smart
grid infrastructure. ELECTRON also promotes an
energy ecosystem on cybersecurity policies and
recommendations to facilitate the assessment,
compilation
and
approval
of
cybersecurity
certification programs for energy system processes,
devices, applications and services.
ELECTRON also promotes an energy ecosystem on
cybersecurity policies and recommendations to
facilitate the assessment, compilation and approval
of cybersecurity certification programs for energy
systems
processes,
devices,
applications
and
services.
Ultimately, Electron contributed to the following
impacts:
increased
resilience
against
different
levels of cyber-attacks and data privacy and
breaches; ensured the continuity of critical energy
business operations and resilience to cyber-attacks,
taking into account the real-time constraints of an
electrical system; promoted the implementation
of the NIS Directive by EPES stakeholders; provided
a set of standards and rules for the certification of
cybersecurity components, systems and processes
in the energy sector; promoted the development and
adoption of cyber protection policy in the energy
sector.
The ELECTRON project, funded by the EU’s Horizon
2020 framework, has made significant progress in
improving the resilience of electricity and power
systems (EPES) against cyber threats, data breaches
and privacy intrusions.
Electrica SA’s participation in the ELECTRON project
has brought multiple benefits to the company,
contributing to strengthening cybersecurity and
improving the energy infrastructure. Among the main
advantages are:
1. Improving cybersecurity: By engaging in the
development of a collaborative risk assessment
and certification framework, Electrica SA can
strengthen its ability to identify and manage
vulnerabilities in the distribution network, ensuring
increased protection against cyber threats.
2. Access to advanced technologies: Participation
in the project allows the company to adopt
innovative solutions, such as federated intrusion
and
anomaly
detection
systems
or
post-
quantum cryptography, aimed at protecting
energy
infrastructure
against
sophisticated
cyberattacks.
3. Energy
management
optimization:
The
implementation of nano grid-based architecture
offers opportunities for local optimization and
intelligent control of energy consumption and
production, which can lead to increased reliability
and quality of the energy supplied.
4. Developing staff skills: Through training modules
based on augmented and virtual reality, Electrica
SA staff can acquire advanced skills in managing
security incidents, effectively preparing to react
to various cyber-attack scenarios.
5. Validating
solutions
in
real
scenarios:
Participation in high-impact case studies, such as
protecting electric vehicle charging infrastructure
or securing renewable energy chains, offers the
company the opportunity to test and validate
the solutions developed within the project, thus
ensuring their efficiency in practical situations.
Through these benefits, Electrica S.A. consolidates
its position in the energy market, ensuring the
continuity of critical operations and adapting to
current challenges in the field of cybersecurity.
Artificial intelligence (AI) represents a revolutionary
paradigm in the transformation of the energy sector,
bringing with it significant innovations and increased
efficiency. In the contemporary era, in which we face
major challenges related to climate change and the
need for a transition to sustainable energy sources,
artificial intelligence becomes an essential driving
force for optimizing processes, efficiently monitoring
resources
and
implementing
smart
solutions.
From optimizing electrical networks to efficiently
managing energy consumption in buildings and
developing advanced storage systems, AI represents
an undeniable advantage in achieving a modern
and
sustainable
energy
infrastructure.
Through
complex data analysis, advanced simulations and
process automation, artificial intelligence becomes
the catalyst for a profound transformation in the
way we generate, distribute and consume energy,
contributing to building a more sustainable and
resilient society.
In this context, Electrica is developing, together with
the Technical University of Cluj-Napoca and the
company S.C. Energy Advisor S.R.L., the project entitled
„Development of Artificial Intelligence Algorithms
and Advanced Numerical Methods for Real-Time
Monitoring of Energy Consumption of the Main Devices
in a Commercial Building,” known under the acronym
„AI-AE,” which represents pioneering research in the
field of energy sciences, bringing to the forefront the
concept of indirect measurement and monitoring
of the energy footprint in real time through artificial
intelligence and advanced numerical methods, with
a focus on commercial buildings.
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ELECTRICA 2024 ANNUAL REPORT
ELECTRICA 2024 ANNUAL REPORT
5.7 Significant aspects of the impact of subsidies on the
capitalization of additional costs related to technological
consumption (NL)
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:
• 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, according to the changes
approved by Law no. 357/2022.
• Emergency Ordinance no. 119/2022 amending
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 and amended by Law
no. 357/2022, application period 1 January 2023 –
31 March 2025.
• GEO. no. 153/2022 for the amendment and
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
of the GEO. no. 119/2022 for amending and
supplementing the GEO. no. 27/2022 regarding
the measures applicable to end customers in the
electricity and natural gas market in the 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.
• 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 January 2024 - 31 March
2025.
Starting with September 2022, it is allowed to
capitalize, recognize and report additional costs
related to the own technological consumption (NL) of
distribution operators. The Group further recognizes
capitalized costs with NL on the distribution segment
according to the ANRE methodology in force and the
orders of the Ministry of Finance: OMFP 1802/2014 and
OMFP 2844/2016.
During 2024, NL costs were capitalized in the amount
of approx. RON 190 mn.
The net book value of capitalized NL as of 31.12.2024 is
RON 755.3 mn. RON (31.12.2023 of RON 770.9 mn.).
5.8 Going concern – substantiation and working hypothesis
The consolidated financial statements and this report
have been prepared on the going concern basis.
In making this judgement management considers
current trading performance and access to finance
resources. The Group has prepared a forecast that
includes the following assumptions:
• A termination of the support scheme until on 30
June 2025 according to the applicable legislation
but with a continuously stable flow of repayments
of the reimbursement requests for subsidies;
• The renewal of the confirmed existing overdraft
limits is planned up to a limit of RON 3,219.1 mil. (out
of which drawn at RON 2,490.6 mil. 31 December
2024).
At the date of issuance of the consolidated financial
statements and 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 2023 for the distribution segment)
as market share on the electricity distribution
and 15.36 % (according to the latest ANRE report
September 2024 for the supply segment) as market
share on the electricity supply 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
implemented and the strategies to reduce the risks
which may occur due to the instability of the 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 this
report and the consolidated financial statements
published by the Group.
6. ELECTRICA FINANCIAL REPORTING
FOR 2024
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DIRECTORS’ REPORT FOR THE YEAR 2024
ELECTRICA FINANCIAL REPORTING FOR 2024
ELECTRICA FINANCIAL REPORTING FOR 2024
ELECTRICA 2024 ANNUAL REPORT
ELECTRICA 2024 ANNUAL REPORT
The presentation of the Group’s consolidated financial information in chapters 6.1.1, 6.2.1, 6.3.1 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 the Ministry of Public Finance Order 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 financial position
6.1.1 Consolidated statement of financial position- S-IFRS-EU
The following table presents the consolidated statement of the financial position.
Table 27. Consolidated statement of the financial position 2024-2021 (RON. mn) - S-IFRS-EU
31
December
2024
31
December
2023
Variation
2024/2023
31
December
2022
31
December
2021
ACTIVE
Active imobilizate
Intangible assets related to
concession agreements
6,678.2
6,220.5
457.7
5,675.9
5,514.6
Intangible assets - goodwill
49.8
24.7
25.1
12.0
-
Other intangible assets
31.3
27.8
3.5
12.9
9.0
Property, plant and equipment
736.9
595.0
141.9
499.4
505.4
Investments in associates
0.0
16.6
(16.6)
18.8
25.8
Other investments
7.0
7.0
-
7.0
-
Deferred tax assets
84.6
32.4
52.2
30.2
83.5
Other non-current assets
4.4
52.0
(47.6)
2.4
1.7
Right of use assets
39.4
41.0
(1.6)
52.2
20.9
Total non-current assets
7,631.7
7,017.0
614.7
6,310.7
6,160.9
Current assets
Trade receivables
3,675.7
2,540.4
1,135.2
2,466.0
1,344.6
Other receivables
74.7
93.8
(19.1)
127.3
48.6
Cash and cash equivalents
454.5
377.2
77.2
334.9
221.8
Subsidies receivables
1,976.7
2,614.5
(637.8)
1,280.8
-
Inventories
111.9
115.7
(3.8)
114.0
73.0
31
December
2024
31
December
2023
Variation
2024/2023
31
December
2022
31
December
2021
Prepayments
5.1
12.9
(7.9)
13.9
5.0
Current income tax receivable
8.9
-
8.9
24.0
23.8
Assets held for sale
0.3
0.3
(0.0)
0.3
5.4
Total current assets
6,307.7
5,754.9
552.8
4,361.1
1,722.2
Total assets
13,939.4
12,771.9
1,167.5
10,671.8
7,883.1
EQUITY AND LIABILITIES
Equity
Share capital
3,395.5
3,464.4
(68.9)
3,464.4
3,464.4
Share premium
103.0
103.0
-
103.0
103.0
Treasury shares reserves
-
(75.4)
75.4
(75.4)
(75.4)
Pre-paid capital contributions in
kind from shareholders
0,0
0,0
-
0,0
Revaluation reserve
150.3
159.5
(9.3)
92.1
102.8
Legal reserves
490.8
449.4
41.5
429.6
408.4
Retained earnings
1,561.3
1,259.4
301.9
554.6
950.2
Total equity attributable to
shareholders of the Company
5,701.0
5,360.4
340.6
4,568.5
4,953.6
Non-controlling interests
(0,0)
(0,5)
0,4
(0,5)
-
Total equity attributable to
shareholders of the Company
5,701.0
5,360.0
341.0
4,567.9
4,953.6
Liabilities
Non-current liabilities
Lease liability – long term
34.4
29.1
5.2
34.5
12.1
Deferred tax liabilities
128.2
121.3
6.8
60.3
161.9
Employee benefits
162.7
151.4
11.3
117.3
149.2
Other liabilities
45.7
37.2
8.5
72.4
32.7
Long-term bank borrowings
1,824.5
794.3
1,030.2
647.2
118.8
Total non-current liabilities
2,195.4
1,133.3
1,062.1
931.7
474.7
Current liabilities
Lease liability – short term
7.4
14.1
(6.6)
19.2
9.4
Bank overdrafts
2,490.6
2,851.2
(360.6)
2,571.0
627.4
160
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DIRECTORS’ REPORT FOR THE YEAR 2024
ELECTRICA FINANCIAL REPORTING FOR 2024
ELECTRICA FINANCIAL REPORTING FOR 2024
ELECTRICA 2024 ANNUAL REPORT
ELECTRICA 2024 ANNUAL REPORT
31
December
2024
31
December
2023
Variation
2024/2023
31
December
2022
31
December
2021
Trade payables
1,146.4
1,671.5
(525.1)
1,407.1
891.3
Other payables
1,585.9
1,035.1
550.8
867.5
271.3
Deferred revenue
6.6
7.8
(1.2)
24.8
9.7
Employee benefits
150.9
120.5
30.3
114.2
101.1
Provisions
75.9
41.2
34.7
53.7
34.9
Current income tax liability
13.5
13.9
(0.4)
1.1
-
Current portion of long-term bank
borrowings
565.8
523.3
42.5
113.5
509.7
Total current liabilities
6,043.0
6,278.6
(235.6)
5,172.2
2,454.9
Total liabilities
8,238.4
7,411.9
826.5
6,103.8
2,929.6
Total equity and liabilities
13,939.4
12,771.9
1,167.5
10,671.8
7,883.1
Source: Consolidated financial statements of Electrica Group as of 31 December 2024
The materiality threshold established internally at the Group level for analysis of main indicators (presented
below) is worth RON 68.0 mn., representing 5% of EBITDA.
Fixed assets
Fixed assets increased by RON 614.7 mn. in 2024, or 8.8%, from RON 7,017.0 mn. at 31 December 2023 to RON
7,631.7 mn. at 31 December 2024, this change being mainly the cumulative effect of:
• RON 457.7 mn. increase in network investments made by the distribution subsidiaries (the most relevant
values of investments and start-ups are shown in Appendix 2);
• increase of RON 141.9 mn. in property, plant and equipment, mainly representing investments in the
production of electricity from renewable sources.
Current assets
In 2024, current assets increased by RON 552.8 mn compared to 2023, or 9.6%, from RON 5,754.9 mn to RON
6,307.7 mn., this evolution is mainly due to the increase in trade receivables by 1,135.2 million RON, an impact
offset by the decrease in subsidies to be received in 2024 by 637.8 million RON.
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 1,135.2 mn. in 2024, or 44.7%, from RON 2,540.4 mn. to RON 3,675.7 mn. at
31 December 2024.
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 77.2 mn., or 20.5%, to RON 454.5 mn. from RON 377.2 mn. in 2023.
Table 28. Cash and cash equivalents 2024-2022
(RON mn.)
31 December
2024
31 December
2023
31 December
2022
Bank current accounts
330.1
223.2
141.7
Call deposits
123.9
154.0
193.2
Cash in hand
0.5
0.0
-
Total cash and cash equivalents in the consolidated
statement of financial position
454.5
377.2
334.9
Overdrafts used for cash management purposes
-
-
-
Total cash and cash equivalents in the consolidated
statement of cash flows
454.5
377.2
334.9
Source: Consolidated financial statements of Electrica Group as of 31 December 2024
Share capital and share premium
The issued share capital in nominal terms consists of 339,553,004 ordinary shares at 31 December 2024 (31
December 2023: 346,443,597) with a nominal value of RON 10 per share.
On July 11, 2024, the Bucharest Trade Register Office admitted the request to reduce the share capital of SE
Electrica S.A., according to the EGMS decision no. 1/25.04.2024. The share capital of SE Electrica SA is thus
reduced from the value of RON 3,464,435,970 to the value of RON 3,395,530,040, and the number of shares is
reduced from 346,443,597 shares to 339,553,004 shares.
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”.
Table 29. Number of shares 2024 - 2022
Number of ordinary shares
2024
2023
2022
Number of shares at 1 January
339,553,004
346,443,597
346,443,597
Shares issued during the year
-
-
-
Number of shares at 31 December
339,553,004
346,443,597
346,443,597
Source: Electrica
162
163
DIRECTORS’ REPORT FOR THE YEAR 2024
DIRECTORS’ REPORT FOR THE YEAR 2024
ELECTRICA FINANCIAL REPORTING FOR 2024
ELECTRICA FINANCIAL REPORTING FOR 2024
ELECTRICA 2024 ANNUAL REPORT
ELECTRICA 2024 ANNUAL REPORT
Revaluation reserves
The Group performed the last revaluation of fixed assets on 31.12.2023. The reconciliation between the opening
balance and the closing balance of the revaluation reserve is presented below:
Table 30. Revaluation reserves 2024-2022 (RON mn.)
2024
2023
2022
Balance at 1 January
159.5
92.1
102.8
Revaluation surplus of land, land improvements and
buildings
-
85.5
-
Release of revaluation reserve to retained earnings
corresponding to depreciation and disposals of property,
plant and equipment
-
(4.4)
(10.7)
Deferred tax liability arising on revaluation of land, land
improvements and buildings
(9.3)
(13.7)
-
Balance at 31 December
150.3
159.5
92.1
Source: Consolidated financial statements of Electrica Group as of 31 December 2024
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.
Non-current liabilities
Non-current liabilities increased from RON 1,133.3 mn.
as at 31 December 2023 to RON 2,195.4 mn. as at 31
December 2024.
This evolution is a net effect of the variation of the
main categories of long-term debts, the most
significant of which is the increase in the balances
of long-term loans (BEI, CEC Bank, Raiffeisen Bank
and BCR), through drawings made in 2024 mainly to
finance the Group’s investments.
Current liabilities
In 2024, current liabilities decreased by RON 235.6 mn.
to RON 6,043.0 mn. from RON 6,278.6 mn. at the end
of 2023, mainly due to the evolution of the categories
listed below.
Overdrafts
The overdrafts decreased in 2024 by RON 360.6 mn.
to RON 2,490.6 mn., from RON 2,851.2 mn. at the end
of 2023.
Trade payables
As of 31 December 2024, trade payables decreased
by approximately RON 525.1 mn. to RON 1,146.4 mn.
from RON 1,671.5 mn. as at 31 December 2023.
Other payables
As of 31 December 2024, other liabilities increased
by approximately RON 550.8 mn. to RON 1,585.9 mn.
from RON 1,035.1 mn. as of 31 December 2023, of which
increases with debts to prosumers by RON 127.7 mn.,
green certificate suppliers by approximately RON
212.5 mn. and various electricity creditors (amounts
collected from customers and not compensated
on the invoice) by RON 218.7 mn. while debts to the
state decreased by RON 24.3 mn. Other debts include
mainly green certificate suppliers, prosumers, various
creditors, guarantees, connection fee, habitat tax
and cogeneration contributions.
Table 31. Legal reserves 2024-2022 (RON mn.)
Legal reserves
Balance at 1 January 2022
408.4
Set-up of legal reserves
21.2
Balance at 31 December 2022
429.6
Set-up of legal reserves
19.8
Balance at 31 December 2023
449.4
Set-up of legal reserves
41.5
Balance at 31 December 2024
490.8
Source: Consolidated financial statements of Electrica Group as of 31 December 2024
164
165
DIRECTORS’ REPORT FOR THE YEAR 2024
DIRECTORS’ REPORT FOR THE YEAR 2024
ELECTRICA FINANCIAL REPORTING FOR 2024
ELECTRICA FINANCIAL REPORTING FOR 2024
ELECTRICA 2024 ANNUAL REPORT
ELECTRICA 2024 ANNUAL REPORT
6.1.2 Consolidated statement of financial position - S-OMFP 2844/2016
The following table presents the consolidated statement of the financial position.
Table 32. Consolidated statement of the financial position 2024-2021 (RON. mn) - S-OMFP 2844/2016
31
December
2024
31
December
2023
Variation
2024/2023
31
December
2022
31
December
2021
ASSETS
Non-current assets
Intangible assets related to
concession agreements
6,678.2
6,220.5
457.7
5,675.9
5,514.6
Intangible assets from
capitalization of NL costs
755.3
770.9
(15.6)
951.6
-
Intangible assets - goodwill
49.8
24.7
25.1
12.0
-
Other intangible assets
31.3
27.8
3.5
12.9
9.0
Property, plant and equipment
736.9
595.0
141.9
499.4
505.4
Investments in associates
0.0
16.6
(16.6)
18.8
25.8
Other investments
7.0
7.0
-
7.0
-
Deferred tax assets
84.6
32.4
52.2
30.2
83.5
Other non-current assets
4.4
52.0
(47.6)
2.4
1.7
Right of use assets
39.4
41.0
(1.6)
52.2
20.9
Total non-current assets
8,387.0
7,787.9
599.1
7,262.3
6,160.9
Current assets
Trade receivables
3,675.7
2,540.4
1,135.2
2,466.0
1,344.6
Other receivables
74.7
93.8
(19.1)
127.3
48.6
Cash and cash equivalents
454.5
377.2
77.2
334.9
221.8
Subsidies receivables
1,976.7
2,614.5
(637.8)
1,280.8
-
Inventories
111.9
115.7
(3.8)
114.0
73.0
Prepayments
5.1
12.9
(7.9)
13.9
5.0
Current income tax receivable
8.9
-
8.9
24.0
23.8
Assets held for sale
0.3
0.3
(0.0)
0.3
5.4
Total current assets
6,307.7
5,754.9
552.8
4,361.1
1,722.2
Total assets
14,694.8
13,542.8
1,151.9
11,623.3
7,883.1
31
December
2024
31
December
2023
Variation
2024/2023
31
December
2022
31
December
2021
EQUITY AND LIABILITIES
Equity
Share capital
3,395.5
3,464.4
(68.9)
3,464.4
3,464.4
Share premium
103.0
103.0
-
103.0
103.0
Treasury shares reserves
-
(75.4)
75.4
(75.4)
(75.4)
Pre-paid capital contributions in
kind from shareholders
0,0
0,0
-
0,0
Revaluation reserve
150.3
159.5
(9.3)
92.1
102.8
Legal reserves
490.8
449.4
41.5
429.6
408.4
Retained earnings
2,195.8
1,907.0
288.8
1.353.9
950.2
Total equity attributable to
shareholders of the Company
6,335.5
6,008.0
327.5
5,367.8
4,953.6
Non-controlling interests
(0.0)
(0.5)
0.4
(0.5)
-
Total equity attributable to
shareholders of the Company
6,335.4
6,007.5
327.9
5,367.2
4,953.6
Liabilities
Non-current liabilities
Lease liability – long term
34.4
29.1
5.2
34.5
12.1
Deferred tax liabilities
249.0
244.7
4.4
212.6
161.9
Employee benefits
162.7
151.4
11.3
117.3
149.2
Other liabilities
45.7
37.2
8.5
72.4
32.7
Long-term bank borrowings
1,824.5
794.3
1,030.2
647.2
118.8
Total non-current liabilities
2,316.3
1,256.7
1,059.6
1,083.9
474.7
Current liabilities
Lease liability – short term
7.4
14.1
(6.6)
19.2
9.4
Bank overdrafts
2,490.6
2,851.2
(360.6)
2,571.0
627.4
Trade payables
1,146.4
1,671.5
(525.1)
1,407.1
891.3
Other payables
1,585.9
1,035.1
550.8
867.5
271.3
Deferred revenue
6.6
7.8
(1.2)
24.8
9.7
Employee benefits
150.9
120.5
30.3
114.2
101.1
Provisions
75.9
41.2
34.7
53.7
34.9
Current income tax liability
13.5
13.9
(0.4)
1.1
-
166
167
DIRECTORS’ REPORT FOR THE YEAR 2024
DIRECTORS’ REPORT FOR THE YEAR 2024
ELECTRICA FINANCIAL REPORTING FOR 2024
ELECTRICA FINANCIAL REPORTING FOR 2024
ELECTRICA 2024 ANNUAL REPORT
ELECTRICA 2024 ANNUAL REPORT
31
December
2024
31
December
2023
Variation
2024/2023
31
December
2022
31
December
2021
Current portion of long-term bank
borrowings
565.8
523.3
42.5
113.5
509.7
Total current liabilities
6,043.0
6,278.6
(235.6)
5,172.2
2,454.9
Total liabilities
8,359.3
7,535.3
824.0
6,256.1
2,929.6
Total equity and liabilities
14,694.8
13,542.8
1,151.9
11,623.3
7,883.1
Source: Consolidated financial statements of Electrica Group as of 31 December 2024
The materiality threshold established internally at the Group level for analysis of main indicators (presented
below) is worth RON 77.5 mn., representing 5% of EBITDA.
Fixed assets
Fixed assets increased by RON 599.1 mn. in 2024, or 7.7%, from RON 7,787.9 mn. at 31 December 2023 to RON
8,387.0 mn. at 31 December 2024, this change being mainly the cumulative effect of:
• RON 457.7 mn. increase in network investments made by the distribution subsidiaries (the most relevant
values of investments and start-ups are shown in Appendix 2);
• increase of RON 141.9 mn. in property, plant and equipment, mainly representing investments in the
production of electricity from renewable sources.
Current assets
In 2024, current assets increased by RON 552.8 mn compared to 2023, or 9.6%, from RON 5,754.9 mn to RON
6,307.7 mn., this evolution is mainly due to the increase in trade receivables by 1,135.2 million RON, an impact
offset by the decrease in subsidies to be received in 2024 by 637.8 million RON.
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 1,135.2 mn. in 2024, or 44.7%, from RON 2,540.4 mn. to RON 3,675.7 mn. at
31 December 2024.
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 77.2 mn., or 20.5%, to RON 454.5 mn. from RON 377.2 mn. in 2023.
Table 33. Cash and cash equivalents 2024-2022
(mil. RON)
31 December
2024
31 December
2023
31 December
2022
Bank current accounts
330.1
223.2
141.7
Call deposits
123.9
154.0
193.2
Cash in hand
0.5
0.0
-
Total cash and cash equivalents in the consolidated
statement of financial position
454.5
377.2
334.9
Overdrafts used for cash management purposes
-
-
-
Total cash and cash equivalents in the consolidated
statement of cash flows
454.5
377.2
334.9
Source: Consolidated financial statements of Electrica Group as of 31 December 2024
Share capital and share premium
The issued share capital in nominal terms consists of 339,553,004 ordinary shares at 31 December 2024 (31
December 2023: 346,443,597) with a nominal value of RON 10 per share.
On July 11, 2024, the Bucharest Trade Register Office admitted the request to reduce the share capital of SE
Electrica S.A., according to the EGMS decision no. 1/25.04.2024. The share capital of SE Electrica SA is thus
reduced from the value of RON 3,464,435,970 to the value of RON 3,395,530,040, and the number of shares is
reduced from 346,443,597 shares to 339,553,004 shares.
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”.
Table 34. Number of shares 2024 - 2022
Number of ordinary shares
2024
2023
2022
Number of shares at 1 January
339,553,004
346,443,597
346,443,597
Shares issued during the year
-
-
-
Number of shares at 31 December
339,553,004
346,443,597
346,443,597
Source: Electrica
168
169
DIRECTORS’ REPORT FOR THE YEAR 2024
DIRECTORS’ REPORT FOR THE YEAR 2024
ELECTRICA FINANCIAL REPORTING FOR 2024
ELECTRICA FINANCIAL REPORTING FOR 2024
ELECTRICA 2024 ANNUAL REPORT
ELECTRICA 2024 ANNUAL REPORT
Revaluation reserves
The Group performed the last revaluation of fixed assets on 31.12.2023. The reconciliation between the opening
balance and the closing balance of the revaluation reserve is presented below:
Table 35. Revaluation reserves 2024-2022 (RON mn.)
2024
2023
2022
Balance at 1 January
159.5
92.1
102.8
Revaluation surplus of land, land improvements and
buildings
-
85.5
-
Release of revaluation reserve to retained earnings
corresponding to depreciation and disposals of property,
plant and equipment
-
(4.4)
(10.7)
Deferred tax liability arising on revaluation of land, land
improvements and buildings
(9.3)
(13.7)
-
Balance at 31 December
150.3
159.5
92.1
Source: Consolidated financial statements of Electrica Group as of 31 December 2024
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.
Table 36. Legal reserves 2024-2022 (RON mn.)
Legal reserves
Balance at 1 January 2022
408.4
Set-up of legal reserves
21.2
Balance at 31 December 2022
429.6
Set-up of legal reserves
19.8
Balance at 31 December 2023
449.4
Set-up of legal reserves
41.5
Balance at 31 December 2024
490.8
Source: Consolidated financial statements of Electrica Group as of 31 December 2024
Non-current liabilities
Non-current liabilities increased from RON 1,256.7 mn.
as at 31 December 2023 to RON 2,316.3 mn. as at 31
December 2024.
This evolution is a net effect of the variation of the
main categories of long-term debts, the most
significant of which is the increase in the balances of
long-term loans (CEC Bank and Exim Bank), through
drawings made in 2024 mainly to finance the Group’s
investments.
Current liabilities
In 2024, current liabilities decreased by RON 235.6 mn.
to RON 6,043.0 mn. from RON 6,278.6 mn. at the end
of 2023, mainly due to the evolution of the categories
listed below.
Overdrafts
The overdrafts decreased in 2024 by RON 360.6 mn.
to RON 2,490.6 mn., from RON 2,851.2 mn. at the end
of 2023.
Trade payables
As of 31 December 2024, trade payables decreased
by approximately RON 525.1 mn. to RON 1,146.4 mn.
from RON 1,671.5 mn. as at 31 December 2023.
Other payables
As of 31 December 2024, other liabilities increased
by approximately RON 550.8 mn. to RON 1,585.9 mn.
from RON 1,035.1 mn. as of 31 December 2023, of which
increases with debts to prosumers by RON 127.7 mn.,
green certificate suppliers by approximately RON
212.5 mn. and various electricity creditors (amounts
collected from customers and not compensated
on the invoice) by RON 218.7 mn. while debts to the
state decreased by RON 24.3 mn. Other debts include
mainly green certificate suppliers, prosumers, various
creditors, guarantees, connection fee, habitat tax
and cogeneration contributions.
170
171
DIRECTORS’ REPORT FOR THE YEAR 2024
DIRECTORS’ REPORT FOR THE YEAR 2024
ELECTRICA FINANCIAL REPORTING FOR 2024
ELECTRICA FINANCIAL REPORTING FOR 2024
ELECTRICA 2024 ANNUAL REPORT
ELECTRICA 2024 ANNUAL REPORT
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 2024, 2023,
2022 and 2021.
Table 37. Consolidated statement of profit or loss (RON mn.) - S-IFRS-EU
2023
2022
Variation
2023/2022
2021
2021
Revenue
8,995.2
9,816.6
(692.0)
10,009.9
7,178.9
Other income
1,688.9
3,498.6
(1,809.7)
2,841.0
195.8
Electricity and natural gas purchased
(6,588.8)
(9,058.0)
2,339.8
(10,506.8)
(5,694.7)
Construction costs related to concession
arrangements
(932.7)
(976.4)
43.8
(593.5)
(485.8)
Employee benefits
(1,077.6)
(962.1)
(115.5)
(823.4)
(802.7)
Repairs, maintenance and materials
(131.0)
(95.2)
(35.7)
(88.2)
(102.4)
Depreciation and amortization
(598.2)
(524.5)
(73.7)
(496.3)
(480.8)
Impairment for trade and other receivables,
net
(102.0)
(75.8)
(26.1)
(112.3)
(70.6)
Other operating expenses
(490.0)
(431.4)
(58.6)
(353.0)
(343.1)
Operating profit
764.0
1,191.8
(427.8)
(122.6)
(605.5)
Finance income
12.6
3.4
9.2
9.7
2.6
Finance costs
(289.8)
(297.2)
7.4
(174.7)
(29.5)
Net finance cost
(277.2)
(293.8)
16.6
(165.0)
(26.9)
Profit before tax
486.8
897.9
(411.2)
(287.6)
(632.4)
Income tax expense
(97.2)
(125.8)
28.6
47.2
79.5
Profit for the year
389.5
772.1
(382.6)
(240.5)
(552.9)
Earnings per share
Basic and diluted earnings per share (RON)
1.15
2.27
(1.1)
(0.71)
(1.63)
Source: Consolidated financial statements of Electrica Group as of 31 December 2024
The materiality threshold established internally at the Group level for analysis of main indicators (presented
below) is worth RON 68.0 mn., representing 5% of EBITDA.
Key financial indicators for 2024 and their evolution compared to 2023:
• Revenues: RON 8.995,2 mn., down RON 821.4 mn., or 8.4%;
• EBITDA: positive RON 1,360.2 mn., down RON 353.9 mn. or 20.6%;
• EBIT: positive RON 764.0 mn., down RON 427.8 mn.;
• EBT: positive RON 486,8 mn., down RON 411.2 mn.;
• Net result: net profit of 389.5 mn. RON, down 382.6 mn. RON.
Revenues and other income
In 2024, Electrica recorded total revenues (including other operating revenues) of RON 10,684.1 mn., a decrease
of RON 2,631.1 mn., or 19.8%, from RON 13,315.8 mn. in 2023; the variation is generated by the evolution of other
operating revenues, which mainly represent subsidies for the supply segment. Subsidies decreased as a
result of the reduction in the costs of purchased electricity.
Revenues
As at 31 December 2024, Electrica recorded revenues of RON 8,995.2 mn., a decrease of RON 821.4 mn. compared
to 31 December 2023, mainly due to the RON 954.7 mn. decrease in the supply segment;
Figure 39: Revenue for 2024 and comparative information (RON mn.) - S-IFRS-EU
Source: Electrica
9,401
9,273
8,454
609
543
542
10,010
9,817
8,995
2022
2023
2024
Revenues excl Green Certificates
Green Certificates Revenues
172
173
DIRECTORS’ REPORT FOR THE YEAR 2024
DIRECTORS’ REPORT FOR THE YEAR 2024
ELECTRICA FINANCIAL REPORTING FOR 2024
ELECTRICA FINANCIAL REPORTING FOR 2024
ELECTRICA 2024 ANNUAL REPORT
ELECTRICA 2024 ANNUAL REPORT
Electricity and natural gas purchased
In 2024, purchased electricity expenditure decreased by RON 2,469.1 mn., or 27.3%, to RON 6,588.8 mn. from
RON 9,058.0 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).
Table 38. Electricity, natural gas and goods purchased 2024-2021 (RON mn.) - S-IFRS-EU
(mn. RON)
2024
2023
2022
VAR
2024/2023
2021
Electricity purchased to cover
network losses
1,099.5
1,039.9
1,987.2
59.6
1,087.1
Electricity, natural gas and goods
and purchased for supply
4,643.4
7,202.1
7,613.1
(2,558.7)
3,750.0
Transmission and system services
related to supply activities
304.2
272.6
297.4
31.6
275.9
Green certificates
541.7
543.4
609.1
(1.7)
581.7
Total electricity and natural gas
purchased
6,588.8
9,058.0
10,506.8
(2,469.1)
5,694.7
Source: Electrica
Construction costs
In 2024, the costs for the construction of electricity grids in connection with concession agreements decreased
by RON 43.8 mn. or 4.5% to RON 932.7 mn. from RON 976.4 mn. recorded in 2023, correlating with the evolution
of the investments recognizable in RAB made in 2024.
EBITDA
Figure 40: EBITDA and EBITDA margin for 2024 and comparative information (RON mn. and %) - S-IFRS-
EU
Source: Electrica
Operating profit
The Group Operating profit (EBIT) decreased by approximately RON 427.8 mn., compared to the same period
last year, mainly adding to EBIT evolution the unfavorable impact from the supply segment.
Figure 41: EBIT and EBIT margin for 2024 and comparative information (RON mn. and %)
Source: Electrica
374
1,714
1,360
3.7%
17.5%
15.1%
2022
2023
2024
EBITDA
EBITDA Margin
1,192
764
-1.2%
12.1%
8.5%
2022
2023
2024
(123)
EBITDA
EBITDA Margin
174
175
DIRECTORS’ REPORT FOR THE YEAR 2024
DIRECTORS’ REPORT FOR THE YEAR 2024
ELECTRICA FINANCIAL REPORTING FOR 2024
ELECTRICA FINANCIAL REPORTING FOR 2024
ELECTRICA 2024 ANNUAL REPORT
ELECTRICA 2024 ANNUAL REPORT
(240)
772
z
-2.4%
7.9%
4.3%
2022
2023
2024
390
Net Result
Net Result Margin
Net finance cost
Net financial expenses (loss from net financial activity) at group recorded a slight improvement of RON 16.6
mn. in 2024 compared to 2023, as a result of the increase in financial income, correlated with the decrease
in expenses.
Profit before tax
The Group recorded a gross profit in the amount of RON 486.8 mn. compared to RON 897.9 mn. in 2023 as a
result of the factors mentioned above.
Income tax expense
The tax on income was an expense of RON 97.2 mn. in 2024, generated by the incurred gross profit.
Net result for the year
As a result of the factors presented above, in 2024 the net result of the exercise materialized in a profit of
RON 389.5 mn., having a decrease of RON 382.6 mn. compared to the profit of RON 772.1 mn. recorded in 2023.
Figure 42: Net profit and Net profit margin for 2024 and comparative information (RON mn. and %) -
S-IFRS-EU
Source: Electrica
Figure 43: Analysis of net regulated result - OMFP 1802/2014 - OMFP 2844/2016 - IFRS-EU for distribution segment 2024 (RON mn.)
Source: Electrica
The positive regulated result for 2024 is RON 900 million, without including the effect of capitalizing the negative deviation of the NL cost achieved,
in the amount of RON 190 million, determined for the quantity of NL achieved in 2024.
3810
- 1076
- 1152
-683
900
191
-685
683
-81
-12
-64
932
-172
-111
649
34
46
-8
721
-191
205
-12
724
Total net revenue
NL realized
Controlable cost
Regulated amortiz.
Regulated result 2024
NL Capitalization
Accounting deprec.
Regulated deprec.
Provision adjust.
Monopoly tax
Other costs
Operating result
Financial result
Profit tax OMFP 1802
OMFP 1802 result 2024
OMFP 2844 adj. interest cost capit
OMFP 2844 adj. DTA supply
Other OMFP 2844 adj.
OMFP 2844 net result 2024
NL Capitalization (derecognition)
NL Amortization (derecognition)
Tax related to NL capitalization
IFRS-EU 2024 Result
176
177
DIRECTORS’ REPORT FOR THE YEAR 2024
DIRECTORS’ REPORT FOR THE YEAR 2024
ELECTRICA FINANCIAL REPORTING FOR 2024
ELECTRICA FINANCIAL REPORTING FOR 2024
ELECTRICA 2024 ANNUAL REPORT
ELECTRICA 2024 ANNUAL REPORT
6.2.2 Consolidated statement of profit or loss – S-OMFP 2844/2016
The following table presents the consolidated statement of profit or loss of Electrica Group for 2024, 2023,
2022 and 2021.
Table 39. Consolidated statement of profit or loss (RON mn.) - S-OMFP 2844/2016
2024
2023
Variation
2024/2023
2022
2021
Revenue
8,995.2
9,816.6
(821.4)
10,009.9
7,178.9
Other income
1,688.9
3,498.6
(1,809.7)
2,841.0
195.8
Capitalised costs of intangible non-
current assets
190.1
18.6
171.5
989.3
-
Electricity and natural gas purchased
(6,588.8)
(9,058.0)
2,469.1
(10,506.8)
(5,694.7)
Construction costs related to concession
arrangements
(932.7)
(976.4)
43.8
(593.5)
(485.8)
Employee benefits
(1,077.6)
(962.1)
(115.5)
(823.4)
(802.7)
Repairs, maintenance and materials
(131.0)
(95.2)
(35.7)
(88.2)
(102.4)
Depreciation and amortization
(803.8)
(723.7)
(80.1)
(534.0)
(480.8)
Impairment for trade and other receivables,
net
(102.0)
(75.8)
(26.1)
(112.3)
(70.6)
Other operating expenses
(490.0)
(431.4)
(58.6)
(353.0)
(343.1)
Operating profit
748.4
1,011.3
(262.7)
828.9
(605.5)
Finance income
12.6
3.4
9.2
9.7
2.6
Finance costs
(289.8)
(297.2)
7.4
(174.7)
(29.5)
Net finance cost
(277.2)
(293.8)
16.6
(165.0)
(26.9)
Profit before tax
471.2
717.3
(246.1)
663.9
(632.4)
Income tax expense
(94.7)
(96.9)
2.2
(105.1)
79.5
Profit for the year
376.5
620.4
(243.9)
558.8
(552.9)
Earnings per share
Basic and diluted earnings per share
(RON)
1,11
1,83
(0,72)
1,65
(1,63)
Source: Consolidated financial statements of Electrica Group as of 31 December 2024
The materiality threshold established internally at the Group level for analysis of main indicators (presented
below) is worth RON 77.5 mn., representing 5% of EBITDA.
Key financial indicators for 2024 and their evolution compared to 2023:
• Revenues: RON 8,995.2 mn., down RON 821.4 mn., or 8.4%;
• EBITDA: positive RON 1,550.3 mn., down RON 182.4 mn. or 10.5%;
• EBIT: positive RON 748.4 mn., down RON 262.7 mn.;
• EBT: positive RON 471,2 mn., down RON 246.1 mn.;
• Net result: net profit of 376.5 mn. RON, down 243.9 mn. RON.
Revenues and other income
In 2024, Electrica recorded total revenues (including other operating revenues) of RON 10,874.1 mn., a decrease
of RON 2,459.6 mn., or 18.4%, from RON 13,333.8 mn. in 2023; the variation is generated by the evolution of other
operating revenues, which mainly represent subsidies for the supply segment. Subsidies decreased as a
result of the reduction in the costs of purchased electricity.
Revenues
As at 31 December 2024, Electrica recorded revenues of RON 8,995.2 mn., a decrease of RON 821.4 mn. compared
to 31 December 2023, mainly due to the decrease of RON 954.7 mn. in the supply segment.
Figure 44: Revenue for 2024 and comparative information (RON mn.) - S-OMFP 2844/2016
Source: Electrica
9,401
9,273
8,454
609
543
542
10,010
9,817
8,995
2022
2023
2024
Revenues excl Green Certificates
Green Certificates Revenues
178
179
DIRECTORS’ REPORT FOR THE YEAR 2024
DIRECTORS’ REPORT FOR THE YEAR 2024
ELECTRICA FINANCIAL REPORTING FOR 2024
ELECTRICA FINANCIAL REPORTING FOR 2024
ELECTRICA 2024 ANNUAL REPORT
ELECTRICA 2024 ANNUAL REPORT
1,363
1,733
1,550
13.6%
17.7%
17.2%
2022
2023
2024
EBITDA
EBITDA Margin
EBITDA and EBITDA margin
Figure 45: EBITDA and EBITDA margin for 2024 and comparative information (RON mn. and %) -
S-OMFP 2844/2016
Source: Electrica
Operating profit
The Group Operating profit (EBIT) decreased by approximately RON 262.7 mn., compared to the same period
last year, mainly adding to EBIT evolution the unfavorable impact from the supply segment.
Figure 46: EBIT and EBIT margin for 2024 and comparative information (RON mn. and %) - S-OMFP
2844/2016
Source: Electrica
Net finance cost
Net financial expenses (loss from net financial activity) at group recorded a slight improvement of RON 16.6
mn. in 2024 compared to 2023, as a result of the increase in financial income, correlated with the decrease
in expenses.
Profit before tax
The Group recorded a gross profit in the amount of RON 471.2 mn. compared to RON 717.3 mn. in 2023 as a
result of the factors mentioned above.
Capitalised costs of intangible non-current assets
In the distribution segment, the capitalization of additional costs for the purchase of electricity is recognized as
revenue from the production of intangible assets in the amount of RON 190.1 mn. in 2024, compared to RON 18.6 mn.
in 2023.
Electricity and natural gas purchased
In 2024, purchased electricity expenditure decreased by RON 2,469.1 mn., or 27.3%, to RON 6,588.8 mn. from
RON 9,058.0 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).
Table 40. Electricity, natural gas and goods purchased 2024-2021 (RON mn.) - S-OMFP 2844/2016
(mn. RON)
2024
2023
2022
VAR
2024/2023
2021
Electricity purchased to cover
network losses
1,099.5
1,039.9
1,987.2
59.6
1,087.1
Electricity, natural gas and goods
and purchased for supply
4,643.4
7,202.1
7,613.1
(2,558.7)
3,750.0
Transmission and system services
related to supply activities
304.2
272.6
297.4
31.6
275.9
Green certificates
541.7
543.4
609.1
(1.7)
581.7
Total electricity and natural gas
purchased
6,588.8
9,058.0
10,506.8
(2,469.1)
5,694.7
Source: Electrica
Construction costs
In 2024, the costs for the construction of electricity grids in connection with concession agreements decreased
by RON 43.8 mn. or 4.5% to RON 932.7 mn. from RON 976.4 mn. recorded in 2023, correlating with the evolution
of the investments recognizable in RAB made in 2024.
829
1.011
748
8.3%
10.3%
8.3%
2022
2023
2024
EBITDA
EBITDA Margin
180
181
DIRECTORS’ REPORT FOR THE YEAR 2024
DIRECTORS’ REPORT FOR THE YEAR 2024
ELECTRICA FINANCIAL REPORTING FOR 2024
ELECTRICA FINANCIAL REPORTING FOR 2024
ELECTRICA 2024 ANNUAL REPORT
ELECTRICA 2024 ANNUAL REPORT
Income tax expense
The tax on income was an expense of RON 94.7 mn. in 2024, generated by the incurred gross profit.
Net result for the year
As a result of the factors presented above, in 2024 the net result of the exercise materialized in a profit of RON
376.5 mn., having a decrease of RON 243.9 mn. compared to the profit of RON 620.4 mn. recorded in 2023.
Figure 47: Net profit and Net profit margin for 2024 and comparative information (RON mn. and %) -
S-OMFP 2844/2016
Source: Electrica
Figure 48: Analysis of net regulated result - OMFP 1802/2014 - OMFP 2844/2016 - IFRS-EU for distribution segment 2024 (RON mn.)
Source: Electrica
The positive regulated result for 2024 is RON 900 million, without including the effect of capitalizing the negative deviation of the NL cost achieved,
in the amount of RON 190 million, determined for the quantity of NL achieved in 2024.
559
620
376
5.6%
6.3%
4.2%
2022
2023
2024
Net Result
Net Result Margin
3810
- 1076
- 1152
-683
900
191
-685
683
-81
-12
-64
932
-172
-111
649
34
46
-8
721
Total net revenue
NL realized
Controlable cost
Regulated amortiz.
Regulated result 2024
NL Capitalization
Accounting deprec.
Regulated deprec.
Provision adjust.
Monopoly tax
Other costs
Operating result
Financial result
Profit tax OMFP 1802
OMFP 1802 result 2024
OMFP 2844 adj. interest cost capit
OMFP 2844 adj. DTA supply
Other OMFP 2844 adj.
OMFP 2844 net result 2024
182
183
DIRECTORS’ REPORT FOR THE YEAR 2024
DIRECTORS’ REPORT FOR THE YEAR 2024
ELECTRICA FINANCIAL REPORTING FOR 2024
ELECTRICA FINANCIAL REPORTING FOR 2024
ELECTRICA 2024 ANNUAL REPORT
ELECTRICA 2024 ANNUAL REPORT
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 2024, 2023, 2022
and 2021.
Table 41. Consolidated cash flow statement (RON mn.) - S-IFRS-EU
2024
2023
Variation
2022
2021
2024/2023
2022
2021
Cash flows from operating activities
Profit for the year
389.5
772.1
)382.6(
)240.5(
)552.9(
Adjustments for:
Depreciation
18.1
16.4
1.7
19.9
21.1
Amortization
580.1
508.1
72.0
476.5
72.0
Impairment of property, plant and equipment
and intangible assets, net
(1.9)
-
(1.9)
-
1.9
Loss on disposal of property, plant and
equipment and intangible assets
1.9
(0.1)
2.0
(0.4)
2.7
Evaluation of fixed assets recognized in profit,
net
-
(2.1)
2.1
-
-
(Reversal of impairment)/Impairment of trade
and other receivables, net
102.0
75.8
26.1
112.3
70.6
(Reversal of impairment)/Impairment of assets
held for sale
-
-
-
-
0.6
Change in provisions, net
34.7
(12.5)
47.3
18.8
15.7
Net finance cost
277.2
293.8
(16.6)
165.0
26.9
Changes in employee benefits obligations
26.3
29.4
(3.0)
(4.4)
5.1
Corporate income tax expense
97.2
125.8
(28.6)
(47.2)
(79.5)
1,525.2
1,806.7
)281.5(
500.1
)33.9(
Trade receivables
(1,561.8)
(309.2)
(1,252.6)
(1,286.7)
(391.4)
Other receivables
14.4
5.6
8.8
(138.3)
(22.9)
Prepayments
7.9
0.9
6.9
(8.8)
(2.2)
Inventories
3.8
(1.7)
5.5
(41.0)
(2.9)
Trade payables
(112.2)
244.4
(356.6)
494.6
274.8
2024
2023
Variation
2022
2021
Other payables
629.0
109.6
519.4
722.4
32.5
Subsidies receivables
637.8
(1,333.7)
1,971.6
(1,280.8)
-
Employee benefits
-
-
-
(6.5)
3.2
Deferred revenue
(1.2)
(16.9)
15.7
15.1
4.0
Cash generated from operating activities
1,142.9
505.7
637.1
(1,030.0)
(138.9)
Interest paid
(294.9)
(278.5)
(16.4)
(149.4)
(24.1)
Income tax paid
(147.3)
(59.0)
(88.3)
(1.2)
(31.4)
Net cash from operating activities
700.6
168.3
532.4
(1,180.6)
(194.4)
Cash flows from investing activities
Payments for purchases of property, plant and
equipment
(149.2)
(10.4)
(138.8)
(8.3)
(10.5)
Payments for network construction related to
concession agreements
(1,085.7)
(845.3)
(240.3)
(537.8)
(483.8)
Payments for purchase of other intangible
assets
(16.5)
(21.3)
4.8
(7.8)
(6.3)
Proceeds from sale of property, plant and
equipment
-
0.2
(0.2)
0.6
1.5
Interest received
12.1
3.3
8.8
2.8
1.8
Restricted cash
-
-
-
320.0
Net cash effect from gain of control over the
acquired subsidiary
(7.4)
(1.9)
(5.4)
-
-
Payment for acquisition of associated
-
(4.1)
4.1
(0.0)
(25.8)
Payment for acquisition of subsidiaries
(8.5)
(6.3)
(2.1)
(4.5)
-
184
185
DIRECTORS’ REPORT FOR THE YEAR 2024
DIRECTORS’ REPORT FOR THE YEAR 2024
ELECTRICA FINANCIAL REPORTING FOR 2024
ELECTRICA FINANCIAL REPORTING FOR 2024
ELECTRICA 2024 ANNUAL REPORT
ELECTRICA 2024 ANNUAL REPORT
2024
2023
Variation
2022
2021
Net cash used in investing activities
(1,255.1)
(885.9)
(369.1)
(554.9)
(203.2)
Proceeds from long term bank borrowings
1,635.5
742.7
892.8
217.6
234.7
Proceeds from overdrafts
82.3
271.9
(189.7)
1,900.4
-
Repayment of long term bank loans
(1,018.9)
(187.7)
(831.2)
(92.9)
(385.9)
Payment of lease liabilities
(27.2)
(26.8)
(0.4)
(24.2)
(15.2)
Dividends paid
(40.0)
(40.1)
0.2
(152.3)
(247.6)
Net cash from/(used in) financing activities
631.7
760.0
(128.3)
1,848.6
(414.0)
Net (decrease)/increase in cash and cash
equivalents
77.2
42.3
34.9
113.1
(811.5)
Cash and cash equivalents at 1 January
377.2
334.9
42.3
(405.6)
406.0
Overdrafts used for cash management purposes
-
-
-
627.4
-
Cash and cash equivalents at 31 December
454.5
377.2
77.2
334.9
(405.6)
Source: Consolidated financial statements of Electrica Group as of 31 December 2024
The materiality threshold established internally at the Group level for analysis of main indicators (presented
below) is worth RON 68.0 mn., representing 5% of EBITDA.
In 2024, the net increase in cash and cash equivalents
amounted to RON 77.2 mn.
The net profit for the period was RON 389.5 million;
the main adjustments for non-monetary elements
of the net profit were: the addition of depreciation
of tangible and intangible assets in the amount of
RON 598.2 million, the elimination of the impact of
value adjustments for trade receivables of RON 102.0
million, the addition of income tax expense of RON
97.2 million and the net financial loss of RON 277.2
million, thus the cash flow from operations reaches
RON 1,525.2 million.
The changes in working capital had an unfavorable
effect of RON 382.3 million. This impact was generated
by the negative impact of changes in trade and
other receivables in the amount of RON 1,547.4 million
and the positive impact of the change in trade and
other payables in the amount of RON 516.8 million.
RON and subsidies receivable in the amount of
637.8 million RON, thus reducing the cash flow from
operations (FFO) to the amount of 1,142.9 million RON.
The income tax paid and the interests paid were in
the total amount of 442.2 million RON, thus the net
cash generated from the operating activity is 700.6
million RON.
Cash was used for investment activities in the amount
of 1,255.1 million RON, the highest values being related
to payments for network construction in connection
with concession agreements of 1,085.7 million
RON, these registering an increase in payments for
investments of 240.3 million RON compared to the
comparative period and as a result of a higher
investment plan in 2024 vs. 2023 in the distribution
segment and for payments for the acquisition of
tangible assets, these registering an increase of 138.8
million RON from 10.4 million RON in 2023 reaching the
value of 149.2 million RON.
Financing activities generated a decrease in cash
and cash equivalents of 128.3 million RON (positive
impact due to lower borrowed cash than in 2023), the
main factors being long-term bank loan withdrawals
of RON 1,635.5 million, overdraft withdrawals of RON
82.3 million and loan repayments of RON 1,018.9
million. Dividends were paid to shareholders of RON
40.0 million.
In 2023, the net increase in cash and cash equivalents
amounted to RON 42.3 mn.
The net profit for the period was RON 772.1 million;
the main adjustments for non-monetary elements
of the net profit were: the addition of depreciation
of tangible and intangible assets in the amount of
RON 508.1 million, the elimination of the impact of
value adjustments for trade receivables of RON 75.8
million, the addition of income tax expense of RON
96.9 million and the net financial loss of RON 293.8
million, thus the cash flow from operations reaches
RON 1,806.7 million.
The changes in working capital had an unfavorable
effect of RON 1,301.0 million. This impact was generated
by the changes with a negative impact of subsidies
receivable in the amount of RON 1,333.7 million
and trade receivables and other receivables in the
amount of RON 303.6 million. RON and the positive
impact of the change in trade and other payables in
the amount of RON 354.0 million, thus reducing the
cash flow from operations (FFO) to the value of RON
505.7 million. The income tax paid and the interests
paid were in the total amount of RON 337.5 million,
thus the net cash generated from operating activities
is RON 168.3 million.
Cash was used for investment activities in the amount
of RON 885.9 million, the highest values being related
to payments for network construction in connection
with concession agreements of RON 845.3 million,
which recorded an increase in investment payments
of RON 307.5 million compared to the comparative
period, and as a result of a higher investment plan in
2023 vs. 2022 in the distribution segment.
Financing activities generated a decrease in cash
and cash equivalents of RON 1,088.6 million (positive
impact due to lower borrowed cash than in 2022), the
main factors being long-term bank loan withdrawals
of RON 742.7 million, overdraft withdrawals of RON
271.9 million and loan repayments of RON 187.7 million.
Dividends were paid to shareholders, amounting to
RON 40.1 million.
186
187
DIRECTORS’ REPORT FOR THE YEAR 2024
DIRECTORS’ REPORT FOR THE YEAR 2024
ELECTRICA FINANCIAL REPORTING FOR 2024
ELECTRICA FINANCIAL REPORTING FOR 2024
ELECTRICA 2024 ANNUAL REPORT
ELECTRICA 2024 ANNUAL REPORT
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 2024, 2023, 2022
and 2021.
Table 42. Consolidated cash flow statement (RON mn.) - S-OMFP 2844/2016
2024
2023
Variation
2024 vs.
2023
2022
2021
Cash flows from operating activities
Profit for the year
376.5
620.4
(243.9)
558.8
(552.9)
Adjustments for:
Depreciation
18.1
16.4
1.7
19.9
21.1
Amortization
785.7
707.3
78.4
514.2
459.7
Capitalized cost with NL
(190.1)
(18.6)
(171.5)
(989.3)
Impairment of property, plant and equipment and
intangible assets, net
(1.9)
-
(1.9)
-
(3.9)
Loss on disposal of property, plant and equipment
and intangible assets
1.9
(0.1)
2.0
(0.4)
2.7
Evaluation of fixed assets recognized in profit, net
-
(2.1)
2.1
-
-
(Reversal of impairment)/Impairment of trade
and other receivables, net
102.0
75.8
26.1
112.3
70.6
(Reversal of impairment)/Impairment of assets
held for sale
-
-
-
-
0.6
Change in provisions, net
34.7
(12.5)
47.3
18.8
15.7
Net finance cost
277.2
293.8
(16.6)
165.0
26.9
Changes in employee benefits obligations
26.3
29.4
(3.0)
(4.4)
5.1
Corporate income tax expense
94.7
96.9
(2.2)
105.1
(79.5)
1,525.2
1,806.7
(281.5)
500.1
(33.9)
Changes in:
Trade receivables
(1,561.8)
(309.2)
(1,252.6)
(1,286.7)
(391.4)
Other receivables
14.4
5.6
8.8
(138.3)
(22.9)
2024
2023
Variation
2024 vs.
2023
2022
2021
Prepayments
7.9
0.9
6.9
(8.8)
(2.2)
Inventories
3.8
(1.7)
5.5
(41.0)
(2.9)
Trade payables
(112.2)
244.4
(356.6)
494.6
274.8
Other payables
629.0
109.6
519.4
722.4
32.5
Subsidies receivables
637.8
(1,333.7)
1,971.6
(1,280.8)
-
Employee benefits
-
-
-
(6.5)
3.2
Deferred revenue
(1.2)
(16.9)
15.7
15.1
4.0
Cash generated from operating activities
1,142.9
505.7
637.1
(1,030.0)
(138.9)
Interest paid
(294.9)
(278.5)
(16.4)
(149.4)
(24.1)
Income tax paid
(147.3)
(59.0)
(88.3)
(1.2)
(31.4)
Net cash from operating activities
700.6
168.3
532.4
(1,180.6)
(194.4)
Cash flows from investing activities
Payments for purchases of property, plant and
equipment
(149.2)
(10.4)
(138.8)
(8.3)
(10.5)
Payments for network construction related to
concession agreements
(1,085.7)
(845.3)
(240.3)
(537.8)
(483.8)
Payments for purchase of other intangible assets
(16.5)
(21.3)
4.8
(7.8)
(6.3)
Proceeds from sale of property, plant and
equipment
-
0.2
(0.2)
0.6
1.5
Interest received
12.1
3.3
8.8
2.8
1.8
Restricted cash
-
-
-
320.0
Net cash effect from gain of control over the
acquired subsidiary
(7.4)
(1.9)
(5.4)
-
-
Payment for acquisition of associated
-
(4.1)
4.1
(0.0)
(25.8)
Payment for acquisition of subsidiaries
(8.5)
(6.3)
(2.1)
(4.5)
-
Net cash used in investing activities
(1,255.1)
(885.9)
(369.1)
(554.9)
(203.2)
188
189
DIRECTORS’ REPORT FOR THE YEAR 2024
DIRECTORS’ REPORT FOR THE YEAR 2024
ELECTRICA FINANCIAL REPORTING FOR 2024
ELECTRICA FINANCIAL REPORTING FOR 2024
ELECTRICA 2024 ANNUAL REPORT
ELECTRICA 2024 ANNUAL REPORT
2024
2023
Variation
2024 vs.
2023
2022
2021
Proceeds from long term bank borrowings
1,635.5
742.7
892.8
217.6
234.7
Proceeds from overdrafts
82.3
271.9
(189.7)
1,900.4
-
Repayment of long term bank loans
(1,018.9)
(187.7)
(831.2)
(92.9)
(385.9)
Payment of lease liabilities
(27.2)
(26.8)
(0.4)
(24.2)
(15.2)
Dividends paid
(40.0)
(40.1)
0.2
(152.3)
(247.6)
Net cash from/(used in) financing activities
631.7
760.0
(128.3)
1,848.6
(414.0)
Net (decrease)/increase in cash and cash
equivalents
77.2
42.3
34.9
113.1
(811.5)
Cash and cash equivalents at 1 January
377.2
334.9
42.3
(405.6)
406.0
Overdrafts used for cash management purposes
-
-
-
627.4
-
Cash and cash equivalents at 31 December
454.5
377.2
77.2
334.9
(405.6)
Source: Consolidated financial statements of Electrica Group as of 31 December 2024
The materiality threshold established internally at the Group level for analysis of main indicators (presented
below) is worth RON 77.5 mn., representing 5% of EBITDA.
In 2024, the net increase in cash and cash equivalents
amounted to RON 77.2 mn.
The net profit for the period was RON 376.5 million;
the main adjustments for non-monetary elements
of the net profit were: the addition of depreciation
of tangible and intangible assets in the amount of
RON 803.8 million, the elimination of the impact of
value adjustments for trade receivables of RON 102.0
million, the addition of income tax expense of RON
94.7 million and the net financial loss of RON 277.2
million, thus the cash flow from operations reaches
RON 1,525.2 million.
The changes in working capital had an unfavorable
effect of RON 382.3 million. This impact was generated
by the negative impact of changes in trade and
other receivables in the amount of RON 1,547.4 million
and the positive impact of the change in trade and
other payables in the amount of RON 516.8 million.
RON and subsidies receivable in the amount of
637.8 million RON, thus reducing the cash flow from
operations (FFO) to the amount of 1,142.9 million RON.
The income tax paid and the interests paid were in
the total amount of 442.2 million RON, thus the net
cash generated from the operating activity is 700.6
million RON.
Cash was used for investment activities in the amount
of 1,255.1 million RON, the highest values being related
to payments for network construction in connection
with concession agreements of 1,085.7 million
RON, these registering an increase in payments for
investments of 240.3 million RON compared to the
comparative period and as a result of a higher
investment plan in 2024 vs. 2023 in the distribution
segment and for payments for the acquisition of
tangible assets, these registering an increase of 138.8
million RON from 10.4 million RON in 2023 reaching the
value of 149.2 million RON.
Financing activities generated a decrease in cash
and cash equivalents of 128.3 million RON (positive
impact due to lower borrowed cash than in 2023), the
main factors being long-term bank loan withdrawals
of RON 1,635.5 million, overdraft withdrawals of RON
82.3 million and loan repayments of RON 1,018.9
million. Dividends were paid to shareholders of RON
40.0 million.
In 2023 , the net increase in cash and cash equivalents
amounted to RON 42.3 mn.
The net profit for the period was RON 620.4 million;
the main adjustments for non-monetary elements
of the net profit were: the addition of depreciation
of tangible and intangible assets in the amount of
RON 723.7 million, the elimination of the impact of
value adjustments for trade receivables of RON 75.8
million, the addition of income tax expense of RON
96.9 million and the net financial loss of RON 293.8
million, thus the cash flow from operations reaches
RON 1,806.7 million.
The changes in working capital had an unfavorable
effect of RON 1,301.0 million. This impact was generated
by the changes with a negative impact of subsidies
receivable in the amount of RON 1,333.7 million
and trade receivables and other receivables in the
amount of RON 303.6 million. RON and the positive
impact of the change in trade and other payables in
the amount of RON 354.0 million, thus reducing the
cash flow from operations (FFO) to the value of RON
505.7 million. The income tax paid and the interests
paid were in the total amount of RON 337.5 million,
thus the net cash generated from operating activities
is RON 168.3 million.
Cash was used for investment activities in the amount
of RON 885.9 million, the highest values being related
to payments for network construction in connection
with concession agreements of RON 845.3 million,
which recorded an increase in investment payments
of RON 307.5 million compared to the comparative
period, and as a result of a higher investment plan in
2023 vs. 2022 in the distribution segment.
Financing activities generated a decrease in cash
and cash equivalents of RON 1,088.6 million (positive
impact due to lower borrowed cash than in 2022), the
main factors being long-term bank loan withdrawals
of RON 742.7 million, overdraft withdrawals of RON
271.9 million and loan repayments of RON 187.7 million.
Dividends were paid to shareholders, amounting to
RON 40.1 million.
190
191
DIRECTORS’ REPORT FOR THE YEAR 2024
DIRECTORS’ REPORT FOR THE YEAR 2024
ELECTRICA FINANCIAL REPORTING FOR 2024
ELECTRICA FINANCIAL REPORTING FOR 2024
ELECTRICA 2024 ANNUAL REPORT
ELECTRICA 2024 ANNUAL REPORT
6.4 Separate statement of the financial position
Financial information selected from company’s separate statement of financial position.
Table 43. Separate statement of the financial position (RON mn.)
31
December
2024
31
December
2023
Var. 2024
vs. 2023
31
December
2022
31
December
2021
ASSETS
Non-current assets
Property, plant and equipment
178.6
145.1
33.5
98.9
100.1
Intangible assets
1.2
1.1
0.0
0.1
0.1
Goodwill
1.4
1.4
-
-
-
Investments in subsidiaries
2,342.4
2,309.9
32.4
2,298.1
2,285.2
Investments in associates
0.0
16.6
(16.6)
18.8
25.8
Other investments
7.0
7.0
-
7.0
-
Loans granted to subsidiaries – long
term
756.3
1.279.3
(522.9)
1,276.3
1,276.3
Right of use assets
17.1
4.0
13.1
0.3
0.5
Total non-current assets
3,304.0
3,764.5
(460.5)
3,699.6
3,688.0
Current assets
Cash and cash equivalents
8.0
19.2
(11.1)
105.6
5.8
Trade receivables
1.9
1.7
0.2
0.8
0.9
Other receivables
31.1
30.2
0.9
501.5
584.8
Loans granted to subsidiaries – cash
pooling
482.9
567.6
(84.8)
-
-
Inventories
0.0
0.0
-
-
-
Prepayments
2.0
1.0
0.9
1.0
0.8
Income tax receivable
0.1
-
0.1
-
-
Assets held for sale
0.3
0.3
-
0.3
0.3
Loans granted to subsidiaries – short
term
942.9
89.7
853.3
45.0
30.0
Total current assets
1,469.2
709.7
759.5
654.3
622.5
TOTAL ASSETS
4,773.2
4,474.2
299.0
4,353.8
4,310.5
31
December
2024
31
December
2023
Var. 2024
vs. 2023
31
December
2022
31
December
2021
EQUITY AND LIABILITIES
Equity
Share capital
3,395.5
3,464.4
(68.9)
3,464.4
3,464.4
Share premium
103.0
103.0
0.0
103.1
103.1
Treasury shares reserve
-
(75.4)
75.4
(75.4)
(75.4)
Revaluation reserves
20.0
20.3
(0.2)
11.8
12.4
Legal reserves
235.2
231.6
3.6
229.4
228.2
Other reserves
188.9
224.1
(35.2)
224.1
71.2
Retained earnings
67.1
12.4
54.7
38.9
319.6
Total equity
4,009.8
3,980.5
29.3
3,996.4
4,123.5
Liabilities
Non-current liabilities
Lease liability – long term
16.7
3.3
13.4
0.0
0.1
Bank borrowings – long term
-
-
-
100.0
-
Employee benefits
1.6
1.3
0.3
1.1
1.1
Total non-current liabilities
18.3
4.6
13.7
101.2
1.2
Current liabilities
Current portion of long-term bank
borrowings
236.0
216.8
19.3
-
-
Loans received from subsidiaries –
cash pooling
170.1
47.8
122.3
-
-
Credit lines
313.6
205.5
108.0
207.8
120.5
Lease liability – short term
0.8
0.8
0.0
0.2
0.4
Trade payables
7.8
6.6
1.1
4.7
4.0
Other payables
7.0
3.3
3.6
36.5
44.0
Deferred revenue
0.1
0.3
(0.2)
0.2
0.4
Employee benefits
8.3
7.3
1.0
5.8
12.2
Provisions
1.5
0.7
0.8
1.0
4.2
Total current liabilities
745.1
489.1
256.0
256.3
185.8
Total liabilities
763.4
493.7
269.7
357.5
186.9
Total equity and liabilities
4,773.2
4,474.2
299.0
4,353.8
4,310.5
Source: Separate financial statements of ELSA as of 31 December 2024
The materiality threshold established internally at individual level is worth RON 23.7 mn., representing 1/3 of
the gross profit.
192
193
DIRECTORS’ REPORT FOR THE YEAR 2024
DIRECTORS’ REPORT FOR THE YEAR 2024
ELECTRICA FINANCIAL REPORTING FOR 2024
ELECTRICA FINANCIAL REPORTING FOR 2024
ELECTRICA 2024 ANNUAL REPORT
ELECTRICA 2024 ANNUAL REPORT
Fixed assets
As of December 31, 2024, compared to December 31, 2023, fixed assets decreased by RON 460.5 mn., from
RON 3,764.5 mn. to RON 3,304.0 mn. The decrease is mainly due to the reduction in loans granted to affiliated
entities, which decreased by RON 522.9 mn. compared to the previous period, as a result of their presentation
on a short-term basis, which led to an increase of approximately RON 853.3 mn. in the current assets category
(the move from LT to ST and new loans granted during 2024). Also, within fixed assets, an increase of RON 62.5
mn. was recorded compared to 2023, mainly due to the capitalizations made on Vulturu Park, Central Finance
and the additions during the year on the assets related to the right of use (IFRS 16 impact).
Loans granted to subsidiaries
As of December 31, 2024, loans granted to subsidiaries decreased by RON 522.9 mn. compared to December
31, 2023, as a result of their reclassification to long-term from short-term.
Table 44. Loans granted to subsidiaries (long term) (mn. RON)
Loans granted to subsidiaries
31 December 2024
31 December 2023
Distributie Energie Electrica Romania S.A.
1,276.3
Total loans granted to subsidiaries – long term
756.3
1,276.3
Investments in associates
As of December 31, 2024, investments in subsidiaries increased by RON 32.4 mn., reaching RON 2,342.4 mn.,
due to the acquisition of shares up to 100% ownership of New Trend Energy SRL, Foton Power Energy SRL and
60% ownership of Crucea Power Park SRL.
Current assets
Cash pooling receivables include the receivables of Electrica SA as of 31 December 2024 as the leading cash
pool, in the two cash pooling systems implemented at Group level.
The decrease in 2024 by RON 84.8 mn. is due to the decrease in cash pooling system withdrawals of the
distribution subsidiary.
Loans granted to subsidiaries - cash pooling
Cash pooling receivables include the receivables of Electrica SA as of 31 December 2024 as the leading cash
pool, in the two cash pooling systems implemented at Group level.
The decrease in 2024 by RON 84.8 mn. is due to the decrease in cash pooling system withdrawals of the
distribution subsidiary.
Loans granted to subsidiaries (short term)
As of 31 December 2024, short-term loans granted to subsidiaries increased by 853.3 mn. RON compared
to the same period of the previous year, reaching the value of RON 942.9 mn. Increase generated by the
modification of loan maturities and their reclassification from long-term to short-term.
Table 45. Loans granted to subsidiaries (short term) (mn. RON)
Loans granted to subsidiaries
31 December 2024
31 December 2023
Electrica Furnizare S.A.
319.3
80.0
Sunwind Energy S.R.L.
72.7
2.5
New Trend Energy S.R.L.
18.2
7.2
Distributie Energie Electrica Romania S.A.
520.0
-
Crucea Power Park S.R.L.
4.3
-
Foton Power Energy S.R.L.
8.4
-
Total loans granted to subsidiaries – short term
942.9
89.7
Share Capital
The issued share capital in nominal terms consists of
339,553,004 ordinary shares as at 31 December 2024
(346,443,597 ordinary shares as of 31 December 2023)
with a nominal value of RON 10 per share. Starting
from 4 July 2014, after the Initial Public Offering, the
Company’s shares are listed on the Bucharest Stock
Exchange, and the global depositary receipts are
listed on the London Stock Exchange. All shares confer
equal rights on the company’s net assets, except for
treasury shares.
On 11 July 2024, the Bucharest Trade Register Office
admitted the request to reduce Electrica’s share
capital, in accordance with the decision of the
Extraordinary General Meeting of Shareholders of the
company. Electrica’s share capital is thus reduced
from RON 3,464,435,970 to RON 3,395,530,040, and
the number of shares is reduced from 346,443,597
shares to 339,553,004 shares.
As a result of the reduction of the share capital, the
Romanian State holds a percentage of 49.7850% of
the subscribed share capital, and other shareholders
- list type (natural persons and legal entities), hold a
percentage of 50.2150% of the share capital.
ELSA recognizes changes in share capital only after
their approval in the General Shareholders Meeting
and their registration in the Trade Register.
194
195
DIRECTORS’ REPORT FOR THE YEAR 2024
DIRECTORS’ REPORT FOR THE YEAR 2024
ELECTRICA FINANCIAL REPORTING FOR 2024
ELECTRICA FINANCIAL REPORTING FOR 2024
ELECTRICA 2024 ANNUAL REPORT
ELECTRICA 2024 ANNUAL REPORT
Dividends
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 2024, 2023 and 2022 (from previous years’ profits)
were as follows: :
Table 46. Dividends 2024-2022 (RON mn.)
(RON mn)
2024
2023
2022
Dividends distributed
40.0
40.0
152.8
Source: Separate financial statements of ELSA as of 31 December 2024
On April 25, 2024, the General Meeting of Shareholders of the Company approved the distributable net profit
for 2023 as follows:
• Dividends to be distributed to shareholders: 40.0 million RON;
• Legal reserve (5% of profit before tax 2023): 2.2 million RON;
• Other reserves: 18.2 million RON.
The value of dividends per share distributed to the Company’s shareholders was: 0.1178 RON per share (2023:
0.1178 RON per share).
Of the dividends declared by the Company in the amount of 40.0 million RON (2023: 40.0 million RON),
the dividends paid were 39.98 million RON (2023: RON 40.1 million), the difference being dividends paid to
shareholders for previous periods.
Provisions
Table 47. 2024 Provisions (RON mn.)
(RON mn.)
Litigations and other risks
Balance at 1 January 2024
0.7
Provisions made
0.7
Provisions utilized
-
Provisions reversed
0.0
Balance at 31 December 2024
1.5
Source: Separate financial statements of ELSA as of 31 December 2024
The provisions in amount of RON 1.5 mn. as at 31 December 2024 (31 December 2023: RON 0.7 mn.) refer mainly
to the benefits granted upon the termination of executive managers’ contracts.
6.5 Separate statement of profit or loss
Financial information selected from the company’s separate statement of profit or loss.
Table 48. Separate statement of profit or loss (RON mn.)
Indicator
2024
2023
Variation
2024/2023
2022
2021
Revenues
12.5
0.2
12.3
-
-
Other income
1.1
1.2
(0.1)
5.2
0.8
Cost of purchased electricity
(2.8)
-
(2.8)
-
-
Employee benefits
(35.2)
(30.3)
(4.9)
(30.2)
(39.2)
Depreciation and amortization
(4.5)
(1.4)
(3.0)
(1.6)
(2.3)
Impairment of property, plant and equipment, net
1.9
0.9
1.0
0.0
3.8
Reversal of impairment of trade and other receivables,
net
-
0.6
(0.6)
0.1
0.1
Change in provisions for legal cases and non-
compete
clauses,
net
(0.8)
0.3
(1.1)
3.2
1.6
Other operating expenses
(28.9)
(21.2)
(7.7)
(18.5)
(20.4)
Profit/(loss) before financing result
(56.7)
(49.8)
(6.9)
(41.8)
(55.6)
Finance income
171.2
97.6
73.6
78.3
377.7
Finance costs
(43.3)
(29.7)
(13.6)
(12.4)
(0.3)
Share of results of associates
(0.0)
(0.0)
-
-
-
Net finance income
127.9
67.9
60.0
65.9
377.4
Rezultatul financiar net
127,9
67,9
60,0
65,9
377,4
Profit before tax
71.2
18.1
53.1
24.0
321.8
Income tax benefit/(expense)
(1.9)
5.9
(7.8)
0.3
0.0
Profit for the year
69.3
23.9
45.4
24.3
321.8
Earnings per share
0.20
0.07
0.13
0.07
0.95
Source: Separate financial statements of ELSA as of 31 December 2024
The materiality threshold established internally at individual level is worth RON 23.7 mn., representing 1/3 of
the gross profit.
Starting with 2024, ELSA’s individual results also include costs related to the power generation parks merged
on 31 December 2023.
196
197
DIRECTORS’ REPORT FOR THE YEAR 2024
DIRECTORS’ REPORT FOR THE YEAR 2024
ELECTRICA FINANCIAL REPORTING FOR 2024
ELECTRICA FINANCIAL REPORTING FOR 2024
ELECTRICA 2024 ANNUAL REPORT
ELECTRICA 2024 ANNUAL REPORT
Profit/(loss) before financing result
As at 31 December 2024 the operating result is a loss of RON 56.7 mn., mainly from the increase in other
operating expenses, costs of purchasing electricity, depreciation and salary benefits.
Net finance income
During the financial year ended 31 December 2024, the net financial result increased from RON 67.9 mn. in
2023 to RON 127.9 mn.
Financial income in 2024 amounts to RON 171.2 mn. and represents income from interest received on loans
granted to subsidiaries, as well as income from dividends collected from the distribution subsidiary in the
amount of RON 60 million.
The net financial result is negatively impacted by the financial expenses recorded in 2024 in the amount of
RON 43.3 mn. representing interest expenses on loans.
Profit before tax
In 2024, profit before tax increased by RON 53.1 mn. to RON 71.2 mn. from RON 18.1 mn. in 2023.
Income tax benefit/(expense)
In 2024, the company records an income tax expense of RON 1.9 million, compared to 2023 when the company
recorded a income tax benefit of RON 5.9 million, mainly due to the merger.
Net profit for the year
As a result of the above factors, the net profit achieved in 2024 is RON 69.3 mn., increasing compared to 2023
(RON 23.9 mn.).
6.6 Separate cash flow statement
Financial information selected from the cash flow statement of the company.
Table 49. Separate statement of cash flow (RON mn.)
Indicator
2024
2023
Var. 2024
vs. 2023
2022
2021
Cash flows from operating activities
Profit for the year
69.3
23.9
45.4
24.3
321.8
Adjustments for:
Depreciation
3.4
0.9
2.5
1.0
1.1
Amortization
1.1
0.5
0.6
0.6
1.2
Impairment of property, plant and equipment, net
(1.9)
(0.0)
(1.9)
(0.0)
(3.8)
Indicator
2024
2023
Var. 2024
vs. 2023
2022
2021
Revaluation of property, plant and equipment, net
-
(0.9)
0.9
-
-
Impairment for Right of Use Assets – IFRS16
(0.1)
-
(0.1)
Loss/(Gain) from the disposal of tangible assets
-
-
-
-
3.1
Reversal of impairment of trade and other receivables,
net
-
(0.6)
0.6
(0.1)
(0.1)
Impairment of assets held for sale
-
-
-
-
0.5
Net finance income
(127.9)
(67.9)
(60.0)
(65.9)
(377.4)
Income tax expense/(benefit)
1.9
(5.9)
7.8
(0.3)
(0.0)
Changes in employee benefits obligations
0.3
0.2
0.1
(5.0)
5.1
Changes in provisions, net
0.8
(0.3)
1.1
(3.2)
(1.6)
(53.1)
(49.9)
(3.3)
(48.5)
(50.2)
Changes in:
Trade receivables
(0.2)
(0.0)
(0.1)
0.2
(0.4)
Other receivables
(1.7)
(12.6)
10.9
(0.5)
3.0
Trade payables
1.1
1.6
(0.4)
0.4
(2.9)
Other payables
6.3
0.2
6.0
0.8
0.3
Employee benefits
1.0
1.3
(0.3)
0.1
(0.3)
Cash generated/(used in) from operating activities
(46.6)
(59.4)
12.9
(47.5)
(50.5)
Interest paid
(42.7)
(29.6)
(13.0)
(12.2)
(0.2)
Income tax paid
(1.8)
-
(1.8)
-
-
Net cash from/(used in) operating activities
(91.0)
(89.1)
(2.0)
(59.7)
(50.7)
Cash flows from investing activities
Payments for purchases of property, plant and
equipment
(35.8)
(1.8)
(34.0)
(1.9)
(4.8)
Payments for purchases of intangible assets
(0.5)
(1.0)
0.5
(0.2)
-
Payments for acquisition of minority interests in
subsidiaries, net of transaction costs
(0.0)
(12.4)
12.4
(4.4)
(0.1)
Payments for the acquisition of shares in subsidiaries,
net of transaction costs
(15.8)
-
(15.8)
-
-
198
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DIRECTORS’ REPORT FOR THE YEAR 2024
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ELECTRICA FINANCIAL REPORTING FOR 2024
ELECTRICA FINANCIAL REPORTING FOR 2024
ELECTRICA 2024 ANNUAL REPORT
ELECTRICA 2024 ANNUAL REPORT
Indicator
2024
2023
Var. 2024
vs. 2023
2022
2021
Proceeds from the sale of property, plant and
equipment
-
-
-
1.2
0.0
Payments for acquisition of shares in entities
-
-
-
(7.0)
-
Cash pooling net position
207.1
(75.4)
282.5
81.3
(393.6)
Loans granted to subsidiaries
(330.3)
(92.3)
(238.0)
(151.0)
(336.3)
Proceeds from loans given to subsidiaries
-
-
-
135.9
60.0
Payments for shares in associates
(0.0)
(0.0)
0.0
(0.0)
(25.8)
Restricted cash
-
-
-
-
320.0
Interest earned
110.9
96.3
14.7
72.1
42.2
Dividends received
60.0
-
60.0
-
329.5
Net cash from investing activities
(4.4)
(86.6)
82.2
126.0
(8.9)
Cash flows from financing activities
Proceeds from overdrafts
108.0
)2.3(
110.3
87.3
-
Dividends paid
(40.0)
(40.1)
0.2
(153.2)
(247.6)
Reimbursment of loans
(80.0)
-
(80.0)
-
-
Loans granted
98.7
116.8
(18.0)
100.0
-
Payment of lease liabilities
(2.4)
(0.5)
(1.9)
(0.6)
(1.0)
Net cash used in financing activities
84.3
73.8
10.5
33.6
(248.6)
Net increase in cash and cash equivalents
)11.1(
)101.9(
90.7
99.9
)308.3(
Cash and cash equivalents at 1 January
19.2
105.6
(86.5)
(114.8)
193.5
Cash and cash equivalents transferred on merger
-
15.4
(15.4)
-
-
Reclassification of overdrafts previously presented as
cash and cash equivalents
-
-
-
120.5
-
Cash and cash equivalents at 31 December
8.0
19.2
(11.1)
105.6
(114.8)
Cash and cash equivalents at 31 December
8,0
19,2
(11,1)
105,6
(114,8)
Source: Separate financial statements of ELSA as of 31 December 2024
The materiality threshold established internally at individual level is worth RON 23.7 mn., representing 1/3 of
the gross profit.
In 2024, the net decrease in cash and cash
equivalents amounted to RON 11,1 mn.
Net cash generated by operating activities was
RON (46.7) million. The net profit for the period was
RON 69.3 million; the main adjustments for non-
monetary elements of net profit were: the addition
of depreciation of tangible and intangible assets
in the amount of RON 4.5 million, the decrease in
the variation of the change in provisions of RON 1.1
million, the decrease in the impact of income tax by
RON 7.8 million, the impact of value adjustments for
receivables and depreciation of tangible assets by
RON 1.9 million. The net financial result of RON 127.9
million was deducted.
The changes in working capital had a favorable effect
of RON 6.6 million, the impact being generated by the
positive impact change in trade and other liabilities
in the amount of RON 8.5 million (of which, positive
impact of RON 6.3 million from the change in other
liabilities, RON 1 million from the change in employee
benefits and RON 1.1 million from the change in
trade payables) diminished by the negative impact
of trade receivables and other receivables, in the
amount of RON 1.9 million.
In 2024, interest paid was RON 13.0 mn. higher than in
2023, mainly representing the interest related to the
overdraft facility under the cash pooling system.
For the investment activity, cash was used in the
amount of RON 4.4 mn., the highest amounts being
related to interest received in the amount of RON 110.9
mn., loans granted to affiliated entities in the amount
of RON 330.3 mn., the impact of the net cash pooling
activity of RON 207.1 mn. and dividends received of
RON 60.0 mn.
In 2024 the amount of loans granted to subsidiaries
was RON 330.3 mn., with RON 238.0 mn. higher than in
the previous period.
The amount of interest received was RON 110.9 mn.,
as a result of new loans granted to subsidiaries in
2024.
The financing activity generated an increase in cash
and cash equivalents of RON 84.3 mn., mainly from
overdraft in the amount of RON 108.0 mn. and from
the loans received in the amount of 98.7 million RON
representing credit facilities for working capital,
reduced impact of the repayment of loans of 80.0
million RON and dividends paid to shareholders
in the amount of 40.0 million RON (the value of the
gross dividend per share was maintained at the level
of 2023 at 0.1178 RON/share)
In 2023, the net increase in cash and cash equivalents
amounted to RON 86,5 mn.
Net cash generated by operating activities was
(59.4) million RON. Net profit for the period was 23.9
million RON; the main adjustments for non-monetary
items of net profit were: the addition of depreciation
of tangible and intangible assets in the amount of 1.4
million RON, the decrease in the impact generated
by employee benefits in the amount of 5.2 million
RON, the decrease in the variation of the change
in provisions in the amount of 2.9 million RON, the
increase in the impact of income tax by 5.6 million
RON, the impact of value adjustments for trade
receivables was insignificant. It was deducted from
the net financial result of 67.9 million RON.
Changes in working capital had an unfavorable
effect of 9.5 million RON, the impact being generated
by the positive impact change in trade and other
payables in the amount of 3.1 million RON (of which,
positive impact of RON 1.3 million from the change
in employee benefits) diminished by the negative
impact of trade receivables and other receivables, in
the amount of RON 12.6 million.
In 2023, interest paid was RON 17.4 million higher than
in 2022, mainly representing interest related to the
overdraft facility within the cash pooling system.
Cash was used for investment activity in the amount
of RON 86.6 million, the highest values being related
to interest received in the amount of RON 96.3 million,
loans granted to affiliated entities in the amount of
RON 92.3 million, and the impact of net cash pooling
activity of RON 75.4 million.
In 2023, the value of loans granted to subsidiaries
was RON 92.3 million, RON 58.7 million less than in the
previous period.
The value of interest received was RON 96.3 million,
as a result of new loans granted to subsidiaries in
2023, the higher value of the uses by subsidiaries of
200
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ELECTRICA 2024 ANNUAL REPORT
the Cash Pooling structure, as well as the increase in
the ROBOR rate.
The financing activity generated an increase in cash
and cash equivalents of RON 73.8 million, mainly
from loans received in the amount of RON 116.8
million representing the credit facility for working
capital and issuance of bank letters with Vista Bank
contract this year, reduced impact by dividends paid
to shareholders in the amount of RON 40.1 million
(the value of the gross dividend per share decreased
from RON 0.1178/share for dividends related to the
year 2022 to RON 0.45/share for dividends related to
the year 2021).
6.7 Risk management
At Electrica, 2024 was dedicated to strengthening
AML-KYC competence, aiming mainly at building
tools to automate the evaluations and monitoring
required by the legislation in force.
Regarding risk management, new pillars were laid in
the credit and market risk areas for methodological
consolidation at group level. The risks and measures
for dealing with risks related to the activity of own
production of electricity from renewable resources
were also identified.
In 2024, the risk management departments within
the companies EFSA (Electrica Furnizare SA) and DEER
(Distributie Energie Electrica Romania) intensified
their efforts to improve the processes of identifying,
evaluating and dealing with risks in a market context
characterized by increased volatility and radical
transformations.
Risk Management Activity at DEER:
The Risk Management Office at DEER carried out a
series of essential activities, including coordinating
actions to establish the risk profile and risk appetite,
monitoring and controlling risks at the company level,
and completing the Risk Register by aggregating
data from all executive departments and regional
structures.
Among the achievements of the previous year are:
• Organizing workshops for risk management
• Developing and supporting the document „DEER
Risk Profile and Risk Tolerance”
• Implementing the Working Instruction for Risk
Opinions
• Participating in testing exercises of the DEER
Security
Plan
• Introducing the list of performance indicators
of the process of implementing risk treatment
measures
DEER organized 8 workshops on residual risk
assessment during November 2024, analyzing the
implementation status of previously established
treatment
measures.
A major challenge was the cyber attack in 2024. The
final impact assessment in DEER was not completed
by the date of this report.
The situation at EFSA: major challenges and
financial
deterioration:
At
EFSA,
the
Risk
Management
Department
continued to refine the range of activities developed,
implementing
risk
assessment
and
treatment
methodologies. As a facilitator of the Risk Oversight
Committee (RWC) meetings, DEPMR organized 3
quarterly meetings in 2024.
Due to the increase in the average cost of electricity
purchase compared to budgeted values, financial
performance was affected, and the operational loss
was considerable, an aspect also reflected in the
interim financial statements.
Two major events significantly affected EFSA’s activity
during 2024:
1. The implementation of SAP ISU - which generated
a negative impact on all operational areas and
difficulties in the billing and analysis processes;
2. The
LYNX
ransomware
cyber
attack
in
December 2024 on the network and IT systems,
affecting services for 3.5 million consumers,
demonstrating the critical dependence on the
DEER
infrastructure.
The main risks identified at EFSA were:
• Financial liquidity risk;
• Ineffectiveness of the relationship process with
Distribution Operators;
• Insufficient quality of the consumption forecast;
• Credit risk;
• The appearance of excess exposures in the
portfolio;
• Risks related to forecasting and budgeting.
The DEPMR methodologies were completed in 2024
with the methodology for determining the spot price
convergence factor with the forward price. Monthly
financial analyses and prospective modeling of
solvency and liquidity indicators were performed, the
results being presented at the CpSR meetings.
For the future, both companies have set themselves
the goal of strengthening the materialized risk
monitoring
systems,
improving
data
analysis
processes, and developing a more robust system
for evaluating the effectiveness of risk treatment
measures.
RISK FACTORS
The
Group’s
activity,
performance,
reputation,
financial situation and market value of its shares can
be affected by a number of factors of both internal
and external nature. These factors can lead to the
materialization of risks that negatively influence the
Group’s activity and performance. Such factors may
particularly influence the risks described below that
the Group has identified and for which it seeks to
manage them.
Risk factors should be viewed from both inside
and outside, the latter being harder to control but
both having implications for the manifestation and
materialization of risks.
Risk factors can be from the following categories:
• Macroeconomic and energy industry-specific
risks: Global and regional economic conditions,
respectively the economic context at national and
regional international level that may negatively
influence the Group’s activity. These factors can
be: inflation, recession, changes in fiscal and
monetary policy, tighter lending, higher interest
rates, new or rising tariffs, currency fluctuations,
raw material price (electricity, natural gas), etc.
• 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.
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ELECTRICA 2024 ANNUAL REPORT
• Technical risks caused by inadequate network
sizing in relation to energy demand eaning the
impossibility of ensuring network maintenance
and energy supply to customers, which can
negatively and significantly affect the Group’s
business.
• Strategic risks and ensuring the financing of
projects within the group can be influenced both
by internal factors, by keeping a high rating that
maintains an attractive share price and implicitly
the attention of investors, but also external
factors, respectively the difficulty of accessing
markets in order to raise capital (availability of
capital for financing).
• 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.
Strategic risk management
Strategic risk has implications for the entire group due
to changes at the organizational and governance
level that took place in 2024 within some entities of
the Group, but also regarding the market context and
adaptation to its requirements. The Group’s entities
aim to adopt strategies that ensure adequate
market positioning and flexibility that ensure timely
recalibration in order to achieve the proposed
objectives.
Technical risk management
The technical risk is manifested at the level of
certain entities of the Group and refers to ensuring
the appropriate grid size in relation to the energy
demand,
ensuring
its
proper
functioning
and
implicitly ensuring continuity in the electricity supply.
At the group level there is a permanent concern
regarding the exposure to this technical risk and the
implementation of measures to mitigate it, the direct
implications being customer satisfaction and also
the reputation at the group level.
Risks and uncertainties resent as of 31 December
2024 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 50. Risks and uncertainties as of 31 December 2024
Risk description
Impact mitigation measures
The crisis in Ukraine
• The Russian-Ukrainian war that began in 2022
continues, maintaining the regional resource
crisis due to Russia's imposition of a series of
restrictions at the international level, Russia
being an important player on the natural gas
market in Europe. At the same time, Russian
attacks have approached the Romanian border,
generating the idea of the possibility of attacks
on Romanian territory as well, an action with a
strong political impact due to its membership
in NATO. The possibility of the war expanding to
territories adjacent to Russia and Ukraine would
greatly accentuate the crisis already installed at
the regional level.
• Electrica Group does not own subsidiaries and
affiliated entities in Ukraine, nor does it have
other relevant exposures in the countries directly
involved in this conflict. From an operational
point of view, energy and natural gas purchases
are made predominantly on the domestic
market, the availability, origin and delivery of
resources may be influenced by the dynamics of
the conflict in the region.
• The impact was mitigated in the supply activity
through the compensation and capping
measures established at national level.
• In the distribution activity, the direct impact
felt was visible through the price at which
the electricity related to own technological
consumption (NL) could be purchased.
These negative influences may continue in the
following period due to market volatility but also to
possible future regulations with a direct impact on
the Group’s activity.
Physical and Operational Risks
• Critical
Infrastructure
Outage
Risk Context: Electrica S.A.’s electricity distribution
infrastructure is vulnerable to multiple threats.
Critical systems, including distribution networks,
transformer stations, and control systems, face
significant operational risks. These threats are
amplified by the increasing interdependencies
between different components of the energy
system.
• Natural Disasters and Meteorological Events
Risk Context: Climate change and extreme
weather events represent increasing threats to
physical infrastructure. Severe storms, floods,
and other extreme events can cause significant
damage and prolonged service disruptions.
• Implementing an advanced real-time monitoring
system for critical infrastructure
• Developing
a
comprehensive
predictive
maintenance
program;
• Creating redundant systems for critical functions;
• Modernizing aging infrastructure with resilient
technologies.
• Strengthening infrastructure for resistance to
extreme weather conditions
• Implementing an advanced forecasting and
early warning system
• Developing
specific
contingency
plans
for
different
disaster
scenarios
(Entsoe);
• Investing in protection solutions against floods
and other extreme phenomena.
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ELECTRICA 2024 ANNUAL REPORT
ELECTRICA 2024 ANNUAL REPORT
Risk description
Impact mitigation measures
Cybersecurity and technological risks
• Cyber Threats
Risk Context: Increasing digitalization exposes
Electrica SA systems to sophisticated cyber
threats. Attacks can target both IT systems and
operational infrastructure (OT), with potentially
severe consequences for distribution operations
• IT-OT Convergence
Risk Context: The increasing integration
between IT and OT systems creates new
vulnerabilities and complexities in security
management. This convergence requires a
holistic approach to security.
• Create a dedicated Security Operations Center
(SOC)
• Develop cybersecurity awareness and training
programs
• Regularly test the resilience of systems through
attack simulations.
• Implement a unified security architecture for IT
and OT systems;
• Develop
specific
protocols
for
IIoT
device
m a n a g e m e n t ;
• Create segregated security zones for critical
systems;
• Continuously monitor IT-OT intersection points.
Operational risk other than physical and Cyber risks
• Skilled Personnel Shortage: Risk Context The
lack of specialized personnel and the aging of the
existing workforce represent major challenges to
ongoing operations and future development.
• Adaptation to New Technologies (Artificial
Intelligence)
Risk
Context:
Accelerated
digitalization and the implementation of new
technologies require continuous updating of
staff skills.
• Development of training and mentoring programs
• Partnerships with educational institutions
• mplementation of knowledge transfer programs;
• Development of competitive benefit packages.
• Creating upskilling and reskilling programs
• Implementing digital learning platforms
• Developing a culture of innovation and continuous
adaptation
• Recruiting specialists in emerging technologies.
Market risk
• Market risk arises from changes in energy and
natural gas prices, the reference interest rate,
such as share prices, interest rates or exchange
rates. All of these may impact the revenues at the
Electrica Group level or the value of its holdings.
• At the level of distribution activity (DEER), the
measures taken to mitigate risks aim at improving
the forecast of own technological consumption
(CPT) and concluding bilateral contracts.
Risk description
Impact mitigation measures
• At the Group level, market risk may arise in
the distribution activity (DEER) through price
increases in the market, respectively volatility
in the price of purchased energy (with financial
impact), termination of contracts by suppliers and
blockages in supply chains. At the level of supply
activity (EFSA), it manifests itself through the risk
of lack of energy sales offers on forward markets
(volume risk), resulting in an increase in prices
on these markets as well as the appearance in
the portfolio of excess exposures (excessive long
positions / deficit short positions) at hourly, daily
and weekly levels, band, peak and trough, under
conditions of a fluctuating bullish / bearish trend.
• At the level of the supply activity (EFSA), market risk
management policies, procedures and tools are
implemented to manage and control exposures
on the electricity and natural gas market. These
measures refer to: increasing the effectiveness
of the consumption forecast by hourly profiling
of the sales forecast with both the consumption
forecast and the detailed consumption as
accurately as possible, calculation formulas
and algorithms, which establish the effective
way of adjusting each input data to determine
the consumption forecast, applying the hedging
strategy, identifying the market trend in Pricing,
monitoring information sources regarding the
evolution of prices in the region for the products
of interest.
Credit and counterparty risk
• Credit risk represents the risk of financial losses
in the event that a counterparty/client fails to
meet its contractual obligations to pay invoices
when due.
• Counterparty risk also represents the knowledge
of potential business partners (clients and
suppliers) of their reputation, creditworthiness
and the nature of their business, before entering
into a contractual relationship. It is based on strict
compliance with legal provisions regarding the
prevention of money laundering and combating
the financing of terrorism.
• In the supply activity, counterparty risk arises as a
result of a situation in which a counterparty does
not fulfill its obligations in accordance with the
agreed terms. This risk leads to the materialization
of other new risks, namely: replacement of
undelivered quantities (replacement risk) or
financial effect (price risk).
• In the distribution activity (DEER), counterparty
risk manifests itself through the possible non-
fulfillment by the contracting party of the
contractual terms of payment or delivery of
services and / or delivery of goods, works (inclu
• Management monitors and examines current
exposure, credit limits and counterparty ratings,
as well as provisions established.
• The measures taken by the subsidiaries to
mitigate this risk are adapted to the risks
identified
regarding
the
counterparties.
• Thus, for supply, this risk is sought to be mitigated
by diversifying energy sources, reducing the level
of quantities contracted on each contract, limiting
exposure by concluding multiple contracts,
reducing
trading
limits
with
counterparties
with whom EFSA has concluded EFET contracts
and which register a low rating from a risk
management perspective, questioning partners
regarding the credit limits granted.
• For distribution, the measures that DEER is
pursuing refer to the inclusion in contracts
(energy,
construction)
of
clauses
covering
specific activities, insurance / reinsurance by type
of contract, prevention of concluding contracts
with suppliers who do not have creditworthiness,
efficient and transparent internal communication
regarding incidents that have occurred and their
reporting.
• The current market context implies significant
pressure on the ability of counterparties in the
energy sector to ensure timely delivery or to pay
related compensation.
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ELECTRICA 2024 ANNUAL REPORT
Risk description
Impact mitigation measures
Liquidity risk
• Liquidity risk represents the risk that Electrica SA
will not be able to meet its financial obligations
as they fall due.
• The ability to continue as a going concern is
dependent on the ability of its subsidiaries to
continue as a going concern. In particular, on the
subsidies side, the supply subsidiary has material
uncollected amounts from the compensation
and capping scheme in force, for which there
is no certainty regarding the time of collection,
which may also affect the activity of DEER (the
Group’s distribution subsidiary) but also the
activity of ELSA.
• Electrica SA carefully monitors, through its
treasury structures, the impact and effects on
the companies’ activity and financial results
and ensures 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, making
it impossible for us to take concrete actions and
measures.
• For
the
supply
activity
(EFSA),
cash-flow
analyses, projections and forecasts are carried
out (implementation of SAP Cash Management
and Liquidity Planner modules).
• At the distribution level (DEER), frequent and
careful monitoring of debts is carried out,
payment of obligations in compliance with the
due dates, limitation of payments before maturity
and analyses regarding the attraction of external
financing resources and priority collection of due
receivables.
• The ability of the subsidiaries to continue
their activity is dependent on the successful
completion of new loan contracts and the
collection of subsidies for the supply subsidiary.
Risk description
Impact mitigation measures
Compliance risk (legal and regulatory)
• The energy and natural gas markets are
regulated by local and European legislation.
• These regulations may be modified or interpreted
differently by local authorities and may affect
the operating profit margins of Electrica SA’s
holdings.
• This risk is also supported by the legislative
history of recent years, which contains a series
of laws that have significantly impacted energy
and natural gas prices, capping elements, etc.
• At Group level, the compliance risk which
includes
the
two
components
(legal
and
regulatory) has been identified as the risk of
the emergence of unpredictable primary and/
or
secondary
regulations
with
immediate
application. From this also derives the risk that
changes in the regulatory environment affect the
strategy, operations and financial results of the
subsidiaries and implicitly of ELSA, defining new
directions and new compliance requirements
that the companies in the Group will have to
comply with.
• Electrica SA is making efforts to optimize
operational efficiency in accordance with current
and future regulations.
• The impact of these regulations is close to the
maximum range used in the assessment with
immediate consequences on profitability at
group level.
• At Group level, each subsidiary is thus pursuing
a series of measures to mitigate the negative
effects of these risks generated by legislative
changes. Thus, the impact of the expected
regulatory changes is assessed, aiming, if
necessary, to quickly adjust the strategy and
identify the optimal actions to eliminate/reduce
the negative impact.
Source: Electrica
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DIRECTORS’ REPORT FOR THE YEAR 2024
ELECTRICA FINANCIAL REPORTING FOR 2024
ELECTRICA FINANCIAL REPORTING FOR 2024
ELECTRICA 2024 ANNUAL REPORT
ELECTRICA 2024 ANNUAL REPORT
FINANCIAL RISK MANAGEMENT
The Group is exposed to the following risks resulting from the use of financial instruments: credit risk, liquidity
risk and market risk.
These risks are further explained and detailed.
Credit risk
Credit risk is the risk that the Group will register a financial loss 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 mainly influenced by the individual characteristics of each customer. In
the past, the Group had a high credit risk mainly from State-owned companies.
Cash and bank deposits are placed in financial institutions that are considered to have to have low risk of
default.
The carrying amount of financial assets represents the maximum credit exposure.
Trade receivables
The Group’s credit risk in respect of receivables was concentrated in the past around state-controlled
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 set up a policy regarding risk
management and it has taken into account the insurance of the 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 rates.
Impairment
The following table provides information on the exposure to credit risk and expected credit losses for trade
receivables as of 31 December 2024, 2023, 2022 and 2021.
Table 51. Credit risk and expected credit losses for trade receivables as of 31 December 2024
(RON mn.)
31 December 2024
Expected
credit
loss rates
(“ECL”)
Gross
value
Lifetime ECL
Net trade
receivables
Credit
impaired
Neither past due nor impaired
3,18%
3,426.0
(108.8)
3,317.2
No
Past due 1-30 days
9,65%
136.5
(13.2)
123.3
No
Past due 31-60 days
19,16%
89.1
(17.1)
72.0
No
Past due 61-90 days
41,56%
24.2
(10.1)
14.2
No
Past due more than 90 days
79,78%
737.2
(588.1)
149.0
Yes
Total
4,412.9
(737.2)
3,675.7
Source: Consolidated financial statements of Electrica Group as of 31 December 2024
Table 52. Credit risk and expected credit losses for trade receivables as of 31 December 2023
(RON mn.)
31 December 2023
Expected
credit
loss rates
(“ECL”)
Gross
value
Lifetime ECL
Net trade
receivables
Credit
impaired
Neither past due nor impaired
2%
2,229.3
(35.3)
2,194.0
Nu
Past due 1-30 days
7%
255.1
(16.9)
238.2
Nu
Past due 31-60 days
14%
47,6
(6,7)
41,0
Nu
Past due 61-90 days
37%
25,9
(9,6)
16,3
Nu
Past due more than 90 days
92%
622,7
(571,7)
51,0
Da
Total
3,180.7
(640.2)
2,540.4
Source: Consolidated financial statements of Electrica Group as of 31 December 2023
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ELECTRICA 2024 ANNUAL REPORT
ELECTRICA 2024 ANNUAL REPORT
Table 53. 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
receivables
Credit
impaired
Neither past due nor impaired
3%
1,951.7
(60.3)
1,891.3
No
Past due 1-30 days
4%
491.0
(19.3)
471.6
No
Past due 31-60 days
16%
66.4
(10.5)
55.9
No
Past due 61-90 days
35%
27.3
(9.7)
17.6
No
Past due more than 90 days
95%
582.4
(552.9)
29.5
Yes
Total
3,118.6
(652.7)
2,466.0
Source: Consolidated financial statements of Electrica Group as of 31 December 2022
Table 54. Credit risk and expected credit losses for trade receivables as of 31 December 2021
(RON mn.)
31 December 2021
Expected
credit
loss rates
(“ECL”)
Gross
value
Lifetime ECL
Net trade
receivables
Credit
impaired
Neither past due nor impaired
2%
1,080.1
(16.6)
1,063.5
No
Past due 1-30 days
5%
228.5
(10.6)
217.9
No
Past due 31-60 days
15%
36.7
(5.3)
31.4
No
Past due 61-90 days
38%
15.4
(5.9)
9.5
No
Past due more than 90 days
98%
964.7
(942.4)
22.3
Yes
Total
2,325.4
(980.8)
1,344.6
Source: Consolidated financial statements of Electrica Group as of 31 December 2021
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
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.
Table 55. Contractual maturities of financial liabilities (RON mn.)
).RON mn(
Carrying
amount
Contractual cash flows
Financial liabilities
Total
less than
1 year
1-2
years
2-5
years
More
than 5
years
31 December 2024
Bank overdrafts
2,490.6
2,490.6
2,490.6
-
-
-
Lease liability
41.8
41.8
7.4
3.5
3.4
27.4
Long term bank borrowings
2,390.3
2,390.3
565.8
333.0
618.7
872.9
Trade payables
1,146.4
1,146.4
1,146.4
-
-
-
Other payables
12.2
12.2
-
-
12.2
-
Total
6,081.4
6,081.4
4,210.3
336.5
634.3
900.3
31 December 2023
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
-
-
-
Total
5,883.5
5,883.5
5,060.0
268.8
479.9
74.8
Source: Consolidated financial statements of Electrica Group as of 31 December 2024
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ELECTRICA FINANCIAL REPORTING FOR 2024
ELECTRICA FINANCIAL REPORTING FOR 2024
ELECTRICA 2024 ANNUAL REPORT
ELECTRICA 2024 ANNUAL REPORT
Market risk
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 possible. The Group
does not use derivative or hedging instruments.
Exposure to currency risk
The summary of quantitative information on the Group’s exposure to currency risk is given below.
Table 56. Exposure to currency risk 2024-2022
(RON mn.)
31 December 2024
31 December 2023
Cash and cash equivalents
1,8
0,3
Overdrafts
(399,8)
(306,4)
Lease liability
(40,2)
(42,2)
Long term bank loans
(1.058,4)
-
Net statement of financial position exposure
(1.496,6)
(348,3)
Source: Consolidated financial statements of Electrica Group as of 31 December 2024
The following significant exchange rates have been applied during the year.
Table 57. Average rate and year-end spot rate
Average rate
Year-end spot rate
2024
2023
2024
2023
EUR/RON
4,9752
4,9465
4,9741
4,9746
Source: Consolidated financial statements of Electrica Group as of 31 December 2024
Sensitivity analysis
A reasonably possible strengthening (weakening) of the EUR against RON at 31 December would have affec
ted 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 con
stant and ignores any impact of forecast sales and purchases.
Table 58. Sensitivity analysis
(RON mn.)
Profit before tax
Effect
Strengthening
Weakening
31 December 2024
EUR (5% movement)
(74,8)
74,8
31 December 2023
EUR (5% movement)
(17,4)
17,4
Source: Consolidated financial statements of Electrica Group as of 31 December 2024
Exposure to interest rate risk
The interest rate profile of the Group’s interest-bearing financial instruments is presented below.
Table 59. Fixed-rate and variable-rate instruments
(RON mn.)
31 December
2024
31 December
2023
31 December
2022
31 December
2021
Fixed-rate instruments
Financial assets
Call deposits
123.9
154.0
193.2
53.9
Financial liabilities
-
Long-term bank borrowings
(1,267.3)
(1,068.9)
(651.8)
(418.9)
Lease liability
(32.3)
(32.3)
(37.4)
(8.3)
Total
(1,175.7)
(947.2)
(495.9)
(373.3)
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ELECTRICA 2024 ANNUAL REPORT
(RON mn.)
31 December
2024
31 December
2023
31 December
2022
31 December
2021
Variable-rate instruments
Financial liabilities
Lease liability
(9.5)
(10.9)
(16.3)
(13.3)
Long-term bank borrowings
(1,123.1)
(248.7)
(109.0)
(209.6)
Bank overdrafts
(2,490.6)
(2,851.2)
(2,571.0)
(627.4)
Total
(3,623.2)
(3,110.8)
(2,696.3)
(850.3)
Source: Consolidated financial statements of Electrica Group as of 31 December 2024, 2023, 2022 and 2021
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 60. Cash flow sensitivity analysis for variable-rate instruments
(RON mn.)
Profit before tax
50 bp increase
50 bp decrease
31 December 2024
Variable-rate instruments
(18.1)
18.1
31 December 2023
Variable-rate instruments
(15.6)
15.6
31 December 2022
Variable-rate instruments
(13.5)
13.5
Source: Consolidated financial statements of Electrica Group as of 31 December 2024
6.8 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,
procedures
and
policies
adopted
by
ELSA
management and their implementation by the
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,
internal and managerial control, compliance control.
The internal control activity represents a way of
analysis of ELSA activities, of adopting and applying
the internal management, also associated with the
knowledge activity, which allows the Company’s
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
accordance with the legislation in force and the
specific procedures, in compliance with the legal
framework that regulates the activities carried out
in the checked entities, according to the approved
control objectives and themes.
Through
internal
control,
the
Company’s
management ascertains the deviations resulting
from the established objectives, analyzes the causes
and orders the corrective or preventive measures
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.;
• compliance with the applicable legislation and
the internal regulations;
• the reliability of financial reporting (accuracy,
completeness and correctness of the
information);
• 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
use of resources;
• applying the BoD and executive management
resolutions and follow-up.
The achievement of these goals was performed in
2024 as follows:
• in order to ensure internal compliance with the
competition and state aid rules, several training
sessions were conducted;
• for
the
implementation
by
DEER
of
the
commitments assumed within the investigation of
the Competition Council, ELSA provides, according
to the concluded contract, consultancy services
and conducts trainings aimed at increasing the
degree of information and awareness of the staff
regarding the competition policy;
• clear definition and responsibilities segregation
for each person involved in the organizational
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);
• implementation
of
regulations,
policies,
procedures,
forms
etc;
• unitary implementation at group level the Code of
Ethics and Professional Conduct and subsequent
policies;
• the existence of a Guide for Accounting Policies,
elaborated in accordance with the requirements
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ELECTRICA 2024 ANNUAL REPORT
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 elements:
• 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 controling and providing
information in an adequate and timely manner,
so that all employees may be able to fulfill 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.
7. STATEMENTS
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STATEMENTS
STATEMENTS
ELECTRICA 2024 ANNUAL REPORT
ELECTRICA 2024 ANNUAL REPORT
Based on the best available information, we confirm that the consolidated financial statements
reviewed and audited for the period ended 31 December 2024 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 2024, 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 2024 prepared in accordance with OMFP
no. 2844/2016 for the approval of accounting regulations compliant with the International Financial
Reporting Standards (IFRS) adopted by the European Union, 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 2024, comprises
accurate and real information regarding the Group’s development and performance.
Statements
Chair of the Board of Directors,
Chief Executive Officer,
Chief Financial Officer,
Mihai DIACONU
Alexandru-Aurelian CHIRITA
Stefan Alexandru FRANGULEA
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APPENDICES
APPENDICES
ELECTRICA 2024 ANNUAL REPORT
ELECTRICA 2024 ANNUAL REPORT
Appendix 1 – Litigations
A.1 Electrica Group litigations until 2024:
A.1 .1 Disputes with ANRE
Crt.
no.
Parties/Case file
number
Subject matter
Court
Case status
1
"Plaintiff: ELSA;
Defendant: ANRE;
361/2/2015
(639/1/2024)"
Cancellation of ANRE Order no. 155/2014
regarding the approval of the specific
tariffs for the electricity distribution
service and the price for the reactive
energy for DEER (former SDTN).
High
Court of
Cassation
and
Justice
The Court definitively
dismissed the case.
2
"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.
3
"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
The case has been
suspended until the
final settlement of case
no. 541/36/2018 of the
Bucharest Court of
Appeal. An Application for
reinstatement and a precise
request was filed. In course
of settlement.
4
"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
In course of settlement.
5
"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).
Bucharest
Court of
Appeal
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
6
"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.
7
"Plaintiff: DEER
Defendant: ANRE
309/2/2020"
Judicial action on the cancellation
of documents issued by regulatory
authorities – Order no. 227/2019 regarding
the approval of the tariffs for the
electricity distribution service and the
price for the reactive energy for DEER
(former SDMN).
Bucharest
Court of
Appeal
On 04.10.2023, the Court
dismissed the case.
Appealable within 15 days
from it’s communication.
Report approval waiver of
appeal. Definitive.
8
"Plaintiff: DEER
Defendant: ANRE
371/2/2015*"
Cancellation of the ANRE’s President
Order no. 156/2014 regarding the approval
of the specific tariffs for the electricity
distribution service and the price for the
reactive energy for DEER (former SDTS).
Bucharest
Court of
Appeal
The Court dismissed the
case on merits. Appealable
within 15 days from it’s
communication. There has
not been filed a recourse.
Definitive.
9
"Plaintiff: DEER
Defendant: ANRE
303/2/2020"
Cancellation of the ANRE’s President Order
no. 229/2019 regarding the approval
of the specific tariffs for the electricity
distribution service and the price for the
reactive energy for DEER (former SDTS).
Bucharest
Court of
Appeal
Suspended on
02.11.2022. Application
for reinstatement. On
07.06.2023 - suspend
the file. Application for
reinstatement was filed. In
course of settlement.
10
"Plaintiff: DEER
Defendant: ANRE
53/2/2022"
Cancellation of the ANRE’s President
Order no. 119/2021 regarding the approval
of the specific tariffs for the electricity
distribution service and the price for the
reactive energy for DEER.
Bucharest
Court of
Appeal
Suspended until the final
settlement of case no.
6176/2/2022.
11
"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,
definitively dismissed.
Source: Electrica
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APPENDICES
APPENDICES
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ELECTRICA 2024 ANNUAL REPORT
A.1 .2 Fiscal matter disputes
Crt.
no.
Parties/Case file
number
Obiect
Instanta
Stadiu dosar
1
"Plaintiff: ELSA
Defendant: NAFA
17237/299/2017"
"1. Suspension of forced execution initiated
by NAFA-DGAMC in the enforcement
file no. 13267221 under the enforceable
order no. 13725/3 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."
Bucharest
Tribunal
Action admitted on
merits. The Decision was
appealed, definitively
resolved by rejecting the
appeal.
2
"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.13267221/61/90/1/2
018/278530, amounting to RON 10,024,825
(representing the partial fine from the
Competition Council).
District 1
Court
On 10.04.2024, the court
rejected the appeal to
execution. The solution
is final by not being
appealed.
3
"Plaintiff: ELSA
Defendant: NAFA -
DGAMC
2444/2/2021"
1. Obligation of NAFA to correct the
evidence of tax receivables [..] Orders
the defendant to pay to the plaintiff the
amount of RON 49,083.37 in respect of
costs. A recourse was filed by DGAMC and
an incident recourse was filed by ELSA,
both definitively dismissed.
High Court
of Cassation
and Justice
On 07.06.2023, the Court
admits in part the case.
[..]
4
"Plaintiff: DEER
Defendant: NAFA -
DGAMC
359/2/2021 (former
1018/2/2016*)"
Cancellation of administrative act –
Decision no. 462/23 November 2015 [..] On
11.04.2024, the court admits the request as
it was sent for retrial. With appeal within
15 days from communication.
Bucharest
Court of
Appeal -
retrial
Final. Retrial admitted.
Crt.
no.
Parties/Case file
number
Obiect
Instanta
Stadiu dosar
5
"Plaintiff: DEER
Defendant: DGAMC –
NAFA
641/42/2020"
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)
High Court
of Cassation
and Justice
The court admits the
request as it was sent
for retrial. Recourse
admitted. The High Court
of Cassation and Justice
quashes the judgment
of the sentence and
sends the case back to
the same court and in
re-trial, dismissed DEER’s
request. Definitive.
6
"Plaintiff: DEER
Defendant: Galati City
Hall - DITVL Galati
263/42/2020*"
Cancellation of administrative documents
issued by the fiscal bodies [..] In retrial,
the court admits the request. The
recourse filed by the defendant is in
course of settlement.
High Court
of Cassation
and Justice
Recourse admitted. In
retrial, request admitted.
Recourse of defendant
pending.
7
"Plaintiff: EL SERV
Defendant: NAFA
31945/3/2018"
Cancellation of administrative decision
no. 221/19 July 2017 - cancellation of
penalties [..] The claim was dismissed.
Definitive.
Bucharest
Court
Suspended until final
settlement of case
5786/2/2018. File
reinstated. Dismissed.
Definitive.
8
"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"
High Court
of Cassation
and Justice
Partial admission. NAFA
filed a recourse, in course
of settlement.
9
"Plaintiff: ELSA
Defendant: NAFA
7133/2/2024"
The application to the defendant of a fine
of 20% of the gross minimum wage per
day of delay, [..] until the execution of the
obligation provided for in the enforceable
title represented by Civil Judgment no.
1444/15.04.2019 [..]
Bucharest
Court of
Appeal
In course of settlement.
Source: Electrica
226
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ELECTRICA 2024 ANNUAL REPORT
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
"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.
2
"Creditor: ELSA, AAAS,
BCR SA and others
Debtor: Oltchim S.A.
887/90/2013"
Bankruptcy, remaining
amount to be recovered –
RON 116,058.538.
Valcea Court
"Ongoing procedure.
The amount is registered in the
definitive table of receivables
updated following the fact that
the Decision EU Tribunal from
Luxemburg, establishing that
Oltchim S.A. benefited from
illegal state aid from a numberof
Romanian companies, including
ELECTRICA S.A, became definitive."
3
"Creditor: ELSA
Debtor: Transenergo
Com S.A.
1372/3/2017"
Insolvency proceedings.
Amount RON 37,088,830.
Bucharest
Court
Ongoing reorganization procedure.
On 03.02.2021, the Debtor's
reorganization plan was confirmed,
according to which unsecured
receivables do not participate in
distributions. ELSA’s appeal against
the sentence confirming the
reorganization plan was definitively
dismissed.
4
"Creditor: ELSA
Debtor: Electra
Management &
Supply SRL
41095/3/2016"
Bankruptcy. Amount: RON
6,027,537.
Bucharest
Court
Ongoing procedure. In case, a
request for liability has been filed,
representing the object of the
associated file no. 41095/3/2016
/ a1* - retrial – appeal – in
preliminary proceedings.
Crt.
no.
Parties/Case file
number
Object
Court
Case status
5
"Creditor: ELSA
Debtor: Fidelis Energy
SRL
3052/99/2017
3052/99/2017/a10"
Bankruptcy. Amount: RON
11,291,747.90.
Iasi Court
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
compensated in the final table
consolidated with this amount.
ELSA formulated objections to the
evaluation report of the movable
assets and the evaluation report of
the immovable assets belonging
to the debtor, which are the
subject of file no. 3052/99/2017/
a10, in which, on the merits, the
court admits the request, cancels
all the disputed valuation reports
and orders their restoration by the
authorized valuer appointed by
the Creditors' Committee following
the resumption of the selection
procedure, taking into account
the objection aiming at the full
assessment of the inventoried
goods from the debtor's patrimony.
Definitive.
6
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
In course of solution.
7
"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
4,043,605
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 appleal, 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, in
course of settlement.
8
"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
In course of settlement.
228
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ELECTRICA 2024 ANNUAL REPORT
Crt.
no.
Parties/Case file
number
Object
Court
Case status
9
"Plaintiff: VIR
Company
International S.R.L.
Defendant: DEER
7507/105/2017*"
"Claims - the amount
requested by VIR Company
International SRL consists of:
- EUR 5,000,000, damage
caused by delayed issuance
of the connection certificate
for the photovoltaic
plant 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."
Prahova
Court
The court rejects the exceptions of
inadmissibility and lack of object
of the introductory request invoked
by the defendant, as unfounded.
Dismisses the 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. Set
aside the sentence and send
the case for retrial to the same
court. Definitive. Rejudgment - In
pronunciation.
10
"Creditor: DEER
Debtor: Transenergo
Com S.A.
1372/3/2017"
Insolvency proceedings.
Amount: RON 9,234,103.43.
Bucharest
Court
Ongoing proceedings. On 3
February 2021, the Debtor's
reorganization plan was confirmed,
according to which unsecured
receivables do not participate in
distributions. The Debit represents
the accumulated receivables as a
result of the distribution subsidiaries
merger.
11
"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
The case has been suspended
until the final settlement of case
no. 1677/105/2017. Reinstated – in
course of settlement.
Crt.
no.
Parties/Case file
number
Object
Court
Case status
12
"Plaintiff: Tutu Daniel
and Tudori Ionel
Dedendant: DEER
180/233/2020*"
Claims - equivalent value
of land related to the Galati
Center Transformation Station
– RON 2,500,000.
Galati
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."
13
"Plaintiff: Sinaia City
Hall
Defendant: DEER
3719/105/2020**"
• "Action in ""Obligation to do""
administrative litigation.
Sinaia City Hall requests:
-mainly: obliging MN to
comply with LCD 113/2015
in the sense of executing
the works regarding the
underground location of
the technical-municipal
networks for the project
""Energy efficiency and
lighting extension of the
historic area - Sinaia""
- in the alternative: in
case MN will not execute
the works in due time and
the City Hall will execute
the works in our name
and on our behalf, MN will
be 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.
230
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Crt.
no.
Parties/Case file
number
Object
Court
Case status
14
"Plaintiff: DEER
Defendant:
Romenergy Industry
S.A.
2088/107/2016"
• 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.
15
"Plaintiff: Energo
Proiect SRL
Defendant: DEER, DEER
– Oradea Subsidiary
374/1285/2018"
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 - admitted.
Appealable within 30 days from
communication. DEER paid the
amount of 4.254.050,58 RON.
16
"Plaintiff: DEER
Defendant: ELSA
4469/62/2018"
Claims according to the
Courts of Account findings –
RON 8,951,811
Brasov Court
First instance. The High Court of
Cassation and Justice solved the
negative competence conflict
between Brasov Court and
Bucharest Court, the case being
in course of settlement at Brasov
Court. In pronunciation.
17
"Plaintiff: DEER
Defendant: directors
and managers
342/62/2020*"
Claims against the former
general managers of the
company, as a result of the
non-fulfillment of some
measures ordered by the
Court of Accounts for the
amount of RON 8,951,812.
Brasov Court
Suspended untill the final settlement
of case no. 4469/62/2018.
18
"Plaintiff: EL SERV
Defendant: Servicii
Energetice Banat S.A.
8776/30/2013 (joint
with 2982/30/2014)"
Bankruptcy - amount
admitted to the list of
creditors RON 72,180,439.68.
Timis Court
Ongoing proceedings.
19
"Plaintiff: EL SERV
Defendant: SEO
2570/63/2014"
Bankruptcy - amount
admitted to the list of
creditors RON 26,533,446.
Dolj Court
Ongoing proceedings.
20
"Plaintiff: EL SERV
Defendant: SED
8785/118/2014"
Bankruptcy - amount
admitted to the list of
creditors: RON 15,130,315.27.
Constanta
Court
Ongoing proceedings.
21
"Plaintiff: EL SERV
Defendant: SE
Moldova
4435/110/2015"
Bankruptcy – amount:
admitted to the list of
creditors RON 73,708,082.90.
Bacau Court
Ongoing proceedings.
Crt.
no.
Parties/Case file
number
Object
Court
Case status
22
"Plaintiff: EL SERV
Defendant: New
Koppel Romania
20376/3/2016"
Claims – EUR 655,164,
equivalent of RON 3,210,305.75.
Bucharest
Court
In course of settlement.
23
"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
Suspendat.
24
"Plaintiff: EL SERV
Defendant: directors
and administrators
2010-2014
35828/3/2019"
Action in attracting the
liability of directors and
administrators - measure II.8
of Decision no.13/27.12.2016
issued by the Romanian Court
of Accounts for the amount of
RON 19,611,812 + Legal penalties
of RON 14,475,832.43.
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, definitively
dismissed.
25
"Creditor: EFSA
Debtor: Apaterm S.A.
Galati
4783/121/2011*"
Bankruptcy – registering to
the list of creditors for the
amount of RON 2,547,551.
Galati Court
Ongoing proceedings.
26
"Creditor: EFSA
Debtor: Ariesmin S.A.
Branch
7375/107/2008"
Bankruptcy - registering to the
list of creditors for the amount
of RON 20,711,588.
Alba Court
Ongoing proceedings.
27
"Creditor: EFSA
Debtor: Zlatmin S.A.
Branch
6/107/2003"
Bankruptcy - registering to the
list of creditors for the amount
of RON 9,314,176.
Alba Court
Ongoing proceedings.
28
"Creditor: EFSA
Debtor: Nitramonia
S.A.
1183/62/2004"
Bankruptcy - registering to the
list of creditors for the amount
of RON 2,321,847
Brasov Court
Ongoing proceedings.
29
"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.
30
"Creditor: EFSA
Debtor: Oltchim S.A.
887/90/2013"
Bankruptcy - receivable RON
20,708,385.65.
Valcea Court
Ongoing proceedings.
31
"Creditor: EFSA
Debtor: CUG S.A.
2145/1285/2005"
Bankruptcy - registering to the
list of creditors for the amount
of RON 7,880,857.
Cluj
Specialized
Court
Ongoing proceedings.
232
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APPENDICES
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ELECTRICA 2024 ANNUAL REPORT
Crt.
no.
Parties/Case file
number
Object
Court
Case status
32
"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.
33
"Plaintiff: UAT Targu
Secuiesc
Defendant: EFSA
886/119/2022"
Claims – RON 2,718,151.15
Covasna
Tribunal
UAT Tg Secuiesc s action was
rejected. Appealable
34
"Reclamant: EDPR
Romania SRL
Parat: EFSA
19662/3/2022"
Claims – RON 3,880,124.69
Bucharest
Tribunal
The judgment was suspended
until the final resolution of file no.
3664/2/2022.
35
"Plaintiff:EFSA
Defendant: ARC PARC
INDUSTRIAL SRL
Called into
guarantee:
VIBRACOUSTIC
ROMANIA SRL
585/1285/2022"
Claims: RON 7,294,831.26
Cluj
Specialized
Court
In course of settlement.
36
"Plaintiff: Oradea City
Defendant: EFSA
752/111/2023*"
Claims: RON 4,177,879
Bihor Court
On 08.12.2023, the action of UAT
Oradea was rejected. The appeal
filed by the Municipality of Oradea
was definitively rejected on
04.10.2024.
37
"Creditor: EFSA
Debitor: 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.
38
"Plaintiff: EFSA
Defendant: Goldterm
Mangalia
6408/118/2023"
Claims: 3,477,944.10 RON
Constanta
Court
Case definitively admitted.
39
"Plaintiff: EFSA
Defendant:A6
263/1285/2023 Impex"
Claims: 3.547.674, 21 RON
Cluj Court of
Appeal
On the merits, the court dismissed
the request for summons to
court. EFSA appealed, which was
admitted by the court. Thus, the
court admits EFSA's action and
obliges the defendant to pay
the amount of lei 3,547,674.21,
as compensation according to
Contract no. 39/10.08.2022 and
penalties of 0.1% per day of delay
on this amount calculated from
18.10.2022 until the actual payment
of the compensation. With the right
of recourse within 30 days from the
communication. According to the
information on the courts' portal,
the defendant filed a recourse.
Crt.
no.
Parties/Case file
number
Object
Court
Case status
40
"Plaintiff: Ivan Laura
Ionela
Ivan Cornel Ionut
Ivan Vladimir Mihai
Defendant: EL SERV
34705/3/2015"
Civil liability - work accident
resulting in employee death
(amount of compensation
claims – EUR 3 mn.).
Bucharest
Court
Case reinstated. In course of
settlement.
41
"Plaintiff: Cazacu
Maria
Defendant: DEER
7212/200/2020"
Liability of the principal for the
act of the defendant- work
accident resulting in death of
an AISE employee (amount of
compensation claimed: EUR
510,000)
Buzau Court
In course of settlement.
42
"Plaintiff: DEER
– Defendant: COS
Targoviste
1906/120/2013"
Insolvency – banckrupcy –
RON 1,357,789.92.
Dambovita
Court
Ongoing procedure. The current
receivables have been fully
recoverd.
43
"Plaintiff: DEER
Defendant: AEM S.A.
1347/119/2021"
Claims – contractual liability –
RON 2,851,297.30
Covasna
Court
On 07.06.2024 suspend the file of
Low 85/2014. The sum of 2851297,30
lei entered at the credal table in
case no. 824/30/2024.
44
"Plaintiff: Rebrean
Gheorghe
Defendant: DEER
1635/112/2022"
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.
Cluj Court of
Appeal.
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. Both parties
filed an appeal – in pronunciation.
45
"Plaintiff: DEER
Defendant: Electric
Planners SRL
25660/3/2022"
Claims – contractual liability –
RON – 2,810,528.12.
Bucharest
Tribunal
In course of settlement.
46
"Plaintiff: Allsys Energy
SA Defendant: DEER
14183/3/2023"
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
On 12.04.2024 the court admitted
the request and took note of
the settlement agreement of
08.04.2024. Definitive.
234
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ELECTRICA 2024 ANNUAL REPORT
Crt.
no.
Parties/Case file
number
Object
Court
Case status
47
"Plaintiff: ELSA
Defendant: Servicii
Energetice Banat
3661/30/2020"
"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 Societatii
Energetice ELECTRICA S.A.
Litigation value: RON
6,452,900."
Timis Tribunal
On 05.12.2024, the court resolved
the negative conflict of jurisdiction
and established that Timis Tribunal
- Civil Section I is competent to hear
the case.
48
"Creditor: Societatea
Electrica Furnizare SA
Debtor: Romaero
39261/3/2023"
Bankruptcy (The debtor’ s
request – art 66 part.10 Law
85/2014) - registering to the
list of creditors for the amount
of RON 5,263,679.39 .
Bucharest
Tribunal
Ongoing proceedings.
Crt.
no.
Parties/Case file
number
Object
Court
Case status
49
"Plaintiff: ELSA
Defendant: DEER
107/1285/2024"
• "Claims:
• obliging DEER to pay the
amount of 235,567,249 lei,
the amount that will be
updated with the inflation
rate, based on unjust
enrichment, as follows:
- the amount of 232,451,693
lei (composed of
205,829,399 lei - payments
made until 30.06.2014,
22,950,254 lei - unjustified
increase in operating
expenses/depreciation
expenses and 3,672,040 lei -
reduction of profit tax) ;
- the amount of 2,711,682 lei
(2,337,657 lei - payments
made and 374,025 lei -
profit tax);
- the amount of 86,614
lei (74,667 lei - payments
made and 11,947 lei - profit
tax);
- the amount of 317,260 lei
(273,500 lei - payments
made and 43,760 lei - profit
tax);
• obliging the defendant
DEER to pay the legal
interest calculated starting
from the date of the
defendant's enrichment,
until the date of payment of
the amount that is the main
object of the action."
Cluj
Specialized
Court
Considering the fact that, in file
no. 2229/2/2017*, the trial court
admitted ELSA's appeal regarding
the violations found by the
CCR by decision 12/2016 (which
generated the present litigation)
and abolished them, a solution
definitively maintained by the ICCJ,
ELSA did not he also proceeded to
the stamping ordered by the court,
which canceled the claims for which
it ordered the stamping. Definitive
by not appeled.
50
"Creditor: DEER SA
Debtor: AEM SA
824/30/2024"
Insolvency proceedings.
Amount: RON 3,360,966.01.
Timis Court
In course of settlement.
51
"Plaintiff: DEER SA
Defendant:
MINISTERUL
INVESTITIILOR
SI PROIECTELOR
EUROPENE
640/33/2024"
Annulment of Decision no.
59451/22.04.2024. Debt RON
2,996,506.92 RON
Cluj Court
In course of settlement.
52
"Plaintiff: EFSA
Defendant: UAT
Primaria Tg Secuiesc
1018/119/2024"
Claims – value: RON 4,531,147.
Covasna
Court
Suspended on 05.09.2024, until
the final settlement of case not.
886/119/2022 of Covasna Tribunal.
236
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ELECTRICA 2024 ANNUAL REPORT
Crt.
no.
Parties/Case file
number
Object
Court
Case status
53
"Defendant: EL SERV
Plaintiff: SC DIMEA
PREST CONSTRUCT SRL
12033/3/2023"
Disputes with professionals
- claims for the amount of
6,967,882 RON, jointly with
defendant 2.
Bucharest
Court
Suspended until the final resolution
of file 34875/3/2021 pending before
the Bucharest Court - 6th Civil
Section.
54
"Plaintiff:
ELECTROPRECIZIA A.G.
SRL
Defendant: DEER SA
4160/62/2024"
Claims 2.862.089,04 lei
Brasov Court
In course of settlement.
55
"Creditor: DEER SA
Debtor: Servelectro
Integral SRL
32202/3/2018"
Insolvency proceedings.
Amount: RON 2.661.929,55.
Bucharest
Court
Ongoing proceeding.
Source: Electrica
A.1.4 Litigations against the Romanian Court of Accounts
Crt.
no.
Parties/Case
file number
Object
Court
Case status
1
"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
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, definitively rejected by
the ICCJ on 09.04.2024.
Crt.
no.
Parties/Case
file number
Object
Court
Case status
2
"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
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. The
court rejects the recourses filed by
Electrica Serv SA and the Romanian
Court of Auditors against Civil
Judgment No. 1286 of July 31, 2023
of the Bucharest Court of Appeal
- Section IX for administrative and
fiscal disputes, as unfounded. Final.
3
"Plaintiff: DEER
Defendant:
Romanian
Court of
Accounts
Intervenient:
SERV
1677/105/2017"
Suspension and annulment of the
measures imposed by the Decision
of Prahova Court of Accounts no.
45/2016, following the Control Report
of the Prahova Court of Accounts no.
6618/11 November 2016.
Ploiesti
Court of
Appeal
Dismisses the application. A recourse
was filed. On 21.05.2024 the court
rejected the appeal as late. Definitive.
Source: Electrica
238
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APPENDICES
APPENDICES
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ELECTRICA 2024 ANNUAL REPORT
A.1.5 Other litigations with significant impact
Crt.
no.
Parties/Case file
number
Object
Court
Case status
1
"Plaintiff: ELSA, SAPE
Defendant:
E-Distributie Banat
949/39/2019"
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.
2
"Plaintiff: ELSA,
Defendant: SAPE,
Retele Electrice Banat
(former
E-Distributie Banat),
Ministry of Energy
2981/1/2023"
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
The ICCJ rejected the request for
review. With recourse eithin 30 days
of communication.
3
"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.
High Court of
Cassation and
Justice
Action dismissed on the merits. A
recourse was filed. In pronunciation.
4
"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 retrail. In retrail, the
court rejected the request. Recourse
declared by the plaintiff - in course
of settlement.
Crt.
no.
Parties/Case file
number
Object
Court
Case status
5
"Plaintiff: Grup 4
Instalatii
Defendant: DEER
375/1285/2021"
The obligation of DEER to
recognize, to respect the
property right of G4Installatii
regarding the buildings
located in Cluj Napoca, 28A,
Ilie Macelaru Street and
2, Uzinei Electrice Street,
registered in land book
297841 Cluj Napoca with no.
297841, consisting of land with
an area of 10720 sqm and
constructions: construction
registered in land book with
no. 297841-C1, construction of
administrative headquarters
with an area of 1560 sqm;
body A, construction no.
297841- C2 - 512 sqm,
building B, construction
no. 297841 - C3 - 171 sqm,
building C, construction
no. 297841 - C4 - 338 sqm,
building D, construction no.
297841-C6 - 348 sqm - 110/10
Kw Transformation Station.
It is requested the handing
over of the above buildings
and the rectification of the
land book registrations in the
sense of: the annulment of
the tabulation conclusions
by which the DEER property
right was registered, the
deregistration of the land
book property right, the
registration of the property
right in favor of G4I.
High Court of
Cassation and
Justice
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. On 23.04.2024 the court
rejected the appeal. Definitive.
240
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Crt.
no.
Parties/Case file
number
Object
Court
Case status
6
"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).
Crt.
no.
Parties/Case file
number
Object
Court
Case status
7
"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 pronunciation.
8
"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
High Court of
Cassation and
Justice
Admits de request in part. DEER filed
an appeal, admitted by the court.
The Plaintiff filed a recourse – in
preliminary proceedings.
9
"Creditor: Eurototal
Comp SRL
Debtor: DEER
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.
242
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Crt.
no.
Parties/Case file
number
Object
Court
Case status
10
"Plaintiff: ELSA
Defendant: DEER
1697/242/2019"
"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.
11
"Plaintiff: ELSA
Defendant: DEER,
EFSA, FISE
4658/117/2019"
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;
High Court of
Cassation and
Justice
Case dismissed on merits. Appel
filed by ELSA, dismissed by the
court. A recourse was filed by ELSA,
definitively dismissed on 10.12.2024.
Crt.
no.
Parties/Case file
number
Object
Court
Case status
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.
12
"Plaintiff: ELSA
Defendant: Gidazi
Prod Com
Hidroelectrica S.A.
3450/241/2019"
"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. 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;
Pitesti Court of
Appeal
ELSA filed an recourse, definitively
dismissed.
244
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Crt.
no.
Parties/Case file
number
Object
Court
Case status
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.»
13
"Plaintiff: ELSA
Defendant: Romanian
State – Ministry of
Finance
9439/318/2021"
"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."
Targu Jiu Court
in course of solution.
14
"Plaintiff: ELSA
Defendant:
E-Distributie Banat
27688/325/2023"
Request for penalties for
not preparing the CADP
documentation regarding the
land in Ghelari for which ELSA
obtained a court decision.
Timisoara Court
On the merits, the court rejected the
summons request, on 29.04.2024, as
unfounded. Definitive.
15
"Plaintiff: Retele
Electrice Banat
Defendant: National
Trade Registry - Timis
Trage Registry
Main intervenient:
ELSA
6209/30/2023"
Complaint against the
director of the Trade Registry
- regarding the rejection of
the request for correction
of an error regarding the
shareholding.
Timis Tribunal
On 21.05.2024, the waiver of the
judgment was noted. With the
right of appeal within 30 days of
communication. Final.
16
"Plaintiff: FISE
Defendant:
E-Distributie
Muntenia
Intervenient: ELSA
2275/93/2021"
Tancabesti land diassembly
Ilfov Tribunal
Amicably resolved.
Crt.
no.
Parties/Case file
number
Object
Court
Case status
17
"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"
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.
18
"Plaintiff: ELSA
Defendant:
E-Distributie
Dobrogea
17971/212/2023"
Obliging EDD to draw up the
documentation for the
certificate of ownership
and hand it over to ELSA.
Constanta Court
In course of settlement.
247
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Crt.
no.
Parties/Case file
number
Object
Court
Case status
23
"Plaintiff: ELSA
Defendant: Servicii
Energetice Moldova
Called in guarantee:
FISE Electrica Serv
4258/866/2024"
"- obliging the defendant
to leave us in full ownership
and possession of the land
located in Loc. Strunga, str.
Principală, no. 1, Iași county,
in a total area of 2,579 sqm,
composed of:
- a land area of 1,831 sqm,
identified with no. I'm falling.
60214, registered in CF no.
60214 UAT Lathe;
- a land area of 748 sqm,
identified with no. I'm falling.
60212, registered in CF no.
60212 UAT Lathe;
- rectification of entries in
land registers no. 60214 and
60212 UAT Strunga, 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 MOLDOVA
S.A. and registration of the
property right of ELSA"
Pascani Court
In course of settlement.
24
"Plaintiff:
Hidroelectrica
Intervenient: EFSA
1927/2/2019"
• Cancellation of documents
issued by the regulatory
authorities – Decision
no.NARE 324/25.02.2019
Bucharest Court
of Appeal
Rejects the exception of
inadmissibility, the exception of
lack of interest, the exception of
remaining without object, the
exception of res judicata authority.
Reject the action action as
unfounded. Appealable in 15 days
from communication.
25
"Plaintiff: Parchetul de
pe langa Judecatoria
Sector 1
Respondents:
Transenergo Com
SA, Silver Broker de
Asigurare SRL, ZURICH
BROKER DE ASIGURARE
REASIGURARE SRL,
Francu Radu, Cucia
Dragos Mihai, ELSA
15150/299/2024"
Criminal - cancellation of
registrations - Elite insurance
policy, additional document
and related registrations,
as a result of the definitive
settlement of the fake policy
(criminal file 2283/P/2017)
Bucharest
Tribunal
Case dismissed on mertis. ELSA filed
an appeal -in course of solution.
Crt.
no.
Parties/Case file
number
Object
Court
Case status
19
"Plaintiff: ELSA
Defendant: Retele
Electrice Banat
(former E-Distributie
Banat)
22327/325/2023"
Obliging EDB to draw up
the documentation for the
certificate of ownership and
hand it over to ELSA.
Timis Tribunal
On 14.05.2024, the court admitted
the summons request. REB filed an
appeal, in course of settlement.
20
"Plaintiff: ELSA
Defendant: Banat
Electric Networks
7301/3/2024"
"a. Obligation Rețele Electrice
Banat S.A. to amend the
Shareholders' Register in
the sense of registering
the quality of shareholder
of Societătății Energetice
Electrica S.A. with a number
of 1,650 shares.
b. Obligation of Rețele
Electrice Banat S.A. to amend
its Articles of Incorporation,
as a result of the legal
increase of the share capital
according to resolution no.
6573/28.02.2019 of ORC Timiș,
respectively the change
of the share capital to the
amount of 382,170,300 Lei,
as well as the mention of
Electrica as a shareholder
with a number of 1,650
shares."
Bucharest Court
In course of settlement.
21
"Plaintiff: ELSA
Defendant: Banat
Electric Networks
7877/212/2024"
Obligation to sign the
neighborhood PV for
the Celulozei building 5,
Constanta.
Constanta Court
In course of solution.
22
"Plaintiff: ELSA
Defendant: Banat
Electric Networks;
ORC Bucharest
16133/3/2024"
complaint against the
conclusion by which Electrica
was removed from the
shareholding of Retele
Electrice Banat
Bucharest Court
In course of solution.
248
249
DIRECTORS’ REPORT FOR THE YEAR 2024
DIRECTORS’ REPORT FOR THE YEAR 2024
STATEMENTS
STATEMENTS
ELECTRICA 2024 ANNUAL REPORT
ELECTRICA 2024 ANNUAL REPORT
Crt.
no.
Parties/Case file
number
Object
Court
Case status
26
"Plaintiff: ELSA
Defendant: Rosca
Ioan
17268/197/2024"
a) ascertaining the partial
absolute nullity of mandate
contract no. 32/03.10.2013,
namely point 1.2.3 of Annex
4 to this contract ("Benefits,
expenses and leave"), for
illegal cause; b) obliging the
defendant: (1) to pay the sum
of 4,571.15 lei, representing the
equivalent of the rent related
to the period 17.07.2013
- 01.09.2013 and paid by
Electrica for a building, of
which the defendant was
the beneficiary, as a result
of his capacity as general
manager which he held
within the Company in the
period 08.07.2013-10.03.2016
and which was retained as
damage to the company, by
the control report of the CCR
dated 25.11.2016, respectively
maintained by the Bucharest
Court of Appeal Decision
no. 1107/06.07.2023 (final),
pronounced in file no.
2229/2/2017*, to which is
added the update with the
inflation rate until the actual
payment date; (2) upon
payment of the amount
of 1,519.70 lei, representing
the related legal interest,
as well as further of the
amount representing the
legal interest, until the actual
payment date.
Brasov Tribunal
In course of settlement.
27
"Defendants:
TUDOR MARIN
CORNELIU, CEAPCHIE
NICOLAE,PĂDURE
ADRIAN VIOREL, TOMA
MARIUS;
Civil parties: ELSA,
DEER
2772/105/2024"
criminal complaint project
Yellow (DEER SR-Ploiesti
employees) - constitution
of an organized criminal
group (art. 367 of the Civil
Code), crimes provided by
the Electricity and Natural
Gas Law 123/2012, theft of
energy, art. 128 paragraph
1 and 3 of the Civil Code,
tax evasion, fraud (art. 255
of the Civil Code), forgery
of signatures (art. 322 of
the Civil Code), corruption
offenses provided for by
Law 78/2000
Prahova Tribunal
In the regularization procedure.
Crt.
no.
Parties/Case file
number
Object
Court
Case status
28
"Plaintiff: ELSA
Defendant:
Cristodorescu George
22635/3/2024"
"1. Obliging the defendant to
pay the damage caused
to ELSA in the amount of
570,928.16 lei representing:
a) the equivalent value
of the net compensation
illegally collected from
ELSA during the period
08.07.2021-15.05.2023, in the
total amount of 384,062 lei;
b) the equivalent value
of the amounts settled
by ELSA during the period
08.07.2021-15.05.2023, in the
total amount of 125,061.13
lei;
2. Obliging the defendant
to pay the legal interest
calculated from the receipt
of each remuneration in
part and until the date
of effective payment. We
specify that the value of the
interests calculated until
28.05.2024 is in the total
amount of 50,660.58 lei
related to the amount from
point 1 a), and the amount
of 15,342.98 lei related to
the amount from point 1 b)."
Bucharest
Tribunal
In the regularization procedure.
29
"Plaintiff: ELSA
Defendant: Capraru
Gheorghe
6501/208/2024"
• "- obliging the defendant
to leave us in full and
peaceful possession the
land located in Loc. Topleț,
Caraș-Severin County, with
a total area of 1,668 sq
m, identified with no. cad.
34194, registered in CF no.
34194 Topleț;
- rectifying the entries in
the land register no. 34194
Topleț, in the sense of
deleting the inappropriate
entries made therein,
respectively of erasing
the defendant's right of
possession over the land
with an area of 1,668 sq m,
in order to reconcile the
tabular status with the real
legal situation of the real
estate."
Caransebes
Court
In the regularization procedure.
250
251
DIRECTORS’ REPORT FOR THE YEAR 2024
DIRECTORS’ REPORT FOR THE YEAR 2024
STATEMENTS
STATEMENTS
ELECTRICA 2024 ANNUAL REPORT
ELECTRICA 2024 ANNUAL REPORT
Appendix 2 – Details of the main investments of Electrica
Group during 2024
Between 1 January 2024 and 31 December 2024, the most significant investments made by the Group are as
follows:
DESCRIPTION
Value
(RON mn.)
MUNTENIA NORTH
Implementation of an integrated resource planning system - Workforce Management
8.10
Modernization and integration in SCADA of 110/20 kV Zatna Substation, Braila County
2.82
Modernization of 110 kV substations : km 221, replacement of power transformer 110/6kV( Trafo2),
Spiru Haret, replacement of power transformer 110/6kV (Trafo3), SRPA 1A Lacu Rezii, replacement of
power transformer 110/6kV (Trafo2)
7.81
Modernization of LV OHL and power injection in the area of PTA1,2,3 and 4 Zavoaia, Zavoaia locality,
Braila County
3.18
Modernization and SCADA integration of 11o/MTLunca substation, Braila County
6.16
Modernization of 20kV OHL Maxineni - SPP20
2.86
Network connection modernization and securing in SR Braila , stage II- 636 pc BMPIM
2.68
Modernization and SCADA integration 110 kV Buzau Sud Substation
5.12
Modernization of 20 kV OHL Apa Oreavu, Buzau County
3.07
Improving technical conditions of supply OHL 20 kV Padina (looping OHL20kV Padina- OHL 20kV
Rusetu)
2.93
Modernization of network and connections in Homocea, Vrancea County
6.13
Increasing the power supply reliability by looping the 20 kV OHL Ceramica with 20 kV OHL Trifesti
and 20 kV OHL Tricotaje
3.33
Modernization of 110 kV substations: Filesti, SNG, Tecuci, Ionasesti - replacement of 110/6kV power
transformers - 4 pcs.
7.71
0.4 kV network modernization and power injection in the area of PTA 5811 Branistea 2 and PTA 5814
Branistea 4, in Branistea locality, Galati county.
2.02
Modernization of 20/6 kV Slanic Substation and neutral point treatment, Prahova County
5.41
Modernization of Plopeni 20/6 kV Subtation; mounting neutral point treatment 6 kV
2.05
Network switch over from 6 kV to20 kV, Floresti locality
1.94
Modernization of secondary substations (PT), OHL and connections for consumers in the PTA area
3020 Coada Izvorului, Coada Izvorului village, Manesti commune
2.28
Crt.
no.
Parties/Case file
number
Object
Court
Case status
30
"Plaintiff: ELSA
Defendant: Uzina
Concordia
11837/204/2024"
Pronouncing a decision to
replace the defendant's
consent to the signing of
the neighborhood report
for the land with an area of
1,586 m.p. (1,594 m.p. from
measurements) located in
Câmpina, 26 Lt. Col. Erou
Adrian Oprescu Street,
Prahova County, land for
which the undersigned
is obliged to obtain the
Certificate of Attestation of
the Right of Ownership.
Campina Court
In course of settlement.
Source: Electrica
252
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STATEMENTS
STATEMENTS
ELECTRICA 2024 ANNUAL REPORT
ELECTRICA 2024 ANNUAL REPORT
DESCRIPTION
Value
(RON mn.)
Increasing the power supply reliability of 20kV OHL Plavia- Ax Iordacheanu and 20 kV OHL
Mehedinta I
2.64
Power injection, modernization of secondary substations, OHL and connections in the PTA area 3108
CAP Malaiesti, Malaiesti village, Rafov commune, Prahova County
2.17
Modernization and integration in SCADA of 110/20 kV Potlogi Substation
3.51
Modernization of 0.4 kV OHL and connections, Fantanele locality, Cojasca com. Dambovita County
7.21
Modernization of secondary substations ( PTA) fed from UGC 20kV Blocks 1, Blocks 2, IPL, Trainica 1,
Trainica 2, Pucioasa city, Dambovita County
4.82
Modernization of 0.4kV OHL and connections with medium voltage distribution and metering in
anti-theft solution, Merisu area, Costetsii din Vale, Dambovita County
3.60
Voltage level improvement in Cranguri locality, Dambovita County
2.92
Voltage level improvement in Adanca and Sacuieni, Dambovita County
5.40
Modernization of LV OHL and power injection in the area of PTA 2070, PTA 2183, PTA 2184, Sperieteni
locality, Dambovita County
3.00
Modernization of LV OHL and power injection in the area of PTA 2036, PTA 2093, PTA 2291, Manesti
locality, Dambovita County
2.35
Modernization of secondary substations fed from20kV UGC Blocuri 110/20/6 kV Gaesti Substation,
Gaesti city, Dambovita County
2.80
Installation of power balance meters in SR Braila area, secondary substations for preparing the
implementation of the smart metering system - 800 pcs.
4.22
Installation of power balance meters in SR Buzau area, secondary substations for preparing the
implementation of the smart metering system - 1168 pcs
4.36
Installation of power balance meters in SR Focsani area, secondary substations for preparing the
implementation of the smart metering system - 832 pcs.
4.08
Installation of power balance meters in SR Galați area, secondary substations for preparing the
implementation of the smart metering system - 1694 pcs.
5.59
Installation of power balance meters in SR Ploiesti area, secondary substations for preparing the
implementation of the smart metering system - 622 pcs
3.28
Installation of power balance meters in SR Ploiesti area, secondary substations for preparing the
implementation of the smart metering system - 622 pcs
1.07
Implementation of a smart distribution system in a homogeneous area of consumers in the
neighborhoods of Tiglina 1, Tiglina 2, Tiglina 3 - Micro 16, Tiglina 4 in the municipality of Galati, Galati
county
1.21
Smart metering implementation in Maracineni commune, Buzau County
1.31
Smart metering implementation in Buzau municipality 27369 pcs
2.40
Smart metering implementation in SR Galati County
1.05
Smart metering implementation in SR Targoviste
2.03
Smart metering implementation in Brebu locality, Prahova county
1.15
Smart metering implementation in Cazasu Chiscani Insurat Lrezii
2.64
Smart metering implementation in 8 localities: Barcea, Ivesti, M Alb, Matca, Movile (8 localitati)
4.78
DESCRIPTION
Value
(RON mn.)
TRANSILVANIA SOUTH
OMS- Outage tracking and management system, integrated with existing SCADA/DMS and SAP-ERP
systems
3.90
Implementation of Workforce Management - IT tool for planning and monitoring in the field the
resources
2.86
Network connection modernization and securing in Alba subsidiary
1.69
Increasing and modernizing the capacity to compensate the capacitive currents in 20 kV
distribution network - 110/20 kV substation Barabant, Alba County
3.20
Modernization of primary circuits in the substations managed by COR IT Alba - replacement of
circuit breakers in 110 kV cells, Alba County
1.12
Voltage level improvement and modernization of 0.4 kV OHL in Craciunelu de Jos locality, Alba
County
7.19
Voltage level improvement and modernization and of 0.4 kV OHL and connections, Sebesel loc.
Sasciori com. Alba County
5.60
Voltage level improvement and modernization of LV OHL and connections, Necsesti locality, Alba
County
2.28
Implementation of smart metering system in TS area, Abrud, Alba County
1.01
Implementation of smart metering SR Alba - prosumers
1.46
Implementation of smart metering system in TS area, Aiud, Alba County
2.36
Increasing the 20 kV network reliability in the Alba Iulia - Ciugud area, Alba County
2.01
Network modernization Bran locality - Stage 3 , PA 1, PT 5, PT 7 Bran area, Brasov County
1.29
Network modernization PT 5 Bod and PT 1 Bod area, Brasov County
1.68
Modernization of primary circuits in the substations managed by COR IT Brasov - replacement of
circuit breakers in 110 kV cells, Brasov County
1.18
Network modernization, Bran locality, Brasov county - Stage 1 - area PT2, PT 11, Bran
5.44
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)
16.52
Implementation of the Smart Mettering System SR Brasov (SMI calendar)
2.80
Installation of power balance meters in Transilvania sud secondary substations for preparing the
implementation of the smart metering system
1.42
Modernization of 6 kV UGC Bartolomeu Substation - PA11 and 6 kV UGC Bartolomeu substation- PA
12 , Brasov County
2.29
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
8.55
254
255
DIRECTORS’ REPORT FOR THE YEAR 2024
DIRECTORS’ REPORT FOR THE YEAR 2024
STATEMENTS
STATEMENTS
ELECTRICA 2024 ANNUAL REPORT
ELECTRICA 2024 ANNUAL REPORT
DESCRIPTION
Value
(RON mn.)
Distribution network modernization, Mihai Viteazu street, downtown area of the city Intorsura
Buzaului, Covasna County
5.58
Network modernization on streets: Scolii , Kalvin, Dozsa Gyorgy, Piliske, December 1, 1918, Prundul de
jos, Covasna City, Covasna County
4.77
Modernization and voltage level improvement of 0.4 kV OHL and connections , Cetatuia locality,
Harghita County
3.21
Increasing the power supply reliability of 20 kV UGC CEKEND between cel. Cekend in Substation
Tabara and secondary substations PT-88+PT65 Odorhei, 20 kV UGC UFET between cel. UFET in
substation Tabara and secondary substation PT-35 Odorhei, insertion of new connection point
between UGC Cekend and NORADA OHL
1.09
Modernization of 20 kV ORAS II network between 110/20 kV Odorheiu Secuiesc Substation - PT 52,
PT6-PT23, PT 23- PT 24, PT 24 - PT 86, PT 86- PT 82, PT 82 - PT 26, in Odorheiu Secuiesc city, Harghita
County
2.90
Network development to supply electricity to the industrial area in Remetea commune Bayer
Strada SRL, Harghita county
22.04
Modernization and voltage level improvement of 0.4 kV network, Valea Iubirii str., Corunca locality,
Mures County
2.26
Implementation of the Smart Mettering System SR Mures (SMI calendar)
1.30
Installation of power balance meters in Transilvania sud secondary substations for preparing the
implementation of the smart metering system
1.46
Increasing the power supply reliability of 20 kV OHL Oras 1- Spitalului Orasenesc Ludus area, Ludus
locality, Mures County
3.09
Modernization of pole mounted substations 20/0.4 kV from DEER Mures Branch, Mures County
4.15
Voltage level improvement and modernization of MV & LV network in Miercurea Sibiului area, Sibiu
County
7.14
Implementation of the Smart Mettering System SR Sibiu (SMI calendar)
1.26
0.4 kV network modernization in Dumbraveni locality, Sibiu County
3.05
DESCRIPTION
Value
(RON mn.)
TRANSILVANIA NORTH
Outage management system (OMS)
3.92
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.
3.30
Modernization of pole mounted secondary substations in SDEE TN- Sucursala Cluj-Napoca, COR
Cluj 2 area, vol.4
2.22
Installation of power balance meters in Transilvania Nord secondary substations for preparing the
implementation of the smart metering system - SR Cluj area
23.00
Construction the a building for the User Relations Center and dispatcher - SR Cluj-Napoca
2.56
Increasing the power supply reliability in Stana de Vale, Coada Lacului area
3.12
Power injection and LV OHL modernization in Dobresti locality, Bihor County
2.42
Power injection in Munteni locality
3.66
Power injection and LV network modernization in Remeti locality, Boncesti area
2.42
Power injection and LV OHL modernization in PTA3 and PTA4 area, Dobresti locality, Bihor County
2.74
Modernization of network and connection in Rohia locality
5.70
Modernization of LV network in Baia Mare locality, historical center area, stage 3
5.50
Modernization of electrical networks in Cernesti locality, within COR MV LV Baia Mare
4.27
Neutral point treatment 20 kV in Carpati Substation
2.25
Modernization of LV OHL and connections in Anies locality, BN County
2.02
Modernization of LV OHL and connections in Ilva Mare locality, BN County
2.59
Replacement of protective conductor from the 110 KV Salaj Jibou OHL and the 110KV Jibou-Cehu
Silvaniei OHL/I-23-6504
3.71
Voltage level improvement and modernization of 0.4 OHL Chiesd- supplied from PTA Chiesd 1 and
PTA Chiesd 2
2.16
Modernization of pole mounted secondary substations in SDEE TN- Sucursala Cluj-Napoca, COR Dej
area, vol.1
2.20
Implementation of smart metering system batch 3 Lechinta area
5.37
Implementation of smart metering system in Bixaad and Calinesti Oas localities, SATU MARE county
2.39
Implementation of smart metering system Batch1 - Alesd
Implementation of smart metering system2021-2023 Bihor county, batch 4
3.02
Source: Electrica
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DIRECTORS’ REPORT FOR THE YEAR 2024
DIRECTORS’ REPORT FOR THE YEAR 2024
STATEMENTS
STATEMENTS
ELECTRICA 2024 ANNUAL REPORT
ELECTRICA 2024 ANNUAL REPORT
During 2024, the largest transfers from tangible assets in progress to tangible assets, representing mainly
commissioning of investments, are the following:
DESCRIPTION
Value
(RON mn.)
MUNTENIA NORTH
Modernization and integration in SCADA of 110/20 kV Zatna Substation, Braila County
4.37
Modernization of the 110 kV Hipodrom Substation, replacement of power transformers Trafo 1
(110/20/6kV) & Trafo 2 (110/6kV)
5.03
Increasing the power supply reliability in Radu Negru and Buzaului neighbourhood, Braila
Municipality
2.06
Modernization of 20kV OHL Maxineni - SPP20
2.64
Network connection modernization and securing in SR Braila , stage II- 636 pc BMPIM
2.77
Modernization and SCADA integration 110 kV Buzau Sud Substation
2.65
Modernization of 20 kV OHL Apa Oreavu, Buzau County
2.52
Modernization of network and connections in Homocea, Vrancea County
8.77
Modernization of 110 kV substations: Filesti, SNG, Tecuci, Ionasesti - replacement of 110/6kV power
transformers - 4 pcs.
3.17
Modernization of 20/6 kV Slanic Substation and neutral point treatment, Prahova County
6.28
Installation of grounding compensation with BSRC (adjustable arc suppression coil) in 20/6 kV
Columbia Substation
2.40
Improving technical conditions of supply in Plopeni locality
5.53
Modernization of Plopeni 20/6 kV Subtation; mounting neutral point treatment 6 kV
2.52
Voltage level improvement and modernization of LV OHL and connections for consumers from the
area of PTA 3038 & PTA 3128 Varnita area, Prahova County
2.95
Voltage level improvement in PTA 3019 Zalhanaua area,Manesti com. Zalhanaua village, Prahova
County
2.03
Network switch over from 6 kV to20 kV, Floresti locality
3.09
Modernization of secondary substations (PT), OHL and connections for consumers in the PTA area
3020 Coada Izvorului, Coada Izvorului village, Manesti commune
2.33
Increasing the power supply reliability of 20kV OHL Plavia- Ax Iordacheanu and 20 kV OHL
Mehedinta I
2.71
Power injection, modernization of secondary substations, OHL and connections in the PTA area 3108
CAP Malaiesti, Malaiesti village, Rafov commune, Prahova County
2.26
Modernization and integration in SCADA of 110/20 kV Potlogi Substation
6.28
DESCRIPTION
Value
(RON mn.)
Modernization of 0.4 kV OHL and connections, Fantanele locality, Cojasca com. Dambovita County
8.55
Modernization of secondary substations PTZ in Gaestis: 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
4.23
Modernization of secondary substations (PTA) fed from UGC 20kV Blocks 1, Blocks 2, IPL, Trainica 1,
Trainica 2, Pucioasa city, Dambovita County
10.33
Modernization of 0.4kV OHL and connections with medium voltage distribution and metering in
anti-theft solution, Merisu area, Costetsii din Vale, Dambovita County
4.09
Voltage level improvement in Cranguri locality, Dambovita County
2.60
Voltage level improvement in Adanca and Sacuieni, Dambovita County
2.21
Modernization of LV OHL and power injection in the area of PTA 2070, PTA 2183, PTA 2184, Sperieteni
locality, Dambovita County
2.20
Modernization of LV OHL and power injection in the area of PTA 2036, PTA 2093, PTA 2291, Manesti
locality, Dambovita County
2.44
Modernization of secondary substations fed from 20kV UGC Blocuri 110/20/6 kV Gaesti Substation,
Gaesti city, Dambovita County
2.81
Installation of power balance meters in SR Braila area, secondary substations for preparing the
implementation of the smart metering system - 800 pcs.
4.13
Installation of power balance meters in SR Buzau area, secondary substations for preparing the
implementation of the smart metering system – 1,168 pcs
4.39
Installation of power balance meters in SR Focsani area, secondary substations for preparing the
implementation of the smart metering system - 832 pcs.
4.07
Installation of power balance meters in SR Galați area, secondary substations for preparing the
implementation of the smart metering system – 1,694 pcs.
5.62
Installation of power balance meters in SR Ploiesti area, secondary substations for preparing the
implementation of the smart metering system - 622 pcs
3.12
Smart metering implementation in SR Targoviste
2.12
Smart metering implementation in Brebu locality, Prahova County
1.05
258
259
DIRECTORS’ REPORT FOR THE YEAR 2024
DIRECTORS’ REPORT FOR THE YEAR 2024
STATEMENTS
STATEMENTS
ELECTRICA 2024 ANNUAL REPORT
ELECTRICA 2024 ANNUAL REPORT
DESCRIPTION
Value
(RON mn.)
TRANSILVANIA SOUTH
Modernization and consolidation of SAP system infrastructure HW and SW [SAP-DEER] - Batch
1
3.00
0.4 kV network modernization in Dumbraveni locality, Sibiu County
5.61
OMS- Outage tracking and management system, integrated with existing SCADA/DMS and
SAP-ERP systems
3.27
Increasing and modernizing the capacity to compensate the capacitive currents in 20 kV
distribution network - 110/20 kV substation Barabant, Alba County
3.82
Voltage level improvement and modernization of 0.4 kV OHL in Craciunelu de Jos locality,
Alba County
6.74
Voltage level improvement and modernization and of 0.4 kV OHL and connections, Sebesel
loc. Sasciori com. Alba County
5.71
Voltage level improvement and modernization of LV OHL and connections, Necsesti locality,
Alba County
2.39
Implementation of smart metering system, Blaj locality, Alba County (6,567 single phase/455
pcs)
1.66
Implementation of smart metering system, Cugir locality, Alba County (9,953 single
phase/632 pcs)
2.66
Implementation of smart metering system in , Abrud, Alba County
1.31
Network modernization Bran locality - Stage 3 , PA 1, PT 5, PT 7 Bran area, Brasov County
4.91
Network modernization in PT 5 Bod and PT 1 Bod area, Brasov County
4.26
Modernization of primary circuits in the substations managed by COR IT Brasov - replacement
of circuit breakers in 110 kV cells, Brasov County
1.07
Network modernization, Bran locality, Brasov county - Stage 1 - area PT2, PT 11, Bran
6.18
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)
9.94
Installation of power balance meters in Transilvania Sud secondary substations for preparing
the implementation of the smart metering system - Brasov
1.50
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
7.18
Distribution network modernization, Mihai Viteazu street, downtown area of the city Intorsura
Buzaului, Covasna County
5.93
Network modernization on streets: Scolii , Kalvin, Dozsa Gyorgy, Piliske, December 1, 1918,
Prundul de jos, Covasna City, Covasna County
4.83
DESCRIPTION
Value
(RON mn.)
Modernization and voltage level improvement of 0.4 kV OHL and connections , Cetatuia locality,
Harghita County
1.85
Increasing the power supply reliability of 20 kV UGC CEKEND between cel. Cekend in Substation
Tabara and secondary substations PT-88+PT65 Odorhei, 20 kV UGC UFET between cel. UFET in
substation Tabara and secondary substation PT-35 Odorhei, insertion of new connection point
between UGC Cekend and NORADA OHL
2.41
Network development to supply electricity to the industrial area in Remetea commune Bayer
Strada SRL, Harghita County
22.08
Modernization of 20 kV UGC, Tg. Mures city area (20 kV UGC Tudor 1, between PA 19-PT 270, 20 kV
UGC Tudor 5, between PA 31-PT 274, kV UGC Scoala Forestiera derivation between PT 301-PT 538),
Mures County
1.25
Modernization and voltage level improvement of 0.4 kV network, Valea Iubirii str., Corunca locality,
Mures County
2.39
Installation of power balance meters in Transilvania Sud secondary substations for preparing the
implementation of the smart metering system -Mures
1.45
Increasing the power supply reliability 20 kV OHL Oras 1- Spitalului Orasenesc Ludus area, Ludus
locality, Mures County
3.14
Voltage level improvement and modernization of MV & LV network in Miercurea Sibiului area, Sibiu
County
9.26
TRANSILVANIA NORTH
Outage management system (OMS)
3.27
Modernization of pole mounted secondary substations in SDEE TN- Sucursala Cluj-Napoca, COR Dej
area, vol.1
3.17
Modernization of grounding installation of secondary subtation PT powered from Baciu
Substation, Nadas Station and Nord Substation
1.44
Installation of power balance meters in Transilvania Nord secondary substations for preparing the
implementation of the smart metering system
20.91
Increasing the power supply reliability in Floresti locality, Cluj County Volume 6 Modernization of
Iazuri distributor
3.95
Construction of building for the User Relations Center and dispatcher - SR Cluj-Napoca
4.38
Increasing the power supply reliability in Stana de Vale, Coada Lacului area
4.05
Modernization of low voltage network, Urviş locality, Bihor County
1.77
Modernization of LV OHL, connections and power injection in the Adevarului PTA area of Oradea
1,18
1.18
2,40
Modernization of LV OHL, connections and power injection in the Dobresti locality, Bihor County
2.40
Modernization of LV overhead line and power injection at Serghis, Bihor County
1.93
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DESCRIPTION
Value
(RON mn.)
Power injection in Munteni locality
4.23
Power injection and LV network modernization in Remeti locality, Boncesti area
2.49
Power injection and LV OHL modernization in PTA3 and PTA4 area, Dobresti locality, Bihor County
2.87
Installation of photovoltaic panels on buildings DEER Oradea Branch
1.31
Modernization of network and connection in Rohia locality
5.78
Modernization of LV network in Baia Mare locality, historical centre area, stage 3
5.09
Modernization of electrical networks in Cernesti locality, within COR MV LV Ba ia Mare
3.42
Switchover to 20 kV PTM no. 13,42,52,53 Sighetu Marmatiei town
2.03
Neutral point treatment 20 kV in Carpati Substation
2.29
Modernization of LV OHL and connections in Ilva Mare locality, BN County
3.02
Voltage level improvement and modernizationof 0.4 OHL Chiesd- supplied from PTA Chiesd 1 and
PTA Chiesd 2
2.45
Implementation of smart metering system batch 3 Lechinta area
2.98
Implementation of smart metering system in Bixad and Calinesti Oas localities, SATU MARE county
2.12
Source: Electrica
Appendix 3 – Applicable regulatory framework
A.3.1
Applicable legal framework in 2024:
A.3.1.1. Distribution activity
2024
Regulations
regarding
tariffs:
• 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.
• Order no. 97/20.12.2024 on the approval of the specific tariffs for the electricity distribution
service and the price for reactive electricity, valid from January 1, 2025, for DEER, as well as the
values of the investment plans for the 5th regulatory period.
• The single distribution tariffs for DEER, applicable on January 1, 2025, have an average increase
of 12.6% compared to January 1, 2024.
• Annex 1 - Specific TARIFFS for the electricity distribution service applied by DEER, valid from
January 1, 2025
• Annex 2 - VALUES of the annual investment plans of DEER corresponding to RP5, broken down by
financing sources
• Annex 3 - Minimum mandatory value for the total investments made from own sources and the
minimum mandatory value for investments made in the electricity distribution networks from
own sources for each year of PR5, for DEER
• ANRE order no.55/6.08.2024 regarding the establishment of the regulated rate of return on
invested capital applied to the approval of tariffs for the transmission and distribution services
of electricity and natural gas, for the fifth regulatory period, with the value of 6.94%.
• ANRE order no.67/17.09.2024 regarding the approval of the Methodology for setting tariffs for the
electricity distribution service:
I. OPEX
OPEXC and the efficiency factor will be established based on the OPEX study, carried out by
ANRE.
PEX is not subject to efficiency and will be adjusted annually with the inflation rate (RI) and by
5%, correlated with the real wage growth index published by the NSFC
Research and development costs will not be subject to efficiency and can be requested by
DSOs in the amount of a maximum of RON 5 million per RP5 total.
Expenses related to contracts with affiliated parties whose object is DSOs representation,
consulting services or assistance in the field of regulation, and expenses corresponding to the
profit attributed to possible subcontracted parties are not recognized.
The inflation correction between realized and forecasted IR will be applied to PEX only if the
inflation difference is positive.
II. RAB and CAPEX
RAB RP5 will be inflated with the forecasted IR used to calculate the RRR.
Investments in the form of updates of IT applications or databases will not be recognized in
RAB, they will be recognized as OpexNC.
Endowment-type assets will be recognized in RAB if DSO demonstrates their efficiency.
III. RRR incentives
RRR incentives will no longer be granted: 1% new investments in network and 1% for PCI.
An incentive of 0.5% will be granted for investments in networks made within the projects co-
financed from non-reimbursable EU funds.
A 1% incentive is granted for the value that exceeds the minimum mandatory value for
investments made in network.
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The RRR will increase or decrease by 0.5%, depending on the level of performance achieved
regarding the development of a smart grid;
RRR is reduced by 2% for investments in pif endowments in RP5 (administrative buildings and
tangible and intangible fixed assets). As an exception, the RRR is not reduced in the case of
equipment actually used for works in the RED and which lead to the maintenance and/or
improvement of the RED parameters
IV. NL
NL targets will decrease linearly during PR5 by 15% for LV and by 6% for MV.
The recognized NL price will not exceed the weighted average of the prices realized by the
DSO, plus 5%.
In periods of crisis on the energy market, declared by normative acts, the NL price realized by
the DSOs will be recognized.
V. Revenues and tariffs
The regulated income will consist of non-NL income and NL income, the non-NL income is
linearized, and the related average tariff component will be capped at 10%.
The NL income is the basis for the establishment of NL tariffs that will be recovered from both
consumers and producers.
Pole rental activity will be regulated and will be included in distribution service income.
• Draft Order on the approval of the Methodology for the establishment of performance indicators
in relation to the development of a smart grid to promote energy efficiency and the integration of
electricity produced from renewable sources. The Methodology proposes:
• Establishment of a set of indicators to monitor:
A. quality of electricity distribution/transmission service;
B. integration of renewable electricity generation (RES-E), storage facilities and flexibility
services;
C. the level of digitization of electricity grids.
• The performance of each network operator (RO) is assessed through a composite performance
indicator, determined as a weighted average of the monitored indicators;
• The monitoring of the indicators and the determination of the composite performance indicator
shall be done on an annual basis, starting in 2027;
• In 2024-2025 the composite indicator shall be determined as a weighted average based on
quality indicators, production integration indicators, storage facilities and flexibility services,
and the weighting coefficients shall be equal;
• For the indicators reflecting the degree of digitization of the networks, it is proposed to set
targets to be achieved by the ROs;
• Thresholds against which the RRR is increased or decreased by 0.5% depending on the value
realized in one year of the composite performance indicator:
A. if greater than 90%, RRR is increased by 0.5%;
B. if below 70%, the RRR is decreased by 0.5%.
Investments
Procedure
• ANRE order no. 3/2024 for the approval of the Procedure regarding the approval of the
investments of the transport and system operator and distribution operators, which consist
of electricity production installations from renewable energy sources located in their own
electrical transformation stations – effective from March 1, 2024
• For the ANRE to approve an installation for the production of electricity from renewable sources
in the premises of its own electrical transformation station, the following conditions must be
met:
• the electrical energy produced is consumed exclusively to supply the own consumption of
the electrical 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.
2024
• The ex-ante presentation of the cost-benefit analysis is required, as well as the analysis, every
year after the commissioning, 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;
• 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.
• ANRE Draft order for the amendment of the Procedure regarding the substantiation and
approval of the development and investment plans of the transport and system operator and of
the electricity distribution operators approved by ANRE Order no. 98/2022 - public consultation
• art. 27, para. (4), lit. g) - to clarify the fact that the electricity production facilities from
renewable sources located in a power station can only be used to cover the „administrative
consumption” and the „own consumption” of the power station, in accordance with ANRE Order
no. 3/2024;
• art. 40, para. (2) imposes the condition that the network operators implement the investment
plan in the network in the amount of at least 95%. The reformulation of this paragraph is
necessary to clarify the fact that the planned and realized values that are compared refer to
the investments related to the network.
Licenses and
authorizations
• ANRE Draft order regarding the amendment of the Regulation for the granting of licenses and
authorizations in the electricity sector - approved by ANRE Order no. 12/2015, with subsequent
changes and addition - public consultation
• improving the process of granting/modification/suspension/withdrawal of authorizations and
licenses of economic operators carrying out activities in the field of electricity, by revising the
conditions applicable to applicants;
• correlation of the provisions of the Regulation with the provisions of ANRE Order no. 118/2023
regarding the approval of tariffs and monetary contributions charged by ANRE in 2024;
• modification of the legal provisions regarding the method of submission of documents by
authorization/license applicants, in the sense of prioritizing electronic means of communication
(portal provided by ANRE in this regard, ANRE e-mail address or uploading to the PCUe
platform);
• the inclusion of a chapter dedicated to the transfer of energy capacities in which the ways of
realizing/exploiting the energy capacities that are the subject of a transfer are regulated, either
as a result of the conclusion of contracts through which the ownership/use right is transferred
over them, or as a result of a process of merger/division of the holders of establishment
authorizations/licenses;
• the inclusion in the Regulation of the situation of modification of the license for the commercial
exploitation of energy capacities by including in its content some energy capacities over
which the applicant can have a provisional exploitation right, until the date on which 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. 23/2024 for the modification and completion of the Technical Norm regarding
the establishment of requirements for the execution of works under voltage in electrical
installations, approved by ANRE Order no. 34/2021- NTE code 010/20/01 - effective from July 2,
2024
• establishing new requirements that will allow an easier implementation of technologies for
the execution of works under tension by economic operators certified by ANRE, other than NO,
electricity producers or final customers of electricity, industrial or similar;
• regarding the degree/type of authorization for electricians belonging to economic operators
who carry out activities based on certificates issued by ANRE, other than NO, electricity
producers or final customers of electricity, industrial or similar, who perform live works;
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2024
• a new requirement was introduced regarding the marking of protective means, tools, devices
and work equipment used for the execution of work under tension in accordance with the
provisions of the SR EN 61477-2009 standard - Work under tension Minimum requirements for
the use of tools, devices and the equipment;
• both the specific requirements for economic operators that perform live work and the
organizational measures for work safety necessary for the performance of live work at MV or HV
have been completed;
• the definition of the issuer for works under tension has been reformulated, taking into account
the possibility that it belongs to the economic operator certified by ANRE that performs works
under tension.
Smart metering
regulations
(SM):
• ANRE Order no.1/2025 regarding the modification and completion of the Framework Conditions
for the realization of the implementation calendar of the intelligent electricity metering
systems at the national level approved by ANRE Order no. 177/2018 with subsequent changes
and addition.
• Addition of new definitions: „MMDC – Multi Meter Data Collector (HES universal)” and „PLC –
Power Line Communication”;
• Replacement of the phrase „users” with the phrase „consumption/production and consumption
sites”;
• Modification regarding communication subsystems by introducing reference to the
components necessary to ensure local or remote access to non-validated consumption data,
in near real time;
• Addition with the obligation of the OD to ensure interoperability at the level of equipment,
communication technologies and IT applications integrated into the SMI;
• Modification regarding ensuring user information regarding the integration of the consumption/
production and consumption site into the SMI;
• Introduction of provisions regarding the technical conditions that the networks in which the SMI
is to be integrated must meet;
• The obligation to prepare an analysis of the results recorded in the reporting period, detailing
the specific conditions that determined those results, the problems encountered, measures that
will be taken in the following period to overcome the problems encountered;
• Introduction of the provision that the proposal to modify the SMI implementation calendar
submitted by the OD, be accompanied by a justification memorandum and a cost-benefit
analysis, prepared according to a framework structure provided in a newly introduced annex;
• Access, at the request of users, to historical consumption data and to the provision of data
for billing of electricity consumption based on the data recorded in the SMI. The periodicity of
updating validated historical measurement data to users and suppliers has been changed, to
at least once a month. For billing, in the event of a data communication failure, an exemption
has been provided for, accepting the use of estimated consumption data;
• Conditions for granting access to non-validated consumption data, in near real time, for users.
It is provided that users or third parties authorized by users have access to non-validated
consumption data in near real time and that security and interoperability conditions are
ensured, as well as the related internal procedures, which the DSOs are obliged to draw up and
make accessible to those interested, by publishing them on their own websites;
• The obligation of the DSO to integrate into the SMI with priority consumption/production and
consumption sites located in areas where notifications regarding the establishment of energy
communities have been registered;
Introduction of the DSO’s obligation to develop and publish an operational procedure regarding
the remote disconnection/reconnection of consumption/production and consumption sites, which
ensures the safe and secure performance of the process for network elements and persons located
at the consumption/production and consumption site. The provision was also introduced that, for
justified situations, the DSO may charge costs for the disconnection/reconnection of consumption/
production and consumption sites integrated into the SMI;
2024
Technical
regulations
a) Network connection
• ANRE Order no. 106/2023 for the amendment and completion of ANRE Order no. 239/2019 for the
approval of the Technical 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.53/31.07.2024 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
• The methodology aims to establish the rules regarding the allocation by auction of the
available capacities in order to connect production/consumption and production sites, with
installed capacities of electricity production facilities greater than or equal to 5 MW.
• This regulation will replace the current concept that establishes the obligation of connection
applicants to participate in general strengthening works in the electrical networks upstream
of the connection point with a mechanism for allocating the capacity of the electrical network
based on an auction. The development and administration of the auction platform and the
organization of the respective activity is carried out by the transport and system operator.
• The methodology is applied starting from 01.01.2026 for: - the connection of production/
consumption and production sites with/without new storage facilities, with the installed
power of electricity production facilities greater than or equal to 5 MW, respectively of new
storage facilities, with installed power greater than or equal to 5 MW; - the granting of a power
increase for evacuation in the situation of the location at a place of production/consumption
and existing production of additional electricity production facilities/storage facilities with
an installed power greater than or equal to 5 MW; - the connection to an existing place of
consumption of electricity production facilities/storage facilities with an installed power greater
than or equal to 5 MW.
• Through this mechanism, the sums collected through the auction for the additional electricity
network development works, necessary to cover the requests of the applicants for capacity
allocation, are used by the network operators for the development of the electricity networks.
• At the same time, the order revises the provisions of the Regulation regarding the connection of
users to public interest electric networks, approved by ANRE Order no. 59/2013, with subsequent
amendments and additions, through measures that mainly refer to the establishment of the
5% financial guarantee provided for in the technical connection notices issued for production/
consumption and new production sites with installed capacities greater than 1 MW regardless
of whether or not the connection solution provides for strengthening works in the electrical
networks upstream of the connection point.
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2024
• 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
• 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 fulfillment 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.
2024
b) Prosumers
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 electric 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
• clarifications on how to apply the quantitative compensation between the electrical energy
consumed and the electrical energy produced and delivered in the electrical network by
prosumers who own SRE electrical energy production units with an installed electrical power of
no more than 200 kW per point of consumption
• detailing the way 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.
c) Storage
• Draft ANRE Order on the Methodological Norms regarding the exemption from payment of
regulated tariffs applied by the OR for stored electricity, extracted from the network, according
to GEO 134/2024 – public consultation
• The norms ensure alignment with the provisions of GEO 134/2024 amending Energy Law no.
123/2012 and Law no. 220/2008 for the stability of the system for promoting E-RES producers,
regarding the exemption of operators of storage facilities from payments for transport services
(TL), system, distribution
d) Distribution service performance standard
No changes or additions to the legislation were issued until the moment of publication of this
report.
Commercial
Regulations
• 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
phase II
• 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 the obligation to issue the invoice;
• it is not necessary for the final customer to sign the verbal process, but he can dispute both the
verbal process 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.
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2024
• Order no.54/30.07.2024 for the modification and completion of the Commercial Rules regarding
the collection, processing and transmission of the measured values of electric energy,
approved by ANRE Order no. 62/2020
• The Order entered into force starting on July 31, 2024, TSOs, DSOs and MOs update their own
procedures, within 30 days from the entry into force
• The changes made represent the updating of the terminology: the replacement of the terms
UD (dispatchable unit), CD (dispatchable consumption) and ISD (dispatchable storage facility)
with GFR (reserve supply group) and UFR (reserve supply unit), as a result of the implementation
in the related secondary legislation of the currently existing terminology within the European
regulations in force.
• Order no. 94/2024 approving the framework contract for the provision of the electricity
distribution service concluded between the concessionaire DO and the electricity producer
• In order to invoice the equivalent value of the energy injected into the RED, it is necessary to
conclude contracts for the provision of the distribution service
• The methodology for establishing distribution tariffs approved by ANRE Order no. 67/2024
provides for the obligation of producers to pay distribution tariffs as follows:
• − TGD - is applied by the DO to producers that inject energy into the RED
• − TGD_Tp - corresponding to the regulated income for additional 110 kV transit CPT - is
applied by the DO to producers with Pi> 5MW
• The DSO issues an invoice that includes the value of the distribution service related to the
quantity of active electricity injected into the network (Vn ), calculated as follows: Vn = TGD x
Qinjectat<5 + (TGD+TGD_Tp) x Qinjectat >5 (lei), where:
• − Q injected<5 - the quantity of energy injected by producers with installed capacity < 5 MW
(MWh);
• − Q injected>5 - the quantity of energy injected by producers with installed capacity > 5 MW
(MWh);
• − TGD and TGD_Tp will be approved by ANRE for the DO’s network area and will be published
in the Official Gazette.
Compliance
Regulation
• Draft Order regarding the modification and completion of the Regulation for the organization
and development of investigative activity in the field of energy regarding the operation of the
wholesale energy market, approved by ANRE Order no. 25/2017
• allows investigators access to national classified information, with subsequent authorization to
issue security certificates;
• introduces a substantiation note for completing the preliminary analysis, with the aim of
aligning the articles of the regulation;
• establishes a deadline of 60 days for performing the preliminary analysis, with the possibility of
extension by another 60 days, for efficiency;
• standardizes the terminology for structures within ANRE according to the current institutional
organization;
• clarifies the internal approval procedure of the investigation report in its final form;
• regulates the process of completing the investigation in the case of sanctions related to
turnover;
• clarifies the way of resolving complaints and introduces a preliminary analysis and a
substantiation note;
• change the deadline for initiating the complaint investigation from 90 to 60 days, subject to the
approval of the substantiation note;
• abrogates the prioritization of cases by the Directorate of Investigations, leaving this decision
under the responsibility of the ANRE president;
• remove the mention about the exercise of investigative powers by notifying the judicial
authorities, because REMIT has specific provisions;
• completes the rights of the members of the investigation team with those provided by REMIT;
• require the investigated market participants to provide a declaration regarding the correctness
and completeness of the documents provided, as well as to carry out correspondence/
discussions with ANRE in Romanian;
• adds the obligation of the investigation team to follow the implementation of the measures
ordered by the decision to complete the investigation.
2024
Sanctions and
complaints
• 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).
• Order no.62/2024 for the amendment of the Procedure regarding the settlement of complaints
of interested parties in the energy sector, approved by ANRE Order no. 194/2020
• is modified considering the provisions of the Electricity and Natural Gas Law no. 123/2012, art.
7^2 Settlement of complaints and by way of derogation from the provisions of GEO no. 27/2002
regarding the regulation of the activity of resolving petitions, approved with changes and
additions by Law no. 233/2002, with subsequent changes;
• in the approval report, ANRE motivates the changes because of the increase in the number
of complaints registered with ANRE, the proposals received from the internal auditors, the IT
changes in the organization of the institution, which also generated changes in the storage
and archiving of complaint files, and especially the situations in practice as a result of the
application of the provisions of the normative act.
• ANRE Order no.79/2024 regarding the modification and completion of the Procedure regarding
the establishment and individualization of contraventional sanctions related to turnover, by
the Regulatory Committee of ANRE, as a result of investigative actions, approved by ANRE Order
no. 13/2022
• modification of the procedure for indicating all relevant legal provisions from Law no. 123/2012
governing the establishment of sanctions proportional to the turnover of the investigated legal
entities.
• the repeal of some provisions that do not correlate with the current provisions.
• changing the terminology for the document issued by the department responsible for
investigations, modifications and additions to the provisions regarding the documents
presented for analysis and debate sent to the Regulatory Committee, for establishing and
individualizing the sanction provided by law. Paper documents are sent to the Regulatory
Committee only upon its express request
• changes and additions to the documents presented for analysis and debate to the Regulatory
Committee, including aspects related to the implementation of its decisions.
• clarifications regarding the determination of the turnover and the introduction of clarifications
regarding the method of requesting the necessary information for establishing the sanction.
• changes to the criteria for individualizing the sanction and classifying the facts according to
gravity.
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2024
Primary
legislation:
• Emergency Ordinance no. 32/2024 – effective from April 1, 2024
• modify and supplement GEO no. 27/2022 for the period April 1, 2024 - December 31, 2024,
modifies CEAM, so that DSO buys electricity from OPCOM at the price of 400 lei/MWh, and
producers will voluntarily sell to OPCOM at the price of 400 lei/MWh.
• Emergency Ordinance no. 134/2024 – for the amendment of Energy Law no. 123/2012, and Law
no. 220/2008 for the establishment of the system for the promotion of E-RES production, in force
starting with 26.11.2024
o Storage service operators and storage service providers that provide storage services are
defined
o Storage facility operators are exempt from the payment of transport, system, distribution
services, contribution for CV and cogeneration
o The Ministry of Energy takes over the role of administrator and grantor, for parts of the land-
type buildings belonging to permanent storage lakes, for the development of energy storage
capacities through pumped storage hydroelectric power plants.
• Emergency Ordinance No. 156/2024 on some fiscal-budgetary measures in the field of public
expenditure for the substantiation of the general consolidated budget for 2025, for the
amendment and completion of some normative acts, as well as for the extension of some
deadlines
o The construction tax is calculated by applying a rate of 1% on the value of the existing
constructions in the taxpayers’ patrimony on December 31 of the previous year, from which
the value of the buildings for which the building tax is due according to the provisions of Title
IX is deducted. These provisions also apply to the value of buildings in industrial, scientific
and technological parks which, according to the law, do not benefit from the exemption from
paying the building tax. In the case of constructions of the public/private domain of the state
or of administrative-territorial units, the tax is owed by the taxpayers who have them under
administration/concession/use for free/rent.
2024
Alignment with
the European
legislation - EU
Regulation no.
943/2019:
Electricity market functioning
• ANRE order no. 2/2024 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 – effective from
February 22, 2024
• Taking into account the approval of Order 95/2023 in which aggregation can be done
cumulatively (producers, consumers and owners of storage facilities), the aggregation of
market participants is carried out for production and/or consumption activity;
• OPCOM carries out the provisions of the order and publishes on its website, within 10 days from
the effective date of the order, the updated operational procedures.
• ANRE order no. 8/2024 for the modification of ANRE orders regarding the electricity market –
effective from March 31, 2024
• Extending the term from which the provisions of ANRE Order no. 127/2021, respectively from
April 1, 2024 to June 1, 2024, for the following reasons:
• Modification of the module relating to the settlement of BRP imbalances developed by the
TSO as a result of the modification of the formulas for calculating the single final imbalance
price:
• The complexity of the process of implementing the new functions in the EMS - SCADA system
and the module for activating the automatically activated frequency restoration reserves
using the order of merit – RRFa;
• Application and process testing stage with all entities involved in the BPM activity, in addition,
they must develop software applications necessary for data exchange with the BPM platform,
as well as the training of operators in this regard;
• The very small volume of qualifications for the provision of system services as a number of
participants in the electricity market, with an insufficient volume of reserves.
• Taking into account the request of TSO to waive the deadline for joining the European
balancing platforms for automatically activated frequency restoration reserves (RRFa) in
July and respectively September 2024 for manually activated frequency restoration reserves
( RRFm), the purpose of the draft order is to include provisions for the bidding, selection and
activation processes for the national balancing market (BPM) platform for the transitional
period until the company joins the European platforms;
• It is also necessary to extend its application period from April 1, 2024 to June 1, 2024 and ANRE
Order no. 128/2021, for alignment with the provisions of ANRE Order no. 127/2021.
• ANRE Order no. 9/2024 for the amendment of ANRE Order no. 124/2022 for the approval of the
Rules for the management of congestion through the use on a market basis by the network
operators of the flexibility of the resources in the distribution networks and those in the
transport network, of the Rules applicable to the purchase of reactive electrical energy for
the regulation of the voltage in the steady state of to the transport and system operator
and the Rules applicable to the purchase of reactive electrical energy for voltage regulation
in stationary mode by concessionaire distribution operators and for the modification and
completion of ANRE Order no. 127/2021 for the approval of the Regulation on terms and
conditions for balancing service providers and for frequency stabilization reserve providers
and the Regulation on terms and conditions for parties responsible for balancing - effective
from April 24, 2024
• modification of the term of application of ANRE Order no. 124/2022 from May 1, 2024 to May 1,
2025;
• extending the deadline for submission to ANRE of the operational procedures related to
solving congestion based on the use of flexible resources until April 5, 2025.
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2024
• ANRE order no. 18/2024 for the modification and completion of some orders of the president of
the National Energy Regulatory Authority regarding the electricity market - effective from June
1, 2024
• Amendment of Order 127/2021 for the approval of the Regulation on the terms and conditions
for balancing service providers and for frequency stabilization backup providers and the
Regulation on the terms and conditions for the parties responsible for balancing and for the
amendment and repeal of some ANRE orders.
a. change the order application date from June 1, 2024 to July 1, 2024
b. the extension of the application period for the method of acquiring capacity through market
mechanisms for the frequency stabilization reserve (RSF), from June 1, 2024 to June 1, 2025
• Amendment of Order 128/2021 for the approval of the rules for suspending and restoring market
activities and applicable settlement rules
a. change the order application date from June 1, 2024 to July 1, 2024
• On July 1, 2024, ANRE Order 23/2016 for the approval of the Regulation on the suspension of the
operation of the wholesale electricity market and the applicable commercial rules is repealed
• Order no. 52/17.07.2024 regarding the approval of the Framework Contract between the CfD
Counterparty and the CfD contribution payer for the collection of the CfD contribution and the
Framework Contract between the CfD Scheme Operator and the CfD Counterparty - public
debate phase II
• Annex 1 framework contract between the CfD Counterparty and the contribution payer:
a. the conditions for collecting the CfD contribution;
b. the obligations, respectively the rights of the CfD Counterparty;
c. the obligations of the CfD contribution payer;
d. payment terms.
• Appendix no. 2 framework contract between the CfD Counterparty and the operator of the CfD
scheme:
a. object of the contract;
b. the conditions for collecting the CfD scheme operator’s contribution;
c. obligations and rights of the operator of the CfD scheme;
d. the obligations of the CfD counterparty;
e. payment terms.
• Order no.51/17.07.2024 regarding the approval of the Methodology for determining and
collecting the CfD contribution
• In order to apply the CfD support mechanism for the production of energy through technologies
with low carbon emissions, the necessary funds are constituted by the monthly collection by
the CfD Counterparty of the CfD contribution from: a) electricity suppliers active on the retail
market electricity from Romania; b) electricity producers for the electricity consumed from
their own production at their own places of consumption and for which they owe the tariff
for the distribution/transportation service; c) energy producers for the electricity supplied to
consumers connected to the power plant busbars and for which the tariff for the distribution/
transportation service is due.
• The methodology establishes:
a) the process of determining the CfD contribution that must be collected by the CfD
counterparty, according to the legal provisions;
b) the method of determining the annual costs borne by the CfD Counterparty and the CfD
Scheme Operator for the performance of their administrative tasks;
c) the data collection process necessary for the approval of the CfD contribution;
d) the way to review the CfD contribution.
• ANRE order no. 66/17.09.2024 regarding the approval of the contribution for contracts for the
difference (CfD), enters into force on October 1, 2024.
• The following contributions are approved:
• for contracts for the difference (CfD) in a total amount of 0.000128 lei/kWh, exclusive of VAT.
• related to contracts for the difference — the Operator’s component of the CfD scheme in the
amount of 0.000019 lei/kWh, exclusive of VAT.
• related to contracts for the difference — the CfD counterparty component, in the amount of
0.000109 lei/kWh, exclusive of VAT.
2024
• Order no. 60/28.08.2024 for the modification of ANRE orders regarding the electricity market,
enters into force on October 1, 2024
• The concept of elastic demand is used on the European balancing platform, it can also be used
on periods of operation not connected to the single balancing platform with the application
of local rules. This concept allows TSOs to optimize and reduce energy system balancing
costs by using alternative offers such as specific local balancing products. During the use of
this concept, the TSO communicates the maximum prices it is willing to pay for the selected
balancing energy, this fact being to the benefit of all participants in the electricity market by
reducing balancing costs. Also, the TSO has the obligation to publish the second day after the
day of delivery, in a transparent and non-discriminatory manner, the prices of the offers by type
of reserves, as well as the marginal prices of the balancing energy selected for each settlement
interval.
• The rules applied to power plants in operation for the trial period were modified by changing
the price offered to them for the electricity produced, which is correlated with the price for day
ahead market (DAM) for the respective settlement interval. The test period will be carried out in
a schedule established with the TSO for each producer depending on its power and operating
voltage.
• Also, a provision was approved requiring network operators to send suppliers information, in
good time, regarding the measured values related to their consumption in order to facilitate
the taking of proactive measures in order to balance their portfolios, with application from
January 1, 2025. This provision was adopted in order to improve consumption forecasts, this fact
can lead to a reduction in balancing costs and implicitly in the cost of electricity for the end
customer.
• Draft Order on the approval of the Reference Price Calculation Methodology for the
implementation of the CfD mechanism – public consultation.
• Determination of the reference price: The reference price is calculated monthly by ANRE and
is approved by ANRE Decision. The methodology establishes the method for determining the
reference price, the process for collecting the necessary data and the revision of the reference
price.
• Scope: The methodology is used by: ANRE, Transelectrica, OPCOM, DAM operators and CfD
beneficiaries for onshore wind and solar photovoltaic technologies.
• Data collection process: DAM operators submit to ANRE the necessary data within 3 working
days of the month following the billing period. OMEPA submits to ANRE and OPCOM the quantity
of electricity delivered to the SEN by the CfD electricity production capacity for each Settlement
Interval.
• Reference price analysis: ANRE annually analyses reference prices in relation to market prices
to identify possible situations of overcompensation or undercompensation. If the existence of
an overcompensation situation is confirmed, ANRE notifies the Ministry of Energy on the need to
modify the method of determining the reference price
Source: Electrica
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a. Primary legislation:
• 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:
• 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
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).
• 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 50,000 MWh or less and for thermal energy producers;
• customers connected after 1 January 2022 will be invoiced 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
provided for 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 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 monthly energy
value delivered to the final customers in the portfolio, which exceeds this threshold will not be recognized and
settled; the purchase made for the last resort supply does not have the cost of balancing limited to 5%; the
obligation appears to constitute in the period 1 April - 31 October 2022 storage deposits of at least 30% of the
quantity of natural gas required for the consumption of the final customers in the portfolio.
• 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 limitation of the
cost with imbalances to 5% of the purchase cost) - for the recovery to be at a high level it is necessary to invoice
all consumption, including FUI, by the beginning of May.
• the supplier is obliged to notify customers about 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 100 thousand and 400 thousand lei).
• Fines: between 1-5% of the turnover for non-compliance with the ceiling and cost limits; between 20 thousand
and 400 thousand lei for non-compliance with the provisions for supply in last resort; between 100 thousand and
400 thousand lei if we do not inform final customers, if we do not keep differentiated/segmented monthly records
of customers, if we do not identify customers in order to apply the ceilings or if we do not submit the documents
requested by ANRE.
• Law No 206/2022 approving Government Emergency Ordinance No 27/2022 on measures applicable to final
customers in the electricity and natural gas market between 1 April 2022 and 31 March 2023, and amending and
supplementing certain regulatory acts in the field of energyi
A.3.1.2. Supply activity
2024
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, will be invoiced the minimum between the price in the
current supply contract and the final price resulting from the application of the GEO.
• final customers of natural gas are charged the minimum between the price in the contract, the capped final price
and the price resulting from the application of the GEO.
• GEO no. 119/2022 - Emergency Ordinance amending and supplementing Government Emergency Ordinance no.
27/2022 on measures applicable to end customers in the electricity and natural gas market for the period from 1
April 2022 to 31 March 2023, and 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 electricity bill price 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 that is maximum 255 kWh;
maximum 1 leu/kWh (VAT included) for 85% of the average monthly consumption at the place of consumption in
2021, in the case of 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 educational establishments, crèches,
public and private social service providers. In order to benefit from the facilities provided for by this GEO as from
1 September 2022, the above-mentioned non-household customers are required to submit to their electricity
supplier an application accompanied by an affidavit within a maximum of 30 days from the date of entry into
force of this GEO. Beneficiaries covered by the provisions of the GEO who have not submitted an application
accompanied by an affidavit in September 2022, as well as those established after 1 September 2022, shall benefit
from the provisions of this GEO as of the 1st of the month following their submission to the supplier.
• the capped final invoiced price for natural gas is: maximum 0.31 lei/kWh (VAT included) for household customers
(also applies to household customers’ consumption points connected as of 1 January 2022 or for household
customers who have no history in 2021 with the supplier, 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 point is 50 or less. 000 MWh, as well as in the case of heat producers (also applies to consumption
sites of non-household customers connected as of 1 January 2022);
• the amounts and tranches provided for the capping scheme may be modified by Government decision, depending
on developments on the domestic and international electricity and natural gas markets and on 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 compensation amounts for each supplier are 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-household
customers) respectively, and copied 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;
• as from 1 September 2022, during the period of application of the provisions of this Emergency Ordinance,
electricity producers, 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 in accordance with 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 clear aim of increasing the price, is sanctioned by ANRE with a fine of 5% of turnover;
• GEO No 153/2022 - Emergency Ordinance amending and supplementing Government Emergency Ordinance
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 and amending Government Emergency Ordinance No 119/2022 amending and supplementing Government
Emergency Ordinance No 27/2022 on measures applicable to final customers in the electricity and natural gas
2024
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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.
• for the period from 1 January 2023 to 31 March 2025, the mechanism for centralised purchasing of electricity shall
be established
• The mechanism provides - OPCOM, as the single buyer, buys electricity from generators (electricity generators
with an installed capacity of 10 MW or more) and sells the purchased electricity to electricity suppliers with
contracts with final customers, the electricity transmission system operator 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 procurement
procedure and an additional procurement 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 for electricity
producers and economic operators and are distributed evenly over all the settlement intervals of each month
(contracts are concluded by signature within a maximum of 3 working days).
• Law no. 357/2022 - Law on the approval of Government Emergency Ordinance no. 119/2022 on the amendment and
completion of Government Emergency Ordinance no. 27/2022 on measures applicable to end customers in the
electricity and natural gas market for the period from 1 April 2022 to 31 March 2023, and on the amendment and
completion of certain energy-related regulations.
• GEO No. 119/2022 is approved to amend and supplement GEO No. 27/2022 with some modifications; the electricity
price cap is extended until 31 March 2025;
• the capped final invoiced price of electricity supplied to household customers in the period from 1 January 2023 to
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) domestic customers whose monthly consumption is between 0 and 100kWh
inclusive; b) domestic customers who use medical devices, appliances or equipment necessary for treatment,
on the basis of an application and a declaration on their own responsibility submitted in writing to Electrica
Furnizare S.A., c) household customers who have at least 3 dependent children up to the age of 18, or 26 if
they are in education, on the basis of an application and a declaration on their own responsibility submitted
in writing to Electrica Furnizare S.A., and the final invoiced price shall apply from the first day of the month
following the month in which the said documents were submitted, d) single-parent household customers who
have at least one dependent child aged up to 18 years, or 26 years if the child is in education, on the basis of an
application and a declaration on their own responsibility submitted in writing to Electrica Furnizare S.A., and the
final invoiced price shall apply from the first day of the month following the month in which the said 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 billed at 1.3 lei/kWh including VAT.
• 1.3 lei/kWh, VAT included, for household consumers not covered above.
• the electricity price caps for 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 food industry sector, identified by
CAEN code 10, and those in the agriculture and fisheries sector, 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 educational
establishments, crèches and public and private providers of social services listed in the social services
nomenclature;
• maximum 1 leu/kWh, VAT included, for 85% of the monthly consumption at the place of consumption of public
institutions other than those referred to above, as well as for places of consumption belonging to officially
2024
recognised religions 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 far as the price of natural gas to non-household customers is concerned, 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 2021); for consumption
places of non-household customers connected after 1 January 2022, the cap applies 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 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 measures applicable to end customers in the electricity and natural gas market for the period from 1
April 2022 to 31 March 2023, and amending and supplementing certain regulatory acts in the field of energy
• the final invoiced price for electricity of maximum 0,68 lei/kWh shall be applied to household customers whose
place of consumption is occupied 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, an affidavit shall
be submitted; the capped final invoiced price shall be applied from the first day of the month following the month
in which the documents referred to above were submitted;
• the capping also applies to places of consumption used under a rental contract, the following documents shall 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.
• GEO no. 32/2024 - Emergency Ordinance amending and supplementing Government Emergency Ordinance no.
27/2022 on measures applicable to final customers in the electricity and natural gas market for the period 1 April
2022-31 March 2023, as well as amending and supplementing certain regulatory acts in the field of energy and
adopting certain measures in the field of energy.
The main changes are:
• the supply component: for electricity it remains unchanged, for natural gas it increases to 15 lei/MWh from 1 April
2024 for both FUI and non-FUI (price caps remain unchanged) ;
• from 1 April 2024 the rule of paying 40% of the ceiling amount within 10 days of the date of submission no longer
applies. There will be 10 days for the whole amount from the date ANRE confirms to ME/ANPIS the correctness of
the data, „within the limit of the amounts available in the Energy Transition Fund and other legally constituted
amounts” ;
• deadlines are specified for entering the settlement data into the ANRE platform:
• 30 July 2024 for the period September 2022 to August 2023
• 31 December 2024 for the period September 2023 - August 2024
• 30 July 2025 for the period September 2024 - March 2025
• from 1 April 2024 the price at which natural gas producers carrying out both onshore and/or offshore extraction
activities and natural gas sales activities decrease from 150 lei/MWh to 120 lei/MWh;
• from 1 April 2025 to 31 March 2026, suppliers can only draw up offers for final customers if the purchase covers at
least 50% of their consumption needs;
• suppliers will receive guarantees of origin for the quantity contracted through the MACEE;
• increases to 10% the percentage for profit accepted for over-taxation of trading activity
• the price of the MACEE is modified as from 1 April 2024: it decreases from 450 lei/MWh to 400 lei/MWh. At the same
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time, generators can voluntarily sell on the MACEE from 1 April 2024;
• the limit of the average purchase price accepted for the settlement of the capped amounts is lowered to 700 lei/
MWh for consumption after 1 April 2024.
• GEO no. 31/2024 - Emergency Ordinance on the regulation of certain fiscal-budgetary measures and on the
amendment and completion of certain normative acts - the provisions of Law no. 227/2015 on the Fiscal Code are
amended with regard to Article181 on the minimum tax, as follows:
• Art.181, para. (14) shall read as follows: „This article shall not apply to economic operators regulated/licensed by
the National Energy Regulatory Authority who, in the previous year, have obtained revenues from the distribution/
supply/transport of electricity and natural gas in a proportion of more than 95% of the total revenues from which
the revenues included in the Vs indicator referred to in paragraph (1) are deducted. (3) lit. (i) to (vii).”
• Art.183, para. (11) is worded as follows: „Taxpayers regulated/licensed by the National Energy Regulatory Authority
who, in the previous year, have obtained revenues from distribution/supply/transport of electricity and natural
gas activities in a proportion exceeding 95% of the total revenues minus the revenues included in the Vs indicator
referred to in paragraph (i) and (ii) of Article 183(1), shall be deemed to have obtained the following revenues. (2)
lit. (i) to (vii) shall not be subject to this Article.”
• HG no. 318/2024 - Decision on the approval of the general framework for the implementation and operation of the
support mechanism through contracts for difference for low carbon technologies:
• establishes the general framework regulating the implementation and operation of the support mechanism
through contracts for difference for the production of electricity using low-carbon technologies.
• Eligible generation technology - electricity generation technology that utilizes: onshore wind resources, offshore
wind resources, solar photovoltaic resources, hydro resources, nuclear resources, hydrogen and energy storage.
For the technologies specified above, the relevant Ministry shall develop CfD State aid schemes or grant ad hoc
CfD State aid, which shall be subject to European Commission authorization, and the timing of any CfD tender
associated with a State aid scheme shall be subject to authorization.
• The CfD contract related to the CfD scheme for onshore wind and solar photovoltaic technologies is set out in the
Annex to this decision.
• Order ME No. 373/2024 - Order of the Minister of Energy on the approval of the methodology for assessing
compliance with the „Do no significant harm” (DNSH) principle
• the methodology aimed at ensuring compliance with the „Do no significant harm” (DNSH) and „climate change
immunization” principles for the measure on economic activities for which support in the form of green financial
instruments dedicated to energy efficiency improvement measures in industry is requested is approved.
• Order ME no. 336/2024 - Order of the Minister of Energy for the approval of the state aid scheme aimed at supporting
investments in the industrial value chain of production and/or assembly and recycling of photovoltaic batteries, cells
and panels
• the State aid scheme for investment measure I.4, sub-measures 4.1 and 4.2, under C.6 Energy - Pillar I. Green
Transition of Romania’s National Recovery and Resilience Plan, updated in accordance with European Commission
Decision C(2024) 1.380 final of 29.02.2024 regarding State Aid Scheme SA 110458 (2023/N) - Romania -
Amendments to State Aid Scheme SA.102924 for supporting investments in the industrial value chain of production
and/or assembly and recycling of photovoltaic batteries, cells and panels.
• the scheme shall apply from the date of publication in the Official Gazette of Romania, Part I, until the allocated
budget is exhausted, but no later than the end of the second quarter of 2026. The total estimated budget of the
scheme is the equivalent of EUR 258.7 mil.
• Order ME no. 353/2024 - Order of the Minister of Energy for the approval of the State Aid Scheme for the support
of investments in new capacities for the production of electricity from renewable energy sources, related to the
Modernization Fund
• the State aid scheme to support investments in new capacities for the production of electricity from renewable
energy sources, related to the Modernization Fund, is approved. The scheme based on competitive bidding
procedure is applicable for projects aiming at: realization of new capacities of electricity production from wind
energy sources, realization of new capacities of electricity production from solar energy sources (under 5 MW and
over 5 MW), realization of new capacities of electricity production from hydro energy sources. The scheme applies
only to new installations for the production of electricity from renewable energy sources, without the financing of
2024
energy storage capacity.
• Order ME No 354/2024 - Order of the Minister of Energy for the approval of the Specific Guide - Support for
investments in new capacities for the production of electricity from renewable energy sources, related to the
Modernization Fund.
- the Specific Guide - Support for investments in new capacities for the production of electricity from renewable
energy sources, related to the Modernization Fund is approved.
• Law no. 113/2024 - Law on the approval of Government Ordinance no. 3/2023 amending and supplementing
Government Emergency Ordinance no. 166/2022 on some measures for granting support to vulnerable categories
of persons for the compensation of energy prices, partly supported by non-reimbursable external funds.
- GEO No 3 of 11 January 2023 is approved to amend and supplement GEO No 166/2022;
• Law No 121/2024 - Law on Offshore Wind Energy.
- regulates the general framework necessary for the implementation in Romania of offshore wind energy projects.
The implementation of the projects shall be carried out in compliance with the principle of non-discrimination, under
conditions of fair competition, and in compliance with the principle of integrated pollution prevention and control by
using the best available techniques for activities with significant environmental impact.
• Law no. 135/2024 - Law on the approval of the Government Emergency Ordinance no. 75/2023 for the amendment
and completion of the Government Emergency Ordinance no. 166/2022 on some measures for granting support to
vulnerable categories of persons for the compensation of energy prices, partially supported by non-reimbursable
external funds.
- GEO no. 75/2023 is approved for amending and supplementing GEO no. 166/2022.
• Order ME no. 573/2024 - Order of the Minister of Energy for the re-establishment of the State Aid Scheme aimed
at supporting investments in the construction of capacities for the production of green hydrogen in electrolysis
plants.
- the re-establishment of the State aid scheme aimed at supporting investments in the construction of capacities
for the production of green hydrogen in electrolysis plants, related to investment measure I.2 - Capacities for the
production of green hydrogen to be used for electricity storage and for the decarbonization of industry under
Component 6 - Energy, Pillar I - Green Transition of the National Recovery and Resilience Plan of Romania, is approved,
subject to the suspensive condition of approval of its re-establishment by decision of the European Commission.
- The re-establishment of the State aid scheme establishes its validity until December 31, 2024.
• GEO no. 68/2024 - Emergency Ordinance amending and supplementing Government Emergency Ordinance no.
166/2022 on some measures for granting support to vulnerable categories of persons to compensate the price of
energy, partially supported by non-reimbursable external funds.
- establishing measures for the granting of temporary support for the year 2023 to vulnerable categories of persons
to compensate the price of energy of whatever nature, namely electricity, centrally supplied heating energy, gas,
gas cylinders, butane, firewood, sawdust, coal, fuel oil, pellets, briquettes, liquid or solid fuels and any other heating
materials that can be used for heating homes as well as temporary support for the year 2024 to compensate, as from
31 December 2024, the cost of purchasing and installing heat cost-sharing systems in condominiums connected to the
centralized heat supply system or equipped with their own local heat energy production source.
• Law No 204/2024 - Law for the approval of Government Emergency Ordinance No 31/2024 on the regulation of
some fiscal-budgetary measures and for the amendment and completion of some normative acts.
- GEO no. 31/2024 on the regulation of some fiscal-budgetary measures and for the amendment and completion of
some normative acts is approved.
• Law no. 217/2024 - Law for the approval of Government Emergency Ordinance no. 119/2023 on the regulation of
standards for green financial instruments dedicated to support measures to improve energy efficiency in industry,
and for the amendment of Law no. 121/2014 on energy efficiency.
• GEO no. 119/2023 is approved on the regulation of standards for green financial instruments dedicated to support
measures to improve energy efficiency in industry, as well as for the amendment of Law no. 121/2014 on energy
efficiency.
• the following definitions are amended: ‚financial instrument - a form of financial support, such as loans,
guarantees and counter-guarantees, equity inflows, quasi-equity or mezzanine investments, for operators in
industry to improve energy efficiency’;
• „the „Do no significant harm” principle, hereinafter referred to as DNSH - the principle regulated by Article 17 of
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Regulation (EU) 2020/852, applied for all green financial instruments dedicated to support energy efficiency
improvement measures in industry, financed from public funds, both from the European Union budget and the
state budget.”
• Order ME no. 1.120/2024 - Order of the Minister of Energy on the approval of the State aid scheme in the form of
contracts for the difference for the production of electricity from renewable sources of onshore wind and solar
photovoltaic energy:
- approves the State Aid Scheme in the form of Contracts for Difference for the production of electricity from
renewable onshore wind and solar photovoltaic energy sources - establishes the manner in which State aid will be
granted through Contracts for Difference (CfD contracts), based on the European Commission’s State Aid Authorization
Decision C(2024) 1.596 final of 6.03.2024;
- the State aid scheme aims to conclude CfD contracts until December 31, 2025 for projects with a total capacity of
5,000 MW, using eligible onshore solar photovoltaic and wind onshore technologies.
• Order ME no. 1.290/2024 - Order of the Minister of Energy on the approval of the initiation of the first tender for the
State aid scheme in the form of contracts for the difference for the production of electricity from renewable sources
of onshore wind and solar photovoltaic energy, as well as the rules of the tender procedure for the first tender:
- the general framework entitled „Initiation of the first tender procedure for the State aid scheme in the form of
contracts for the production of electricity from renewable onshore wind and solar photovoltaic energy sources” is
approved;
- the rules of the tender procedure for the first tender for the State aid scheme in the form of contracts for the
difference for the production of electricity from renewable sources of onshore wind and solar photovoltaic energy.
• Order ME no. 1.355/2024 - Order of the Minister of Energy for the approval of the State Aid Scheme for supporting
investments in the development of electricity storage capacities (batteries) with financing from the Modernization
Fund
- The State aid scheme on supporting investments in the development of electricity storage capacities (batteries) with
financing from the Modernization Fund is approved;
- duration of application: October 01, 2024 - December 31, 2027;
- purpose: to support investments in the development of electricity storage capacities (batteries) in order to increase
the adequacy, flexibility and efficiency of the National Electricity System and to reduce greenhouse gas emissions;
• Order ME no. 1. 440/2024 - Order of the Minister of Energy on the approval of the minimis aid scheme provided
under the „ELECTRIC UP” Program on the financing of small and medium-sized enterprises and economic operators
operating in the HORECA sector for the installation of photovoltaic panel systems for the production of electricity
with an installed power between 27 kWp and 150 kWp required for own consumption, a system for storing the energy
produced to increase the degree of self-consumption, at least one recharging station of at least 22 kW for electric
and plug-in hybrid electric vehicles in order to reduce greenhouse gas emissions in transportation, by promoting
infrastructure for energy-neutral road transport vehicles, as well as alternative heating/cooling system to increase
the use of energy produced from renewable sources in heating and cooling.
• Order ME no. 1. 441/2024 - Order of the Minister of Energy on the approval of the Financing Guide for the „ELECTRIC
UP” Program on the financing of small and medium-sized enterprises and economic operators operating in the
HORECA sector for the installation of photovoltaic panel systems for the production of electricity with an installed
power between 27 kWp and 150 kWp required for own consumption, a system for the storage of energy produced to
increase the degree of self-consumption, at least one recharging station of at least 22 kW for electric and plug-in
hybrid electric vehicles in order to reduce greenhouse gas emissions in transport, by promoting infrastructure for
energy-neutral road transport vehicles, as well as alternative heating/cooling system to increase the use of energy
produced from renewable sources in heating and cooling.
• Law no. 261/2024 - Law on the approval of the Government Emergency Ordinance no. 39/2024 for the amendment
2024
and completion of the Government Emergency Ordinance no. 159/2020 on the financing of small and medium
enterprises and HORECA sector for the installation of photovoltaic panel systems for the production of electricity with
an installed power between 27 kWp and 100 kWp necessary for own consumption and delivery of the surplus in the
National Energy System, as well as of recharging stations of minimum 22 kW for electric and plug-in hybrid electric
vehicles, through the „ELECTRIC UP” financing program.
• Order ME no. 1. 552/2024 - Order of the Minister of Energy on the completion of the Financing Guide for the „ELECTRIC
UP” Program on the financing of small and medium-sized enterprises and economic operators operating in the
HORECA sector for the installation of photovoltaic panel systems for the production of electricity with an installed
power between 27 kWp and 150 kWp required for own consumption, a system for storing the energy produced
to increase the degree of self-consumption, at least one recharging station of at least 22 kW for electric and
plug-in hybrid electric vehicles in order to reduce greenhouse gas emissions in transportation, by promoting the
infrastructure for energy-neutral road transport vehicles, as well as the alternative heating/cooling system for
increasing the use of energy produced from renewable sources in heating and cooling, approved by Order of the
Minister of Energy no. 1.441/2024.
• Order ME no. 1.583/2024 - Order of the Minister of Energy regarding the completion of the Applicant’s Guide - Specific
conditions for accessing financing from the Modernization Fund - Support for investments in new capacities for the
production of electricity from renewable energy sources for self-consumption for public entities, approved by Order
of the Minister of Energy no. 1.431/2023.
• ME Order no. 1.626/2024 - Order of the Minister of Energy on the approval of the Applicant’s Guide for supporting
investments in the development of electricity storage capacities (batteries) with financing from the Modernization
Fund
-The Applicant’s Guide on supporting investments in the development of electric energy storage capacities (batteries)
with financing from the Modernization Fund is approved.
-The Applicant’s Guide shall enter into force on the date of publication of the Order in the Official Gazette of Romania,
Part I - November 13, 2024 (The Applicant’s Guide shall produce legal effects subject to the suspensive condition of
the approval of the European Commission’s Payment Decision pursuant to Commission Implementing Regulation (EU)
2020/1.001 of 9 July 2020 laying down detailed rules for the implementation of Directive 2003/87/EC of the European
Parliament and of the Council as regards the operation of the Modernization Fund supporting investments in the
modernization of energy systems and the improvement of energy efficiency in certain Member States).
• Order ME no. 1. 636/2024 - Order of the Minister of Energy on the amendment of the Financing Guide for the „ELECTRIC
UP” Program on the financing of small and medium-sized enterprises and economic operators operating in the
HORECA sector for the installation of photovoltaic panel systems for the production of electricity with an installed
power between 27 kWp and 150 kWp required for own consumption, a system for the storage of energy produced
to increase the degree of self-consumption, at least one recharging station of at least 22 kW for electric and
plug-in hybrid electric vehicles in order to reduce greenhouse gas emissions in transportation, by promoting the
infrastructure for energy-neutral road transport vehicles, as well as the alternative heating/cooling system for
increasing the use of energy produced from renewable sources in heating and cooling, approved by Order of the
Minister of Energy no. 1.441/2024.
Article 8(3)(b) and (d) is amended as follows: „ b) The registration session shall be held from October 14, 2024 at 8:00
a.m. until December 16, 2024 at 11:59:59 p.m.; d) The project submission session shall be held from November 15, 2024 at
10:00 a.m. until December 16, 2024 at 11:59:59 p.m.;”
• OUG no. 134/2024 - Emergency Ordinance amending and supplementing the Law on Electricity and Natural Gas no.
123/2012, as well as amending Article 2 lit. i) and k) of Law no. 220/2008 for the establishment of the system for the
promotion of energy production from renewable energy sources
Electricity and Natural Gas Law No. 123/2012, is supplemented with the following definitions: storage service provider,
works of national interest and public utility, storage service operator, projects of national importance in the field of
electricity, CHEAP pumped storage scheme, storage service, energy storage.
By storing electricity in electricity storage facilities, including in the case of pumped storage operation of a CHEAP, the
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operator of storage facilities is exempted from payment of: tariff for transmission service - component of electricity
extraction from the grid, system service, distribution service, green certificates contribution and cogeneration
contribution.
• OUG no. 138/2024 - Emergency Ordinance on amending and supplementing some normative acts in the fiscal-
budgetary field, as well as for regulating other measures
-complements regarding the national system on electronic invoicing RO e-Invoice and electronic invoicing in
Romania.
• Decision no. 1491/2024 - Decision for the approval of Romania’s Energy Strategy 2025-2035, with a 2050
perspective
-The Energy Strategy of Romania 2025-2035, with the perspective of 2050 is approved - the financing necessary for
the fulfillment of the objectives/actions and measures provided within the Strategy is realized within the limits of the
approved annual budgets of the authorities/public institutions involved, as well as from other legally constituted
sources.
• Law no. 312/2024 - Law for the approval of Government Emergency Ordinance no. 54/2024 on the amendment of
Article VII1 of Government Emergency Ordinance no. 119/2022 for the amendment and completion of Government
Emergency Ordinance no. 27/2022 on the measures applicable to end customers in the electricity and natural gas
market in the period April 1, 2022 - March 31, 2023, and for the amendment and completion of some normative acts
in the energy sector:
-the Law on Electricity and Natural Gas No. 123/2012 is amended: the collection of the CfD contribution by electricity
suppliers, respectively by electricity producers with complementary right of supply, in the bills of final consumers, shall
be made starting with April 1, 2025;
-bills containing the CfD contribution for the period between October 1, 2024 and until the date of entry into force of the
law shall be canceled and re-invoiced without including the CfD contribution
• Law no. 316/2024 - Law on the approval of the Government Emergency Ordinance no. 32/2024 for the amendment
and completion of the Government Emergency Ordinance no. 27/2022 on the measures applicable to end
customers in the electricity and natural gas market in the period April 1, 2022 - March 31, 2023, as well as for the
amendment and completion of some normative acts in the energy field and the adoption of some measures in the
energy field:
-the procedure for regularization of the volumes of electricity/natural gas for which we have requested the settlement
was introduced, i.e. until March 31, 2026, the regularization of the amounts settled from the state budget to the
electricity and natural gas suppliers will be carried out, after the transmission to ANRE, for each month of the period
and for each category of customers beneficiaries of the final capped price, of the information on the quantities of
energy invoiced for the months of consumption in the period of application, following the occurrence of changes in the
amounts already settled from the state budget;
-the final deadline for entering the data necessary to settle the amounts from the state budget or, as the case may be,
to regularize the amounts settled from the state budget is:
-for the period April-August 2022 is January 31, 2025;
-for the period September 2022-August 2023 is January 31, 2025;
-for the period September 2023-August 2024 is July 31, 2025;
-for the period from September 2024 to March 2025 is December 31, 2025;
-The payment deadline for reimbursement requests validated by ANRE for consumption recorded after April 1, 2024,
has been removed (the payment deadline was 10 days from the date ANRE transmitted the validated payment amount
to ME/ANPIS).
2024
b.Secondary legislation:
• ANRE Order no. 1/2024 - Order approving the Methodology for determining the level of the minimum stock of
natural gas required to be built up in underground storage facilities during the period 1 April 2024 - 31 October
2024.
- The methodology is approved, the purpose of which is to establish the method for determining the level of the
minimum stock of natural gas that the holders of the natural gas supply license are obliged to build up in underground
storage facilities during the period from 1 April 2024 to 31 October 2024;
- natural gas supply license holders shall fulfil their obligation to build up the minimum stock of natural gas by: storing
natural gas on their own account by concluding storage contracts; concluding sale-purchase contracts relating to
quantities of natural gas stored by another supplier; concluding agency contracts with another supplier;
- the quantities of natural gas representing the minimum stock to be stored represent 90% of the national storage
capacity of the SI. The minimum natural gas stocks of the holders of supply licenses shall be broken down for each
holder according to the share of the quantity of natural gas sold to final customers by the respective supplier in the
gas year 2022/2023 in the total quantities of natural gas sold to final customers at national level.
• ANRE Order no. 2/2024 - Order amending and supplementing the Regulation on the organized framework for
trading on the organized forward electricity markets administered by OPCOM - S.A., approved by Order no. 12/2023
of the President of the National Energy Regulatory Authority.
- The main amendments/completions to the Regulation on the organized framework for trading on the organized
forward electricity markets administered by OPCOM are:
- in the case of aggregated participation, the aggregator shall communicate to the PO the list of aggregated
participants and the PO shall include it, as an annex, in the Participation Agreement for bilateral electricity contract
markets;
the party terminating a contract concluded on PCCB-LE-flex shall notify 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. 4/2024 - Order on the establishment of the mandatory quota for the purchase of green certificates
for the year 2023.
- the mandatory quota for the purchase of green certificates by economic operators who are obliged to purchase
green certificates for 2023 is set at 0.4946974 green certificates/MWh (compared to 0.4943963 CV/MWh estimated
quota for 2023 and 0.4934314 CV/MWh mandatory quota for 2022);
- enters into force on 1 March 2024.
• ANRE Order no. 6/2024 - Order amending and supplementing the Regulation on the supply of electricity to
final customers, approved by Order of the President of the National Energy Regulatory Authority no. 5/2023, and
amending the Regulation on the supply of natural gas to final customers, approved by Order of the President of the
National Energy Regulatory Authority no. 29/2016.
- the provisions of Chapter I of GEO 120/2021 and those of Law 296/2023 on electronic invoicing RO e-Invoice and
e-Invoice in Romania are harmonized with the provisions of RFEE and RFGN;
- the structure of the elements to be included in the invoice has been modified in order to correlate with the fields
available in the electronic system RO e-Invoice (some of the minimum priority information will be included by the
supplier in the invoice, and others may also be included in the invoice annex, which represent the invoicing details,
any outstanding payment obligations and penalty interest for late payment of the invoice will be highlighted as
information);
- the provisions on the method of invoice transmission for customers for whom the obligation to transmit the
invoice via the national electronic invoicing system applies (mainly non-households) have been amended, with the
introduction of the provision that, in their case, the invoice and the documents attached to it are transmitted by the
supplier via the electronic invoicing system;
- the provision that, at the request of the final customer, the supplier is obliged to send a copy of the invoice has been
reworded and remains applicable only to customers who are not subject to the obligation to send their invoices via the
national e-invoicing system (predominantly domestic);
• natural/legal persons (generators, non-concessionary distribution operators, not holding a supply license) are
obliged to publish on their website universal service offers applicable to household customers supplied directly
from the electricity installations of the generating units/electricity networks they operate or located in the vicinity
of these networks and to transmit the universal service offer to household customers who request this offer, by one
of the communication channels mail, e-mail, portal, according to the customer’s choice.
• ANRE Order no. 8/2024 - Order amending some orders of the President of the National Energy Regulatory Authority
on the electricity market.
• the provisions of ANRE Orders No 128/2021 and No 127/2021 (Order approving the Regulation on terms and
2024
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conditions for balancing service providers and frequency stabilization reserve providers and the Regulation on
terms and conditions for balancing parties and amending and repealing certain orders of the President of the
National Energy Regulatory Authority) will apply from 1 June 2024;
• ANRE Order no. 9/2024 - Order amending the Order of the President of the National Energy Regulatory Authority
no. 124/2022 on the approval of the Rules for congestion management through the market-based use by network
operators of the flexibility of distribution network resources and transmission network resources, 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 the concessionary distribution operators and on the amendment and completion of the
Order of the President of the National Energy Regulatory Authority no. 127/2021 approving the Regulation on terms
and conditions for balancing service providers and frequency stabilization reserve providers and the Regulation
on terms and conditions for balancing parties and amending and repealing some orders of the President of the
National Energy Regulatory Authority.
• -the provisions of Article 6 of ANRE Order no. 124/2022 are amended to the effect that the National Electricity
Transmission Company Transelectrica - S.A., Retele Electrice Muntenia - S.A., Retele Electrice Dobrogea - S.A. and
Retele Electrice Banat - S.A., Distributie Energie Electrica Romania - S.A., Distributie Energie Oltenia - S.A. and Delgaz
Grid - S.A. shall draw up their own operational procedures for implementing the provisions of Annex No 1 by 5 April
2025.
• -Article 8(2) of ANRE Order No 124/2022 shall be amended to the effect that the provisions of Articles 1, 3 and 4 shall
enter into force on the date of publication and shall apply from 1 May 2025 (they shall no longer apply from 1 May
2024, i.e. application shall be postponed for one year).
• ANRE Order no. 15/2024 - Order on the approval of the tariff for the purchase of system services for the
transmission and system operator Compania Nationala de Transport de Energiei Electrice „Transelectrica” - S.A.
• - approves the tariff for the purchase of system services, practiced by the National Company for the Transmission
of Electricity „Transelectrica” - S.A. at the amount of 12.84 lei/MWh (VAT not included).
• - It enters into force on June 1, 2024.
• ANRE Order no. 18/2024 - Order amending and supplementing some orders of the President of the National Energy
Regulatory Authority regarding the electricity market
• - amending and supplementing ANRE Order no. 127/2021 for the approval of the Regulation on the terms and
conditions for balancing service providers and frequency stabilization reserve providers and the Regulation on the
terms and conditions for balancing parties.
• - in the period from June 1, 2024 to August 31, 2024, the purchase of balancing capacity services for frequency
stability contracted by the transmission and system operator shall be carried out at a maximum price of 82.30 lei/
hMW for the secondary regulation reserve/frequency restoration reserve with automatic activation activated on
increase and for the activated on reduction, at a maximum price of 37,94 lei/hMW for the fast tertiary regulating
reserve/frequency restoration reserve with manual activation activated on increase and at a maximum price of
16,38 lei/hMW for the reserve activated on reduction.
• - ANRE Order no. 128/2021 is amended to approve the rules for suspension and restoration of market activities and
the applicable settlement rules.
• - enters into force on June 1, 2024.
• ANRE Order no. 14/2024 - Order on the approval of the Procedure for the confirmation of the right to participate in
the electricity/natural gas markets in Romania of foreign legal entities having their registered office in a Member
State of the European Union.
• - the Procedure for confirming the right to participate in the electricity/natural gas markets in Romania of foreign
legal entities having their registered office in a Member State of the European Union is hereby approved.
- In relation to foreign legal entities, which have obtained from ANRE the confirmation of the right to participate
- natural/legal persons (generators, non-concessionary distribution operators, not holding a supply license) are
obliged to publish on their website universal service offers applicable to household customers supplied directly from
the electricity installations of the generating units/electricity networks they operate or located in the vicinity of these
networks and to transmit the universal service offer to household customers who request this offer, by one of the
communication channels mail, e-mail, portal, according to the customer’s choice.
• ANRE Order No. 17/2024 — Order regarding the approval of the regulated revenue, the corrected regulated revenue,
and the transportation tariffs for the activity of natural gas transportation through the National Transmission
System.
-The regulated revenue and the corrected regulated revenue for the regulatory year from October 1, 2024, to
September 30, 2025, are approved for the natural gas transportation activity carried out by the National Natural Gas
Transmission Company TRANSGAZ S.A.
2024
-It enters into force on June 1, 2024.
ANRE Order no. 19/2024 - Order on the approval of the reference price of electricity produced in high efficiency
cogeneration, which benefits from the bonus.
- The reference price of 353.39 lei/MWh, excluding VAT, for electricity produced in high-efficiency cogeneration in the
period July 1 - October 31, 2024 is approved, which will be used in the overcompensation analysis of the activity for
the year 2024 for producers of electricity and heat in cogeneration that benefit from the high-efficiency cogeneration
bonus.
- It enters into force on July 1, 2024.
• ANRE Order no. 22/2024 - Order on the approval of the regulated tariff for electricity exchanges with perimeter
countries, practiced by the National Company for the Transmission of Electricity „Transelectrica” - S.A.
- the regulated tariff for electricity exchanges with perimeter countries of 2,8 euro/MWh, excluding VAT, applied by
the National Electricity Transmission Company „Transelectrica” - S.A., for all import, export and transit transactions of
electricity, scheduled with the electro-energy systems of the perimeter countries, is approved.
- shall enter into force on July 1, 2024.
• ANRE Order no. 48/2024 - 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 regarding its
invoicing.
- the contribution for high-efficiency cogeneration is approved at the value of 0.0094 lei/kWh, excluding VAT (down by
44% compared to the previous value of 0.0168 lei/kWh applied from 01.01.2024).
- It enters into force on July 1, 2024.
• ANRE Orders no. 24/2024 - 47/2024 - Order for the approval of regulated tariffs for the provision of natural gas
distribution service.
- they shall apply to customers of the natural gas distribution service in the localities for which the Company holds the
natural gas distribution license as of 1 July 2024.
• ANRE Order no. 50/2024 - Order regarding the approval of the Methodology for establishing the maximum price for
the purchase by the transmission system operator of the system service for voltage regulation in the transmission
grid
- the Methodology for establishing the maximum price for the purchase by the transmission system operator of the
system service for voltage regulation in the transmission grid is approved. The TSO shall procure the system service
for voltage regulation in the TSO through transparent, non-discriminatory and market-based procedures from any
market participant, including market participants offering energy from renewable sources, market participants
offering dispatchable consumption services, operators of energy storage facilities and market participants engaged in
aggregation.
• ANRE Order no. 52/2024 - Order on the approval of the Framework Contract between the CfD counterparty and the
CfD contribution payer for the collection of the CfD contribution and of the Framework Contract between the CfD
scheme operator and the CfD counterparty
- the Framework Contract between the CfD Counterparty and the CfD Contribution Payer for the collection of the
CfD Contribution and the Framework Contract between the CfD Scheme Operator and the CfD Counterparty and the
electricity suppliers are approved and the provisions of this Order are carried out.
• ANRE Order no. 51/2024 - Order on the approval of the Methodology for determining and collecting the
contribution related to contracts for difference
- the Methodology for the determination and collection of the contribution related to the contracts for difference is
approved, the National Electricity Transmission Company „Transelectrica” - S.A. acts as CfD Scheme Operator, the
Electricity and Natural Gas Market Operator „OPCOM” - S.A. acts as CfD Counterparty
- for the application of the support mechanism through contracts for the difference for the production of energy
through low-carbon technologies, the necessary funds are constituted by the monthly collection by the CfD
Counterparty of the CfD contribution from all suppliers of electricity consumers in Romania
- the CfD contribution, the CfD Scheme Operator’s contribution and the CfD Counterparty’s contribution shall enter into
force as of October 1, 2024.
ANRE Order no. 54/2024 - Order for the amendment and completion of the Commercial Rules regarding the collection,
processing and transmission of electricity measured values, approved by the Order of the President of the National
Energy Regulatory Authority no. 62/2020
- the Commercial Rules on the collection, processing and transmission of electricity measured values are amended/
complemented with the following notions: specific consumption profile, residual consumption profile, prosumer,
reserve supply unit, reserve supply group;
2024
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- the deadlines for submitting to the responsible market participants the MV (metered values) and AMV (approved
metered values) are modified/completed;
- enters into force on July 31, 2024.
ANRE Order no. 57/2024 - Order regarding the approval of the tariff for the purchase of system services for the
transmission and system operator “Compania Nationala de Transport a Energiei Electrice „Transelectrica” S.A.“.
- the tariff for the acquisition of system services, practiced by the National Company for the Transmission of Electric
Energy „Transelectrica” - S.A., in the amount of 11.51 lei/MWh;
- enters into force on September 1, 2024.
ANRE Order no. 60/2024 - Order for the modification and completion of some orders of the President of the National
Energy Regulatory Authority regarding the electricity market
- new rules on the balancing market are adopted;
- it aims to reduce the costs of balancing the SEN, which may lead to a reduction of imbalance prices paid by PRE,
market participants, final consumers;
- the concept of „elastic demand”, used on the European balancing platform, to which all European countries are
interconnected; It allows the OTS to optimize and reduce the balancing costs of the SEN by using alternative offers
such as specific local balancing products; During the use of elastic demand, the OTS communicates the maximum
prices it is willing to pay for the selected balancing energy, this is to the benefit of all electricity market participants
by reducing balancing costs. Also, the OTS is obliged to publish the day after the day of delivery, in a transparent and
non-discriminatory manner, the prices of the bids per reserve type, as well as the marginal prices of the selected
balancing energy for each settlement interval;
- the rules applied to the plants in operation for the test period have been modified, by modifying the price offered to
them for the electricity produced which is correlated with the price for PZU for the respective settlement interval. The
test period will be conducted on a schedule agreed with the OTS for each generator depending on the generator’s
operating power and voltage;
- The RO is required to provide suppliers with timely information on the measured values related to their consumption
in order to facilitate proactive measures to balance the portfolio;
- enters into force on October 1, 2024, except for the provision requiring the RO to provide timely information on
metered values, which enters into force on January 1, 2025.
ANRE Order no. 59/2024 - Order for the amendment of the Methodology for the determination and collection of
the contribution related to contracts for difference, approved by ANRE Order no. 51/2024
- the Methodology for determining and collecting the contribution for contracts for difference is amended: 1.The
operator of the CfD Scheme transmits to the CfD Counterparty the data received from the CfD contribution payers,
verified, within a maximum of 12 days from the end of the month, for the previous calendar month (initially in Order
no. 51/2024 the deadline was a maximum of 15 days), 2. The CfD Counterparty must pay the invoice issued by the
CfD Scheme Operator no later than the last day of each month for the previous calendar month (initially in Order no.
51/2024 the payment deadline was the 25th of each month), etc.;
ANRE Order no. 58/2024 - Order amending the Framework Contract between the CfD scheme operator and the CfD
counterparty, approved by ANRE Order no. 52/2024
- the Framework Contract between the CfD scheme operator and the CfD counterparty is amended in the sense that
the CfD counterparty has the obligation to pay monthly the value of the invoices sent by the CfD scheme operator,
by the last day of each month for the previous calendar month, related to the CfD contribution (initially in Order no.
52/2024 the payment deadline was the 25th of each month);
• ANRE Order no. 62/2024 - Order for the amendment and completion of the Procedure for the resolution of
complaints of interested parties in the energy sector, approved by ANRE Order no. 194/2020
- the Procedure for the resolution of complaints of interested parties in the energy sector is amended and
supplemented: The Petition/Submission/Reclamation addressed to ANRE, which does not contain attached the answer
formulated by the energy market participant or the proof of transmission of the request to it, shall be redirected to the
complained party in order to be solved and to issue an answer to the petitioner, with the information of ANRE, Petitions
/ Requests / Complaints are addressed to ANRE in writing, by mail, by direct submission to the registry, by sending it to
the fax number of ANRE or by filling in the dedicated form available on ANRE’s own website, etc.
• ANRE Order no. 66/2024 - Order on the approval of the contribution for contracts for difference (CfD)
- the contribution for Contracts for Difference (CfD) contracts is approved for a total amount of 0.000128 lei/kWh,
excluding VAT (CfD Scheme Operator’s component of 0.000019 lei/kWh, excluding VAT and CfD Counterparty’s
component of 0.000109 lei/kWh, excluding VAT).
2024
• ANRE Order No. 72/2024 – Order amending and supplementing the Methodology for monitoring the promotion
system of electricity production from renewable energy sources, approved by the Order of the President of the
National Energy Regulatory Authority No. 52/2021. Enters into force on January 1, 2025.
• Purpose: The Methodology for monitoring the promotion system of electricity production from renewable energy
sources (Methodology) aims to establish how the National Energy Regulatory Authority monitors the promotion
system for electricity production from renewable energy sources through green certificates, the promotion
system for electricity produced in renewable energy power plants with an installed capacity of up to 400 kW per
consumption point belonging to prosumers, as well as the degree of fulfillment of the national target regarding the
share of electricity produced from renewable energy sources in the final gross electricity consumption
• ANRE Order No. 73/2024 – Order approving the reference price of electricity produced in high-efficiency
cogeneration, which benefits from a bonus.
• The reference price of 541.96 RON/MWh, excluding VAT, is approved for electricity produced in high-efficiency
cogeneration during the period November 1 – December 31, 2024, and the year 2025.
• This price will be used in the overcompensation analysis for the activity related to November–December 2024
and the year 2025, as well as in the pre-overcompensation analysis for 2025.
• ANRE Order No. 76/2024 – 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 certain provisions on
its billing method:
• The contribution for high-efficiency cogeneration is approved at a value of 0.0078 RON/kWh, excluding VAT.
• ANRE Order No. 77/2024 – Order approving the regulated tariff for electricity exchanges with neighboring countries,
applied by the National Power Transmission Company „Transelectrica” S.A.:
• The regulated tariff for electricity exchanges with neighboring countries is approved at 2.50 EUR/MWh, excluding
VAT, applied by Transelectrica.
• This tariff applies to all import, export, and transit electricity transactions scheduled with the power systems of
neighboring countries.
• ANRE Order No. 79/2024 – Order amending the Procedure for determining and individualizing contraventional
sanctions based on turnover, issued by the Regulatory Committee of ANRE following investigation actions,
approved by the Order of the President of ANRE No. 13/2022:
The procedure aims to establish and individualize sanctions in the event of offenses specified in Article 93 (1) and
Article 194 of Law No. 123/2012 on electricity and natural gas, where penalties are calculated based on turnover as
defined in Article 93 (5) and Article 195 (4) of the law, or, for non-resident entities, based on revenues obtained in
Romania, as recorded in their individual financial statements.
Any investigation action in the wholesale electricity and natural gas markets concludes with an investigation closure
decision.
In all cases where the investigation team identifies and confirms a contravention, for which the legal sanction is a fine
based on turnover, this aspect must be included in the final investigation report, the presentation memorandum, and
the draft investigation closure decision, which are submitted to the Regulatory Committee, responsible for determining
and individualizing the applicable sanctions based on the turnover of the investigated legal entity.
• ANRE Order No. 78/2024 – Order amending and supplementing the Regulation for organizing and conducting
investigation activities in the energy sector regarding the operation of the wholesale energy market, approved by
the Order of the President of ANRE No. 25/2017:
• The Regulation for organizing and conducting investigation activities in the energy sector regarding
the operation of the wholesale energy market establishes the framework for organizing and conducting
investigation activities that ANRE is authorized to carry out.
• To conduct investigations concerning the operation of the wholesale energy market, the regulation applies
to wholesale energy market participants and associated operational structures who hold a license in the
electricity and natural gas sector or a decision issued by ANRE, as well as to wholesale energy market
participants and/or associated operational structures who do not hold a license in the electricity and natural
gas sector or a decision issued by ANRE.
• ANRE Order No. 87/2024 – Order amending and supplementing the Regulation on the collection of the contribution
for high-efficiency cogeneration and the payment of the bonus for electricity produced in high-efficiency
cogeneration, approved by the Order of the President of ANRE No. 116/2013:
2024
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The amendment of the Regulation incorporates the billing provisions from ANRE Order No. 123/2017.
ANRE Order No. 90/2024 – Order establishing the estimated mandatory quota for green certificate acquisition for the
year 2025:
The estimated mandatory quota for the purchase of green certificates by economic operators obligated to acquire
them for 2025 is set at 0.496 green certificates/MWh.
• ANRE Order No. 91/2024 – Order approving the contribution for high-efficiency cogeneration:
Starting January 1, 2025, the contribution for high-efficiency cogeneration is approved at a value of 0.0035 RON/kWh,
excluding VAT.
• ANRE Order No. 100/2024 – Order amending the Order of the President of ANRE No. 51/2024 regarding the approval
of the Methodology for determining and collecting the contribution related to Contracts for Difference (CfD):
ANRE Order No. 51/2024 is supplemented by specifying that the provisions of the methodology outlined in Article 1 do
not apply to the collection of the CfD contribution by electricity suppliers until March 31, 2025 (it will apply starting
April 1, 2025).
• ANRE Orders No. 95/2024–98/2024 – Orders approving the specific tariffs for electricity distribution services, the
price for reactive electricity, and the investment plans for the 5th regulatory period for the following companies:
Retelele Electrice Romania S.A., Delgaz Grid S.A., Distributie Energie Oltenia S.A., Distributie Energie Electrica Romania
S.A.
• The new tariffs are applicable starting January 1, 2025.
• ANRE Order No. 99/2024 – Order approving the tariffs for electricity transmission services and the price for reactive
electricity for the National Power Transmission Company „Transelectrica” S.A., valid from January 1, 2025, as well as
the investment plan values for the 5th regulatory period:
• The new tariffs are applicable starting January 1, 2025.
• ANRE Order No. 93/2024 – Order approving the tariffs and monetary contributions collected by ANRE in 2025:
• For electricity supply license holders, the annual monetary contribution is established based on a percentage
rate of 0.1% applied to the calculation base, but not less than a minimum contribution of 3,125 RON. For
electricity suppliers, the calculation base for the monetary contribution collected by ANRE is the net turnover,
defined and calculated according to the applicable accounting regulations, including revenues from electricity
supply activities—such as those from green certificates and high-efficiency cogeneration contributions, along
with amounts from the compensation schemes for electricity consumption and compensations for measures
applied to final customers in the electricity market.
• The annual monetary contribution for natural gas activities based on a license, such as natural gas supply, is
set at 0.168 RON/MWh.
a) Primary legislation:
• ANRE Order no.1/2025 regarding the amendment and completion of the Framework Conditions for the realization
of the implementation schedule of smart metering systems for electricity at national level approved by ANRE
Order no. 177/2018 with subsequent amendments and additions:
• Completion with new definitions: „MMDC - Multi Meter Data Collector ( HES universal)” and „PLC - Power Line
Communication”;
2024
2025
2025
A.3.2. Changes to the legal framework in 2025 up to the date
of current report
The following are the relevant legislative changes that took place at Group level in the period between the
end of the financial year 2024 and the date of this report.
A.3.2.1. Supply segment
• Replacement of the phrase „users” with the phrase „places of consumption/production and consumption”;
• Modification concerning communication subsystems by introducing the reference to the components necessary
to ensure local or remote access to non-validated consumption data in near real time;
• Completion with the obligation for the DO to ensure interoperability at the level of equipment, communication
technologies and IT applications integrated in the MIS;
• Amendment regarding the provision of information to the user on the integration of the place of consumption/
production and consumption into the SMI;
• Introduction of provisions concerning the technical conditions to be met by the networks into which the SMIs are to
be integrated;
• Obligation to draw up an analysis of the results recorded in the reporting period, detailing the specific conditions
that determined those results, the problems encountered, the measures to be taken in the following period to
overcome the problems encountered;
• Introducing the provision that the proposal for modification of the SMI implementation timetable submitted by the
DO should be accompanied by a justification memorandum and a cost-benefit analysis, prepared according to a
framework structure provided in a newly introduced annex;
• Access, on request of users, to historical consumption data and to the provision of data for billing of EE
consumption based on the data recorded in the SMI. The periodicity of updating of validated historical metering
data validated by users and suppliers has been changed to at least one month. For billing, in the event of data
communication failure, a derogation has been provided for accepting the use of estimated consumption data;
• Conditions for granting access to non-validated consumption data, in near real time, to users. It provides for
granting access to users or third parties authorized by the users, to non-validated consumption data, in near real
time and ensuring security and interoperability conditions, as well as the related internal procedures, which the
DOs are obliged to draw up and make accessible to interested parties, by publishing them on their own websites;
• The obligation of the DOs to integrate in the SMI, as a matter of priority, places of consumption/production and
consumption located in areas where notifications have been registered regarding the establishment of energy
communities.
Introducing the obligation for the DO to develop and publish an operational procedure for the remote disconnection/
reconnection of consumption/production and consumption sites in order to ensure that the process is carried out
in conditions of safety and security of the network elements and of the persons at the consumption/production
and consumption site. It was also introduced the provision that, for justified situations, the SB may charge costs for
disconnection/reconnection of consumption/production and consumption sites integrated in the SMI.
• amending and supplementing the existing provisions to ensure compliance of the framework conditions with the
provisions of Art. 66 paragraphs (5) and (7) of Law 123/2012;
• introduce provisions to create conditions so that the realized SMIs are able to meet the performance criteria set in
terms of reliability and accuracy of transmission and use of measurement and instrumentation data collected and
transited through the system elements;
• increasing the accuracy and relevance of the monitoring of the process of implementation of the SMI by updating
the corresponding annexes; the explanations of the monitored indicators and parameters have been detailed;
provisions have been introduced for the preparation of annual monitoring reports in a uniform and sufficiently
detailed manner to ensure visibility on the progress of the process of implementation of the SMI
• substantiation of the proposals for modification of the SMI implementation timetable in a unitary manner
by introducing Annex no. 6 to the framework conditions, which includes reference framework structures for
the preparation of the justifying memoranda and cost-benefit analysis, which substantiate the requests for
modification of the SMI implementation timetable;
• replacing the phrase „users integrated in the MIS” with „places of consumption/production and consumption
integrated in the MIS” and rewording the references to integration in the MIS so that it refers to places of
consumption/production and consumption; the reference to users is made only in relation to information, rights
and obligations;
• the inclusion of provisions to ensure that users whose places of consumption/production and consumption are
integrated in the SMI have access to non-validated consumption data in near real time, in accordance with the
provisions of the Law.
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A.3.2.2. Distribution segment
2025
a) Primary
legislation
• OUG no. 6/2025 - Emergency Ordinance on the measures applicable to end customers in the
electricity market in the period April 1, 2025 - June 30, 2025, respectively the measures applicable
to end customers in the natural gas market in the period April 1, 2025 - March 31, 2026, and for
amending and supplementing some normative acts in the energy sector:
the period of application of the support scheme (of the capping type) is 3 months for electricity
respectively April 1, 2025 - June 30, 2025 and one year for natural gas, respectively April 1, 2025 -
March 31, 2026.
- for electricity the final price invoiced is:
a)maximum 0,68 lei/kWh VAT included, (for consumption by the following categories of customers:
1.household customers whose monthly consumption is between 0 and 100 kWh inclusive;
2.household customers where people who use medical devices, appliances or equipment powered
from the electricity grid, necessary for medical treatment, based on confirmation from the specialist
and a request submitted to the supplier; 3. household customers who have at least 3 children up to
the age of 18 in their care, on the basis of an application and an affidavit; the age limit is extended
up to 26 years if the eldest child is in education; 4. single-parent household customers, who have
at least one dependent child up to 18 years of age, on the basis of an application and a declaration
on their own responsibility; the age limit is extended up to 26 years in case the major child is in
education)
b)maximum 0,80 lei/kWh, VAT included, for the consumption realized 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 the price of maximum 1,3 lei/kWh, VAT
included, and in case the consumption exceeds 300 kWh/month the entire consumption is invoiced
at the price of maximum 1,3 lei/kWh);
c)maximum 1 leu/kWh, VAT included, for 85% of the monthly consumption realized at the place
of consumption for certain categories of consumers (the difference of monthly electricity
consumption will be invoiced at the price of maximum 1,3 lei/kWh VAT included, based on the
declaration of the legal representative);
d)a maximum of 1 leu/kWh, VAT included, for the full consumption of public and private hospitals,
public and private educational establishments, as well as nurseries, public and private social
service providers;
e)a maximum of 1 leu/kWh, VAT included, for 85% of the monthly consumption, realized at the
place of consumption, for public institutions, other than those mentioned in lit. d), as well as for
those belonging to cults officially recognized in Romania (the difference of monthly electricity
consumption is invoiced at the price of maximum 1.3 lei/kWh, VAT included);
f)maximum 1.3 lei/kWh, VAT included, for household and non-household consumers who are not
covered by lit. a)-e);
- for natural gas, the final invoiced price is: a)maximum 0,31 lei/kWh, VAT included, in the case
of household customers; b)maximum 0,37 lei/kWh, VAT included, in the case of non-household
customers whose annual consumption of natural gas realized in the previous year at the place
of consumption is no more than 50. 000 MWh, as well as in the case of thermal energy producers
and non-household customers within the industrial parks regulated by Law no. 186/2013 on the
establishment and operation of industrial parks, as amended and supplemented, as well as those
within the closed distribution systems defined according to Law no. 123/2012, as amended and
supplemented.
- the price of the standard offers elaborated and published by the electricity/natural gas suppliers,
cannot exceed the value of the final invoiced price capped; the standard offers for the period July
1, 2025 - June 30, 2026 can be elaborated and published only if there is a 50% of the purchase
realized for the offered period, with the obligation to mention the supply component separately;
- final customers’ declarations on the capped final price submitted to suppliers under the
provisions of GEO 27/2022 remain in force;
- CfD has been included in the final price cap;
2025
- the application of the minimum between the contractual price, the capped price and the price
resulting from the application of the GEO remains in force;
- regarding the purchase of electricity: the percentage of recognition for imbalances increases
from 5% to 10% value/cost and without limitation for FUI; the limit of the recognized purchase price
is maintained, i.e. 700 lei/MWh; directly negotiated bilateral contracts are reported to ANRE within 2
working days from the date of conclusion;
- settlement requests are submitted prior to uploading the data on the ANRE portal related to
the price cap; 40% of the amount related to the settlement requests is settled within 10 days from
the transfer of the amounts by the MF to the ME and ANPIS accounts (this is not a payment term
controllable by the supplier)
- the supplier will notify the customers in its own portfolio of the changes resulting from the
application of the provisions of the GEO with the first invoice sent after its entry into force;
- failure by operators to comply with the prescribed deadlines, i.e. the deadline for rectifying
the data uploaded to the IT platform and for resubmission of settlement requests and/or self-
declarations, constitutes a contravention and is punishable by a fine of between 25,000 lei and
50,000 lei;- amend GEO no. 27 (in force) as follows: for the period April-August 2022, the final
deadline for entering the data required for the settlement of the amounts from the state budget
or, as the case may be, for the regularization of the amounts settled from the state budget is April
30, 2025; for the period September 2022-August 2023, the final deadline for entering the data
required for the settlement of the amounts from the state budget or, as the case may be, for the
regularization of the amounts settled from the state budget is April 30, 2025;
- the Law on Electricity and Natural Gas Law No. 123/2012 is amended: generators are obliged to
trade at least 50% of their annual electricity production through contracts on electricity markets
other than PZU, PI and PE. Exempted from this provision are generators that have in their portfolio
only generation capacity from wind, photovoltaic, micro-hydropower plants that benefit from the
support scheme through green certificates, as well as cogeneration capacity. OPCOM is obliged to
publish daily reference prices, closing prices and traded volumes.
- for natural gas: stock of at least 90% of the underground storage capacity plus the obligation of
natural gas producers to deliver at 120 lei/MWh for suppliers/PET/direct customers, with priority
order: storage, consumption by domestic customers, PET consumption only for the population.
b) secondary
legislation
• ANRE Order no. 1/2025 - Order amending and supplementing the Framework Conditions for
the realization of the implementation schedule of smart metering systems for electricity at
national level, approved by Order of the President of the National Energy Regulatory Authority
no. 177/2018.
- DOs and electricity suppliers have the obligation to inform the user about the integration of the
place of consumption in the SMI and about the new conditions determined by the integration of the
place of consumption, related to the electricity supply and distribution services; the information is
realized by sending the Annex no. 7 „Specific conditions of the place of consumption/production
and consumption integrated in the smart metering system”, by the supplier with which the user of
the place of consumption/production and consumption has an electricity supply contract in force;
the transmission of the annex is made together with the first invoice for the electricity consumption
issued after the supplier receives the situation of the place of consumption/production and
consumption.
• ANRE Order no. 2/2025 - Order regarding the establishment of the mandatory quota for the
purchase of green certificates, for the year 2024.
- The mandatory quota for the purchase of green certificates by the economic operators that have
the obligation to purchase green certificates for the year 2024 is set at 0.496 green certificates/
MWh (compared to 0.4944765 CV/MWh estimated quota for 2024 and 0.4946974 CV/MWh
mandatory quota for 2023);
- enters into force on March 1, 2025.
Source: Electrica
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Appendix 4 – Corporate Governance
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 the composition of these were as follows:
The distribution subsidiary DEER – 1 January 2024 – date of the report
01 January - 31 March
01 April - Present
Anna-Maria Vasile - Chair
Anna-Maria Vasile - Chair
Andrei – Gabriel Benghea–Malaies
Laura – Victoria Iancu
Niculina – Cristina Somlea
Niculina – Cristina Somlea
Oana Babagianu
Oana Babagianu
Constantin Cristian Olaru
Constantin Cristian Olaru
Source: Electrica
The end date of the mandates of DEER’s directors at the date of this report is 31 December 2025.
The supply subsidiary EFSA – 1 January 2024 – date of the report
01 January - 09 December
10 December - 03 December
01 January 2025 - Present
Ioana–Andreea Lambru - Chair
Ioana–Andreea Lambru- Chair
Ioana – Andreea Lambru - Chair
Dragos – Stefan Roibu
Dragos – Stefan Roibu
Dragos – Stefan Roibu
Adrian Bazavan
Adrian Bazavan
Adrian Bazavan
Marius Lungu
Marius Lungu
Marius Lungu
Mirela Ionescu
Mircea Dolha
Source: Electrica
The end date of the mandates of EFSA’s directors at the date of this report is 31 December 2025.
The energy services subsidiary SERV – 1 January 2024 – date of the report
01 January - 19 May
20 May - 31 December
01 January 2025 - Present
Alexandru – Aurelian Chirita - Chair
Tanase Dorel - Chair
Tanase Dorel - Chair
Ramona Moldovan
Ramona Moldovan
Ramona Moldovan
Oana – Marie Arat
Oana – Marie Arat
Mihaiela Frasineanu
Source: Electrica
The end dates of mandates of SERV’s directors at the date of this report is 31 December 2025.
The production subsidiary SWE - 1 January 2024 – date of the report
01 January – present
Alina Camelia Mustatea
Elena Stancu
Mihai Ioanitescu
Source: Electrica
The end dates of the mandates of SWE’s directors at the date of this report is 29 July 2025.
The production subsidiary NTE - 1 January 2024 – date of the report
01 January – 11 July
12 July - present
Sebastian Petre Enache
Stefania Andruhovici
Elena Stancu
Elena Stancu
Mihai Ioanitescu
Mihai Ioanitescu
Source: Electrica
The end dates of the mandates of NTE’s directors at the date of this report is 29 July 2025.
The production subsidiary FPE - 1 January 2024 – date of the report
01 January – 11 September
12 September - present
Sebastian Petre Enache
Oana Eugenia Lahman
Elena Stancu
Elena Stancu
Stefania Andruhovici
Stefania Andruhovici
Source: Electrica
The end dates of the mandates of FPE’s directors at the date of this report is 31 December 2025.
The production subsidiary CPP - 1 January 2024 – date of the report
01 January – 14 October
15 October – 6 February 2025
7 February 2025 – present
Catalin Mrejeru
Mihai Ioanitescu
Mihai Ioanitescu
Sebastian Petre Enache
Sebastian Petre Enache
Oana Eugenia Lahman
Elena Stancu
Elena Stancu
Elena Stancu
Source: Electrica
The end dates of the mandates of CPP’s directors at the date of this report is 29 July 2025.
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STATEMENTS
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ELECTRICA 2024 ANNUAL REPORT
A.4.2. Executive management of ELSA’s subsidiaries
The tables below show the subsidiaries’ executive managers with delegated management duties by Board of
Directors of ELSA subsidiaries in 2024, as well as until the date of this report, as follows:
The distribution subsidiary DEER– until the date of the report
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
05 October 2022 - present
General Manager
05 October 2026
Anamaria Cristina Andro
07 July 2023 - present
Financial Division Manager
31 March 2025
Ionel Boja
01 August 2023 - present
Commercial Division
Manager
31 March 2025
Gabriel Gheorghe
01 February 2023 - present
Strategy and Planning
Division Manager
31 March 2025
Ionel Radu
09 May 2024 - present
Operations & Development
Division Manager
31 March 2025
Source: Electrica
The supply subsidiary EFSA – until the date of the report
Name
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 March 2025
Dumitru Chirita
27 October 2023 - 31 August
2024
Deputy General manager
Dan - Ioan Morar
1 October 2024 - present
Deputy General Manager
31 March 2025
Ruxandra-Madalina Rusu
20 May 2022 – present
Financial Division Manager
31 March 2025
Paul - Ferdoschi
20 May 2022 – present
Sales Division Manager
31 March 2025
Mihai Beu
20 May 2022 – present
Portfoliu Management
Division Manager
31 March 2025
George-Marian Fertu
13 October 2022 - present
Operations Division
Manager
31 March 2025
Source: Electrica
The energy services subsidiary SERV – until the date of the report
Name
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 – 17 October 2024
General Manager
Vasile Apostol
18 October 2024 – March 06, 2025;
suspended for 30 days or until the
current situation is clarified
General Manager
31 December 2025
Elena Stancu
March 06, 2025 - 30 days or until
the current situation is clarified
General Manager
Violeta Florentina Nitu
07 December 2023 –
30 September 2024
General Manager
Ionut Marius Avram
March 06, 2025 - 30 days or until
the current situation is clarified
Deputy General
Manager
Magdalena Necula
16 October 2023 – 17 October 2024
Deputy General
Manager
Mariana Vilceanu
18 October 2024 – 03 March 2025
- suspended
Financial Manager
Oana Eugenia Lahman
March 06, 2025 - 30 days or until
the current situation is clarified
Financial Manager
Vasile Ionel Bujorel Oprean
17 December 2023 – Present
(with interruption from 01 October
to 16 October 2024)
Green Energy Division
Manager
28 February 2025
Source: Electrica
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ELECTRICA 2024 ANNUAL REPORT
A.4.3. Number of shares owned by the executive managers and directors
of Electrica Group
As table below shows the situation of ELSA shares held by the members of the board of directors of the
companies in the Group, currently on the position, a situation valid as of 31 December 2024:
Name
Number of shares
Weight in the share capital
(%)
Marian Cristian Mocanu
500
0.00014725
Dragos Valentin Neacsu
20
0.00000589
Source: Central Depository
As of December 31, 2024, according to the Central Depository, no executive director of the Group companies,
in office, held shares in ELSA.
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 except, in the context of the identification of inconsistencies
in the payment processes of ElectricaServ: (i) the economic director of ElectricaServ, who was dismissed from
the position on March 3, 2025; (ii) and the general manager of ElectricaServ, whose mandate contract was
suspended for a period of 30 days or until the completion of the internal control and internal checks to identify
the inconsistencies in the payment processes of ElectricaServ.
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;
• Increase of the general debt limit for DEER and EFSA;
• setting KPIs for the Board members;
• implementation of Central Finance project;
• implementation of projects to strengthen financial supervision and discipline in 2024;
• increasing the value of loans took out by DEER from Raiffeisen Bank and BCR;
• a new term loan took out by DEER from the EIB to finance the 2025-2027 investment plan, guaranteed by
ELSA;
• the component of DEER’s annual financial plan regarding investments, namely the Investment Plan 2025-
2029 (PIF);
• conclusion of the financial facilities, in the case of DEER and EFSA, under the syndicated credit facility to be
contracted from a syndicate of commercial banks with ELSA, EFSA and DEER as borrowers, ELSA being also
guarantor for EFSA and DEER, for the purpose of refinancing the balance and any amounts due (interest,
commissions, other costs) on bilateral loans, as selected by the companies, entered into by EFSA and
DEER respectively; in the case of DEER there is also an amount for the purpose of financing/refinancing the
Capex Plan for the period 2025-2027;
• disbanding and dissolution of the branch “Electrica Furnizare S.A. Bucuresti Sucursala Chisinau” and the
transfer of the assets and property used by the branch to a new structure, the establishment of a limited
liability company in the Republic of Moldova, in which EFSA will hold a 100% stake, being approved at the
same meeting of the EFSA’s EGMS;
• 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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STATEMENTS
STATEMENTS
ELECTRICA 2024 ANNUAL REPORT
ELECTRICA 2024 ANNUAL REPORT
Appendix 5 – Table list
Table 1. Company details
17
Table 2. Key financial data for 2024 - 2021
20
Table 3. Key financial data for 2024 - 2021
22
Table 4. ELSA’s subsidiaries
49
Table 5. ELSA’s associates
49
Table 6. Long term investments owned by ELSA
50
Table 7. The key drivers of changes in the electricity market
57
Table 8. Ownership structure
66
Table 9. BSE Shares and Global Depositary Receipts (GDRs) on LSE
69
Table 10. Members of the BoD in 26 January 2024
82
Table 11. Members of the BoD 26 January 2024 – 31 December 2024
83
Table 12. Participation of the BoD members at the meetings and of the committees in 2024
94
Table 13. ELSA’s Executive management during 2024, appointed on the basis of mandate contracts
102
Table 14. ELSA’s compliance with the provisions of the BSE Corporate Governance Code
107
Table 15. Operating segments
130
Table 16. The electricity distribution tariffs approved by ANRE starting with 1 January 2024
132
Table 17. Electricity distribution tariffs approved by ANRE starting with January 1, 2025
132
Table 18. Number of users and volume of installations as of 31 December 2024
136
Table 19. Degree of attrition of the installations
137
Table 20. Investment program approved by ANRE for the year 2024 and 2025-2029 period (RON mn.)
139
Table 21. Investments planned 2024 vs achieved 2024 DEER according OMFP 1802/2014 (RON mn.)
139
Table 22. Consolidated investments planned 2024 vs achieved 2024 according OMFP 2844/2016 (RON mn.)
139
Table 23. The synthetic structure of investments achieved by distribution subsidiary in 2024 (RON mn.)
140
Table 24. PIF plan vs achieved 2024 (RON mn.)
142
Table 25. RAB evolution 2014-2024 (RON mn.)
142
Table 26. Number of employees evolution 2024 – 2020
149
Table 27. Consolidated statement of the financial position 2024-2021 (RON. mn) - S-IFRS-EU
158
Table 28. Cash and cash equivalents 2024-2022
161
Table 29. Number of shares 2024 - 2022
161
Table 30. Revaluation reserves 2024-2022 (RON mn.)
162
Table 31. Legal reserves 2024-2022 (RON mn.)
163
Table 32. Consolidated statement of the financial position 2024-2021 (RON. mn) - S-OMFP 2844/2016
164
Table 33. Cash and cash equivalents 2024-2022
167
Table 34. Number of shares 2024 - 2022
167
Table 35. Revaluation reserves 2024-2022 (RON mn.)
168
Table 36. Legal reserves 2024-2022 (RON mn.)
168
Table 37. Consolidated statement of profit or loss (RON mn.) - S-IFRS-EU
170
Table 38. Electricity, natural gas and goods purchased 2024-2021 (RON mn.) - S-IFRS-EU
172
Table 39. Consolidated statement of profit or loss (RON mn.) - S-OMFP 2844/2016
176
Table 40. Electricity, natural gas and goods purchased 2024-2021 (RON mn.) - S-OMFP 2844/2016
178
Table 41. Consolidated cash flow statement (RON mn.) - S-IFRS-EU
182
Table 42. Consolidated cash flow statement (RON mn.) - S-OMFP 2844/2016
186
Table 43. Separate statement of the financial position (RON mn.)
190
Table 44. Loans granted to subsidiaries (long term) (mn. RON)
192
Table 45. Loans granted to subsidiaries (short term) (mn. RON)
193
Table 46. Dividends 2024-2022 (RON mn.)
194
Table 47. 2024 Provisions (RON mn.)
194
Table 48. Separate statement of profit or loss (RON mn.)
195
Table 49. Separate statement of cash flow (RON mn.)
196
Table 50. Risks and uncertainties as of 31 December 2024
203
Table 51. Credit risk and expected credit losses for trade receivables as of 31 December 2024
209
Table 52. Credit risk and expected credit losses for trade receivables as of 31 December 2023
209
Table 53. Credit risk and expected credit losses for trade receivables as of 31 December 2022
210
Table 54. Credit risk and expected credit losses for trade receivables as of 31 December 2021
210
Table 55. Contractual maturities of financial liabilities (RON mn.)
211
Table 56. Exposure to currency risk 2024-2022
212
Table 57. Average rate and year-end spot rate
212
Table 58. Sensitivity analysis
213
Table 59. Fixed-rate and variable-rate instruments
213
Table 60. Cash flow sensitivity analysis for variable-rate instruments
214
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STATEMENTS
STATEMENTS
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ELECTRICA 2024 ANNUAL REPORT
Appendix 6 – Figures list
Figure 1: Consolidated revenue of Electrica Group (RON mn.) - S-IFRS-EU
21
Figure 2: EBITDA (RON mn.) and EBITDA margin (%)- S-IFRS-EU
21
Figure 3: Consolidated net profit (RON mn.) - S-IFRS-EU
21
Figure 4: Net debt (RON mn.) - S-IFRS-EU
21
Figure 5: Consolidated revenue of Electrica Group (RON mn.) - S-OMFP 2844/2016
22
Figure 6: EBITDA (RON mn.) and EBITDA margin (%)- S-OMFP 2844/2016
22
Figure 7: Consolidated net profit (RON mn.) - S-OMFP 2844/2016
22
Figure 8: Net debt (RON mn.) - S-OMFP 2844/2016
22
Figure 9: Romanian electricity distribution map
23
Figure 10: Evolution of the number of users (mn.)
24
Figure 11: Quantity distributed (TWh)
24
Figure 12: Revenues - distribution segment (RON mn.) - S-IFRS-EU
24
Figure 13: EBITDA – distribution segment (RON mn.) - S-IFRS-EU
24
Figure 14: Net Profit – distribution segment (RON mn.) - S-IFRS-EU
25
Figure 15: Net debt/(cash) – distribution segment (RON mn.) - S-IFRS-EU
25
Figure 16: Revenues - distribution segment (RON mn.) - S-OMFP 2844/2016
25
Figure 17: EBITDA – distribution segment (RON mn.) - S-OMFP 2844/2016
25
Figure 18: Net Profit – distribution segment (RON mn.) - S-OMFP 2844/2016
25
Figure 19: Net debt/(cash) – distribution segment (RON mn.) - S-OMFP 2844/2016
25
Figure 20: Revenues - supply segment (RON mn.)
26
Figure 21: EBITDA - supply segment (RON mn.)
26
Figure 22: Net profit - supply segment (RON mn.)
27
Figure 23: Net debt/(Cash) - supply segment
27
Figure 24: Ownership structure as of 31 December 2024
67
Figure 25: Evolution of the adjusted closing price of ELSA’s shares vs BET-TR index during 2024 and
January 2025
70
Figure 26: Monthly trading volume and weighted average monthly closing price of shares on BSE (in RON) and
GDRs on LSE (in USD) during 2024 and January 2025
71
Figure 27: Gross dividends distributed (2014-2023) (RON mn.)
74
Figure 28: Gross dividend per share (RON) and dividend yield (%)
74
Figure 29: The geographical coverage of the companies in the Electrica Group in 2024
130
Figure 30: The structure of CAPEX achievements for distribution operator within the Group, in 2024 (RON mn.)
141
Figure 31: Market share of distribution segment in 2024
144
Figure 32: Total market shares, 2024
145
Figure 33: Competitive Market, 2024
145
Figure 34: Volume of electricity supplied on the retail market (TWh)
145
Figure 35: Evolution of consumer numbers (ths.)
145
Figure 36: Consumers structure by quantity of electricity supplied in 2024
146
Figure 37: Consumers structure by income generated in 2024
146
Figure 38: Frequency index 2022-2024
150
Figure 39: Revenue for 2024 and comparative information (RON mn.) - S-IFRS-EU
171
Figure 40: EBITDA and EBITDA margin for 2024 and comparative information (RON mn. and %) - S-IFRS-EU
173
Figure 41: EBIT and EBIT margin for 2024 and comparative information (RON mn. and %)
173
Figure 42: Net profit and Net profit margin for 2024 and comparative information (RON mn. and %) - S-IFRS-EU
174
Figure 43: Analysis of net regulated result - OMFP 1802/2014 - OMFP 2844/2016 - IFRS-EU for distribution
segment 2024 (RON mn.)
175
Figure 44: Revenue for 2024 and comparative information (RON mn.) - S-OMFP 2844/2016
177
Figure 45: EBITDA and EBITDA margin for 2024 and comparative information (RON mn. and %) - S-OMFP
2844/2016
179
Figure 46: EBIT and EBIT margin for 2024 and comparative information (RON mn. and %) - S-OMFP 2844/2016
179
Figure 47: Net profit and Net profit margin for 2024 and comparative information (RON mn. and %) - S-OMFP
2844/2016
180
Figure 48: Analysis of net regulated result - OMFP 1802/2014 - OMFP 2844/2016 - IFRS-EU for distribution
segment 2024 (RON mn.)
181
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STATEMENTS
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Glossary
ANRE
Romanian Energy Regulatory Authority
ASF
Romanian Financial Supervisory Authority (Autoritatea de Supraveghere
Financiara)
BPS
Basis points
BoD
Board of Directors
BRP
Balance Responsible Party
BSE
Bucharest Stock Exchange
BTA
Business Transfer Agreement
CAPEX
Capital Expenditure
CGC
Corporate Governance Code
CMC
Competitive Market Component
CMBC (EA/
CN)
Centralized Market for Bilateral Contracts (Extended Auction/Continuous
Negotiation)
CMNG-AN
Centralized Market for Bilateral Natural Gas Contracts – Auction and
Negotiation
CMNG-PA
Centralized Market for Bilateral Natural Gas Contracts – Public Auction
CMNG – OTC
Centralized Market for Bilateral Natural Gas Contracts – OTC
CMUS
Centralized Market for Universal Service
CNTEE
The National Transmission System Operator
CSR
Corporate Social Responsibility
DAM
Day Ahead Market
DAM-NG
Day Ahead Market – Natural Gas
DEER
Distributie Energie Electrica Romania
DSO
Distribution System Operator
DMS
Distribution Management System
EEA
European Economic Area
EBIT
Earnings before interest and tax
EBITDA
Earnings before interest, tax, depreciation and amortization
EDN
Electrical Distribution Network
EGMS
Extraordinary General Meeting of Shareholders
EFSA
Electrica Furnizare SA
ELSA
Electrica SA
ERM
Enterprise Risk Management
EU
European Union
EUR
The monetary unit of several member states of the European Union
FCA
Financial Conduct Authority – United Kingdom
FPM-LT
Medium and Long-Term Flexible Products Market
GC
Green Certificates
GDP
Gross Domestic Product
GDR
Global Depositary Receipts
GEO
Government Emergency Ordinance
GMS
General Meeting of Shareholders
HV
High Voltage
IAS
International Accounting Standard
IFRIC
International Financial Reporting Interpretations Committee
IFRS
International Financial Reporting Standard
IM-NG
Intraday Market for Natural Gas
IMS
Integrated Management System
IPO
Initial Public Offering
IR
Investor Relations
ISIN
International Securities Identification Number
KPI
Key Performance Indicators
kV
KiloVolt
LOC
Land Ownership Certificate
LR
Last Resort
LSH
Labor safety and health
LV
Low Voltage
MV
Medium Voltage
MVA
Mega Volt Ampere
MWh
MegaWatt hour
MKP
Management Key Position
NAFA
National Agency for Fiscal Administration
NES
National Electricity System
NL
Network Losses
NRC
Nomination and Remuneration Committee
OMPF
Order of Ministry of Public Finances
304
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STATEMENTS
ELECTRICA 2024 ANNUAL REPORT
ELECTRICA 2024 ANNUAL REPORT
OGMS
Ordinary General Meeting of Shareholders
OHS
Occupational Health and Safety
OHSAS
Occupational Health and Safety Assessment Series
OPCOM
Romanian Gas and Electricity market operator
PCB
Polychlorinated Biphenylsor
RAB
Regulated Asset Base
RM
Retail Market
RON
Romanian monetary unit
RRR
Regulated Rate of Return
SAD
Distribution Automation System
SAPE
Societatea de Administrare a Participatiilor in Energie
SCADA
Supervisory Control And Data Acquisition
SDEE
Societatea de Distributie a Energiei Electrice SA
SDMN
Societatea de Distributie a Energiei Electrice Muntenia Nord SA
SDTN
Societatea de Distributie a Energiei Electrice Transilvania Nord SA
SDTS
Societatea de Distributie a Energiei Electrice Transilvania Sud SA
SED
Servicii Energetice Dobrogea SA
SEM
Servicii Energetice Muntenia SA
SEO
Servicii Energetice Oltenia SA
SoLR
Supplier of last resort
SPO
Secondary Public Offering
TWh
TeraWatt hour
TSO
Transmission and system operator
UM
Unit of Measurement
US
Universal Service
USD
United States Dollar
VAT
Value Added Tax
Note: The figures presented in this document are rounded based on the round to nearest method; as a result, rounding
differences may appear.
SUSTAINABILITY REPORTING
FOR THE YEAR 2024
ESRS 2 – General disclosures
309
Index of ESRS disclosure requirements
355
Disclosures pursuant to Article 8 of Regulation (EU) 852/2020 (Taxonomy Regulation)
368
ESRS E1 – Climate change
379
ESRS S1 – Own workforce
415
ESRS S4 – Consumers and end-users
447
ESRS G1 – Business Conduct
462
Contents
ESRS 2 – General disclosures
BP-1 General basis for the preparation of the sustainability statement
Electrica Group, composed of Societatea Energetica
Electrica S.A. (“ELSA” or “Electrica S.A.”), the parent
company, and its seven subsidiaries: 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”), and
Crucea Power Park S.R.L. (“CPP”) , has prepared the
Sustainability Reporting (“Sustainability Statement”
or “Statement”) in accordance with the European
Sustainability
Reporting
Standards
(“ESRS”),
as
outlined in Annex 1 to Delegated Regulation (EU)
2023/2772 of July 31, 2023, which supplements
Directive 2013/34/EU of the European Parliament and
of the Council, transposed into local legislation by
Minister of Finance Order No. 85/2024.
The Statement also includes information required
by the EU Taxonomy Regulation, in accordance with
Regulation (EU) 2020/852 of the European Parliament
and of the Council of 18 June 2020 on the establishment
of a framework to facilitate sustainable investment
and amending Regulation (EU) 2019/2088.
ELSA and its subsidiaries are collectively referred to as
the “Group,” “Electrica Group,” or “Electrica.” Electrica
Group’s Sustainability Statement has been prepared
on a consolidated basis, covering the reporting period
from January 1 to December 31, 2024, in alignment
with the financial reporting period. The consolidation
perimeter of this Statement is the same as that of
the consolidated financial statements of Electrica
Group. Electrica S.A. is the only entity within the Group
that falls within the scope of the CSRD (“Corporate
Sustainability
Reporting
Directive”),
transposed
into national legislation through Ministry of Finance
Order No. 85/2024, having the obligation to report
on an individual basis for the financial year 2024 in
its capacity as large listed company (i.e., a public
interest entity). The other entities within Electrica
Group do not have an individual reporting obligation
for the financial year 2024, as they are not public
interest entities. However, Electrica S.A., as the parent
company of a Group, prepares annual consolidated
financial statements. According to ESRS 1.62, “if the
reporting undertaking is a parent company required
to prepare consolidated financial statements, the
sustainability statement will be for the group.” Thus,
starting from the financial year 2024, Electrica S.A.,
in its capacity as the listed parent company of a
large Group, is required to prepare a consolidated
sustainability statement, which will be part of the
Annual Report for the financial year 2024.
Starting with the reporting year 2024, sustainability
related information shall be integrated into the
section dedicated to the Sustainability Reporting
within the Annual Report.
In accordance with legal provisions, the Sustainability
Reporting of the Electrica Group was subject to a
limited assurance process (for details, please see
the Independent Auditor’s Report on Sustainability
Reporting as of and for the Financial Year Ended
December 31, 2024, document available on Electrica’s
corporate website after this sustainability reporting).
.
1 All four companies, Sunwind Energy S.R.L. (SWE), New Trend Energy S.R.L. (NTE), Foton Power Energy S.R.L. (FPE), and Crucea Power Park S.R.L. (CPP) are under the operational
control of the Electrica Group and are currently in the development phase of renewable energy projects. Specifically, SWE has three part-time employees, while
NTE, FPE, and CPP have no employees, reflecting their current project stage and the absence of active operations. As a result, this report does not include data on
emissions, waste, or other social metrics for these companies. However, they adhere to the governance principles of Electrica Group, which is committed to promoting
sustainability across its entire operational scope.
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ELECTRICA 2024 ANNUAL REPORT
ELECTRICA 2024 ANNUAL REPORT
The companies included in the reporting perimeter
are::
• Societatea Energetica Electrica S.A. („ELSA”),
• 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”),
• Crucea Power Park S.R.L. (“CPP”).
All current operations of the Group are carried out on
Romanian territory.
The strategic coordination role within the Group
is held by ELSA. In addition to its management
company role and the renewable energy production
activities carried out through its subsidiaries SWE,
NTE, FPE, and CPP, ELSA also develops and operates
energy production and storage capacities, through
the photovoltaic parks Stanesti (7.5 MW) and Vulturul
(12 MW).
The values and principles defined at ELSA level through
the Code of Ethics and Business Conduct (CEBC)
and the subsequent set of policies are applicable
throughout the entire Group. ELSA coordinates the
process of evaluating the applicability of the CEBC
and related policies, as well as reviewing them at the
Group level.
ELSA subsidiaries: activities and areas of
expertise
Distributie Energie Electrica Romania S.A. (DEER)
- is the electricity distribution operator covering 18
counties in Romania, ensuring grid user service by
operating installations that function at voltages
between 0.4 kV and 110 kV (power lines, substations,
and transformer stations). The company engages in
activities such as grid construction and modernization,
maintenance and repairs, measurement of electricity
consumption, and provision of electricity distribution
services.
Electrica Furnizare S.A. (EFSA) - its main activity is
the commercialization of electricity and natural gas
for end customers within Romanian territory, being
authorized to trade electricity within Hungarian
territory as well. Additionally, it offers solutions to
optimize consumption for customers.
Electrica Serv S.A. (SERV) - provides repair and other
related services to third parties and maintenance,
repairs, and various services to companies within the
Electrica Group (car rental, building rental etc.).
Sunwind Energy S.R.L. (SWE) - has been part of the
Electrica Group since 2022, due to ELSA holding 60% of
shares and it develops the “Satu Mare 2” photovoltaic
project in Satu Mare County, with a planned installed
capacity of 27 MW. In 2023, ELSA completed the
acquisition of all social shares, reaching 100%
ownership.
New Trend Energy S.R.L. (NTE) - has been part of
the Electrica Group since 2022, due to ELSA holding
60% of social shares and developing “Satu Mare
3” photovoltaic project in Satu Mare County, with
a planned capacity of 59 MW. In July 2024, ELSA
completed the acquisition of all social shares,
reaching 100% ownership.
Foton Power Energy S.R.L. (FPE) became a subsidiary
in 2023, due to ELSA holding 60% of social shares and
developing the “Bihor 1” photovoltaic project near the
city of Oradea with a planned installed capacity of
77.5 MW. On September 12, 2024, ELSA acquired the
remaining social shares, reaching 100% ownership.
Crucea Power Park S.R.L (CPP) is developing a wind
project in Constanta County with a planned installed
capacity of 121 MW and a planned electricity storage
capacity of 60 MWh. As of December 31, 2024, ELSA
held 60% ownership of shares, with the acquisition of
the company completed on February 7, 2025. More
information may be found in the Directors’ Report,
section Other Relevant Events, part of the Annual
Report.
ELSA associated entities (uncontrolled by Electrica
and not included in the sustainability reporting
scope)
Electrica Esyasoft Smart Solutions S.A. - Entity 25%
owned by Societatea Energetica Electrica S.A. and
75% by Esyasoft Enterprise Holding RSC L.T.D. It offers
smart grid technologies including storage solutions
– batteries and grid digitization.
Other immobilized securities held by ELSA (not
included in the sustainability reporting scope)
CCP.RO
Bucharest
S.A.
engages
in
financial
intermediation activities, excluding insurance and
pension fund activities (risk management through
derivative products in the energy market), with a
holding percentage of 5.92% as of December 31, 2024.
For more details and information regarding the
organizational structure of Electrica Group, please
refer to the Directors’ Report, section Electrica
Group – Organizational Structure, which is part of
this Annual Report.
Since July 2014, ELSA has been a majority privately-
owned company, listed on the Bucharest and London
stock exchanges.
ELSA’s shareholder structure includes the Ministry of
Energy as the largest shareholder, highlighting its
strategic importance in Romania’s energy landscape.
Additionally, the Company benefits from the support
and trust of significant institutional investors such
as the EBRD, along with corporate and individual
shareholders.
The Sustainability Reporting does not only cover
Electrica Group’s own operations, but it also includes
relevant information from the value chain, both
upstream
and
downstream,
where
applicable.
The double materiality assessment covered the
evaluation of the impacts associated with both the
Group’s own operations, products and services,
as well as its business relationships. Therefore, the
sustainability reporting for the Electrica Group covers
the value chain both upstream and downstream
in line with the requirements of ESRS 1, section 5.1
Reporting undertaking and value chain.
The value chain of Electrica Group is built based on
the individual value chains of each company within
the Group, each having specificities depending
on their activities and role within the group. Each
company within the group manages its own value
chain according to its field of activity.
Distributie Energie Electrica Romania (DEER) plays
a strategic role in the energy sector of Romania,
ensuring the distribution of electricity through its
distribution grid to consumers. The eighteen branches
serve as many counties in the area covered by DEER,
namely: Cluj, Bihor, Satu Mare, Maramures, Bistrita-
Nasaud, Salaj, Alba, Brasov, Covasna, Harghita, Mures,
Sibiu, Prahova, Buzau, Galati, Braila, Dambovita and
Vrancea. DEER’s upstream value chain consists of
electricity producers – conventional and renewable
power plants – and the transmission operator,
Transelectrica, who ensures the delivery of energy
into the grid. Furthermore, the value chain includes
direct suppliers of essential equipment such as
transformers, cables, and materials for maintenance
and modernization of distribution grids. Lower-level
suppliers within the supply chain, such as component
manufacturers and raw material suppliers, contribute
to providing the necessary resources. Downstream,
energy
suppliers
manage
the
commercial
relationship with end customers – residential and
non-residential ones, while distribution operators
deal with the actual delivery of energy to end users.
For Electrica Furnizare S.A. (EFSA), the value chain
is structured around suppliers of electricity and
natural gas, including the energy transportation,
such as Transelectrica, which plays an important
role in delivering energy to distribution grids, as
well as partners that offer technological solutions
for
improving
energy
consumption
efficiency.
Downstream,
EFSA
directly
interacts
with
end
customers and implements tailored solutions to
reduce
consumption.
Electrica SERV S.A. (SERV or FISE) has a value chain
composed of suppliers of spare parts, equipment, and
materials needed for repair and maintenance works.
Downstream, SERV serves both companies within the
group and external customers, contributing to the
functionality of energy infrastructures.
Regarding
the
renewable
energy
companies,
Sunwind Energy S.R.L. (SWE), New Trend Energy S.R.L.
(NTE), Foton Power Energy S.R.L. (FPE) and Crucea
Power Park S.R.L (CPP), the value chain includes
suppliers of development, design, procurement
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and construction services, as well as suppliers of
equipment designated for photovoltaic and wind
parks. Downstream, these companies contribute
to delivering energy from renewable sources to the
national grid.
Electrica Group has a set of policies and procedures
designed to ensure the compliance of the value chain
with sustainability, ethics, and safety standards.
Electrica Group’s suppliers have a contractual
obligation to comply with the provisions of the Code
of Ethics and Business Conduct (of the subsidiary
which they enter a contract with. The adherence
of suppliers, service providers and contractors to
Electrica’s Code of Ethics and Conduct ensures their
responsibility, integrity, and good conduct in business
relationships. This measure promotes an ethical and
sustainable business environment.
The Risk Management & Know Your Customer (KYC)
Department, through dedicated personnel, performs
the necessary verification of the business partner and
applies the know your customer measures, ensures
that all partner identification measures are applied,
conducts KYC assessments regarding business
partners, and participates in risk assessments
for business partners (upon request, with a focus
on money laundering risk, as per the legislative
requirements in force).
Electrica Group maintains two distinct business
partner assessment processes, each having a
specific purpose: KYC for legal compliance and ESG
assessment for responsible governance. While KYC
is conducted according to the requirements of Law
129/2019, the ESG evaluation process ensures the
integration of high sustainability standards in the
supply chain. Currently, there is no centralized KYC
assessment system at Group level – SERV carries
out the KYC assessment through SLA (Service Level
Agreement), SPVs conduct KYC assessment upon
request, also through SLA, and EFSA and DEER manage
this process separately.
Before entering a contractual relationship, suppliers
are subject to a prequalification process based on
ESG (environmental, social, and governance) criteria.
Complementing
this
framework,
the
“Business
Partner Knowledge Policy (customers and suppliers)”
contributes to the identification and assessment
of the reputation, creditworthiness, and nature of
the potential partners’ businesses before entering
a contractual relationship. This applies to both new
partners and current ones, where updates of previous
assessments are necessary. The policy creates
a context for centralized risk assessments at the
subsidiary level, aiming at mitigating reputational
risks, credit risks, and counterparty risks. Besides
the “Business Partner Knowledge Policy (customers
and suppliers)”, the suppliers of products, services
and works are assessed based on the “Supplier
Evaluation and Management Instruction”. Within
this process, the “Self-Assessment Questionnaire” is
used, which, among others, requests governance-
related information, such as the existence of a
Code of Ethics and Business Conduct or a policy for
money laundering prevention. In the case of DEER,
the company is not a reporting entity to ONPCSB,
as it does not fall under the categories mentioned
in Article 5 of Law 129/2019 and its implementation
rules. Therefore, the obligations provided in this
legislative framework, including the use of the Self-
Assessment Questionnaire for governance aspects
such as the code of ethics and the money laundering
prevention policy, are not applicable to DEER and
were not applied during 2024.
Electrica Group has not used the option to omit certain
information regarding intellectual property, know-
how or innovation results, as provided in section 7.7
of ESRS 1 on classified and sensitive information.
Electrica Group has not used the exception from
presenting
information
regarding
imminent
developments
or
aspects
under
negotiation,
according to the provisions of Article 19a paragraph
(3) and Article 29a paragraph (3) of Directive
2013/34/EU transposed by MFP Order no. 85/2024.
The Sustainability Reporting for Electrica Group covers
the value chain both upstream and downstream
in line with the requirements of ESRS 1, section 5.1
Reporting undertaking and value chain.
Accounting
policies
were
consistently
applied
throughout
the
financial
year
2024
and
are
detailed in this document. The use of estimates and
judgments will be periodically assessed, based on
the experience accumulated in the application of
accounting policies, the development of sustainability
reporting, and other relevant factors. Any changes
in the preparation or presentation of sustainability
information are recognized in the period in which
the respective estimate is reviewed. For additional
information about the key estimates, judgments, and
assumptions applied, please refer to the pages with
quantitative data tables regarding sustainability
information in this statement.
BP-2 Disclosures in relation to
specific
circumstances
For the preparation of this Sustainability Reporting,
Electrica Group has used short-term, medium-term,
or long-term horizons, as defined in ESRS 1, as follows:
short term (<1 year) similar to the reporting period
used for the 2024 financial statements, medium
term (1-5 years), between the end of the short-term
reporting period and up to five years, and long term
(>5 years), covering a period longer than five years.
Regarding the sources used for estimates and the
uncertainty of results, the Group acknowledges
the
uncertainties
associated
with
prospective
information and the fact that this can be subject to
changes. Where applicable, the assumptions and
rationales used for the estimates were defined.
Regarding greenhouse gas (GHG) emissions from
Scope 3, the company uses primary data from
suppliers whenever possible. When primary data
is not available, recognized sources are used and
methodologies compliant with the GHG Protocol are
adhered to, or indirect sources are used, such as
average sectoral data or other relevant information
sources that reflect activities in the value chain to
achieve a solid level of accuracy in the reported
emissions. Scope 3 emissions estimates were made
with a level of accuracy considered adequate.
However, given that they are based on indirect
sources and average sectoral data, there is a
certain degree of uncertainty associated with these
estimates. The level of accuracy of this data is defined
in this Sustainability Reporting, according to the
reporting requirement E1-6 from the ESRS E1 standard.
To improve the accuracy of Scope 3 emissions
estimates, Electrica Group aims at ensuring closer
collaboration with suppliers and partners in the value
chain, with the objective of collecting direct and as
accurate data as possible, thus reducing reliance on
average sectoral estimates. Planning such actions
in the medium and long term will be assessed to
ensure greater accuracy in the future and reduce
uncertainty. This information is extensively presented
in the ESRS E1 Climate Change chapter.
Furthermore, the Group has used estimates to
calculate various quantitative metrics and monetary
values included in this statement. Information
regarding the sources of uncertainty, assumptions,
approximations, and rationales applied by the
Group in the process of measuring these metrics are
detailed within each relevant topical standard that
includes such quantitative data.
Since 2024, the Sustainability Reporting of Electrica
Group is prepared in accordance with the Corporate
Sustainability Reporting Directive (CSRD) and the
European Sustainability Reporting Standards (ESRS).
The year 2024 is considered a reference year, and
no comparative data will be presented. At Electrica
Group level, comparative data will be included for
GHG emissions and EU Taxonomy. Thus, this document
contains possible corrections for previous reports
only regarding these metrics. Therefore, regarding
the calculation of carbon emissions for the three
scopes (Scope 1, Scope 2, and Scope 3) for 2023, it
was redone to ensure the alignment of information
collected for both 2024 and 2023 for all entities within
Electrica Group. This decision was driven by the need
to align all calculations to the same methodology
(GHG Protocol) and to meet ESRS requirements, with
2023 serving as the reference year for developing the
Group’s transition plan, which will be implemented
during 2025-2026.
Electrica Group has implemented and certified
integrated
Quality,
Environment,
Health,
and
Occupational
Safety
management
systems
at
the group company level, in accordance with the
requirements of international standards SR EN ISO
9001: 2015, SR EN ISO 14001: 2015, and SR ISO 45001:2018.
At ELSA level, additionally, the Information Security
Management System certification has been obtained
in accordance with the requirements of the SR EN
ISO/IEC 27001:2018 standard, as well as the Energy
Management System certification in accordance
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with the requirements of the SR EN ISO 50001:2019
standard.
Audits for each company within the Group were
conducted by auditors from the external certification
body SRAC Cert affiliated with IQNet.
Electrica Group has included the following data
points through references:
General Disclosures - ESRS 2–BP-1.5b i-ii: additional
details and information regarding Electrica Group’s
organizational structure
General Disclosures - ESRS 2-GOV-1 AR 21- 2
Information
regarding
the
composition
and
diversity of the administrative, management and
supervisory
bodies
General
Disclosures
-
ESRS
2-GOV-1.20a
–
Information
regarding
the
composition
and
diversity of the administrative, management and
supervisory
bodies
General Disclosures - ESRS 2-GOV-1 AR 5 –
Information regarding the assessment of the BoD’s
performance and access to external expertise
Governance
GOV-1 The role of the administrative, management and supervisory
bodies
The two structures fulfilling the management and supervision roles of the Company are the General Meeting
of Shareholders (GMS) and the Board of Directors (BoD).
Information
regarding
the
composition
and
diversity of the members of the management,
administrative, and supervisory bodies, according
to the requirements of ESRS 2-AR 21 points (a) and
(b), are detailed in the Administrator’s Report,
Chapter 4 – Corporate Governance in ELSA, which
is part of this Annual Report.
As of 31 December 2024, the gender distribution
of the BoD was 2:5 (female/male), representing a
distribution of 28.57%:71.43%.
ELSA’s BoD members have extensive experience in
fields relevant to the operations of the Group, being
competent in strategic management, corporate
governance, financial markets, auditing, and risk
management. Their expertise covers diverse sectors
such as energy, finance, commercial law, and public
administration,
contributing
to
the
sustainable
development of the company and strengthening its
market position.
Relevant
elements
regarding
the
professional
experience of the BoD members are presented below:
Mr. Mihai Diaconu, Chair and Non-Executive Director
of Electrica S.A., appointed on October 21, 2024,
has nearly 15 years of experience in central public
administration,
including
leadership
positions
in the Ministry of Finance, where he coordinated
the drafting of normative acts and strategies to
improve public financial services. Since February
2022, he has held the position of Secretary of State,
managing international judicial files and approving
the budgets of public enterprises. He has also held
positions in various Boards of Directors, such as at
Telecomunicatii C.F.R. S.A. and the National Credit
Guarantee Fund for SMEs. His competencies focus
on
corporate
governance,
financial
strategies,
and
public
resource
management,
which
are
essential in the context of Electrica S.A.’s activities.
Ms. Valentina Elena Siclovan is an independent
non-executive director since July 24, 2023, Chair of
the Audit and Risk Committee, and a member of the
Climate Governance and Public Affairs Committee
of the group. With over 20 years of experience in
leadership roles both in the public and private
sectors, Ms. Siclovan has held significant positions in
international finance and the energy sector. She was
VP Banking at the Black Sea Trade and Development
Bank and Vice President at Gaz de France Suez
(Engie). She has also served on various boards of
directors, including at Tarom and EnergoNuclear
SA. Mrs. Siclovan holds degrees in Finance and
Accounting and is certified in Corporate Governance
from INSEAD Fontainebleau.
Mrs. Georgiana Bogasievici has been a non-
executive director since January 26, 2024, and a
member of the Climate Governance and Public
Affairs Committee of the group. With a career in
law and public administration, Mrs. Bogasievici has
competencies in environmental management and
public procurement. She holds a master’s degree in
Civil and Procedural Law and professional training
courses in diplomacy. She also serves in the Ilfov
County Council.
Mr. Adrian-Florin Lotrean is an independent non-
executive director since April 28, 2021, Chairman of
the Nomination and Remuneration Committee, and
a member of the Audit and Risk Committee of the
group. With extensive experience in insolvency and
restructuring, Mr. Lotrean has coordinated significant
projects in the energy sector and has been involved
in the restructuring of large companies, such
as Electrocentrale Constanta and CET Arad. He
has also held the position of Chair of the Board of
Directors at the Municipal Thermal Energy Company
Bucharest, being involved in resuming investments in
Bucharest’s heating grid.
Mr. Cristian Mocanu is a non-executive director
since January 26, 2024, Chairman of the Strategy and
Corporate Governance Committee, and a member of
the Nomination and Remuneration Committee of the
group. With over 17 years of experience in business law,
Mr. Mocanu has been involved in various consultancy
projects and dispute resolution, with a particular
focus on insolvency and restructuring. He has also
advised clients from diverse sectors, from energy
and banking to IT&C and industrial production.
Mr. Dragos-Valentin Neacsu is an independent non-
executive director since April 28, 2021, Vice-Chair
of the Board of Directors, Chairman of the Climate
Governance and Public Affairs Committee, and a
member of the Strategy and Corporate Governance
Committee of the group. With extensive experience
in investment management and financial markets,
Mr. Neacsu has held significant roles in international
and national organizations, including the Bucharest
Stock Exchange. He is an active promoter of
sustainability and has represented the interests of the
independent directors’ community in consultations
with the European Commission regarding European
regulations.
Mr. Ion-Cosmin Petrescu has been a non-executive
director since April 28, 2021, a member of the
Nomination and Remuneration Committee and the
Audit and Risk Committee of the group. With extensive
experience in business development, sales, and
management, Mr. Petrescu leads IT activities, State
Aid, and Reporting at the National Credit Guarantee
Fund for SMEs and is involved in digitalization at
the Prime Minister’s Chancellery. Previously, he has
worked in the oil and gas sector, demonstrating
competencies in optimizing business processes and
Lean Management.
In terms of sustainability, the Board of Directors (BoD)
of Electrica Group oversees and controls the Group’s
activities, ensuring their alignment with long-term
strategic interests. In support of this role, the Strategy
and Corporate Governance Committee (CSGC)
and the Climate Governance and Public Affairs
Committee contribute to integrating ESG aspects
into the company’s strategy and decisions. The
responsibilities of the BoD include setting strategic
direction, monitoring the Group’s performance,
and aligning with market developments, according
to the provisions of ELSA’s Regulations of the
Board. Additional details can be consulted on the
official website: Corporate Governance Electrica.
Throughout 2024, Electrica Group developed a new
sustainability strategy covering the period 2025-
2030. According to this strategy, the non-executive
chair of the BoD ensures the supervision of ESG
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strategy implementation at the Group level.
In 2024, Electrica conducted training sessions
dedicated to strengthening the expertise and
competencies of the management and leadership
bodies in the sustainability field, as part of the
Electrica & BBS – Workshop Project. These sessions
addressed essential topics such as business strategy
and agility in the ESG context, ESG leadership,
strategic planning, and KPIs for the organization,
sustainable investments, reporting and control, as
well as business strategies in the energy sector.
These training sessions offer structured and applied
learning opportunities, supported by experts in
the field, reflecting Electrica’s commitment to
integrating ESG principles into corporate strategy
and
governance.
The responsibility for Electrica Group’s operational
activities is entrusted to the Executive Management,
according to the limits and regulations established
in the Internal Regulation (“RI”) and Organization and
Functioning Regulation (“ROF”) and other internal
corporate
documents
that
delegate
authority,
supported by an operational team of experienced
managers, who play a crucial role in implementing
operational
and
financial
plans,
monitoring
performance,
and
managing
operational
risks,
including sustainability aspects.
ELSA’s Executive Management
The Board of Directors can appoint and revoke the
executive members of ELSA, being also responsible
for approving their competency delegations. The
responsibilities of the non-executive and executive
members of the company are established through the
mandate contracts under which the BoD members
perform their activities, via ELSA’s Organization and
Functioning Regulation, and through the applicable
legal provisions.
The composition of the executive management
team as of December 31, 2024, is available in
the
Directors’
Report,
Chapter
4.6
Executive
Management of ELSA, which is part of this Annual
Report.
As of December 31, 2024, 50% of the executive
management team members were female and 50%
were male.
More details about the biographies of the current
executive managers can be accessed on ELSA’s
website: Executive Management ELSA.
ELSA’s
executive
management
team
has
ESG
responsibilities as follows: The CEO coordinates
the development of the ESG strategy, oversees its
implementation, and communicates with investors
and stakeholders. The CFO, who is also the ESG head
at the group level, ensures the financial resources
needed for ESG initiatives, coordinates ESG efforts
within the group, and the sustainability reporting to
the Board of Directors and the capital market.
Executive managers are responsible for reviewing
sustainability plans and initiatives, defining and
tracking ESG performance metrics through ELSA’s
integrated management system.
Regarding the annual process of developing the
Sustainability Reporting in accordance with the
requirements
of
the
Corporate
Sustainability
Reporting Directive (CSRD), European Sustainability
Reporting Standards (ESRS), and other related
reporting requirements within Electrica, this is
managed by the Executive Management in close
collaboration with the CGCPP committee, which
endorses relevant documents and subsequently
submits them to the BoD for approval.
The responsibility for the annual sustainability
reporting lies with the Sustainability Team within
the
Finance
Directorate,
coordinated
by
the
Finance Director, in collaboration with the extended
Sustainability Team. The team oversees the process
and assesses whether the departments involved
have the necessary resources and expertise to
contribute effectively to the report.
Advisory Committees
During 2024, the activity of the Board of Directors was
supported by four consultative committees:
• The Nomination and Remuneration Committee,
• The Audit and Risk Committee,
• The
Strategy
and
Corporate
Governance
Committee, and
• The Climate Governance and Public Affairs
Committee.
Each of these committees is composed of three
directors and chaired by one of them. The members
of the consultative committees are elected for a
period of one year.
The composition of the four committees, in terms
of gender, as well as the complete list of each
committee’s duties, can be consulted by accessing
the Corporate Governance section within the
Directors’ Report, which is part of this Annual
Report.
Responsibilities of the Committees
The Nomination and Remuneration Committee
recommends to the BoD the application of policies in
the field of human resources, including recruitment
and dismissal, talent management and development,
and succession planning within the company and
its subsidiaries. This committee also oversees the
annual evaluation process of the effectiveness of the
BoD and its consultative committees, as well as their
remuneration policy.
The Audit and Risk Committee is responsible for
periodically verifying and monitoring the main risks,
including those related to sustainability, and making
recommendations to the BoD regarding financing
methods and significant economic transactions.
The Strategy and Corporate Governance Committee
has duties related to the review of the Delegation
for Authority Policy and the Authority Delegation
Standard within the company to maintain an
effective and efficient decision-making process and
makes recommendations to the BoD in this regard.
In addition to periodically reviewing the overall
strategic planning process, developing proposals
regarding long-term strategic direction, acquisitions
and investments, this committee is also responsible
for reviewing the Corporate Social Responsibility
Policy and Stakeholder Engagement.
The
Climate
Governance
and
Public
Affairs
Committee
has
the
following
responsibilities:
• ensuring
the
framework
for
implementing
initiatives that contribute to achieving the EU’s
goal of zero greenhouse gas emissions by 2050;
• implementing the Principles of the World Economic
Forum for effective climate governance;
• ensuring the long-term resilience of the Group’s
companies from the perspective of potential
structural changes in the business environment
resulting from climate change;
• ensuring an optimal level of knowledge, relevant
experience, and the capacity to support the
necessary debates within the decision-making
process of the BoD, considering the risks and
opportunities arising from climate change;
• determining the most effective way to integrate
climate
change
considerations
into
the
organizational structures of the Company;
• monitoring the continuous evaluation process,
at the executive management level, of the
materiality of risks and opportunities derived
from climate considerations for the Company, in
the short, medium, and long term;
• ensuring regular exchange of opinions and
continuous dialogue at the industry level with
policymakers, investors, and other stakeholders,
to encourage the common use of relevant
methodologies and information sharing;
• ensuring
consistent
and
transparent
communication of identified material climate
risks to all stakeholders, especially investors, and,
where necessary, regulatory and supervisory
authorities;
• defining
a
set
of
long-term
performance
objectives and key performance metrics (KPIs)
that contribute to achieving the objective of “zero
impact of greenhouse gas emissions produced
by Electrica Group’s activity on the environment,”
which will be proposed to the BoD for approval;
• making recommendations regarding the setting
of annual targets for the KPIs falling under the
responsibility of the executive management,
following
consultations
with
the
executive
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management
and
after
obtaining
their
commitment;
• ensuring the alignment of executive management
compensation methods to promote the long-
term
sustainability
and
prosperity
of
the
Company. The Committee will consider issuing
recommendations for including KPIs related
to climate objectives within the remuneration
schemes provided in the Remuneration Policy for
Directors and Executive Managers;
• monitoring and evaluating the achievement of
KPIs related to climate objectives and making
recommendations to the BoD regarding their
revision or taking sanctioning measures, as
appropriate;
• periodically
reviewing
internal
policies
and
regulations that impact climate objectives and
making recommendations to the BoD regarding
the adequacy of investment levels necessary
to achieve climate objectives within the set
timeframe;
• ensuring a climate of trust by collaborating
with investors to understand their interests and
priorities to achieve effective climate governance.
The functioning of the Climate Governance and
Public Affairs Committee is regulated by the Board
of Directors through a document that is publicly
available on the company’s website. The regulation
establishes the rules of organization and operation of
the committee, as well as its specific responsibilities,
thus ensuring a formal and efficient structure for
achieving its objectives.
The
Climate
Governance
and
Public
Affairs
Committee met 10 times during 2024, and among the
topics discussed were:
• Assessment and Endorsement of Electrica Group’s
Sustainability Strategy 2025-2030,
• Assessment and proposal of ESG partnerships.
The activity of the Board of Directors and of the advisory
committees is subject to an annual assessment
carried out either through self-evaluation or with the
support of an external consultant. For the year 2024,
the assessment was conducted with the help of an
external consultant.
The topics covered and the results of the assessment
carried out in 2024 are detailed in the Annual
Report 2024, in the section Activities of the Board
of Directors of ELSA and its advisory committees in
2024 within the Directors’ Report, which is part of
this Annual Report.
Subsidiaries’ Boards of Directors
The Boards of Directors of ELSA subsidiaries
and their composition throughout 2024 can
be consulted by accessing the Corporate
Governance section in ELSA subsidiaries ->
Boards of Directors of ELSA subsidiaries within
the Directors’ Report, which is part of this Annual
Report.
Executive
Management
at
the
subsidiary
level and their composition throughout 2024
can be consulted by accessing the Corporate
Governance section in ELSA subsidiaries ->
Executive management of ELSA subsidiaries
within the Directors’ Report, which is part of this
Annual Report.
The
CEO
of
the
subsidiary
ensures
the
implementation of the ESG strategy in all
subsidiary operations. The nominated executive
manager, who is the ESG officer of the subsidiary,
is responsible for implementing ESG initiatives
at the local level, while the executive managers
are responsible for reviewing initiative plans
and implementing ESG performance metrics
in the subsidiary’s performance management
system.
As of December 31, 2024, the Board of Directors
of Electrica Group consists of seven members,
all with non-executive positions, of which four
are independent, representing 57% of the total
composition.
As of December 31, 2024, the number of members of
the Board of Directors by age groups is:
Age group
Number
under 30 years old
0
30-50 years old
5
over 50 years old
2
As of December 31, 2024, the number of members of the management executive team by age groups is:
Age group
Number
under 30 years old
0
30-50 years old
3
over 50 years old
1
As of December 31, 2024, the distribution of BoD members by gender:
Gender
Number
Percent
Female
2
28%
Male
5
72%
As of December 31, 2024, the composition of the BoD members of the companies in Electrica Group by gender:
Company
Gender
Number
Percent
EFSA
Female
1
25%
Male
3
75%
DEER
Female
4
80%
Male
1
20%
SERV
Female
1
33%
Male
2
67%
As of December 31, the age group distribution of BoD members in the companies within Electrica Group is as
follows:
Company
Age group
Number
Percent
EFSA
under 30 years old
0
-
30-50 years old
3
75%
over 50 years old
1
25%
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Company
Age group
Number
Percent
DEER
under 30 years old
0
-
30-50 years old
2
40%
over 50 years old
3
60%
SERV
under 30 years old
0
-
30-50 years old
3
100%
over 50 years old
0
-
Within the company, the administrative, managerial,
and supervisory bodies are represented by the Board
of Directors (“BoD” or “Board”), Advisory Committees
(Audit
and
Risk
Committee,
Nomination
and
Remuneration Committee, Strategy and Corporate
Governance Committee, Climate Governance and
Public Affairs Committee), and senior executive
management. The Board of Directors is responsible for
the overall strategy and governance of the company
and overseeing its activities, while the mentioned
committees have specific roles in supporting the
BoD in their areas of expertise, respectively audit,
risk,
nomination,
remuneration,
strategy,
and
understanding the threats and opportunities arising
from climate change.
The responsibilities of each body or individual are
reflected in the company’s governance documents,
including the Articles of Incorporation, Regulations
of the Management Board, and Governance Policy.
These documents define the roles and duties of the
management bodies and advisory committees,
which are aligned with the Group’s objectives
regarding risks, opportunities, and impacts, including
medium and long-term goals.
The responsibility for overseeing environmental,
social, and governance (ESG) aspects lies with
the Board of Directors of Electrica Group, which
has the role of integrating sustainability aspects
into the Group’s strategy and operations. These
responsibilities extend to the management structures
within each subsidiary of the Group, supporting the
implementation and coordination of sustainability
initiatives. Electrica Group’s management monitors
sustainability progress through periodic reporting,
at
least
annually,
through
the
consolidated
Sustainability
Statement.
Roles and responsibilities are delegated to specific
committees of the Board of Directors, each with a
defined mission as follows:
• The Audit and Risk Committee focuses on
assessing and monitoring the Group’s financial
and operational risks, ensuring the integrity of
financial reporting processes and managing
associated risks.
• The Climate Governance and Public Affairs
Committee is responsible for identifying and
evaluating risks and opportunities related to
climate
change,
analyzing
and
approving
Electrica Group’s Sustainability Strategy, and
proposing partnerships on sustainability and
ESG topics. All this aims at promoting long-term
sustainability and at ensuring an adequate
strategic framework for achieving the Group’s
climate objectives.
The
management
bodies
and
the
Climate
Governance and Public Affairs Committee have a role
in establishing and monitoring long-term climate
risks and sustainability targets. The Committee
proposes relevant performance targets/objectives
and metrics for reducing emissions and achieving
sustainability goals. They are then monitored through
annual reports and evaluations, and progress is
assessed based on performance metrics.
The Climate Governance Committee and Public
Affairs
is
responsible
to
assess
the
progress
made towards sustainability objectives and make
recommendations to the BoD regarding necessary
adjustments.
Annual reporting is the main mechanism through
which Electrica Group’s management monitors
sustainability
progress.
The administrative, managerial, and supervisory
bodies within Electrica Group ensure the development
and updating of the necessary competencies for
overseeing sustainability aspects through training
and
access
to
relevant
expertise.
The
entire
operational team, including executive management
and responsible managers, participated in 2024 in
various ESG working groups discussing new reporting
requirements according to CSRD, legislative updates,
and sustainability regulations relevant to the Group’s
field of activity.
The presence of representative unions in each
subsidiary and the fact that approximately 98% of
Electrica Group ‘s employees are union members
ensures respect for employees’ rights and promotes
a stable and equitable working environment. The
absence of union actions in 2023 and 2024 reflects
a solid and constructive relationship between
management
and
employees,
contributing
to
increased workforce satisfaction and motivation.
GOV-2 Information provided to and sustainability matters addressed by
the undertaking’s administrative, management and supervisory bodies
The Board of Directors considers material impacts,
risks, and opportunities when overseeing the group’s
strategy, major decisions, and risk management
processes.
The Climate Governance and Public Affairs Committee
(CGCPP) periodically reviews internal policies and
regulations impacting climate objectives, monitors
and evaluates the achievement of performance
metrics related to these objectives, and issues
recommendations to the Board of Directors. During
the reporting period, the Committee addressed
topics such as the analysis and approval of the
Group’s 2024-2030 Sustainability Strategy, as well as
the analysis and proposal of ESG partnerships.
In 2024, Electrica Group developed an internal
methodology for conducting the double materiality
assessment (DMA) in accordance with the provisions
of ESRS 1 and ESRS 2. This process will be updated
annually or biennially, with the involvement of
management structures in workshops dedicated
to establishing material topics and assessing
the
sustainability
related
impacts,
risks,
and
opportunities. The responsibility for implementing
this internal methodology has been assigned to
the sustainability coordination team, consisting of
members from ELSA’s management and the extended
sustainability team, formed from staff allocated from
the Group’s subsidiaries. Additionally, starting in
2024, at ELSA level, the parent company coordinating
the entire Group’s activity, an ESG Department was
established, along with other specialized positions
on this topic within the Treasury Department. This
mixed sustainability team is not only responsible
for coordinating, but also for implementing the
entire sustainability reporting process, including by
establishing/reviewing policies, action plans, and
targets necessary for managing all sustainability
matters for the Electrica Group.
Throughout 2024, information on the sustainability
reporting process and material impacts, risks,
and opportunities identified through the DMA was
communicated to the Board of Directors and CGCPP
by the sustainability coordination team. In 2024, the
internal DMA methodology allowed for a detailed
assessment of impacts, risks, and opportunities
correlated with the sustainability topics mentioned in
ESRS 1. The CGCPP was informed at least twice during
the DMA process about its progress and, at the end,
about the results. The information included a list of
material impacts, risks, and opportunities, the results
of the assessment, and details regarding stakeholder
consultation.
In 2025, sustainability efforts will continue with the
implementation of proposals from the sustainability
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coordination team after confirmation with relevant
governance structures, namely the Board of Directors
and CGCPP. These proposals focus on policies,
action plans, metrics, and targets necessary for
effectively managing all material impacts, risks, and
opportunities identified through the DMA process,
as well as initiating related activities – climate risk
and vulnerability assessment, transition plan, etc.
In the following year, CGCPP will be informed by the
sustainability coordination team at least once or as
needed about the results and effectiveness of the
policies, actions, and metrics adopted for managing
these aspects. This information will subsequently
be presented to the Board of Directors to support
strategic decisions in line with the Group’s business
objectives.
Starting in 2025, the Group’s strategy will be reviewed
annually or biennially to include sustainability related
impacts, risks, and opportunities resulting from the
DMA process, adapting, where possible, the Group’s
business decisions. In this regard, a robust risk
management framework will be developed to enable
early identification of emerging risks and evaluation
of
innovation
and
growth
opportunities.
The
perspectives of stakeholders will be considered, who
will be consulted in each DMA process to evaluate how
the BoD’s decisions affect communities, employees,
and
the
environment.
Managing
sustainability
related impacts, risks, and opportunities will be an
essential part of the decision-making process for
major projects and the implementation of a new
strategic sustainability objective.
Based on the double materiality assessment, Electrica
Group developed a new sustainability strategy for
2025-2030, approved in December 2024. In developing
the sustainability strategy, the management bodies
evaluated how the impacts, risks, and opportunities
identified through the materiality assessment could
influence both business and sustainability objectives.
DMA results also influence decisions regarding the
development and improvement of reporting systems
within Electrica.
In 2024, the administrative, management, and
supervisory bodies addressed the following matters
to develop the new ESG strategy for 2025-2030 and
to manage these matters continuously throughout
the year:
Brief description of impacts, risks, and
material opportunities addressed by
the administrative, management, and
supervisory bodies or relevant committees
Responsible administrative,
management, and
supervisory bodies
Frequency
Programs and initiatives regarding greenhouse
gas emission reduction and implementation of
development initiatives of a decarbonization plan
CGGPP Committee
Board of Directors
Annual
Development of social initiatives to support local
communities
Board of Directors
Executive Team
ESG Manager
Quarterly
Implementation of an educational program in the
ESG area for company employees
CEO
ESG Manager
Realized in 2024
Developing external partnerships about
information and collaboration initiatives in the
field of sustainability
Board of Directors
CEO
ESG Manager
Annual
These aspects are included in the updated Sustainability Strategy of the Group, which will be validated and
integrated into strategic decisions through the active involvement of the administrative, management, and
supervisory bodies and cascaded down to the subsidiaries.
GOV-3 Integration of sustainability-related performance in incentive
schemes
The Remuneration Policy for Directors and Executive
Managers sets the thresholds and guidelines for
remuneration, the remuneration structure, and the
mechanisms to ensure the alignment between
remuneration
levels—both
financial
and
non-
financial—for the BoD members, executive managers
within Electrica, and executive managers (with
mandate contracts) from subsidiaries.
The remuneration level is determined by external
factors such as market practices and sector-
specific conditions, along with internal factors,
including ensuring internal equity, the company’s
business strategy, and other relevant elements. The
remuneration policy is periodically reviewed, at least
once every four years, by the Board of Directors, with
the support of the Nomination and Remuneration
Committee (NRC) and subject to approval by
the General Meeting of Shareholders (GMS). The
most recent review of the remuneration policy was
approved at the Electrica GMS in April 2023, without
changes to the previously established remuneration
limits for directors and executive managers, and
it may be consulted on Electrica Group’s website.
Starting in 2022, Electrica has prepared and published
the Remuneration Report for Directors and Executive
Managers in accordance with the provisions of Law
no. 24/2017 on issuers of financial instruments and
market operations. The report provides an overview
of the remunerations and benefits granted and/or
due to the persons concerned during the reference
financial year, individually, including newly recruited
executives and former executive management
members, in accordance with the applicable policy.
The incentive systems established by the company
for the members of the administrative, management,
and supervisory bodies are based on a combination
of fixed and variable remuneration. The variable
remuneration is linked to the financial, operational,
and
sustainability
performance
of
the
Group,
considering short, medium, and long-term objectives.
Directors do not receive variable remuneration.
Performance
assessment
also
considers
sustainability related targets. These targets include,
but are not limited to, reducing GHG emissions,
increasing energy efficiency, and implementing
sustainable and renewable energy projects. These
objectives are included in the performance metrics
and are monitored to ensure alignment with the
Group’s
sustainability
strategies.
The proportion of variable remuneration dependent
on sustainability related targets varies based on
hierarchical level and the responsibilities of each
position. For members of the BoD and of the executive
management, a portion of the variable remuneration
is tied to achieving sustainability related goals.
Variable remuneration (annual or long-term) is
directly correlated with the performance objectives
and metrics, as follows:
• Performance metrics are linked to achieving
sustainable financial results in the partially
regulated context in which Electrica Group
operates (e.g., EBITDA, investment plans) as well
as non-financial performance acknowledged
by
stakeholders
(e.g.,
zero-tolerance
for
occupational accidents, increasing occupational
safety, etc.);
• Specific
short-term
(annual)
performance
metrics are related to projects and initiatives
with
an
annual
implementation
timeframe,
ensuring the achievement of medium and long-
term strategic objectives (e.g., implementation
of transformation/modernization projects for
the Group’s operational entities, digitalization
projects, and IT&C infrastructure modernization),
allocated to each Manager based on their
contribution, according to the responsibility
areas managed through the mandate contract;
• Long-term
performance
metrics
consider
achieving medium and long-term strategic
objectives as established by the Company’s
strategy,
including,
for
example,
business
development in the green energy sector.
The amount of total variable remuneration is
calculated to be directly related to the individual
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performance level, determined by the undertaken
performance metrics, as well as the company’s
financial performance and the Group’s overall
results, with the possibility of non-payment of
the variable component in case of unsatisfactory
performance. Thus, if the minimum acceptable level
of a performance indicator is not met, the Manager
will not be entitled to the corresponding variable
remuneration. The value of variable remuneration
(both annual and long-term) will be limited to a
maximum of 100% of the total achievement of the
relevant performance metrics.
The conditions for the incentive systems for the
members of the Board of Directors and the executive
management team are established and approved
by the GMS, based on proposals developed by the
Nomination and Remuneration Committee.
At the level of the BoD and Executive Management,
the purpose of the annual variable remuneration
is to stimulate and recompensate performance,
corresponding to the fulfillment of the financial
and non-financial annual targets. The performance
indicators are established annually by the BoD,
at the recommendation of the Nomination and
Remuneration Committee, and are structured per
three separate categories, each of them with different
quotas according to the roles and responsibilities
of each executive manager: financial indicators -
30%/40%, specific indicators - 50%/40% and individual
indicators - 20%. During the financial year 2024,
Electrica Group included at least one sustainability
objective (respectively a percentage that varies
between 15% and 25% of specific performance metrics)
for the Executive Management members responsible
for the company’s daily operations. To operationalize
and implement the plan for 2024, Electrica Group
has established a three-year action plan which
details the indicators, deadlines, and minimum
required level of achievement. This initiative reflects
Electrica’s commitment to integrating sustainability
into all aspects of its activities and ensuring effective
governance in line with the highest environmental
and social standards.
GOV-4 Statement on due diligence
The due diligence process of Electrica Group is designed to identify, prevent, mitigate, and respond to actual
and potential negative impacts on the environment and people.
Thus, compliance with and application of internal policies and regulations is verified by the Audit and Risk
Committee or by the departments designated for this purpose.
For the supply chain, no verification processes were carried out during the reporting period. Currently,
contracts with suppliers include clauses that address their commitment to sustainability matters.
Core elements of Due
Diligence
Paragraphs in the Sustainability Statement
a) Embedding due diligence in
governance, strategy, and
business model
ESRS 2 - GOV-2
ESRS 2 - GOV-3
ESRS 2 - SBM-3
b) Engaging with affected
stakeholders at all key due
diligence stages
ESRS 2 - GOV-2
ESRS 2 - SBM-2
ESRS 2 - IRO-1
Disclosure Requirements on policies in topical ESRS
Disclosure requirements for engagement processes in social ESRS
c) Identifying and assessing
adverse impacts
ESRS 2 - IRO-1
ESRS 2 - SBM-3
d) Taking actions to address
those adverse impacts
Relevant DRs for actions in topical ESRS
Relevant DRs for transition plans in environmental ESRS
e) Tracking the effectiveness of
these efforts
Relevant DRs for metrics in topical ESRS
Relevant DRs for targets in topical ESRS
GOV-5 Risk management and internal controls over sustainability
reporting
The process of risk management and internal control regarding sustainability reporting is part of the risk
management process, which is an integral part of the Group’s management and is adapted to the business
processes within the Group. The risk management policy aims at implementing the principles defined by SR
ISO 31000:2010 Risk Management at the organizational level. An aggregate report is prepared annually and
presented to the Board of Directors of ELSA, accompanied by the financial statements.
However, to ensure an effective risk management and a solid internal control system, it is necessary to
implement a robust internal governance framework within Electrica Group, covering also the preparation
process of the Sustainability Statement. According to the CSRD and ESRS requirements, sustainability
reporting is integrated into the Consolidated Annual Report, which includes the directors’ report and the
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consolidated financial statements. Therefore, the
review and approval process for this statement
for 2024 followed the same rigorous procedures
applicable to the approval of the consolidated
financial statements. Thus, the Board of Directors is
the governance body that reviews and approves the
sustainability reporting. Prior to the approval by the
BoD, the CGCPP and the Audit and Risk Committee
are responsible for monitoring the process, including
the effectiveness of corporate governance, internal
control systems, and risk management related to
sustainability reporting.
The Audit and Risk Committee within the Board of
Directors of ELSA has the highest governance level
with a role in reviewing the effectiveness of the
organization’s risk management processes.
The responsibilities of the Audit and Risk Committee
regarding risk management activities are:
• periodically checking the main risks to which the
Group is exposed, recommending appropriate
policies to the BoD for identifying, mapping,
managing, and reducing risks;
• monitoring the main categories of risks to
mitigate and evaluate the effectiveness of the
Group’s risk management system;
• making recommendations to the Board of
Directors regarding the financing of capital and
debt;
• making recommendations to the Board of
Directors
regarding
significant
economic
transactions under the competence of the
General Assembly of Shareholders and evaluating
the risks associated with such transactions.
The
consolidated
Sustainability
Statement
is
prepared annually by the Sustainability Team within
the Financial Department, led by the Chief Financial
Officer, together with the extended sustainability
team. The coordination team manages the entire
process
of
preparing
the
sustainability
report
and reports to the governing bodies whether the
departments and teams involved have sufficient
resources, tools, or professional training courses
to fulfill their tasks, including contributing to the
preparation of this statement.
At the executive management level, in each company
within Electrica Group there is a Risk Oversight
Committee, consisting of the CEO, the Chief Financial
Officer, and the Risk Manager. This committee’s main
purpose is to analyze the main risks faced by the
company and make recommendations regarding
risk management through specific measures.
In 2024, there was no formalized risk management
process related to sustainability reporting at the
Group level. However, during the year, a process
was initiated to develop such a policy, which is to be
completed in 2025.
The
internal
reporting
framework,
including
financial reporting, has a common objective: to
provide
relevant
information
to
investors
and
other
stakeholders.
Material
information
from
the perspective of the Sustainability Statement is
analyzed and assessed in the process of preparing
the financial statements. The Group applies the same
level of rigor in evaluating and reporting financial
information, as well as sustainability aspects. Both the
annual financial statements and the Sustainability
Statement are subject to an external audit by an
independent audit firm, and both audit reports are
brought to the attention of the Board of Directors.
As relevant aspects are identified in the internal
control and data review process for sustainability
reporting, they are communicated to the teams
involved in the report preparation process and
considered for continuously improving the reporting
quality.
Regarding material sustainability risks, Electrica
Group makes a distinction between risks identified
through the double materiality assessment process
and other operational or strategic risks. All risks
considered material following the DMA are presented
in the chapters dedicated to each material topic in
section SBM-3 or IRO1, as applicable.
Currently, no other material sustainability-related
risks have been identified, apart from those evaluated
through the DMA, which constitute major priorities for
the company. However, as the internal governance
framework regarding sustainability is consolidated,
including through the development of the formal risk
management policy on sustainability (scheduled
for 2025), additional risks will be reassessed, and
appropriate mitigation measures will be established
if necessary.
Strategy
SBM-1 Strategy, business model and value chain
Activity and strategy of Electrica Group
Electrica Group is one of the main distributors and suppliers of electricity on the Romanian market, with
extensive coverage in the country’s major cities, such as Bucharest, Brasov, Cluj-Napoca, Timisoara, Iasi, Sibiu,
Constanta, and many others. The Group’s main business segments consist of the distribution of electricity to
users, the supply of electricity to household and non-household consumers, the segment of services pertaining
to external distribution grids, as well as the segment regarding the production of electricity from renewable
sources. The Group serves the corporate market with energy service packages, addressing a vast portfolio of
clients. Electrica also covers the individual consumer market, including clients who directly pay for services
and those who benefit from services through various sustainability programs. The energy services segment is
well represented through the distribution of electricity and the provision of innovative energy solutions.
Thus, besides the parent company, ELSA, the main activities of the Group’s subsidiaries are structured as
follows:
Subsidiary
Activity
DEER
Electricity distribution in the geographical areas of North
Transylvania, South Transylvania, and North Muntenia
EFSA
Electricity trading and natural gas supply
SERV
Services in the energy sector (maintenance, repairs, construction)
SWE
Electricity production
NTE
Electricity production
FPE
Electricity production
CPP
Electricity production
Significant groups of products and services offered
by Electrica Group include:
• Electricity distribution – Electricity supply through
an extensive distribution grid.
• Energy
efficiency
services
–
Solutions
for
optimizing energy consumption and reducing
costs.
• Energy consulting services – Consulting for the
implementation of efficient energy solutions.
• Commercializing energy products – Products
for energy efficiency and renewable energy
solutions.
• Monitoring and control services – Advanced
systems for monitoring and controlling energy
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consumption.
• Sustainability services – Solutions for reducing
carbon footprint and promoting sustainability.
• Digitization services – Digital platforms for
managing energy consumption and customer
interaction.
• Energy infrastructure services – Development
and modernization of energy infrastructure.
• Education and awareness services – Programs to
educate and raise awareness among consumers
about energy efficiency.
• Significant customer groups served:
• Company employees - Beneficiaries of energy
service packages and corporate solutions.
• Individual consumers - Accessing energy services
based on direct payment or through various
sustainability programs.
• Families - Clients of energy efficiency services
and renewable energy solutions.
• Sustainability-focused clients - Those accessing
solutions to reduce carbon footprint and promote
sustainability.
• Energy infrastructure market clients - Those
benefiting
from
the
development
and
modernization of energy infrastructure.
Electrica Group does not conduct activities in the
sectors mentioned by ESRS reporting requirement 40
d). Specifically, Electrica does not generate revenue
from the fossil fuel sector, including exploration,
mining, extraction, production, processing, storage,
refining or distribution (coal, oil, and natural gas),
except for natural gas supply at EFSA level. Electrica
does not generate revenue from activities aligned
with taxonomy related to fossil gases, as per
applicable provisions. Additionally, Electrica Group
does not engage in the manufacturing of chemical
products falling under division 20.2 of Annex I to
Regulation (EC) No 1893/20061. The group is also not
involved in the field of controversial weapons, such
as anti-personnel mines, cluster munitions, chemical
or biological weapons, nor in the sector of tobacco
cultivation or production. Electrica does not have any
products or services prohibited on certain markets.
All revenues generated by Electrica Group come
exclusively from activities aligned with its principal
line of business, namely energy services as detailed
earlier, without including any of the aforementioned
sectors, as presented in the consolidated financial
statements for the year ended December 31, 2024.
Electrica Group focuses its development strategy on
consolidating its leading position in the Romanian
energy services market and expanding its presence
nationally and internationally.
The Group’s outputs include energy distribution
and supply services, energy efficiency and modern
infrastructure solutions. The benefits generated
include
energetic
safety,
cost
reduction
for
customers, information and education, respectively
increased long-term value for investors.
Regarding the main strategic directions undertaken
through the Corporate Strategy for the period 2024
– 2030, and through the Sustainability Statement
applicable in 2024, these have aimed at:
• Contributing to the transition to a green economy;
• Promoting
grid
security
and
business
sustainability;
• Accelerating digital transition in the Group’s
operations.
The sustainability related objectives presented are
linked to the electricity supply and support the energy
transition for individual and industrial customers.
The general objectives for 2030 proposed in the
corporate strategy cover all operations of the Group,
and one of the general objectives of the Strategy is
precisely the implementation of sustainability and
ESG aspects in business models, which involves
among others, implementing a comprehensive
governance framework for stakeholder engagement,
and promoting sustainable practices at the Group
level.
Additionally, for the reporting period, the Group has established that it will contribute to achieving the following
Sustainable Development Goals:
Ensuring quality education and promoting lifelong learning opportunities for all
Achieving gender equality and empowering all women and girls
Ensuring access to affordable, reliable, sustainable, and modern energy for all
Promoting sustained, inclusive, and sustainable economic growth, full and productive
employment, and decent work for all
Building resilient infrastructure, promoting inclusive and sustainable industrialization, and
fostering innovation
Ensuring sustainable consumption and production patterns
Taking urgent action to combat climate change and its impacts
The ESG pillars established in the Sustainability Strategy 2024-2030 are:
• Environment
• Environmental protection
• Carbon footprint
• Energy consumption
• Waste management
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• Social
• Occupational safety and security
• Ensuring a skilled workforce
• Diversity and inclusion
• Community impact
• Governance
• Compliance
with
ethics,
integrity,
anti-
corruption, and non-discrimination regulations
in business and within the company
• Consumer data protection
• Cybersecurity management
In accordance with the ESG implementation model
established by the Group’s Sustainability Strategy
2024-2030, responsibilities in the development,
monitoring, and implementation of the Strategy
at ELSA level and its subsidiaries are held by the
administrative,
management,
and
supervisory
bodies, executive teams, and ESG teams.
Regarding the development and monitoring of the
Strategy, the following are involved:
1. Board of Directors
a. ELSA’s BoD: The non-executive chair of the BoD
ensures the supervision of the ESG strategy
implementation at the Group level, while
the Climate Governance and Public Affairs
Committee is responsible for evaluating and
monitoring the impact on all subsidiaries.
b. Subsidiaries’ BoDs: The non-executive chair is
responsible for supervising the implementation
strategy at the subsidiary level, while the ESG
officer monitors ESG integration in all operational
aspects of the subsidiary.
2. Executive team
a. ELSA’s Executive Team: ELSA’s CEO coordinates
the development of the ESG Strategy, ensures
the implementation of the strategy at ELSA
level, and communicates with investors and
stakeholders. ELSA’s CFO, who is also the Group
ESG Officer, ensures financial resources for ESG
initiatives, coordinates ESG efforts across the
Group, and reports to the administrative body
and the capital market.
b. Executive
team
at
each
subsidiary:
The
subsidiary’s CEO ensures the implementation
of the ESG strategy in all subsidiary operations,
while the designated Executive Director, who is
also the subsidiary ESG Officer, is responsible for
implementing ESG initiatives locally.
3.Sustainability team & ESG Department
a. ESG Department/ESG Team ELSA: The primary role
is represented by the planning, implementation,
and monitoring of the ESG strategy at the
Group and subsidiary levels. Key responsibilities
include:
• Developing
a
Group-level
sustainability
strategy aligned with the Group Corporate
Strategy;
• Building and consolidating a dedicated ESG
system to automate data collection necessary
for reporting;
• Conducting a double materiality assessment.
Another important role is communication
and
consultation,
establishing
a
formal
dialogue process with stakeholders, as well
as ESG education and training, which involves
developing a continuous training program for
employees to enhance their awareness and
skills in the ESG field.
b. Subsidiary ESG Department / ESG Team
The
subsidiary
ESG
officer
ensures
the
effective implementation of the ESG strategy
at the subsidiary level, monitors local ESG
performance, and prepares periodic reports
for the Group ESG team and the subsidiary’s
administrative, management, and supervisory
bodies.
In 2024, considering new sustainability trends,
legal sustainability requirements, and the double
materiality assessment, the company worked on
developing a new sustainability strategy for the 2025-
2030 period. The Group’s 2025-2030 Sustainability
Strategy was adopted at the Board of Directors
meeting on December 17, 2024, and an executive
summary was published on the company’s website.
The new strategy, which will form the basis for future
reporting exercises, is structured around six pillars:
• Green energy and modern infrastructure for a
sustainable future
• Diversification of services and products to align
with the green transition
• Safety, development, and inclusion for a just
future
• Social responsibility for sustainable community
development
• Digitalization,
innovation,
and
operational
optimization
• Sustainable, responsible, and ethical business
practices.
Business Model and Value Chain
The
governance
model
of
Electrica
Group
is
constantly adapted, both individually and at Group
level, to be aligned with the increasingly demanding
requirements of the capital market and best
practices in corporate governance, as well as to
increase
competitiveness.
The Sustainability Statement does not only cover
Electrica Group’s own operations but it also includes
relevant information from the value chain, both
upstream
and
downstream
where
applicable.
The double materiality assessment included an
evaluation of impacts associated with the Group’s
own operations, products, and services, as well as its
business
relationships.
Electrica Group’s value chain is built on the individual
value chains of each company within the Group.
Each company within the Group manages its own
value chain according to its field of activity.
According to its Code of Ethics and Business
Conduct, ELSA uses clauses regarding sustainable
development/environmental policy in commercial
relationships
with
suppliers
and
partners.
Furthermore, the 2024-2030 Sustainability Strategy
established that the ESG department/ESG team of
each subsidiary promotes ESG standards in relations
with local suppliers and partners. Additionally, one
of the objectives of the 2024-2030 Sustainability
Strategy for Pillar III – Governance – is to develop
a culture of sustainability within the Group and the
supply chain. An initiative aimed at achieving this
objective is the periodic evaluation of suppliers
based on ESG criteria.
The main inputs used by Electrica Groups are
electricity acquired and/or internally produced
(including from renewable sources), equipment and
materials for distribution grids, digital infrastructure,
employees’ technical skills and know-how for
maintenance and energy related consultancy.
Within Electrica Group, the Policy on Knowing Business
Partners (customers and suppliers) is implemented,
and the Procurement Policy is approved in the Boards
of Directors of the subsidiaries. According to internal
procurement procedures, suppliers of products,
services, and works are evaluated based on the
„Supplier Evaluation and Management” Instruction,
which is applicable within ELSA, EFSA, and SERV (FISE).
This process also involves the Self-Assessment
Questionnaire, which collects relevant information
regarding corporate governance, including the
existence of a Code of Ethics and Business Conduct
and an anti-money laundering policy. For purchases
made by DEER, the supplier evaluation process is
subject to Law 99/2016 on sectoral acquisitions,
respecting a distinct regulatory framework different
from that applied in other entities of the Group.
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Products and Services
The company provides distribution, supply, and renewable energy production services as follows:
Distribution
Supply
Production
Services
~3.97 million users
~3.5 million
consumption points
Renewable electricity
from wind and
photovoltaic sources
42.1% - Projects carried out with
external clients
56.8% - Projects carried out
within the group
1.1% - Rent
During the reporting period, there were no significant changes in the product and service groups offered.
Employees and Geographic Structure
Electrica Group has a total of 7,794 employees2, distributed as follows:
• ELSA: 88 employees
• DEER: 6,473 employees
• EFSA: 787 employees
• SERV: 446 employees
• SWE: 3 employees
• NTE: 0 employees
• FPE: 0 employees
• CPP: 0 employees
2 Number of active individual employment contracts as of 31.12.2024, plus the mandate contracts of the executive managers.
Revenue Breakdown
The total revenue breakdown is presented in the table below:
Description
2023
2024
Total revenues
9,816,593
8,995,202
Revenues according to significant ESRS sectors3
N/A
N/A
Revenues from fossil fuels (coal, oil, and natural gas)
N/A
N/A
Revenues from coal
N/A
N/A
Revenues from oil
N/A
N/A
Revenues from natural gas [thousand RON]
191,339
155,188
Revenues from economic activities aligned with the taxonomy
on fossil gases
N/A
N/A
Revenues from chemicals
N/A
N/A
Revenues from controversial weapons
N/A
N/A
Revenues from the cultivation and production of tobacco
N/A
N/A
In accordance with ESRS 1, Electrica Group has carried out a mapping of the value chain, analyzing the
impacts, risks, and opportunities associated with each stage, as well as the interconnections between actors.
This analysis highlighted vulnerabilities and dependencies in direct and indirect commercial relationships,
supporting the development of an appropriate strategy.
Electrica Group’s business strategy for the period 2024-2030 includes Electrica’s objectives for 2030, as follows:
• Diversification of renewable energy sources;
• Diversification of services, including energy efficiency;
• Widespread implementation of ESG;
• Digitalization and innovation;
• Sustainable electrification, modern and efficient infrastructure;
• Organizational excellence.
3 Generates more than 10% of the company’s revenues and/or is related to current significant impacts or potential significant negative impacts on the company.
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Additionally, the Group’s Sustainability Strategy for 2024-2030 sets objectives related to each of the ESG Pillars,
initiatives to achieve these objectives, as well as established targets. The objectives and targets covering the
reporting period of 2024, as well as the progress made in 2024 in relation to these objectives and targets, are
presented below:
Objective
Initiative
Target
Progress made in
2024
Pillar I – Environment
Environmental protection
Protecting biodiversity and
reducing the impact of the
Group's activities on flora
and fauna
Updating studies on
biodiversity impact, noise
pollution
Periodic updates
No updates to the impact
study were made in 2024.
Pillar I – Environment
Carbon footprint
Reducing CO2 emissions
according to the
Greenhouse Gas Protocol
(GHG Protocol)
Reducing paper consumption
(reducing the number
of printed invoices) by
increasing the number of
electronic invoices
Annual percentage
reduction of at least 10%
compared to the previous
year
Due to numerous
legislative changes
in 2024 regarding this
subject which generated
additional notifications
and communications, the
target was not met.
Pillar I – Environment
Energy consumption
Scaderea consumului
propriu tehnologic din
activitatile de distributie
Increasing the level of
investments made on the
three voltage levels LV, MV,
and HV
Annual reduction of
technological self-
consumption according
to ANRE targets
✔
Cresterea CAPEX-ului
dedicat finantarii de
activitati sustenabile,
conform Taxonomiei UE
Creating a framework for
analysis and prioritizing
investments related to
sustainable activities
Evaluation framework
and functional promotion
mechanism
✔
Utilization of renewable
energy production capacities
for self-consumption
5% per year self-
consumption from RES
✔
Development of RES
500 MW installed in RES
projects
In progress
Pillar II – Social
Occupational health and safety
Maintaining ISO
certification regarding
Occupational health and
Safety at Work
Training through special and
innovative training programs
on workplace safety and
health, as well as fire defense
and civil protection
Implementation of a
digital training and
reporting platform
✔
Objective
Initiative
Target
Progress made in
2024
Health and safety as the
number 1 priority within the
Group companies – “Zero
accidents”
Reporting and managing
near-miss events
Continuous reporting:
zero work accidents
(fatal)
✔
Pillar II – Social
Ensuring a skilled workforce
Strengthening the
reputation as a top
employer
Signing indefinite-term, full-
time individual employment
contracts, in a majority
proportion
Internal processes
for redistribution and
improvement/retraining
of personnel approaching
retirement age
✔
Contribution to the training
of the next generation of
professionals
Providing benefits (health,
social assistance, vacation)
Constant annual growth
✔
Retention of skilled employees
through competitive
compensation
Salary growth based
on performance and
alignment with higher
industry standards
✔
Training programs with
specialized and innovative
courses to acquire new skills
and support the generational
mix and knowledge exchange
Specific targets aim
to ensure a skilled
workforce and high-level
professional development
✔
Internal processes for
redistributing/retraining staff
approaching retirement age
to ensure knowledge transfer
✔
Youthful workforce and
specialization in future
professions
✔
Expansion of the dual
education training program
✔
Ensuring a methodological
framework for international
best practices in
performance management
systems
Modernization of the
performance management
system
Effective implementation
of innovative systems
annually
✔
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Objective
Initiative
Target
Progress made in
2024
Pillar II – Social
Diversity and inclusion
Promoting a culture of
diversity and inclusion
Compliance with the "Policy
for the prevention, combating,
and sanctioning of any
form of harassment in the
workplace"
Promoting cultural
conditions for an inclusive
and impartial workplace
✔
Monitoring the distribution
of employees by gender
and age
Using the "whistleblower" as a
reporting mechanism
Strengthening and
increasing the
representation of women
within the organization
Promoting the inclusion of
people with disabilities
✔
Pillar II – Social
Impact on the community
Reducing the negative
impact of the
organization's activities on
the health and safety of
distribution service users
and the community
Taking concrete measures
to eliminate the risk of
electrocution, noise pollution,
and exceeding the legal limit
for electromagnetic field
intensity
Educational programs
Expansion of the dual
education training
program
✔
Improving the user
experience
Using centralized tools for
collecting and managing
complaints
✔
Supporting social or
environmental causes
through charitable actions
Community involvement
Launching public
consultations regarding
the environmental impact
assessment for investment
projects carried out by
distribution
Organizing humanitarian
campaigns and volunteer
actions
Providing scholarships,
equipment, and training
conditions for specialized
profiles in the energy sector
✔
Pillar II – Social
Employee involvement (annual employee satisfaction survey)
Survey participation rate
Engagement rate
Recommendation rate
Annual survey implementation
and monitoring
1 survey per year
✔
Objective
Initiative
Target
Progress made in
2024
Pillar II – Social
Social dialogue
Modernizing the framework
for dialogue with employee
representatives
Specific proposals for social
dialogue
Development of modern
communication channels
and feedback collection
Ensuring an optimal
governance framework
✔
Pillar III – Governance
Corporate governance
Development of a
sustainability culture within
the Group and across the
supply chain
Incorporation of KPIs related
to sustainability targets at the
executive management level
Periodic evaluation of
suppliers based on ESG
criteria
An ESG KPI for executive
management >2023 and
cascading >2024
An annual evaluation
Annual presentation
on ESG implications
awareness for all
employees
✔
Constant alignment
with best Corporate
Governance practices
Increasing the visibility of
channels to raise concerns
Affiliation with national and
international initiatives on
human rights, gender equality,
and business ethics
Increasing employee
awareness of ethical aspects
Maintaining the independence
criterion for members of the
Boards of Directors
Achieving the gender equality
target on the board of
directors as per European
regulation
Annual presentation for
all employees
Training 2 hours/year for
all employees
4/7
33%
✔
Zero acts of corruption
Establishment of an anti-
fraud department
Implementation of
mechanisms for identifying
and assessing corruption risks
Zero confirmed corruption
incidents
✔
Cybersecurity
management
Maintaining governance
structures for cybersecurity
management and raising
employee awareness of
cybersecurity risks
Annual information
programs and
procedures
✔
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The targets related to electricity supply include: “ensuring everybody’s access to accessible, safe,
durable and modern energy and reduction on CPT”. The targets related to communities and clients
include: “impact in community, raising awareness, educational programs and access at sustainable
services”. The targets related to employees include: “workforce diversity, inclusion, safety and upskilling”.
SBM-2 Interests and views of stakeholders
Electrica Group has a Stakeholder Engagement Policy that ensures the company’s sustainable development
by reconciling the interests of shareholders, personnel, and the company in general with those of customers,
small investors, and communities where Electrica operates. The Stakeholder Engagement Policy emphasizes
an open and continuous dialogue with stakeholders, including employees, employers, and government
representatives, to address common interest topics related to economic and social policies.
Stakeholders are defined as entities or individuals that can influence or be influenced by the Group’s
activities, some of which may belong to both categories. Electrica operates in a complex environment with
a wide spectrum of stakeholders who interact with the group companies either directly or indirectly. These
stakeholders include individuals or legal entities whose activities can be influenced by the Group’s decisions
and operations, or who can, through their actions, impact Electrica’s capacity to implement its strategies
or achieve its objectives. Depending on the level of involvement and impact, they are classified into two
categories.
• Stakeholders directly or indirectly affected by Electrica’s activities. This category includes groups whose
lives or activities are influenced by Electrica’s operations, either through the direct impact of energy
services or through business relationships across the value chain. These include:
• employees and workers, who represent the pillars of the organization’s functioning;
• consumers and end-users/customers, who benefit from the energy services offered;
• suppliers and workers in the value chain, who provide the resources and materials necessary for
operations;
• the local community, which benefits from Electrica’s sustainability and welfare initiatives, as well as
those located near its operations.
• Users of sustainability related information. This category includes primary users of financial reporting, as
well as users of sustainability reporting. These include:
• shareholders and investors, interested in the organization’s financial performance and sustainability;
• national and international professional/sectorial associations;
• civil society and non-governmental organizations, which assess the social impact of Electrica’s
activities;
• central and local authorities regulating the Group’s activities;
• financial institutions interested in the Group’s activities and investments;
• capital market participants;
• the media, which communicates the Group’s results and initiatives to the general public.
Certain stakeholders are included in both categories defined by the ESRS:
• Employees are affected stakeholders due to their direct link to the undertaking, but they may also act as
users of the sustainability related information.
• Regulatory authorities and NGOs act as users of the sustainability reports, but they also represent affected
groups, as the community or the environment.
Affiliated parties are consulted at the beginning of each strategic planning period, annually, and whenever
a decision/plan/project, which produces direct or indirect effects on stakeholders, is grounded through
methods such as public debates, symposiums, planning cells, and other sociological methods.
Additionally, in 2024, Electrica Group implemented a consultation process with affected stakeholders to
understand and integrate their interests and views regarding the current and potential, positive and negative
impacts of the Group on them. This process was carried out in accordance with the Sustainability Materiality
Assessment Methodology, developed by Electrica’s sustainability team together with external consultants.
Members of the sustainability team were selected to cover all the companies in the Group, thus ensuring a
comprehensive evaluation of impacts, risks, and opportunities.
Communication with stakeholders and stakeholder engagement were essential for the success of the
double materiality assessment. Electrica Groupe uses two main methods to communicate and engage with
stakeholders in impact identification:
• Direct consultation: they include meetings, interviews and discussions with internal and external
stakeholders, such as employees, customers, suppliers, authorities and local communities. These
consultations allow for the obtaining of direct and detailed feedback regarding impacts and concerns
related to the Group’s activity.
• Questionnaires and surveys: Electrica Group distributes questionnaires and surveys to collect stakeholders’
opinions and views with regard to environmental, social and governance matters. These instruments
support the identification and prioritization of the relevant issues based on the feedback received from
respondents.
To facilitate consultation with external stakeholders, a simplified questionnaire has been developed, including
an average of two questions for each standard from a more accessible and adequate format for such
communication. Therefore, the generic question addressed was: “How important do you think it is for the
company to establish targets / actions / policies for the X sustainability matter?”.
The questionnaire was distributed online through a specialized platform (Typeform), one questionnaire being
designated for each subsidiary. The distribution was accomplished through a link, accompanied by a detailed
description of the request for completion. A total number of 285 questionnaires was transmitted.
The purpose of these activities is to ensure transparency in decision-making and the constant involvement
of stakeholders in the strategic decision-making process. Moreover, Electrica has implemented a dedicated
integrity warning policy based on the principles outlined in the Code of Ethics and Business Conduct.
In previous reporting periods, the Group developed and implemented a process that allowed it to identify
relevant categories of stakeholders and non-financial topics needed to evaluate the impact on the economy,
society, and the environment (according to the Sustainability Report prepared for 2023).
Starting in 2024, through the double materiality assessment, Electrica Group initiated an independent process
focused on identifying and prioritizing relevant material topics for its own activities, in accordance with ESRS
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1 requirements. The process was carried out with the
support of a consulting company and included direct
involvement of stakeholders relevant to Electrica
Group. The results of the consultation formed the
basis for the double materiality assessment, whose
conclusions were assessed and used in developing
the sustainability strategy for the period 2025-
2030. This strategy is integrated into the business
strategy of the Group, thus ensuring alignment with
stakeholders’ expectations and interests.
The company has a short, medium, and long-term
action plan for integrating ESG principles into its
business model.
In 2024, the administrative, management, and
supervisory bodies of Electrica Group were informed
at least twice a year about stakeholders’ perspectives
and
interests
within
the
double
materiality
assessment
process.
The Board of Directors was informed about the
results of the double materiality assessment, which
highlighted the priority and relevant ESG topics
for
strategy
and
sustainability.
Administrative
bodies and executive management were involved
throughout the assessment process, being informed
at each stage, from identifying potentially material
topics and consulting stakeholders to final validation
of priority topics. This active involvement allowed
executive managers and administrative teams to
contribute to the evaluation of ESG topics’ impact
on the company and make informed decisions
regarding their integration into the organizational
strategy.
Through this structured process, Electrica Group
ensures the integration of stakeholders’ interests in
strategic and operational decision-making, thereby
strengthening
organizational
transparency
and
accountability. The information obtained through the
consultation process carried out in 2024 for the DMA
process will be used to adjust and update the Group’s
strategic sustainability objectives, which will take
place in 2025, thereby ensuring constant alignment
with stakeholders’ expectations and sustainability
requirements. Starting from the 2024 financial year,
Electrica Group will use Sustainability Reporting
to ensure transparent access to this information,
strengthening
stakeholder
relationships
and
providing a clear framework for monitoring progress.
Consequently, no measures have yet been identified
regarding the update of the Group’s strategy and
business model. These will be communicated in the
next sustainability statement for the financial year
2025.
Electrica
Group’s
strategy
for
2025-2030
was
approved at the end of 2024, and the action plan for
its implementation will be developed during 2025.
The measures planned for the update of the
sustainability strategy for 2025 are meant to integrate
stakeholders’ views collected in 2024, which will
trigger a better alignment with their expectations.
Electrica Group considers the workforce a key pillar of
its activity and a key group of stakeholders. Respect
for employees’ rights and human rights is a strategic
priority, and their views, expectations and interests
are integrated into the Group’s strategy and business
model, directly influencing operational and strategic
decisions. Electrica takes responsibility for building
sustainable and fair relations with all stakeholders,
based on transparency, open dialog and mutually
beneficial collaboration. By maintaining a constant
dialog with employee representatives and their
involvement in key decision-making processes,
Electrica ensures that the needs and expectations of
its workforce be understood and respected.
At the same time, the Group is constantly investing
in employees’ safety and well-being, providing safe
and decent working conditions, access to vocational
training and skills development, thus contributing to
increased productivity, skills retention and long-term
sustainability of the business model.
One of the strategic objectives of Electrica Group’s
2030 strategy is organizational excellence. The
strategic directions for achieving this objective are:
• the
development
and
implementation
of
education programs to meet the Group’s long-
term needs,
• the
modernization
of
the
performance
management system and the implementation of
performance indicators (including ESGs),
• cultural transformation,
• skill continuous attraction and developmenty
through training and mentoring programs.
With 7,794 employees on 31 December 2024, own
workforce represents a key group of shareholders
interested in Electrica Group’s activities.
To determine the total number of staff for 2024,
Electrica Group used the number of employees
representing the number of persons existing at the
end of the reporting period, except for the suspended
contracts. The same methodology was applied to
analyze the gender distribution of employees and
the type of contract (permanent/temporary, full/
part-time).
Interaction with employees takes place organically,
encouraging direct communication through internal
instruments such as trade union negotiations,
employee satisfaction questionnaires, information
tools such as intranet pages or regular internal
communications, etc. The process of assessing
the business strategy is dynamic and interactive,
incorporating
employee
feedback
from
the
results
of
the
annual
surveys,
including
the
outcome of the consultation process in the double
materiality assessment, as well as through internal
communication channels or through continuous
dialog.
Electrica Group reaffirmed its commitment to
mainstream respect for human rights in all interactions
with affected stakeholders, including own workforce,
value chain workers and local communities. This
fundamental principle guides every aspect of our
activities and business relationships, as reflected
in the Code of Ethics and Business Conduct. This
document sets out the company’s ethical values and
standards, in accordance with the United Nations
Guiding Principles on Business and Human Rights.
In addition, the Group has implemented an Integrity
Whistleblowing Policy, which provides a secure and
confidential mechanism for reporting any suspicion
of human rights violations or ethical standards.
At the end of 2024, all employees of Electrica Group
are covered by the provisions of the Collective Labor
Agreement.
The strategy and operational structure of Electrica
Group
are
proactively
adjusted
to
minimizing
negative impacts on labor, responding to current
problems through the implementation of a hybrid
working style, strengthening occupational health
and safety policies and investing in training and
professional
development
programs.
Consumers and end-users are an important group
of stakeholders for Electrica Group, which recognizes
the importance of involving them in the decision-
making process and the development of its services.
As part of its sustainability strategy, Electrica
Group is committed to developing a responsible
and sustainable business that supports the needs
and interests of its consumers and end-users.
Furthermore, it integrates these interests into its
business strategy and decision-making processes
at the Group level. This strategic objective aligns
with the Global Sustainable Development Goal
(SDG) 9, Industry, Innovation, and Infrastructure,
which promotes the efficient use of resources and
green technology, creating the foundations for a
sustainable industry. In this purpose, during the
reporting period, the Group implemented internal
technologies to develop new products and services,
resulting in improved sustainability, efficiency, and
increased consumer and end-user satisfaction.
In
addition,
the
Group
promotes
transparent
communication channels with all stakeholders,
including customers/consumers and end-users.
This
approach
fosters
economic
benefits
by
consolidating business partnerships and attracting
new commercial opportunities. It enables the Group
to expand its market presence and develop long-
term relationships with customers and end-users.
Through
authentic
and
direct
communication,
Electrica makes efforts to address the needs and
concerns of its clients and end-users, thereby
strengthening their trust and support for the Group’s
strategic
objectives.
Electrica Group maintains dialogue with its clients/
consumers and end-users to better understand
their needs and expectations. According to the
Stakeholder Engagement Policy, Electrica Group
is committed to ensuring a transparent and open
communication
process
with
all
stakeholders,
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including end consumers. This policy highlights the
importance of:
• Periodic consultation (annually and whenever
necessary): Organizing meetings and surveys to
collect direct feedback from clients/consumers
and end-users, allowing the adjustment of
services
based
on
their
requirements
and
preferences.
• Information transparency: Providing clear and
accessible
information
about
the
services
and
products
offered,
facilitating
effective
communication and a full understanding of the
company’s offers.
• Effective complaint management: Implementing
a system for receiving and promptly addressing
complaints,
ensuring
the
continuous
improvement of the clients/customers and end-
users’ experience.
According to Electrica’s 2030 Strategy, the business
model and strategy of Electrica Group regarding this
stakeholder group aim to:
• Expand the range of services – Develop energy
efficiency solutions, provide consultancy for
energy audits, and offer financing options for
customers.
• Achieve sustainable market share growth –
Expand the B2B and B2C segments through
digitalization,
service
optimization,
and
enhancement of user experience.
• Implement an integrated feedback system –
Collect and analyze data to personalize services
and increase client/consumer and end-user
satisfaction.
In 2024, the same strategy was maintained as for
the previous year, focusing on retaining the client
portfolio by developing specific measures to increase
customer satisfaction.
To
identify
clients/customers
and
end-users’
requirements
and
incorporate
them
into
the
business model, Electrica Group analyzes customer
feedback. Users and consumers can access the
company’s
official
channels,
both
online
and
offline, to communicate directly. These channels
are permanently available to everyone and are
constantly
promoted.
• To maintain communication with users and
other stakeholders, DEER provides online
communication channels, including email
addresses and phone numbers, both at central
and branch level. Communication can also take
place in person at customer service centers and
the 18 branch offices.
• Furthermore, to improve relations with users
and other stakeholders, DEER conducts an
annual satisfaction survey that measures
the satisfaction levels of users and external
customers regarding DEER’s activities and
services. The results of these surveys are sent
to department heads for the implementation of
improvement measures where applicable. The
stakeholder consultation process is organized
in partnership by the Ethics, Sustainability, and
Compliance department/ethics advisor and the
department/ responsible people for Marketing,
Public Relations, and CSR, with support from
other approved structures within the company.
For instance, at DEER, according to procedure
DEER-PO-15-04 - Customer Satisfaction
Monitoring, this activity involves the participation
of management, the Distribution Customer
Management Department, the Human Resources
Department, and all organizational entities
that engage directly with employees, external
customers, and the company’s stakeholders.
The interests and viewpoints of consumers and end-
users are diverse, encompassing economic, social,
and environmental dimensions.
Respect for human rights is a priority in this process,
ensuring compliance with relevant international and
national standards.
Moreover,
the
interests
and
perspectives
of
consumers and end-users were also considered
within the double materiality assessment process,
through questionnaires sent to clients/customers
and end-users regarding the material topics of
Electrica
Group.
Considering the market trends related to customer
relationship management increasingly shifting to
the online space, the digitalization strategy, storage
methods, strengthening cybersecurity, and the
confidentiality of consumer and end-user data
remain ongoing concerns for Electrica Group.
SBM-3 Material impacts, risks and opportunities and their interaction
with the business strategy and model
Throughout 2024, Electrica Group conducted the
identification and evaluation of material impacts,
risks, and opportunities related to the Group’s
activities, in accordance with due diligence principles
and ESRS requirements. The assessment was carried
out concerning all companies in the Group, covering
both internal operations and interactions with
suppliers and partners. This consultation process
included the submission of specific questionnaires
to each stakeholder category, aiming at identifying
the current and potential impacts of the company
on
them,
assessing
stakeholders’
perceptions
regarding the magnitude of these impacts, and
gathering information about other impacts that
were not initially identified. Through this consultation
and validation process, Electrica Group effectively
identified and assessed sustainability impacts,
grounding the preparation of this Sustainability
Statement and the update of the Group’s strategic
sustainability
objectives.
Specifically, the manner in which the company’s
strategies and activities influence the people and
the environment was investigated, considering both
direct impacts generated by internal activities and
indirect impacts arising from business relationships.
Positive and negative impacts were assessed
from a temporal perspective—short, medium, and
long-term—and were classified based on their
connection to internal operations or the value chain
of each company in the Group, whether upstream or
downstream.
Thus,
the
most
relevant
impacts,
risks,
and
opportunities for the Group’s activities were identified
as follows:
• Regarding environmental aspects, the company
prioritizes
climate
change
adaptation
and
mitigation and energy efficiency. At the level of
its own activities, the main identified risks result
from the adoption of regulations and policies
that may generate additional costs regarding
carbon
emissions,
the
need
to
modernize
infrastructure, or the transition to cleaner energy
sources, as well as technology requirements
that would require significant investments for
the implementation of smart grid technologies
in projects aimed at eliminating and mitigating
greenhouse gas emissions. Along the value
chain, the main identified risks are climate-
related, affecting the infrastructure’s resilience to
thermal stress, damage, and continuity of energy
supply, as well as natural dependence, reduced
energy
production,
delays,
and
increased
costs caused by adverse weather conditions
impacting the company’s operations and costs.
However, allocating resources for climate change
policies, optimizing energy consumption, and
transitioning to cleaner energy sources are
identified as opportunities for the company,
thereby strengthening its competitive positioning.
• In the social area, impacts, risks, and opportunities
focus on the following material topics: safe
work environments, social dialogue, safety and
health, skill training and development, measures
against harassment and violence, diversity, and
confidentiality. These topics represent material
impacts for Electrica as they address important
aspects of social responsibility towards both
employees and consumers and communities.
Working conditions, diversity, violence prevention,
and confidentiality are essential for a safe
and fair working environment, while access to
information and responsible business practices
support consumer trust. The company ensures
these aspects through the implementation of
relevant policies and operational procedures.
For consumers, key aspects include access
to information, products, and services, non-
discrimination,
and
responsible
business
practices.
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• Regarding business conduct aspects, Electrica
identified material impacts such as corporate
culture, supplier relations, and corruption-related
issues. Involvement in acts of corruption and
lack of transparency in supplier relationships
can
affect
the
company’s
reputation,
but
implementing strict anti-corruption policies and
promoting transparency can strengthen business
relationships
and
diversify
supply
sources.
A culture of transparency and compliance
increases
stakeholders’
trust
and
prevents
integrity risks. A weak corporate culture can affect
employee morale and the company’s reputation,
while a healthy culture enhances employee well-
being and partner trust, reinforcing the positive
market image.
This is the first Sustainability Statement of Electrica
Group prepared in accordance with the ESRS
reporting
standards.
In
the
previous
period,
sustainability information was analyzed and reported
according to the GRI (Global Reporting Initiative)
standards. Previous assessments are limited, but
Electrica recognizes the need to adapt its strategy
to
address
emerging
sustainability
challenges
and opportunities. Consequently, throughout 2024,
Electrica Group developed a new Sustainability
Strategy for the period 2025-2030. This strategy
extends the initiatives already implemented to
reduce environmental impact and builds on previous
strategic objectives, addressing other relevant topics
for the company.
Electrica bases its strategy and business model on
resilience principles, with the capacity to manage
material impacts and risks, as well as to capitalize
on identified opportunities. The impact, risk, and
opportunity management process (IRO) is integrated
into the business strategy, allowing alignment of
sustainability priorities with overall development
objectives.
The identified impacts, risks, and opportunities are
presented in section IRO 1. Additionally, a detailed
explanation of impacts, risks, and opportunities
associated with each material topic is available in
the section dedicated to each ESRS topical standard.
The link between identified impacts and associated
risks and opportunities (IRO) is detailed for each
topic and sub-topic according to ESRS standards.
Material risks and opportunities for 2024 were
integrated into the double materiality assessment
process, being analyzed within the two categories:
current and anticipated, to ensure their financial
impact assessment. Regarding material risks and
opportunities,
Electrica
Group
did
not
identify
immediate financial effects on the financial position,
economic performance, and cash flows. Additionally,
no risks requiring significant adjustments to the
reported values of assets and liabilities in the
financial statements for the next reporting period
were highlighted.
Instead, anticipated financial effects were identified,
which
may
influence
the
financial
position,
performance, and cash flows of Electrica Group in
the short, medium, and long term. These risks and
opportunities were evaluated from the perspective
of their financial impact on different time horizons,
providing a clear picture of how they may influence
the company’s financial stability.
Anticipated Risks
A major factor that may generate medium-term
risks is the evolution of regulations regarding
greenhouse
gas
(GHG)
emissions
and
the
energy transition. Adapting to new legislative
requirements
may
necessitate
significant
investments
in
modernizing
the
distribution
infrastructure,
integrating
renewable
sources,
and implementing technological solutions that
support emissions reduction. These adjustments
may generate additional costs and influence the
Group’s cash flows.
There is also the risk of financial sanctions and
reputational impact if the Group does not develop
an efficient energy transition plan, which can
affect investor relations and access to financing.
Additionally,
physical
risks
associated
with
climate change, such as extreme weather events
(heatwaves, floods, storms, etc.), may impact
distribution grids and the operation of critical
infrastructure.
These
events
could
generate
additional costs for both repairs and infrastructure
reinforcement, as well as possible interruptions
in the energy supply, affecting revenues and
customer
satisfaction.
Moreover, the energy transition involves a change
in consumption patterns, which may create
uncertainties regarding the evolution of electricity
demand, influencing the Group’s commercial
strategy and future investments.
Anticipated Opportunities
At the same time, the energy transition and
the
growing
demand
for
renewable
energy
sources and smart distribution solutions can
generate
growth
opportunities
for
Electrica
Group. Developing and expanding infrastructure
for integrating renewable energy, implementing
smart grids, and adopting energy efficiency
solutions will enhance the Group’s position as a key
player in the energy sector. Moreover, increased
investor interest in sustainable companies can
provide access to green financing, supporting
investments
in
modernizing
and
digitizing
infrastructure. Additionally, developing services
related to e-mobility, energy efficiency, and
integrated solutions for consumers can represent
a new source of long-term revenues.
In
this
Sustainability
Statement,
no
specific
impacts, risks, or opportunities other than those
covered by the standards are presented.
For all details regarding the Group’s impacts, risks,
and opportunities, and how Electrica integrates
them into its strategy and business model, please
refer to the topical chapters.
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Impact, risks and opportunities management
IRO-1 Description of the processes to identify and assess material
impacts, risks and opportunities
The process to identify and evaluate material impacts,
risks, and opportunities used by Electrica Group
during 2024 was conducted within the framework
of double materiality assessment, in accordance
with CSRD and ESRS1 standards (chapter 3, Double
materiality as the basis for sustainability disclosures).
Electrica Group carried out the assessment in line
with the principle of double materiality, considering
both dimensions: the materiality of the impact, which
analyzes the effects of the Group’s activities on people
and the environment, and financial materiality,
which assesses how external sustainability factors
influence the Group’s short, medium, and long-term
financial performance and sustainability. The results
obtained through the double materiality process
are integrated into this Sustainability Statement
following the provisions of the CSRD directive. Thus, in
implementing this process, the company integrated
the recommendations developed by EFRAG in the
Implementation Guidance on Materiality Assessment.
During the analysis, the company adhered to
the fundamental principles of double materiality
assessment, namely the analysis of:
• Materiality of positive and negative impacts in
the short, medium, and long term that Electrica
Group has or may have on the environment and
society.
• Financial
materiality,
to
determine
how
sustainability
aspects
may
influence
the
company’s financial performance in the short,
medium, and long term.
Compared to previous reporting periods, this is
the first time Electrica Group has utilized the ESRS
methodology to determine material topics. In previous
years, the Group employed the GRI Standards to
conduct materiality analysis, as presented in specific
sections of previous sustainability statements, which
are publicly available on the Group’s website.
In accordance with ESRS requirements, Electrica
Group will evaluate, for each reporting period, whether
significant changes have occurred, either internally
or externally, that could lead to alterations in its list
of material impacts, risks, and opportunities, and will
review the double materiality process accordingly.
The next full review of the double materiality process
is not yet scheduled.
The process of identifying material impacts, risks, and
opportunities did not utilize specific assumptions. The
assessment was based on concrete data, regulatory
sources, stakeholder consultations, and the results of
internal monitoring and evaluation processes.
ELSA is the only entity within the Group that falls
within the scope of CSRD on an individual basis for
the financial year 2024, being a large listed company
(public interest entity). The other companies in
Electrica Group do not have an individual reporting
obligation for the financial year 2024, as they are not
public interest entities. However, Electrica S.A., as the
parent company of a Group, prepares consolidated
annual financial statements, and according to
ESRS 1 „if the reporting undertaking is a parent
company required to prepare consolidated financial
statements, the sustainability statement shall be for
the group.” In this context, the assessment of material
impacts, risks, and opportunities was carried out
at the Group level, including all companies in the
analysis process, to objectively and impartially
identify material aspects.
For the impact assessment process, the company
used a combination of quantitative and qualitative
criteria, including impact scale (1-5), scope (local,
regional, or global), remediable character (for
negative impacts), and probability (for potential
positive
and
negative
impacts).
Quantitative
thresholds were established to determine the
relevance of the topics, and qualitative criteria
provided context for interpreting the results.
Identifying the location where impacts, risks and
opportunities may occur was performed within the
double materiality assessment process.
The classification criteria of the impact include two
main dimensions: actual or potential and negative or
positive. Also, the impact categories are classified as
being direct, indirect or as a combination between
the two. These classifications support the efficient
assessment and management of the impact,
considering both the nature, as well as its intensity.
Considering
these
two
characteristics,
which
trigger four combinations (actual-positive, actual-
negative, potential-positive, potential-negative), the
assessment criteria differ. For instance, the negative
impact includes an additional criterion as the positive
one (the remediable character), while the potential
impact is also assessed according to probability. In
the impact assessment process, direct and indirect
effects generated by the company’s activities were
analyzed, considering both positive and negative
impacts. The qualitative characteristics analyzed
included the localization of the impact, whether it
manifests upstream, in the company’s own activities,
or downstream, and the time horizon, respectively
short-term (i.e., the reporting period used in the
Group’s
financial
statements),
medium-term
(covering the interval from the end of the short-term
reporting period detailed above), up to a maximum
of five years (1-5 years), or long-term, respectively
including periods that exceed five years from the
end of the medium-term reporting period. Electrica’s
value chain include both upstream suppliers, such
as suppliers delivering products or services used in
the processes and activities of ELSA and subsidiaries,
as well as downstream suppliers, represented by
clients / consumers and end users that receive the
company’s products or services.
The double materiality assessment process was
structured into several essential stages. Firstly, the
relevant sustainability topics for Electrica Group
were identified. Subsequently, the corresponding
sustainability related impacts, risks, and opportunities
for each relevant topic were identified. These
impacts, risks, and opportunities were validated
through stakeholder consultation. Finally, a detailed
assessment of sustainability impacts, risks, and
opportunities was carried out. An essential aspect
was determining potential impacts on human
rights, which were prioritized according to ESRS
requirements.
Each of these parameters was scored according to a
quantitative scale, and the rationales were carefully
analyzed to ensure relevance.
The
financial
materiality
identification
process
was initiated by identifying risks and opportunities
that
could
influence
the
company’s
financial
performance and future cash flows. In this context,
qualitative characteristics were evaluated, including
the relevance of risks and opportunities to the
company’s activity and the associated time horizon.
The quantitative evaluation included analysis of
continued resource utilization, resource dependency,
critical relationships within the value chain, and other
effects on future cash flows.
The process was carried out in accordance with the
activities mentioned in Electrica Group’s Sustainability
Materiality
Assessment
Methodology
by
the
sustainability team established at the Group level
for coordination and a team of external consultants.
Members of the sustainability team were selected
to cover all companies within the Group, and their
perspectives allowed for the inclusion and evaluation
of impacts, risks, and opportunities for all companies.
For the implementation of the stages within the
process, a series of workshops were organized, as well
as a consultation process with stakeholders. Periodic
briefings (at least quarterly) were provided to the
CGCPP Committee and subsequently to the Board of
Directors. Finally, conclusions and recommendations
were forwarded for final approval by the CGCPP
Committee and submitted for information to the
Board of Directors.
The information used during the double materiality
assessment included internal and external data
sources,
stakeholder
consultations,
and
the
identification of relevant industry trends. The double
materiality assessment covered the Group’s own
operations, respectively ELSA and its subsidiaries. The
identification of material sustainability topics started
from the list of sustainability matters that are the
subject of topical ESRS (AR 16 ESRS 1), according to the
requirements of ESRS 1. In this regard, the necessary
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information was analyzed to understand the business
model, services offered, structure of business lines,
type of clients, revenue and expense structure, as
well as other relevant information to understand
the activities carried out by the Electrica Group. The
process also included a component of analysis of
similar companies, conducted on the annual and
sustainability reports of similar companies in the
industry.
During the DMA process, several reasonings and
elements of professional judgment were used to
provide a solid decision-making basis, ensuring
alignment with ESRS requirements and stakeholder
expectations. To identify and evaluate potential
or actual impacts that the Group generates on
the environment and people, both through its own
operations and activities conducted in the upstream
and downstream value chain, the following aspects
were taken into account:
• Changes in legislation/Regulatory framework
– it was anticipated that current regulations
regarding sustainability reporting requirements
would become stricter, impacting the way the
Group operates;
• Climate changes – it was anticipated that
Electrica Group’s activities would continue to
contribute to climate changes through direct
and indirect GHG emissions, even as reduction
measures would continue. Adaptation to climate
changes would become essential to reduce
vulnerabilities and increase the resilience of
the Group, its workforce, and its supply chain to
natural risks aggravated by climate changes.
It is also projected that climate changes would
generate significant physical risks over longer
time horizons, including extreme weather events
that could affect the Group’s operations, but
also opportunities through increased demand
for energy services. The necessity of developing
and implementing a transition plan to achieve
the objectives according to the Paris Agreement,
as well as the climate resilience plan, would
generate significant financial costs.
• Time horizon – Impacts generated by Electrica
Group’s activities may have different effects on
resources, local communities, or contribute to
global climate changes depending on the time
horizon: short-term, medium-term, or long-term.
• Access to resources – Natural resources such as
energy, natural gas, and others used in activities
are sufficient to support current operations, but
continuous use could generate negative impacts
over the medium and long term.
• Volatility of energy and raw material prices will
continue, generating financial risks for the Group.
• Impact assessment was based on the assumption
that results identified through the application of
the UNEP FI Radar methodology at the sectoral
level and validated through a consultation
process could be extrapolated for most suppliers
and customers. This approach was necessary,
given that the stakeholder consultation process
did not allow the inclusion of all the Group’s
suppliers and customers.
• Stakeholder expectations – It is estimated that
the increasingly high expectations of investors,
authorities, customers, and partners for adopting
sustainable practices and services will influence
market strategies and investments.
• Organic development of Electrica Group, through
gradual expansion of the existing grid and
diversification of energy services, will influence
both internal performance and positioning in the
context of the regional energy market.
Identifying
impacts
and
validating
them
with
stakeholders was carried out in accordance with the
Sustainability Materiality Assessment Methodology.
The process included several steps such as identifying
activities,
products,
and
geographic
locations,
analyzing variations in key financial metrics, major
events, strategic objectives, and directions, as well
as information provided to investors and other
stakeholders. Additionally, it involved value chain
analysis,
identifying
relevant
stakeholders
for
Electrica Group, comparative analysis of similar
companies,
internal
workshops
for
validating
topics and impacts, centralizing impacts, risks and
opportunities, mapping these in the value chain, and
consulting
stakeholders.
The internal identification and validation of topics
and impacts were conducted by Electrica Group’s
sustainability team and external consultants, and
external validation was carried out with representatives
from all affected stakeholder categories. Impacts
were validated with representatives of affected
stakeholders through the application of customized
online questionnaires for each category. Active
involvement of suppliers, customers, employees, and
NGOs enabled effective identification and evaluation
of sustainability impacts, forming a solid basis for
preparing the Sustainability Statement and updating
Electrica Group’s strategic sustainability objectives.
The climate-related risk and opportunity assessment
was carried out within the double materiality
assessment process, not yet including a climate
scenario analysis. This activity is part of the revised
sustainability strategy objectives for 2025-2030.
To identify effective and potential sources of
greenhouse gas (GHG) emissions, Electrica Group
calculates GHG emissions for all subsidiaries and
operational entities within its reporting scope. The
methodology used for GHG emission inventorying
at all operations specific to Electrica’s value
chain aligns with international best practices for
inventorying and reporting and complies with
applicable
standards
according
to
the
„GHG
Protocol: A Corporate Accounting and Reporting
Standard” and the „Corporate Value Chain (Scope 3)
Standard,” developed by the World Business Council
for Sustainable Development (WBCSD) and the World
Resources Institute (WRI). Additionally, relevant tools
developed by reference international organizations
for economic sectors or industries relevant to
calculating indirect emissions included in Scope
3 were used (e.g., the aviation industry, hospitality
industry,
etc.).
Using
internationally
recognized
calculation methodologies, the mentioned tools, and
valid emission factor sources ensures the accuracy,
rigor, and relevance of the obtained results.
Subjects related to climate change, such as
adaptation, mitigation, and energy efficiency, are
considered material for Electrica Group. These topics
are included in the reporting and represent a strategic
priority, being integrated into the development of the
new sustainability strategy for the 2025-2030 period.
Electrica’s primary operations involve the supply and
distribution of electrical energy, which under normal
operating conditions do not release significant
pollutants. Therefore, the financial impact of air
pollution on revenues, costs, or the overall financial
health of the company is minimal. Moreover, the
current or potential impacts of air pollution on people
or the environment directly related to Electrica’s
operations are limited. The company’s activities do
not include major pollution sources, and potential
impacts are managed through strict environmental
controls and compliance with legal requirements.
Consequently, it was concluded that pollution-
related topics are not material for Electrica’s
activities, given the company’s specifics and the
scale of impacts. Aspects related to indirect impact,
i.e., GHG emissions, are treated separately in ESRS E1,
being relevant for assessing the carbon footprint and
emission reduction objectives.
Within the company’s own operations, the impact
on water resources is minimal, mainly associated
with daily activities carried out in offices and
administrative facilities such as household water
consumption for hygiene and other office needs.
Regarding the value chain, water resources may be
relevant for energy suppliers, especially in the case
of power plants that use water for cooling, but these
aspects are not directly managed by Electrica due to
the nature of energy procurement through OPCOM.
Electrica does not have a direct material impact
on biodiversity and ecosystems. Impacts and risks
related to biodiversity are evaluated indirectly,
through the monitoring of those identified at
the level of suppliers and applicable regulatory
acts. Evaluation criteria include compliance with
European and national regulations on environmental
and biodiversity protection, as well as applicable
international
standards.
Electrica
has
not
used
a
scenario-based
assessment related to biodiversity. Consultations
with communities and stakeholders took place in
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the context of the general materiality assessment
process, and stakeholders did not identify biodiversity
as a material topic.
Electrica does not face significant direct issues
related to the use of natural resources or the circular
economy. However, the company monitors the impact
and risks associated with activities in the value chain,
especially upstream (energy production), ensuring
that suppliers and other business partners adhere to
environmental standards. These aspects are part of
the procurement and supplier evaluation process.
Consultations with communities and stakeholders
took place in the context of the general double
materiality assessment process.
Electrica uses the double materiality assessment
to identify, evaluate, and manage the impacts,
risks, and opportunities associated with business
conduct, focusing on aspects such as corporate
culture, supplier relationship management, including
payment practices, and the prevention of corruption
and bribery. These risks and opportunities are
also integrated into the general risk management
process, which provides a unified framework for
analyzing, evaluating, and addressing them.
In the process of identifying risks and impacts related
to business conduct, Electrica considers:
• Location
of
operations:
The
assessment
considers operations in the geographic market
of Romania, considering national and regional
regulations and specifics.
• Activities conducted: The nature of the services
provided, which involve direct relationships with
business partners, suppliers, and customers/
end-users.
• Sector of activity: Characteristics of the energy
sector, which involves a high level of regulation,
complex
interactions
with
authorities
and
stakeholders, as well as strict requirements for
integrity and compliance.
• Transaction
structure:
Particularities
of
commercial relationships, including contracts
with suppliers and customers, payment terms,
and
transparency
mechanisms
applied
in
transactions.
Corporate culture is guided by a comprehensive set
of internal policies, such as the Code of Ethics and
Business Conduct, the Ethical Career Management
Policy, and the Diversity and Inclusion Policy. These
promote ethical behavior, mutual respect, and zero
tolerance for any form of discrimination, harassment,
or abuse.
The company conducts training programs for
employees
and
partners
while
implementing
confidential reporting mechanisms for misconduct
through
the
integrity
whistleblowing
system.
These measures are essential for protecting the
organization’s reputation and maintaining a fair and
transparent
business
environment.
The identification and evaluation of impacts, risks,
and opportunities are carried out according to an
internal methodology that included two approaches:
one approach where the impact is difficult to measure
explicitly but can be assessed, using a qualitative
scale; and a second approach where, depending
on the nature of the risk classes evaluated, material
reference thresholds are established for each level.
The process of identifying and evaluating impacts
involved the following steps:
• Impact Identification: The company collected
information from internal and external sources to
identify potential and actual impacts on people
and the environment.
• Impact
Evaluation:
Identified
impacts
were
evaluated
based
on
their
probability
of
occurrence and the magnitude of their effects.
This involves using quantitative and qualitative
methods.
• Priority Setting: Based on probability and impact,
a score representing the risk profile was obtained.
This helped the company focus on managing the
most critical impacts.
• Remedial Measures: Risk remediation is carried
out in the context of defining ELSA’s risk appetite,
at both individual and aggregate risk levels.
• Monitoring: Impacts and management measures
are continuously monitored to allow for the
appreciation and documentation of dynamic
risks over time.
The qualitative characteristics of the impact were
established by identifying the following elements:
impact categories, impact location, time horizon
and potential impact on human rights. The time
horizon was thus set as short-term, corresponding
to an interval of up to 1 year, for current effects. For
the assessment of potential impacts, two additional
intervals were set: medium-term, covering a period
of up to 5 years (between 1 and 5 years), and long-
term, exceeding a period of 5 years, in accordance
with the CSRD requirements. In addition, for each sub-
sub-topic analyzed, the assessment of the potential
impact on human rights directly contributed to the
prioritization of that topic, in compliance with the
CSRD requirements.
For the impact assessment process, the company
used a combination of quantitative and qualitative
criteria, including the impact scale (1-5), the scope
(local, regional or global), remediable character
(for negative impacts) and probability (for potential
positive
and
negative
impacts).
Quantitative
thresholds were established to determine the
relevance of the topics, and qualitative criteria
provided context for interpreting the results.
Each of these parameters was scored according to a
quantitative scale, and the reasoning was analyzed
to ensure relevance. A value from 1-5 was selected
for each parameter, and the evaluation reasoning
was provided for each score.
The process of identifying financial materiality was
started by identifying risks and opportunities that may
influence Electrica’s financial performance and future
cash flows. In this context, qualitative characteristics
were assessed, including the relevance of the
risks and opportunities for the company’s activity
and the time horizon associated with them. The
assessment included an analysis of the continued
use of resources, resource dependence and critical
relationships within the value chain and other effects
on future cash flows.
For financial materiality, the following steps were
taken at the level of each applicable material sub-
sub-topic:
• Establishing
the
qualitative
characteristics
of financial materiality: in this stage, it was
established whether the risk applies at Group or
subsidiary level, as well as the period in which the
respective risk is expected to occur.
• Quantitative assessment of risk or opportunity:
this stage consisted of assessing the risk or
opportunity for each identified topic. The CSRD
/ ESRS requirements for assessing applicable
material topics were applied considering the
following parameters:
• Continued use of the resource
• Dependence on relationships and
• Other effects on future cash flows.
The
assessment
of
magnitude
integrates
dependencies, future use of resources and effects on
future cash flows as part of the assessment process.
A value from 1 to 5 was selected for each parameter,
and the assessment rationale was provided for each
rating. The scale used to assess probability in the
double materiality assessment ranges from very
unlikely (0-20%) to most likely (80-100%). Intermediate
levels include unlikely (20-40%), medium probability
(40-60%) and very likely (60-80%).
The probability assessment grid was used to assess
the relative positioning of risks to each other and was
not used to assess the absolute values of individual
IROs.
The same probability assessment grid was used
for the probability of occurrence for both financial
materiality and impact materiality.
The Group did not identify any new risks or
opportunities
arising
from
actions
to
address
material impacts, risks or opportunities (IROs). This
is because the implementation of such actions is in
the planning phase and will be analyzed in future
assessments.
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Risk identification represents the activity through
which risks are detected, acknowledged, recorded,
and communicated at the organizational level,
according to the Risk Management Procedure
(ELSA-PS-6.1). All identified risks will be recorded
and documented in the Risk Registry and control/
treatment
measures.
This process is integrated into the company’s general
risk management process through the following
stages:
• Identification of potential risks: Risks that could
affect
the
company’s
strategic
objectives
are identified based on the location, activity,
and process where the risk may materialize.
Identification methods include brainstorming,
structured or semi-structured interviews, and
checklists.
• Risk evaluation: Identified risks are evaluated
based on their probability of occurrence and
potential impact on the company. This involves
using quantitative and qualitative methods
to prioritize risks and determine which require
immediate attention.
• Risk management: Strategies are developed and
implemented to address identified risks, including
defined and recommended approaches to risks,
planned control measures, and ad hoc corrective
actions to manage risk consequences.
Opportunity identification is part of the company’s
general management process, according to ISO
9001 certification requirements, and aligns with
the company’s strategic objectives. Opportunity
identification is carried out within the risk identification
process and is a component of the Risk Registry and
control/treatment
measures.
In evaluating and establishing the materialization
probabilities
for
measured
risks,
the
following
thresholds are considered applicable for all activities
and processes carried out at ELSA, according to the
Risk Management Procedure (ELSA-PS-6.1). These
are: almost certain to happen; probable; possible;
unlikely; almost certain not to happen.
The magnitude of the effects of risks and opportunities
is evaluated based on their potential impact on
the company and is expressed in quantitative and
qualitative terms, and the nature of the effects of
risks and opportunities is analyzed to understand
how they may influence the company.
Regarding negative impacts, they are evaluated
based on the severity of potential effects and the
probability of their materialization. The definitions
of quantitative thresholds (e.g., emission levels or
resource consumption) and qualitative thresholds
(descriptions of operational or environmental risks)
originate from the risk management framework
presented in the Corporate Governance Code, which
establishes clear criteria for impact evaluation.
Positive impacts are analyzed in terms of the extent of
effects (such as extended benefits for the environment
or community), the scope of application, and the
probability of realization. Establishing evaluation
criteria, both quantitative (e.g., percentage reduction
in energy consumption) and qualitative, is detailed
in the Investor Relations Management Procedure,
which highlights the analysis and prioritization of
risks and opportunities in the context of sustainability
reporting.
The following types of data and metrics are used in
the process of identifying and evaluating impacts,
risks, and opportunities:
• Financial and operational data
These include financial metrics (such as profitability,
costs, revenues, and other relevant metrics) and
operational metrics reflecting the entity’s current
performance. These parameters are used to evaluate
material
impacts
and
opportunities
financially
(Investor Relations Management).
• Specific environmental, social, and governance
(ESG) metrics
Quantitative and qualitative data are used regarding
CO2 emissions, energy consumption, community
impact, and other sustainability aspects. These data
help determine material thresholds and evaluate risks
and opportunities with extended effects (Corporate
Governance Code).
• Feedback and data from internal and external
consultations
Information collected from periodic consultations
with stakeholders and internal and external experts
is used to adjust evaluations. This set of parameters
includes qualitative data from surveys, meetings,
and feedback reports, ensuring that the evaluation
reflects both internal and external perspectives
(Investor Relations Management).
If parameters differ from one entity to another, a
unified set is applied centrally (defined in the Investor
Relations Management Procedure). These elements
ensure that the process of identifying, evaluating, and
managing material impacts, risks, and opportunities
is based on rigorous and integrated analysis,
reflected in the Corporate Governance Code.
How stakeholders are included in the process
of identifying and evaluating impacts, risks, and
opportunities
is
established
primarily
through
the
Stakeholder
Engagement
Policy
and
the
Communication Policy in Investor Relations. Thus,
the company organizes an annual consultation of
stakeholders to identify relevant aspects of its activity
from their perspective and prioritize its initiatives.
Stakeholders defined in the policy are shareholders,
staff through the union, authorities, business partners,
clients/consumers and end-users, and civil society.
To conduct the consultation process, an internal
committee of experts is established to organize and
moderate the consultation. External experts with
consulting competencies in the subject matter of
the consultation can also be invited as observers/
consultants.
At the end of the consultation process, the committee
drafts a consultation report communicated to the
company’s executive/non-executive management
by including it in the documentation that forms the
basis for decision/plans/projects.
The importance of regular stakeholder consultations,
as well as organizing feedback sessions, meetings,
teleconferences, and studies to understand the
impact of communications and decisions, are also
mentioned in the Communication Policy in Investor
Relations.
The decisional process regarding the identification
and prioritization of material impacts, risks and
opportunities was conducted by the sustainability
team holding a coordination role for this project.
Afterwards the conclusions were approved at the
CGCPP level, and the Executive Management and
BoD were informed. In this process, Electrica Group
established a materiality degree of 5, so that the
topics that obtained a higher score following the
materiality assessment process were classified as
material.
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Following the company’s double materiality process, the final list of material topics according to CSRD
includes:
Material topic
Material sub-topic
Material sub-sub-topic
E1
Climate change
Climate change adaptation
E1
Climate change
Climate change mitigation
E1
Climate change
Energy
S1
Own workforce
Working conditions
Secure employment
S1
Own workforce
Working conditions
Social dialogue
S1
Own workforce
Working conditions
Health and safety
S1
Own workforce
Equal treatment and opportunities for
all
Training and skills
development
S1
Own workforce
Equal treatment and opportunities for
all
Measures against violence
and harassment in the
workplace
S1
Own workforce
Equal treatment and opportunities for
all
Diversity
S1
Own workforce
Other work-related rights
Privacy
S4
Consumers and end- users
Information-related impacts for
consumers and/or end-users
Access to (quality)
information
S4
Consumers and end- users
Information-related impacts for
consumers and/or end-users
Privacy
S4
Consumers and end- users
Social inclusion of consumers and/or
end-users
Access to products and
services
S4
Consumers and end- users
Social inclusion of consumers and/or
end-users
Responsible marketing
practices
G1
Business conduct
Corporate culture
G1
Business conduct
Protection of whistle-blowers
G1
Business conduct
Management of relationships with
suppliers including payment practices
G1
Business conduct
Corruption and bribery
Prevention and detection
including training
IRO-2 Disclosure requirements in ESRS covered by the undertaking’s
sustainability statement
Information regarding the management of material impacts, risks, and opportunities of Electrica Group
is presented in each specific chapter of this Sustainability Statement and is correlated with the minimum
reporting requirements regarding policies, actions, and objectives established at the Group level. The
disclosure requirements for this report are included in the table below.
Index of ESRS disclosure requirements
Standard
ESRS
Chapter
Disclosure requirement
ESRS 2
General disclosures
BP-1 General basis for the preparation of the sustainability
statement
ESRS 2
General disclosures
BP-2 Disclosures in relation to specific circumstances
ESRS 2
General disclosures
GOV-1 The role of the administrative, management and
supervisory bodies
ESRS 2
General disclosures
GOV-2 Information provided to and sustainability
matters addressed by the undertaking’s administrative,
management and supervisory bodies
ESRS 2
General disclosures
GOV-3 Integration of sustainability-related performance in
incentive schemes
ESRS 2
General disclosures
GOV-4 Statement on due diligence
ESRS 2
General disclosures
GOV-5 Risk management and internal controls over
sustainability reporting
ESRS 2
General disclosures
SBM-1 Strategy, business model and value chain
ESRS 2
General disclosures
SBM-2 Interests and views of stakeholders
ESRS 2
General disclosures
SBM-3 Material impacts, risks and opportunities and their
interaction with the business strategy and model
ESRS 2
General disclosures
IRO-1 Description of the processes to identify and assess
material impacts, risks and opportunities
ESRS 2
General disclosures
IRO-2 Disclosure requirements in ESRS covered by the
undertaking’s sustainability statement
ESRS E1
Climate change
ESRS 2 GOV-3 Integration of sustainability-related
performance in incentive schemes
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Standard
ESRS
Chapter
Disclosure requirement
ESRS E1
Climate change
E1-1 Transition plan for climate change mitigation
ESRS E1
Climate change
ESRS 2 SBM-3 Material impacts, risks and opportunities and
their interaction with strategy and business model
ESRS E1
Climate change
ESRS 2 IRO-1 Description of the processes to identify and
assess material impacts, risks and opportunities
ESRS E1
Climate change
E1-2 Policies related to climate change mitigation and
adaptation
ESRS E1
Climate change
E1-3 Actions and resources in relation to climate change
policies
ESRS E1
Climate change
E1-4 Targets related to climate change mitigation and
adaptation
ESRS E1
Climate change
E1-5 Energy consumption and mix
ESRS E1
Climate change
E1-6 Gross Scopes 1, 2, 3 and Total GHG emissions
ESRS E1
Climate change
E1-7 GHG removals and GHG mitigation projects financed
through carbon credits
ESRS E1
Climate change
E1-8 Internal carbon pricing
ESRS E1
Climate change
E1-9 Anticipated financial effects from material physical
and transition risks and potential climate-related
opportunities - we apply the phase-in provisions in
Appendix C of ESRS 1
ESRS S1
Own workforce
ESRS 2 SBM-3 – Material impacts, risks and opportunities
and their interaction with strategy and business model
ESRS S1
Own workforce
S1-1 – Policies related to own workforce
ESRS S1
Own workforce
S1-2 Processes for engaging with own workforce and
workers’ representatives about impacts
ESRS S1
Own workforce
S1-3 Processes to remediate negative impacts and
channels for own workforce to raise concerns
ESRS S1
Own workforce
S1-4 Acting on material impacts on own workforce, and
approaches to managing material risks and pursuing
material opportunities related to own workforce, and
effectiveness of those actions
ESRS S1
Own workforce
S1-5 Targets related to managing material negative
impacts, advancing positive impacts, and managing
material risks and opportunities
ESRS S1
Own workforce
S1-6 Characteristics of the undertaking’s employees
Standard
ESRS
Chapter
Disclosure requirement
ESRS S1
Own workforce
S1-7 Characteristics of non-employees in the undertaking’s
own workforce
ESRS S1
Own workforce
S1-8 Collective bargaining coverage and social dialogue
ESRS S1
Own workforce
S1-9 Diversity metrics
ESRS S1
Own workforce
S1-11 Social protection
ESRS S1
Own workforce
S1-13 Training and skills development metrics
ESRS S1
Own workforce
S1-14 Health and safety metrics
ESRS S1
Own workforce
S1-17 Incidents, complaints and severe human rights
impacts
ESRS S4
Consumers and end-users
ESRS 2 SBM-3 Material impacts, risks and opportunities and
their interaction with strategy and business model
ESRS S4
Consumers and end-users
S4-1 Policies related to consumers and end-users
ESRS S4
Consumers and end-users
S4-2 Processes for engaging with consumers and end-
users about impacts
ESRS S4
Consumers and end-users
S4-3 Processes to remediate negative impacts and
channels for consumers and end-users to raise concerns
ESRS S4
Consumers and end-users
S4-4 Taking action on material impacts on consumers and
end-users, and approaches to managing material risks
and pursuing material opportunities related to consumers
and end-users, and effectiveness of those actions
ESRS S4
Consumers and end-users
S4-5 Targets related to managing material negative
impacts, advancing positive impacts, and managing
material risks and opportunities
ESRS G1
Business conduct
ESRS 2 GOV-1 The role of the administrative, supervisory
and management bodies
ESRS G1
Business conduct
ESRS 2 IRO-1 Description of the processes to identify and
assess material impacts, risks and opportunities
ESRS G1
Business conduct
G1-1 Business conduct policies and corporate culture
ESRS G1
Business conduct
G1-2 Management of relationships with suppliers
ESRS G1
Business conduct
G1-3 Prevention and detection of corruption and bribery
ESRS G1
Business conduct
G1-4 Incidents of corruption or bribery
ESRS G1
Business conduct
G1-6 Payment practices
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Disclosure Requirement
and related datapoint
SFDR reference
Pillar 3 reference
Benchmark
Regulation
reference
EU Climate
Law reference
Reporting
(chapter, section)
/ Relevance (non-
material and/or
phased-in / not
applicable)
ESRS 2 GOV-1 Board’s
gender diversity
paragraph 21(d)
Indicator No.
13 of Table 1 of
Annex 1
Commission
Delegated
Regulation
(EU) 2020/1816,
Annex II
General
disclosures, GOV-1
ESRS 2 GOV-1 Percentage
of board members
who are independent
paragraph 21(e)
Delegated
Regulation
(EU) 2020/1816,
Annex II
General
disclosures, GOV-1
ESRS 2 GOV-4 Statement
on due diligence
paragraph 30
Indicator No.
10 Table 3 of
Annex 1
General
disclosures, GOV-4
ESRS 2 SBM-1 Involvement
in activities related
to fossil fuel activities
paragraph 40(d)(i)
Indicators No
4 Table
1 of Annex 1
Article 449a of
Regulation (EU)
No. 575 / 2013;
Commission
Implementing
Regulation (EU)
2022/2453, Table
1: Qualitative
information on
environmental
risk and Table
2: Qualitative
information on
social risk
Delegated
Regulation
(EU) 2020/1816,
Annex II
General
disclosures, ESRS 2
SBM-1
ESRS 2 SBM-1 Involvement
in activities related to
chemical production
paragraph 40(d)(ii)
Indicator No.
9, Table 2 of
Annex 1
Delegated
Regulation
(EU) 2020/1816,
Annex II
Not applicable
ESRS 2 SBM-1 Involvement
in activities related to
controversial weapons
paragraph 40(d)(iii)
Indicator No.
14, Table 1 of
Annex 1
Delegated
Regulation
(EU) 2020/1818,
Article 12(1)
of Delegated
Regulation
(EU) 2020/1816,
Annex II
Not applicable
Disclosure Requirement
and related datapoint
SFDR reference
Pillar 3 reference
Benchmark
Regulation
reference
EU Climate
Law reference
Reporting
(chapter, section)
/ Relevance (non-
material and/or
phased-in / not
applicable)
ESRS 2 SBM-1 Involvement
in activities related
to the cultivation and
production of tobacco
paragraph 40(d)(iv)
Delegated
Regulation
(EU) 2020/1818,
Article 12(1)
of Delegated
Regulation
(EU) 2020/1816,
Annex II
Not applicable
ESRS E1-1 Transition
plan to reach climate
neutrality by 2050
paragraph 14
Regulation
(EU) 2021/1119,
Article 2(1)
ESRS Climate
Change, E1-1,
ESRS E1-1 Undertakings
excluded from Paris-
aligned Benchmarks
paragraph 16(g)
Article 449a of
Regulation (EU)
No 575/2013;
Commission
Implementing
Regulation
(EU) 2022/2453
Template 1: Banking
book-Climate
Change transition
risk: Credit quality
of exposures by
sector, emissions
and residual
maturity
Article 12.1 (d)
to (g), and
Article 12.2
Not applicable
ESRS E1-4 GHG emission
reduction targets
paragraph 34
Indicator No.
4 Table 2 of
Annex 1
Article 449a of
Regulation (EU)
No 575/2013;
Commission
Implementing
Regulation
(EU) 2022/2453
Template 3:
Banking book-
Climate change
transition risk:
alignment metrics
Delegated
Regulation
(EU) 2020/1818,
Article 6
Climate change,
E1-4
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Disclosure Requirement
and related datapoint
SFDR reference
Pillar 3 reference
Benchmark
Regulation
reference
EU Climate
Law reference
Reporting
(chapter, section)
/ Relevance (non-
material and/or
phased-in / not
applicable)
ESRS E1-5 Energy
consumption from fossil
sources disaggregated
by source (only high
climate impact sectors)
paragraph 38
Indicator No.
5, Table 1 and
Indicator No.
5, Table 2 of
Annex 1
Climate change,
E1-5
ESRS E1-5 Energy
consumption and mix
paragraph 37
Indicator No.
5, Table 1 of
Annex 1
Climate change,
E1-5
ESRS E1-5 Energy intensity
associated with activities
in high climate impact
sectors
paragraphs 40 to 43
Indicator No.
6, Table 1 of
Annex 1
Climate
change, E1-5
ESRS E1-6
Gross Scope 1, 2, 3 and
total GHG emissions
paragraph 44
Indicators No. 1
and 2,
Table of Annex 1
Article 449a;
Regulation (EU)
No. 575/2013;
Commission
Implementing
Regulation (EU)
2022/2453
Template 1: Banking
book - Climate
change transition
risk: Credit quality
of exposures by
sector, emissions
and residual
maturity
Delegated
Regulation
(EU) 2020/1818,
Article 5(1),
Article 6 and
Article 8(1)
Climate change,
E1-6
ESRS E1-6
Gross GHG emissions
intensity
paragraphs 53 to 55
Indicators No.
3, Table 1 of
Annex 1
Article 449a of
Regulation (EU)
No. 575/2013;
Commission
Implementing
Regulation (EU)
2022/2453
Template 3:
Banking book -
Climate change
transition risk:
alignment
indicators
Delegated
Regulation
(EU) 2020/1818,
Article 8(1)
Climate change,
E1-6
Disclosure Requirement
and related datapoint
SFDR reference
Pillar 3 reference
Benchmark
Regulation
reference
EU Climate
Law reference
Reporting
(chapter, section)
/ Relevance (non-
material and/or
phased-in / not
applicable)
ESRS E1-7
GHG removals and
carbon credits
paragraph 56
Regulation
(EU) 2021/1119,
Article 2(1)
Climate change,
E1-7
ESRS E1-9
Exposure of the
benchmark portfolio to
climate-related physical
risks paragraph 66
Delegated
Regulation
(EU) 2020/1818,
Annex II
Delegated
Regulation
(EU) 2020/1816,
Annex II
Not applicable
ESRS E1-9
Disaggregation of
monetary amounts
by acute and chronic
physical risk paragraph
66(a)
ESRS E1-9
Location of significant
assets at material
physical risk
paragraph 66(c).
Article 449a
Regulation (EU)
No 575/2013;
Commission
Implementing
Regulation (EU)
2022/2453,
paragraphs 46
and 47; Template
5: Banking book –
Climate change
physical risk:
Exposures subject
to physical risk.
Climate change,
E1-9, phased-in
ESRS E1-9
Breakdown of the
carrying value of its real
estate assets by energy-
efficiency classes
paragraph 67(c).
Article 449a of
Regulation (EU)
No. 575/2013;
Commission
Implementing
Regulation
(EU) 2022/2453
paragraph 34;
Template 2:
Banking Book –
Climate change
transition risk:
Loans collateralized
by immovable
property — Energy
efficiency of
collateral
Not calculated
360
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ELECTRICA 2024 ANNUAL REPORT
Disclosure Requirement
and related datapoint
SFDR reference
Pillar 3 reference
Benchmark
Regulation
reference
EU Climate
Law reference
Reporting
(chapter, section)
/ Relevance (non-
material and/or
phased-in / not
applicable)
ESRS E1-9
Degree of exposure of
the portfolio to climate-
related opportunities
paragraph 69
Delegated
Regulation
(EU) 2020/1818,
Annex II
Not calculated
ESRS E2-4
Amount of each pollutant
listed in Annex II of
the Regulation E-PRTR
(European Pollutant
Release and Transfer
Registry) emitted to
air, water and soil,
paragraph 28
Indicator
number 8 Table
#1 of Annex 1
Indicator
number 2 Table
#2 of Annex 1
Indicator
number 1 Table
#2 of Annex 1
Indicator
number 3 Table
#2 of Annex 1
Not a material
topic
ESRS E3-1
Water and marine
resources paragraph 9
Indicator
number 7 Table
#2 of Annex 1
Not a material
topic
ESRS E3-1
Dedicated policy
paragraph 13
Indicator
number 8 Table
2 of Annex 1
Not a material
topic
ESRS E3-1
Sustainable oceans and
seas
paragraph 14
Indicator
number 12
Table #2 of
Annex 1
Not a material
topic
ESRS E3-4
Total water recycled and
reused paragraph 28 (c)
Indicator
number 6.2
Table #2 of
Annex 1
Not a material
topic
ESRS E3-4
Total water consumption
in m3 per net revenue on
own operations
paragraph 29
Indicator
number 6.1
Table #2 of
Annex 1
Not a material
topic
Disclosure Requirement
and related datapoint
SFDR reference
Pillar 3 reference
Benchmark
Regulation
reference
EU Climate
Law reference
Reporting
(chapter, section)
/ Relevance (non-
material and/or
phased-in / not
applicable)
ESRS 2- IRO 1 - E4
paragraph 16 (a) i
Indicator
number 7 Table
#1 of Annex 1
Not a material
topic
ESRS 2- IRO 1 - E4
paragraph 16 (b)
Indicator
number 10
Table #2 of
Annex 1
Not a material
topic
ESRS 2- IRO 1 - E4
paragraph 16 (c)
Indicator
number 14
Table #2 of
Annex 1
Not a material
topic
ESRS E4-2
Sustainable land /
agriculture practices or
policies
paragraph 24 (b)
Indicator
number 11 Table
#2 of Annex 1
Not a material
topic
ESRS E4-2
Sustainable oceans /
seas practices or policies
paragraph 24 (c)
Indicator
number 12
Table #2 of
Annex 1
Not a material
topic
ESRS E4-2
Policies to address
deforestation paragraph
24 (d)
Indicator
number 15
Table #2 of
Annex 1
Not a material
topic
ESRS E5-5
Non-recycled waste
paragraph 37 (d)
Indicator
number 13
Table #2 of
Annex 1
Not a material
topic
ESRS E5-5
Hazardous waste and
radioactive waste
paragraph 39
Indicator
number 9 Table
#1 of Annex 1
Not a material
topic
ESRS 2- SBM3 - S1
Risk of incidents of forced
labor paragraph 14 (f)
Indicator
number 13
Table #3 of
Annex I
Own workforce,
S1-SBM 3
362
363
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ELECTRICA 2024 ANNUAL REPORT
Disclosure Requirement
and related datapoint
SFDR reference
Pillar 3 reference
Benchmark
Regulation
reference
EU Climate
Law reference
Reporting
(chapter, section)
/ Relevance (non-
material and/or
phased-in / not
applicable)
ESRS 2- SBM3 - S1
Risk of incidents of child
labour
paragraph 14 (g)
Indicator
number 12
Table #3 of
Annex I
Own workforce,
S1-SBM 3
ESRS S1-1
Human rights policy
commitments paragraph
20
Indicator No.
9 Table 3 and
indicator No.
11 Table 1 of
Annex I
Own workforce,
S1-1
ESRS S1-1
Due diligence policies
on issues addressed
by the fundamental
International Labor
Organization
Conventions 1 to 8,
paragraph 21
Delegated
Regulation
(EU) 2020/1816,
Annex II
Own workforce,
S1-1
ESRS S1-1
processes and measures
for preventing trafficking
in human beings
paragraph 22
Indicator
number 11 Table
#3 of Annex I
Own workforce,
S1-1
ESRS S1-1
workplace accident
prevention policy or
management system
paragraph 23
Indicator
number 1 Table
#3 of Annex I
Own workforce,
S1-1
ESRS S1-3
grievance/complaints
handling mechanisms
paragraph 32 (c)
Indicator
number 5 Table
#3 of Annex I
Own workforce,
S1-3
ESRS S1-14
Number of fatalities
and number and rate of
work-related accidents
paragraph 88 (b) and
(c)
Indicator
number 2 Table
#3 of Annex I
Delegated
Regulation
(EU) 2020/1816,
Annex II
Own workforce,
S1-14
Disclosure Requirement
and related datapoint
SFDR reference
Pillar 3 reference
Benchmark
Regulation
reference
EU Climate
Law reference
Reporting
(chapter, section)
/ Relevance (non-
material and/or
phased-in / not
applicable)
ESRS S1-14
Number of days lost
to injuries, accidents,
fatalities or illness
paragraph 88 (e)
Indicator
number 3 Table
#3 of Annex I
Own workforce,
S1-14
ESRS S1-16
Unadjusted gender pay
gap
paragraph 97 (a)
Indicator
number 12
Table #1 of
Annex I
Delegated
Regulation
(EU) 2020/1816,
Annex II
Not a material
topic
ESRS S1-16
Excessive CEO pay ratio
paragraph 97 (b)
Indicator
number 8 Table
#3 of Annex I
Not a material
topic
ESRS S1-17
Incidents of
discrimination
paragraph 103(a)
Indicator No.
7, Table 3 of
Annex I
Own workforce,
S1-17
ESRS S1-17 Non-
compliance with UNGPs
on Business and Human
Rights and OECD
paragraph 104 (a)
Indicator
number 10
Table #1 and
Indicator n. 14
Table #3 of
Annex I
Delegated
Regulation
(EU) 2020/1816,
Annex II
Delegated
Regulation
(EU) 2020/1818,
Article 12(1)
Own workforce,
S1-17
ESRS 2- SBM3 – S2
Significant risk of child
labor or forced labor
in the value chain
paragraph 11 (b)
Indicators
number 12 and
n. 13 Table #3 of
Annex I
Not a material
topic
ESRS S2-1
Human rights policy
commitments
paragraph 17
Indicator
number 9
Table #3 and
Indicator n.
11 Table #1 of
Annex 1
Not a material
topic
364
365
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SUSTAINABILITY REPORTING FOR THE YEAR 2024
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ELECTRICA 2024 ANNUAL REPORT
Disclosure Requirement
and related datapoint
SFDR reference
Pillar 3 reference
Benchmark
Regulation
reference
EU Climate
Law reference
Reporting
(chapter, section)
/ Relevance (non-
material and/or
phased-in / not
applicable)
ESRS S2-1
Policies related to value
chain workers
paragraph 18
Indicator
number 11 and
n. 4 Table #3 of
Annex 1
Not a material
topic
ESRS S2-1
Non-respect of UNGPs
on Business and Human
Rights principles and
OECD guidelines
paragraph 19
Indicator
number 10
Table #1 of
Annex 1
Delegated
Regulation
(EU) 2020/1816,
Annex II
Delegated
Regulation
(EU) 2020/1818,
Article 12(1)
Not a material
topic
ESRS S2-1
Due diligence policies
on issues addressed
by the fundamental
International Labor
Organization
Conventions 1 to 8,
paragraph 19
Delegated
Regulation
(EU) 2020/1816,
Annex II
Not a material
topic
ESRS S2-4
Human rights issues and
incidents connected
to its upstream and
downstream value chain
paragraph 36
Indicator
number 14
Table #3 of
Annex 1
Not a material
topic
ESRS S3-1
Human rights policy
commitments paragraph
16
Indicator
number 9 Table
#3 of Annex 1
and Indicator
number 11 Table
#1 of Annex 1
Not a material
topic
ESRS S3-1
non-respect of UNGPs
on Business and Human
Rights, ILO principles or
OECD guidelines
paragraph 17
Indicator
number 10
Table #1 Annex
1
Delegated
Regulation
(EU) 2020/1816,
Annex II
Delegated
Regulation
(EU) 2020/1818,
Article 12(1)
Not a material
topic
Disclosure Requirement
and related datapoint
SFDR reference
Pillar 3 reference
Benchmark
Regulation
reference
EU Climate
Law reference
Reporting
(chapter, section)
/ Relevance (non-
material and/or
phased-in / not
applicable)
ESRS S3-4
Human rights issues and
incidents paragraph 36
Indicator
number 14
Table #3 of
Annex 1
Not a material
topic
ESRS S4-1
Policies related to
consumers and end-
users paragraph 16
Indicator
number 9
Table #3 and
Indicator
number 11 Table
#1 of Annex 1
Consumers and
end-users, S4-1
ESRS S4-1
Non-respect of UNGPs
on Business and Human
Rights and OECD
guidelines
paragraph 17
Indicator
number 10
Table #1 of
Annex 1
Delegated
Regulation
(EU) 2020/1816,
Annex II
Delegated
Regulation
(EU) 2020/1818,
Article 12(1)
Consumers and
end-users, S4-1
ESRS S4-4
Human rights issues and
incidents paragraph 35
Indicator
number 14
Table #3 of
Annex 1
Consumers and
end-users, S4-4
ESRS G1-1
United Nations
Convention against
Corruption paragraph
10 (b)
Indicator
number 15
Table #3 of
Annex 1
Business conduct,
G1-1
ESRS G1-1
Protection of whistle-
blowers
paragraph 10 (d)
Indicator
number 6 Table
#3 of Annex 1
Not a material
topic
ESRS G1-4
Fines for violation of
anti-corruption and anti-
bribery laws paragraph
24 (a)
Indicator
number 17
Table #3 of
Annex 1
Regulamentul
delegat (UE)
2020/1816,
anexa II)
Business conduct,
G1-4
ESRS G1-4
Standards of anti-
corruption and anti-
bribery
paragraph 24 (b)
Indicator
number 16
Table #3 of
Annex 1
Business conduct,
G1-4
366
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DIRECTORS’ REPORT FOR THE YEAR 2024
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ELECTRICA 2024 ANNUAL REPORT
ELECTRICA 2024 ANNUAL REPORT
MDR-P Policies adopted to manage material sustainability matters
Material topics are managed by Electrica through a
series of policies and actions aimed at preventing,
mitigating, and remedying material actual and
potential impacts, addressing material risks, and/or
pursuing material opportunities.
In
accordance
with
the
Group’s
2024-2030
Sustainability Strategy, the development of Initiative
Plans and Annual Plans follows the formulation of
the Strategy, based on which the implementation
of the Strategy is carried out and the achievement
of performance metrics is monitored. All executive
managers, both at ELSA level and within subsidiaries,
are responsible for reviewing the Initiative Plans
and implementing the performance metrics in the
performance management system.
Not all material ESRS topics have policies and actions
in place to mitigate negative impacts. Where there
are no policies or actions adopted, this Sustainability
Statement includes a timeframe within which
Electrica intends to adopt them.
MDR-A Actions and resources in relation to material sustainability
matters
Actions required for each relevant ESRS topic
are presented in the respective sections of the
Sustainability Statement. If applicable, it specifies
whether the implementation of an action plan
requires significant operational expenditures (Opex)
and/or significant capital expenditures (Capex).
MDR-T Tracking effectiveness of policies and actions through targets
Metrics and targets for each material ESRS topic
are presented in the respective sections of the
Sustainability Statement. If the metrics and targets
are not adopted, reasons for such non-adoption
are provided in the relevant sections of the
Statement, together with the timeframe in which
Electrica Group intends to adopt them.
The metrics are also presented in the section of the
Statement - ESRS reporting requirements covered
by the sustainability statement of the undertaking
- which centralizes material topics, reporting
requirements, and material data points related to
the material topic and metrics that Electrica Group
uses to evaluate performance and effectiveness
regarding material impact, risk, or opportunity.
Disclosures pursuant to Article 8 of Regulation (EU) 2020/852
(Taxonomy Regulation)
Regulation (EU) 2020/852 of the European Parliament
and of the Council of 18 June 2020, establishing a
framework to facilitate sustainable investments and
amending Regulation (EU) 2019/2088 (“EU Taxonomy
Regulation”
or
“the
Regulation”),
defines
the
classification system for environmentally sustainable
economic activities with the aim of directing
capital flows towards a sustainable economy. The
EU Taxonomy facilitates sustainable investments
and ensures market transparency by defining four
essential criteria that economic activities must meet
to be considered environmentally sustainable, in
alignment with the six environmental objectives.
Determining the eligibility of economic activities is
based on the description of economic activities or
NACE codes, which must match the description of
activities mentioned in the Delegated Acts related
to the EU Taxonomy Regulation: Delegated Act
2178/2021 on disclosure obligations and Delegated
Act 2021/2139 (“Climate Delegated Act”) amended
and supplemented by Delegated Act 2022/1214
and
Delegated
Act
2023/2485
for
economic
activities
contributing
substantially
to
climate
objectives: climate change mitigation and climate
change adaptation; and Delegated Act 2023/2486
(“Environmental
Delegated
Act”)
for
economic
activities substantially contributing to the other
four environmental objectives: sustainable use and
protection of water and marine resources, transition
to a circular economy, pollution prevention and
control, and protection and restoration of biodiversity
and ecosystems.
For economic activities to be considered “aligned,”
they must cumulatively meet the conditions outlined
in Article 3 of the Regulation4 :
• to substantially contribute to one or more
environmental objectives listed in Article 9 of the
Regulation by fulfilling technical criteria;
• do no significant harm to any of the remaining
environmental objectives (applying the “do-no-
significant-harm” principle - DNSH);
• comply with the minimum social safeguards
established in Article 18 of the Regulation;
• fulfill the applicable technical screening criteria
established by the Commission under Article 10
of the Regulation.
Non-financial undertakings must report data in
accordance with Article 8 of Regulation 2020/852, and
this report must include the following information:
• The proportion of turnover derived from products
or services associated with environmentally
sustainable economic activities;
• The proportion of capital expenditures (CapEx)
and operating expenditures (OpEx) related
to assets or processes tied to environmentally
sustainable economic activities.
The following sections present the analysis conducted
by Electrica Group for reporting specific information
about the economic activities carried out in the 2024
financial year (January 1, 2024 – December 31, 2024)
in compliance with Article 8 of the EU Taxonomy
Regulation. For this reporting period, Electrica Group
is required to disclose the eligibility and alignment
proportions of its economic activities, highlighting
their contribution to the six environmental objectives.
Determining the eligibility of economic activities within Electrica Group
The assessment of activities carried out by the Electrica
Group was conducted for each of the three financial
indicators (Turnover, CapEx, and OpEx) based on the
consolidated annual financial statements prepared
by the Company’s representatives in accordance
with the provisions of Order no. 2844/2016 issued by
the Ministry of Finance for the 2024 financial year.
The financial statement analysis aimed to identify
eligible economic activities and their eligibility
proportions, in line with the provisions of Delegated
Act no. 2178/2021 regarding disclosure requirements
and subsequent communications from the European
Commission concerning the interpretation and
application of certain requirements under the EU
Taxonomy Regulation and its subsequent Delegated
Acts.
The eligibility proportions were identified using
analytical accounting accounts. Double counting
of the values underlying the calculation of the
indicators was avoided by eliminating the values of
transactions concluded within the Group.
To identify eligible economic activities, an analysis
of the entire portfolio of activities performed across
all Electrica Group subsidiaries was carried out.
These activities were compared, both descriptively
and based on NACE codes, with economic activities
included in Annexes I and II of Delegated Act 2021/2139
and Annexes I – IV of Delegated Act 2023/2486.
None of the Group’s activities contribute to multiple
environmental objectives.
Turnover
Electrica Group is a key player in the electricity
distribution and supply market in Romania, as well
4 Regulation (EU) 2020/852 of the European Parliament and of the Council of 18 June 2020 on the establishment of a framework to facilitate sustainable investment and
amending Regulation (EU) 2019/2088.
368
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ELECTRICA 2024 ANNUAL REPORT
as one of the most important players in the energy
services sector. Electrica Group operates nationwide
through its subsidiaries, which provide electricity
distribution and supply services, as well as other
specific services in the energy sector.
In 2024, Electrica Group recorded a total turnover
of 8,995,202,000.00 RON, generated by the following
eligible economic activities:
• Generating electricity from renewable sources
–
Electrica
Group
has
established
three
photovoltaic parks5 operating under NACE6 3511
– Electricity production (NACE D35.11). The activity
of these facilities for generating electricity
from renewable sources falls under activity 4.1.
Electricity production using solar photovoltaic
technology, as outlined in Annex I of Delegated Act
2021/2139, representing an enabling activity that
contributes substantially to the environmental
objective of climate change mitigation. This
economic activity generated 0.14% (12,406,812.08
RON) of Electrica Group’s total turnover in 2024.
• Electricity distribution – This activity, carried out by
Distribuție Energie Electrică România S.A. (“DEER”),
under NACE code 3513 – Electricity distribution
(NACE D35.13), generated 52.18% (4,693,951,930.87
RON) of total turnover. It corresponds both in
terms of NACE code and description to activity
4.9. Electricity Transport and Distribution, as
outlined in Annex I of Delegated Act 2021/2139,
qualifying as an enabling activity that contributes
substantially to the environmental objective of
climate change mitigation.
NOTE: The turnover associated with the electricity
distribution activity initially reported for the financial
year ending December 31, 2023, has been updated
in the current reporting year to include the turnover
represented by the electricity distribution performed
by the distribution subsidiary, to the electricity supply
subsidiary. Previously, this value was reported under
non-eligible revenues obtained from electricity
supply.
Also, in 2024, Electrica Group generated revenues of
47.68% (4,288,843,257.05 RON) from other economic
activities not eligible according to the EU Taxonomy,
which consist of revenues from the supply of
electricity and natural gas and from providing
services for reconnecting end consumers to the
distribution
network.
Capital Expenditures (CapEx)
In accordance with Article 1.1.2.1 of Annex I of
Delegated Act 2021/2178, the CapEx denominator
covers additions to tangible and intangible assets
made during the financial year, before depreciation,
amortization, or any revaluations, including those
resulting
from
revaluations
and
impairments,
excluding changes in fair value.
The Group prepares two sets of annual consolidated
financial statements, both according to OMFP
2844/2016 and IFRS-EU. The difference between them
lies in the recognition of intangible assets in the
OMFP 2844/2016 set, corresponding to the revenues
from the production of intangible assets, due to
the additional CPT difference for the distribution
subsidiary. The assets are amortized over a period of
5 years. In the IFRS-EU financial statements set, set,
the revenues related to the CPT capitalized in the
previous period are recovered in that year, without
recording intangible assets, and the revenues
are included in the Group’s turnover. Thus, there
will be differences between the results of the two
sets of annual consolidated financial statements.
The difference in the financial position will be the
unamortized value of the intangible asset recorded
in the OMFP 2844/2016 financial statements set.
Given that the Group prepares two sets of annual
consolidated financial statements, we have included
two tables presenting ICP CapEx, one for each set of
financial statements.
In the 2024 financial year, the total value of the
CapEx denominator, which includes the total capital
expenditures made by the Electrica Group, was
1,364,660,987.40 RON according to Order 2844/2016
and 1,175,044,987.40 RON according to IFRS. Of the
total expenditures, 96.65% according to Order
2844/2016, and 96.10% according to IFRS, consisted of
expenses that fall into the following categories:
5 Sunwind Energy SRL („SWE”), New Trend Energy SRL („NTE”) and Foton Power Energy S.R.L. („FPE”)
6 NACE Rev. 2
1.1. Expenditures related to assets or processes
associated
with
eligible
taxonomy
economic
activities (Type A CapEx), consisting of:
• expansion of electricity generation capacities
from
renewable
sources
–
the
investment
represents 9.5% according to Order 2844/2016
(129,648,676.75
RON),
and
11.03%
according
to IFRS (129,648,676.75 RON) of total capital
expenditures, and it falls under enabling activity
4.1. Electricity generation using solar photovoltaic
technology, as outlined in Annex I of Delegated
Act 2021/2139, which substantially contributes to
the environmental objective of climate change
mitigation.
• construction or expansion of distribution systems
ensuring the transport of electricity in medium
and low-voltage networks – the investments
made accounted for 87.08% (1,188,304,777.24
RON) according to Order 2844/2016, and 84.97%
(998,489,000.00 RON) according to IFRS, out
of the total capital expenditures. These are
associated with enabling activity 4.9. Electricity
Transport and Distribution, as outlined in Annex
I of Delegated Act 2021/2139, which substantially
contributes to the environmental objective of
climate change mitigation.
1.2. Expenses incurred for the purchase of products
associated with the activities listed in points 7.3 –
7.6 of Annex I of the Climate Delegated Act, or other
economic activities listed in the delegated acts
adopted under the EU Taxonomy Regulation (Type C
CapEx):
• The purchase of air conditioning equipment
falls under activity 7.3 Installation, maintenance,
and repair of energy efficiency equipment, as
outlined in Annex I of Delegated Act 2021/2139,
being an activity that substantially contributes to
the environmental objective of climate change
mitigation. This investment represented 0.02%
according to Order 2844/2016 (311,384.09 RON),
and 0.03% according to IFRS (311,384.09 RON) out
of the total capital expenditures.
• The
purchase
of
photovoltaic
panels
falls
under letter a) of the substantial contribution
criterion for enabling activity 7.6. Installation,
maintenance, and repair of renewable energy
technologies, as outlined in Annex I of Delegated
Act 2021/2139, substantially contributing to the
environmental objective of climate
change
mitigation. This investment represented 0.05%
according to Order 2844/2016 (722,468.87 RON)
and 0.06% according to IFRS (722,468.87 RON) of
the total capital expenditures.
The
non-eligible
capital
expenditures
made
during the 2024 financial year accounted for 3.35%
(45,673,680.45 RON) according to Order 2844/2016,
and 3.90% (45,873,458.69 RON) according to IFRS, out
of the total expenditures.
Operating expenses (OpEx)
According to Article 1.1.3.1 of Annex I of Delegated
Act
2021/2178,
the
denominator
of
operating
expenses includes direct non-capitalized costs
related to research and development, building
renovation measures, short-term leasing contracts,
maintenance and repairs, as well as any other direct
expenses related to the current maintenance of
tangible assets by the company or the third party
to which these activities are outsourced, necessary
to ensure the continuous and effective operation of
these assets.
To identify the operating expenses corresponding to
these criteria, an analysis of the financial statements
was conducted, based both on the provisions
of the Delegated Act 2021/2178 and subsequent
Communications from the European Commission,
specifically 2022/C 385/017 and C/2023/3058. Thus,
the denominator value determined from the total
operating expenses amounted to 148,596,851.68 RON.
Operating
expenses
related
to
the
routine
maintenance of tangible assets include periodic
inspections, replacement of worn parts, cleaning and
disinfection materials, and maintenance services,
all necessary to ensure the efficient functioning of
7
FAQ12 – 2022/C 385/01
8 FAQ34 – C/2023/305
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ELECTRICA 2024 ANNUAL REPORT
ELECTRICA 2024 ANNUAL REPORT
equipment and the upkeep of buildings.
Following
the
analysis
of
operating
expenses
recorded in 2024, the following expenses related
to assets or processes associated with eligible
taxonomy economic activities (Type A OpEx) were
identified:
• Operating expenses related to the maintenance
and upkeep of photovoltaic electricity transport
and distribution networks, which fall under activity
4.1. Electricity generation using solar photovoltaic
technology accounted for 0.67% (992,560.53
RON) of the total OpEx denominator. This activity,
as outlined in Annex I of Delegated Act 2021/2139,
substantially contributes to the environmental
objective of climate change mitigation.
• Operating expenses related to the maintenance
and
upkeep
of
electricity
transport
and
distribution networks, which fall under activity 4.9.
Electricity Transport and Distribution, accounted
for 77.57% (115,272,992.63 RON) of the total OpEx
denominator. This activity, as outlined in Annex
I
of
Delegated
Act
2021/2139,
substantially
contributes to the environmental objective of
climate change mitigation.
Operating expenses related to the purchase of
products
originating
from
taxonomy-aligned
economic activities and individual measures that
enable target activities to become low-carbon
activities or lead to greenhouse gas emission
reductions, as well as individual building renovation
measures identified in the delegated acts adopted
under Article 10(3), Article 11(3), Article 12(2), Article
13(2), Article 14(2), or Article 15(2) of Regulation (EU)
2020/852, provided these measures are implemented
and operational within 18 months (Type C OpEx).
• Operating expenses related to the maintenance
and upkeep of air conditioning systems, which
fall under activity 7.3 Installation, maintenance,
and repair of energy efficiency equipment,
accounted for 0.27% (408,560.94 RON) of the total
OpEx denominator. This activity, as outlined in
Annex I of Delegated Act 2021/2139, substantially
contributes to the environmental objective of
climate change mitigation.
The operating expenses recorded in 2024 that are
non-eligible under the EU Taxonomy accounted for
21.48% (31,922,737.58 RON) of the total expenses.
Determining the alignment of Electrica Group’s eligible economic
activities
For eligible activities to be considered sustainable
or “aligned,” they must contribute substantially to at
least one of the six environmental objectives listed
in Article 9 of the EU Taxonomy Regulation, must not
significantly harm any of the other environmental
objectives, must comply with the minimum social
safeguards mentioned in Article 18 of the EU Taxonomy
Regulation9 and must meet the applicable technical
screening criteria established by the Commission in
accordance with Article 10 of the Regulation.
The assessment of eligible economic activities
to determine the proportion of alignment was
conducted for activities that significantly contribute
to the environmental objective of climate change
mitigation, based on the technical criteria established
by Delegated Act 2021/2139 and the evaluation criteria
set for the four applicable areas regarding minimum
social safeguards: human rights, corruption, taxation,
and competitive practices.
Following the assessment based on the applicable
technical criteria, it was found that these were not
fully met; therefore, they cannot be considered
aligned with the EU Taxonomy.
Electrica Group’s key performance indicators for the three financial
indicators
Turnover:
The
denominator
represents
the
net
turnover
obtained in the financial year 2024, recognized
based on the accounting policies presented in note
6 d) “Accounting Policies – Revenues” according to
the consolidated financial statements prepared in
accordance with OMFP 2844/2016, and recognized
based on the accounting policies presented in note
7 d) “Accounting Policies – Revenues” according to
the consolidated financial statements prepared in
accordance with IFRS.
The turnover amounting to 8,995,202,000.00 RON
according to the consolidated profit and loss
account reconciles with the total in Note 9 to the
annual consolidated financial statements prepared
in accordance with OMFP 2844/2016 and with Note
10 to the annual consolidated financial statements
prepared in accordance with IFRS.
The numerator of the indicator for eligible turnover
is defined as the net turnover derived from products
and services associated with economic activities
eligible for taxonomy.
Capital Expenditures (CapEx):
The denominator has been calculated in accordance
with both OMFP 2844/2016 and IFRS.
According to OMFP 2844/2016, the denominator
represents the total capital expenditures for the
acquisition of tangible (IAS 16) and intangible (IAS
38) assets made in the financial year 2024, based
on the accounting policies presented in notes 6
k) “Tangible Assets,” 6 m) “Intangible Assets in a
Service Concession Arrangement,” 6 n) “Intangible
Assets Related to the Utilization of Own Technological
Consumption (CPT),” and 6 o) “Other Intangible
Assets.” The capital expenditures reconcile with the
amounts presented in Note 22 “Tangible Assets” of
the financial statements prepared in accordance
with OMFP 2844/2016 for the financial year ended
December 31, 2024, under the lines “Entries” and
“Acquisition of Subsidiaries,” and in Note 23 “Intangible
Assets,” under the line “Entries.”
According to IFRS, the denominator represents the
total capital expenditures for the acquisition of
tangible (IAS 16) and intangible (IAS 38) assets made
in the financial year 2024, based on the accounting
policies presented in notes 7 l) “Tangible Assets,”
7 n) “Intangible Assets in a Service Concession
Arrangement,” and 7 o) “Other Intangible Assets.”
The capital expenditures reconcile with the amounts
presented in Note 23 “Tangible Assets” of the financial
statements prepared in accordance with IFRS for the
financial year ended December 31, 2024, under the
lines “Entries” and “Acquisition of Subsidiaries,” and
in Note 24 “Intangible Assets,” under the line “Entries.”
The numerator of the indicator for CapEx is defined
as investments associated with economic activities
eligible for taxonomy.
Operating Expenses (OpEx):
The denominator represents the total operating
expenses for the financial year 2024, determined in
accordance with the definition of this indicator in
Article 1.1.3.1, Annex I of Delegated Act 2021/2178.
The operating expenses related to the OpEx indicator,
analyzed for taxonomy purposes, are included
in the amounts presented in the trial balance, in
accounts 6021 “Expenses with auxiliary materials,”
6024 “Expenses with spare parts,” 6028 “Expenses
with other consumables,” 611 “Expenses with repairs
of buildings, equipment, machinery, and others,” 612
“Expenses with rents,” 614 “Expenses with studies and
research,” 615 “Expenses with professional training,”
and 628 “Other expenses with services performed by
third parties.”
The numerator of the indicator for OpEx represents
the operating expenses associated with economic
activities eligible for taxonomy.
The results of the evaluation of the economic
activities carried out by the Electrica Group in the
financial year 2024 are presented in the following
section, according to the templates provided in
Annex V of Delegated Act 2023/2486.
9 Regulation (EU) 2020/852 of the European Parliament and of the Council of 18 June 2020 on the establishment of a framework to facilitate sustainable investment and
amending Regulation (EU) 2019/2088.
372
373
DIRECTORS’ REPORT FOR THE YEAR 2024
DIRECTORS’ REPORT FOR THE YEAR 2024
SUSTAINABILITY REPORTING FOR THE YEAR 2024
SUSTAINABILITY REPORTING FOR THE YEAR 2024
ELECTRICA 2024 ANNUAL REPORT
ELECTRICA 2024 ANNUAL REPORT
Proportion of turnover from products or services associated with taxonomy- aligned economic
activities – disclosure covering financial year 2024
Financial year 2024
2024
Substantial contribution criteria
DNS H criteria
(“Does Not Significantly Harm”)
Minimum safeguards
Proportion of Taxonomy- aligned
(A.1.) or -eligible (A.2.) turnover,
year 2023
Category enabling activity
Category
transitional activity
Economic Activities
Code
Turnover
Proportion of Turnover
Climate change
mitigation
Climate change
adaptation
Water
Pollution
Circular Economy
Biodiversity
Climate change
mitigation
Climate change
adaptation
Water
Pollution
Circular economy
Biodiversity
RON
%
Y; N;
N/EL
Y; N;
N/EL
Y; N;
N/EL
Y ; N;
N/EL
Y; N;
N/EL
Y; N;
N/EL
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
%
E
T
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
A. TAXONOMY-ELIGIBLE ACTIVITIES
A. 1. Environmentally sustainable activities (Taxonomy-aligned)
-
-
-
0.00%
N/EL
N/EL
N/EL
N/EL
N/EL
N/EL
N
N
N
N
N
N
N
0.00%
-
-
Turnover of environmentally sustainable activities
(Taxonomy-aligned) (4.1)
-
0.00%
0%
0%
0%
0%
0%
0%
N
N
N
N
N
N
N
0.00%
Of which enabling
-
0.00%
0%
0%
0%
0%
0%
0%
N
N
N
N
N
N
N
0.00%
E
Of which transitional
0.00%
0%
N
N
N
N
N
N
N
0.00%
T
A.2. Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities)
EL;
N/EL;
EL;
N/EL;
EL;
N/EL;
EL;
N/EL;
EL;
N/EL;
EL;
N/EL;
Electricity generation using solar photovoltaic technology
CCM 4.1
12,406,812.08
0.14%
EL
N/EL
N/EL
N/EL
N/EL
N/EL
0.14%
Transmission and distribution of electricity
CCM 4.9
4,693,951,930.87
52.18%
EL
N/EL
N/EL
N/EL
N/EL
N/EL
44.64%
Turnover of Taxonomy- eligible but not environmentally
sustainable activities (not Taxonomy-aligned activities) (A.2)
4,706,358,742.95
52.32%
52.32%
0%
0%
0%
0%
0%
44.78%
Turnover of Taxonomy-eligible activities (A.1+A.2)
4,706,358,742.95
52.32%
52.32%
0%
0%
0%
0%
0%
44.78%
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES
Turnover of Taxonomy- non-eligible activities
4,288,843,257.05
47.68%
TOTAL (A + B)
8,995,202,000.00
100%
Proportion of CapEx from products or services associated with Taxonomy-aligned economic
activities – disclosure covering year 2024 according to OMFP 2844/2016
Financial year 2024
2024
Substantial contribution criteria
DNS H criteria
(“Does Not Significantly Harm”)
Minimum safeguards
Proportion of Taxonomy- aligned
(A.1.) or -eligible (A.2.) turnover,
year 2023
Category enabling activity
Category
transitional activity
Economic Activities
Code
Turnover
Proportion of Turnover
Climate change
mitigation
Climate change
adaptation
Water
Pollution
Circular Economy
Biodiversity
Climate change
mitigation
Climate change
adaptation
Water
Pollution
Circular economy
Biodiversity
RON
%
Y; N;
N/EL
Y; N;
N/EL
Y; N;
N/EL
Y ; N;
N/EL
Y; N;
N/EL
Y; N;
N/EL
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
%
E
T
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
A. TAXONOMY-ELIGIBLE ACTIVITIES
A. 1. Environmentally sustainable activities (Taxonomy-aligned)
-
-
-
0.00%
N/EL
N/EL
N/EL
N/EL
N/EL
N/EL
N
N
N
N
N
N
N
0.00%
-
-
CapEx of environmentally sustainable activities
(Taxonomy-aligned) (4.1)
-
0.00%
0%
0%
0%
0%
0%
0%
N
N
N
N
N
N
N
0.00%
Of which enabling
-
0.00%
0%
0%
0%
0%
0%
0%
N
N
N
N
N
N
N
0.00%
E
Of which transitional
-
0.00%
0%
N
N
N
N
N
N
N
0.00%
T
A.2. Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities)
EL;
N/EL;
EL;
N/EL;
EL;
N/EL;
EL;
N/EL;
EL;
N/EL;
EL;
N/EL;
Electricity generation using solar photovoltaic technology
CCM 4.1
129,648,676.75
9.50%
EL
N/EL
N/EL
N/EL
N/EL
N/EL
0.92%
Transmission and distribution of electricity
CCM 4.9
1,188,304,777.24
87.08%
EL
N/EL
N/EL
N/EL
N/EL
N/EL
66.56%
Installation, maintenance and repair of energy efficiency
equipment
CCM 7.3
311,384.09
0.02%
EL
N/EL
N/EL
N/EL
N/EL
N/EL
0.00%
Installation, maintenance and repair of renewable energy
technologies
CCM 7.6
722,468.87
0.05%
EL
N/EL
N/EL
N/EL
N/EL
N/EL
0.04%
CapEx of Taxonomy- eligible but not environmentally sustainable
activities (no axonomy-aligned activities) (A.2)
1,318,987,306.95
96.65% 96.65%
0%
0%
0%
0%
0%
67.52%
CapEx of Taxonomy-eligible activities (A.1+A.2)
1,318,987,306.95
96.65% 96.65%
0%
0%
0%
0%
0%
67.52%
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES
Cap Ex of Taxonomy- non-eligible activities
45,673,680.45
3.35%
TOTAL (A + B)
1,364,660,987.40
100.00%
374
375
DIRECTORS’ REPORT FOR THE YEAR 2024
DIRECTORS’ REPORT FOR THE YEAR 2024
SUSTAINABILITY REPORTING FOR THE YEAR 2024
SUSTAINABILITY REPORTING FOR THE YEAR 2024
ELECTRICA 2024 ANNUAL REPORT
ELECTRICA 2024 ANNUAL REPORT
Proportion of CapEx from products or services associated with Taxonomy-aligned economic
activities – disclosure covering year 2024 according to IFRS-EU
Financial year 2024
2024
Substantial contribution criteria
DNS H criteria
(“Does Not Significantly Harm”)
Minimum safeguards
Proportion of Taxonomy- aligned
(A.1.) or -eligible (A.2.) turnover,
year 2023
Category enabling activity
Category
transitional activity
Economic Activities
Code
Turnover
Proportion of Turnover
Climate change
mitigation
Climate change
adaptation
Water
Pollution
Circular Economy
Biodiversity
Climate change
mitigation
Climate change
adaptation
Water
Pollution
Circular economy
Biodiversity
RON
%
Y; N;
N/EL
Y; N;
N/EL
Y; N;
N/EL
Y ; N;
N/EL
Y; N;
N/EL
Y; N;
N/EL
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
%
E
T
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
A. TAXONOMY-ELIGIBLE ACTIVITIES
A. 1. Environmentally sustainable activities (Taxonomy-aligned)
-
-
-
0.00%
N/EL
N/EL
N/EL
N/EL
N/EL
N/EL
N
N
N
N
N
N
N
0.00%
-
-
CapEx of environmentally sustainable activities
(Taxonomy-aligned) (4.1)
-
0.00%
0%
0%
0%
0%
0%
0%
N
N
N
N
N
N
N
0.00%
Of which enabling
-
0.00%
0%
0%
0%
0%
0%
0%
N
N
N
N
N
N
N
0.00%
E
Of which transitional
-
0.00%
0%
N
N
N
N
N
N
N
0.00%
T
A.2. Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities)
EL;
N/EL;
EL;
N/EL;
EL;
N/EL;
EL;
N/EL;
EL;
N/EL;
EL;
N/EL;
Electricity generation using solar photovoltaic technology
CCM 4.1
129,648,676.75
11.03%
EL
N/EL
N/EL
N/EL
N/EL
N/EL
0.94%
Transmission and distribution of electricity
CCM 4.9
998,489,000.00
84.97%
EL
N/EL
N/EL
N/EL
N/EL
N/EL
65.97%
Installation, maintenance and repair of energy efficiency
equipment
CCM 7.3
311,384.09
0.03%
EL
N/EL
N/EL
N/EL
N/EL
N/EL
0.00%
Installation, maintenance and repair of renewable energy
technologies
CCM 7.6
722,468.87
0.06%
EL
N/EL
N/EL
N/EL
N/EL
N/EL
0.04%
CapEx of Taxonomy- eligible but not environmentally sustainable
activities (no axonomy-aligned activities) (A.2)
1,129,171,529.71
96.10% 96.10%
0%
0%
0%
0%
0%
66.95%
CapEx of Taxonomy-eligible activities (A.1+A.2)
1,129,171,529.71
96.10% 96.10%
0%
0%
0%
0%
0%
66.95%
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES
CapEx of Taxonomy- non-eligible activities
45,873,457.69
3.90%
TOTAL (A + B)
1,175,044,987.40
100.00%
Proportion of OpEx from products or services associated with Taxonomy- aligned economic
activities – disclosure covering financial year 2024
Financial year 2024
2024
Substantial contribution criteria
DNS H criteria
(“Does Not Significantly Harm”)
Minimum safeguards
Proportion of Taxonomy- aligned
(A.1.) or -eligible (A.2.) turnover,
year 2023
Category enabling activity
Category
transitional activity
Economic Activities
Code
Turnover
Proportion of Turnover
Climate change
mitigation
Climate change
adaptation
Water
Pollution
Circular Economy
Biodiversity
Climate change
mitigation
Climate change
adaptation
Water
Pollution
Circular economy
Biodiversity
RON
%
Y; N;
N/EL
Y; N;
N/EL
Y; N;
N/EL
Y ; N;
N/EL
Y; N;
N/EL
Y; N;
N/EL
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
%
E
T
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
A. TAXONOMY-ELIGIBLE ACTIVITIES
A. 1. Environmentally sustainable activities (Taxonomy-aligned)
-
-
-
0.00%
N/EL
N/EL
N/EL
N/EL
N/EL
N/EL
N
N
N
N
N
N
N
0.00%
-
-
OpEx of environmentally sustainable activities
(Taxonomy-aligned) (4.1)
-
0.00%
0%
0%
0%
0%
0%
0%
N
N
N
N
N
N
N
0.00%
Of which enabling
-
0.00%
0%
0%
0%
0%
0%
0%
N
N
N
N
N
N
N
0.00%
E
Of which transitional
-
0.00%
0%
N
N
N
N
N
N
N
0.00%
T
A.2. Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities)
EL;
N/EL;
EL;
N/EL;
EL;
N/EL;
EL;
N/EL;
EL;
N/EL;
EL;
N/EL;
Electricity generation using solar photovoltaic technology
CCM 4.1
992,560.53
0.67%
EL
N/EL
N/EL
N/EL
N/EL
N/EL
0.10%
Transmission and distribution of electricity
CCM 4.9
115,272,992.63
77.57%
EL
N/EL
N/EL
N/EL
N/EL
N/EL
99.89%
Installation, maintenance and repair of energy efficiency
equipment
CCM 7.3
408,560.94
0.27%
EL
N/EL
N/EL
N/EL
N/EL
N/EL
0.00%
OpEx of Taxonomy- eligible but not environmentally sustainable
activities (no axonomy-aligned activities) (A.2)
116,674,114.10
78.52% 78.52%
0%
0%
0%
0%
0%
99.99%
OpEx of Taxonomy-eligible activities (A.1+A.2)
116,674,114.10
78.52% 78.52%
0%
0%
0%
0%
0%
99.99%
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES
OpEx of Taxonomy- non-eligible activities
31,922,737.58
21.48%
TOTAL (A + B)
148,596,851.68
100.00%
376
377
DIRECTORS’ REPORT FOR THE YEAR 2024
DIRECTORS’ REPORT FOR THE YEAR 2024
SUSTAINABILITY REPORTING FOR THE YEAR 2024
SUSTAINABILITY REPORTING FOR THE YEAR 2024
ELECTRICA 2024 ANNUAL REPORT
ELECTRICA 2024 ANNUAL REPORT
Information mentioned in Article 8, paragraphs (6) and (7) regarding
nuclear activities and activities related to fossil gases10
The following table provides information on nuclear activities and activities related to fossil gases, in
accordance with the requirements of Article 8, paragraphs (6) and (7) of Delegated Act 2021/2178:
Row
Nuclear energy related activities
1
The undertaking carries out, funds or has exposures to research,
development, demonstration and deployment of innovative electricity
generation facilities that produce energy from nuclear processes with
minimal waste from the fuel cycle.
NO
2
The undertaking carries out, funds or has exposures to construction
and safe operation of new nuclear installations to produce electricity or
process heat, including for the purposes of district heating or industrial
processes such as hydrogen production, as well as their safety upgrades,
using best available technologies.
NO
3
The undertaking carries out, funds or has exposures to safe operation
of existing nuclear installations that produce electricity or process heat,
including for the purposes of district heating or industrial processes such
as hydrogen production from nuclear energy, as well as their safety
upgrades.
NO
Row
Fossil gas related activities
4
The undertaking carries out, funds or has exposures to construction or
operation of electricity generation facilities that produce electricity using
fossil gaseous fuels.
NO
5
The undertaking carries out, funds or has exposures to construction,
refurbishment, and operation of combined heat/cool and power
generation facilities using fossil gaseous fuels.
NO
6
The undertaking carries out, funds or has exposures to construction,
refurbishment and operation of heat generation facilities that produce
heat/cool using fossil gaseous fuels.
NO
Given that Electrica Group does not engage in economic activities related to nuclear energy and fossil gases,
it was not necessary to complete the other tables provided in Annex III of Delegated Act 2022/1214.
10 According to the template provided in Annex III of Delegated Act 2022/1214.
ESRS E1 Climate change
E SRS 2 GOV-3 Integration of sustainability-related performance in
incentive
schemes
According to the Remuneration Policy for Directors
and Executives of Electrica S.A. approved by Decision
of the Ordinary General Assembly of Shareholders no.
1 of 27 April 2023, the remuneration of members of
the Board of Directors and executives is structured
to
support
the
company’s
business
strategy,
sustainability and long-term interests.
The policy highlights the importance of aligning
remuneration
with
the
company’s
strategic
and sustainability objectives, while the Group
Sustainability Strategy 2024-2030 establishes the
inclusion of performance indicators related to
sustainability targets at executive management
level. Aligning the ways the executive management
is rewarded in consideration of the climate objectives
of the company is the responsibility of Electrica’s
Climate Governance and Public Affairs Committee.
This includes the issuing of recommendations for
the inclusion of key indicators related to climate
objectives in the compensation schemes provided
for in the remuneration policy. The Committee shall
also monitor and evaluate the achievement of these
indicators and may propose appropriate measures.
Electrica Group ensures that all employees, including
senior management, attend training sessions on the
Code of Ethics and Business Conduct. These sessions
are essential to encourage respect for the principles
of ethics, compliance and integrity in the personnel’s
daily work. Training is compulsory for new employees
at the beginning of their employment and is regularly
renewed so that employees are always aware of
changes or updates of policies and procedures.
Electrica Group has not yet set specific targets
for
the
integration
of
climate
change-related
performance in incentive schemes for the members
of the administrative, management and supervisory
bodies, but it considers assessing the possibility to
include such criteria in the next period. However,
the remuneration policy includes a performance
indicator regarding the fulfillment of the “zero impact
of the greenhouse gas emissions generated by
Electrica Group’s activity on the environment” target.
Detailed
information
on
the
integration
of
sustainability related performance into incentive
schemes is found in ESRS 2 Chapter—General
Disclosures.
E1-1 Transition plan for climate change mitigation
Electrica Group does not currently have a transition
plan that complies with the requirements of ESRS E1 –
Climate change. However, the company implemented
a sustainability strategy for the period 2024-2030,
which includes initiatives aimed at reducing carbon
footprint and energy consumption.
Even though there is no transition plan yet, Electrica
Group implemented in 2024 a series of actions, which
also lead to carbon footprint reduction. These are
detailed in the ESRS E1-3 chapter.
In the Group’s new Sustainability Strategy for the
period 2025-2030, the company set the following
targets on climate change mitigation and adaptation:
defining a climate change plan to establish GHG
Scope 1, 2 and 3 emissions reductions that the Group
is required to achieve by 2030 and 2050, as well as
the certification by Science Based Targets (SBTi) of
GHG reduction targets according to the transition
plan by 2028.
378
379
DIRECTORS’ REPORT FOR THE YEAR 2024
DIRECTORS’ REPORT FOR THE YEAR 2024
SUSTAINABILITY REPORTING FOR THE YEAR 2024
SUSTAINABILITY REPORTING FOR THE YEAR 2024
ELECTRICA 2024 ANNUAL REPORT
ELECTRICA 2024 ANNUAL REPORT
ESRS 2 SBM-3 Material impacts, risks and opportunities and their
interaction with strategy and business model
Electrica Group acknowledges that climate change is
a major challenge with implications for the economy,
the environment and society. The activity of Electrica
Group is directly influenced by the transition to a low-
carbon economy, with both exposure to climate risks
and opportunities to contribute to the decarbonation
objectives.
Electrica Group integrated climate considerations
into
the
Sustainability
Strategy
2024-2030,
committing itself to adopting short, medium and
long-term measures to reduce the carbon footprint
and integrate sustainability into the business model.
However, so far, the company has not carried out a
resilience analysis based on climatic scenarios and
cannot provide the information requested by ESRS
2 - SMB 3.
However, Electrica grounds its strategy and business
model on resilience principles, having the capacity to
manage significant impacts and risks, as well as to
capitalize on the opportunities identified. The impact,
risk and opportunity management process (IRO)
is integrated in the business strategy, which allows
sustainability priorities to be aligned with general
development objectives. By investing in infrastructure
modernization, the company improves its ability to
adapt to extreme phenomena and ensures continuity
of services. Electrica is also open to opportunities that
support energy transition, such as the integration
of renewable sources, the development of energy
storage solutions and consumption optimization.
This approach allows the company to remain
competitive, reduce the impact of climate change
on its operations and actively contribute to a more
sustainable energy system.
To get a full overview of the key factors in climate risk
assessment and strengthening strategic resilience,
the Group launched in 2024 a dedicated process
for identifying and managing climate risks. This was
achieved during the double materiality assessment,
providing a first evaluation of the impact of climate
risks on the Group’s activity.
In addition, through the Group’s Sustainability
Strategy for the period 2025-2030, adopted in
2024, the company undertook to carry out by 2026
a detailed analysis of exposure and vulnerabilities
to climate risks. Following the double materiality
assessment, Electrica Group identified significant
climate risks, which are classified and presented in
accordance with the Task Force on Climate-Related
Financial Disclosures (TCFD):
• Physical risks
• Hydro-meteorological damage is a significant
acute
risk
to
energy
infrastructure
with
the potential to cause major interruptions
in electricity supply. These events include
extreme
weather
phenomena,
such
as
storms,
floods,
ice
freezes
or
prolonged
droughts, which can damage critical power
grid equipment such as transmission lines,
transformers
and
distribution
stations.
In
such circumstances, infrastructure can suffer
rapid and unpredictable damage, leading
to unplanned interruptions in energy supply,
which affects both consumers and the stability
of the entire energy system. The impact of this
acute risk may include significant economic
losses, repair costs for damaged equipment
and, in some cases, a prolonged period of
interruption of services, especially in remote or
poorly accessible regions.
• Soil erosion and damage to underground pipes
represent a chronic risk to energy infrastructure,
with a slow but significant impact on the
stability and sustainability of the power grid.
Soil erosion can compromise the soil integrity
in which underground pipes are buried, which
can lead to their movement or breakage over
time. Over time, this chronic risk can cause
repeated interruptions of services and impose
significant additional costs for repairs and
maintenance. Soil erosion, fueled by factors
such as climate change, deforestation or
inadequate land management, can accelerate
damage to underground infrastructure, making
it more vulnerable to extreme weather events
or structural changes in land.
• The
overload
of
transformers
cooling
equipment which can lead to overheating and
damage represents a significant risk both acute
and chronic, amplified by changes in average
annual temperature and heat waves. During
periods of extreme heat, high temperatures may
overload the cooling systems of transformers,
which are not designed to operate under
extreme temperatures. These heat waves
can cause a rapid rise in the temperature of
equipment, which can lead to their failure,
power
loss
and
immediate
interruptions
of power supply. In the long term, gradual
changes in the average temperature caused
by climate change may reduce the ability of
cooling equipment to maintain transformers
at
optimal
operating
temperatures.
This
continued overload may lead to premature
wear of equipment, shortening of its lifetime
and increasing maintenance and replacement
costs.
• Low energy production due to adverse weather
conditions represents a significant risk related
to dependence on natural energy sources,
especially for renewable systems such as wind,
solar or hydroelectric energy. This risk can be
both acute and chronic depending on the nature
of the weather conditions. Extreme weather
conditions,
such
as
prolonged
droughts,
severe storms or wind shortages, can lead to a
sudden drop in energy production from natural
sources, pressuring distribution systems and
increasing the risk of power outages or power
outages. For example, wind shortages can
significantly reduce wind power production and
droughts can affect hydropower generation
capacity. In the long term, climate change can
change weather patterns, leading to greater
instability in natural energy resources. This can
lead to greater dependence on conventional
energy sources (such as those based on fossil
fuels), which can contribute to an increase in
greenhouse gas emissions and a fall in energy
sustainability.
The Group does not currently hold a detailed
assessment regarding the exposure of its assets and
commercial activities to the identified climate change
related matters, including elements like probability
of occurrence, their magnitude and duration, and
respectively their specific geographical location. This
assessment is however set in the action plan for the
next period, in compliance with the commitments
undertaken within the sustainability strategy and
with the climate change resilience consolidation
target. The information obtained until now shall
represent the ground for further analysis of these
assessments and their integration into the strategic
and operational planning processes.
• Risks of transition
• Electrica must comply with an increasingly
stringent regulatory framework on energy
efficiency,
creating
a
significant
political
and regulatory risk. In the context of the
European Green Deal and the REPowerEU,
energy efficiency targets have been stepped
up,
imposing
ambitious
cuts
in
energy
consumption. Initially, the Fit for 55 package
set a 9% energy efficiency target for 2030, but
it was raised to 13% within the REPowerEU, with
a final compromise adopted in the revised
Energy Efficiency Directive (EED) of 11.7%. These
changes involve an acceleration of energy
efficiency measures in industry, buildings and
transport, which are relevant to Electrica’s
activity. In addition, significant emphasis is
placed on increasing funding for building
renovation and the implementation of more
energy-efficient solutions, including lighting
modernization, heating and cooling systems,
as well as improving insulation. For Electrica,
these requirements require the continued
updating of infrastructure and adaptation
to the new standards, in particular in the
case of the development of new grids or the
expansion of business lines, such as renewable
energy
production.
Non-compliance
with
these obligations could lead to additional
costs, operational restrictions and the need for
significant investments to align with the new
requirements.
• Changes in the legislation on energy and gas
procurement represent a significant political
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and regulatory risk for Electrica, with a direct
impact on operational costs and compliance
obligations. Against the background of the
European Union’s strategy to reduce the
dependence on fossil fuels, measures such as
the REPowerEU pillars and energy market reform
bring changes to purchasing, contracting
and price mechanisms. For example, the
transition to long-term renewable energy
contracts (PPAs) and the reduction in exposure
to market volatility may influence Electrica’s
supply strategy. In addition, the introduction
of possible additional charges on fossil fuels
and the revision of conventional energy
subsidy schemes may lead to higher costs of
purchasing natural gas and thus to the need
for a reassessment of the energy portfolio.
• A significant financial transaction risk for
Electrica is the increase in carbon prices,
directly linked to decarbonization policies and
increasingly stringent greenhouse gas (GHG)
regulation at European level. As emissions
pricing mechanisms such as EU Emissions
Trading System become more restrictive, the
costs associated with emission allowances
will increase, with an indirect impact on
operational expenditure. This risk may influence
the price of energy supplied and requires
mitigation strategies, including investments
in low-emission energy sources and improved
energy efficiency of infrastructure. Although
Electrica is not directly subject to the EU ETS,
the impact of increased carbon prices can
be felt in its supply chain. Energy suppliers11,
which are impacted by this mechanism, pass
on the additional costs to Electrica in part, thus
influencing purchase prices and thus the cost
structure of the company. This transitional
financial risk highlights the importance of a
proactive strategy to reduce dependence on
high emission sources and diversify the energy
portfolio through sustainable solutions.
• A transitional risk for Electrica is associated
with environmental policies and regulations,
in particular the need to obtain and update
environmental
authorizations.
This
risk
is
enhanced in the context of the development of
new infrastructure and expansion in segments
such as renewable energy generation, where
compliance requirements are continuing to
evolve. Complex administrative processes,
the time needed to obtain approvals, and
any legislative changes may delay strategic
projects and generate additional costs.
The transition related events relevant for the
Group’s activity were identified throughout the
double
materiality
assessment
performed
in
2024, which included an assessment of climate
change related risks on short, medium and long
term. They are presented above and cover risks of
political and regulatory nature, as well as financial,
technological and reputational ones, in the context
of transitioning towards a low-carbon economy. The
risks were identified by considering the envisaged
legislative changes, carbon price evolution, pressure
on infrastructure and the necessity to adopt new
technologies.
At this stage, the Group does not hold a detailed
assessment regarding the exposure of its assets
and commercial activities to these events. Such
an assessment is, however, envisaged to be
accomplished in the next period, as part of the
commitment undertaken through the Sustainability
Strategy.
This
will
assess
the
probability
of
occurrence, magnitude and duration, in correlation
with the geographical location of the assets and
operational specifics, as well as the use of relevant
climate change related scenarios (including the
ones aligned with the Paris Agreement) to validate
the resilience degree and to identify the potential
discrepancies with decarbonization requirements.
The
deployment
of
smart
grid
technologies
for efficient power distribution is a significant
opportunity for optimizing power grids, but it also
involves technological risks that need to be managed
with care. These technologies, including smart
metering, automation and damage management,
can
significantly
improve
efficiency,
reliability
and flexibility of the power grid, reducing energy
losses and facilitating the integration of renewable
energy sources. However, for companies such as
Electrica, implementing a smart grid entails large
investments in infrastructure and technology. There
11 Specifically those who generate electricity from fossil sources
are technological risks related to compatibility
with existing infrastructure, the implementation of
innovative solutions that have not yet been tested
on a large scale and the protection of data collected
through smart systems. Also, ensuring a smooth and
uninterrupted transition to these new technologies
is essential for maintaining a high-quality and
continuous service.
ESRS 2 IRO-1 Description of the processes to identify and assess material
impacts, risks and opportunities
Through the double materiality assessment (DMA)
process, Electrica has identified a number of impacts,
risks and opportunities related to climate change.
The DMA process is described in detail in the ESRS 2
chapter — General Disclosure.
Electrica Group’s operations generate both current
and potential negative impacts and positive impacts
on climate change and are exposed to significant
risks and opportunities. The impacts, risks and
opportunities related to greenhouse gas (GHG)
emission reductions and transition to low-carbon
energy sources cover all business segments, including
own operations as well as those in the upstream
and downstream value chain. They are relevant in
the short term (<1 year), medium (1-5 years) and
long term (>5 years) and include both physical and
transitional risks. Following the double materiality
assessment, Electrica identified the climate change
related impacts, risks and opportunities with strategic
relevance for the company.
According to the ESRS E1-6 disclosure requirements,
the identification and assessment of risks and
opportunities related to climate change were carried
out on the basis of a consultation process and a
‘peers review’/ analysis of similar companies. In this
context, no SSP (Shared Socioeconomic Pathways)
scenario analysis was used, and risks were identified
on the basis of an empirical approach, focusing more
on asset assessment under the climate conditions
described, rather than on a detailed assessment of
vulnerability and exposure.
More
specifically,
the
assessment
of
physical
and transitional risks was based on a pragmatic
approach, given the worst-case scenarios, without
integrating macroeconomic trends or changes in
climate variables. Instead of an assessment based
on detailed technical analyzes, an approach based
on ongoing consultation and risk assessment of
transition events was adopted to identify possible
major risks for Electrica.
To date, Electrica Group has not systematically
identified assets and economic activities that could
be incompatible with the transition to a climate-
neutral economy or that would require significant
efforts to become compatible with it, as defined in
Delegated Regulation (EU) 2021/2139. However, within
the framework of the double materiality assessment
process carried out in 2024, relevant risks related
to strict regulations on carbon emissions, energy
efficiency and changes in climate change policies
were identified, which may influence the long-term
viability of some activities. These risks are presented
in the previous sections and concern both the
company’s own infrastructure and its upstream and
downstream operations.
The assessment of the compatibility of economic
activities with the climate transition, including the
analysis of the potential for significant captured
GHG emissions and the alignment with the taxonomy
criteria, is to be included at a later stage, as part of
a detailed assessment of climate change exposure
and vulnerability. This is foreseen to be carried out
by 2026, in line with the commitments set in the
Sustainability Strategy 2025–2030.
Although no detailed scenarios reflecting long-term
climate change related developments have been
incorporated, the process has considered possible
physical risks, such as the effects of heat waves
or floods, but also the risks of transition, related to
climate change regulations and policies that are
expected to be implemented in order to achieve the
objectives of limiting global warming to 1.5°C.
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The main material impacts, risks and opportunities related to the subject of climate change identified are
detailed below:
Material
sub-topic
Location
IRO
Description
Actual/
potential
Time
horizon
Climate
change
adaptation
Own Activity
Risk
The need for permits and compliance with
environmental regulations.
n/a
Short,
medium
and long
term
Climate
change
adaptation
Own Activity
Risk
New taxes and policies on carbon emissions.
n/a
Short,
medium
and long
term
Climate
change
adaptation
Own Activity
Risk
Restrictions and taxes on carbon emissions.
n/a
Short,
medium
and long
term
Climate
change
adaptation
Own Activity
Risk
Implementing smart grid technologies
for efficient power distribution requires
considerable investment.
n/a
Short,
medium
and long
term
Climate
change
adaptation
Own Activity
Risk
Price fluctuations and limited supply of energy
and natural gas may affect the cost and
predictability of supply.
n/a
Short,
medium
and long
term
Climate
change
adaptation
Own Activity
Risk
Severe damage or wiring destruction.
n/a
Short,
medium
and long
term
Climate
change
adaptation
Own Activity
Risk
Necessity to obtain authorizations and to
comply with environmental regulations.
n/a
Short,
medium
and long
term
Climate
change
adaptation
Own Activity
Risk
New taxes and fees regarding carbon
emissions.
n/a
Short,
medium
and long
term
Climate
change
adaptation
Own Activity
Risk
Restrictions and taxes on carbon emissions.
n/a
Short,
medium
and long
term
Climate
change
adaptation
Own Activity
Risk
The implementation of smart grid technologies
for the efficient distribution of energy requires
consistent investments.
n/a
Short,
medium
and long
term
Material
sub-topic
Location
IRO
Description
Actual/
potential
Time
horizon
Climate
change
adaptation
Own Activity
Risk
Price volatility and the limited offer of
energy and gas may affect supply costs and
predictability.
n/a
Short,
medium
and long
term
Climate
change
adaptation
Own Activity
Risk
Severe damages or cable destruction.
n/a
Short,
medium
and long
term
Climate
change
adaptation
Own Activity
Risk
Soil erosion and damage to underground pipes.
n/a
Short,
medium
and long
term
Climate
change
adaptation
Own Activity
Risk
Water infiltration and potential damage to
underground pipes and structural damage.
n/a
Short,
medium
and long
term
Climate
change
adaptation
Upstream or
downstream
activity
Risk
Over-loading of transformers, resulting in a risk
of overheating and damage.
n/a
Short,
medium
and long
term
Climate
change
adaptation
Upstream or
downstream
activity
Risk
Risk of collapse/degradation of the stalls and
damage to power lines.
n/a
Short,
medium
and long
term
Climate
change
adaptation
Upstream or
downstream
activity
Risk
Overload on stalks and lines, risk of collapse.
n/a
Short,
medium
and long
term
Climate
change
adaptation
Upstream or
downstream
activity
Risk
Risk of damage or destruction of equipment
resulting from possible interruptions of energy
supply.
n/a
Short,
medium
and long
term
Climate
change
adaptation
Upstream or
downstream
activity
Risk
Delays or increased costs due to bad weather.
n/a
Short,
medium
and long
term
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Material
sub-topic
Location
IRO
Description
Actual/
potential
Time
horizon
Climate
change
adaptation
Own Activity
Negative
impact
No specific climate change policies were
adopted at Electrica Group level to manage
the impact, risks and opportunities related to
climate change mitigation and adaptation.
(-) The lack of dedicated policies has a
negative impact as it can limit the ability of
companies within the Group to manage risks
and opportunities associated with climate
change effectively, thus affecting sustainable
performance and compliance with the
regulations in force. Without clear policies,
the parent company and its subsidiaries
can experience difficulties in implementing
measures to reduce carbon emissions and
adapt to the effects of climate change. This
can lead to higher operational costs, financial
losses and potential sanctions by regulators.
The lack of specific policies can also negatively
affect the company’s reputation among
investors, clients and other stakeholders, who
expect a firm commitment to sustainability and
environmental protection.
Actual
Short
Term
Climate
change
mitigation
Own Activity
Risk
Strict regulations on carbon emissions and
energy efficiency may impose additional costs
and the need to modernize infrastructure.
n/a
Short,
medium
and long
term
Climate
change
mitigation
Own Activity
Risk
New legislative amendments and regulations
on the trading of green certificates and natural
gas may impose additional compliance costs.
n/a
Short,
medium
and long
term
Material
sub-topic
Location
IRO
Description
Actual/
potential
Time
horizon
Climate
change
mitigation
Own Activity
Negative
impact
Electrica Group does not adequately supervise
most of the climate change related matters and
related impact. This deficiency is relevant to
the Group because it contributes to significant
environmental and reputational risks. The lack
of effective supervision may lead to non-
compliance with environmental regulations,
financial penalties and loss of confidence
among investors and other stakeholders. In
addition, this may negatively affect the long-
term performance of the company, given the
global transition to more sustainable business
practices.
(-) Neglecting climate issues can have serious
environmental consequences and undermine
global efforts to combat climate change. It
can also negatively affect the competitiveness
and long-term sustainability of the Group by
jeopardizing both the environment and the
financial stability of the parent company and its
subsidiaries.
Actual
Medium
term
Climate
change
mitigation
Own Activity
Negative
impact
(-) The absence of targets for intensity is
a negative impact on Electrica Group as
it prevents the efficient assessment of the
company’s greenhouse gas emissions
performance in the context of its economic
activities. Without these objectives, it is
difficult to monitor and improve the efficiency
of emissions in relation to economic and
operational growth. This lack can lead
to inefficient resource management and
difficulties in aligning with the regulations
and expectations of stakeholders. It can also
negatively affect the company’s reputation
among investors and other stakeholders, who
expect a clear commitment to sustainability
and responsible economic performance. The
implementation of a monitoring and reporting
system to assess progress towards these
objectives and to ensure transparency and
accountability in their achievement is planned
for the next period at Group level.
Actual
Medium
term
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Material
sub-topic
Location
IRO
Description
Actual/
potential
Time
horizon
Climate
change
mitigation
Own Activity
Negative
impact
(-) The lack of documentation and
formalization of steps to monitor and assess
progress in terms of mitigation and adaptation
objectives at Electrica Group level may trigger
inconsistent reporting of progress, difficulties
in assessing the effectiveness of implemented
measures, possible non-compliance with
environmental regulations and standards,
as well as a high risk of non-achievement of
climate change mitigation and adaptation
objectives.
Potential
Medium
term
Climate
change
mitigation
Own Activity
Negative
impact
(-) Inconsistent methodology and limitations
on the calculation of GHG emissions, scope
3 - although Electrica Group has collaborated
with an external consultant in the last three
years for the calculation of both individual and
consolidated carbon footprint, a complete
breakdown of GHG emissions for scopes 1, 2
and 3 cannot currently be provided. Existing
reduction strategies are independent and not
formally linked to the calculation of the carbon
footprint. This situation creates difficulties in
implementing effective emission reduction
strategies and may create a risk of non-
achievement of the sustainability and climate
change impact objectives at Group level.
Actual
Short
Term
Climate
change
mitigation
Own Activity
Positive
impact
(+) The setting of specific objectives for climate
change mitigation and adaptation at the Group
level (ELSA, SERV, EFSA and DEER) is a significant
positive impact as it demonstrates the Group’s
commitment to climate change mitigation and
adaptation. By including specific objectives in
the consolidated Sustainability Strategy, the
Group strengthens its responsible leadership in
the energy sector and aligns their activities with
international regulations and the expectations
of stakeholders. These objectives contribute to
reducing the carbon footprint and improving
energy efficiency, which are essential for long-
term sustainability, but also for meeting the
2030 and 2050 targets, respectively, in line with
the Paris Agreement.
Actual
Short
Term
Material
sub-topic
Location
IRO
Description
Actual/
potential
Time
horizon
Climate
change
mitigation
Own Activity
Positive
impact
(+) The existence of initiatives to reduce
emissions and improve the carbon footprint
of the parent and subsidiaries by establishing
actions to reduce emissions and improve the
carbon footprint has a positive impact and
can contribute to mitigating the impact of
climate change. The Sustainability Strategy
2023 developed by Electrica Group includes
reductions of greenhouse gas emissions by
increasing the acquisition of electricity from
renewable sources and reducing energy losses
from the distribution network. Specific initiatives
and objectives include the certification of the
Energy Management System according to SR
EN ISO 50001:2019 and the assurance that 50%
of the energy supplied comes from renewable
production. These measures contribute to
reducing greenhouse gas emissions, improving
energy efficiency, reducing operational costs
and aligning the company with international
standards on sustainability. For further details
the Sustainability Strategy of the Group 2024-
2030 may be consulted.
Actual
Medium
term
Climate
change
mitigation
Own Activity
Positive
impact
More emission reduction initiatives were
planned and implemented in 2023 at
Electrica Group level, having also effect
in 2024 (reporting year), which shows a
firm commitment to sustainability and
environmental protection. These initiatives are
relevant because they contribute to reducing
the carbon footprint and improving energy
efficiency, which are essential in the context
of strict climate regulations and the growing
expectations of stakeholders in this direction.
Through these measures, the group can
strengthen its market position as a responsible
and innovative energy leader.
(+) Emission reduction initiatives contribute
directly to the protection of the environment
and to the improvement of quality of life. These
efforts can also generate significant savings
in the long term and attract investment, thus
strengthening financial sustainability and
a company’s reputation. This has a positive
impact only at EFSA level, because only for this
company emission reduction actions were
initiated in 2024.
Actual
Short
Term
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Material
sub-topic
Location
IRO
Description
Actual/
potential
Time
horizon
Energy
efficiency
Own Activity
Risk
Compliance with updated energy efficiency
regulations.
n/a
Short,
medium
and long
term
Energy
efficiency
Upstream or
downstream
activity
Risk
Low energy production due to bad weather
conditions.
n/a
Short,
medium
and long
term
Energy
efficiency
Upstream or
downstream
activity
Opportunity
Sustainable energy supply market leader.
n/a
Short,
medium
and long
term
Energy
efficiency
Upstream or
downstream
activity
Opportunity
Access to the market for the development of
renewable energy.
n/a
Short,
medium
and long
term
Energy
efficiency
Upstream or
downstream
activity
Opportunity
Solar market expansion partnerships for
renewable energy projects.
n/a
Short,
medium
and long
term
Energy
efficiency
Upstream or
downstream
activity
Opportunity
Eolian market expansion, partnerships for
renewable energy projects.
n/a
Short,
medium
and long
term
Energy
efficiency
Own Activity
Positive
impact
(+) The existence of plans to optimize energy
consumption and transition to cleaner
energy sources at the level of Electrica Group
contributes to climate change mitigation.
Significant measures have been initiated
and are being implemented, including the
establishment of photovoltaic parks, the
installation of solar panels on the main site,
the renewal of the car fleet with hybrid vehicles
and other measures to make internal energy
consumption more efficient. Such initiatives
have positive consequences, such as reducing
greenhouse gas emissions, increasing energy
efficiency and reducing operational costs.
They can also have a positive effect on
the company’s image and help align with
international environmental standards, thus
contributing to global sustainability objectives.
Actual
Short
Term
E1-2 Policies related to climate change mitigation and adaptation
Electrica Group is committed to environmental
protection
and
climate
change
management
through
an
integrated
approach
within
the
Integrated Management System (SMI). Although the
Group does not have a dedicated policy on climate
change mitigation and adaptation, its commitments
are reflected in the Integrated Management System
Policy Statement and the Code of Ethics and Business
Conduct, both publicly available on the company’s
website.
The Group’s SMI policy includes clear commitments
on
environmental
protection,
energy
efficiency
and reducing the impact of activities on climate
change. It targets the environment, occupational
health and safety, information security and energy
management, and aims at increasing the quality of
the services provided, developing an organizational
culture oriented towards compliance, safety, security,
environment, energy performance and customer
orientation, as well as prevention of occupational
accidents and diseases.
In the environmental field, the SMI policy aims
at reducing the environmental impact of the
organization’s processes, as well as the efficient use
of resources and energy. Ensuring the continuity of
the organization’s processes and minimizing the
dangers arising from security incidents are also
priorities defined in the policy.
The SMI policy includes measures to ensure the
continuity of the organization’s processes and
to minimize the hazards of security incidents. In
addition, by applying the principles of prevention
and
compliance,
the
organization
is
pursuing
environmental protection and the development of
a risk management system, which contributes to
increasing the resilience of its activities. Within the
framework of the SMI policy, energy performance is
a central issue and is mentioned as an important
element of the management system implemented.
The policy foresees the efficient use of resources and
energy, with the aim of optimizing processes and
minimizing environmental impact.
The SMI policy applies to all operations of the
company, including distribution, production and
supply of energy. At the level of each company in
the Group, a process is being carried out to identify
and assess environmental aspects, both current and
potential. This process considers positive but also
negative aspects under normal operating conditions,
but also in abnormal or emergency situations that
can reasonably be expected under a dedicated
procedure.
The SMI policy also covers the entire value chain,
both upstream and downstream. To this end, the
Group imposes requirements on suppliers and
subcontractors by requiring the implementation of an
ISO 14001:2015 certified Environmental Management
System or equivalent measures to ensure compliance
with environmental standards.
The process of determining significant environmental
aspects and associated impact is continuous.
Electrica Group has implemented and certified
at the level of companies in the group integrated
management systems on Occupational Quality,
Environment, Health and Safety, in accordance with
the requirements of SR standards EN ISO 9001: 2015,
SR EN ISO 14001: 2015 and SR ISO 45001:2018, SR EN ISO/
IEC 27001:2018, SR EN ISO 50001:2019.
The policy is approved by the Board of Directors
and is implemented by all relevant departments
and structures within the organization, through an
integrated approach to occupational risk, quality,
environment, health and safety management.
The Code of Ethics and Business Conduct shows
the company’s commitment to sustainability as an
integral part of its business model. The organization
is pursuing sustainable development by reducing
the carbon footprint, protecting biodiversity and
responsible waste management, in line with the
objectives of the European Green Deal. It also
promotes an ethical culture that focuses on the
company’s responsibility on the environment and
stakeholders. The Code promotes a continuous dialog
with stakeholders, including clients/consumers and
end-users, authorities, NGOs and communities,
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ensuring that sustainability concerns are integrated
into business practices.
The Code applies to all employees, management
members and decision-makers within the company,
as well as partners and suppliers. The organization
promotes fair competition and transparent business
relationships, ensuring that sustainability principles
are respected throughout the value chain.
The Code of Ethics and Business Conduct is approved
by the BoD and endorsed by the CEO of the Group.
The implementation, update and improvement of
the Code are the responsibility of the Ethics and
Compliance
Department,
which
develops
and
implements mechanisms to monitor compliance
with the commitments made by the company
through this Code.
The Code of Ethics and Business Conduct has been
developed
considering
national
and
European
legislation applicable to ethics and compliance. It
refers to relevant provisions of the energy industry
specific legislation, such as Law No. 123/2012 on
electricity and natural gas, to the provisions of the
United Nations Convention against Corruption, as well
as regulations on consumer protection, competition
and transparency in business.
The document lays down obligations regarding
compliance with applicable environmental legislation
and the promotion of responsible practices in carrying
out activities, providing a framework of compliance
that allows for the integration of specific measures
to reduce environmental impact and manage
climate risks. Regarding climate change mitigation,
the Code emphasizes the company’s commitment
to contribute to European sustainability objectives,
including by aligning with the directions outlined
by the European Green Deal. This commitment is
reflected in the obligation to use resources efficiently
and reduce the environmental impact of operations.
In addition, the document promotes the integration of
energy efficiency principles, which indirectly supports
the management of greenhouse gas emissions and
energy savings.
Regarding
climate
change
adaptation,
the
document mentions the need to ensure continuity of
activities and manage risks associated with energy
infrastructure, which is essential for resilience to
physical climate risks. Measures are also being
established
to
protect
critical
infrastructure
and
prevent
operational
risks,
supporting
the
organization’s ability to deal with climate change and
extreme events. In this context, occupational health
and safety obligations include risk assessment,
which is an important part of the adaptation process
to climate change. Energy efficiency is specifically
addressed, as it is promoted as an essential principle
in the conduct of operational activities. It contributes
both to reducing the environmental impact and to
optimizing resource consumption.
To ensure an effective transition to a low-carbon
economy, Electrica Group established the Climate
Governance and Public Affairs Committee. This
committee plays an important role in coordinating
the Sustainability Strategy and overseeing how the
Group manages the risks and opportunities arising
from climate change.
In December 2024, the Group’s Sustainability Strategy
2025-2030 was published. The Group is committed
to promoting and implementing green energy
solutions, thus contributing to a sustainable future.
Thus, investing in renewable energy sources, such
as solar and wind energy, and adopting innovative
technologies will reduce the environmental impact
and support the transition to a low-carbon economy.
The Group is also committed to developing and
modernizing the distribution infrastructure to support
the transition to renewable energy sources and to
improve operational performance.
E1-3 Actions and resources in relation to climate change policies
In line with the Sustainability Strategy 2024-2030,
the Group has implemented a number of actions
for climate change adaptation and mitigation, as
follows:
Greenhouse gas (GHG) emissions monitoring
and calculation
During 2024, GHG emissions were calculated and
monitored for all subsidiaries and parent company
using the GHG Protocol methodology. This process
included the calculation of the annual emission
balance for Scope 1, Scope 2 and Scop 3, providing a
solid basis for determining the reduction measures.
The results achieved will guide our future strategies.
To date, Electrica Group has not quantified the
expected short- and medium-term reductions in
GHG emissions that could result from the actions
implemented to mitigate climate change. However,
through
the
2025-2030
Sustainability
Strategy,
approved at the end of 2024, Electrica confirmed its
commitment to aligning with the climate neutrality
objectives in accordance with the Paris Agreement,
with an interim target to reduce half of the GHG
emissions by 2030. A breakdown of these targets,
through specific actions, is to be included in the
transition plan, which will be developed in the coming
period. The actual reductions will be estimated and
reported following the development of the climate
transition plan, provided for in the 2025–2030
Sustainability
Strategy.
Until its completion, the Group will continue to
monitor GHG emissions, assess the impact of
initiatives already implemented and use the results
obtained to substantiate future reduction measures.
Information on these initiatives is presented in
this section, with the estimated reductions to be
integrated into subsequent sustainability reporting,
once the transition plan is finalized. At this point, the
Electrica Group presents the progress in reducing
GHG emissions compared to the previous reporting
year in section E1-6 of this chapter.
Strategic initiatives have also been implemented
to raise awareness and train the company’s staff,
focusing on promoting energy efficiency and the
adoption of best practices in the management of
electricity consumption. These actions are aligned
with the sustainability objectives of the company and
reflect Electrica’s commitment to resource saving
and carbon footprint, in line with the circular economy
principles and the energy efficiency regulations in
force. No significant capital expenditure (CapEx)
has been identified for this initiative, which is carried
out within the framework of current operational
expenditure, without being shown separately in OpEx.
Reducing paper consumption through
digitization
Another action implemented by Electrica Group in
2024 was to optimize the use of resources through
digitization, with the objective of reducing paper
consumption by at least 10% annually between 2024
and 2027. Measures such as increasing the use
of electronic invoices, automating administrative
processes and promoting electronic signatures
for
internal
and
contractual
documents
were
implemented, thus contributing to reducing paper
consumption and reducing the amount of waste
generated.
Optimizing the use of resources through digitization
is a relevant action in the context of climate change
mitigation
and
adaptation,
as
it
significantly
contributes to reducing environmental impact and
increasing operational efficiency. The reduction in
paper consumption by at least 10% annually between
2024 and 2027 is in line with the overall sustainability
targets, given that paper production and disposal
have a considerable impact on natural resources
and greenhouse gas emissions.
By
digitizing
processes
and
reducing
paper
dependence, the Group supports the transition to a
more sustainable business model, also contributing
to climate change adaptation, given that reducing
the consumption of natural resources and optimizing
their use help limit pressures on the environment.
Biogenic emissions are a relevant issue in the context
of reducing the impact on climate change. Biogenic
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emissions are derived from the natural processes
of living organisms, such as the decomposition of
organic material (e.g. plant and animal debris), are
normally considered as part of the natural cycle
of carbon. However, when managed in a way that
disrupts this cycle, such as through excess biomass
burning or organic waste processing and storage,
they can contribute to greenhouse gas emissions, in
particular CO2, methane and nitrogen oxides.
Reducing the use of paper may have an indirect effect
on biogenic emissions, as a significant part of the
paper used comes from plant materials. By reducing
paper consumption, it helps to reduce demand for
raw materials from natural sources, and this can
reduce pressure on ecosystems and processes that
lead to biogenic emissions.
Optimizing energy consumption by using
artificial
intelligence
In our efforts for energy efficiency and reducing
Scope 2 emissions, a project based on artificial
intelligence was initiated, aimed at monitoring and
optimizing energy consumption in administrative
buildings. In this respect, in 2024, the contract for the
development of an advanced energy fingerprinting
solution in real time was concluded. Implementing
this system will enable energy losses to be identified
and reduced.
No significant capital expenditure (CapEx) has been
identified for this initiative, which is carried out within
the framework of current operational expenditure,
without being shown separately in OpEx.
Reducing
emissions
through
sustainable
mobility
To support the reduction in Scope 1 emissions, the
gradual transition towards less polluting transport
solutions was initiated. In 2024, 100 mild-hybrid
vehicles were purchased at DEER, thus reducing fossil
fuel consumption and reducing emissions associated
with domestic transport. CapEx’s investment in the
purchase of vehicles was close to EUR 3.5 million.
Installation and operation of a PV power plant
for self-consumption
As part of our commitment to reduce the carbon
footprint and optimize energy consumption, in 2024,
ELSA completed and put into operation, starting in
May, a 134.6 kW installed PV power plant for auto-
consumption at its Bucharest headquarters. The
investment value for this PV plant was RON 641
thousand.
A photovoltaic power plant was completed and put
into operation in August 2024 at DEER as well, being
installed on DEER’s administrative buildings from
Oradea, and having an installed capacity of 200kWp
(in inverters), for self-consumption. The investment
value for this PV plant was RON 1.2 million.
By installing these photovoltaic plants, Electrica
directly contributes to reducing greenhouse gas
(GHG) emissions through clean and renewable
energy production. The use of solar energy reduces
dependence on fossil energy sources, which are
responsible for most CO2 emissions. By generating
local
electricity,
the
company
supports
the
transition to a more sustainable energy system,
thus contributing to global emission reduction and
climate change targets.
In addition to the benefits of climate change
mitigation, these PV plants also help to adapt to the
challenges posed by climate change. As traditional
energy grids can be vulnerable to extreme weather
events (such as storms or droughts), distributed
renewable energy systems, such as this photovoltaic
power plant, improve the resilience of energy
infrastructure. Solar self-consumption can reduce
dependency on the centralized grid, providing a more
stable and less likely power source for interruptions
caused by extreme climatic conditions.
Decrease in Technology Own Consumption
(CPT) from distribution activities and increase
CAPEX dedicated to financing sustainable
activities, according to the EU Taxonomy
Under the CAPEX program, DEER has allocated
significant funds to reduce its own technological
consumption (CPT) and upgrade the distribution
grid. In 2024, actions like balance measure fitting
to
existing
transformation
stations
and
the
implementation of intelligent measurement systems
were promoted in various areas (Transylvania Nord,
SR Baia Mare, SR Buzau, SR Focsani, SR Galati, SR
Ploiești, SR Targoviste).
Increase investment on the three voltage
levels, deadline 2024-2030, and create a
framework for the prioritization of investment
in sustainable activities
DEER aims at increasing investment on the three
voltage levels (low, medium and high) in the
period 2024-2030. The actions promoted include
the upgrading of transformation stations and low-
voltage grids (e.g.: LEA’s modernization of low tension
and main connections in various localities - High
Ilva, Lower Christmas, Sebesel, Sasciori, etc., but also
the modernization of transformation stations - 110kV
Hippodrom station, 20/6kV Slanic station) and the
implementation of SMI intelligence measurement
systems
in
various
municipalities
(Maracineni,
Buzau, Brebu, etc.). These investments are essential
for creating a framework for the priority analysis and
promotion of sustainable activities, thus contributing
to climate change mitigation and adaptation and
improving the energy efficiency of the distribution
network.
Detailed information on the expenditure incurred
on these investment projects by DEER is detailed in
Annex 2 - Breakdown of the main investments made
in 2023 by Electrica Group from the Directors’ Report
which is part of this Annual Report.
E1-4 Targets related to climate change mitigation and adaptation
Our commitment to the energy transition and
reducing our environmental impact is reflected in the
strategic directions undertaken through the 2025–
2030 Sustainability Strategy, which aims to reduce
greenhouse gas (GHG) emissions, increase the use
of renewable sources and improve energy efficiency.
To date, Electrica Group has not defined formal GHG
emission reduction targets that comply with the
ESRS E1-4 requirements, namely their expression in
absolute value and, where applicable, in intensity,
by emission categories (Scope 1, 2 and 3), correlated
with the GHG inventory limits. Also, a reference year
has not been established for these targets, and the
foreseen reductions do not include GHG absorption,
carbon credits or avoided emissions.
The establishment of climate change related targets
will be the subject of the decarbonization plan to be
developed, to ensure representativeness in relation to
the activities covered and the influences of external
factors, in the coming period, in accordance with
the Sustainability Strategy 2025–2030. This plan will
include emission reduction trajectories by 2030 and
2050 and will be aligned with European requirements
and the principles of Science Based Targets (SBTi), for
which the Group has proposed certification by 2028.
Electrica Group is currently analyzing the relevance
of choosing 2023 as the reference year.
Until these parameters are established, no previous
progress against a reference value or base year can
be reported in a standardized manner. However,
Chapter E1-6 presents progress on GHG emissions
compared to the previous reporting year, based on
monitored data.
In support of these commitments, we are taking
measures towards energy efficiency and optimizing
operational consumption, with investments being
directed
towards
infrastructure
modernization,
reducing own technology consumption (CPT) and
integrating renewable energy into self-consumption.
The installation of the photovoltaic capacity at
headquarters is a first concrete example of the
transition to green energy production, with similar
projects being analyzed in the future.
In parallel, we have implemented measures to
digitize and optimize administrative processes, with
a direct impact on reducing paper consumption
by 10% annually between 2024 and 2027. This
initiative, together with the program for the gradual
replacement of the fleet with mild-hybrid vehicles,
helps to reduce the carbon footprint and make
operational costs more efficient.
To support the transition to a sustainable model, at
the end of 2024 we approved a new strategy, which
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redefines our long-term development directions. This includes a review of objectives and alignment with
European decarbonization requirements. The new targets will be detailed in the next report.
E1-5 Energy consumption and mix
Within the Group, annual energy consumption is predominantly linked to the activity of the distribution
company, DEER, which manages administrative and operational facilities in 18 counties. At the same time, an
important component of the Group’s energy consumption comes from the use of fuels. For other companies
within the Group, electricity is only used for office purposes. Energy consumption is closely monitored, and
energy is used in a responsible manner.
Regarding the SWE subsidiary, its energy consumption was also integrated into the total energy consumption
reported by the ELSA subsidiary. This approach was adopted considering the fact that the activities of the SWE
subsidiary are also carried out within the ELSA HQ headquarters.
Starting with 2024, the parent company ELSA also started the activity of producing energy from renewable
sources, alongside its existing management activity.
The total energy consumption of Electrica Group in 2024 was 1,946,035.08 MWh.
Total energy consumption
ELSA
EFSA
DEER
SERV
TOTAL
ELECTRICA
GROUP
(1) Fuel consumption from coal and coal products
(MWh)
0
-
-
-
-
(2) Fuel consumption of crude oil and petroleum
products (MWh)
339.11
1,159.03
24,156.80
9,468.22
35,123.16
(3) Fuel consumption from natural gas (MWh)
-
3,174.65
6,252.96
6,410.24
15,837.84
(4) Fuel consumption from other fossil sources (MWh)
-
-
-
-
-
(5) Consumption of purchased or acquired electricity,
heat, steam, and cooling from fossil sources (MWh)
191.82
459.1
595,862.36
1,071.20
597,584.48
(6) Total fossil energy consumption (MWh)
(calculated as the sum of lines 1 to 5)
530.92
4,792.78
626,272.12
16,949.66
648,545.49
Share of fossil sources in total energy consumption
(%)
52%
83%
33%
93%
33%
(7) Consumption from nuclear sources (MWh)
127.25
304.56
395,288.13
385.07
396,105.02
Share of consumption from nuclear sources in total
energy consumption (%)
13%
5%
21%
2%
20%
Total energy consumption
ELSA
EFSA
DEER
SERV
TOTAL
ELECTRICA
GROUP
(8) Fuel consumption for renewable sources, including
biomass (also comprising industrial and municipal
waste of biologic origin, biogas, renewable hydrogen,
etc.) (MWh)
-
-
-
-
-
(9) Consumption of purchased or acquired electricity,
heat, steam, and cooling from renewable sources
(MWh)
358.11
693.02
899,464.82
868.61
901,384.57
(10) The consumption of self-generated non-fuel
renewable energy (MWh)
-
-
-
-
-
(11) Total renewable energy consumption (MWh)
(calculated as the sum of lines 8 to 10)
358.11
693.02
899,464.82
868.61
901,384.57
Share of renewable sources in total energy
consumption (%)
35%
12%
47%
5%
46%
Total energy consumption (MWh) (calculated as the
sum of lines 6, 7 and 11)
1,016.28
5,790.37
1,921,025.08
18,203.35
1,946,035.08
TOTAL ELECTRICA GROUP
2024
Non-renewable energy production (MWh)
0
Renewable energy production (MWh)
73.376
Energy intensity per net revenue for Electrica Group
2024
Total energy consumption from activities in high-impact climate sectors per net
revenue from activities in high-impact climate sectors (MWh/thousand RON) for
Electrica Group
0.21578
Total energy consumption from activities in high-impact climate sectors per net
revenue from activities in high-impact climate sectors (MWh/thousand RON) for
Production
0.02248
Total energy consumption from activities in high-impact climate sectors per net
revenue from activities in high-impact climate sectors (MWh/thousand RON) for
Distribution
0.73139
Total energy consumption from activities in high-impact climate sectors per net
revenue from activities in high-impact climate sectors (MWh/thousand RON) for
Supply
0.00092
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Revenues breakdown
(thousand RON) 2024
Net revenues from activities
in high-impact climate
sectors used for calculating
energy intensity
Net revenues from
activities other
than those in high-
impact climate
sectors
Total net revenue
(financial
statements)
Total Electrica Group
8,930,351
64,851
8,995,202
ELSA
6,711
84
6,795
EFSA
6,297,088
0
6,297,088
DEER
2,626,553
13,447
2,640,000
SERV
0
51,321
51,321
The energy intensity value reported for Electrica Group is calculated exclusively based on the total energy
consumption related to activities carried out in high-impact climate sectors and the net revenues obtained
from these activities, in accordance with the ESRS E1-5 requirement, point 41. The sectors considered to have
a high impact include the production, distribution and supply of electricity.
The net revenues used in the calculation of the energy intensity for 2024, amounting to RON 8,930,351 thousand,
correspond to the revenues from these activities and can be reconciled with the total revenues reported in
the consolidated financial statements, amounting to RON 8,995,202 thousand.
E1-6 Gross Scopes 1, 2, 3 and Total GHG emissions
The methodology used for inventorying greenhouse gas (GHG) emissions across all operations specific to
Electrica Group’s value chain is aligned with international best practices for inventorying and reporting. It
complies with the applicable standards outlined in the „GHG Protocol: A Corporate Accounting and Reporting
Standard” and the „Corporate Value Chain (Scope 3) Standard,” developed by the World Business Council for
Sustainable Development (WBCSD) and the World Resources Institute (WRI).
The GHG Protocol defines three main categories for reporting an organization’s greenhouse gas (GHG)
emissions, referred to as „Scopes”:
• Scope 1: This refers to direct GHG emissions originating from emission sources owned or controlled by the
organization. These emissions may result from activities such as the combustion of fossil fuels, specific
industrial processes, or emissions from the organization’s vehicle fleets.
• Scope 2: It includes indirect emissions associated with the production of electricity or thermal energy
purchased and consumed by the organization.
• Scope 3: This encompasses indirect emissions resulting from a wide range of activities not included in
Scopes 1 and 2 but linked to the organization’s operations. These emissions represent those generated
throughout the organization’s entire value chain.
The calculation of direct and indirect emissions associated with Electrica Group’s value chain was based on
the methodologies recommended by the mentioned international standards. The emission factors used were
selected from valid sources or internationally recognized databases, such as:
• DEFRA – The United Kingdom’s Department for Environment, Food, and Rural Affairs;
• IEA – The International Energy Agency;
• ANRE – The National Energy Regulatory Authority;
• The electricity label published by Electrica Group’s energy suppliers.
Additionally, the calculation employed relevant tools developed by leading international organizations for
economic sectors or industries relevant to the calculation of indirect emissions included in Scope 3 (e.g., the
aviation industry, the hospitality industry, etc.).
In this context, the emissions generated by the SWE subsidiary were calculated together with those of ELSA,
given that both activities are carried out within the ELSA headquarters.
As a new element in the activities included in the calculation, in 2024, ELSA initiated the activity of producing
energy from renewable sources, in addition to the existing management activity. This was achieved by
installing photovoltaic panels on the building and by developing the photovoltaic parks in Stanesti and Vulturu.
GHG emissions Scope 1
For the calculation of Scope 1 emissions, the following has been taken into account:
1. Stationary sources:
• The consumption of natural gas used for the operation of thermal power plants registered at all ELSA
subsidiaries and their work points;
• The consumption of fuel (diesel, petrol and liquid fuel) used for the operation of stationary equipment
(generating sets).
2. Mobile Sources:
• The consumption of fuel (diesel and gasoline) used for motor vehicles owned or operated by each
subsidiary (motor vehicles of category M1, self-specialized, self-propelled, self-propelled, self-propelled,
self-propelled, self-propelled, self-propelled, self-propelled, self-propelled, self-propelled, self-propelled,
self-propelled, self-propelled, bulldozers, etc.).
For vehicles leased or rented between Group subsidiaries, the emissions have been accounted for under
Scope 1 by the subsidiaries that utilized the vehicles.
3. Fugitive emissions:
• The category/type of equipment containing fluorinated gases;
• Number of equipment owned by each subsidiary;
• Type of freons used;
• Quantities of freons completed in installations in 2024 which are considered to be equal to fugitive
emissions. These quantities have been centralized from maintenance/periodic technical review reports
drawn up by the contracting operators.
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Name
Previous
period –
2023
Reporting
period —
2024
% 2024 /
2023
Scope 1 GHG emissions
ELSA
Gross Scope 1 GHG emissions (tCO2eq)
58.35
76.72
131.49%
Percentage of Scope 1 GHG emissions from
regulated emission trading schemes (%)
0%
0%
0%
Biogenic CO2 emissions (from biomass
combustion or biodegradation) – not included
in Scope 1 of GHG emissions
-
-
-
EFSA
Gross Scope 1 GHG emissions (tCO2eq)
863.23
837.56
97.03%
Percentage of Scope 1 GHG emissions from
regulated emission trading schemes (%)
0%
0%
0%
Biogenic CO2 emissions (from biomass
combustion or biodegradation) – not included
in Scope 1 of GHG emissions
-
-
-
DEER
Gross Scope 1 GHG emissions (tCO2eq)
6,205.62
6,766.43
109.04%
Percentage of Scope 1 GHG emissions from
regulated emission trading schemes (%)
0%
0%
0%
Biogenic CO2 emissions (from biomass
combustion or biodegradation) – not included
in Scope 1 of GHG emissions
-
-
-
SERV
Gross Scope 1 GHG emissions (tCO2eq)
3,297.65
3,565.89
108.13%
Percentage of Scope 1 GHG emissions from
regulated emission trading schemes (%)
0%
0%
0%
Biogenic CO2 emissions (from biomass
combustion or biodegradation) – not included
in Scope 1 of GHG emissions
-
-
-
Total Grup
Electrica
Gross Scope 1 GHG emissions (tCO2eq)
10,424.85
11,246.60
107.88%
Percentage of Scope 1 GHG emissions from
regulated emission trading schemes (%)
0%
0%
0%
Biogenic CO2 emissions (from biomass
combustion or biodegradation) – not included
in Scope 1 of GHG emissions
-
-
-
GHG emissions Scope 2
For the calculation of Scope 2 emissions, total electricity consumption (kWh) recorded in each subsidiary/
branch, depending on the suppliers contracted.
The emissions associated with energy consumption were calculated using two recommended methods:
• Location-based method — using the national emission factor published by the NRA for 2024;
• Market-based method — using the emission factors published by energy suppliers contracted by ELSA
subsidiaries (EFSA and PPC) for 2024.
For the calculation of indirect greenhouse gas (GHG) emissions associated with energy consumption, the
quantities of electricity and thermal energy purchased by Electrica Group’s subsidiaries for their own use,
including own technological consumption, were considered.
Name
Previous
period –
2023
Reporting
period —
2024
% 2024 /
2023
Scope 2 GHG emissions
ELSA
Gross location-based Scope 2 GHG emissions,
expressed in metric tons of CO2 equivalent
(tCO2eq)
88.03
104.80
119.04%
Gross market-based Scope 2 GHG emissions,
expressed in metric tons of CO2 equivalent
(tCO2eq)
108.59
129.27
119.04%
Biogenic CO2 emissions (from biomass
combustion or biodegradation) – not included
in Scope 2 of GHG emissions*
-
-
-
EFSA
Gross location-based Scope 2 GHG emissions,
expressed in metric tons of CO2 equivalent
(tCO2eq)
49.19
250.83
509.90%
Gross market-based Scope 2 GHG emissions,
expressed in metric tons of CO2 equivalent
(tCO2eq)
60.68
309.40
509.90%
Biogenic CO2 emissions (from biomass
combustion or biodegradation) – not included
in Scope 2 of GHG emissions*
-
-
-
DEER
Gross location-based Scope 2 GHG emissions,
expressed in metric tons of CO2 equivalent
(tCO2eq)
332,267.87
325,550.31
97.98%
Gross market-based Scope 2 GHG emissions,
expressed in metric tons of CO2 equivalent
(tCO2eq)
409,850.42
401,564.35
97.98%
Biogenic CO2 emissions (from biomass
combustion or biodegradation) – not included
in Scope 2 of GHG emissions*
-
-
-
400
401
DIRECTORS’ REPORT FOR THE YEAR 2024
DIRECTORS’ REPORT FOR THE YEAR 2024
SUSTAINABILITY REPORTING FOR THE YEAR 2024
SUSTAINABILITY REPORTING FOR THE YEAR 2024
ELECTRICA 2024 ANNUAL REPORT
ELECTRICA 2024 ANNUAL REPORT
Name
Previous
period –
2023
Reporting
period —
2024
% 2024 /
2023
SERV
Gross location-based Scope 2 GHG emissions,
expressed in metric tons of CO2 equivalent
(tCO2eq)
576.30
265.67
46.10%
Gross market-based Scope 2 GHG emissions,
expressed in metric tons of CO2 equivalent
(tCO2eq)
674.65
302.25
44.80%
Biogenic CO2 emissions (from biomass
combustion or biodegradation) – not included
in Scope 2 of GHG emissions*
-
-
-
TOTAL
ELECTRICA
GROUP
Gross location-based Scope 2 GHG emissions,
expressed in metric tons of CO2 equivalent
(tCO2eq)
332,981.39
326,171.61
97.95%
Gross market-based Scope 2 GHG emissions,
expressed in metric tons of CO2 equivalent
(tCO2eq)
410,694.34
402,305.27
97.96%
Biogenic CO2 emissions (from biomass
combustion or biodegradation) – not included
in Scope 2 of GHG emissions*
-
-
-
GHG emissions Scope 3
Scope 3 greenhouse gas (GHG) emissions are indirect emissions resulting from activities linked to an
organization’s operations, but which are not owned by or directly controlled by the organization.
These emissions come from activities specific to the organization’s entire value chain, encompassing
emissions from the supply chain as well as emissions generated by end users through the consumption of
products or services provided by the organization.
The emission-generating activities have been divided into two categories based on the timing of their
generation (upstream or downstream of the organization’s operations) and are classified into 15 categories
according to the nature of the activity or the source of the emissions.
The percentage of emissions calculated using primary data obtained from suppliers or other partners in the
value chain is 99.8%.
Name
Previous
period –
2023
Reporting
period —
2024
% 2024 /
2023
Significant scope 3 GHG emissions
ELSA
Total Gross indirect (Scope 3) GHG emissions
(tCO2eq)
1,666.85
11,203.82
672.15%
1 Purchased goods and services
439.60
1,176.62
267.66%
[Optional sub-category: Cloud computing and
data center services]
-
-
-
2 Capital goods
1,103.80
9,882.48
895.31%
3 Fuel and energy-related activities (not
included in Scope1 or Scope 2): market
based
45.72
54.22
118.60%
4 Upstream transportation and distribution
-
-
-
5 Wastes generated in operations
26.24
29.54
112.59%
6 Business travel
14.61
31.47
215.43%
7 Employee commuting
24.82
18.69
75.29%
8 Upstream leased assets
-
-
-
9 Downstream transportation
-
-
-
10 Processing of sold products
-
-
-
11 Use of sold products
-
-
-
12 End-of life treatment of sold products
-
-
-
13 Downstream leased assets
12.07
10.80
89.54%
14 Franchises
-
-
-
15 Investments
-
-
-
Biogenic CO2 emissions (from biomass
combustion or biodegradation) – not included
in Scope 3 of GHG emissions
-
-
-
402
403
DIRECTORS’ REPORT FOR THE YEAR 2024
DIRECTORS’ REPORT FOR THE YEAR 2024
SUSTAINABILITY REPORTING FOR THE YEAR 2024
SUSTAINABILITY REPORTING FOR THE YEAR 2024
ELECTRICA 2024 ANNUAL REPORT
ELECTRICA 2024 ANNUAL REPORT
Name
Previous
period –
2023
Reporting
period —
2024
% 2024 /
2023
EFSA
Total Gross indirect (Scope 3) GHG emissions
(tCO2eq)
1,912,983.86
1,894,944.54
99.06%
1 Purchased goods and services
39,821.39
38,255.39
96.07%
[Optional sub-category: Cloud computing and
data center services]
-
-
-
2 Capital goods
1,435.98
852.51
59.37%
3 Fuel and energy-related
activities (not included in Scope1 or Scope 2):
market based
1,739,337.47
1,734,451.40
99.72%
4 Upstream transportation and distribution
-
-
-
5 Wastes generated in operations
460.88
493.56
107.09%
6 Business travel
44.05
17.03
38.67%
7 Employee commuting
259.41
262.58
101.22%
8 Upstream leased assets
-
-
-
9 Downstream transportation
-
-
-
10 Processing of sold products
-
n/a
-
11 Use of sold products
131,624.68
120,611.94
91.63%
12 End-of life treatment of sold products
-
0.11
-
13 Downstream leased assets
-
-
-
14 Franchises
-
-
-
15 Investments
-
-
-
Biogenic CO2 emissions (from biomass
combustion or biodegradation) – not included
in Scope 3 of GHG emissions
-
-
-
Name
Previous
period –
2023
Reporting
period —
2024
% 2024 /
2023
DEER
Total Gross indirect (Scope 3) GHG emissions
(tCO2eq)
188,461.57
184,019.49
97.64%
1 Purchased goods and services
13,870.69
14,096.71
101.63%
[Optional sub-category: Cloud computing and
data center services]
-
-
-
2 Capital goods
88,591.10
69,686.41
78.66%
3 Fuel and energy-related activities (not
included in Scope1 or Scope 2): market
based
82,301.47
96,589.67
117.36%
4 Upstream transportation and distribution
-
-
-
5 Wastes generated in operations
855.37
976.74
114.19%
6 Business travel
313.31
139.74
44.60%
7 Employee commuting
2,529.64
2,530.21
100.02%
8 Upstream leased assets
-
-
-
9 Downstream transportation
-
-
-
10 Processing of sold products
-
-
-
11 Use of sold products
-
-
-
12 End-of life treatment of sold products
-
-
-
13 Downstream leased assets
-
-
-
14 Franchises
-
-
-
15 Investments
-
-
Biogenic CO2 emissions (from biomass
combustion or biodegradation) – not included
in Scope 3 of GHG emissions
-
-
-
404
405
DIRECTORS’ REPORT FOR THE YEAR 2024
DIRECTORS’ REPORT FOR THE YEAR 2024
SUSTAINABILITY REPORTING FOR THE YEAR 2024
SUSTAINABILITY REPORTING FOR THE YEAR 2024
ELECTRICA 2024 ANNUAL REPORT
ELECTRICA 2024 ANNUAL REPORT
Name
Previous
period –
2023
Reporting
period —
2024
% 2024 /
2023
SERV
Total Gross indirect (Scope 3) GHG emissions
(tCO2eq)
5,724.46
3,951.13
69.02%
1 Purchased goods and services
4,447.40
2,607.05
58.62%
[Optional sub-category: Cloud computing and
data center services]
-
-
-
2 Capital goods
110.14
173.26
157.31%
3 Fuel and energy-related activities (not
included in Scope1 or Scope 2): market
based
888.56
742.68
83.58%
4 Upstream transportation and distribution
-
Included
in Scope
1(Mobile
Sources)
-
5 Wastes generated in operations
110.99
191.94
172.93%
6 Business travel
2.85
3.92
137.60%
7 Employee commuting
154.14
232.28
150.69%
8 Upstream leased assets
-
-
-
9 Downstream transportation
7.18
Included
in Scope
1(Mobile
Sources)
-
10 Processing of sold products
-
-
-
11 Use of sold products
-
-
-
12 End-of life treatment of sold products
3.2
-
-
13 Downstream leased assets
-
-
-
14 Franchises
-
-
-
15 Investments
-
-
-
Biogenic CO2 emissions (from biomass
combustion or biodegradation) – not included
in Scope 3 of GHG emissions
-
-
-
Name
Previous
period –
2023
Reporting
period —
2024
% 2024 /
2023
TOTAL
ELECTRICA
GROUP
Total Gross indirect (Scope 3) GHG emissions
(tCO2eq)
2,108,836.74
2,094,118.98
99.30%
1 Purchased goods and services
58,579.07
56,135.78
95.83%
[Optional sub-category: Cloud computing and
data center services]
-
-
-
2 Capital goods
91,241.02
80,594.65
88.33%
3 Fuel and energy-related
1.822.573,22
1.831.837,98
100.51%
activities (not included in Scope1 or Scope 2):
market based
1,822,573.22
1,831,837.98
100.51%
4 Upstream transportation and distribution
-
-
116,40%
-
192,16
51,27%
5 Waste generated in operations
1,453.48
1,691.79
116.40%
6 Business travel
374.81
192.16
51.27%
7 Employee commuting
2,968.02
3,043.76
102.55%
8 Upstream leased assets
-
-
-
9 Downstream transportation
7.18
-
-
10 Processing of sold products
-
-
-
11 Use of sold products
131,624.68
120,611.94
91.63%
12 End-of life treatment of sold products
3.20
0.11
3.36%
13 Downstream leased assets
12.07
10.80
89.54%
14 Franchises
-
-
-
15 Investments
-
-
-
Biogenic CO2 emissions (from biomass
combustion or biodegradation) – not included
in Scope 3 of GHG emissions
-
-
-
406
407
DIRECTORS’ REPORT FOR THE YEAR 2024
DIRECTORS’ REPORT FOR THE YEAR 2024
SUSTAINABILITY REPORTING FOR THE YEAR 2024
SUSTAINABILITY REPORTING FOR THE YEAR 2024
ELECTRICA 2024 ANNUAL REPORT
ELECTRICA 2024 ANNUAL REPORT
Total greenhouse gas emissions
2023
2024
%2024/2023
ELSA
Total greenhouse gas emissions (location-
based) (tCO2eq)
1,813.24
11,385.34
627.90%
Total greenhouse gas emissions (market-
based) (tCO2eq)
1,833.79
11,409.81
622.20%
EFSA
Total greenhouse gas emissions (location-
based) (tCO2eq)
1,913,896.28
1,896,032.93
99.07%
Total greenhouse gas emissions (market-
based) (tCO2eq)
1,913,907.77
1,896,091.50
99.07%
DEER
Total greenhouse gas emissions (location-
based) (tCO2eq)
526,935.05
516,336.23
97.99%
Total greenhouse gas emissions (market-
based) (tCO2eq)
604,517.60
592,350.27
97.99%
SERV
Total greenhouse gas emissions (location-
based) (tCO2eq)
9,598.41
7,782.69
81.08%
Total greenhouse gas emissions (market-
based) (tCO2eq)
9,696.76
7,819.27
80.64%
TOTAL
ELECTRICA
GROUP
Total greenhouse gas emissions (location-
based) (tCO2eq)
2,452,242.98
2,431,537.19
99.16%
Total greenhouse gas emissions (market-
based) (tCO2eq)
2,529,955.92
2,507,670.85
99.12%
The reporting limits considered, variable the calculation methods for the estimation of greenhouse gas
emissions and the calculation tools applied for each significant GHG category in Scope 3 are presented in
the table below:
Category
Reporting
perimeter
considered
Calculation methods for estimating
greenhouse gas emissions
Applied
calculation
tools
Purchased goods
and services
List of goods and
services purchased
by each subsidiary of
Electrica SA in 2024.
The emissions were calculated using the Expense Based
Method („spend”).
The consolidated financial information provided by the
representatives of the Electrica Group was used for the
calculation of emissions.
The classification of expenses incurred in 2024 was
carried out by representatives of the Electrica Group
at the level of the consolidated financial statements,
depending on the nature of the expenses and the
accounting accounts in which these expenses were
recorded.
To avoid double counting, fuel and utility charges,
excluding water supply and sewage costs, were
excluded from these categories of expenditure.
The conversion of capital goods acquisition values was
carried out using the average rate published by BNR10
for 2024: GBP 1 = RON 5.8769
The emission
factors published
by DESNZ and
DEFRA were used in
the CarbonSaver
application for
2024.
Category
Reporting
perimeter
considered
Calculation methods for estimating
greenhouse gas emissions
Applied
calculation
tools
Capital goods
List of capital goods
purchased by each
subsidiary of Electrica
SA in 2024.
The emissions were calculated using the Expense Based
Method („spend”).
The expenses incurred for the acquisition of capital
goods was classified in the categories published by
DEFRA on the basis of the description of the assets,
details in the addition reports and information provided
by the representatives of the Electrica Group.
The conversion of the acquisition values of capital
goods was carried out using the average rate published
by the BNR for 2024: GBP 1 = RON 5.8769.
The emission
factors published
by DESNZ and
DEFRA were used in
the CarbonSaver
application for
2024.
Fuel and energy
related activities
(not included in
Scope 1 and 2)
Quantities of fuels,
natural gas and
electricity included in
Scope 1 and 2.
The calculation of upstream emissions (WTT) associated
with the extraction and transportation of raw materials
for electricity purchased by the subsidiaries of the
Electrica Group, both for their own consumption and
for commercialization, was carried out using both
calculation methods recommended: „location based”
and „market based,” applying the emission factor
calculated based on the formula published by DEFRA in
its own methodology12.
The calculation of emissions from energy losses on the
national electricity transmission and distribution network
(T&D loss) was carried out using the two recommended
‘location based’ and ‘market based’ methods, using the
emission factor calculated by the company on the basis
of the calculation formula published by the International
Energy Agency (13).
The calculation of upstream emissions (WTT) associated
with the extraction and transport of raw material for
the production of electricity lost in the transmission
and distribution network (WTT of T&D loss) was carried
out using the two recommended ‘location based’ and
‘market based’ methods, using the emission factor
calculated on the basis of the calculation formula
published by DEFRA in the abovementioned own
methodology.
Upstream
emissions (WTT)
were calculated
using the emission
factors published
by DEFRA for 2024.
Emission factors
calculated on the
basis of the specific
emission factors
of the contracted
suppliers were used
for the calculation
of the upstream
emissions
associated
with the energy
consumption and
the losses recorded
in the transmission
and distribution
network, according
to the calculation
formula published
by DEFRA for 2024.
408
409
DIRECTORS’ REPORT FOR THE YEAR 2024
DIRECTORS’ REPORT FOR THE YEAR 2024
SUSTAINABILITY REPORTING FOR THE YEAR 2024
SUSTAINABILITY REPORTING FOR THE YEAR 2024
ELECTRICA 2024 ANNUAL REPORT
ELECTRICA 2024 ANNUAL REPORT
Category
Reporting
perimeter
considered
Calculation methods for estimating
greenhouse gas emissions
Applied
calculation
tools
Waste generated
in operations
Data collected from
internal records on
waste management
and annual reports
to environmental
protection authorities,
and includes:
• Designation of
waste generated;
• Code assigned to
waste according to
HG 856/2002;
• Method of waste
management
(disposal/recovery)
• Code of recovery/
disposal
operations.
The categories of waste generated have been classified
according to their nature in the categories of waste
published by DEFRA.
Emission factors have been allocated according to the
management method (recovery/disposal).
DEFRA, 2024
Business
travel (flights,
accommodation,
transfers, etc.)
For each subsidiary
of Electrica SA
information was
provided on business
travel by air (air
transport) with other
means of transport
(taxi transfers, Uber,
transfer companies,
or train journeys),
and accommodation
in the country and
abroad.
Emissions from air transport were determined using the
Carbon Emissions Calculator, which was developed on
the basis of the International Civil Aviation Organization
(ICAO) calculation methodology.
For journeys made by other means of transport, the
information provided by the travel agencies through
which the tickets were purchased and the information
available from the expense statements or the accounts
of the subsidiaries has been taken into account.
The reports provided by the representatives of the
subsidiaries included the following information:
•
Date of transport,
•
Route of each transport;
•
Means of transport used (passenger car, bus, bus
or train);
•
Type of fuel used by each means of transport
(petrol or diesel) and electricity in the case of
electric means of transport;
•
Distances traveled for each recorded transport.
Emissions from accommodation activities were
calculated using the Hotel Printing Tool17 application
developed by Green View. The application uses
the emission factors published by the Cornell Hotel
Sustainability Benchmarking (CHBS) Index for 2024.
The CHBS emission factors are calculated by country,
city and classification of the accommodation.
ICEC application
developed by ICAO
The Hotel
Photoprinting Tool
app developed by
GreenView.
DEFRA, 2024
Category
Reporting
perimeter
considered
Calculation methods for estimating
greenhouse gas emissions
Applied
calculation
tools
Employee
commute
For the calculation
of the emissions
from this category,
the subsidiaries of
ELSA HQ, EFSA and
DEER provided the
following information:
• Determination of average monthly working days:
• The average monthly working days used to determine
fuel consumption or monthly distances has been
calculated taking into account:
• total working days for 2024 (252 days),
• total number of days of leave/employee under CCM
(25 days).
DEFRA, 2024
CarbonSaver
application.
Employee
commute
• Total number of
employees within
each subsidiary:
ELSA HQ: 88
EFSA: 787
DEER: 6,473
ELSA Production and
SWE employees were
included in the total
number of ELSA HQ
employees.
• Number of
employees who have
company car
(ELSA: 31 employees
EFSA: 119 employees
DEER: 41 employees).
-Other annual days off to staff at Group Electrica level (4
days/year).
Thus, the number of working days/employee/year
was 223 days, resulting in an average number of 18.58
working days/month.
• Determination of the number of employees using
public transport or private cars:
-Of the total number of employees of each subsidiary,
the number of employees working at home and the
number of employees benefiting from the service
machine was reduced;
-For the number of employees remaining, the
assumption has been established that 50% use public
transport and 50% use own vehicles.
For the calculation of greenhouse gas emissions
resulting from the transportation of employees using
their own vehicles, the assumption was made that half
of these vehicles are diesel-powered, while the other
half are gasoline-powered.
• Determination of average distance traveled daily:
In order to be able to approximate the average
distance traveled on a daily basis by employees of
the subsidiaries of the Group of Electrica to and from
the workplace, a number of confirmed and validated
assumptions were considered with the representatives
of ELSA;
-According to the INS, the municipality of Bucharest
has a circular shape, its axes measuring approximately
24 km in the direction N-S and approximately 22 km
E-V. Thus, this average distance was calculated as
the average of the distances on the two axes (mean
diameter) divided by 2 (mean radius), thus obtaining
the value of approximately 12 km;
-The average distance from the periphery to the center
was divided into three equal segments, on which the
number of employees was distributed:
• Long distance (from periphery to center): between
8 and 12 km (average 10 km multiplied by 2 for the
round-trip), where approx. 20% of ELSA’s employees
and 30% of the employees of EFSA, DEER and SERV
subsidiaries fall;
• Average distance (from center): between 4 and 8 km
(average 6 km multiplied by 2 as a round-trip), where
approx. 50% of the employees of all subsidiaries fall;
DEFRA, 2024
CarbonSaver
application.
410
411
DIRECTORS’ REPORT FOR THE YEAR 2024
DIRECTORS’ REPORT FOR THE YEAR 2024
SUSTAINABILITY REPORTING FOR THE YEAR 2024
SUSTAINABILITY REPORTING FOR THE YEAR 2024
ELECTRICA 2024 ANNUAL REPORT
ELECTRICA 2024 ANNUAL REPORT
Category
Reporting
perimeter
considered
Calculation methods for estimating
greenhouse gas emissions
Applied
calculation
tools
• Small distance (close location): 0 to 4 km (average
of 2 km multiplied by 2 as a round-trip), where
approximately one 30% of ELSA’s employees and 20%
of the employees of EFSA, DEER and SERV subsidiaries
were allocated.
-Multiplying the number of employees traveling by
public transport or by their own vehicles by the average
distances obtained, results in the total daily distance
traveled by employees which, compared to the total
number of employees using public transport or private
motor vehicles, will determine the average distance
traveled by an employee on a daily basis (round-trip).
-Applying this calculation methodology, the following
average distances have resulted:
• ELSA HQ: 11.5 km/employee/day;
• EFSA, DEER and SERV: 12.8 km/employee/day.
DEFRA, 2024
CarbonSaver
application.
Use of sold
products
EFSA: the total
quantity of natural
gas purchased
for sale to final
customers in 2024
(659,442,000.00
kWh);
SERV: the total
amount of
photovoltaic
panels sold to
the subsidiary’s
customers in 2024
(728 bsec.).
Emissions from the use/combustion of natural gas in
stationary combustion plants or equipment.
DEFRA, 2024.
The following table presents the Scope 3 GHG emission categories included in and excluded from the inventory,
together with a justification for the excluded categories.
Scope 3 GHG emissions
Included/
Excluded
Justification for exclusion
1 Purchased goods and services
Included
[Optional sub-category: Cloud computing and
data center services]
Excluded
Optional
2 Capital goods
Included
3 Fuel and energy related activities (not
included in Scope 1 or Scope 2)
Included
4 Upstream transportation and distribution
Excluded
The fuel consumption recorded for these transports has
been included in Scope 1 – Mobile sources.
5 Wastes generated in operations
Included
6 Business travel
Included
7 Employee commuting
Included
8 Upstream leased assets
Excluded
This category is not applicable to Electrica Group.
9 Downstream transportation
Excluded
The fuel consumption recorded for these shipments was
included in Scope 1 — Mobile sources.
10 Processing of sold products
Excluded
This category is not applicable to Electrica Group.
11 Use of sold products
Included
12 End-of life treatment of sold products
Included
13 Downstream leased assets
Included
14 Franchises
Excluded
This category is not applicable to the Electrica Group.
15 Investments
Excluded
This category is not applicable to the Electrica Group.
Greenhouse gas intensity per net revenue — Total Electrica Group:
Greenhouse gas intensity per net revenue —
Total Group Electrica
Previous
period – 2023
Reporting
period – 2024
% 2024 / 2023
Total greenhouse gas emissions (location-based)
per net revenue (t CO2eq/RON)
0.25
0.27
108%
Total greenhouse gas (market-based) emissions
per net revenue (t CO2eq/RON)
0.26
0.28
108%
Net revenue used for calculating the greenhouse
gas intensity (thousand RON)
9,816,593
8,995,202
92%
Net revenue (other)
(thousand RON)
74.299
64.851
87%
Total net revenue (from financial statements,
thousand RON)
9,816,593
8,995,202
92%
412
413
DIRECTORS’ REPORT FOR THE YEAR 2024
DIRECTORS’ REPORT FOR THE YEAR 2024
SUSTAINABILITY REPORTING FOR THE YEAR 2024
SUSTAINABILITY REPORTING FOR THE YEAR 2024
ELECTRICA 2024 ANNUAL REPORT
ELECTRICA 2024 ANNUAL REPORT
E1-7 GHG removals and GHG mitigation projects financed through carbon
credits
During the reporting period, Electrica Group did not develop or contribute to projects aimed at the absorption
or storage of greenhouse gases (GHG). External projects to reduce or eliminate GHG through the acquisition
of carbon credits have also not been funded.
The company does not own and did not use carbon credits during the reporting period.
E1-8 Internal carbon pricing
Electrica Group does not currently use an internal carbon pricing system.
E1-9 Anticipated financial effects from material physical and transition
risks and potential climate-related opportunities
Electrica Group has applied the phase-in principles, as set out in ESRS 1 Appendix C, for reporting the ESRS E1-9
requirement. Thus, at this stage, the company does not have detailed information on the anticipated financial
effects of the physical and material risks as well as climate change opportunities.
The necessary information will be included in future reports as the processes and methodologies for assessing
these impacts are developed and implemented. This approach ensures alignment with the ESRS requirements,
taking into account the group’s current resources and processes.
ESRS S1 – Own workforce
ESRS 2 SBM-3 – Material impacts, risks and opportunities and their
interaction with strategy and business model
SBM-3 S1 - 3.13(a)
As part of the double materiality assessment, the impacts, risks, and opportunities related to each material
topic and sub-topic concerning the workforce were evaluated in accordance with AR16 in ESRS 1.
The actual and potential impacts and risks linked to the workforce are closely tied to the strategy and business
model, and the company’s actions are directed towards minimizing negative impacts, reducing risks, and
providing opportunities for development for all employees.
For information regarding the process of identifying material impacts, risks, and opportunities related to
business conduct, refer to the General Information chapter, section IRO-1.
The aspects identified as material concerning the own workforce include:
Table 1: Material topics in relation to the company’s own workforce
Material Sub-
sub-topic
Location
IRO
Description IRO
Actual/
potential
Time
horizon
Own workforce
Own
operations
Risk –
derived from
impact
New regulations regarding employee safety
and activity efficiency
Actual
Short,
medium and
long-term
Health and
Safety
Own
operations
Risk –
derived from
impact
Technological risk arises if protective
equipment does not meet safety standards
or if outdated technologies are used.
Potential
Short,
medium and
long-term
Health and
Safety
Downstream
and
upstream
operations
Opportunity
– derived
from impact
Enhancing public image through the efficient
and safe operation of critical infrastructure.
Actual
Short,
medium and
long-term
Safe workplace
Own
operations
Positive
impact
(+) Respect for human rights is incorporated
into the Group-level Code of Ethics and
Business Conduct. We ensure that all our
activities uphold the dignity and fundamental
rights of all individuals, promoting a fair and
inclusive work environment.
Actual
Short-term
Equal
treatment and
opportunities
for all
Working
conditions
Own
operations
Positive
impact
(+) The implementation of the Occupational
Health and Safety (OHS) policy, the
organization of periodic training sessions,
and certification in line with the international
ISO 45001 standard have contributed
to a reduction in workplace accidents,
improved employee health and safety, and
strengthened a prevention- and protection-
oriented organizational culture. Thus, at the
Group level, not only are legal regulations
adhered to, but a safe and healthy work
environment is also actively promoted,
resulting in increased employee productivity
and satisfaction.
Actual
Short-term
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Material Sub-
sub-topic
Location
IRO
Description IRO
Actual/
potential
Time
horizon
Social dialogue
Own
operations
Positive
impact
(+) The presence of representative unions
in each subsidiary and the fact that
approximately 98% of the Group’s employees
are union members ensure the protection
of employee rights and the promotion of a
stable and fair working environment. The
absence of union actions in 2023 and so far
in 2024 reflects a strong and constructive
relationship between management and
employees, contributing to increased
workforce satisfaction and motivation.
Actual
Short-term
Confidentiality
Own
operations
Positive
impact
(+) Protecting data confidentiality
significantly contributes to strengthening
the company’s reputation and increasing
employee and public trust. Compliance with
data protection regulations helps avoid legal
and financial penalties, thereby maintaining
the company’s financial stability.
Employees feel more motivated and secure
when they know their personal data is
adequately protected (with a GDPR policy
and officer in place). Preventing security
breaches and efficiently managing data
confidentiality reduces the costs associated
with problem resolution and avoids
significant financial losses.
Actual
Short-term
Working
conditions
Own
operations
Positive
impact
(+) Creating a safe and inclusive work
environment, alongside promoting diversity
and equal opportunities, contributes to
increased employee satisfaction and
motivation, leading to higher productivity
and reduced staff turnover. Continuous skill
development for employees and ensuring
a healthy work-life balance enhance talent
retention and attract new hires, strengthening
the company’s reputation as a top employer.
Actual
Short-term
Working
conditions
(+) The availability of detailed information
on aspects related to efficient human
resource management demonstrates
our commitment to best practices and
managerial responsibility, contributing to
increased trust and satisfaction among our
employees and partners.
Diversity
Own
operations
Positive
impact
(+) The availability of detailed information
regarding aspects of efficient human
resource management reflects our
commitment to best practices and
managerial responsibility, fostering increased
trust and satisfaction among our employees
and partners.
Actual
Short-term
Material Sub-
sub-topic
Location
IRO
Description IRO
Actual/
potential
Time
horizon
Measures
against violence
and harassment
in the workplace
Own
operations
Positive
impact
(+) Ensuring a safe and respectful work
environment contributes to boosting
employee morale and productivity. The
implementation of clear and effective policies
reduces the risk of workplace conflicts and
legal issues, enhancing the company’s
reputation as a responsible and ethical
employer. This approach attracts and retains
high-quality talent, while fostering a positive
and inclusive organizational culture.
Actual
Short-term
Electrica Group has evaluated the material risks
and opportunities arising from the impacts and
dependencies on its workforce. Through the double
materiality analysis, two risks and one opportunity
have been identified as material to the Group’s
activities.
The first risk pertains to the workforce, where
new regulations on employee safety and activity
efficiency may have a significant impact. This is an
actual risk and is present in the short, medium, and
long term. The affected stakeholder group includes
employees from all departments, especially those in
operations and production.
The second risk relates to employee health and
safety, where there is a technological risk if protective
equipment does not meet safety standards or if
outdated technologies are used. This is a potential
risk and manifests in the short, medium, and long
term. The stakeholder group affected includes
employees handling technical equipment.
The identified material opportunity is linked to health
and safety in upstream or downstream activities,
where improving the public image through the
efficient and safe operation of critical infrastructure
can have a positive impact. This opportunity is
current and applies in the short, medium, and long
term. The affected stakeholder group includes local
communities and business partners.
By identifying and validating these risks and
opportunities, Electrica Group aims to integrate
stakeholder interests into strategic and operational
decision-making,
thereby
strengthening
organizational
transparency
and
responsibility.
The insights gained from the consultation process
conducted in 2024 will be used to adjust and update
the
Group’s
strategic
sustainability
objectives,
ensuring continuous alignment with stakeholder
expectations
and
sustainability
requirements.
SBM-3 S1 - 3.14(a)
Electrica
Group
team
is
essential
for
the
organization’s success and ongoing development.
The team structure reflects a commitment to
diversity, excellence, and adaptability to industry
changes.
In 2024, ELSA had 88 permanent employees, EFSA
had 781 permanent employees and 6 temporary
employees, DEER had 6,347 permanent employees
and 126 temporary employees, while SERV had 435
permanent employees and 11 temporary employees.
Regarding the production subsidiaries, in 2024
SWE had 3 part-time employees (which are also
ELSA’s employees), while NTE, FPE and CPP had no
employees. The total number of employees includes
mandate contracts for each company separately.
In 2024, the Group did not have non-employees
(self-employed individuals or workers provided
by companies primarily engaged in “employment
activities”).
At DEER, the workforce is composed exclusively of
employees, with 65% being part of the production
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structure, 20% representing support staff within the
production structure, and 15% working in business
support structures.
In addition to its own workforce, Electrica Group
collaborates
with
senior
management
under
mandate contracts. Although this category is not
included in the definition of the Group’s own workforce
under ESRS, related information has been included
in the report due to the nature of the relationship
with the company, the legal form under which they
collaborate being the only that differs from that of
direct employees.
Regarding material impacts, as well as workforce-
related risks and opportunities, the company’s
policies and programs comprehensively cover all
workforce members. Depending on the activity
location, workforce-related risks and opportunities
may vary, but the policies and programs implemented
by Electrica Group for its workforce address all
employees.
SBM-3 S1 - 3.14(b)
According to the double materiality assessment,
within Electrica Group’s workforce, negative impacts
related to occupational health and safety may arise
due to the complexity and diversity of activities
performed. Tasks such as managing and maintaining
electrical grids, handling live installations, and
working at heights pose risks for employees.
Interventions during adverse weather conditions and
stressful situations add an extra layer of risk.
A demanding work schedule can lead to exhaustion
and increase health risks or the likelihood of
workplace injuries. To minimize these impacts,
Electrica Group operates an Integrated Management
System
for
Quality,
Environment,
Occupational
Health and Safety, Information Security, Energy. This
system includes procedures for hazard identification,
risk assessment, and monitoring employee health.
The system is certified by SRAC Cert and covers
all workplaces, ensuring compliance with legal
requirements and international standards.
Electrica Group invests in training and awareness
programs focusing on workplace health, thereby
contributing to improving employees’ physical,
mental, and emotional well-being. This approach
also strengthens an organizational culture oriented
towards employee safety and welfare.
SBM-3 S1 - 3.14(c)
Employees’ rights and work-related professional
ethics stem from the company’s policies and collective
labor agreements. These serve as the foundation for
stability and are essential mechanisms in generating
beneficial outcomes for Electrica Group’s employees.
Through these measures, Electrica Group provides a
stable work environment with financial predictability
and well-defined working standards shaped through
constructive social dialogue.
Electrica Group generates significant positive impacts
on its own workforce by implementing the following
initiatives and activities targeting all employees:
• Development
and
implementation
of
educational programs: These programs address
the
Group’s
long-term
needs,
contributing
to the continuous training and professional
development of employees.
• Modernization of the performance management
system: By introducing performance indicators,
including ESG, Electrica Group ensures regular and
objective evaluations of employee performance
and career growth.
• Cultural
transformation:
Aligning
common
values and fostering a sense of belonging within
the organization are essential for achieving
strategic
goals
and
enhancing
employee
satisfaction.
• Occupational
health
and
safety:
The
implementation of an Integrated Management
System for Quality, Environment, Health and
Occupational Safety, certified by SRAC Cert,
ensures a consistent level of protection and
compliance with current regulations for all
employees, regardless of their hierarchical level
or the nature of their activities.
Electrica Group has a Board of Directors composed
of seven members and four executive managers who
work for the company under mandate contracts. The
Chair and the BoD members hold no other positions
within
the
organization,
being
non-executive
members. According to the company’s Articles of
Incorporation, at least four of the seven members
must be independent.
The Board of Directors, together with the executive
team, is responsible for carrying out all the necessary
measures
for
the
company’s
operations.
This
arrangement ensures efficient activity management
and a robust organizational structure, essential for
achieving the strategic objectives of Electrica Group.
SBM-3 S1 - 3.14(d)
Electrica Group has identified a series of significant
risks and opportunities for the company, arising from
the impacts and dependencies on its own workforce.
These are the result of the double materiality
assessment and reflect the connection between
human resources and operational continuity, legal
compliance, and the organization’s reputation.
Actual risk – impact-driven: Legislative changes
regarding employee safety and activity efficiency
may require the Group to take swift adaptation
measures,
make
additional
investments,
and
revise internal procedures. Non-compliance with
the new regulations could lead to financial costs,
reputational risks, and potential interruptions in
operational activities. This risk is monitored across
the entire Group and is integrated into compliance
plans and updates to occupational health and safety
procedures.
Potential risk – impact-driven: The use of protective
equipment that does not meet safety standards
or outdated technologies may affect employee
safety, work productivity, and potentially lead to
occupational incidents. This risk is particularly
relevant to operational activities in the distribution
and technical services sectors, where direct exposure
to physical risks is higher. The Group mitigates this
risk through periodic equipment assessments and
investment plans for infrastructure modernization.
Actual opportunity – impact-driven: The efficient
and safe operation of critical infrastructure directly
contributes to strengthening Electrica Group’s image
as a responsible provider of essential services. This
opportunity is strategic, as a strong reputation for
employee safety and operational performance
can support the attraction and retention of skilled
personnel, facilitate relationships with regulatory
authorities,
and
build
trust
among
external
stakeholders.
These
risks
and
opportunities
are
integrated
into corporate governance processes, strategic
evaluations,
and
human
resource
planning.
SBM-3 S1 - 3.14(e)
In the context of the transition towards more
sustainable
operations
and
Electrica
Group’s
commitments to reducing carbon emissions, only
positive material impacts on its own workforce
have been identified as a result of the measures
implemented
to
achieve
climate
and
energy
efficiency
targets.
These impacts include:
• Improved employee health and safety, particularly
in the context of operating and maintaining
renewable energy infrastructure. The enforcement
of occupational health and safety policies, ISO
45001 certification, and regular training sessions
contribute to preventing incidents and adapting
effectively to new technical requirements.
• Professional skill development through reskilling
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and training programs that support employees
in adapting to new technological requirements
brought by digitalization and the implementation
of green solutions.
• Active
involvement
of
trade
unions,
which
contributes to a fair transition by representing
employee
interests
and
participating
in
consultations regarding changes brought by
operational transformation.
• Implementation of the Code of Ethics and Business
Conduct, ensuring a framework of fairness,
respect, and transparency for employees during
periods of organizational change, including the
transition to a low-emission business model.
By the end of 2024, Electrica Group has not identified
negative impacts on its own workforce caused by
transition measures, such as restructuring or job
losses.
SBM-3 S1 - 3.14(f) SBM-3 S1 - 3.14(g)
Electrica Group does not operate in regions or sectors
with significant risks of forced or compulsory labor.
All suppliers and partners are subject to inspections,
and the Code of Ethics and Business Conduct
enforces strict standards regarding the respect for
human rights and labor legislation. Electrica does not
face risks related to employing minors in its activities.
Electrica strictly complies with national legislation
and applies rigorous policies against child labor,
refusing to collaborate with suppliers who fail to meet
national and international standards in this domain.
All Group operations are located in Romania, a state
that respects and enforces essential international
treaties on employee rights, including Convention
No. 105 of 1975 on the Abolition of Forced Labor and
Convention No. 138 of 1973 concerning the Minimum
Age for Employment. Romanian legislation sets
the minimum age for employment at 15 years,
and hazardous work for minors under 18 is strictly
prohibited.
Additionally, Electrica Group includes contractual
clauses prohibiting partners and suppliers from
using child or forced labor.
Electrica Group has identified categories of employees
exposed to specific risks based on the activities they
perform. At DEER, employees in electricity distribution
face operational risks such as working with high-
voltage equipment and adverse weather conditions.
At SERV, which ensures grid maintenance, similar risks
are present, making safety measures and periodic
training essential to prevent occupational accidents.
At EFSA, personnel involved in supply activities
may experience professional stress, especially in
customer interactions and managing compliance
requirements. Electrica has implemented training
and support programs to improve the handling
of
client/customer
relationships
and
end-user
needs. In the case of ELSA, which coordinates
management activities, there are no significant
safety risks, although employees may be affected by
legislative changes and compliance requirements,
necessitating
continuous
adaptation.
The energy transition and digitalization bring both
risks and opportunities. At DEER and SERV, grid
modernization requires technicians to be reskilled for
new technologies, and those who fail to adapt may
face challenges. In supply activities, the digitalization
of processes reduces administrative tasks but
requires the development of new competencies.
Each company within Electrica Group has procedures
for conducting hazard identification, evaluation, and
management of occupational health and safety
risks. This process is ongoing and incorporates
various potential triggers, in compliance with legal
provisions.
Employees active in these roles are informed of these
risks upon employment and are periodically trained
as per legal regulations, with frequencies established
by the annual training and testing schedule: monthly,
quarterly, semi-annually, or annually.
S1-1 – Policies related to own workforce
Code of Ethics and Business Conduct
Electrica Group’s human resources strategy focuses
on
organizing,
recruiting,
selecting,
assessing
performance, and developing personnel in alignment
with business objectives. According to internal
regulations, employees have the right to form and join
unions, while management maintains a transparent
and respectful dialogue.
The strategic coordination role within the Group is
carried out by Societatea Energetică Electrica S.A.
(ELSA). The values and principles defined at ELSA
through the Code of Ethics and Business Conduct
(CEBC) and the associated set of policies are
applicable across the entire Group. ELSA oversees
the process of evaluating the applicability of CEBC
and related policies, as well as their revision within
the Group.
Electrica
Group
respects
and
promotes
the
fundamental rights of employees through the Code
of Ethics and Business Conduct, which ensures a work
environment based on respect, equity, and integrity.
The Group’s policies align with the UN Guiding
Principles on Business and Human Rights, the ILO
Declaration on Fundamental Principles and Rights
at Work, and the OECD Guidelines for Multinational
Enterprises.
In cases of human rights violations, there are reporting
mechanisms in place, including an integrity warning
system. Remedial measures are applied according
to compliance and ethics policies, as per the Policy
on Reporting Ethical Violations, Irregularities, or Any
Violations of the Law through professional alert
mechanisms (Integrity Whistleblowing).
For more details about the Code of Ethics and
Business Conduct, please refer to Chapter ESRS E1,
Climate Change, Policy Section.
In addition to the Code of Ethics and Business
Conduct, the following policies are applied within
Electrica Group to address identified impacts, risks,
and
opportunities.
The primary objective of these policies is to ensure
fair and equitable working conditions that uphold
and protect the health, safety, and dignity of the
workforce.
Occupational Health and Safety Policy
Electrica’s Occupational Health and Safety (OHS)
Policy establishes a framework for ensuring a safe
and healthy working environment for all employees
and contractors involved in activities conducted for
or on behalf of the organization, in compliance with
national legislation and international standards.
Policy objectives include:
• Increasing
employee
awareness
regarding
workplace
health
and
safety,
fostering
an
organizational culture centered on safety;
• Enhancing
OHS
performance
by
effectively
identifying and managing risks of accidents and
occupational illnesses across all activities.
• Providing
continuous
training
to
staff
for
recognizing
and
preventing
occupational
hazards, thereby minimizing workplace incidents.
• Creating a healthy and safe working environment
for all employees and contractors.
• Ensuring compliance with applicable health and
safety legislation and regulations, aligning with
the company’s adopted compliance standards.
• Adopting
and
implementing
modern
technologies, equipment, and methodologies to
reduce risks to workers’ health and safety.
• Involving employees and their representatives in
the planning, implementation, and evaluation of
workplace health and safety measures.
• Conducting professional activities under optimal
conditions, eliminating risks associated with
the use of alcohol, drugs, or other prohibited
substances.
The responsibility for implementing the Occupational
Health and Safety (OHS) Policy primarily lies with senior
management, which must ensure the allocation of
necessary resources and monitor compliance with
its provisions. The coordination of health and safety
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activities is carried out by designated officials who
implement risk prevention measures, employee
training, and audits of safety processes. Employees,
in turn, are obligated to adhere to OHS regulations,
use appropriate protective equipment, and report
on any identified risk situations. The policy has been
approved by the CEO.
Electrica Group aligns with international standards
and current regulations on occupational health and
safety, including ISO 45001, a globally recognized
standard
for
occupational
health
and
safety
management
systems.
Additionally,
the
policy
complies with the International Labor Organization
(ILO) conventions and European Union regulations in
the field of labor protection.
The OHS policy was elaborated and periodically
updated through consultations with stakeholders,
including employees, trade unions, managers, and
regulatory authorities. Their involvement ensures the
applicability and effectiveness of the implemented
measures, the adaptation of the policy to on-
the-ground realities, and the strengthening of an
organizational climate rooted in prevention and
safety.
The Occupational Health and Safety (OHS) Policy
is accessible to all employees and collaborators
through internal platforms and is integrated into
periodic
training
programs.
Contractors
and
business partners are provided with access to the
policy provisions through contractual clauses and
are required to comply with the health and safety
standards established by the company.
Ethical Career Management Policy
Electrica Group’s Ethical Career Management Policy
establishes principles and rules to ensure a fair
professional environment, where employees have
access to development and promotion opportunities
based on merit, skills, and performance. This policy
regulates recruitment, evaluation, promotion, and
professional
development
processes,
ensuring
adherence to ethics and transparency in human
resource management.
Fundamental principles:
• Transparency and objectivity in the processes
of
evaluation,
promotion,
and
professional
development.
• Respect for equal opportunities, eliminating all
forms of discrimination or unfair treatment.
• Performance-based evaluation using clear and
measurable criteria.
• Support for employee development through
access to training and mentorship programs.
• Promoting a climate of integrity where career-
related
decisions
are
made
ethically
and
responsibly.
For further details regarding the Ethical Career
Management Policy, please refer to Chapter ESRS
G1, Policies Section.
Policy
for
Preventing,
Combating
and
Sanctioning All Forms of Harassment at Work
Electrica Group’s Policy for Preventing, Combating
and Sanctioning All Forms of Harassment at Work
establishes the principles and rules necessary to
ensure a safe, respectful, and harassment-free
workplace.
This policy governs employee behavior in professional
relations and defines measures for preventing and
addressing moral, psychological, sexual harassment,
or discrimination. It promotes an organizational
culture based on mutual respect and zero tolerance
for harassment, applying clear sanctions in proven
cases.
Applicable
to
all
Electrica
Group
personnel,
regardless of their hierarchical position, this policy
is grounded in current legislation, including Law
202/2002 on equal opportunities for women and men,
as amended, as well as the Labor Code. Additionally,
the policy establishes reporting mechanisms and
victim protection measures, encouraging employees
to report any abuse through confidential and secure
channels.
For
further
details
regarding
the
Policy
for
Preventing, Combating and Sanctioning All Forms
of Harassment at Work, please consult chapter
ESRS G1, Policies Section.
Policy on Stakeholder Engagement
Electrica’s Policy on Stakeholder Engagement defines
the principles and mechanisms through which
the organization collaborates with shareholders,
employees, customers/consumers and end-users,
business partners, and other relevant parties.
Its
purpose
is
to
ensure
open,
transparent,
and
continuous
dialogue,
maintain
balanced
relationships, and integrate stakeholder feedback
into
decision-making
processes.
Through
this
policy,
Electrica
Group
aims
to
promote responsible corporate governance, reduce
reputational
risks,
and
support
sustainability
objectives.
The policy applies to all structures within Electrica
Group, including subsidiaries and associated entities,
and governs interactions with:
• Shareholders – to ensure transparency and
protect their interests.
• Employees and trade unions – to promote a
stable and equitable work environment.
• Customers/Consumers
and
end-users
–
to
improve service quality and increase satisfaction.
• Business partners – to maintain ethical and
sustainable commercial relationships.
• Public and regulatory authorities – to ensure
compliance with legal requirements and industry
standards.
• Community and civil society – to foster social
responsibility
initiatives
and
sustainable
development.
The responsibility for implementing the policy lies
with:
• The Board of Directors – approves and oversees
compliance with established principles and
objectives.
• The Ethics and Compliance Department –
monitors stakeholder relations and ensures the
implementation of necessary measures.
• The operational teams – enforces the policy at
each structure within Electrica Group.
• Employees – are required to uphold ethical and
professional behavior standards in interactions
with stakeholders.
Electrica Group maintains an ongoing consultation
process with stakeholders through public debates,
roundtable discussions, surveys, online consultations,
and periodic meetings. These mechanisms ensure
the collection of relevant feedback and its integration
into the company’s development strategy.
The company builds its stakeholder relationships on
fairness, transparency, and responsibility, with the
objective of building mutual trust and respect.
The policy is communicated through:
• Internal platforms and compliance manuals for
employee and management access.
• Electrica Group’s website for external parties to
review engagement principles.
• Annual and sustainability reports that reflect the
policy’s application and outcomes in stakeholder
interactions.
Stakeholders can share their views through reporting
systems, offering an open channel for addressing
concerns and suggestions.
Policy
on
Reporting
Ethical
Violations,
Irregularities,
or
Any
Breach
of
the
Law
(Whistleblowing
Policy)
The Whistleblowing Policy within Electrica Group
establishes a clear mechanism for reporting and
addressing ethical, legal, and compliance violations.
This policy ensures the protection of employees,
clients/consumers
and
end-users,
suppliers,
and
other
stakeholders
who
report
violations,
guaranteeing the confidentiality of whistleblowers’
identities and prohibiting any retaliation against
them. The policy also outlines the methods for
reporting
breaches
through
various
channels
(e-mail, phone, online platforms), the process for
investigating complaints, and applicable remedial
measures.
Furthermore, it defines clear principles regarding
managerial responsibility, sound governance, and
professional ethics.
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For further details on the Policy on Reporting Ethical
Breaches, Irregularities, and Violations of the Law,
please consult Chapter ESRS G1, Policies Section.
Policy on Personal Data Protection (GDPR)
Electrica Group’s GDPR Policy regulates how personal
data of employees, partners, clients/consumers, and
end-users is collected, processed, and protected.
This policy ensures compliance with Regulation (EU)
2016/679 (GDPR) and applicable national legislation,
OECD Principles on privacy and transborder flows
of personal data, and ISO/IEC 27001 standards for
information security, used as a benchmark for data
protection measures.
The main objectives of the policy are:
• Protecting
the
fundamental
rights
of
data
subjects through confidentiality and security
measures.
• Defining principles for data processing (legality,
transparency, data minimization).
• Implementing effective mechanisms to prevent
data breaches and unauthorized access.
• Ensuring
compliance
with
data
protection
regulations through periodic monitoring and
audits.
• Respecting the rights of data subjects, such as
the right to access, rectification, deletion, and
data portability.
The policy highlights risks associated with the
management of personal data, including potential
confidentiality breaches and the financial penalties
linked to non-compliance. On the other hand, it
also identifies opportunities such as enhancing
stakeholder trust and optimizing internal processes
through secure digitalization.
The policy covers activities such as collecting, using,
storing, transferring, and protecting personal data;
processing employee, client/consumer, partner, and
other stakeholder data related to Electrica Group.
It does not apply to anonymized data or information
that does not allow for direct identification of
individuals.
GDPR Compliance Measures Adopted:
• Appointment of a Data Protection Officer (DPO)
to oversee compliance and handle data subject
requests.
• Implementation and periodic updates of internal
data protection policies and procedures.
• Publishing an informative note on personal
data processing on Electrica S.A. and subsidiary
websites.
• Inclusion of data protection clauses in all relevant
contracts.
• Conducting employee training programs to raise
awareness of data protection obligations.
• Limiting access to data strictly to authorized
personnel
and
implementing
robust
authentication systems.
• Periodic
monitoring
and
auditing
of
GDPR
compliance to identify vulnerabilities.
• Adoption of technical security measures such as
data encryption, firewalls, and intrusion detection
systems.
Responsibilities for Data Processing
• The Data Protection Officer (DPO): Ensures
compliance with data protection regulations and
monitors policy implementation.
• The Director of the IT&C Department: Implements
technical data security measures and verifies/
audits systems to prevent breaches.
• Employees and collaborators: Must adhere to the
policy and take measures to protect personal
data they handle.
The GDPR policy is approved by the CEO.
Any request regarding data protection can be
addressed to the Data Protection Officer (DPO), and
data subjects have the right to file complaints if they
believe their data has been improperly processed.
To
develop
and
update
the
personal
data
protection policy, Electrica Group involved employee
representatives and trade unions to ensure their
rights are complied with. The IT and cybersecurity
departments contributed to the implementation of
technical protection measures, and the requirements
of national data protection authorities were also
considered. The Group maintained a continuous
dialogue
to
ensure
compliance
with
current
regulations.
The Code of Ethics and Business Conduct, along
with the policies described above, governs key
aspects such as occupational health and safety,
ethical career management, harassment prevention,
and stakeholder engagement. These frameworks
contribute to fostering an organizational culture
centered
on
transparency,
accountability,
and
mutual respect.
These policies are applicable to Electrica Group’s
entire workforce and address both field and office
activities. The Occupational Health and Safety
Policy is one of them, establishing the mechanisms
for accident prevention, ensuring safe working
conditions, and implementing proactive measures
to reduce professional risks. Additionally, the Ethical
Career Management Policy regulates merit-based
evaluation and professional development processes,
ensuring fair treatment for all employees.
The Stakeholder Engagement Policy provides a
framework for transparent communication with
employees and trade unions, preventing labor
conflicts and contributing to organizational stability.
The Code of Ethics and Business Conduct emphasizes
respect for human dignity and employee safety,
establishing ethical conduct norms.
Compliance with workers’ rights is a key priority
reflected in the Code of Ethics and Business Conduct,
which prohibits unfair treatment and promotes a
climate of mutual respect. These rights are also
regulated through the Ethical Career Management
Policy, ensuring transparency in evaluation and
promotion processes while fostering meritocracy,
equity, and fairness. Employee protection includes
mechanisms for reporting irregularities through
the Whistleblowing Policy, which guarantees an
anonymous and secure system for addressing
violations.
Electrica Group maintains ongoing communication
with employees through recognized trade union
structures and periodic consultation sessions, as
outlined in the Stakeholder Engagement Policy.
Measures to address negative impacts include
anonymous
reporting
mechanisms
and
clear
sanctions for any form of harassment, as detailed in
the Workplace Harassment Prevention Policy.
Electrica adheres to applicable legislation and
international standards, preventing all forms of
exploitation, forced labor, or child labor. It strictly
prohibits
ethical
violations,
including
abusive
practices, and the Whistleblowing Policy provides
explicit measures for preventing and sanctioning any
form of labor exploitation.
The Occupational Health and Safety Policy establishes
clear procedures for risk management, accident
reporting, and continuous improvement of working
conditions. The Whistleblowing Policy also includes
provisions for reporting workplace health and safety
violations, allowing anonymous notifications of
deficiencies and risks.
Electrica is committed to fostering an inclusive
working environment where equality of treatment
and opportunities is a core principle. The Collective
Labor Agreement promotes equal opportunities and
prohibits discrimination in employment relationships,
regardless of gender, sexual orientation, social
background,
or
family
responsibilities.
During
recruitment
and
hiring,
Electrica
applies
fair
treatment policies and is dedicated to eliminating
gender pay disparities for equal or equivalent work.
Promoting a fair, safe, and inclusive working
environment is a core principle of Electrica Group’s
organizational strategy. The company ensures that all
recruitment, selection, promotion, and professional
development processes are conducted without
discrimination, guaranteeing equal opportunities
for all employees, including those with disabilities.
By implementing clear measures related to social
protection, working conditions, and equitable salaries,
Electrica reaffirms its commitment to upholding
employees’ fundamental rights and supporting
inclusion across all levels of the organization.
Electrica
promotes
diversity
and
inclusion
by
embedding non-discrimination and equal opportunity
principles into all internal regulations governing the
rights and obligations of the workforce. The Group
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prohibits discrimination based on race, gender, age,
disability, religion, or other protected characteristics,
adhering to both European and national regulations.
Specific measures are adopted to support vulnerable
groups through integration and assistance programs,
as regulated by the Stakeholder Engagement Policy.
Discrimination prevention and equality promotion
are further supported by reporting mechanisms
under the Whistleblowing Policy, enabling employees
to anonymously report any form of unfair treatment.
The Group has not yet implemented specific measures
to understand the perspectives of particularly
vulnerable or marginalized workforce members, such
as women, migrants, or individuals with disabilities.
However, Electrica plans to develop and implement a
general collaborative process in the future, including
dedicated mechanisms for gathering feedback from
these employee groups, ensuring a more inclusive
and diversity-oriented approach.
During the reporting period, there was no specific
information
available
on
whether
Electrica’s
policies explicitly address the following grounds for
discrimination: racial and ethnic origin, color, sex,
sexual orientation, gender identity, disability, age,
religion, political opinion, national or social origin, or
other forms of discrimination covered by Union and
national regulations.
The implementation of these policies is supported
by periodic training sessions, internal audits, and
reporting procedures to prevent and correct any
deviations from ethical and legal principles.
S1-2 Processes for engaging with own workforce and workers’
representatives
about
impactsr
Electrica Group implements policies to ensure
efficient and ongoing collaboration with its workforce
for managing both real and potential impacts on
employees. Through Occupational Health and Safety
Committees (OHSC), union dialogue, and direct
consultations, employees are involved in decisions
that influence their working conditions. Reporting
mechanisms, such as the Integrity Whistleblower
system, offer employees the possibility to report
issues in a safe and confidential environment.
Collaboration takes place both directly, through
individual consultations and periodic questionnaires,
and through union representatives and social
dialogue structures. The OHSC and unions facilitate
communication
between
employees
and
the
employer,
ensuring
an
efficient
exchange
of
information. Additionally, to obtain a comprehensive
perspective in the double materiality analysis
process, Electrica Group initiated an employee
consultation process. Their feedback and opinions
were integrated into the process of establishing
material topics, ensuring a holistic and inclusive
approach in identifying current and potential impacts
and risks on its workforce.
The responsibility for ensuring effective collaboration
with the workforce lies with the Human Resources
Department, in coordination with the Ethics and
Compliance
Department.
These
departments
manage
social
dialogue
processes,
monitor
the
implementation
of
measures,
and
report
collaboration outcomes to the management.
Within
Electrica
Group,
employee
rights
are
safeguarded by the Collective Labor Agreement
(CLA), which regulates essential aspects such as
working conditions, remuneration, social protection,
and engagement with worker representatives.
The effectiveness of collaboration is monitored
through:
• Periodic surveys to assess employee satisfaction
with communication processes;
• Analysis of complaints and reports received
through dedicated channels, such as the Integrity
Whistleblower; and
• Monitoring the results of union negotiations and
the impact of implemented measures.
Electrica
Group
will
continue
fostering
social
dialogue and consulting employees through existing
structures, such as the Occupational Health and
Safety Committee (OHSC) and direct consultations.
Additionally, the Group aims to enhance these
mechanisms by improving feedback processes.
Employee participation and consultation in the
development, implementation, and evaluation of the
occupational health and safety management system
are conducted through direct consultations and
the use of a specific questionnaire structured into
four categories: Health and Safety, Representation
at OHSC level, Ergonomics, and Common Area
Arrangements.
Employee participation and consultation in the
process of developing, implementing, and evaluating
the occupational health and safety management
system are carried out through two main methods:
• Through the Occupational Health and Safety
Committees (OHSC), established equally at the
level of each company within the Electrica Group,
which brings together the representatives of
employees with specific responsibilities in the field
of worker’s health and safety, on the one hand,
and the employer, through its legal representative
and other designated representatives, in equal
number with the employees’ representatives
and the occupational health doctor, on the other
hand.
• Direct employee consultations conducted at
least once a year using a specific questionnaire,
structured into four topics: Health and Safety,
representation at the OHSC level, Ergonomics,
and Common Area Arrangements.
These methods ensure active and continuous
involvement
of
employees
in
the
process
of
improving
working
conditions,
thus
facilitating
effective collaboration between all parties involved to
maintain a safe and healthy work environment. Based
on the results of the consultation with employees,
OHSC members propose and implement appropriate
measures to meet the employees’ needs.
During OHSC meetings, risk assessments, prevention
and protection plans, reports on health status of
personnel, and annual reports on ensuring worker’s
health and safety are presented and submitted for
consultation. Additionally, a series of specific issues
related to the company’s health and safety are
discussed, all company employees are represented
at these committees, thus ensuring a unified voice
and active participation in the process of improving
working conditions.
In addition to the Occupational Health and Safety
Committee (OHSC) and direct consultations, there
is also regulated framework for dialogue with social
partners (trade unions – which are not included in the
OHSC’s dialogue and consultation processes) and
which includes, at a significant level, aspects from
the Health and Safety, Representation at OHSC level,
Ergonomics and Common Area Arrangements. In the
OHSC, „workers’ representatives” are present, and
the law establishes the method of their designation,
respectively according to those established by the
Collective Labor Agreement (through negotiation with
the trade unions), Internal Regulations (established
by the employer, but mandatory after consultation
with the trade unions) and the Organization and
Functioning Regulation (OFR), determined solely
by the employer. Following the order prescribed by
law, these topics are prioritized for discussion within
the social dialogue framework with trade unions
(CLA) and subsequently developed within the OHSC.
Undoubtedly, dialogue also takes place in the OHSC
and may then be included or not in discussions with
the social partners, depending on the case.
In
practice,
as
per
legal
provisions,
worker
representatives are appointed through trade unions,
which are an integral part of the social dialogue
process. At EFSA level, there are several channels and
methods through which employees can express their
concerns and needs. The company’s approach to
these issues is objective, addressing both internally
reported matters and those raised through third
parties.
Employees can address any concerns or questions
directly to the Human Resources Department,
either through scheduled meetings or informal
communications, and these reports are treated
confidentially.
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S1-3 Processes to remediate negative impacts and channels for own
workforce to raise concerns
Electrica Group has implemented a system for
managing negative impacts on employees, through
which it evaluates and implements corrective
measures when necessary. All complaints are
analyzed, and corrective measures may include
disciplinary sanctions, improvement of internal
policies, or compensation for affected employees.
The effectiveness of these measures is evaluated
through periodic feedback, analysis of recurring
complaints, and reporting to management.
Employees across all subsidiaries of Electrica Group
have access to various channels for expressing
concerns, including:
• The Integrity Whistleblower, which provides full
protection for those reporting irregularities, in
accordance with the Policy on Deviations.
• Dedicated email addresses, such as siguranta@
electricafurnizare.ro for EFSA employees to report
safety-related issues.
• Union representatives who can escalate issues to
management.
• Internal
employee
platforms
such
as
engagehub.ro for ELSA, facilitating socialization,
communication, and access to information.
• Periodic consultations, including opinion surveys
and social dialogue sessions. For example, in
the case of DEER, annual surveys are conducted
both by organizational entities focused on
communication and by other structures active
in the field of health and safety, which include
psychologists.
Electrica Group conducts awareness campaigns
to ensure employees are familiar with these
mechanisms and can use them safely. The procedures
are published on the intranet and discussed during
training sessions.
The Group evaluates employee trust in these
mechanisms
through
internal
surveys
and
consultations
with
trade
unions.
The
Integrity
Whistleblower Policy and the Code of Ethics include
safeguards against retaliation, protecting employees
who report issues.
Electrica Group will continue to improve reporting
mechanisms, focusing on increasing accessibility
and digitizing processes.
S1-4 Acting on material impacts on own workforce, and approaches to
managing material risks and pursuing material opportunities related to
own workforce, and effectiveness of those actions
The Group implements strategic measures to manage
both negative and positive material impacts and
to proactively address the risks and opportunities
associated with its workforce. The details regarding
the actions adopted or planned in this regard are
outlined below.
Safe Workplaces and Employee Health
Electrica Group has maintained the Integrated
Occupational
Health
and
Safety
Management
System, certified under ISO 45001:2018, which ensures
the protection of all employees, regardless of their
hierarchical level or type of activity performed.
As part of this system, employees are trained in
specific hazards related to their activities and receive
appropriate protective equipment. Risk assessments
are updated periodically, and prevention measures
are integrated into the company’s action plans.
An important measure for ensuring employee safety
is the application of the „STOP WORK” principle, which
allows all workers to immediately stop their activities
if they identify a danger, without fear of sanctions.
Additionally, to mitigate the impact of professional
stress, Electrica provides health and wellbeing
programs, private medical subscriptions for all
employees, vaccination campaigns, and initiatives
aimed at preventing professional risks.
Social Dialogue and Reporting Mechanisms for
Employee Concerns
Electrica Group has maintained channels through
which
employees
can
express
concerns
and
report potential issues, ensuring a transparent and
ongoing social dialogue. Regular negotiations with
trade unions are conducted, and the Collective
Labor Agreement regulates employee rights and
obligations, ensuring fair working conditions.
The Integrity Whistleblower tool allows any employee
to report issues related to business conduct or
violations of workplace rights. It remained active
throughout 2024, with reports analyzed by specialized
departments,
and
confidentiality
safeguarded
through collaboration with an independent operator.
The annual satisfaction survey system enables
the Group to assess employees’ trust in these
mechanisms and implement corrective measures
to improve them. Electrica Group conducts annual
employee satisfaction surveys to identify areas
needing improvement and adjust management
strategies accordingly. For instance, in 2024, DEER
organized a survey with a participation rate of 15%
among employees. Results were sent to division
leadership for appropriate actions.
Similarly, within EFSA, the Brand and Communication
Department, in collaboration with the Department of
Analysis, Markets and Experience according to the SMI
management program, conducts an annual internal
survey to evaluate employee satisfaction regarding
internal communication processes. Starting with
2024, the survey also included an ESG component. In
2024, the participation rate for this survey was 32.4%.
Employee Skill Development
The professional development of employees is a
key pillar of Electrica Group’s strategy, considering
the need to adapt to technological changes and
the requirements of the energy industry. In 2024, the
Group implemented specialized professional training
programs, covering both technical skills and digital
and leadership competencies.
At EFSA, 30% of employees participated in digital skill
development courses, reflecting the accelerated
transition to digitalization and the necessity of
becoming familiar with new technologies used in the
company’s operations.
At
DEER,
the
training
programs
focused
on
certifications and accreditations specific to the
energy industry, essential for conducting activities
safely and in compliance with national regulations.
Employees attended training sessions to obtain ANRE
certifications, PRAM, and SCADA accreditations.
To attract and train the future generations of energy
specialists, DEER continued the dual education
program throughout 2024, in collaboration with
specialized technical schools in Romania. This
program offers young people the opportunity to
learn in a system that combines theory and practice,
contributing to the formation of a new generation of
energy
professionals.
EFSA, on the other hand, conducted an internship
program in 2024, aimed at students and graduates
aspiring to a career in the energy field. The program
was organized in partnership with technical and
economic universities, providing participants with
the chance to work alongside industry professionals
and gain practical experience.
A mentorship program was also implemented at
EFSA level for employees in the early stages of their
careers or those undergoing professional transitions.
The program was coordinated by experienced
company leaders who provided guidance and
support for participants’ professional development.
Additionally, Electrica Group conducted a 360°
evaluation
program
targeting
management
employees
to
improve
leadership
skills
and
strategic decision-making. This program, carried
out in partnership with organizational development
experts, collected feedback from multiple sources —
superiors, peers, and subordinates—for an objective
performance
evaluation
and
identification
of
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development opportunities.
Further details regarding the number of training
hours are provided in Section 1-13 of this chapter.
Diversity, Inclusion, and Respect for Human
Rights
Through
clear
mechanisms
for
preventing
discrimination and harassment, the Group ensures
a safe and inclusive working environment for
all employees, guaranteeing fair treatment for
everyone, regardless of gender, ethnic origin, religion,
disabilities, or other diversity criteria. To support
these principles, the Group continued, throughout
2024, the implementation of the provisions of the
Policy on Preventing, Combating and Sanctioning all
forms of Harassment at Work and made the Integrity
Whistleblower mechanism available to all interested
parties, including employees.
In 2024, Electrica allocated financial and operational
resources to implement strategic initiatives in
occupational health and safety, employee skill
development, diversity and inclusion, and social
dialogue improvement. While the exact amount of
expenses is not currently available, investments
focused on supporting planned actions in these
areas, ensuring the necessary resources for training
programs,
preventive
measures,
infrastructure
modernization, and maintaining employee benefits.
Funding for these measures was integrated into the
annual budgets of the companies of the Group.
For the strategic period 2025-2030, Electrica Group
has committed to implementing necessary actions
to achieve the objectives outlined in the Sustainability
Strategy 2025-2030, published and approved at the
end of 2024.
According to this strategy, Electrica Group will
continue to develop and expand training programs,
improve working conditions, support employee well-
being, and implement initiatives to enhance diversity
and inclusion.
Electrica Group periodically monitors and evaluates
the effectiveness of its actions through various
complementary tools and methods, such as periodic
internal audits of the Occupational Health and Safety
Management System, analysis of participation rates
and results of professional training programs, annual
employee satisfaction surveys and analysis of their
results, evaluation of the usage and effectiveness
of reporting channels (e.g., Integrity Whistleblower).
The feedback obtained is used for the continuous
improvement
of
existing
initiatives
and
the
adjustment of the overall strategy for managing
impacts, risks, and opportunities associated with its
workforce.
S1-5 Targets related to managing material negative impacts, advancing
positive impacts, and managing material risks and opportunities
Electrica Group remains committed to employee
safety,
professional
development,
and
social
inclusion by implementing concrete measures and
constantly monitoring progress. The 2024-2030
Strategy was implemented in 2024, and the lessons
learned from its implementation contribute to the
continuous improvement of internal policies.
Occupational Health and Safety
Electrica Group is dedicated to improving employee
health and safety by implementing measures aimed
at reducing risks associated with their activities.
The „Zero Accidents” target remains a top priority,
emphasizing continuous training, incident reporting,
and proactive prevention measures. In 2024, the
„STOP WORK” program was implemented, granting
employees the right to stop work in hazardous
conditions without repercussions. Additionally, to
ensure a safe working environment, Electrica set a
goal of maintaining ISO certification for occupational
health and safety, which was upheld throughout
2024.
Ensuring a Skilled Workforce
Increasing Salary Levels According to Market
Trends and Alignment with Higher Industry
Standards
(2024-2030)
This target aims to maintain Electrica Group’s
attractiveness as an employer and reduce employee
turnover through a competitive salary system.
The adjustments are aligned with inflation and
labor market demands. In 2024, salary adjustment
processes were discussed with social partners and
monitored for effectiveness.
Expanding the Dual Education System Training
Program (2024-2030)
The dual education program was implemented in
2024 to support the development of skills needed in
the energy sector. This initiative is designed to train
the next generation of specialists and reduce the
shortage of qualified workforce.
Diversity and Inclusion
Increasing
Female
Representation
in
the
Organization
(2024-2030)
Electrica Group aims to improve gender balance
through active measures focused on recruiting
and promoting women to leadership positions. This
target is monitored annually, and details regarding
gender distribution can be found in Section S1-6 of
this chapter.
Promoting
an
Inclusive
Workplace
and
Eliminating
Harassment
(2024-2030)
This
target
was
upheld
throughout
2024
by
implementing the Policy on Preventing, Combating
and Sanctioning all forms of Harassment at Work, as
well as the Integrity Whistleblower mechanism.
Employee Engagement
Annual Employee Satisfaction Survey (2024-
2030)
The satisfaction survey helps identify employee
needs and adapt internal policies to improve the
organizational climate. Results from the 2024 survey
are discussed in the previous section addressing
implemented
actions.
Social dialogue
Development
of
Modern
Communication
Channels and Feedback Collection (2024-2030)
Electrica Group invests in the modernization of
internal
communication
platforms
to
facilitate
dialogue between employees and management.
For instance, in 2024, the internal communication
platform engagehub.ro was launched, strengthening
the company’s organizational culture.
Moreover, at ELSA level, efforts were made to foster
a
feedback-driven
culture
by
introducing
the
concept of 360º feedback and implementing an
evaluation tool via software used for comprehensive
assessments of leadership abilities, soft skills, and
behaviors aligned with company values.
Electrica
Group
sets
measurable
and
time-
bound targets for managing negative impacts,
promoting positive impacts, and addressing risks
and opportunities related to its workforce through
a process that involves employees and their
representatives.
Hence, in addition to annual satisfaction surveys
and consulting employee representatives (such as
trade unions) on major changes—like adjustments
to wage policies and working conditions—employees
are directly involved in the double materiality
assessment process. This assessment helps identify
material impacts, risks, and opportunities concerning
the workforce. The results of the double materiality
assessment are integrated into the development of
the Group’s ESG Strategy, which includes workforce-
related objectives and is embedded within the overall
business strategy.
Electrica Group reaffirms its commitment to the
continuous improvement of the work environment by
constantly evaluating and adjusting implemented
measures, thereby ensuring the achievement of the
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objectives set and fostering a safe, equitable, and
sustainable professional framework. At the end of
2024, a new Sustainability Strategy (2025-2030) was
approved, and its targets will be detailed in the 2025
Sustainability Statement.
S1-6 Characteristics of the undertaking’s employees
The total number of employees is reported based
on data exported from Electrica Group’s information
systems, recorded as of December 31, 2024. This
reporting
excludes
suspended
employment
contracts, except in the case of EFSA, where such
contracts
were
included.
Regarding
renewable
energy production subsidiaries in 2024, SWE had
three part-time employees (also employed by ELSA),
while NTE, FPE, and CPP had no employees.
Under Article 12 of the Romanian Labor Code,
permanent employees refer to individuals with
indefinite-term employment contracts. This type of
contract provides stability and grants employees
all rights stipulated by labor legislation, including
protection against unjustified dismissal, paid leave,
and access to social benefits.
As stated in Article 83 of the Romanian Labor Code,
temporary employees are those hired under fixed-
term
employment
contracts.
These
contracts
are applicable under specific conditions, such as
replacing a temporarily absent employee, carrying
out seasonal activities, or executing a project with a
fixed deadline. Such contracts can have a maximum
duration of 36 months and may be extended up to
two times before transitioning into indefinite-term
contracts.
Non-guaranteed hours employees are not defined
within the Romanian Labor Code, making this
category not applicable in Romania.
Table 2: The total number of employees, ex
pressed as the number of persons as of 31.12.2024,
broken down by gender; the number of tempo
rary employees, broken down by gender; and
the number of employees with non-guaranteed
work arrangements, broken down by gender.
ELSA
2024
The number of permanent employees
Female
51
Male
37
TOTAL
88
The number of temporary employees
Female
0
Male
0
TOTAL
0
The number of non-guaranteed hours employees
Female
0
Male
0
TOTAL
0
Total number of employees
Female
51
Male
37
TOTAL
88
EFSA
2024
The number of permanent employees
Female
525
Male
256
TOTAL
781
The number of temporary employees
Female
1
Male
5
TOTAL
6
The number of non-guaranteed hours employees
Female
0
Male
0
TOTAL
0
Total number of employees
Female
526
Male
261
TOTAL
787
DEER
2024
The number of permanent employees
Female
1,141
Male
5,206
TOTAL
6,347
The number of temporary employees
Female
19
Male
107
TOTAL
126
The number of non-guaranteed hours employees
Female
0
Male
0
TOTAL
0
Total number of employees
Female
1,160
Male
5,313
TOTAL
6,473
SERV
2024
The number of permanent employees
Female
132
Male
303
TOTAL
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ELECTRICA 2024 ANNUAL REPORT
The number of temporary employees
Female
0
Male
11
TOTAL
11
The number of non-guaranteed hours employees
Female
0
Male
0
TOTAL
0
Total number of employees
Female
131
Male
314
TOTAL
446
TOTAL ELECTRICA GROUP
2024
The number of permanent employees
Female
1,849
Male
5,802
TOTAL
7,651
The number of temporary employees
Female
20
Male
123
TOTAL
143
The number of non-guaranteed hours employees
Female
0
Male
0
TOTAL
0
Total number of employees
Female
1,869
Male
5,925
TOTAL
7,794
Note 1: According to current legislation, gender division can only be made between male and female, as other categories are not officially
recognized.
Note 2: The total number of ELSA employees includes three employees from the SWE subsidiary, of whom two are male and one is a female,
all with permanent part-time employment contracts.
Note 3: The number of employees reported for the EFSA subsidiary as of 31.12.2024 includes both active and suspended employment
contracts.
Table 3: Employees who have left the company during the reporting period and the rate of employee
turnover
2024
ELSA
The number of employees who have left the
company during the reporting period
10
The rate of employee turnover
13.50
EFSA
The number of employees who have left the
company during the reporting period
27
The rate of employee turnover
3.73
DEER
The number of employees who have left the
company during the reporting period
364
The rate of employee turnover
5.56
SERV
The number of employees who have left the
company during the reporting period
51
The rate of employee turnover
11.11
TOTAL ELECTRICA GROUP
The number of employees who have left the
company during the reporting period
452
The rate of employee turnover
8.84
For the presentation of data, the following methodology was used: at the end of the reporting period, as the
number of persons as of 31.12.2024.
Regarding departures from the company, the total includes both voluntary and involuntary departures. The
proportion was calculated by dividing the number of employees who left the company by the total number of
employees at the end of the reporting period.
Table 4: Information about employees by contract type, gender and subsidiary
ELSA
2024
The number of permanent employees
Female
51
Male
37
TOTAL
88
The number of temporary employees
Female
0
Male
0
TOTAL
0
The number of non-guaranteed hours employees
Female
0
Male
0
TOTAL
0
The total number of employees
Female
51
Male
37
TOTAL
88
434
435
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ELECTRICA 2024 ANNUAL REPORT
EFSA
2024
The number of permanent employees
Female
525
Male
256
TOTAL
781
The number of temporary employees
Female
1
Male
5
TOTAL
6
The number of non-guaranteed hours employees
Female
0
Male
0
TOTAL
0
The total number of employees
Female
526
Male
261
TOTAL
787
DEER
2024
The number of permanent employees
Female
1,141
Male
5,206
TOTAL
6,347
The number of temporary employees
Female
19
Male
107
TOTAL
126
The number of non-guaranteed hours employees
Female
0
Male
0
TOTAL
0
The total number of employees
Female
1,160
Male
5,313
TOTAL
6,473
SERV
2024
The number of permanent employees
Female
132
Male
303
TOTAL
435
The number of temporary employees
Female
0
Male
11
TOTAL
11
The number of non-guaranteed hours employees
Female
0
Male
0
TOTAL
0
The total number of employees
Female
132
Male
314
TOTAL
446
TOTAL ELECTRICA GROUP
2024
The total number of employees
Female
1,869
Male
5,925
TOTAL
7,794
Table 5: information on full-time and part-time employees, broken down by gender
ELSA
2024
The number of full-time employees
Female
48
Male
37
TOTAL
85
The number of part-time employees
Female
3
Male
0
TOTAL
3
EFSA
2024
The number of full-time employees
Female
525
Male
258
TOTAL
783
The number of part-time employees
Female
1
Male
3
TOTAL
787
DEER
2024
The number of full-time employees
Female
1,157
Male
5,307
TOTAL
6,464
The number of part-time employees
Female
3
Male
6
TOTAL
9
SERV
2024
The number of full-time employees
Female
127
Male
304
TOTAL
431
The number of part-time employees
Female
5
Male
10
TOTAL
15
436
437
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Total Grup Electrica
2024
The number of full-time employees
Female
1,857
Male
5,906
TOTAL
7,763
The number of part-time employees
Female
12
Male
19
TOTAL
31
S1-7 Characteristics of non-employees in the undertaking’s own
workforce
Electrica Group’s workforce doesn’t include non-employees.
S1-8 Collective bargaining coverage and social dialogue
Table 6: The percentage of employees covered by collective bargaining agreements in 2024
The total number of employees covered by collective
bargaining agreements
ELECTRICA GROUP
7.763
99,6%
ELSA
84
95%
EFSA
768
98%
DEER
6,468
99.9%
SERV
443
99.3%
Note: The figures above do not include the mandate contracts of executive managers, who are not covered by the provisions of the
collective labor agreement. In the case of EFSA, suspended employment contracts as of 31.12.2024 were also excluded from the calculation.
S1-9 Diversity metrics
The distribution of employees by age groups is calculated by determining the number of employees in each
age category and expressing it as a proportion of the total number of employees. All values are reported
based on the total headcount at the end of the year.
For analyzing gender balance in Electrica Group’s leadership, the following management levels were
considered:
• Senior Management: Includes the first level of management below the Board of Directors, specifically
Executive Managers with mandate contracts who have decision-making authority over the company.
Gender balance is reported as the proportion of the underrepresented gender within this management
level.
• Middle Management: Includes the second level of management below the Board of Directors. In this
category as well, gender balance is reported as the proportion of the underrepresented gender among
employees in this segment.
Table 7: The gender distribution at senior management in 2024
ELSA
Gender distribution at senior management
The number of employees in senior management
by gender
Female
2
50%
Male
2
50%
TOTAL
4
100%
EFSA
Gender distribution at senior management
The number of employees in senior management
by gender
Female
9
28%
Male
23
72%
TOTAL
32
100%
DEER
Gender distribution at senior management
The number of employees in senior management
by gender
Female
2
40%
Male
3
60%
TOTAL
5
100%
SERV
Gender distribution at senior management
The number of employees in senior management
by gender
Female
13
30%
Male
30
70%
TOTAL
43
100%
Total Grup Electrica
Gender distribution at senior management
The number of employees in senior management
by gender
Female
26
31%
Male
58
69%
TOTAL
84
100%
Table 8: The age distribution among employees in 2024
Age distribution among employees
ELSA
The number of employees under 30 years old
4
5%
The number of employees between 30 and 50 years old
53
60%
438
439
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ELECTRICA 2024 ANNUAL REPORT
Age distribution among employees
The number of employees over 50 years old
31
35%
EFSA
The number of employees under 30 years old
32
4%
The number of employees between 30 and 50 years old
364
46%
The number of employees over 50 years old
391
50%
DEER
The number of employees under 30 years old
428
7%
The number of employees between 30 and 50 years old
2.631
41%
The number of employees over 50 years old
3.414
53%
SERV
The number of employees under 30 years old
19
4%
The number of employees between 30 and 50 years old
132
30%
The number of employees over 50 years old
295
66%
TOTAL ELECTRICA GROUP
The number of employees under 30 years old
483
6%
The number of employees between 30 and 50 years old
3.180
41%
The number of employees over 50 years old
4.131
53%
Note 1: The total number of employees at ELSA includes three employees from the SWE subsidiary, of whom two are men and one is a woman,
all aged over 50. All three are permanent employees at ELSA and have part-time contracts at SWE.
S1-11 Social protection
Electrica Group is implementing measures to ensure social protection of its employees, either through
participation in public social protection programs or through internal initiatives.
• Illness
All employees have access to national healthcare systems in compliance with Romanian legislation.
Employees are entitled to free or subsidized medical assistance and can access public health services for
treatments and consultations, with social contributions covered by the company.
• Unemployment
Unemployment risk protection is guaranteed for all employees of the Group through contributions to public
unemployment funds. From the moment of employment, all workers are registered in these systems, providing
financial support in case of job loss.
• Workplace injuries and acquired disabilities
In cases of workplace injuries or acquired disabilities, protection is ensured through contributions to national
social insurance systems. These systems provide financial coverage and rehabilitation support, in accordance
with national regulations.
• Parental leave
All employees are entitled to paid parental leave in accordance legislation. The Group adheres to national
regulations regarding the duration of this leave and supports employees who are in this stage of life through
measures that ensure job stability upon their return.
• Retirement
All employees are enrolled in public pension systems in the countries where the company operates. Employer
contributions guarantee long-term financial support for employees upon retirement.
All Electrica Group employees benefit from private medical subscriptions through a network of private
healthcare services, ensuring easy access to specialized consultations, tests, and other preventive health
services.
An important benefit provided by DEER is the employer’s full contribution to Pillar III Pensions for all employees
who opt in. This contribution is entirely covered by the company, with no salary deductions for the employee.
At SERV, employees have the option to join Pillar III Pensions through a salary deduction mechanism, benefiting
from a monthly contribution directed to a private pension fund.
At ELSA, employees can benefit from Pillar III Pension contributions provided they contribute monthly with an
amount at least equal to the employer’s contribution.
S1-13 Training and skills development metrics
Table 9: The number and percentage of employees who participated in regular performance and ca
reer development reviews in 2024
ELSA
Female
46
61%
Male
30
39%
TOTAL
76
100%
EFSA
Female
492
94%
Male
236
90%
TOTAL
728
93%
DEER
Female
102
18%
Male
458
82%
TOTAL
560
100%
SERV
Female
111
27%
Male
298
73%
TOTAL
409
100%
TOTAL ELECTRICA GROUP
Female
751
42%
Male
1.022
58%
TOTAL
1.773
100%
440
441
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ELECTRICA 2024 ANNUAL REPORT
ELECTRICA 2024 ANNUAL REPORT
ELSA
The number of performance reviews per employee
1
The number of reviews in proportion to the agreed number of
reviews by the management
100%
EFSA
The number of performance reviews per employee
1
The number of reviews in proportion to the agreed number of
reviews by the management
100%
DEER
The number of performance reviews per employee
2
The number of reviews in proportion to the agreed number of
reviews by the management
100%
SERV
The number of performance reviews per employee
1
The number of reviews in proportion to the agreed number of
reviews by the management
100%
Note 1: The total number of employees at ELSA includes three employees from the SWE subsidiary, all of whom have permanent employment
contracts at ELSA and part-time contracts at SWE. These three employees participated in one performance review in 2024.
Table 10: The average number of training hours per employee by gender
Total number of
training hours
Media
ELSA
Female
1,520
31
Male
1,126
32
TOTAL
2,646
31.5
EFSA
Female
29
6
Male
33
13
TOTAL
62
8
DEER
Female
30
0.02
Male
30
0.01
TOTAL
60
SERV
Female
41
0.31
Male
49
0.16
TOTAL
90
0.20
TOTAL ELECTRICA GROUP
Female
1,620
0.87
Male
1,238
0.21
TOTAL
2,858
0.37
Table 11: The number of employees per category in the reporting year
Senior management
ELSA
4
EFSA
6
DEER
5
SERV
3
Total Electrica Group
18
Middle management
ELSA
19
EFSA
129
DEER
344
SERV
40
Total Electrica Group
532
Operational staff
ELSA
65
EFSA
652
DEER
6,124
SERV
403
Total Electrica Group
7,244
TOTAL
ELSA
88
EFSA
787
DEER
6,473
SERV
446
Total Electrica Group
7,794
Table 12: The number and percentage of employees who participated in regular performance and
career development reviews, broken down per employee category
Senior management
ELSA
4
100%
EFSA
6
100%
DEER
5
100%
SERV
0
0%
Total Electrica Group
15
83%
Middle management
ELSA
19
100%
EFSA
125
97%
DEER
344
100%
SERV
38
95%
Total Electrica Group
526
99%
Operational Staff
ELSA
65
100%
EFSA
598
92%
DEER
206
3%
SERV
371
92%
Total Electrica Group
1,240
17%
TOTAL
ELSA
88
100%
EFSA
729
93%
DEER
555
9%
SERV
409
92%
Total Electrica Group
1,781
23%
442
443
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ELECTRICA 2024 ANNUAL REPORT
ELECTRICA 2024 ANNUAL REPORT
Table 13: The average number of training hours per employee, broken down by employee category
Senior management
ELSA
15
EFSA
39.5
DEER
30
SERV
37
Total Electrica Group
30
Middle management
ELSA
45.4
EFSA
31
DEER
30
SERV
15
Total Electrica Group
30
Operational Staff
ELSA
27.4
EFSA
29.5
DEER
130
SERV
8
Total Electrica Group
48.4
TOTAL
ELSA
29.2
EFSA
33.3
DEER
63.3
SERV
20
Total Electrica Group
36.4
S1-14 Health and safety metrics
Table 14: Information regarding health and safety (expressed in number of employees, where appli
cable)
ELSA
EFSA
DEER
SERV
Total
Electrica
Group
Number of employees who are covered by the health and
safety management system based on legal requirements
and/or recognized standards or guidelines
88
787
6,473
446
7,794
(a) The percentage of employees covered by the health
and safety management system
100%
100%
100%
100%
100%
(b) The number of fatalities as a result of work-related
injuries and work-related ill health
0
0
0
0
0
(b) The number of deaths resulting from work-related
accidents and the health conditions of other workers
(such as those in the value chain) who work on the
company's construction sites.
0
0
1
0
0
(c) The number of recordable work-related accidents
for the company’s workforce
0
1
10
1
12
ELSA
EFSA
DEER
SERV
Total
Electrica
Group
(c) The total number of hours worked by employees in
the company’s workforce
129,940
1,376,725
11,314,307
789,316
13,610,288
(c) The rate of recordable work-related accidents for
the company’s workforce
0
0.72
0.88
1.26
0.72
(d) The number of cases of recordable work-related ill
health cases recorded for the company’s workforce
0
0
0
0
0
(e) The number of days lost to work-related injuries
and fatalities from work-related accidents, work-
related ill health and fatalities from ill health
0
273
628
37
938
In October 2024, Electrica conducted a surveillance audit dedicated to the Integrated Management System
(Quality – Environment – Occupational Health and Safety – Information Security – Energy), in accordance
with the requirements of the reference standards:
• SR EN ISO 9001:2015 (Quality);
• SR EN ISO 14001:2015 (Environment);
• SR ISO 45001:2018 (Occupational Health and Safety);
• SR EN ISO/IEC 27001:2018 (Information Security);
• SR EN ISO 50001:2019 (Energy).
The audit was carried out by the external certification body SRAC Cert, affiliated with IQNet, and following the
evaluation, no major non-conformities were identified, only areas for improvement.
In 2024, SERV was also subjected to a surveillance audit for the Integrated Management System, implemented
according to the standards ISO 9001:2015, ISO 14001:2015, and ISO 45001:2018. The audit was conducted by
SRAC Cert, confirming the maintenance of compliance with applicable standards.
Also in 2024, DEER and EFSA underwent recertification audits for the Integrated Management System (Quality
– Environment – Occupational Health and Safety), in accordance with SR EN ISO 9001:2015, SR EN ISO 14001:2015,
and SR ISO 45001:2018. These audits were conducted by SRAC Cert, confirming the conformity of processes
and the maintenance of certifications.
S1-17 Incidents, complaints and severe human rights impacts
EL SA
IDuring the reporting period, ELSA did not register such incidents.
EFSA
During the reporting period, EFSA recorded three incidents of violations of internal ethics and business conduct
norms, which included acts of harassment, hostile behavior, as well as disruptions of the communication
process. These complaints were submitted on the Integrity Whistleblower platform and resolved in accordance
444
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with the relevant policy, without sanctions from regulatory authorities and additional financial losses.
EFSA managed these matters internally, ensuring compliance with the company’s values and principles. In
2024, there were no serious incidents reported involving violations of human rights, forced labor, human
trafficking, or child labor, underscoring the company’s commitment to providing a safe and respectful
workplace for all its employees.
DEER
During the reporting period, DEER experienced a discrimination incident. The incident involved a breach of
ethical and business conduct norms, deviations from the company’s values and principles, as well as a
violation of the Policy on Preventing, Combating and Sanctioning all forms of Harassment at Work. The reported
incident was related to acts of harassment which, following the investigation report, were not confirmed.
As part of the remediation plan, preventive and corrective measures were proposed, approved, and
implemented. These included training DEER employees on the provisions of the Code of Ethics and Business
Conduct and the Policy on Preventing, Combatting and Sanctioning all forms of Harassment at Work.
Additionally, no complaints were filed through the available channels for raising concerns during the reporting
period within DEER.
SERV
At SERV, a harassment complaint was registered and definitively resolved definitively, being favorably
accepted for the complainant.
ESRS S4 Consumers and end-users
E SRS 2 SBM-3 Material impacts, risks and opportunities and their
interaction with strategy and business model
At the Electrica Group level, the risk management
process, designed to facilitate the achievement of
objectives and activities under conditions of cost-
efficiency, operational efficiency, and effectiveness,
is regulated and integrated into group management
and adapted to its business processes. The risk
management policy aims to implement the principles
defined at the organizational level by the SR ISO
31000:2010 Risk Management Standards and ISO/IEC
27001 Information Technology; Security Techniques;
and Information Security Management Systems.
The Audit and Risk Committee of ELSA’s Board
of Directors is the highest level of governance
body charged with reviewing the effectiveness of
the organization’s risk management processes.
It oversees risk management at all levels of the
organization and is responsible for sustainability
issues and ESG reporting obligations, as presented in
chapter ESRS 2 of this report.
Electrica conducts its activities with both direct
and indirect impacts on consumers and end-users,
through the products and services it offers, as well
as through its business relationships. The company’s
strategy and business model are aligned with the
goal of minimizing risks and negative impacts
on consumers and end-users, while maximizing
opportunities to enhance customer experience and
service accessibility.
The impacts, risks, and opportunities associated with
end consumers are assessed within the framework of
double materiality assessment, which also includes
collecting feedback through surveys.
In the double materiality assessment process, the
Electrica Group evaluated the impacts, risks, and
opportunities related to customers and end-users,
concluding that these concern access to quality
information, access to products and services, and
responsible marketing practices.
Managing customer data privacy was identified
as a major potential risk in the double materiality
assessment. The loss of data or its unauthorized
disclosure
could
have
significant
negative
consequences, including loss of customer trust,
financial penalties, and damage to the organization’s
reputation. This risk is managed through the Personal
Data Processing Policy.
Regarding end-users and consumers, Electrica’s 2030
Strategy supports the strengthening of cybersecurity
by implementing an integrated strategy to reduce
cyber risks, protect critical infrastructure, and secure
customer data through the adoption of advanced
technologies
such
as
incident
detection
and
response solutions, data encryption, and continuous
monitoring.
Electrica uses a variety of communication tools to
maintain a constant relationship with consumers and
end-users. These channels are public and include
digital applications, dedicated phone lines, email
addresses, as well as specific forms for submitting
complaints and reports. Additionally, consumers
and end-users can express their concerns or issues
through
the
dedicated
whistleblower
section,
available on all web pages of the parent company,
ELSA, as well as on the websites of the subsidiaries.
For DEER, the Interactive Map, available on the
company’s website, provides up-to-date information
about power outages. Additionally, the Chat Volt
application offers quick responses to users’ inquiries,
contributing to improving their experience and
increasing consumer satisfaction.
For EFSA, the MyElectrica application allows customers
to quickly access and manage information about
contracts, invoices, and consumption, ensuring
greater
efficiency
and
convenience
in
their
relationship with the electricity supplier.
446
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The Electrica Group acknowledges the current and potential impacts of its operations on stakeholders,
including end-users, contractual partners, job applicants, website and facilities visitors, shareholders,
authorities, and other relevant entities.
In the double materiality assessment, Electrica considered the following aspects:
a) The impact of products and services on consumers – Electrica does not produce or sell products
that pose inherent risks to human health or that may contribute to the development of chronic diseases.
Instead, the Group provides electricity, natural gas, and related services, strictly adhering to safety
standards and applicable regulations, thus ensuring a minimal impact on consumers.
b) The impact of consumer interaction with the company – Electrica manages sensitive data and
information of consumers and end-users, and their protection is a strategic priority. The Group implements
strict measures to ensure confidentiality and safeguard personal data, aligning with the best practices
and regulations in the field.
The Electrica Group constantly analyzes significant risks and opportunities to adapt its strategy and business
model to meet consumer needs. This approach supports customer satisfaction and the overall long-term
performance of the Electrica Group.
The table below presents the material impacts, risks, and opportunities related to consumers and end-users
identified through the double materiality assessment at the Group level.
Table 15: Material impacts, risks and opportunities related to consumers and end-users
Material sub-
sub-topic
Location
IRO
Description
Actual/
potential
Time
horizon
Consumers
and end-users
Own
operations and
downstream
Positive
Impact
(+) We ensure the safety and reliability of
services by implementing strict policies
for managing the impact of products and
services on consumers, strategies focusing
on increasing customer satisfaction,
and efficient handling of requests and
complaints through multiple channels,
along with periodic checks of installation
marking ensuring the safety and reliability
of the services provided.
Potential
Short-term
Consumers
and end-users
Own
operations and
downstream
Negative
Impact
(-)The Group applies strict measures to
protect customer data in accordance with
GDPR, using secure systems, access control
policies, and mechanisms for managing
emergencies. Although the risk of security
breaches exists, the impact is manageable
through the implemented strategies.
Potential
Short-term
Material sub-
sub-topic
Location
IRO
Description
Actual/
potential
Time
horizon
Consumers
and end-users
Own operations
(EFSA) and
downstream
Positive
Impact
(+) Improving customer satisfaction and
loyalty by ensuring easy and equitable
access to our products and services.
Expanding the customer base by entering
untapped markets and attracting new
consumer segments. Strengthening the
company’s reputation as a responsible
supplier committed to accessibility for all
customers. Contributing to the economic
and social development of communities
by ensuring access to energy and essential
services.
Actual
Short-term
Access
to quality
information
Own operations
(EFSA) and
downstream
Positive
Impact
(+) Facilitating access to accurate, timely,
and relevant information for consumers
and end-users through strategies focused
on increasing customer satisfaction
and efficiently managing requests and
complaints ensures transparency and
accessibility of information. Periodic checks
of the installation markings contribute to
the safety and reliability of the services
provided. These measures strengthen
consumer trust and promote a responsible
and sustainable business environment.
Actual
Short-term
Own
operations and
downstream
Positive
Impact
(+) Facilitating access to accurate, timely,
and relevant information for consumers
and end-users through strategies focused
on increasing customer satisfaction
and efficiently managing requests and
complaints ensures transparency and
accessibility of information. Periodic checks
of the installation markings contribute to
the safety and reliability of the services
provided. These measures strengthen
consumer trust and promote a responsible
and sustainable business environment.
Actual
Short-term
Access to
products and
services
Own
operations
and
downstream
Risk
The volatility of prices in energy and
gas markets can affect revenue
predictability and financial stability.
Potential
Short,
medium
and long-
term
Within EFSA, consumers and end-users represent a key stakeholder category. The company pays special
attention to the types of consumers who may be significantly affected, including:
• Vulnerable consumers, such as those with low incomes, seniors, people with disabilities, children, or
individuals living in disadvantaged areas. EFSA tailors its products and services to make them more
accessible and relevant for these groups.
• Communities that may be impacted by the company’s operations. In this regard, EFSA constantly
evaluates opportunities in the field of renewable energy production, which could lead to the economic
and social development of communities in the future.
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The other subsidiaries of the Electrica Group apply
the same standards, and protection measures
uniformly to all consumers and end-users, without
distinguishing between specific groups, thus ensuring
fair and non-discriminatory treatment.
No specific categories of consumers or end-users
have been identified as being at greater risk of harm.
In the double materiality assessment, the positive
and negative impacts on consumers and end-users
were assessed on the short, medium, and long-term.
This evaluation contributed to identifying associated
risks and opportunities.
Consumers and end-users were consulted in this
process, and the information obtained formed the
basis and the information obtained formed the basis
both for this Sustainability Statement and for the
update of the consolidated sustainability strategy,
approved at the end of 2024.
The identified risks and opportunities are associated
with the following material sub-themes:
• Access to quality information;
• Confidentiality;
• Access to products and services for both EFSA’s
consumers and end-users, as well as affected
communities;
• Responsible marketing practices.
In the reporting year, Electrica did not register any
incidents related to confidentiality, therefore the
impact was considered potential and negative.
Impact, risk and opportunity management
S4-1 Policies related to consumers and end-users
The Electrica Group manages the impacts generated
by its products and services on consumers and end-
users, prioritizing the identification and addressing of
relevant risks and opportunities. Through its policies,
the Group ensures fair, responsible, and transparent
relationships with all consumers, respecting their
rights and promoting sustainable business practices.
Electrica integrates into its operational strategies
all
local
legislative
requirements,
as
well
as
internationally recognized standards that support
consumer protection and the development of ethical
business relationships (such as the General Data
Protection Regulation - GDPR).
The Electrica Group’s activities strictly comply
with national legal legislation and are based on
principles that enforce the respect of human rights
for its employees, customers and product users.
Electrica adheres to the UN Guiding Principles on
Business and Human Rights, the ILO Declaration
on Fundamental Principles and Rights at Work, the
Universal Declaration of Human Rights, and the OECD
Guidelines for Multinational Enterprises, ensuring the
respect of human rights and promoting responsible
practices in its relationship with consumers, even
though there is no specific human rights policy for
customers and end-users at the Group level.
Furthermore, the Electrica Group is committed to
respecting national and international legal principles
and requirements regarding human rights, which
include, among others, the following conventions:
• Convention No. 29/1930 on Forced Labour;
• Convention
No.
87/1948
on
Freedom
of
Association;
• Convention No. 98/1949 on the Right to Organize
and Collective Bargaining;
• Convention No. 100/1951 on Equal Remuneration;
• Convention No. 105/1957 on the Abolition of Forced
Labour;
• Convention
No.
111/1958
on
Discrimination
(Employment and Occupation);
• Convention No. 138/1973 on Minimum Age;
• Convention No. 182/1999 on the Prohibition and
Immediate Action for the Elimination of the Worst
Forms of Child Labour.
In the reporting year analyzed, the Electrica Group
did not identify any cases of non-compliance with
the UN Guiding Principles on Business and Human
Rights, the ILO Declaration on Fundamental Principles
and Rights at Work, or the OECD Guidelines for
Multinational Enterprises involving consumers and/
or end-users, either in its own operations or within
its value chain. The Group maintains its commitment
to respecting these international principles and
continues to monitor the impact of its activities on
communities through existing dialogue and reporting
mechanisms.
Furthermore, to manage risks, opportunities, and
impacts on consumers and end-users, the Electrica
Group has implemented the following policies, which
are also applicable to its subsidiaries:
• The Group’s Code of Ethics and Business
Conduct
This serves as the foundation for transparent and
fair relationships with consumers and end-users,
promoting respect for their rights to equality and
diversity, and prohibiting any form of discrimination.
The Code supports accurate customer information,
ensures data confidentiality, and guarantees the
provision of quality services. The Code does not
target specific groups of consumers or end users but
reflects the company’s general commitment towards
all consumers and end users.
Regarding
human
rights,
the
Electrica
Group
promotes their respect through active collaboration
with
consumers
and
end-users,
implementing
measures to address identified impacts. According
to the Code of Conduct, the Group supports diversity
and treats all customers equally, prohibiting any
form of discrimination based on race, religion,
gender, sexual orientation, disability, age, or any
other criteria protected by law. To this purpose, the
Integrity Whistleblower mechanism may also be
used to report possible violations of human rights,
including those affecting consumers and end-users.
Complaints received are analyzed by competent
teams, and remedial measures are determined
based on the nature and severity of the reported
situation. The system allows for a direct or indirect
resolution of such impacts.
Any complaints from stakeholders can be made
through
the
procedure
for
reporting
ethical
violations, irregularities, or any legal infringements
via professional alert mechanisms, allowing the
reporting of any deviations from plans or decisions
made by the company after consulting stakeholders,
or any issues that, during the implementation of
these plans and decisions, may affect stakeholders
or the community.
For a detailed description of the Code of Ethics and
Business Conduct, please refer to the ESRS E1-2
section in the Climate Change chapter.
Within EFSA, the Code of Ethics and Business Conduct
is the basis of a proper relationship between the
company and its consumers/end-users, supporting
their right to equality and diversity and condemning
any form of discrimination.
It also promotes the importance of accurate
information of clients by EFSA personnel, ensures the
right to confidentiality, and guarantees delivery of
quality services.
• Policy on stakeholder engagement
This policy, in line with the Code of Ethics, ensures that
activities are carried out in an ethical, transparent
manner, promoting open dialogue with all parties
involved. Its purpose is to maintain a balance
between the interests of shareholders, employees,
customers, end-users, and communities through
constant and constructive dialogue.
For a detailed description of the Stakeholder
Engagement Policy, please refer to section S1-1 in the
Policies related to own workforce chapter.
• Know Your Business Partners Policy
Electrica’s Know Your Business Partners Policy (clients
and
suppliers),
code
ELSA-POL-MR-2,
Ed.1-rev.1,
allows for the conduct of risk assessments aimed at
mitigating reputational, financial, and operational
risks. It primarily targets non-household customers
(B2B) and suppliers, applying to all transactions
greater than 150,000 RON in relation to these parties.
The policy is applied to non-household customers
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(B2B) and suppliers within the value chain, with
periodic evaluations and monitoring. It covers all
activities carried out by business partners in relation
to Electrica.
The highest level of the Electrica Group organization
responsible for the approval and implementation of
the policy is the Board of Directors. They oversee the
policy’s implementation and ensure its compliance
in all business activities. The goal of the policy is to
create a framework for centralized risk assessments
aimed at mitigating reputational risks, credit risks,
and counterparty risks at the company level.
This policy complements the existing policy regarding
zero tolerance for corruption, fraud, and money
laundering, ensuring the necessary conditions for
knowing business partners, whether customers or
suppliers, in order to mitigate potential reputational,
credit, and counterparty risks.
The principles embraced by this policy include caution
regarding the initiation of business relationships,
analyzing the activities and business behavior of
potential partners, reporting any suspicious initiatives
to the designated structure, adopting a risk-based
approach, and collecting and processing personal
data in compliance with applicable legislation.
The implementation rules include verifying the
identity of business partners, conducting risk-based
analyses, and specifying the responsibilities of the
organizational entities involved. Verifications are
carried out before entering business relationships
or
occasional
transactions,
including
standard
customer
due
diligence
measures,
simplified
measures for low-risk customers, and additional
measures for high-risk situations.
• Security policy
Electrica’s security policy, code ELSA-POL-SIC-1, Ed.1-
rev.1, defines the principles that Electrica adheres to
and respects in terms of security and the objectives
the company must achieve and maintain in this
domain. The implementation of organizational,
technical, and procedural measures adopted in the
application of the Security Policy contributes to the
sustainable protection of personnel, property, and
reputation against security threats.
The security approach is based on an integrated
vision
of
protecting
personnel,
property,
and
reputation, including workplace security, fire safety,
classified information related to national security,
privileged information, personal data, and critical
national infrastructures. The policy principles include
developing a security culture, personnel security,
infrastructure security, information security, business
process
security,
incident
management,
and
business continuity.
The
implementation
rules
establish
the
roles
and responsibilities of management, the Board
of Directors, the CEO, the Security Committee,
process owners, executive management, leaders
of organizational entities, the Human Resources
Department, and all employees.
Risks associated with consumers and end-users may
arise from a lack of access to quality products and
services, deficiencies in information, or inadequate
commercial practices, all of which can affect
customer and end-user trust and loyalty. In contrast,
adhering to good practices in relations with them
creates opportunities for increased satisfaction
and loyalty, while also strengthening the Group’s
reputation.
This policy applies to employees, contractors,
collaborators, consumers, and end-users of Electrica
Group, covering all activities carried out within the
Group and its partnerships. It is relevant to both
upstream and downstream value chains and applies
regardless of the geographical area. The highest level
within Electrica Group’s organization responsible for
enforcing this policy is the Board of Directors. The
Board oversees its implementation and ensures
compliance across all business activities.
• Policy on the Processing of Personal Data
This policy adopted by Electrica Group establishes
a clear framework for compliance with legislation
regarding the protection of customer data. It ensures
transparency and predictability in data processing,
providing
customers
with
detailed
information
about how their data is used. The policy applies to
all customers and employees of the Electrica Group
and aims to protect personal data by implementing
procedures in accordance with the General Data
Protection Regulation (GDPR).
When defining the policy, Electrica Group considered
the interests of key stakeholders, including customers
and employees, to ensure transparent and secure
data processing. For a detailed description of the
Policy on personal data processing, please refer to
section S1-1 in the chapter Own Workforce.
• Risk management policy
The policy defines the general framework for
identifying, analyzing, and managing risks that may
affect the Group’s activities, including monitoring
relationships with consumers and end-users. It is
complemented by the procedures of the Integrated
Management System, which ensure rigorous control
over operational risks.
The policy applies to all activities of the Electrica
Group and all geographical areas where it operates.
For a detailed description of the Risk Management
Policy, please refer to section G1-1 in the chapter
Governance.
• The integrity whistleblowing policy
The policy on reporting ethical violations, irregularities,
or any breaches of the law through professional alert
devices (integrity whistleblowing) is based on the
principles outlined in the Code of Ethics and Business
Conduct, allowing consumers and end-users to
report irregularities or violations of the law through
a confidential integrity alert system. The objective of
this policy is to protect whistleblowers and prevent
any form of retaliation against them. The reporting
mechanism for suspected violations, called the
Integrity Whistleblower, is available to all employees
of the company, customers, suppliers, contractors,
subcontractors, and other stakeholders interacting
with the Electrica Group.
For
a
detailed
description
of
the
Integrity
Whistleblowing Policy, please refer to section G1-1 in
the
Governance
chapter.
The policies described above apply to all consumers
and end-users. To communicate its policies, Electrica
uses
appropriate
technology,
including
secure
platforms, IT equipment, and specialized software,
facilitating access to information. The Group’s
public policies are published on its website, and the
rights and obligations of consumers are included in
contracts, communicated via email, and integrated
into internal training programs for employees.
S4-2 Processes for engaging with consumers and end-users about
impacts
In accordance with specific regulations, the Electrica
Group collaborates directly with end consumers and
electricity distribution operators as an electricity
supplier. These collaborations aim to ensure constant
communication and facilitate the efficient resolution
of potential issues related to the services provided.
Additionally, consumers are consulted annually
through surveys and questionnaires to gather
feedback on their experience, including aspects
related to personal data protection and IT system
security. All data is processed in compliance with
confidentiality standards and GDPR regulations. The
responses from these consultations are analyzed,
and if any needs or opportunities for process
improvement are identified, plans for implementation
are created.
Electrica Group understands that protecting end
consumers’ data is essential for building trust
and complying with legal regulations. Therefore,
collaboration with consumers to identify privacy-
related risks is a priority and includes:
• Identifying
specific
risks:
Electrica
Group
conducts periodic tests to detect potential
threats to privacy, such as unauthorized access
or data leaks, through direct consultations with
consumers and data protection experts.
• Defining
protective
measures:
Electrica
Group implements data security policies and
procedures, ensuring these comply with GDPR
regulations and other applicable requirements.
At the Group level, collaboration with consumers
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and end-users is carried out through the following
channels and initiatives:
• Support platforms, surveys, and questionnaires
– Consumers have dedicated channels such as
customer relations centers, digital platforms, and
satisfaction surveys to share their concerns and
suggestions.
• Periodic consultations and meetings (at least
annually)
–
The
Group
organizes
regular
consultations with consumer representatives,
consumer protection associations, and other
relevant stakeholders to gather information
regarding the impact of their products and
services.
• Collaboration
with
regulatory
bodies
and
authorities – The Group maintains an active
dialogue
with
institutions
responsible
for
consumer protection to ensure compliance with
legal requirements and industry best practices.
Regarding transparency with consumers, Electrica
Group ensures they are informed about how their
data is collected, used, and protected by publishing
the policy on personal data processing.
All entities within the Electrica Group (where
applicable) provide their consumers with clear
and accessible information about the services
offered
through
multiple
channels:
websites,
mobile applications, notifications, and educational
campaigns.
In the event of a crisis caused by major changes or
security incidents, the Group has tools to communicate
notifications to consumers, either directly or through
official communication channels such as its website,
applications, social communication platforms, or
mass media platforms.
Collaboration primarily occurs during the monitoring
and improvement phase of the services provided, but
it can also be initiated during operational adaptation
stages or in the context of legislative changes.
Within EFSA, the Director of the Operations Division
is responsible for coordinating post-sales activities,
including
call
center
management,
complaint
handling, billing, receivables, network management,
and support contract administration. For DEER,
operational responsibility for collaboration with
network users lies with the Commercial Division and
the Network Operations Directorate at the level of the
Regional Structures.
Electrica aims to ensure the accessibility of its
services for all consumers, including vulnerable
groups, by:
• Developing user-friendly digital solutions;
• Adapting services for consumers with disabilities;
• Flexible tariff offers to support consumers from
diverse socio-economic backgrounds.
The Group promotes transparency in its commercial
offers and is committed to avoiding aggressive
or misleading marketing practices. All advertising
materials
comply
with
consumer
protection
regulations.
EFSA implements a series of measures dedicated to
vulnerable consumers, in line with ANRE Order No.
235/2019:
• Improved accessibility: Vulnerable clients can use
single points of contact and regional information
centers tailored to their needs.
• Administrative support: Clients can appoint a
trusted person to manage interactions with the
provider.
• Adapted
communication:
Bills,
notifications,
and informative materials can be provided
in electronic formats compatible with screen
readers for visually impaired individuals.
• Measures to ensure energy continuity:
• Limiting planned interruptions and notifying
affected vulnerable clients in advance
• Prioritizing repairs in the event of accidental
outages
• Providing an additional energy source in
critical situations
• Protecting against disconnection, including
during energy crises
Vulnerable clients are not disconnected from the
electricity network, not even during electricity crises.
The efficiency of the collaboration with consumers
and/or end-users is evaluated through the analysis
of
satisfaction
survey
results
and
customer
retention indicators. Periodic performance reports
of customer relations channels are reviewed by the
executive management, and recurring suggestions
or complaints are used to adapt communication
strategies and services provided.
The Electrica Group is keen on expanding and
improving
its
collaboration
mechanisms
with
consumers and end-users. If areas requiring process
improvements are identified, Electrica will develop
additional measures and implement new initiatives
within a reasonable timeframe.
S4-3 Processes to remediate negative impacts and channels for
consumers and end-users to raise concerns
Electrica Group identifies, prevents, and mitigates
potential negative effects that its operations may
have on consumers and end-users. This process is
managed through a framework involving complaint
management mechanisms, open communication
channels, and collaboration with authorities and
consumer protection organizations.
To ensure the efficient resolution of consumer issues,
Electrica Group has implemented the following
measures:
• Problem Identification: Customer feedback is
monitored through satisfaction surveys and
complaint analysis to identify risks and recurring
issues.
• Remediation
Mechanisms:
When
negative
effects arise, the company applies corrective
measures, which may include compensation,
bill adjustments, or improvements to internal
processes to prevent similar incidents in the
future.
• Collaboration with Authorities: Electrica works
with ANRE and other relevant institutions to ensure
compliance with regulations and to protect
consumer rights.
• Special Protection for Vulnerable Consumers:
Efforts are made to ensure they are not
disconnected
during
critical
situations
and
receive adequate support in the event of energy-
related issues.
• Whistleblower Protection Policy: Ensures that
individuals using these channels are protected
against any form of retaliation.
Customer support, quality, and compliance teams
are responsible for managing negative impacts and
implementing remediation measures. These teams
undergo continuous, annual training to respond
quickly and effectively to emerging problems.
After addressing the impact, internal processes are
reviewed to prevent similar issues from arising in the
future. These processes are constantly evaluated
and improved to ensure an optimal experience for
consumers.
Additionally, Electrica Group has implemented control
measures designed to ensure the cybersecurity
of consumer data. The company recognizes that
losing data confidentiality can pose significant risks,
including reputational damage, fines, or financial
losses.
Consumers
and
end-users
can
express
their
concerns or needs through the channels specified in
business
relationships.
• Call Center: available between 9:00 AM and 6:00
PM, consumers can call for quick assistance and
problem resolution;
• E-mail: Through the company address, all
requests are responded to within 24 hours.
The email addresses are as follows: for DEER
office@distributie-energie.ro, for EFSA clienti@
electricafurnizare.ro,
office@electricafurnizare.
ro, for SERV secretariat@electricaserv.ro, and for
ELSA office@electrica.ro;
• Live Chat: On EFSA’s website, clients receive real-
time support through live chat, which is available
to promptly address their questions.
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• Social media: Electrica engages with consumers
on
platforms
such
as
LinkedIn,
Facebook,
Instagram, and Twitter.
• Online contact form: consumers can report
any issues using the online contact form on the
website.
• Mobile app: users have access to direct feedback
options within the app, which redirects them to
the EFSA website, where they can report issues or
request assistance.
EFSA
has
implemented
a
suitable
technical
infrastructure to ensure the optimal functioning
of channels such as call centers, live chat on the
website, and mobile applications, guaranteeing
consumers constant access to the desired support.
Each communication channel (phone, email, live
chat, IVR) is managed by dedicated teams comprised
of employees with expertise in customer services.
These teams are trained to respond to any consumer
requests in compliance with current regulations and
standards.
Electrica Group monitors the efficiency of its
complaint management processes by analyzing
key performance indicators (KPIs), such as response
time to customer requests and the resolution
rate of reported issues. This system allows for the
identification of potential delays or challenges in
the remediation process and the implementation of
necessary measures to optimize it.
Moreover, periodic evaluations are organized in the
form of internal meetings, where the responsible
teams analyze complaint trends and propose
solutions to prevent similar problems in the future.
Communication
channels
are
managed
by
designated teams, and the responsibility for their
proper and fair operation is assigned to Electrica’s
management
roles.
The processing of complaints is carried out in
compliance with current legislation (GDPR), thereby
ensuring
the
protection
of
consumers’
rights
regarding their personal information. Anonymous
complaints are analyzed with the same attention
and seriousness as nominal ones, provided that the
details supplied are sufficient for investigation.
Communication channels are promoted through
various platforms, including the company’s website,
social networks, and direct marketing campaigns.
All consumers are informed about how they can
contact the company to address issues or request
assistance. Additionally, information about these
channels is accessible in multiple languages and
formats to support all consumers, including those
with disabilities.
All communication channels are accompanied by
guides that explain the steps to follow, estimated
resolution times, and answered frequently asked
questions. Consumers are kept informed about the
status of their requests, and in special cases, they
receive personalized updates. To enhance awareness,
the company runs information campaigns via
its website, social media, email marketing, and
physical contact points. For instance, for information
campaigns about its services and activities, DEER
uses various communication channels, including
the DEER Guide, which offers detailed information on
connection activities for prosumers, residential users,
and producers. The company’s website also provides
the
necessary
steps
for
connection,
ensuring
transparency and accessibility for all stakeholders.
In cases of significant issues affecting a large
number of consumers, the company publishes
detailed information about corrective measures
taken. For example, for communications concerning
affected areas, the number of consumers impacted,
and the progress of major incident resolutions,
DEER performs the DEER-PO-15-06 Communication
Management procedure. This procedure ensures
effective information management and transparent
communication with all stakeholders. Within this
framework, DEER monitors and periodically reports
on the status of incidents, the impact on consumers,
and the measures taken to address them, ensuring
accurate and prompt information delivery to users.
S4-4 Taking action on material impacts on consumers and end-users,
and approaches to managing material risks and pursuing material
opportunities related to consumers and end-users, and effectiveness of
those actions
Electrica Group has implemented and continues to
enforce strategic measures to manage both negative
and positive material impacts while proactively
addressing risks and opportunities associated with
consumers and end-users. Details of the actions
adopted or planned in this regard are outlined below.
Electrica identifies the necessary actions to prevent
and manage negative impacts on consumers
and end-users by assessing risks related to data
protection,
cybersecurity,
and
the
quality
of
services provided. The process includes monitoring
compliance with applicable regulations, analyzing
reported
incidents,
and
collecting
customer
feedback. Furthermore, periodic reviews of internal
procedures are conducted under the integrated
management system to identify and implement
corrective or improvement measures.
Additionally,
Electrica
Group
has
implemented
an access control system for personal data and
conducts regular audits and checks to ensure
compliance
with
regulations.
Data privacy
Throughout 2024, Electrica Group continued to
implement data protection measures. Electrica’s
approach to managing significant negative impacts
on consumers, with a focus on data protection and
cybersecurity, involves periodic employee training
to ensure proper handling and understanding of
data privacy standards, as well as implementation
of policies governing the handling and protection
of personal data to align with legal and industry
regulations.
Complaint and Inquiry Management
To ensure the availability and effectiveness of
processes for addressing negative impacts, Electrica
Group has continued to implement mechanisms
for managing customer complaints and inquiries,
including
through
dedicated
communication
channels. Feedback received has been analyzed,
and relevant recommendations are integrated into
operational processes when deemed applicable.
The main actions undertaken align with the Policy
on the Processing of Personal Data, and operational
procedures compliant with GDPR requirements have
been implemented. Customers are also provided
with clear information regarding the processing of
their personal data.
Throughout
2024,
each
entity
within
Electrica
Group made an information note available on their
websites detailing how personal data is processed.
Furthermore, clauses regarding data protection have
been included in all signed contracts.
Regarding
DEER,
complaint
management
is
carried out in accordance with the DEER-PO-15-03
procedure, which defines the process for registering,
investigating,
and
addressing
grievances/
complaints submitted by users or other stakeholders.
Annually, a report is prepared detailing the status
of complaints, including the number of complaints,
topics addressed, areas with the most issues, and
branches with the highest number of complaints. This
report is sent to all department directors, and based
on the feedback, the targeted organizational entities
take steps to optimize processes or incorporate these
aspects into operational procedures.
The
effectiveness
of
implemented
actions
is
monitored using a set of performance indicators that
focus on the number of resolved complaints and/
or overdue complaints and the degree of customer
satisfaction. User feedback is collected through
satisfaction surveys, and the findings are used for
continuous service improvement.
To manage significant risks related to consumers
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and end-users, Electrica Group adopts an integrated
approach that includes constant improvements
to IT and cybersecurity infrastructure, compliance
with data protection standards, and alignment with
international regulations. At the same time, Electrica
monitors risks associated with customer satisfaction
by
analyzing
complaints
and
implementing
corrective measures where necessary.
Security
and
Access
to
Services
and
I n f o r m a t i o n
To ensure security and access to quality services
and information, Electrica Group has continued
implementing
actions
based
on
the
policies
described in section S4-1.
The Code of Ethics promotes accurate and transparent
consumer and end-user information, protects client
personal data, and guarantees fair treatment for
all. The stakeholder engagement policy facilitates
constant and constructive dialogue by organizing
consultation processes through techniques such as
public debates and roundtable discussions.
The Know Your Business Partners Policy focuses
on risk assessment and continuous monitoring of
relationships to ensure compliance with established
standards.
These actions are implemented to achieve the
objectives outlined in the policies, contributing to
the management of significant impacts and risks.
The Group continuously monitors the progression of
these actions, ensuring transparency and efficiency
throughout its processes.
Within EFSA, during the reporting period, the following
measures were implemented to manage impacts,
risks, and opportunities related to consumers and
end-users:
• Online educational campaigns on digital scam
risks and personal data protection, conducted
via social networks, mobile applications, and the
company’s website.
• Enhancing cybersecurity through data encryption,
two-step authentication, and regular updates to
protection systems.
• Collaboration with authorities and consumer
protection
organizations
to
combat
online
fraud by sharing information and educational
resources.
• Periodic review of privacy policies to ensure
compliance with legal regulations and increase
transparency.
• Audits and penetration tests to identify and
correct security vulnerabilities.
• A rapid response plan in case of data security
incidents,
including
user
notification
and
reporting to authorities.
• Easy access to educational resources for users
through articles, video tutorials, and online
sessions about data protection.
• An
intuitive
system
for
managing
privacy
preferences, providing user control over the
information shared.
• 24/7 support service for assistance regarding
data protection and cybersecurity.
• Continuous collection and analysis of consumer
feedback
to
refine
and
improve
security
measures.
• Monitoring the effectiveness of actions through
periodic
reports
assessing
the
number
of
incidents and the efficiency of measures taken.
Within DEER, throughout 2024, the following actions
were implemented to manage impacts, risks, and
opportunities in relation to consumers and end-
users:
• Modernization and expansion of the electricity
network - significant investments in energy
infrastructure to improve reliability and efficiency.
• Launch of a new version of the company’s
website – featuring a modern, more structured,
and intuitive design that provides users with
quick access to essential information about the
company’s activities.
• Introduction of the Chat Volt app – a digital tool
enabling users to quickly obtain information
about power outages and submit their meter
readings.
• Integration of the Interactive Outage Map –
a dedicated page on the company’s website
displaying outages in real-time across DEER,
enhancing transparency and data accessibility.
• Development of a platform for intervention
monitoring – a digital solution that allows users
to view the real-time status of intervention teams.
Additionally, the digitalization measures, such as the
development of intuitive platforms, chatbots, and
mobile apps, are designed to prevent or mitigate
negative impacts on consumer experience. These
interface solutions and efficient communication tools
help avoid issues such as informational deficiencies,
delays, or unclear interactions in the process of
acquiring services. Consequently, the design of digital
channels aligns with Electrica Group’s objectives
regarding customer protection and satisfaction.
The implementation of these actions required
resource allocation, including investments in digital
technologies, dedicated operational budgets, as
well as specialized teams in IT, data protection, and
customer relations. These resources are incorporated
into the annual budgets of Electrica Group’s entities
and are closely monitored through the strategic
planning process.
Metrics and targets
S4-5 Targets related to managing material negative impacts, advancing
positive impacts, and managing material risks and opportunities
As part of the Electrica 2030 Strategy, Electrica Group
has outlined measurable, time-bound objectives
and targets to mitigate negative consumer impacts,
promote positive outcomes, and address associated
risks and opportunities.
These objectives will be achieved through:
• Automation: Streamlining business processes and
integrating them into interconnected platforms
to reduce time and costs while enhancing
operational efficiency.
• Predictive
Maintenance:
Implementing
IT
systems that enable predictive analysis of critical
infrastructure components, helping to identify
and address issues before they become critical.
• Customer
Interface
Digitalization:
Improving
processes such as enrollment, billing, chatbot
services, and virtual communication channels,
ensuring faster response times and more efficient
interactions.
Below are the targets applicable for 2024, which are
aligned with the strategic directions established in
the Electrica 2030 Strategy. These goals focus on
enhancing consumer services and aligning with
trends in digital transformation and energy efficiency.
Targets:
Improving Continuity of Electricity Supply:
• Modernizing the distribution network infrastructure
through strategic investments aimed at reducing
losses and optimizing energy flows.
Increasing
Transparency
and
Access
to
Outage
Information:
• Developing digital platforms that enable real-
time
monitoring
of
interventions
and
the
resolution status of outages.
Protecting Consumers and Ensuring Data
Security:
• Informing all consumers annually about their
data protection rights and mechanisms for
reporting privacy concerns.
Digitalizing Consumer Interaction:
• By 2025, automating 80% of customer relationship
processes (billing, contracting, support) via
chatbots and interactive digital platforms.
Introducing New Energy Efficiency Services:
• Launching energy audit programs for clients to
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reduce average energy consumption.
• Introducing smart home solutions to increase the
adoption of energy-efficient technologies.
Expanding
Educational
and
Awareness
P r o g r a m s :
• Training and development: Digitalization training
for relevant Electrica Group employees to ensure
the team is prepared and capable of fully utilizing
new technologies.
Electrica
Group
collaborates
with
consumers,
consumer protection organizations, and regulatory
authorities
to
align
its
targets
with
market
expectations and needs. Through mechanisms
such as annual satisfaction surveys and public
consultations, consumers are given the opportunity
to influence Electrica’s strategic priorities.
The
Group
consistently
monitors
performance
through key performance indicators (KPIs) that are
aligned with strategic objectives. Based on consumer
feedback and market trends, Electrica periodically
adjusts
its
objectives
and
implementation
mechanisms to maximize its positive impact on
consumers.
These measures will significantly improve service
quality and overall client satisfaction, while ensuring
innovative and efficient management of resources
and processes.
To achieve these goals, Electrica is implementing the
following actions:
• Offering smart home products and services,
to help clients efficiently manage their energy
consumption and enhance home comfort;
• Introducing a chatbot functionality that provides
real-time responses to user inquiries;
• Implementing digital technologies and smart
solutions to improve operational efficiency in
client relationships;
• Utilizing AI (artificial intelligence) to enhance
processes and client and employee experience
across the organization.
These planned or ongoing actions reflect Electrica
Group’s pursuit of opportunities both in developing
value-added services and improving customer
relationships.
The
digitalization
of
customer
interactions and process automation contributes to
increased operational efficiency, cost reduction, and
enhanced end-user experience.
The launch of energy efficiency services opens
new market segments and strengthens the Group’s
position as a responsible and innovative provider.
Additionally, the use of AI and interactive digital
platforms presents an opportunity for differentiation
and customer loyalty in a growing competitive
environment.
Electrica monitors performance against its targets,
identifying necessary improvements proactively to
manage impacts, risks, and opportunities related
to consumers. Periodic evaluations of policies and
actions assess the impact of the services offered,
operational risks, and improvement opportunities.
Strategic decisions are informed and adjusted
to market facts, even in the absence of precise
numerical targets, maintaining a firm commitment
to continuous service improvement for clients and
end-users.
The monitoring process is carried out through:
• Periodic
analysis
of
operational
indicators,
including the number of clients served, the
evolution of demand for certain services, and the
level of utilization of Electrica’s infrastructure.
• Internal audits and controls to ensure compliance
with
internal
procedures
and
high-quality
standards for the services offered.
• Collection and analysis of client feedback
through satisfaction surveys, complaints, and
suggestions, for a better understanding and
improvement of end-user experience.
• Reporting and analysis of sustainability data by
monitoring activities and actions that contribute
to improving access to services and ensuring
responsible practices in promoting company
services.
• Periodic
consultations
with
stakeholders,
including authorities, organizations, and civil
society, to adapt development strategies and
respond effectively to their needs and concerns
regarding Electrica’s products.
Additionally, the Group makes constant efforts to
maintain a high level of transparency and trust
among its clients, consumers, and/or end-users by
ensuring active and accessible communication with
them. This communication relies on the availability
of dedicated reporting channels as well as involving
customers in the design and development of
products.
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ESRS G1 Business Conduct
ESRS 2 GOV-1 The role of the administrative, supervisory and
management
bodies
The administration, management, and supervision
activities within Electrica Group are carried out
by the General Meeting of Shareholders (GMS),
Management Board and Directors, all of these
bodies being established at the level of ELSA and its
subsidiaries, with each of them having clearly defined
roles regarding the company’s business conduct.
The General Meeting of Shareholders (GMS) of ELSA is
the highest governing body and the main corporate
governance body of the company, being responsible
for setting the company’s long-term strategies. The
GMS of ELSA approves the company’s corporate
governance
strategy,
including
the
corporate
governance action plan.
The Management Board, the CEO, and the internal
executive structures play a central role in ensuring
adherence
to
business
conduct
standards.
These are responsible for the establishment and
implementation of the Code of Ethics and Business
Conduct (CEBP), as well as related policies, ensuring
a clear and well-defined ethical framework. Through
these efforts, the executive management of the
company ensures that its business is conducted in
a socially responsible manner, in accordance with
ethical principles, while ensuring transparency in
decision-making and promoting an organizational
culture based on integrity.
ELSA’s Board of Directors (BoD) establishes the internal
policies and regulations governing the company’s
activities and ensures their compliance across all
operations of the organization. The BoD approves
the Group’s governance policy, the transactions
with related parties’ policy, the policy for oversight,
security, coordination, and prudent management of
key operations within the Group. Additionally, one of
the BoD’s roles is to regularly review the effectiveness
of the internal control and audit system, the risk
management and the financial reporting system for
both ELSA and the Group, ensuring that integrity and
ethical standards are upheld across all company
processes.
The Board of Directors also monitors the activities of
the CEO and the management team to ensure that
policies are implemented efficiently.
Together
with
the
executive
team,
the
CEO
coordinates compliance activities and ensures that
all processes and decisions align with business
conduct standards and internal regulations. The
CEO maintains continuous communication with the
Management Board to ensure transparency and
fairness in the organization’s activities.
The responsibilities of each governing body or
individual are outlined in the company’s governance
documents, including the Articles of Incorporation,
the Board of Directors’ Regulations, and the Group
Governance Policy.
Additionally, the Board of Directors and the executive
team are supported by specific internal structures
responsible for overseeing the company’s business
conduct and assisting management in monitoring
and implementing ethical standards.
The Strategy and Corporate Governance Committee
periodically reviews the Corporate Governance
Code, the Regulations of the Management Board, the
Articles of Incorporation, the Delegation of Authority
Policy, as well as the Corporate Social Responsibility
Policy and Stakeholder Engagement. The Committee
also provides recommendations to the Board of
Directors.
The Risk Oversight Committee, composed of the
CEO, CFO, and the Risk Manager of each company
is primarily responsible for identifying and analyzing
the main risks faced by the Group and making
recommendations
for
their
management.
The
Audit and Risk Committee focuses on reviewing
the effectiveness of the Group’s risk management
processes, regularly assessing and monitoring the
main risk categories, and providing recommendations
to the Board of Directors on significant economic
transactions.
Additionally, the organization has established and
operationalized an entity with responsibilities and
competences in the areas of ethics and compliance,
namely
the
Control,
Ethics,
and
Compliance
Department.
This
department
ensures
the
implementation of the Code of Ethics and Business
Conduct (CEBC) and related policies, as well as the
development and implementation of mechanisms to
monitor compliance with the commitments made by
the Group through the Code.
To fulfill these responsibilities, the administrative and
executive bodies responsible for business conduct
operate within a well-defined governance framework
and strengthen their expertise in business conduct
through ongoing training programs and access to
specialized resources.
The members of the Board of Directors are selected
based on strict criteria of competence, professional
integrity, and relevant expertise in business ethics,
compliance, and corporate governance. These
members possess expertise in key areas such as
business ethics, risk management, and corporate
law. Furthermore, according to the company’s Articles
of Incorporation, at least four out of seven Board
members must be independent. The independence
criteria outlined in the Articles of Incorporation
exceed the recommendations of the Bucharest Stock
Exchange (BVB) Corporate Governance Code.
The CEO and the executive team possess solid
operational
expertise
in
implementing
and
monitoring
business
conduct
policies.
ESRS 2 IRO-1 Description of the processes to identify and assess
material impacts, risks and opportunities
The identification of impacts, risks, and opportunities
related to business conduct is part of the broader
process of identifying all sustainability impacts, risks,
and opportunities. Throughout 2024, the process
of identifying material sustainability matters at
the Electrica Group level was carried out through a
double materiality assessment, which highlighted
the material impacts, risks, and opportunities in
relation to business conduct are aspects such as the
corporate culture, supplier relationships, including
payment practices, and issues related to corruption.
For information regarding the process of identifying
material impacts, risks, and opportunities related to
business conduct aspects, please refer to the General
Information chapter, Section IRO-1.
The following table outlines the material impacts,
risks, and opportunities related to governance,
identified through the double materiality assessment
at the Group level.
Material sub-
sub-topic
Location
IRO
Description
Actual/
potential
Time
horizon
Corporate
culture
Activitate
proprie
Risc
Reglementari privind confidentialitatea
datelor.
n/a
Short,
medium and
long-term
Corporate
culture
Activitate in
amonte sau
aval
Risc
Posibile amenzi in cazul masuratorilor
incorecte
n/a
Short,
medium and
long-term
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Material sub-
sub-topic
Location
IRO
Description
Actual/
potential
Time
horizon
Corporate
culture
Own
operations
Positive
impact
(+) Promoting a corporate culture focused
on ethical behavior, transparency, and
accountability throughout the organization
ensures a high level of integrity and
responsibility, strengthening stakeholders’
trust.
Actual
Short-term
Whistleblowers
protection
Own
operations
Positive
impact
(+) The implementation of procedures
that ensure whistleblower protection to
encourage the reporting of suspected
illegal or unethical behavior fosters a safe
and accountable work environment, thus
contributing to the strengthening of trust
and integrity within the organization and in
its relationships with partners.
Actual
Short-term
Management
of relationships
with suppliers,
including
payment
practices
Own
operations
Risk
Changes in legislation regarding the
procurement of energy and natural
gas may impose additional costs and
compliance risks.
n/a
Short,
medium and
long-term
Management
of relationships
with suppliers,
including
payment
practices
Own
operations
Positive
impact
(+) The adherence of suppliers, service
providers, and contractors to the Code of
Ethics and Business Conduct of Electrica
Group ensures their accountability,
integrity, and proper conduct in business
relationships. This measure promotes
an ethical and sustainable business
environment.
Actual
Short-term
Prevention
and detection
of corruption
and bribery,
including
related training
Own
operations
Positive
impact
(+) The implementation of a robust system
for the prevention, detection, investigation,
and response to allegations or incidents
related to corruption and bribery, along
with the relevant training provided, ensures
compliance and integrity across all group
operations. Through these actions, we
strengthen an ethical and transparent
business environment, promoting trust
and accountability in relationships with all
stakeholders.
Actual
Short-term
Prevention
and detection
of corruption
and bribery,
including
related training
Own
operations
Positive
impact
(+) The existence of systems and
processes to prevent and detect illegal
or unethical activities through periodic
audits and compliance checks ensures
effective control across the entire group.
These systems promote an ethical and
responsible business environment, thereby
strengthening trust and integrity in all
group operations.
Actual
Short-term
Material sub-
sub-topic
Location
IRO
Description
Actual/
potential
Time
horizon
Prevention
and detection
of corruption
and bribery,
including
related training
Own
operations
Positive
impact
(+) The existence of a rigorous reporting
and response process ensures an efficient
and prompt management of incidents,
preventing and minimizing their impact on
the environment. It promotes a safe and
responsible working environment, reduces
legal and reputational risks, and increases
the trust of partners and the community.
Actual
Short-termt
Incidents of
corruption or
bribery
Own
operations
Positive
impact
(+) The adoption of the CEBC at the
Group level, which includes a strict zero-
tolerance policy toward corruption and
bribery, demonstrates a firm commitment
to ethics and integrity. By providing regular
training and education to employees on
these issues, all team members within
the organization are made aware of the
importance of compliance and ethical
behavior. These measures are incorporated
into the Group's Code of Ethics and
Business Conduct. These actions prevent
illegal practices and promote a transparent
and responsible working environment.
The positive impact of this policy is
evident through the reduction of legal
and reputational risks, the increased trust
of partners and the community, and the
strengthening of an organizational culture
based on solid values.
Actual
Short-termt
G1-1 Business conduct policies and corporate culture
Minimum disclosure requirement - Policies MDR-P – Policies adopted to
manage material sustainability matters
Electrica
Group
maintains
a
clear
corporate
governance framework, strengthened by internal
rules
and
policies,
including
the
Corporate
Governance Code (CGC) and the Code of Ethics
and Business Conduct. The evaluation of corporate
culture is carried out through periodic monitoring of
governance practices and reporting in compliance
with applicable regulations. Governance policies are
reviewed whenever necessary to ensure compliance
and efficiency in their implementation.
The corporate governance policies apply to all
entities within the Electrica Group. These policies
regulate aspects of compliance, transparency, and
ethics across the Group level. Electrica aligns with
international regulations and EU standards regarding
corporate governance.
The Board of Directors is responsible for approving
and overseeing the implementation of corporate
governance policies. The internal audit and risk
management functions ensure compliance and the
effectiveness of the adopted measures.
The business conduct policies at Group level focus on
essential areas related to integrity and compliance,
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such as information security, transactions with
affiliated parties, prevention and combatting of
harassment, data
confidentiality,
avoidance of
conflicts of interest, and a zero tolerance towards
corruption, fraud, and money laundering. Additionally,
regulations regarding gifts and hospitality expenses,
market abuse prevention, risk management, and the
reporting of ethical violations are included.
The Corporate Governance Code
The Corporate Governance Code establishes the
general principles and rules of conduct of the
organization, with the primary goal of ensuring
effective, transparent, and responsible governance.
The corporate structures, including the General
Meeting of Shareholders, the Board of Directors, and
the Executive Management, are designed to ensure
adherence to these principles and implement a
strategy based on sustainability and business ethics.
These principles are integrated into the group’s
strategies and policies. The Corporate Governance
Code sets forth the values and business conduct
standards applicable to all employees, suppliers,
and other stakeholders.
Regarding
impacts
and
risks,
the
Corporate
Governance Code emphasizes the importance of a
robust risk management system, designed to identify,
assess, and manage the risks associated with the
company’s operations. Electrica has implemented
a Risk Management Policy, which ensures a unified
framework for risk management and informed
decision-making.
Additionally,
the
Corporate
Governance
Code
provides
for
an
integrated
approach to internal auditing, aimed at supporting
the organization in achieving its objectives through
a systematic evaluation of governance, internal
control, and risk management.
Electrica adheres to high standards of corporate
governance and transparency, in accordance with
the regulations of the Bucharest Stock Exchange and
the London Stock Exchange. The principles underlying
the Group’s corporate culture are strategic vision, zero
tolerance towards corruption, efficient management,
and accountability towards all stakeholders.
Electrica has implemented a formal mechanism for
reporting and investigating breaches of business
conduct, including an internal whistleblower system.
Employees and stakeholders can confidentially report
any illegal behavior or violations of ethical standards
through dedicated reporting channels. Reports are
analyzed by a specialized entity, and whistleblowers
are protected from any retaliation. These aspects are
regulated by the Corporate Governance Code and
the Integrity Whistleblowing Policy, which includes
details on protective measures against retaliation
and investigation procedures, as outlined below.
The Code is communicated to employees through its
publication on the intranet page and to partners via
its publication on ELSA’s website.
The Code of Ethics and Business Conduct
The values and principles defined at ELSA level through
Code of Ethics and Business Conduct (CEBC) and the
set of subsequent policies are applicable across the
entire Group, with ELSA coordinating the process of
evaluating the applicability of the CEBC and related
policies, as well as their review at the Group level.
The CEBC defines the values and principles adopted
and promoted within the organization, essential in
the development of a culture of ethics, integrity, and
sustainability.
The Code of Ethics also includes provisions regarding
values and principles, application rules, general
conduct norms – defining competition and antitrust
clauses, combating corruption, avoiding conflict
of interest, and specific clauses – all aimed at
establishing ethical standards in relationship with
stakeholders.
In accordance with the provisions of the CEBC,
the company includes integrity and transparency
clauses in all its commercial relations with public
and private entities. It also includes a clause in its
contracts with business partners regarding their
obligation to comply with the provisions of the CEBC
that apply to them, if they have not adopted their
own code of ethics.
Each subsidiary has its own Code of Ethics and
Conduct, which is adapted after the ELSA Code of
Ethics and Conduct.
The EFSA Code of Ethics and Business Conduct is
based on the Code of ELSA, with minor differences
related to the existence of different approaches
regarding the mission, vision, values, and principles
underlying these documents, determined by the
specific elements of each organization.
At DEER, in addition to the common elements with
Electrica’s Code, an article has been introduced to
ensure compliance with the commitments proposed
and accepted by the Competition Council. This article
fosters a competitive environment in the electricity
market when it comes to the process of changing
suppliers. Through this commitment, the employed
staff publicly distances itself from any attempt to
influence consumers in choosing their electricity
supplier, ensuring equal and non-discriminatory
treatment of all licensed electricity suppliers and
refraining from favoring the group’s own supply
company, applying fair and impartial treatment to
all.
Moreover, to ensure a fair competitive environment
in the electricity market, DEER has developed and
published the User Information Guide on its website.
This document aims to raise the level of awareness
of commercial partners regarding DEER’s conduct in
the supplier switching process.
For a detailed description of the Code of Conduct,
please refer to section ESRS E1-2 in the Climate
Change
chapter.
Policies on business conduct
In addition to the Corporate Governance Code and
the Code of Ethics and Business Conduct at the
Group level, there are several policies and corporate
documents available to the public on ELSA’s website,
as follows:
• Risk Management Policy
Available on the Group’s website, this policy provides
a detailed description of the risk identification
and assessment process across all levels in the
organization and ensures the implementation of
the risk management process at the Group level.
The Risk Management Policy is applicable to the
entire Electrica Group, including all activities carried
out by the parent company and its subsidiaries, as
well as the upstream and downstream value chain.
Thus, the policy covers suppliers, clients, and other
stakeholders who may generate risks for the Group,
and all geographical areas where it operates.
The policy is aligned to SR ISO 31000:2010 Risk
Management. The Risk Management Policy includes
mechanisms for consultation and communication
with stakeholders to ensure its alignment with their
needs and expectations. Additionally, it monitors
risks generated by suppliers, clients, and other third
parties that may impact the Group.
The
implementation
of
the
Risk
Management
Policy within the subsidiaries of the Electrica Group
is coordinated by the Group’s Risk Management
function, which ensures a unified framework for
identifying, evaluating, and managing risks. Each
subsidiary provides specialized human resources for
analyzing the main risk categories, including credit,
operational, technical, and market risks, as well as
mathematical and statistical modeling of these risks.
The risk management process involves identifying
and prioritizing optimal measures to address risks,
establishing an acceptable level of residual risk, and
continuously monitoring the associated controls. The
Group’s risk appetite is transposed and adapted for
each subsidiary, ensuring a coherent and efficient
approach across the entire organization.
The
Ethics
Advisor,
together
with
the
Risk
Management Department/Risk Management Officer
at the organizational level, conducts a process of
identifying risks and vulnerable areas whenever
major changes occur within the organization. Such
events may be changes in the majority shareholder,
the appointment of a new board of directors,
appointment of a new CEO, company and Group
restructuring, entering new markets, listing on new
stock exchanges, and other similar events.
The sources for the identification of risks and
vulnerable
areas
include
the
following:
• Complaints formulated under the Procedure
for reporting ethical breaches, irregularities, or
any violations of the law through professional
alert
systems
(Integrity
Whistleblower),
communicated by the Internal Audit Department
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of the organization and made available following
a written request from the Ethics and Compliance
Officer;
• Reports from the Internal Audit Department of
the organization regarding disciplinary actions,
made available following a written request from
the Ethics and Compliance Officer.
• Reports from the Human Resources Department
of the organization regarding disciplinary actions
taken, made available following a written request
from the Ethics and Compliance Officer.
• Information provided by the Legal Department
regarding litigations involving the organization,
specifically those concerning the organization’s
accountability or the accountability of its staff
relative to the organization, with the aim of
repairing any potential prejudice caused;
• Media
monitoring
reports
regarding
public
allegations related to the organization.
The implementation and monitoring of the Risk
Management Policy is the responsibility of the
Board of Directors, supported by the Audit and Risk
Committee and the Risk Management function. The
policy is overseen by the Risk Management at the
Group level, which aggregates relevant information
and ensures periodic risk reporting.
At the request of the Ethics Advisor, the Risk
Management
Department/Responsible
for
Risk
Management completes the existing risk register
with the identified corruption risks, specifying the
risk factor, risk description, probability of the risk
occurring, impact if the risk occurs, prevention and
risk reduction measures. The risk register also includes
an assessment of the implementation degree of
the proposed measures and the calculation of the
residual risk.
Based on the evaluations conducted, the Ethics
and Compliance Department collaborates with Risk
Management to develop an action plan aimed at
preventing and reducing the identified risks. The
implementation of the plan is monitored by the
ethics and compliance department, which evaluates
the effectiveness of the measures implemented to
prevent and reduce corruption risks.
The results of the risk assessment process are
integrated into the company’s sustainability and
governance
strategies,
influencing
decisions
regarding the development and improvement of
reporting
systems.
To maintain a high level of expertise in risk
management, the Group facilitates continuous
professional training for the staff involved in this
process.
• Investor Relations Communication Policy
Electrica is committed to complying with regulations
regarding transparency and communication with
investors, applying ethical and business conduct
principles in its interactions with the capital market.
The
Investor
Relations
Communication
Policy
establishes a clear framework for managing and
disclosing relevant information, adhering to the
principles of equal treatment, confidentiality, and
compliance with applicable legislation. It includes
measures to prevent the unauthorized disclosure of
privileged information, maintain an open dialogue
with investors, and protect the confidentiality of
strategic data.
According to the policy, the members of the Board
of Directors and the executive management believe
that it is in Electrica’s best interest to maintain an
open dialogue with shareholders, other investors,
investment firms, and analysts regarding Electrica’s
historical performance and prospects.
The main objectives of this policy include the
company’s commitment to compliance, quality
information, equal access to information, ensuring
that all individuals to whom this policy applies
understand
their
obligations
regarding
the
confidentiality of privileged information, and effective
communication.
The policy has been reviewed by the Strategy and
Corporate Governance Committee, who is responsible
for this policy, including making substantial changes
and ensuring its compliance. The policy has been
approved by the Board of Directors. The Investor
Relations Department reviews this policy at least
once every two years, and any significant changes
are subject to the approval of the Board of Directors.
The policy applies to all members of the Board
of Directors, executive members, and employees
of Electrica, as well as any individual authorized
to represent the company in its relationship with
investors.
Electrica maintains an active and open dialogue
with investors and other stakeholders through a
variety of mechanisms such as periodic reports. ELSA
organizes four annual teleconferences with analysts
and investors to present quarterly, semi-annual, or
annual financial results. These events are streamed
live, and the recordings are available on ELSA’s
website. Furthermore, ELSA’s management team is
actively involved in communication activities with
analysts and investors, such as conferences or one-
on-one meetings.
• Policy on Transactions with Related Parties
The Policy on Transactions with Related Parties
aims to ensure transparency and fairness in all
transactions conducted between ELSA and its related
entities. By adhering to the market value principle
and implementing rigorous verification mechanisms,
Electrica seeks to prevent conflicts of interest and
protect the interests of all parties involved.
This policy prevents conflicts of interest and
guarantees
transparency
and
integrity
in
all
transactions with related parties. The terminology
of „related parties” or „related persons” is defined in
Article 7, paragraph 26 of the Fiscal Code.
The policy applies to all entities within the Electrica
Group and regulates any type of transaction
conducted between the company and its related
parties.
The
policy
includes
requirements
for
identifying,
analyzing,
and
reporting
these
transactions, regardless of their nature.
The implementation of the policy is coordinated by
the Board of Directors, the Audit and Risk Committee,
and the Financial Department, with support from the
compliance and internal audit structures.
Transactions
are
classified
based
on
specific
threshold as follows: minor transactions (with a
cumulative value less than 50,000 EUR, which do not
require monitoring/reporting), relevant transactions
(with a cumulative value greater than or equal to
50,000 EUR but less than 250,000 EUR), medium-
impact transactions (with a cumulative value
greater than or equal to 250,000 EUR but less than
3,000,000 EUR), and major-impact transactions (with
a cumulative value greater than or equal to 3,000,000
EUR).
The personnel responsible for ethics within each
subsidiary develop and update, whenever necessary,
the Related Parties Register, where all related parties
are recorded, making it available to interested parties
upon request.
• Internal Audit Charter
The Internal Audit Charter establishes the principles
and standards of ethics and business conduct for
conducting internal audit activities. It outlines the
responsibilities of internal auditors in maintaining
integrity, objectivity, confidentiality, and competence,
thereby promoting a corporate culture based on
transparency and accountability.
The Internal Audit Charter applies to all employees
and management of the companies within the
Electrica Group and is made available to all
stakeholders on the organization’s website. In
accordance with applicable standards, the Charter
is reviewed annually.
The Internal Audit Charter grants internal auditors
the authority to investigate any aspect related to
risks, internal controls, and governance, including
potential deviations from internal rules and business
conduct. The internal audit activity is governed by
a code of ethics which mandates the objective and
impartial reporting of results. The Internal Audit
Charter is developed at the Electrica Group level and
defines the purpose, authority, and responsibilities of
the internal audit function. The internal audit activity
is regulated by the Internal Audit Manual and is
governed by the standards issued by the Institute of
Internal Auditors, as well as international standards
for the professional practice of internal auditing.
The Internal Audit Charter stipulates that internal
auditors must maintain a continuous training and
skills improvement program.
The Internal Audit is organized as an independent
function within the Electrica Group, and its activities
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are coordinated by the Director of the Internal Audit
Department. According to the Charter, the Internal
Audit Director reports directly to the Board of Directors
and is supervised by the Audit and Risk Committee.
Both the Internal Audit Charter and the Internal Audit
Manual are approved by the Board of Directors.
The Internal Audit Charter specifies that the audit
activities are carried out in accordance with the
International Standards for the Professional Practice
of Internal Auditing developed by the Institute of
Internal Auditors (IIA).
• The Zero Tolerance Policy on Corruption,
Fraud and Money Laundering
Electrica has adopted a zero-tolerance policy
towards corruption, fraud, and money laundering,
which establishes clear principles and standards for
preventing and managing these risks at the Group
level. The policy applies to all employees of Electrica
and its subsidiaries and regulates prohibitions
related to bribery, facilitation payments, conflicts
of interest, procurement fraud, the improper use of
resources, and the prevention of money laundering.
Additionally, the document outlines measures for
managing risks, reporting non-compliance, and
applicable sanctions for violations.
The zero-tolerance policy for corruption, fraud, and
money laundering defines the various forms of
corruption, including bribery, facilitation payments,
abuse of office, trafficking and buying of influence,
procurement fraud and unfair competition, improper
use of resources, money laundering, and tax fraud.
This policy is part of a broader system of governance
and ethics within the Electrica Group. It aligns with the
Code of Ethics and Business Conduct, establishing a
clear framework for the prevention, detection, and
sanctioning of non-compliant behaviors.
The zero-tolerance policy towards corruption, fraud,
and money laundering establishes a corruption
risk management mechanism, which includes the
following main steps:
• Identifying Risks: The mechanism for identifying
risks, especially those related to corruption,
includes a process carried out by the Ethics and
Compliance Department in collaboration with
the Risk Management Department. They conduct
an annual evaluation of risks and vulnerable
areas for SERV and DEER, focusing on key factors,
such as major structural changes (e.g., changes
in the majority shareholder or CEO). Sources
for identifying risks include reports through
professional alert devices, internal audit reports,
disciplinary actions, legal disputes, and media
monitoring. In the case of EFSA, the corruption
risk evaluation is carried out quarterly by the
Risk Management Department, with support
and contribution from the Control, Ethics, and
Compliance Department.
• Risks reporting: Any individual connected to
the company’s activities (including employees,
clients, and suppliers) can confidentially report
concerns related to illegal behavior or deviations
from internal norms. Complaints can be made
via email, phone, or online using a dedicated
platform managed by an independent service
provider. This mechanism provides whistleblower
protection against retaliation, both in cases
where the complaint is substantiated and in
situations where the complaint is not confirmed
but was made in good faith.
• Investigating
Risks:
After
reporting,
the
notifications are forwarded to the departments
responsible within the company, which conduct
the necessary investigations while respecting the
whistleblower’s confidentiality. Depending on the
nature of the report, the investigation is carried
out by the Audit Department in collaboration
with the Ethics and Compliance Department or
other specialized departments. All investigations
are conducted objectively and independently,
avoiding any conflicts of interest. At the end of
the investigation process, the results are reported
to higher management levels.
The policy is communicated both internally, through
training and internal notifications, and externally,
and applies to employees, clients, suppliers, or
any other business partners. The responsibility for
implementing the policy lies with the CEO and the
Board of Directors, with support from the Ethics and
Compliance
Department.
Within the Electrica Group, no assessments have
been made to identify the functions most exposed
to the risk of corruption. The zero-tolerance policy
towards
corruption
establishes
preventive
and
combat measures for these risks, including reporting
and investigating suspicious incidents.
• The Policy on avoiding and combating
conflicts of interest
The policy aims to prevent and manage conflicts of
interest to protect the organization from reputational,
financial, and legal risks. It applies to all employees
of ELSA and its subsidiaries, excluding procurement
procedures, which are regulated separately. The
goal of this policy is to ensure that the activities of
the companies within the Group are carried out
with integrity, avoiding ethical deviations and non-
compliance issues. In line with the Code of Ethics and
Business Conduct, the organization is committed,
through the ethics and compliance department/
advisor, to ensure that its activities are conducted
with integrity.
The responsibility for implementing, monitoring, and
ensuring compliance with this policy lies with the
Board of Directors, the CEO, the Ethics and Compliance
Department, and the Human Resources Department.
These bodies ensure the correct application of the
policy, supervise employee compliance, and take
corrective actions in the event of identified deviations.
The management of conflicts of interest is carried out
based on this policy and other corporate governance
documents, such as the Corporate Governance
Code, the Code of Ethics and Business Conduct, the
Articles of Incorporation, and the Regulations for the
Organization and Operation of the Board of Directors.
When employees in managerial positions find
themselves in situations covered by this policy,
or at least annually, they are required to notify the
organization. Declarations regarding conflicts of
interest are completed annually, and the consolidated
report is communicated to the Board of Directors.
• The Whistleblowing Policy
The policy on reporting ethical violations, irregularities,
or any breach of the law through professional alert
mechanisms (“Whistleblowing Policy”) was adopted
to ensure that the activities of the Electrica Group
are conducted with honesty and integrity, preventing
ethical violations, fraud, and other breaches of
applicable legislation. Through this policy, the Group
promotes a corporate culture based on transparency
and accountability, providing a clear framework for
reporting and managing allegations of potential
violations. The policy applies to all employees, as well
as relevant external parties such as suppliers, clients,
and contractors, and is based on fundamental
principles such as good faith, confidentiality, and
protection against retaliation.
The responsibility for implementing the policy lies
with the Internal Audit Department, the Ethics &
Compliance Department, and the Legal Department,
under the supervision of the General Director and the
Management Board. The policy was approved by the
Board of Directors.
The policy establishes a clear reporting system
for ethical violations and any breaches of the law,
through a whistleblowing mechanism managed by
an independent service provider.
Under this policy, any employee, client, supplier,
contractor, subcontractor, or other parties related to
the company’s activities are encouraged to report
any action by an employee or any other person
acting on behalf of the company that would violate
the law or the company’s internal ethics and business
conduct standards.
The report can be made through a dedicated service
provider, independent of the company, using the
following communication channels:
• By phone, using a dedicated phone line;
• Email to a secure address for the protection of
the whistleblower and the company;
• Online at https://managementparticipativ.info.
ro/electrica;
• Directly to the Whistleblowing Policy Advisor.
The alerts and reports are handled by a dedicated
operator, after anonymizing the complaint. The
investigation and handling of the facts reported
by whistleblowers will be carried out by the Audit
Department and other specialized departments
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within the company, ensuring the avoidance of
conflicts of interest.
Particular attention is given to prohibiting any form
of retaliation against integrity whistleblowers, with
the company implementing strict measures in this
regard. To this end, all company employees, including
senior management, participate in training related
to the prohibition of retaliation.
Retaliation
is
prohibited
even
if,
following
investigations, it is determined that the report is
unfounded, but was made in good faith. Any form of
retaliation against a person who has made a report in
good faith constitutes a serious disciplinary offense
that may result in dismissal.
The investigation or analysis of the issues mentioned
in the whistleblower report is conducted objectively
and independently, and the observed results are
communicated to the Board of Directors (BoD).
The Ethics Officer reports directly to the Management
Board and their activities are presented to the
Board of Directors. Upon the Board’s request, any
documents or educational materials prepared may
be made available.
Although
the
Integrity
Whistleblowing
Policy
includes the possibility of reporting any suspicions
of corruption and fraud, the Group has adopted a
separate zero tolerance policy towards corruption,
fraud, and money laundering, which outlines specific
measures in this area. This policy is presented earlier
in this chapter.
Electrica Group ensures the training of all employees,
including
senior
management,
regarding
the
prohibition of retaliation and the process of reporting
ethical violations. Training is conducted annually
and is part of the organization’s compliance and
ethics program. At EFSA level, training is conducted
annually within the organization’s compliance and
ethics program, as well as in situations triggered by
changes/updates to related policies and procedures
in the ethics field. Training may also take place in
certain departments due to recorded cases of ethical
violations or non-compliance with ethical standards.
• Sponsorship Policy, Donations Policy and
Grants Policy
The purpose of the Sponsorship Policy is to ensure
that the sponsorship process is carried out with
absolute integrity, in line with a zero-tolerance
approach to corruption, fraud, and money laundering,
protecting the company from any actions that could
harm its reputation or expose it to legal sanctions.
The procedure outlines the specific areas which
sponsorship can be granted for, the selection criteria.
The procedure establishes that all sponsorships will
be made public.
The Donations Policy aims to ensure that the
company’s
involvement
in
social
responsibility
activities is done based on integrity and a zero-
tolerance approach to corruption, fraud, and money
laundering.
Through
the
ongoing
project
“Electrica
pune
România într-o altă lumină”, the grants policy
defines Electrica’s approach to providing funding for
sustainable
initiatives.
• Ethical Career Management Policy
The Ethical Career Management Policy ensures an
ethical and fair framework for managing employees’
careers, promoting a work environment based on
integrity, transparency, and mutual respect. Electrica
Group supports the professional development of its
employees through an objective evaluation process
and a promotion policy based on competences and
performance.
The
policy
establishes
clear
mechanisms
for
identifying and addressing any situations that could
lead to unfair treatment in managing employees’
careers.
The
internal
reporting
system
allows
employees to report to hierarchical superiors and
departments responsible for human resources, ethics,
and compliance, any irregularities or deviations from
the established ethical principles through official
communication channels. It applies to all employees
of the Electrica Group, regardless of their hierarchical
level or position.
The organization’s staff will monitor and prevent the
occurrence of the following situations that could
represent violations of the principles and rules of the
Code of Ethics:
• The involvement of the organization’s personnel
in
decision-making
processes
concerning
individuals who are their spouse, relatives, or in-
laws up to the second degree;
• The recruitment, promotion, or retention, hiring,
or contracting of a person with a criminal
conviction for a management position within the
organization.
In the case of a direct or intermediary hierarchical
relationship
between
spouses,
relatives,
or
godchildren up to the second degree, the general
principle for avoiding potential conflicts of interest is
that any decision regarding the career management
of the person in the lower hierarchical position will be
made either by individuals in an equal position to the
person who would normally have decision-making
authority, or by their superior.
The responsibility for implementing the policy lies
with the Human Resources Department and the Ethics
and Compliance Department, under the supervision
of the CEO and the Board of Directors.
• Policy
for
preventing,
combating
and
sanctioning any form of harassment
The Policy for preventing, combating and sanctioning
any forms of harassment establishes the framework
for
preventing
and
combating
inappropriate
behaviors in the workplace, protecting employees
and collaborators against any form of harassment.
It aims at preventing and raising awareness about
the risks related to harassment, while also firmly
sanctioning inappropriate behaviors to ensure an
organizational climate based on respect, integrity,
and equal opportunities.
The policy helps reduce legal, reputational, and
operational risks generated by potential harassment
cases, while ensuring compliance with national
and European legislation. The implementation of
this policy is monitored through internal reporting
mechanisms,
training
sessions,
and
prompt
investigations in case of reports.
The policy applies to all employees of the company,
regardless of hierarchical position or type of
employment contract, as well as collaborators,
contractors, and business partners involved in
the company’s activities. The policy addresses all
forms of harassment, including verbal, physical,
psychological, and sexual harassment, both in
internal workplace relations and interactions with
third parties.
The policy covers harassment incidents occurring
within the company, including those generated in
physical or virtual workspaces. However, cases where
employees are harassed by external entities (such as
clients or third parties) are managed in accordance
with national legislation and applicable regulations.
The policy is aligned with relevant national and
international regulations.
The responsibility for implementing and ensuring
compliance with the policy lies with the CEO, the
Human Resources Department, and the Ethics and
Compliance
Department.
The policy is communicated to employees through
internal channels and is an integral part of the
training and awareness programs on ethics and
workplace behavior. It is also accessible to external
partners on the Electrica Group’s website.
• Policy on stakeholder involvement policy
The stakeholder involvement policy is based on the
following principles:
The
Group’s
personnel
accurately
and
comprehensively inform stakeholders about all
relevant aspects of the company’s activities. The
company organizes an annual consultation with
stakeholders to identify relevant aspects of its
activities from their perspective. The company
provides
a
platform
for
dialogue
and
the
communication of opinions from partners, clients,
and other stakeholders on the company’s website.
According to this policy, the company organizes an
annual consultation with stakeholders to identify
relevant aspects of its activities from their perspective
and to prioritize its initiatives. The stakeholders
defined in the policy include shareholders, employees
represented by trade unions, authorities, business
partners, clients, and civil society.
Stakeholders are consulted at the beginning of each
strategic planning period, annually, and whenever
a decision/plan/project is made that has direct or
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indirect effects on stakeholders. This consultation is
carried out through various methods, such as public
debates, symposia, planning workshops, or other
sociological methods.
Stakeholders can use the procedure to report ethical
breaches, irregularities, or any violations of the law
through professional alert mechanisms. They may
report any deviations from the plans or decisions
made following stakeholder consultations, or any
aspect that, during the implementation of these
plans and decisions, affects the stakeholders or
the community. Subsequently, responses to these
complaints are provided within 45 days from the
date of registration, and the responses are published
on the company’s website.
All the aforementioned policies are communicated
to the staff through publication on the intranet page,
training, and dissemination, and to the stakeholders
through publication on the Group’s website and the
websites of each entity within the organization. These
policies are mandatory for all staff and are made
available to them upon hiring in a shared folder. After
hiring, training sessions on the regulations stipulated
in these procedures are conducted anually or as
required by management or in response to specific
situations. At the SERV level, two training sessions are
held each year. Additionally, at the DEER level, training
is conducted annually as well as during specific
periods, with these training sessions being mandated
as explicit measures in Investigation Reports. Besides
the annual training activity, EFSA employees receive
ethics training through periodic tests conducted via
the Training Qdesk platform.
All the Electrica Group’s policies comply with the
provisions of the United Nations Convention.
Violations of these policies may constitute a
disciplinary breach, which will be reviewed by the
Disciplinary Committee in the case of employees,
or a breach of contractual obligations for other
collaborators or contractual partners. The policies
are approved by the company’s highest governing
body, namely the Board of Directors.
ESRS 2 MDR-A
Electrica implements a set of actions to manage
material
sustainability
matters
in
corporate
governance. These actions are structured in a way
that prevents, mitigates, and remedies current and
potential impacts, addresses relevant risks and
opportunities, and contributes to achieving business
conduct
objectives.
Regarding
corporate
culture
and
business
ethics, in 2024, the Electrica Group continued the
implementation and monitoring of the Code of
Conduct and all other applicable policies at Group
level.
In 2024, some of EFSA’s employees participated
in
various
courses,
conferences,
and
learning
programs in the field of sustainability to support
the
implementation
of
ESG
strategies
at
the
organizational level. Some of these are as follows:
• Internal workshops organized on ESG topics,
focusing on subjects such as double materiality
assessment, taxonomy, and other key aspects of
sustainability;
• ESG
training
courses
aimed
at
deepening
knowledge of the fundamental principles of
corporate sustainability;
• Participation in dedicated conferences (ESG from
A to Z, ZF ESG Summit 2024 – May 15) discussing
current trends and best practices in ESG;
• IBR course “ESG Reporting Regulations and
Requirements: Expanding Corporate Reporting
through the New EU Requirements.”
To align with the best corporate governance practices,
presentations and training sessions were organized
for employees, aiming to raise awareness about
ethics and business integrity issues. Through these
initiatives, employees were familiarized with reporting
mechanisms for irregularities and the importance
of adhering to responsible conduct principles.
It emphasized the importance of ensuring easy
access to secure reporting channels for breaches,
thus strengthening a transparent and responsible
work environment. Additionally, the independence
criterion for the Board of Directors’ members was
maintained, with four independent members out of
seven total members, ensuring balanced corporate
governance in line with international requirements.
To achieve the goal of zero corruption incidents,
the company continued to implement mechanisms
for identifying and assessing corruption-related
risks, following a rigorous analysis and prevention
process. As part of this effort, training sessions
were conducted for all employees to strengthen
the organizational culture based on integrity and
responsibility. Additionally, the anonymous reporting
system was promoted to ensure that employees
are informed and feel protected when reporting
potential irregularities. Through these measures, the
company reinforced its ability to prevent and combat
corruption, ensuring an ethical business environment
in
compliance
with
regulatory
requirements.
Regarding cybersecurity, the company maintained
a governance structure dedicated to managing this
area, implementing protective measures adapted
to the new digital challenges. In 2024, sessions were
held to familiarize employees with cybersecurity
risks, and internal procedures (where applicable)
were updated to reflect the best industry practices.
Through these actions, the company aims to ensure
a high level of data protection and prevent incidents
that could impact on its operations.
The company organized an annual awareness
presentation
on
the
implications
of
ESG
for
all employees, aiming to increase the level of
information and integrate sustainability principles
into daily operations. The session covered topics
related to business ethics, environmental impact,
and social responsibilities, all of which are part of the
sustainable
development
strategy.
Additionally, an annual evaluation of suppliers
based on ESG criteria was conducted to ensure their
compliance with sustainability and business ethics
standards. The evaluation included an analysis of
the suppliers’ environmental and social policies,
verification of regulatory compliance and best
practices, and the establishment of improvement
plans for partners who require adjustments to align
with the company’s requirements.
New specific actions regarding corporate governance
and business conduct are also outlined in the new
Sustainability Strategy adopted by the Group at the
end of last year for the 2025-2030 period. According
to this strategy, one of the six sustainability pillars
identified at the Group level is the Pillar of Sustainable,
Responsible, and Ethical Business Practices.
ESRS2 MDR-T
Through the 2024-2030 Sustainability Strategy, the
Electrica Group has set multiple targets to achieve
its
corporate
governance,
anti-corruption,
and
cybersecurity
objectives.
One key goal for the Electrica Group is to integrate
ESG
principles
into
the
decision-making
and
operational structure. To this end, the target has been
set to include ESG KPIs in executive management,
with gradual expansion until 2030. This measure
aims to ensure that sustainability becomes a key
factor in the company’s decision-making process.
Progress is evaluated annually by monitoring the
implementation of the KPIs and adjusting measures
to improve ESG integration.
To strengthen supplier accountability regarding
sustainability, the Group has set the objective of
conducting an annual evaluation of suppliers based
on ESG criteria, with the aim of evaluating all suppliers
by 2030. This measure is important for reducing
risks in the supply chain and promoting ethical and
sustainable practices throughout the whole value
chain.
As part of its corporate governance objectives, the
company has a target that by 2026, at least 33% of
the members of the Board of Directors will be women.
In 2024, the ELSA Board achieved a 28.57% target. This
measure is crucial for promoting diversity and equal
opportunities at the decision-making level. Progress
is monitored periodically, and necessary measures
to achieve this goal include strategic recruitment
and leadership development programs for women.
To ensure transparency and compliance with
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ethical principles, Electrica has set the target of
organizing annual ESG awareness sessions for all
employees, starting from 2024. These sessions aim to
enhance employees’ understanding of sustainability
responsibilities and encourage the integration of the
best ESG practices into daily operations.
To prevent corruption, the Group has set the objective
of maintaining a zero confirmed corruption incidents
level starting from 2024 throughout the end of the
strategy period, along with the establishment of an
Anti-Fraud Department. This goal is supported by
a robust anonymous reporting system and annual
compliance risk assessments.
To strengthen cybersecurity, the company has set
the objective of running annual awareness and
training programs for employees from 2024 to
2030. These initiatives aim to reduce vulnerabilities,
increase awareness of cybersecurity risks, and
implement best practices for data protection and IT
infrastructure
security.
Progress towards achieving these targets is monitored
through internal audits, compliance reports, and
periodic performance indicator analysis. The Group
tracks the effectiveness of its actions through
continuous monitoring and annual assessments to
measure progress toward the established goals.
Performance against these targets is reported
annually
through
sustainability
reporting.
The
indicators are analyzed to verify whether progress
aligns with the initial plan and to identify any
necessary
adjustments.
In terms of corporate governance and business
conduct, new targets are also set in the Group’s new
Sustainability Strategy adopted at the end of last year
for the 2025-2030 period, which identifies one of the
six sustainability pillars as „Sustainable, Responsible,
and Ethical Business Practices.” The development
of the new Strategy considered the results of
consultations with management representatives,
employees, suppliers, and business partners.
G1-2 Management of relationships with suppliers
Electrica Group has a set of policies and procedures
designed to ensure the compliance of its value chain
with its sustainability, ethics, and safety standards.
Electrica Group’s suppliers are contractually obligated
to adhere to the Code of Ethics and Business Conduct
of the subsidiary with whom the contract is signed
with. The adherence of suppliers, service providers,
and contractors to Electrica’s Code of Ethics and
Conduct, which ensures their accountability, integrity,
and proper conduct in business relationships, has
been identified as a positive impact based on the
double materiality assessment regarding corporate
governance.
A significant risk identified in the value chain is the
change in legislation regarding the procurement
of energy and natural gas, which may impose
additional costs and compliance risks for suppliers.
To manage this risk, Electrica implements measures
such
as
continuous
monitoring
of
applicable
regulations, informing suppliers about new legislative
requirements,
and
applying
strict
compliance
verification processes within the value chain.
In addition to the Code of Ethics and Business
Conduct, the company conducts the „Know Your
Business Partners (Clients and Suppliers)” initiative,
which contributes to identifying and assessing the
reputation, creditworthiness, and nature of potential
partners’ businesses before entering a contractual
relationship. Therefore, the Risk Management & Know
Your Customer Department, through its dedicated
personnel, ensures the following activities:
• performs the necessary checks on business
partners and applies customer due diligence
measures;
• ensures that all measures for identifying the
supplier/client are applied;
• conducts KYC (Know Your Customer) assessments
on business partners;
• participates in risk analysis regarding business
partners.
This procedure applies to both new and existing
partners, in cases where updates to previous
assessments
are
required.
In addition to the „Know Your Business Partners
Policy (clients and suppliers)”, products suppliers
are evaluated based on the „Supplier Evaluation and
Management Instruction”. As part of this process,
a self-assessment questionnaire is used, which,
among others, requests information related to
governance, such as the existence of an ethics and
business conduct code or a policy for preventing
money laundering. It should be noted that DEER is not
a reporting entity to the ONPCSB and does not have a
policy for preventing money laundering.
In addition to governance requirements, suppliers are
also evaluated based on social and environmental
criteria. They must demonstrate the implementation
of policies regarding environmental protection,
respect for workers’ rights, and the existence of
measures to reduce environmental impact.
In the case of EFSA, the company applies a due
diligence process in its relationships with clients and
suppliers to ensure legal compliance, risk reduction,
and adherence to the company’s principles of
ethics, responsibility, and sustainability. This process
includes standardized stages and procedures that
govern the selection, evaluation, and monitoring of
business partners, contributing to a functional supply
chain and meeting operational requirements.
This process is formalized through the „Business
Partner
Knowledge
Policy”
and
other
internal
operational procedures, such as the „Procurement
Management Procedure”, complemented by an
instruction that outlines environmental requirements
for suppliers/service providers, and the „Supplier
Evaluation and Management Procedure”.
The process begins with an initial evaluation of
business partners before entering a contractual
relationship. This evaluation involves collecting and
analyzing information about the partner’s identity,
financial situation, and reputation, using sources such
as the Trade Register, financial reports, checks on
the ultimate beneficiary, and the history of previous
relationships with EFSA. New partners are also verified
for compliance with applicable legislation regarding
money laundering prevention and combating the
financing of terrorism.
For
suppliers,
EFSA
implements
a
formalized
prequalification process, which includes completing
a
standardized
questionnaire.
This
document
evaluates aspects such as experience, turnover,
human resources, management system certifications
(ISO 9001, 14001, 45001), and the existence of internal
sustainability policies and anti-money laundering
measures.
Depending
on
the
score
obtained,
suppliers are deemed eligible to participate in
procurement procedures. Suppliers who do not
meet the established criteria are excluded from the
process.
During the contractual relationship, EFSA monitors
the performance of suppliers, focusing on meeting
deadlines, quality of deliveries, and fulfillment of
contractual obligations. At the end of the contract,
EFSA conducts a formal evaluation, documented
through a report. This evaluation determines the
supplier’s performance classification – excellent,
good, or poor. Suppliers classified as poor are
excluded for a minimum period of one year from the
list of potential partners for similar procurements.
In
addition,
EFSA
integrates
environmental
requirements throughout the supplier relationship,
in accordance with the „Instruction regarding
environmental requirements for suppliers.” Partners
are required to comply with environmental legislation,
manage waste efficiently, prevent pollution, and
implement eco-friendly solutions. Suppliers who
possess an environmental management system
certified according to the ISO 14001:2015 standard
have a competitive advantage in the selection
process. Furthermore, functional and performance
requirements
regarding
the
environment
are
included in the procurement documentation and
verified during the offer evaluation process.
Electrica promotes the integration of local suppliers
into the value chain, contributing to regional
economic development and reducing the logistical
footprint. At the same time, the company considers
supporting vulnerable suppliers, particularly SMEs
that may face financial difficulties. For these suppliers,
measures such as establishing flexible payment
terms or providing support to meet compliance and
sustainability requirements may be applied.
At ELSA, the Risk Management & KYC (Know Your
Customer) Department conducts assessments upon
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request for the purpose of signing contracts. These
assessments include the following activities:
• Conducting the necessary checks regarding the
business partner’s identity and applying Know
Your Customer (KYC) measures;
• Ensuring the full implementation of identification
and verification measures for suppliers and
clients, in accordance with legal regulations and
internal procedures;
• Conducting
KYC
evaluations
for
business
partners;
• Participating in the risk analyses associated with
business partners.
Another tool used to ensure transparency and
efficiency in the relationship with suppliers is the
Procurement Procedure. This procedure requires
that suppliers of the companies within the Group
be evaluated and validated in advance by the legal
department, in accordance with specific procedures,
including, but not limited to, the evaluation of
potential conflicts of interest, ongoing litigations, etc.
Furthermore, the Electrica Group has an Integrity
Whistleblowing Policy and has implemented a
reporting mechanism for suspicions of violations,
whereby suppliers, contractors, subcontractors, and
other stakeholders interacting with the Electrica
Group can anonymously report any breach of ethical
principles, irregularities, or any legal violations that
could harm the reputation or business of company,
or lead to legal sanctions.
To assess the compliance and performance of its
suppliers on a constant basis, Electrica conducts
annual audits.
Electrica invests in developing the competencies of
its procurement teams through dedicated training
programs.
Regarding the Payment Delay Prevention Policy,
especially towards SMEs, its main provisions refer to
the following:
A.
types of procurement procedures:
• orders based on framework agreements;
• emergency purchases for addressing urgent
situations;
• purchases through competitive procedures;
• direct purchases;
• direct grants.
B.
avoidance of conflicts of interests:
The Non-core Procurement Service (NCPS) takes all
necessary measures to avoid situations that could
lead to conflicts of interest and/or unfair competition
and will seek support in this regard from the
Compliance and Control Department or the Ethics
Advisor.
Additionally, individuals who have connections with
one of the bidders/candidates or subcontractors
(such
as
holding
shares,
being
employees,
collaborators, etc.), or who have relatives in any of
the aforementioned statuses, are excluded from the
offer evaluation process. Furthermore, individuals
who are found to have an interest that could affect
their impartiality during the offer evaluation process
are also excluded.
To
ensure
internal
control
elements
related
to increasing transparency and monitoring of
acquisitions, NCPS develops and maintains a protocol
for interacting with internal clients and bidders
based on the principles of transparency and equal
treatment, while also monitoring their compliance.
C.
Types of contracts/agreements with suppliers
D.
Preparation of procurement requests
E.
Estimating the procurement value
F.
Competitive procedure
G.
Evaluation of offers and negotiation with
s u p p l i e r s
H.
Closing the contract and notifying the
s u p p l i e r
I.
Cancelling or restarting the procurement
p r o c e d u r e
J.
Guarantees
Additionally, all parties involved in the procurement
process and their specific responsibilities are listed.
The
Transparency
Policy
mentions
several
stakeholders for whom the transparency relationship
is important, including business partners. Thus, the
organization, through its staff, promotes open and fair
competition, conducting contractual relationships in
a transparent, honest, and legal manner.
The organization uses clauses related to integrity and
transparency in all of its commercial relationships
with public and private entities and takes an objective
approach to the issues of interest to its partners and
clients.
G1-3 Prevention and detection of corruption and bribery
To prevent corruption and bribery and establish a
mechanism for reporting suspicions of misconduct,
the Group applies the Zero-Tolerance Policy for
Corruption, Fraud, and Money Laundering, and the
Integrity Whistleblowing Policy.
Both policies are communicated both internally and
externally, and are applicable to suppliers, clients,
and other business partners.
At the beginning of the collaboration, employees are
trained and sign documents detailing their specific
responsibilities related to the prevention of bribery
and corruption. This includes the obligation not to
request or accept material advantages in exchange
for performing their duties and not to offer gifts or
other benefits to individuals involved in business
relationships with the company, in accordance
with our Code of Ethics and Business Conduct and
our Zero-Tolerance Policy for Corruption, Fraud, and
Money Laundering.
Corruption risks are identified at the company level
through the Risk Management Procedure.
The Ethics Advisor, together with the Risk Management
Department/Responsible for risk management at the
organizational level conduct a process of identifying
corruption risks and vulnerable areas whenever
major changes occur in the organization, such as
changes in the majority shareholder, appointment
of a new board of directors, appointment of a new
CEO, company and Group restructuring, entry into
new markets, listing on new stock exchanges, and
similar events. The sources for identifying risks and
vulnerable areas include:
• Complaints made under the Ethical Reporting
Procedure, irregularities, or any legal violations
through professional alert devices (integrity
warning), communicated by the Internal Audit
Department of the organization, provided upon
the written request of the Ethics and Compliance
Advisor.
• Reports from the Internal Audit Department
regarding
the
disciplinary
actions
taken,
provided upon the written request of the Ethics
and Compliance Advisor.
• Reports from the Human Resources Department
regarding disciplinary actions taken, provided
upon the written request of the Ethics and
Compliance Advisor.
• Information provided by the Legal Department
about the lawsuits in which the organization is
involved, including those related to holding the
organization accountable, or holding specific
staff members accountable by the organization,
in order to repair any damage caused.
• Press monitoring reports on public allegations
regarding the organization.
The Ethics Advisor, in collaboration with the Risk
Management
Department/Responsible,
conducts
an integrated analysis of the indicated sources and
creates a list of risk factors and vulnerable areas.
This list is validated during consultations with other
departments within the organization.
Upon the request of the Ethics Advisor, the Department/
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Responsible for Risk Management updates the
existing risk register with the identified corruption
risks, specifying the risk factor, the description of the
risk, the likelihood of the risk occurring, the impact
in case the risk materializes, the preventive and
mitigating measures, the evaluation of the degree of
implementation of the proposed measures, and the
calculation of the residual risk.
Once the risks are identified, they are assessed based
on the likelihood of occurrence and the potential
impact. This evaluation allows for the calculation of
the level of exposure to risk and the prioritization of
preventive measures.
Based on the evaluations performed, the Ethics and
Compliance department collaborates with the Risk
Management team to develop an action plan aimed
at preventing and reducing the identified risks. The
implementation of the plan is monitored by the
Ethics and Compliance Department, which assesses
the effectiveness of the measures implemented to
prevent and reduce corruption risks.
Also, any employee, client, supplier, contractor,
subcontractor, or other parties involved with the
company’s activities can file a report under the
Policy on Reporting Ethical Violations, Irregularities,
or Any Breach of the Law through professional alert
mechanisms (whistleblowing). The report can be
made via a dedicated, independent service operator,
by phone, to a dedicated hotline, by email to a secure
address for the protection of the whistleblower
and the company, online via the platform https://
managementparticipativ.info.ro/electrica, or directly
to the attention of the Whistleblowing Policy Advisor.
To ensure an objective and independent investigation
process, the members of the investigation committee
are required not to be part of the management
chain of the activities related to the subject of the
investigation.
The Ethics Advisor reports directly to the Board of
Directors. Other departments (such as the Control
and Compliance Department, the Legal Department,
the Internal Audit Department, the Risk Management
Department, and the Human Resources Department)
can identify risks and provide support to the Ethics
Advisor. Additionally, the Internal Audit Department is
directly subordinated to the Board of Directors.
Complaints are received by the dedicated operator,
who, after anonymizing the complaint, forwards
them to the people responsible in the company. The
handling and investigation of the issues reported
by the integrity whistleblowers are carried out by
the Internal Audit Department and other specialized
departments within the company, ensuring the
avoidance of any conflicts of interest and the
application of the principles and norms established
by the Code of Ethics and Business Conduct.
The analysis of the complaints received from the
integrity whistleblowers is the main duty of the
specialized departments within the company and is
treated as a priority.
The investigation or analysis of the issues mentioned
in the whistleblower reports is handled objectively
and independently, and the observed results are
reported to the highest management level in the
company, specifically to the Board of Directors (BoD).
The Ethics Officer directly reports to the BoD, and
their activity is presented to the BoD. Upon the BoD’s
request, any documents or educational materials
prepared may be made available.
Additionally, the activities of the Internal Control,
Risk Management, and Internal Audit departments
regarding the identification and presentation of
risks, as well as cases of corruption, bribery, and the
giving or receiving of bribes, are presented to the BoD
whenever necessary.
All Group policies are applicable to the members of
the Board of Directors as well.
The results of the risk management are included in
an annual risk management report, accompanied by
recommendations, where applicable.
The information about internal channels for identifying
and monitoring ethical breaches, as well as reporting
policies, is accessible on Electrica’s website, ensuring
that all employees and stakeholders can easily
access and correctly understand them.
The Ethics Officer conducts training programs for all
employees every year, based on the risks and needs
identified within the organization. Additionally, the
officer provides consultancy whenever necessary in
the cases analyzed by other departments.
The training program is aimed at all employees of the
company, regardless of their seniority level within the
organization or any department-specific limitations.
Electrica Group does not run structured training
programs on combating corruption or bribery,
whether offered or mandated by the company.
However, the Group ensures that the provisions of
the Policy on Zero-Tolerance towards Corruption,
Fraud, and Money Laundering (with special attention
to gifts) are brought to the attention of its employees.
This process takes place annually through email
notification. These communications are addressed to
all staff, focusing primarily on departments exposed
to risks (procurement, sales, management) and
include real-life examples and legislative references
concerning corruption.
The anti-corruption policies and procedures are
publicly accessible to all interested parties on the
parent company ELSA’s website and those of its
subsidiaries. Additionally, the members of the BoD
sign their commitment to comply with these policies
upon assuming their mandates.
G1-4 Incidents of corruption or bribery
Electrica is committed to maintaining a high standard
of ethics and compliance, adhering to applicable
laws, as well as the values and internal standards
reflected in clear policies and procedures.
In the reporting period, no incidents of corruption
or bribery have been recorded within the Group.
Electrica’s
commitment
to
transparency
and
integrity is reflected in the constant monitoring of
activities and in the periodic training of employees
regarding compliance with conduct and compliance
standards.
Also, the company reports that in 2024 there have
been no convictions nor fines imposed for violations
of
anti-corruption
laws,
bribery,
or
corruption
offenses.
In 2024, there were no disciplinary measures taken,
and no significant breaches related to corruption
were recorded. However, the company is prepared
to act quickly and decisively should such situations
arise.
Regarding our value chain, no incidents of corruption
directly involving the company’s employees or
business partners were identified in 2024. Electrica
remains committed to acting with integrity in all its
operations and will continue to develop proactive
measures to prevent and combat any form of
corruption or non-compliant behavior.
No confirmed incidents occurred in which the
company’s employees were dismissed or subject
to disciplinary procedures for corruption or bribery
incidents.
Moreover, no confirmed incidents have occurred
involving contracts with business partners that were
terminated or not renewed due to violations related
to corruption or bribery.
No public cases of corruption or bribery involving the
company and its employees were reported during
the reporting period.
G1-6 Payment practices
Payment practices are regulated through the Policy
on Preventing Delays in Payments, especially towards
SMEs.
The
Transparency
Policy
highlights
several
stakeholders for whom transparency in relationships
is important, including business partners (Chapter
6). Thus, the organization, through its personnel,
promotes open and fair competition, conducting
contractual relationships in a transparent, honest
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and legal manner. The objective of these procedures
is to ensure that payment operations involving the
company are conducted under optimal conditions
and in full compliance with legal requirements. They
establish rules and procedures regarding deadlines,
methods, and payment conditions, contributing to
clarity and transparency in financial transactions.
Electrica uses clauses regarding integrity and
transparency in all its commercial relationships
with both public and private entities and takes an
objective approach to issues of interest to its partners
and clients.
At Electrica level, invoices are paid according to the
terms specified in the contract (between 5 and 30
working days). Internal procedures include essential
elements such as: authorized personnel who can
submit payment lists for management approval;
payment deadlines, which, in accordance with
contracts signed with suppliers or other collaborators,
are recorded in the ERP system; payment methods
utilized by companies, detailing the accepted
methods, such as bank transfer, credit card, check,
or other digital financial instruments; approval and
processing procedures, describing the operational
flow for invoice validation, payment authorization,
and their submission to financial departments; and
special clauses and exceptions, specifying how
unforeseen situations are handled, such as financial
difficulties of the supplier and/or client, invoice
disputes, or force majeure events. Furthermore, the
implementation of these procedures and the use
of financial management systems provide Electrica
Group companies with an efficient mechanism to
prevent delays, ensuring proper management of
payment operations. Thus, companies can achieve
the following: improved cash flow by ensuring
timely collections, which contribute to maintaining
a healthy cash flow; reduced risk of non-payment,
as penalties and preventive measures deter delays;
strengthened commercial relationships, promoting
trust and mutual respect between partners; and legal
compliance, by adhering to regulations regarding
payment deadlines.
In the case of DEER, considering the fact that the
company is obliged to follow Law 99/2016 regarding
sector acquisitions, the standard payment terms
published when making a purchase resulting in a
contract (over 20,000 RON) are 120 days. There are
also some purchases for which, before initiating the
procurement procedure, a derogation for a 30-day
payment term has been approved (such as contracts
for administrative services such as security, elevator
maintenance, air conditioning maintenance, boiler
maintenance, etc.).
In the case of direct purchases, if no offers are
received with a 120-day payment term, approval for
a payment deviation is requested from the Director
of the Financial Division to allow orders with shorter
payment terms (30, 60, or 90 days).
Therefore, in 2024 the following payment terms were implemented at DEER:
OPEE
Payment
Contract Type
Supplier/Producer
Payment
type for
invoices
Payment term
since invoice
receipt
BRM
PMC
Proposed by the initiator
(supplier/producer)
Producer – SNN
In advance
5 working days
Contract EFET
OPCOM
PCCB-LE-flex
Standard contract OPCOM
specific provisions
regarding payment terms
and methods established
by the initiator (producer/
supplier)
Producer-Modern Calor
In advance
3 working days
Supplier Energy Distribution
Services
After delivery
6 working days
Producer-UAT Iași
In advance
2 working days
Producer-CE Oltenia
In advance
8 working days
MACEE
Standard contract MACEE
OPCOM, as the sole
purchaser, it allocated the
energy offered for sale
in accordance with OUG
27/2002, along with its
subsequent amendments
and additions.
After delivery
5 working days
As such, payments to suppliers are made according
to the contractual clauses agreed upon. Thus,
payments are carried out based on the agreed
terms, with consideration given to the payment
deadlines as per the accounting records. This allows
for monitoring of the respective deadlines in terms
of the payment process. As of the date of this report,
there are no ongoing disputes regarding delayed
payments. Furthermore, by adopting well-structured
payment procedures, Electrica can optimize financial
relationships and reduce the negative impact of
delays on daily operations. The procedure is aligned
with the following legislative framework: HG 685/1999,
Accounting Law no. 82/1991, Order no. 3055/2009
on accounting regulations in line with European
directives, Law no. 571/2003 on the Fiscal Code, HG
no. 44/2004, Order no. 3512/2008, Law no. 31/1990 on
commercial companies, and Law 99/2016 on sectoral
procurements. The implementation and supervision
of the procedure are the responsibility of the Finance
Department and the Accounting Department. The
procedure is internally accessible and communicated
through the intranet of each subsidiary as well as
through internal communications at the Group level.
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STATEMENT FOR THE FINANCIAL YEAR
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ON THE CONSOLIDATED
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To the Shareholders of
SOCIETATEA ENERGETICĂ ELECTRICA S.A.
Qualified Limited Assurance Conclusion
We have conducted a limited assurance engagement on the Sustainability Statement of Societatea Energetică Electrica S.A and its
subsidiaries (hereafter the “Group”) as at December 31, 2024 and for the period from January 1, 2024 to December 31, 2024 (the
“Consolidated Sustainability Statement”), prepared by the Group with the social premises of the Parent Entity registered in
Romania, Address Bucharest, District 1, Street Grigore Alexandrescu, No. 9, Fiscal Identification Number RO 13267221, Trade
Register number J40/7425/2000.
Based on the procedures we have performed and the evidence we have obtained, except for the possible effects of the matter
referred to in the “Basis for Qualified Conclusion” section, nothing has come to our attention that causes us to believe that the
Consolidated Sustainability Statement of the Group is not prepared, in all material respects, in accordance with Ministry of Public
Finance Order 2844/2016, Chapter 7, section 7.3 implementing article 29(a) of the EU Directive 2013/34/EU, including:
•
compliance with the European Sustainability Reporting Standards (“ESRS”), including that the process carried out by the
Group to identify the information reported in the Consolidated Sustainability Statement (the “Process”) is in accordance
with the description set out in note ESRS 2 IRO-1 ‘Description of the processes to identify and assess material impacts,
risks and opportunities’; and
•
compliance of the taxonomy disclosures detailed in the Consolidated Sustainability Statement, section ‘Disclosures
pursuant to Article 8 of Regulation (EU) 2020/852 (Taxonomy Regulation)’, with the applicable reporting requirements of
Article 8 of EU Regulation 2020/852 (the “Taxonomy Regulation”).
Basis for Qualified Conclusion
We conducted our limited assurance engagement in accordance with International Standard on Assurance Engagements (ISAE) 3000
(Revised), Assurance Engagements other than Audits or Reviews of Historical Financial Information.
Our responsibilities under this standard are further described in the Auditor’s Responsibilities section of our report.
We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our qualified conclusion.
As of December 31, 2024, the financial auditor's report on the Group's consolidated financial statements prepared in accordance
with Order 2844/2016 , with subsequent amendments includes the following qualification:
“As at December 31, 2024, Group’s trade receivables of RON 3,675,688 thousand include an amount of RON 979,503 thousand
representing trade receivables accruals for which we have not received sufficient and appropriate audit evidence. We were unable
to satisfy ourselves concerning these trade receivables accruals by means of other auditing procedures. As a result of these matters,
we were unable to determine whether any adjustments might have been found necessary in respect of the aforementioned trade
receivables accruals and the elements making up the statement of consolidated comprehensive income, consolidated statement
of changes in equity and consolidated statement of cash flows.”
2
Consequently, we were not able to determine whether any adjustments might have been necessary in respect to the key
performance indicator "Turnover" presented in the Consolidated Sustainability Report, section ‘Disclosures pursuant to Article 8 of
Regulation (EU) 2020/852 (Taxonomy Regulation)’, in accordance with the reporting requirements of Article 8 of Regulation (EU)
2020/852 ("Taxonomy Regulation"), as a result of this matter.
Other Matters – Comparative Information
Our assurance engagement does not extend to comparative information in respect of earlier periods. Our conclusion is not modified
in respect of this matter.
Identification of Applicable Criteria
The Consolidated Sustainability Statement was prepared by the Administrators of the Group in order to satisfy the requirements of
Ministry of Public Finance Order 2844/2016, Chapter 7, section 7.3 implementing article 29(a) of the EU Directive 2013/34/EU,
including:
•
compliance with the European Sustainability Reporting Standards (“ESRS”), including that the process carried out by the
Group to identify the information reported in the Consolidated Sustainability Statement is in accordance with the
description set out in note ESRS 2 IRO-1 ‘Description of the processes to identify and assess material impacts, risks and
opportunities’; and
•
compliance of the taxonomy disclosures detailed in the Section ‘Disclosures pursuant to Article 8 of Regulation (EU)
2020/852 (Taxonomy Regulation)’ of the Consolidated Sustainability Statement, with the applicable reporting
requirements of Article 8 of EU Regulation 2020/852 (the “Taxonomy Regulation”).
Inherent Limitations in Preparing the Consolidated Sustainability Statement
The criteria, nature of the Consolidated Sustainability Statement , and absence of long-standing established authoritative guidance,
standard applications and reporting practices allow for different, but acceptable, measurement methodologies to be adopted which
may result in variances between entities. The adopted measurement methodologies may also impact the comparability of
sustainability matters reported by different organizations and from year to year within an organization as methodologies evolve.
In reporting forward looking information in accordance with ESRS, the Administrators of the Group are required to prepare the
forward-looking information on the basis of disclosed assumptions about events that may occur in the future and possible future
actions by the Group. Actual outcome is likely to be different since anticipated events frequently do not occur as expected.
In determining the disclosures in the Consolidated Sustainability Statement, the Administrators of the Group interprets undefined
legal and other terms. Undefined legal and other terms may be interpreted differently, including the legal conformity of their
interpretation and, accordingly, are subject to uncertainties.
We draw your attention to the following specific limitations discussed in the Consolidated Sustainability Statement :
•
Environmental reporting as applied by all companies includes information based on climate-related scenarios that are
subject to inherent uncertainty because of incomplete scientific and economic knowledge about the likelihood, timing, or
effect of possible future physical and transitional climate-related impacts. For the avoidance of doubt, the scope of our
engagement and our responsibilities will not include performing work necessary for any assurance on the reliability,
proper compilation, or accuracy of the prospective information.
•
Any supply chain emissions metrics listed in the Consolidated Sustainability Statements may include information provided
by suppliers and third-party sources. Our procedures will not include obtaining assurance over the information provided
by suppliers or third parties.
•
The Consolidated Sustainability Statement may include metrics that are derived from reported events relating to
employees and subcontractors. As such, our testing may not identify misstatements relating to completeness, for example
in instances where events may have occurred but have not been reported.
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3
Responsibility of the Administrators of the Group
Administrators of the Group are responsible for designing, implementing, and maintaining a process to identify the information
reported in the Consolidated Sustainability Statement in accordance with the ESRS and for disclosing this process in note ESRS 2
IRO-1 ‘Description of the processes to identify and assess material impacts, risks and opportunities’ of the Consolidated
Sustainability Statement .
This responsibility includes:
•
understanding the context in which the Group’s activities and business relationships take place and developing an
understanding of its affected stakeholders;
•
the identification of the actual and potential impacts (both negative and positive) related to sustainability matters, as well
as risks and opportunities that affect, or could reasonably be expected to affect, the entity’s financial position, financial
performance, cash flows, access to finance or cost of capital over the short-, medium-, or long-term;
•
the assessment of the materiality of the identified impacts, risks and opportunities related to sustainability matters by
selecting and applying appropriate thresholds; and
•
developing methodologies and making assumptions that are reasonable in the circumstances.
Administrators of the Group are further responsible for the preparation of the Consolidated Sustainability Statement , in accordance
with Ministry of Public Finance Order 2844/2016, Chapter 7, section 7.3 implementing article 29(a) of the EU Directive 2013/34/EU,
including:
•
compliance with the ESRS;
•
preparing the taxonomy disclosures of the Consolidated Sustainability Statement, Section ‘Disclosures pursuant to Article
8 of Regulation (EU) 2020/852 (Taxonomy Regulation)’ in compliance with Article 8 of EU Regulation 2020/852 (the
“Taxonomy Regulation”);
•
designing, implementing and maintaining such internal controls that management determines are necessary to enable the
preparation of the Consolidated Sustainability Statement that is free from material misstatement, whether due to fraud
or error; and
•
the selection and application of appropriate sustainability reporting methods and making assumptions and estimates
about individual sustainability disclosures that are reasonable in the circumstances.
Those charged with governance are responsible for overseeing the Group’s sustainability reporting process.
Auditor’s Responsibility
Our objectives are to plan and perform the assurance engagement to obtain limited assurance about whether the Consolidated
Sustainability Statement is free from material misstatement, whether due to fraud or error, and to issue a limited assurance report
that includes our conclusion.
Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably
be expected to influence decisions of users taken on the basis of the Consolidated Sustainability Statement as a whole.
As part of a limited assurance engagement in accordance with ISAE 3000 (Revised) we exercise professional judgement and
maintain professional scepticism throughout the engagement.
The procedures performed in a limited assurance engagement vary in nature and timing from, and are less in extent than for, a
reasonable assurance engagement. Consequently, the level of assurance obtained in a limited assurance engagement is
substantially lower than the assurance that would have been obtained had a reasonable assurance engagement been performed.
Our responsibilities in respect of the Consolidated Sustainability Statement , in relation to the Process, include:
•
Obtaining an understanding of the Process but not for the purpose of providing a conclusion on the effectiveness of the
Process, including the outcome of the Process;
4
•
Designing and performing procedures to evaluate whether the Process is consistent with the Group’s description of its
Process, as disclosed in note ESRS 2 IRO-1 ‘Description of the processes to identify and assess material impacts, risks and
opportunities’.
Our other responsibilities in respect of the Consolidated Sustainability Statement include:
•
Obtaining an understanding of the entity’s control environment, processes and information systems relevant to the
preparation of the Consolidated Sustainability Statement but not evaluating the design of particular control activities,
obtaining evidence about their implementation or testing their operating effectiveness;
•
Identifying disclosures where material misstatements are likely to arise, whether due to fraud or error.
•
Designing and performing procedures responsive to disclosures in the Consolidated Sustainability Statement where
material misstatements are likely to arise. 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.
Our Independence and Quality Management
We complied with the applicable independence and other ethical requirements of the International Code of Ethics for Professional
Accountants (including International Independence Standards) issued by the International Ethics Standards Board for Accountants
(the “Code”), together with the ethical requirements that are relevant to our assurance engagement of the Consolidated
Sustainability Statement in Romania, including Law 162/2017 with subsequent amendments, and we have fulfilled our other ethical
responsibilities in accordance with these requirements and the IESBA Code. The Code is founded on fundamental principles of
integrity, objectivity, professional competence and due care, confidentiality and professional behavior.
We applied International Standard on Quality Management (ISQM) 1, Quality Management for Firms that Perform Audits or
Reviews of Financial Statements, or Other Assurance or Related Services Engagements, and accordingly maintain a comprehensive
system of quality control including documented policies and procedures regarding compliance with ethical requirements,
professional standards and applicable legal and regulatory requirements.
Summary of Work Performed
A limited assurance engagement involves performing procedures to obtain evidence about the Consolidated Sustainability
Statement .
The nature, timing and extent of procedures selected depend on professional judgement, including the identification of disclosures
where material misstatements are likely to arise, whether due to fraud or error, in the Consolidated Sustainability Statement.
In conducting our limited assurance engagement, with respect to the Process, we:
•
Obtained an understanding of the Process by:
-
performing inquiries to understand the sources of the information used by management (e.g., stakeholder
engagement, business plans and strategy documents; and
-
reviewing the Group’s internal documentation of its Process; and
•
Evaluated whether the evidence obtained from our procedures about the Process implemented by the Group was
consistent with the description of the Process set out in note ESRS 2 IRO-1 ‘Description of the processes to identify and
assess material impacts, risks and opportunities’.
In conducting our limited assurance engagement, with respect to the Consolidated Sustainability Statement, we:
•
Obtained an understanding of the Group’s reporting processes relevant to the preparation of its Consolidated
Sustainability Statement by:
-
performing inquiries to understand the Group’s control environment, processes and information systems
relevant to the preparation of the Consolidated Sustainability Statement;
488
489
INDEPENDENT AUDITOR’S LIMITED ASSURANCE REPORT ON THE CONSOLIDATED SUSTAINABILITY STATEMENT FOR THE FINANCIAL YEAR 2024
INDEPENDENT AUDITOR’S LIMITED ASSURANCE REPORT ON THE CONSOLIDATED SUSTAINABILITY STATEMENT FOR THE FINANCIAL YEAR 2024
ELECTRICA 2024 ANNUAL REPORT
ELECTRICA 2024 ANNUAL REPORT
5
•
Evaluated whether material information identified by the Process to identify the information reported in the Consolidated
Sustainability Statement is included in the Consolidated Sustainability Statement;
•
Evaluated whether the structure and the presentation of the Consolidated Sustainability Statement is in accordance with
the ESRS;
•
Performed inquires of relevant personnel and analytical procedures on selected disclosures in the Consolidated
Sustainability Statement;
•
Performed substantive assurance procedures based on a sample basis on selected disclosures in the Consolidated
Sustainability Statement;
•
Obtained evidence on the methods for developing material estimates and forward-looking information and on how these
methods were applied;
•
Obtained an understanding of the process to identify taxonomy-eligible and taxonomy-aligned economic activities and the
corresponding disclosures in the Consolidated Sustainability Statement ;
We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our qualified conclusion.
Răzvan Ungureanu, Audit Partner
Registered in the Electronic Public Register of Financial
Auditors and Audit Firms under number AF 4866
On behalf of:
DELOITTE AUDIT SRL
Registered in the Electronic Public Register of Financial
Auditors and Audit Firms under number FA 25
The Mark Building, 84-98 and 100-102 Calea Griviței, 9th Floor, District 1
Bucharest, Romania
11 April 2025
For signature, please refer to the original
signed Romanian version.
490
491
INDEPENDENT AUDITOR’S LIMITED ASSURANCE REPORT ON THE CONSOLIDATED SUSTAINABILITY STATEMENT FOR THE FINANCIAL YEAR 2024
INDEPENDENT AUDITOR’S LIMITED ASSURANCE REPORT ON THE CONSOLIDATED SUSTAINABILITY STATEMENT FOR THE FINANCIAL YEAR 2024
ELECTRICA 2024 ANNUAL REPORT
ELECTRICA 2024 ANNUAL REPORT
SEPARATE FINANCIAL STATEMENTS
as at and for the year ended
31 December 2024
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
(All amounts are in RON, if not otherwise stated)
Free translation from Romanian, which is the official and binding version
494
495
ELECTRICA 2024 ANNUAL REPORT
ELECTRICA 2024 ANNUAL REPORT
Separate statement of financial position
496
Separate statement of profit or loss
498
Separate statement of comprehensive income
499
Separate statement of changes in equity
500
Separate statement of cash flows
502
Notes to the separate financial statements
Basis of preparation
1.
Reporting entity and general information
504
2.
Basis of accounting
507
3.
Functional and presentation currency
507
4.
Use of judgments and estimates
507
Accounting policies
5.
Basis of measurement
508
6.
Changes in significant accounting policies
508
7.
Significant accounting policies
508
8.
Adoption of new and revised standards
517
Performance for the year
9.
Revenue, other income and operating expenses
519
10.
Net finance income
519
11.
Earnings per share
520
Employee benefits
12.
Short-term employee benefits
521
13.
Post-employment and other long-term employee benefits
521
14.
Employee benefit expenses
525
Contents
SEPARATE FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 DECEMBER 2024
PREPARED IN ACCORDANCE WITH OMFP NO. 2844/2016
Long-term bank loans
15.
Bank borrowings and overdrafts
525
Income tax
16.
Income tax
527
Assets
17.
Trade receivables
529
18.
Other receivables
531
19.
Cash and cash equivalents
531
20.
Property, plant and equipment
532
21.
Intangible assets
534
22.
Investments in subsidiaries
535
23.
Loans granted to subsidiaries
536
Equity and liabilities
24.
Capital and reserves
541
25.
Trade payables
544
26.
Other payables
544
27.
Provisions
545
Financial instruments
28.
Financial instruments - fair values and risk management
545
Other information
29.
Related parties
550
30.
Contingencies
554
31.
Commitments
556
32.
Subsequent events
557
SEPARATE FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 DECEMBER 2024
PREPARED IN ACCORDANCE WITH OMFP NO. 2844/2016
496
497
ELECTRICA 2024 ANNUAL REPORT
ELECTRICA 2024 ANNUAL REPORT
Note
31 December
2024
31 December
2023
ASSETS
Non-current assets
Property, plant and equipment
20
178,600,607
145,084,285
Intangible assets
21
1,150,546
1,112,707
Goodwill
21
1,446,450
1,446,450
Investments in subsidiaries
22
2,342,374,772
2,309,928,230
Investments in associates
23
22,500
16,637,710
Other investments
7,000,000
7,000,000
Loans granted to subsidiaries – long term
24
756,325,000
1,279,262,987
Right of use assets
17,085,927
4,013,286
Total non-current assets
3,304,005,802
3,764,485,655
Current assets
Cash and cash equivalents
19
8,013,268
19,154,241
Trade receivables
17
1,935,197
1,747,406
Other receivables
18
31,081,746
30,198,686
Loans Granted to subsidiaries - cash pool
29
482,860,094
567,646,477
Inventories
2,836
2,836
Prepayments
1,950,406
1,014,231
Current profit tax
141,967
-
Loans granted to subsidiaries – short term
24
942,920,800
89,659,699
Assets held for sale
279,655
279,655
Total current assets
1,469,185,969
709,703,231
Total assets
4,773,191,771
4,474,188,886
EQUITY AND LIABILITIES
Equity
Share capital
24
3,395,530,040
3,464,435,970
Share premium
24
103,049,177
103,049,177
Treasury shares reserve
24
-
(75,372,435)
Pre-paid capital contributions in kind from shareholders
24
7,366
7,366
Revaluation reserves
24
20,030,772
20,258,665
Legal reserves
24
235,159,000
231,595,694
Other reserves
24
188,913,575
224,105,807
Retained earnings
67,108,734
12,417,834
Total equity
4,009,798,664
3,980,498,078
(Continued on next page)
SEPARATE STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2024
Note
31 December
2024
31 December
2023
Liabilities
Non-current liabilities
Lease liability – long term
16,651,733
3,271,217
Employee benefits
13
1,619,994
1,326,142
Total non-current liabilities
18,271,727
4,597,359
Current liabilities
Current portion of long-term bank borrowings
15
236,042,214
216,768,248
Bank overdrafts
15
313,553,595
205,520,079
Cash pooling received from subsidiaries
29
170,101,192
47,764,298
Lease liability – short term
847,482
797,944
Trade payables
25
7,780,483
6,645,430
Other payables
26
6,969,151
3,332,232
Deferred revenue
62,582
285,152
Employee benefits
12, 13
8,279,710
7,254,982
Provisions
27
1,484,971
725,084
Total current liabilities
745,121,380
489,093,450
Total liabilities
763,393,107
493,690,809
Total equity and liabilities
4,773,191,771
4,474,188,886
The accompanying notes are an integral part of these separate financial statements.
Chief Executive Officer
Alexandru-Aurelian Chirita
Chief Financial Officer
Stefan Alexandru Frangulea
27 March 2025
SEPARATE STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2024
498
499
ELECTRICA 2024 ANNUAL REPORT
ELECTRICA 2024 ANNUAL REPORT
Note
2024
2023
Revenue
9
12,490,700
221,686
Other income
9
1,115,802
1,220,916
The cost of purchased electricity
(2,787,288)
-
Employee benefits
14
(35,239,370)
(30,295,203)
Depreciation and amortization
20, 21
(4,493,566)
(1,448,001)
Reversal of impairment of trade and other receivables, net
17, 18
-
568,609
Reversal of impairment/(Impairment) of property, plant and
equipment, net
20
1,900,668
853,836
Change in provisions for legal cases and non-compete clauses, net
27
(759,889)
322,045
Other operating expenses
9
(28,908,405)
(21,247,445)
Loss before finance result
(56,681,348)
(49,803,557)
Finance income
10
171,215,855
97,634,651
Finance costs
10
(43,336,117)
(29,737,518)
Net finance income
127,879,739
67,897,133
Share of results of associates
22
(10,009)
(38,825)
Profit before tax
71,188,382
18,054,751
Income tax benefit/expense
16
(1,864,627)
5,886,085
Profit for the year
69,323,755
23,940,836
Earnings per share
Basic and diluted earnings per share (RON)
11
0.20
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
27 March 2025
SEPARATE STATEMENT OF PROFIT OR LOSS FOR THE YEAR ENDED 31 DECEMBER 2024
Note
2024
2023
Profit for the year
69,323,755
23,940,836
Other comprehensive income
Items that will not be reclassified to profit or loss
Revaluation of property, plant and equipment
24
-
6,988,472
Tax related to revaluation of property, plant and equipment
16
-
(1,138,457)
Effect of the merger on the revaluation of property, plant and
equipment
24
-
2,701,689
Effect of the merger in deferred tax on the revaluation of tangible
fixed assets
16
-
(62,344)
Re-measurements of the defined benefit liability
13
98,256
(25,755)
Tax related to re-measurements of the defined benefit liability
16
(15,721)
4,121
Other comprehensive income, net of tax
82,535
8,467,726
Total comprehensive income
69,406,290
32,408,562
The accompanying notes are an integral part of these separate financial statements.
Chief Executive Officer
Alexandru-Aurelian Chirita
Chief Financial Officer
Stefan Alexandru Frangulea
27 March 2025
SEPARATE STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER 2024
500
501
ELECTRICA 2024 ANNUAL REPORT
ELECTRICA 2024 ANNUAL REPORT
(Continued on next page)
Note
Subscribed
and paid in
share capital
Share
premium
Treasury
shares
reserve
Capital
contributions
in kind from
shareholders
Revaluation
reserves
Legal
reserves
Other
reserves
Retained
earnings
Total equity
Balance at 1 January 2024
3,464,435,970
103,049,177
(75,372,435)
7,366
20,258,665
231,595,694
224,105,807
12,417,834
3,980,498,078
Comprehensive income
-
-
-
-
-
-
-
69,323,755
69,323,755
Profit for the year
-
-
-
-
-
-
-
-
-
Other comprehensive
income
-
-
-
-
-
-
-
82,535
82,535
Total comprehensive
income
-
-
-
-
-
-
-
69,406,290
69,406,290
Transactions with owners
of the Company
Contributions and
distributions
Reduction of share capital
and cancellation of own
shares
(68,905,930)
-
75,372,435
-
-
-
-
(6,466,505)
-
Dividends to the owners of
the Company
24
-
-
-
-
-
-
-
(39,999,343)
(39,999,343)
Total transactions with
owners of the Company
(68,905,930)
-
75,372,435
-
-
-
-
(46,465,848)
(39,999,343)
Other changes in equity
Set up of legal reserves
24
-
-
-
-
-
3,563,305
-
(3,563,305)
-
Transfer of other reserves
to retained earnings
(Dividend distribution from
other reserves)
24
-
-
-
-
-
-
(16,973,333)
16,973,333
-
Distribution of dividends
from other reserves
-
-
-
-
-
-
(18,218,899)
18,218,899
-
Transfer of revaluation
reserve to retained
earnings due to
depreciation and
disposals of property,
plant and equipment
-
-
-
-
(227,893)
-
-
227,893
-
Impact of IFRS16 Central
Finance migration
-
-
-
-
-
-
-
(106,360)
(106,360)
Balance at 31 December
2024
3,395,530,040
103,049,177
-
7,366
20,030,772
235,158,999
188,913,575
67,108,735
4,009,798,664
SEPARATE STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 DECEMBER 2024
Note
Subscribed
and paid in
share capital
Share
premium
Treasury
shares
reserve
Capital
contributions
in kind from
shareholders
Revaluation
reserves
Legal
reserves
Other
reserves
Retained
earnings
Total equity
Balance at 1 January 2023
3,464,435,970
103,049,177
(75,372,435)
7,366
11,806,704
229,435,101
224,105,807
38,908,798
3,996,376,488
Comprehensive income
Profit for the year
-
-
-
-
-
-
-
23,940,836
23,940,836
Other comprehensive
income
-
-
-
-
5,850,014
-
-
(21,634)
5,828,381
The effect of merger
-
-
-
-
2,639,345
-
-
-
2,639,345
Total comprehensive
income
-
-
-
-
8,489,360
-
-
23,919,202
32,408,562
Transactions with owners
of the Company
Contributions and
distributions
Dividends to the owners of
the Company
24
-
-
-
-
-
-
-
(39,999,343)
(39,999,343)
Total transactions with
owners of the Company
-
-
-
-
-
-
-
(39,999,343)
(39,999,343)
Other changes in equity
Set up of legal reserves
24
-
-
-
-
-
2,160,391
-
(2,160,391)
-
Transfer to other reserves
24
-
-
-
-
-
-
-
Transfer of revaluation
reserve to retained
earnings due to
depreciation and
disposals of property,
plant and equipment
-
-
-
-
(37,399)
-
-
37,399
-
The effect of merger
-
-
-
-
-
202
-
(8,287,831)
(8,287,629)
Balance at 31 December
2023
3,464,435,970
103,049,177
(75,372,435)
7,366
20,258,665
231,595,694
224,105,807
12,417,834
3,980,498,078
The accompanying notes are an integral part of these separate financial statements.
Chief Executive Officer
Alexandru-Aurelian Chirita
Chief Financial Officer
Stefan Alexandru Frangulea
27 March 2025
SEPARATE STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 DECEMBER 2024
502
503
ELECTRICA 2024 ANNUAL REPORT
ELECTRICA 2024 ANNUAL REPORT
Note
2024
2023
Cash flows from operating activities
Profit for the year
69,323,755
23,940,836
Adjustments for:
Depreciation
20
3,425,575
937,740
Amortisation
21
1,067,991
510,261
Adjustments/(Resumption of adjustments) for depreciation of
tangible assets, net
20
(1,900,668)
-
Reversal of impairment of property, plant and equipment, net
20
-
(853,836)
Reversal of impairment for Right of Use Assets – IFRS16
(106,360)
-
Reversal of impairment of trade and other receivables, net
17, 18
-
(568,609)
Net finance income
10
(127,879,738)
(67,897,133)
Share of loss of associates
22
10,009
38,825
Changes in employee benefits obligations
13
289,265
219,205
Changes in provisions, net
27
759,889
(322,045)
Income tax expense
16
1,864,627
(5,886,085)
(53,145,657)
(49,880,841)
Changes in:
Trade receivables
(159,232)
(14,127)
Other receivables
(1,710,959)
(12,621,613)
Trade payables
1,135,053
1,560,732
Other payables
6,274,340
229,664
Employee benefits
1,044,132
1,306,130
Cash flow used in operating activities
(46,562,324)
(59,420,057)
Interest paid
(42,697,180)
(29,647,323)
Income tax paid
(1,784,835)
-
Net cash used in operating activities
(91,044,339)
(89,067,380)
(Continued on next page)
SEPARATE STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2024
Note
2024
2023
Cash flows from investing activities
Payments for purchases of property, plant and equipment
(35,826,434)
(1,779,204)
Payments for purchase of intangible assets
(489,051)
(970,642)
Payments for purchase of interests in subsidiaries, net
(22,500)
(12,376,633)
Payments for the purchase of shares in subsidiaries, net of
transaction costs
(15,808,832)
-
Payment for acquisition of investment in associate
(10,009)
(38,825)
Payment for other long term investments
-
-
Loans granted to subsidiaries
(330,323,114)
(92,296,606)
Cash used by subsidiaries under the cash pooling facility
22, 29
207,123,277
(75,423,575)
Dividends received
60,000,000
-
Interest received
110,920,452
96,254,223
Net cash (used in)/from investing activities
(4,436,211)
(86,631,261)
Cash flows from financing activities
Dividends paid
24
(39,982,739)
(40,136,410)
Loan reimbursement
(80,000,000)
-
Payment of lease liabilities
(2,429,669)
(479,678)
Repayment / Proceeds from overdrafts
108,033,516
(2,310,693)
Long-term bank borrowings
15
98,718,468
116,768,248
Net cash used in financing activities
84,339,576
73,841,467
Net decrease / increase in cash and cash equivalents
(11,140,973)
(101,857,173)
Cash and cash equivalents at 1 January
19
19,154,240
105,631,939
Cash and cash equivalents transferred on merger
19
-
15,379,476
Cash and cash equivalents at 31 December
19
8,013,268
19,154,241
The accompanying notes are an integral part of these separate financial statements.
Chief Executive Officer
Alexandru-Aurelian Chirita
Chief Financial Officer
Stefan Alexandru Frangulea
27 March 2025
SEPARATE STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2024
504
505
ELECTRICA 2024 ANNUAL REPORT
ELECTRICA 2024 ANNUAL REPORT
NOTES TO THE SEPARATE FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 DECEMBER 2024
NOTES TO THE SEPARATE FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 DECEMBER 2024
1
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 2024.
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 J2000007425408.
As at 31 December 2024 and 31 December 2023, 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 49.785% from
the share capital (31 December 2023: 48.79%). On July 11, 2024, the Bucharest Trade Registry Office admitted
the request to reduce the share capital of Electrica, according to the decision no. 1 from 25 April 2024, of the
Extraordinary General Meeting of the Company’s Shareholders. The share capital of Electrica is thus reduced
from the value of 3,464,435,970 RON to the value of 3,395,530,040 RON, and the number of shares is reduced
from 346,443,597 shares to 339,553,004 shares. As a result of the reduction of the share capital, the Romanian
State holds a percentage of 49.7850% of the subscribed share capital, and other shareholders - list type
(individuals and legal entities), hold a percentage of 50.2150% of 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 2024, the Company’s subsidiaries are the following:
Subsidiary
Activity
Sole
registration
code
Head Office
% shareholding
as at 31 December
2024
Distributie Energie Electrica
Romania S.A. (“DEER”)
Electricity distribution in
geographical areas Transilvania
Nord, Transilvania Sud and
Muntenia Nord
14476722
Cluj-Napoca
99.99999929%
Electrica Furnizare S.A. (“EFSA”)
Electricity and natural gas supply
28909028
Bucuresti
99.9998444099934%
Electrica Serv S.A. (“SERV”)
Services in the energy sector
(maintenance, repairs,
construction)
17329505
Bucuresti
99.99998095%
Sunwind Energy S.R.L. (“SNW”)
Electricity generation
42910478
Constanta
100%
New Trend Energy S.R.L. (“NTE”)
Electricity generation
42921590
Constanta
100%
Foton Power Energy S.R.L.
(“FPE”)
Electricity generation
43652555
Constanta
100%
Crucea Power Park S.R.L. (“CPP”)
Electricity generation
25242042
Constanta
60%
As at 31 December 2023, 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
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)
17329505
Bucuresti
99.99998095%
Sunwind Energy S.R.L. (“SNW”)
Electricity generation
42910478
Constanta
100%
New Trend Energy S.R.L. (“NTE”)
Electricity generation
42921590
Constanta
60%
Foton Power Energy S.R.L.(“FPE”)
Electricity generation
43652555
Constanta
60%
As at 31 December 2024, the Company’s associates are the following:
Associate
Activity
Sole
registration
code
Head Office
% shareholding
as at 31
December 2024
% shareholding
as at 31
December 2023
Crucea Power Park S.R.L.
Electricity generation
25242042
Constanta
-
40%
Electrica EsyaSoft Smart
Solutions S.A (“EsyaSoft”)
Manufacture of
accumulators, primary
cells and primary
batteries
50993644
Bucuresti
25%
-
As of 31 December 2024 and 31 December 2023, the Company’s other long term investments are the
following:
Company
Activity
Sole
registration
code
Head
Office
% shareholding
as at 31
December 2024
% shareholding
as at 31
December 2023
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
5.92%
7.72%
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ELECTRICA 2024 ANNUAL REPORT
NOTES TO THE SEPARATE FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 DECEMBER 2024
NOTES TO THE SEPARATE FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 DECEMBER 2024
Changes in Company structure during 2024
Acquisition of shares in subsidiaries
On July 12, 2024, Electrica completed the acquisition
of New Trend Energy S.R.L., whose primary activity is
the production of energy from photovoltaic sources,
by acquiring an additional 40% of the company’s
social shares and voting interests. Thus, Electrica now
holds 100% of the social shares of New Trend Energy
S.R.L.
On September 12, 2024, Electrica finalized the
acquisition of Foton Power Energy S.R.L., a company
primarily engaged in the production of energy from
photovoltaic sources, by acquiring an additional 40%
of the social shares and voting rights. Consequently,
Electrica now owns 100% of the social shares of Foton
Power Energy S.R.L.
On October 15, 2024, Electrica acquired an additional
20% of the social shares and voting interests in Crucea
Power Park S.R.L. (CPP), the developer of the wind
project „Crucea Est” (with an installed capacity of 121
MW and a storage capacity of 60 MWh), located in
the outskirts of Crucea commune, Constanța county.
Therefore, the Company’s participation increased
from 40% to 60%, and thus Crucea Power Park S.R.L.
becoming the subsidiary of the Company.
Acquisition of shares in associates
On December 5, 2024, the company Electrica EsyaSoft
Smart Solutions S.A. („EsyaSoft”) was established, in
which ELSA owns 25% of the company’s share capital
and the difference of 75% is owned by Esyasoft
Enteprise Holding RSC LTD. EsyaSoft will focus on
smart grid technologies (including storage solutions
- batteries and digitalization of networks).
Merger by absorption within the Group
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 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 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.
The financial results and the financial position of the
absorbed entities are incorporated prospectively
from the effective date of the merger, without
changing the pre-merger information.
The Company’s main activities
Currently, the core business of the Company,
according to the Statute is „Activities of business and
management consulting”, also performing corporate
activities at parent company level for its subsidiaries.
Starting with January 1, 2024, the Company also
provides the following secondary activities: Electricity
production and electricity trading.
Electrica SA is the parent company of one electricity
distribution company (set up from merger of three
electricity distribution companies), one electricity
and natural gas supplier, five companies providing
services in the energy sector (out of which four are
currently in bankruptcy) and four energy production
companies from renewable sources.
Through the merger that took place on 31 December
2023
between
the
Company
and
its
former
subsidiary, Electrica Energie Verde 1 S.R.L., Electrica
SA became a producer of electricity from renewable
sources that operates a photovoltaic park in Stanesti,
Giurgiu county, with an installed capacity of MW 7.5
(operating capacity limited to 6.8 MW).
Currently,
the
Company
has
completed
the
construction of a photovoltaic park with an installed
capacity of 12 MWp DC (peak power at the level of
the panels), 9.75 MW AC (evacuating power in the
network) located in Vulturu Commune, Vrancea
County (project started by its former subsidiary,
Green Energy Consultancy & Investments S.R.L.).
Starting from October 21, 2024, it is connected to the
National Energy System and operates during the trial
period according to the applicable regulations. The
estimated period of tests is 3-6 months, following the
certification of the tests by Transelectrica and the
obtaining of the Notification of final operation of the
central plant to enter the energy market.
Geopolitical tensions
In
February
2022
global
geopolitical
tensions
significantly escalated following military interventions
in Ukraine by the Russian Federation. As a result of
these escalations, economic uncertainties in energy
and capital markets have increased, with global
energy prices expected to be highly volatile for the
foreseeable future. As at the date of these separate
financial statements, management is unable to
reliably estimate the effects on the Group`s financial
outlook and cannot exclude adverse consequence
on the business, operations, and financial position.
Management believes it is taking all the necessary
measures to support the sustainability and growth
of the Group’s business in the current circumstances
and that judgements used in these financial
statements remain appropriate.
2 Basis of accounting
These separate financial statements have been
prepared in accordance with the Ministry of Public
Finance Order no. 2844/2016 for the approval of
the Accounting Regulations in accordance with
International Financial Reporting Standards („OMFP
no. 2844/2016”). In acceptance of OMFP no. 2844/2016,
International Financial Reporting Standards are
standards adopted under the procedure provided
by
the
European
Commission
Regulation
no.
1606/2002 of the European Parliament and of the
Council of 19 July 2002 regarding the application
of the international accounting standards. The
consolidated financial statements of Electrica Group
prepared in accordance with the Ministry of Public
Finance Order no. 2844/2016 will be published at
least 30 days before the GSM.
These separate financial statements were authorized
for issue by the Board of Directors on 27 March 2025
and will be submitted for shareholders’ approval in
the general meeting scheduled on 29 April 2025.
Details of the Company’s accounting policies are
included in Note 7. The Company has consistently
applied the accounting policies to all periods
presented in these separate financial statements.
3 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.
4 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.
Judgements,
assumptions
and
estimation
uncertainties
Information about judgements made in applying
accounting policies and assumptions and estimation
uncertainties that have the most significant effects
on the amounts recognised in the separate financial
statements is included below:
• Note 6 h) – estimates regarding the useful lives of
property, plant and equipment;
• Note 20 – assumptions regarding the revalued
amount of property, plant and equipment;
• Note 22 – assumptions and estimates regarding
the valuation of shareholdings in the subsidiaries;
• Note 16 - assumptions regarding the recognition
of deferred tax asset;
Measurement of fair values
A number of the Company’s accounting policies and
disclosures require the measurement of fair values
for both financial and non-financial assets and
liabilities.
When measuring the fair value of an asset or a liability,
the Company uses observable market data as far as
possible. Fair values are categorised into different
levels in the fair value hierarchy based on the inputs
508
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NOTES TO THE SEPARATE FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 DECEMBER 2024
NOTES TO THE SEPARATE FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 DECEMBER 2024
used in the valuation techniques as follows:
• Level 1: quoted prices (unadjusted) in active
markets for identical assets or liabilities;
• 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 are categorised into different
levels of the fair value hierarchy, then the fair value
measurement is entirely categorised on the level of
the lowest level input that is significant to the entire
measurement.
The Company recognizes transfers between levels of
the fair value hierarchy at the end of the reporting
period during which the change has occurred.
Further information about the assumptions used in
measuring fair values is included in
• Note 20: Property, plant and equipment.
• Note 28: Financial instruments - fair values and
risk management.
5 Basis of measurement
The separate financial statements have been
prepared on the historical cost basis, except for the
land and buildings, which are measured based on
revaluation model.
6 Changes in significant accounting policies
Adopting new standards
The Company has not adopted new standards
issued by the International Accounting Standards
Board (IASB) and adopted by the EU applicable on
1 January 2024, so there is no significant change
in the consolidated statements of the Group.
Adoption of new changes to existing standards
The Group has consistently applied the following
accounting policies to all periods presented in
these consolidated financial statements. The new
amendments to existing standards effective from 1
January 2024 do not have a significant effect on the
Group’s consolidated financial statements.
Amendments to IFRS Accounting Standards issued by
the International Accounting Standards Board (IASB)
that are mandatory for reporting periods beginning
on or after 1 January 2024, but without a significant
impact on the financial statements are as follows:
• Amendments to IAS 1 “Presentation of Financial
Statements” - Classification of Liabilities into
Current and Non-Current Liabilities (effective for
annual periods beginning on or after 1 January
2024);
• Amendments to IFRS 16 “Leases” - Sale and
Leaseback Lease Liabilities (effective for annual
periods beginning on or after 1 January 2024);
• Amendments to IAS 7 “Cash Flow Statement”
and IFRS 7 “Financial Instruments: Presentation:
Supplier Financing Arrangements (effective for
annual periods beginning on or after 1 January
2024.
7
Significant accounting policies
The Company has consistently applied the following
accounting policies to all periods presented in these
separate financial statements.
(a) Going Concern
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. The
Group has prepared a forecast that includes the
following assumptions:
• A termination of the support scheme until on 30
June 2025 according to the applicable legislation
but with a continuously stable flow of repayments
of the reimbursement requests for subsidies;
• The renewal of the confirmed existing overdraft
limits is planned up to a limit of RON 3,219,057
thousand (out of which drawn at RON 2,490,609
thousand 31 December 2024).
At the date of issuance of these separate financial
statements the regulatory position may be further
amended and there may be further laws enacted
which could adversely impact the Company operating
cash flows during the forecast period. Given the
current market uncertainties, Electrica SA 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 Electrica SA/Group
as the supplier and distributed of electricity on the
Romanian market, having 39.7 % (according to the
latest ANRE report 2023 for the distribution segment)
as market share on the electricity distribution
and 15.36 % (according to the latest ANRE report
September 2024 for the supply segment) as market
share on the electricity supply 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 the Company
will be able to meet its obligations as they fall due.
Based upon the above projections and other
information,
given
the
measures
already
implemented and the strategies to reduce the
risks which may occur due to the instability of the
economic environment, the Board of Directors has
at the time of approving the separate financial
statements, a reasonable expectation that the
Company 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 separate financial
statements.
(b) Revenue
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 Company is expected to be
entitled to receive in exchange of those goods or
services. Revenue is recognized at the fair value of
the services rendered or goods delivered, net of VAT,
excises or other taxes related to the sale.
The Company recognizes the revenue from contracts
with customers in accordance with IFRS 15.
According to this standard, revenue is recognized
when or as the customer obtains control over the
goods or services, at the amount that reflects the
price at which the Company expects to be entitled to
receive it in exchange for these goods and services.
Generation and sale of electricity
The electricity produced by the Company is mainly
sold on the Electricity Market supported by green
certificates, and on the Day Ahead Market, and the
revenue is recognized when the electricity is injected
into the network and is being sold on the market.
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
market or a combination of both. The selling price
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.
(c) Commissions
The Company assesses its revenue arrangements
based on specific criteria to determine if it is acting
as principal or agent. If the Company acts in the
capacity of an agent rather than as the principal in
510
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NOTES TO THE SEPARATE FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 DECEMBER 2024
NOTES TO THE SEPARATE FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 DECEMBER 2024
a transaction, then the recognised revenue is the net
amount of commission earned by the Company.
(d) Finance income and finance costs
The Company’s finance income and finance costs
include:
• interest income;
• interest expense;
• dividend income;
• the foreign currency gain or loss 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.
(e) Foreign currency transactions
Transactions in foreign currencies are translated to
the functional currency at the exchange rates at the
date of the transactions.
Monetary assets and liabilities denominated in
foreign currencies are translated to the functional
currency at the exchange rate at the reporting
date, as communicated by the National Bank of
Romania. Non-monetary assets and liabilities that
are measured at fair value in a foreign currency are
translated to the functional currency at the exchange
rate when the fair value was determined. Foreign
currency differences are recognised in profit or loss.
Non-monetary items that are measured based on
historical cost in a foreign currency are not translated
to the functional currency.
(f) 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 recognized for the
amount expected to be paid if the Company has
a present, legal or constructive obligation to pay
this amount as a result of past services provided
by the employee and the obligation can be reliably
estimated.
(ii) Defined benefit plans
The Company’s net obligation in respect of defined
benefit plans is calculated separately for each plan
by estimating the amount of future benefits that
employees have earned in the current and prior
periods, by discounting that amount.
The calculation of defined benefit obligations is
performed annually by a qualified actuary using the
projected unit credit method.
Re-measurements of the net defined benefit liability,
which comprise actuarial gains and losses, are
recognized immediately in other comprehensive
income. The Company determines the net interest
expense/(income) on the net defined benefit liability
for the period by applying the discount rate used
to measure the defined benefit obligation at the
beginning of the annual period, at the net value of
the defined benefit liability at that date, considering
any 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 recognized 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 recognized immediately in profit or
loss. The Company recognizes gains and losses on
the settlement of a defined benefit plan when the
settlement occurs.
(iii) Other long-term employee benefits
The Company’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 recognized in profit or loss in
the period in which they arise.
(iv) Termination benefits
Termination benefits are expensed at the earlier of
when the Company can no longer withdraw the offer
of those benefits and when the Company recognizes
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.
(g) Income tax
Income tax expense comprises current and deferred
tax. It is recognized in profit or loss except for the items
recognized directly in equity or in other comprehensive
income, in which case it will be recognized directly in
equity or in other comprehensive income.
(i) Current tax
Current tax comprises the expected tax payable or
receivable on the taxable income or loss for the year
and any adjustment to tax payable or receivable
in respect of previous years. It is measured using
tax rates enacted or substantively enacted at the
reporting date. Current tax also includes any tax
arising from dividends.
(ii) Deferred tax
Deferred tax is recognized 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 recognized for:
• temporary differences arising from the initial
recognition of assets and liabilities resulting from
transactions that are not business combinations
and that affect neither accounting nor taxable
profit or loss;
• temporary differences resulting from investments
in subsidiaries, associates and jointly controlled
entities, to the extent that the Company can
exercise control over the reversal period of the
temporary differences and it is probable that
they will not be reversed in the foreseeable future.
Deferred tax assets are recognized for unused tax
losses, unused tax credits and deductible temporary
differences only to the extent that it is probable that
future taxable profits will be available to be used for
covering them. 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 realized.
Deferred tax is measured based on the tax rates
that are expected to be applicable to temporary
differences when they are reversed, using tax rates
enacted or substantively enacted at the reporting
date.
The measurement of the deferred tax reflects the tax
consequences that would follow from the manner in
which the Company expects to recover or settle the
carrying amount of its assets and liabilities at the
reporting date.
Deferred tax assets and liabilities are offset only if
certain criteria are met.
Unrecognized deferred tax assets are reassessed at
each reporting date and recognized to the extent
that it is probable that the future taxable profits will
be available against which they can be used.
(h) Property, plant and equipment
(i) Recognition and measurement
Property, plant and equipment are initially recognized
at cost, which includes purchase price and other
costs directly attributable to acquisition and bringing
the asset to the location and condition necessary for
their intended use. After initial recognition, land and
buildings are measured at revalued amounts, less
any accumulated depreciation and any accumulated
impairment losses since the most recent valuation.
The Company used the fair value as deemed cost for
the tangible assets for the opening of the financial
position.
Revaluations are performed with sufficient regularity
to ensure that the carrying amount does not materially
differ from the one which would be determined using
the fair value at the end of the reporting period.
When a building is revalued, the accumulated
depreciation is eliminated against the gross carrying
amount of that item, and the net amount is restated
to the revalued amount of the asset.
If significant parts of an item of property, plant
and equipment have different useful lives, then
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NOTES TO THE SEPARATE FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 DECEMBER 2024
NOTES TO THE SEPARATE FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 DECEMBER 2024
they are accounted for as separate items (major
components) of property, plant and equipment.
Spare parts, stand-by and servicing equipment are
classified as property, plant and equipment if they
are expected to be used during more than one period
or can be used only in connection with an item of
property, plant and equipment.
Any gain or loss on disposal of an item of property,
plant and equipment is recognized in profit or loss.
(ii) Subsequent expenditure
Subsequent expenditure is capitalized only if it
is probable that the future economic benefits
associated with the expenditure will flow to the
Company.
(iii) Depreciation
Depreciation is calculated to write off the cost of items
of property, plant and equipment less their estimated
residual values using the straight-line method over
their estimated useful lives and is recognised in
profit or loss. Leased assets are depreciated over the
shorter of the lease term and their useful lives unless
it is reasonably certain that the Company will obtain
ownership right by the end of the lease term. Land
and other non-current assets in progress are not
depreciated.
The estimated useful lives of property, plant and
equipment are as follows:
Category
Useful lives (years)
Buildings
40-60
Equipment
4-12
Vehicles, furniture and office
equipment
3-10
The depreciation methods, useful lives and residual
values are reviewed at each reporting date and
adjusted if appropriate.
(i) Intangible assets
(i) Recognition and measurement
Intangible assets that are acquired by the Company
and have finite useful lives are measured at cost less
accumulated amortization and any accumulated
impairment losses.
(ii) Subsequent expenditure
Subsequent expenditure is capitalized 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 recognized 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 recognized in profit or loss.
The estimated useful lives of software and licenses
are 3-5 years.
Amortization method, useful lives and residual values
are reviewed at each reporting date and adjusted if
appropriate.
(j) Financial instruments
Financial
assets
and
financial
liabilities
are
recognized 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
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
acquisition of financial assets or financial liabilities
at fair value through profit or loss are recognized
immediately in profit or loss.
(i) Financial assets
All regular way purchases or sales of financial
assets are recognized and derecognized 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
recognized
financial
assets
are
measured
subsequently in their entirety at either amortized
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
consist solely of payments of principal and interest
on the principal amount outstanding.
The amortized cost of a financial asset is the amount
at which the financial asset is measured at initial
recognition less the principal reimbursements, plus
the cumulative amortization using the effective
interest method, adjusted for any loss allowance.
The gross carrying amount of a financial asset is the
amortized cost of a financial asset before adjusting
for any loss allowance.
Foreign exchange gains and losses
The carrying amount of financial assets that are
denominated in a foreign currency is determined in
that foreign currency and translated at the spot rate
at the end of each reporting period.
Loans and receivables
These assets are initially recognized at fair value
plus any directly attributable transaction costs.
Subsequent to initial recognition, they are measured
at amortized cost using the effective interest method.
The amortized cost is reduced by impairment losses.
Loans and receivables comprise trade receivables,
cash and cash equivalents and bank deposits.
Trade receivables
Trade receivables include mainly invoices issued
or to be issued to the subsidiaries for the rendered
services.
Cash and cash equivalents
Cash and cash equivalents comprise cash balances
and call deposits and deposits with maturities of
three months or less from the transaction date that
are subject to an insignificant risk of changes in
their fair value, that are used by the Company in the
management of its short-term commitments.
(ii) Financial liabilities
All financial liabilities are measured subsequently at
amortized cost using the effective interest method or
at fair value through profit or loss.
Financial liabilities that are not (i) contingent
consideration
of
an
acquirer
in
a
business
combination, (ii) held‑for‑trading, or (iii) designated
as at fair value, are measured subsequently at
amortized cost using the effective interest method.
The effective interest method is a method of
calculating the amortized cost of a financial liability
and of allocating interest expense over the relevant
period. The effective interest rate is the rate that
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)
through the expected life of the financial liability,
or (where appropriate) a shorter period, to the
amortized cost of a financial liability.
Other financial liabilities include trade payables.
(iii) Share capital
Ordinary shares
Ordinary shares are classified as equity. Incremental
costs directly attributable to the issue of ordinary
shares, net of any tax effects, are recognized as a
deduction from equity.
Repurchase and reissue of ordinary shares (treasury
shares)
When shares recognized as equity are repurchased,
the amount of the consideration paid, which includes
directly attributable costs, net of any tax effects, is
recognized as a deduction from equity. Repurchased
shares are classified and presented in the treasury
514
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ELECTRICA 2024 ANNUAL REPORT
NOTES TO THE SEPARATE FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 DECEMBER 2024
NOTES TO THE SEPARATE FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 DECEMBER 2024
share reserve. When treasury shares are sold or
reissued subsequently, the amount received is
recognized as an increase in equity and the resulting
surplus or deficit on the transaction is presented
within share premium.
(k) Impairment
Impairment of financial assets
The Company 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 Company 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 Company’s
historical credit loss experience, adjusted for factors
that are specific to the debtors, general economic
conditions and an assessment of both the current
as well as the forecast direction of conditions at the
reporting date, including time value of money where
appropriate.
i) Significant increase in credit risk
In assessing whether the credit risk on a financial
instrument has increased significantly since initial
recognition, the Company compares the risk of a
default occurring on the financial instrument at the
reporting date with the risk of a default occurring
on the financial instrument at the date of initial
recognition.
Irrespective of the above analysis, the Company
considers
that
default
has
occurred
when
a
financial asset is more than 90 days past due unless
the Company has reasonable and supportable
information to demonstrate that a more lagging
default criterion is more appropriate.
(ii) Write‑off policy
The Company writes off a financial asset when
after the finalization of the bankruptcy proceedings.
Financial assets written off may still be subject to
enforcement activities under the Company’s recovery
procedures, taking into account legal advice where
appropriate. Any recoveries made are recognized in
profit or loss.
(iii) Measurement and recognition of expected credit
losses
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 given default is
based on historical data adjusted by 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 Company in
accordance with the contract and all the cash flows
that the Company expects to receive, discounted at
the original effective interest rate.
Derecognition of financial assets
The Company derecognizes a financial asset only
when the contractual rights to the cash flows from
the asset expire, or when it transfers the financial
asset and substantially all the risks and rewards
of ownership of the asset to another entity. If the
Company neither transfers nor retains substantially
all the risks and rewards of ownership and continues
to control the transferred asset, the Company
recognizes its retained interest in the asset and an
associated liability for amounts it may have to pay.
If the Company retains substantially all the risks and
rewards of ownership of a transferred financial asset,
the Company continues to recognize the financial
asset and also recognizes a collateralized borrowing
for the proceeds received.
(l) Revaluation reserves
The difference between the revalued amount and
the net carrying amount of property, plant and
equipment is recognized as revaluation reserve
included in equity.
If an asset’s carrying amount is increased as a
result of a revaluation, the increase is recognized
and accumulated in equity under the heading
of revaluation reserve. However, the increase is
recognized in profit and loss to the extent that it
reverses a revaluation decrease of the same amount
of the asset previously recognized in profit and loss.
If an asset’s carrying amount is decreased as a result
of a revaluation, the decrease is recognized in profit
or loss, However, the decrease is recognized in equity
in revaluation reserves if there is any 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.
(m) Dividends
Dividends are recognized as a deduction from equity
in the period in which their distribution is approved
and recognized as a liability to the extent it is unpaid
at the reporting date. Dividends are disclosed in the
notes to financial statements when their distribution
is proposed after the reporting date and before the
date of the issuance of the financial statements.
(n) Capital contributions in kind from shareholders
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.
(o) Provisions
A provision is recognized if, as a result of a past event,
the Company has a present legal or constructive
obligation that can be estimated reliably, and it is
probable that an outflow of economic benefits will
be required to settle the obligation. Provisions are
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 discount
is recognized as finance cost.
A provision for restructuring is recognized when
the Company has approved a detailed and formal
restructuring plan, and the restructuring either has
commenced or has been announced publicly. No
provisions are provided for future operating losses.
(p) 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 Company; or
(b) a present obligation that arises from past events
that is not recognized because:
i. it is not probable that an outflow of resources
embodying economic benefits will be required to
settle the obligation; or
ii. the amount of the obligation cannot be measured
with sufficient reliability.
Contingent liabilities are not recognized in the
financial
statements
of
the
Company.
They
are presented in case the output of resources
incorporating economic benefits is possible and not
probable.
A contingent asset is a potential asset that appears
as a result of previous events and whose existence
will be confirmed only by the occurrence or the non-
occurrence of one or more uncertain future events,
which are not fully controlled by the Company.
A contingent asset is not recognized in the financial
statements of the Company, but it is shown when an
input of economic benefits is likely to arise.
(q) Leases
(i) The Company as lessee
The Company assesses whether a contract is or
contains a lease, at inception of the contract. The
Company recognizes a right-of-use asset and a
516
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ELECTRICA 2024 ANNUAL REPORT
ELECTRICA 2024 ANNUAL REPORT
NOTES TO THE SEPARATE FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 DECEMBER 2024
NOTES TO THE SEPARATE FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 DECEMBER 2024
corresponding lease liability with respect to all lease
arrangements in which it is the lessee, except for
short-term leases (with a lease term of 12 months or
less) and leases of low value assets (of less than USD
5,000). For these leases, the Company recognizes
the lease payments as an operating expense on a
straight-line 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 Company uses its incremental
borrowing rate.
The lease liability is presented as a separate line in
the 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.
The Company remeasures the lease liability (and
makes a corresponding adjustment to the related
right-of-use asset) whenever:
• the lease term has changed or there is a significant
event or change in circumstances resulting
in a change in the assessment of exercise of a
purchase option, in which case the lease liability
is remeasured by discounting the revised lease
payments using a revised discount rate;
• the lease payments change due to changes 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 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.
Right-of-use assets are depreciated over the shorter
period of lease term and useful life of the underlying
asset. If a lease transfers ownership of the underlying
asset or the cost of the right-of-use asset reflects that
the Company 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 statement of financial position.
(ii) Rental income
Rental income from property, plant and equipment
other than property investment is recognized as
Other income. Rental income is recognized on a
straight-line basis over the term of the lease.
(r) Investment in associates
An associate is an entity over which the Company has
significant influence and that is neither a subsidiary
nor an interest in a joint venture. Significant influence
is the power to participate in the financial and
operating policy decisions of the investee but is not
control or joint control over those policies.
The results and assets and liabilities of associates
are incorporated in these financial statements using
the equity method of accounting, except when the
investment is classified as held for sale, in which case
it is accounted for in accordance with IFRS 5.
Under the equity method, an investment in an
associate is recognised initially in the separate
statement of financial position at cost and adjusted
thereafter to recognise the Company’s share of the
profit or loss and other comprehensive income of the
associate.
When the Company’s share of losses of an
associate exceeds the Company’s interest in that
associate (which includes any long-term interests
that, in substance, form part of the Company’s
net investment in the associate), the Company
discontinues recognising its share of further losses.
Additional losses are recognised only to the extent
that the Company has incurred legal or constructive
obligations or made payments on behalf of the
associate.
An investment in an associate is accounted for
using the equity method from the date on which
the investee becomes an associate. On acquisition
of the investment in an associate, any excess of the
cost of the investment over the Company’s share
of the net fair value of the identifiable assets and
liabilities of the investee is recognised as goodwill,
which is included within the carrying amount of the
investment.
Any excess of the Company’s share of the 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.
The requirements of IAS 36 are applied to determine
whether it is necessary to recognise any impairment
loss with respect to the Company’s investment in
an associate. When necessary, the entire carrying
amount of the investment (including goodwill) is
tested for impairment in accordance with IAS 36 as
a single asset by comparing its 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 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 Company discontinues the use of the equity
method from the date when the investment ceases
to be an associate.
(s) Subsequent events
Events occurring after the reporting date 31 December
2024, which provide additional information about
conditions prevailing at the reporting date (adjusting
events) are reflected in the separate financial
statements. Events occurring after the reporting date
that provide information on events that occurred
after the reporting date (non-adjusting events),
when material, are disclosed in the notes to the
separate financial statements. When the going
concern assumption is no longer appropriate at or
after the reporting period, the financial statements
are not prepared on a going concern basis.
8 Adoption of new and revised standards and
interpretations
Initial application of new amendments to the
existing standards effective for the current year
In the current year, the Company has applied
a number of amendments to IFRS Accounting
Standards issued by the International Accounting
Standards Board (IASB) and adopted by the EU that
are mandatorily effective for reporting period that
begins on or after 1 January 2024. Their adoption has
not had any material impact on the disclosures or on
the amounts reported in these financial statements.
• 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 7 “Statement of Cash Flows”
and IFRS 7 “Financial Instruments: Disclosures”
- Supplier Finance Arrangements (effective for
annual periods beginning on or after 1 January
2024); and
• Amendments to IFRS 16 “Leases” - Lease Liability
in a Sale and Leaseback (effective for annual
periods beginning on or after 1 January 2024);
Standards
and
amendments
to
the
existing
standards issued by IASB and adopted by the EU
but not yet effective
At the date of authorization of these consolidated
financial statements, the following amendments
to the existing standards were issued by IASB and
adopted by the EU and which are not yet effective:
• Amendments to IAS 21 “The Effects of Changes in
Foreign Exchange Rates”: Lack of Exchangeability
(effective for annual reporting periods beginning
on or after 1 January 2025).
The Group has elected not to adopt the amendments
518
519
ELECTRICA 2024 ANNUAL REPORT
ELECTRICA 2024 ANNUAL REPORT
NOTES TO THE SEPARATE FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 DECEMBER 2024
NOTES TO THE SEPARATE FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 DECEMBER 2024
to existing standards in advance of their effective
dates. The Group anticipates that the adoption of
these amendments to existing standards will have no
material impact on the financial statements of the
Group in the period of initial application.
New standards and amendments to the existing
standards issued by IASB but not yet adopted by
the EU
At present, IFRS as adopted by the EU do not
significantly differ from regulations adopted by
the
International
Accounting
Standards
Board
(IASB) except for the following new standards and
amendments to the existing standards, which were
not endorsed for use in EU as at the date of publication
of these consolidated financial statements (the
effective dates stated below are for IFRS as issued by
IASB):
• IFRS 14 “Regulatory Deferral Accounts” (effective
for annual periods beginning on or after 1
January 2016) – the European Commission has
decided not to launch the endorsement process
of this interim standard and to wait for the final
standard;
• IFRS 18 “Presentation and Disclosures in Financial
Statements”
(effective
for
annual
periods
beginning on or after 1 January 2027, but not yet
endorsed in the EU);
• IFRS 19 “Subsidiaries without Public Accountability:
Disclosures”
(effective
for
annual
periods
beginning on or after 1 January 2027, but not yet
endorsed in the EU);
• Amendments to IFRS 9 “Financial Instruments”
and IFRS 7 “Financial Instruments: Disclosures”:
Supplier Finance Arrangements (applicable for
annual periods beginning on or after 1 January
2026, but not yet endorsed in the EU);
• Amendments to IFRS 9 “Financial Instruments”
and
IFRS
7
“Financial
Instruments:
Disclosures”:
Contracts
Referencing
Nature-
dependent Electricity (applicable for annual
periods
beginning
on
or
after
1
January
2026,
but
not
yet
endorsed
in
the
EU);
• Amendments to IFRS 1 “First-time Adoption of
International Financial Reporting Standards”,
IFRS 7 “Financial Instruments: Disclosures”, IFRS
9 “Financial Instruments”, IFRS 10 “Consolidated
Financial Statements” and IAS 7 “Statement
of Cash Flows”: Annual Improvements to IFRS
Accounting Standards - Volume 11 (applicable for
annual periods beginning on or after 1 January
2026, but not yet endorsed in the EU); and
• Amendments to IFRS 10 “Consolidated Financial
Statements” and IAS 28 “Investments 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 by IASB indefinitely but earlier
application permitted) – endorsement process
postponed indefinitely until the research project
on the equity method has been concluded.
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 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 Company 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.
9 Revenue, other income and operating expenses
(a) Revenue
2024
2023
Revenues from consulting services
83,525
221,686
Revenues from green certificates
8,114,445
-
Revenues from the supply of electricity on the Balancing Market
4,292,730
-
Total
12,490,700
221,686
(b) Other income
2024
2023
Revenues from disposal of assets
-
2,400
Rental income
715,190
723,300
Revenues from penalties
-
200,318
Other
400,612
516,584
Total
1,115,802
1,442,602
(c) Other operating expenses
2024
2023
Repair and maintenance expenses
1,296,237
1,233,117
Legal assistance and consulting fees
1,045,946
1,346,203
Insurance premiums
989,084
790,163
Other taxes and duties
637,802
825,175
Consumables
543,507
396,574
Travel and transportation expenses
683,015
321,061
Rent
299,383
226,979
Postage and telecommunication
49,090
40,615
Expenditure on sold assets
1,898,268
-
Other third party services
18,507,610
13,378,867
Other
2,958,464
2,688,691
Total
28,908,406
21,247,445
10 Net finance income
2024
2023
Interest income
110,920,452
96,254,222
Dividend income
60,000,000
-
Foreign exchange gains, net
28,558
-
Other finance income
266,845
1,380,429
Total finance income
171,215,855
97,634,651
520
521
ELECTRICA 2024 ANNUAL REPORT
ELECTRICA 2024 ANNUAL REPORT
NOTES TO THE SEPARATE FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 DECEMBER 2024
NOTES TO THE SEPARATE FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 DECEMBER 2024
2024
2023
Interest expense
(43,252,678)
(29,647,324)
Interest cost for employee benefits (Note 12)
(83,439)
(94,252)
Foreign exchange gain / losses, net
-
4,058
Total finance costs
(43,336,117)
(29,737,518)
Net finance income
127,879,739
67,897,133
11 Earnings per share
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
2024
2023
Profit for the year attributable to the shareholders of the Company
69,323,755
23,940,836
Profit attributable to the shareholders of the Company
69,323,755
23,940,836
Number of ordinary shares (in number of shares)
2024
2023
Number of ordinary shares at 31 December
339,553,004
339,553,004
In April 2024, within the company ELSA., EGMS approved the cancellation of 6,890,593 own shares (respectively
the reduction of the company’s share capital from 3,464,435,970 lei to 3,395,530,040 lei), which represents
1.988951% of the share capital and the reduction of the number of shares from 346,443,597 shares to 339,553,004
shares, obtained through the stabilization that took place during the Initial Public Offering of June 2014.
In 2023, 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.
2024
2023
Basic and diluted earnings per share (RON)
0.20
0.07
12 Short-term employee benefits
31 December
2024
31 December
2023
Personnel payables
7,374,574
6,327,991
Current portion of defined benefit liability and other long-term employee
benefits
111,330
115,917
Social security charges
618,349
658,028
Tax on salaries
175,457
153,046
Total
8,279,710
7,254,982
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.
13 Post-employment and other long-term employee benefits
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 Labor Contract.
In 2024 and 2023, employee benefit obligations were computed by an independent actuary using the projected
unit credit method with benefits calculated proportionally to the period of service.
31 December
2024
31 December
2023
Defined benefit liability
746,880
673,354
Other long-term employee benefits
984,444
768,705
Total
1,731,324
1,442,059
- Current portion*
111,330
115,917
- Non-current portion
1,619,994
1,326,142
* included in Personnel payables in Note 12
(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
assets.
522
523
ELECTRICA 2024 ANNUAL REPORT
ELECTRICA 2024 ANNUAL REPORT
NOTES TO THE SEPARATE FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 DECEMBER 2024
NOTES TO THE SEPARATE FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 DECEMBER 2024
Defined benefit liability
2024
2023
Balance at 1 January
673,354
506,110
Included in profit or loss
Current service cost
130,844
100,462
Past service cost
443
-
Interest cost
40,495
41,024
171,782
141,486
Included in other comprehensive income
Re-measurements gain
- Actuarial gain / loss
(98,256)
209,530
Other
Benefits paid
-
(183,772)
Balance at 31 December
746,880
673,354
Other long-term employee benefits
2024
2023
Balance at 1 January
768,705
716,743
Included in profit or loss
Current service cost
54,273
53,603
Past service cost
51,301
-
Actuarial gain
244,170
56,830
Interest cost
42,944
53,228
Other
Benefits paid
(176,949)
(111,699)
Balance at 31 December
984,444
768,705
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 assumptionse
The following are the main actuarial assumptions at the respective reporting date:
(a) Macroeconomic assumptions:
• inflation. The actuary used information from the National Commission for Strategy and Prognosis:
Year
Valuation date
31 December 2024
Valuation date
31 December 2023
2023
-
2024
4.8%
2025
3.8%
3.5%
2026
2.9%
3.0%
2027
2.7%
2.5%
2028-2031
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 7.1% for the year 2024 (2023: 6.0%);
• 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 labor contracts, as follows:
Jubilee bonuses based on years of service in the Company
Seniority
No. of gross monthly base salaries
31 December 2024
31 December 2023
20 years
1
1
25 years
1
-
30 years
2
2
35 years
3
3
40 years
4
4
45 years
5
5
Retirement bonuses based on years of service in the Company
Seniority
No. of gross monthly base salaries
31 December 2024
31 December 2023
Between 8 and 10 years
2
2
Between 10 and 25 years
3
3
More than 25 years
4
4
Termination benefits
a. Termination benefits for individual lay-offs at the Company’s initiative
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
No. of gross monthly average base salary at Company level
1 - 2 years
2
2 - 5 years
3
5 - 10 years
4
10 - 20 years
5
More than 20 years
8
524
525
ELECTRICA 2024 ANNUAL REPORT
ELECTRICA 2024 ANNUAL REPORT
NOTES TO THE SEPARATE FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 DECEMBER 2024
NOTES TO THE SEPARATE FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 DECEMBER 2024
b. Termination benefits for collective lay-offs at the Company’s initiative
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
No. of gross monthly average base salary at Company level
1 - 3 years
3
3 - 5 years
6
5 - 10 years
7
10 - 20 years
11
More than 20 years
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.
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.
Increase by 1%
Decrease by 1%
2024
2023
2024
2023
Discount rate
(102,978)
(92,376)
102,978
92,376
Salary growth
119,282
106,255
(119,282)
(106,255)
Increase by 1 year
Decrease by 1 year
2024
2023
2024
2023
Retirement age
10,056
9,077
(10,056)
(9,077)
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.
14 Employee benefit expenses
2024
2023
Average number of employees
82
78
Number of employees at 31 December
84
83
2024
2023
Wages and salaries
33,535,986
28,631,755
Social security contributions
763,948
660,494
Meal tickets
702,040
481,200
Termination benefit for labour/mandate contracts
237,396
521,754
Total
35,239,370
30,295,203
The number or employees at 31 December 2024 includes also the 4 employees with mandate agreements
(2023: the 4 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.
15 Bank borrowings and overdrafts
As at 31 December 2024, respectively 31 December 2023, the long-term bank borrowings are presented as
follows:
Lender
Balance at
31 December 2024
Balance at
31 December 2023
Vista Bank
129,950,000
125,000,000
ERSTE Group Bank and Raiffeisen Bank
106,092,214
91,768,248
Total
236,042,214
216,768,248
Less: current portion of the long-term bank borrowings
236,042,214
216,768,248
Less: accumulated interest
-
-
Total long-term borrowings, net of current portion
-
-
526
527
ELECTRICA 2024 ANNUAL REPORT
ELECTRICA 2024 ANNUAL REPORT
NOTES TO THE SEPARATE FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 DECEMBER 2024
NOTES TO THE SEPARATE FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 DECEMBER 2024
Drawings and repayments of borrowings during the year ended 31 December 2024 were as follows:
Amount
Balance at 1 January 2024
216,768,248
Drawings of borrowings during the period, out of which:
ERSTE Group Bank and Raiffeisen Bank
14,323,966
Vista Bank
84,950,000
Total drawings
98,718,468
Accumulated interest
1,174,629
Payment of interest
(555,498)
Reimbursements during the period, out of which:
Vista Bank
80,000,000
Total reimbursements
80,000,000
Balance at 31 December 2024
236,042,214
Bank Borrowings description:
a) Line of Credit for working capital and for issuing Bank Guarantee Letters granted by Vista Bank
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. On 28 June 2024, the value of the loan was increased by 5,000,000 RON, up to the value
of 130,000,000 RON. The main provisions are: Maximum credit amount: 130,000,000 RON; Interest rate: ROBOR
3M +2.4 % p.a.; due date: 29 December 2025; full refund at maturity. On 31 December 2024, the balance of the
loan is 130,839,616 RON, out of which 129,950,000 RON principal and 889,616 RON accrued interest (Outstanding
balance as at 31 December 2023: RON 125,000,000).
b) Syndicated credit facility granted by Erste Group Bank AG and Raiffeisen Bank SA
On 2 November 2021, Electrica S.A., as borrower, entered 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. On 31 October 2024, the credit was extended until 1 May 2025. The
purpose of the contract is to finance the purchase of shares in the production subsidiaries and to provide
loans to the supply/production subsidiary.
As at 31 December 2024 the balance of the loan is RON 106,092,214, out of which RON 104,917,585 principal and
RON 1,174,629 accrued interest (31 December 2023: RON 91,768,248).
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 2023), due date: 27 February 2025, overdrafts from BRD
with a maximum overdraft limit of up to 150,000,000 RON, due date: 17 January 2025 and overdrafts from BNP
Paribas with a maximum overdraft limit of up to 160,000,000, due date: 16 March 2025. The overdraft facilities
are used for financing activities. The balance of overdraft facilities as at 31 December 2024 is RON 313,553,595
(31 December 2023: RON 205,520,079).
On 31 December 2024 and 31 December 2023, the overdrafts are presented as follows:
Creditor (overdrafts)
Borrowed
2024
2023
ING Bank N.V
Societatea Energetica Electrica S.A.
164,983,794
205,520,079
BRD
Societatea Energetica Electrica S.A.
148,569,801
-
Total overdrafts
313,533,595
205,520,079
16 Income tax
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 assessments 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
2024
2023
Current tax expense
(1,880,348)
-
Deferred tax expense/income
15,721
5,886,085
Total benefit related to income tax
(1,864,627)
5,886,085
(ii) Amounts recognised in other comprehensive income
2024
2023
Before tax
Tax benefit
Net of tax
Before tax
Tax benefit
Net of tax
Revaluation of property, plant
and equipment
-
-
-
6,988,472
(1,138,457)
5,850,014
Revaluation of property, plant
and equipment - merger
-
-
-
2,701,689
(62,344)
2,639,345
Re-measurement of defined
benefit liability
98,256
(15,721)
82,535
(25,755)
4,121
(21,634)
Total
98,256
(15,721)
82,535
9,664,406
(1,196,680)
8,467,726
528
529
ELECTRICA 2024 ANNUAL REPORT
ELECTRICA 2024 ANNUAL REPORT
NOTES TO THE SEPARATE FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 DECEMBER 2024
NOTES TO THE SEPARATE FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 DECEMBER 2024
(iii) Reconciliation of effective tax rate
2024
2023
Profit before tax
71,188,381
18,054,751
Tax using Company’s domestic tax rate
16%
11,390,141
16%
2,888,760
Non-deductible expenses
0%
(112,801)
20%
1,275,102
Non-taxable income
-8%
(5,616,874)
-12%
(2,202,055)
Deductible legal reserve
-1%
(569,507)
-1%
(144,566)
Recognition of tax effect of previously unrecognised tax losses
-5%
(3,226,331)
-18%
(3,310,837)
Other tax effects
0%
-
2%
359,259
The effect of merger
0%
-
26%
(4,751,749)
Total benefit related to income tax
3%
1,864,627
33%
(5,886,085)
(iv) Movement in deferred tax balances
Balance at 31 December 2024
2024
Net balance at
1 January 2024
Recognised in
profit or loss
Recognised
in other
comprehensive
income
Net
Deferred tax
assets
Deferred tax
liabilities
Property, plant and
equipment
10,208,948
(1,118,668)
-
9,090,281
-
9,090,281
Employee benefits
(1,277,534)
(345,120)
15,721
(1,606,933)
(1,606,933)
-
Tax loss carried forward
(8,931,414)
1,448,066
-
(7,483,348)
(7,483,348)
-
Tax (assets)/ liabilities
-
(15,721)
15,721
-
(9,090,281)
9,090,281
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
3,646,188
334,186
1,138,457
5,090,117
10,208,948
-
10,208,948
Employee benefits
(1,086,870)
(186,543)
(4,121)
-
(1,277,534)
(1,277,534)
-
Tax loss carried
forward
(2,559,318)
(6,033,728)
-
(338,368)
(8,931,414)
(8,931,414)
-
Tax (assets)/ liabilities
-
(5,886,085)
1,134,336
4,751,749
-
(10,208,984)
10,208,948
(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
therefrom.
2024
2023
Tax losses
292,997,775
310,916,628
Expiration dates of the tax losses as of 31 December 2024:
Amount
Due date
Loss remaining from 2019 after deduction in subsequent years
(289,066,226)
31.12.2026
Loss arising from merger
(3,931,549)
31.12.2030
Total trade receivables, net
(292,997,775)
17 Trade receivables
31 December 2024
31 December 2023
Trade receivables, gross
157,153,704
157,085,125
Loss allowance
(155,218,508)
(155,337,719)
Total trade receivables, net
1,935,197
1,747,406
Receivables from related parties are presented in Note 29.
Trade receivables, gross, comprise:
31 December 2024
31 December 2023
Electricity receivables from clients in litigation, insolvency or
bankruptcy (mainly Oltchim, Transenergo)
129,966,217
129,532,963
Late payment penalties from clients in litigation, insolvency or
bankruptcy (Oltchim)
26,506,303
26,506,303
Other
681,185
1,045,859
Total trade receivables, gross
157,153,705
157,085,125
530
531
ELECTRICA 2024 ANNUAL REPORT
ELECTRICA 2024 ANNUAL REPORT
NOTES TO THE SEPARATE FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 DECEMBER 2024
NOTES TO THE SEPARATE FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 DECEMBER 2024
The reconciliation between the opening balances and the closing balances of the impairment for trade
receivables is as follows:
Loss allowance
2024
2023
Balance as at 1 January
155,337,719
160,675,756
Loss allowance recognized
-
-
Loss allowance used
(119,211)
(5,006,909)
Decrease in loss allowance
-
(568,609)
Trade receivables adjustments - merger
-
237,481
Balance as at 31 December
155,218,508
155,337,719
The ageing of trade receivables is presented in Note 28.
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 bankruptcy procedures. Due to the uncertainties
regarding the recoverability of the amounts owed by this customer, the Company recognized in prior years
a bad debt allowance for the entire amount receivable. During 2020, the Company adjusted 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.
As of 31 December 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.
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
was also adjusted with the same amount. As of 31 December 2023, and 31 December 2022, the balance of
receivables with Oltchim is RON 98,725,847, bad debt allowance being at the same amount.
Also, in 2023, receivables for SC ROMENERGY INDUSTRY SRL in amount of RON 2,917,262 and, receivables for
PETPROD SRL in amount of RON 2,591,163 were written off as a result of closing the insolvency procedure of the
debtor and removing it from the Trade Register. The bad debt allowance was also adjusted with the same
amount.
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.
18 Other receivables
31 December 2024
31 December 2023
Interest receivable
28,806,467
26,671,583
Other receivables
11,533,876
12,785,701
Bad debt allowance
(9,258,597)
(9,258,597)
Total other receivables, net
31,081,746
30,198,687
Interest receivable represents mainly interest to be received from related parties for the loans granted (Note
29).
The reconciliation between the opening balances and the closing balances of the impairment for other
receivables is as follows:
Loss allowance
2024
2023
Balance as at 1 January
9,258,597
9,258,597
Loss allowance recognized
-
-
Loss allowance used
-
-
Decrease in loss allowance
-
-
Balance as at 31 December
9,258,597
9,258,597
19 Cash and cash equivalents
31 December 2024
31 December 2023
Bank current accounts
8,013,268
3,179,760
Bank current accounts transferred on merger
-
15,379,476
Call deposits
-
595,005
Total cash and cash equivalents in the separate statement of
financial position
8,013,268
19,154,241
532
533
ELECTRICA 2024 ANNUAL REPORT
ELECTRICA 2024 ANNUAL REPORT
NOTES TO THE SEPARATE FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 DECEMBER 2024
NOTES TO THE SEPARATE FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 DECEMBER 2024
20 Property, plant and equipment
The reconciliation between the initial balance and the final balance of property, plant and equipment in 2024
and 2023 was as follows:
Land and land
improvement
Buildings
Equipment
Vehicles,
furniture
and office
equipment
Construction
in progress
Total
Gross carrying amount
Balance at 31 December 2023
73,330,925
34,240,158
50,981,253
3,194,797
10,509,851
172,256,985
Additions
-
-
294,314
363,782
41,753,814
42,411,909
Transfer from construction in
progress
-
-
641,136
-
-
641,136
Revaluation recognized in other
comprehensive income, net
-
-
-
-
-
-
Revaluation recognized in profit or
loss, net
-
-
-
-
-
-
Gross book value netted off
against the accumulated
depreciation at revaluation
-
-
-
-
-
-
Disposals
-
(1,900,668)
(48,609)
-
(6,111,149)
(8,060,426)
Balance at 31 December 2024
73,330,925
32,339,490
51,868,094
3,558,579
46,152,516
207,249,605
Accumulated depreciation
and impairment losses
Balance at 31 December 2023
-
1,900,668
22,122,136
1,015,452
2,134,443
27,172,699
Depreciation
-
783,396
2,366,860
275,318
-
3,425,575
Depreciation - merger
-
-
-
-
-
-
Accumulated depreciation of
disposals
-
-
(48,609)
-
-
(48,609)
Reversal of impairment of property,
plant, equipment net
-
(1,900,668)
-
-
-
(1,900,668)
Gross book value netted off
against the accumulated
depreciation at revaluation
-
-
-
-
-
-
Balance at 31 December 2024
-
783,396
24,440,388
1,290,770
2,134,443
28,648,997
Net carrying amounts
At 31 December 2023
73,330,925
32,339,490
28,859,117
2,179,345
8,375,408
145,084,286
At 31 December 2024
73,330,925
31,556,094
27,427,707
2,267,809
44,018,073
178,600,608
As at 31 December 2024, 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
of land and buildings. The revaluation was performed by an independent authorized valuer Darian DRS S.A..
Following the revaluation performed, the gain from the increase in value on the land and buildings was
charged to Other Comprehensive Income in amount of RON 6,988,472 and in Profit or Loss in amount of
RON 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
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.
The following table shows the valuation techniques used in measuring fair values (Level 3), as well as the
significant unobservable inputs used.
Category
Valuation technique
Significant
unobservable
inputs
Inter-relationship
between key
unobservable
inputs and fair value
measurement
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.
The estimated fair
value would increase/
(decrease) if:
• Adjustment for
liquidity, location or
size would be lower/
(higher).
Buildings
Market approach and discounted cash-flows (DCF)
method
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
liquidity, location,
size.
• Occupancy rates
(90%)
• Yield rates
(between 9% and
10%)
• Annual rent per
sqm (between 2
and 10 EUR/sqm),
depending on
location;
• 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)
534
535
ELECTRICA 2024 ANNUAL REPORT
ELECTRICA 2024 ANNUAL REPORT
NOTES TO THE SEPARATE FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 DECEMBER 2024
NOTES TO THE SEPARATE FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 DECEMBER 2024
21 Intangible assets
Intangible assets include mainly licenses and costs of implementation of the accounting system SAP and
licenses for various software, as follows:
Software and
licenses
Goodwill
Construction in
progress
Total
Gross carrying amount
Balance at 31 December 2023
2,087,585
1,446,450
993,912
4,527,947
Additions
12,438
-
437,975
450,413
Transfers from intangibles in progress
1,431,887
-
-
1,431,887
Goodwill
-
-
-
-
Disposals
(78,791)
-
(1,431,887)
(1,510,678)
Balance at 31 December 2024
3,453,119
1,446,450
0
4,899,569
Accumulated depreciation and impairment
losses
Balance at 31 December 2023
1,968,790
-
-
1,968,790
Amortisation
412,574
-
-
412,574
Amortisation - merger
-
-
-
-
Accumulated amortization of disposals
(78,791)
-
-
(78,791)
Balance at 31 December 2024
2,302,573
-
-
2,302,573
Net carrying amounts
At 31 December 2023
118,795
1,446,450
993,912
2,559,157
At 31 December 2024
1,150,546
1,446,450
0
2,596,996
22 Investments in subsidiaries
The investments in subsidiaries are presented as follows:
31 December 2024
31 December 2023
Gross value
Impairment
Net
Gross value
Impairment
Net
Distributie Energie Electrica
Romania S.A.
1,741,959,406
-
1,741,959,406
1,741,959,406
-
1,741,959,406
Electrica Furnizare S.A.
227,181,073
-
227,181,073
227,181,073
-
227,181,073
Electrica Serv S.A.
481,803,770
(164,368,925)
317,434,846
481,803,770
(164,368,925)
317,434,846
Sunwind Energy S.R.L.
5,868,857
-
5,868,857
5,128,655
-
5,128,655
New Trend Energy S.R.L. **
10,166,375
-
10,166,375
5,588,029
-
5,588,029
Foton Power Energy S.R.L. ***
14,708,017
-
14,708,017
12,636,221
-
12,636,221
Crucea Power ****
25,056,198
-
25,056,198
-
-
-
Servicii Energetice Oltenia S.A. (in
bankruptcy)
82,033,220
(82,033,220)
-
82,033,220
(82,033,220)
-
Servicii Energetice Moldova S.A. (in
bankruptcy)
106,162,492
(106,162,492)
-
106,162,492
(106,162,492)
-
Servicii Energetice Banat S.A. (in
bankruptcy )
43,761,094
(43,761,094)
-
43,761,094
(43,761,094)
-
Servicii Energetice Dobrogea S.A. (in
bankruptcy)
23,822,124
(23,822,124)
-
23,822,124
(23,822,124)
-
Total
2,762,522,627
(420,147,855)
2,342,374,772
2,730,076,085
(420,147,855)
2,309,928,230
** On 12th July 2024, Electrica completed the acquisition of New Trend Energy S.R.L..
*** On 12th September 2024, Electrica completed the acquisition of Foton Power Energy S.R.L.
**** On 15th October 2024, Electrica acquired an additional 20% of the social shares and voting interests of
Crucea Power Park S.R.L.
Changes in Company’s subsidiaries structure in 2024
On 12 July 2024, Electrica finalized the acquisition of New Trend Energy S.R.L., whose primary activity is the
production of energy from photovoltaic sources, by acquiring an additional 40% of the company’s social
shares and voting interests. As a result, Electrica now holds 100% of the social shares of New Trend Energy S.R.L.
On 12 September 2024, Electrica completed the acquisition of Foton Power Energy S.R.L., primarily engaged in
the production of energy from photovoltaic sources, by acquiring an additional 40% of the company’s social
shares and voting interests. Consequently, Electrica now owns 100% of the social shares of Foton Power Energy
S.R.L.
On 15 October 2024, Electrica acquired an additional 20% of the social shares and voting interests of Crucea
Power Park S.R.L., Group’s equity interest increased from 40% to 60%.
536
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ELECTRICA 2024 ANNUAL REPORT
ELECTRICA 2024 ANNUAL REPORT
NOTES TO THE SEPARATE FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 DECEMBER 2024
NOTES TO THE SEPARATE FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 DECEMBER 2024
23 Loans granted to subsidiariesr
i. Loans granted to subsidiaries – long term
Loans granted to subsidiaries
31 December 2024
31 December 2023
Distributie Energie Electrica Romania S.A.
756,325,000
1,276,325,000
Total loans granted to subsidiaries – long term
756,325,000
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. On November 6, 2024, an additional act was concluded in which the maturity of
the loan was extended until December 10, 2026, and the interest rate is composed of the reference
index ROBOR 3M (for 3 months) to which is added a margin of 1.3% p.a. As at 31 December 2024, the
outstanding balance is of RON 150,000,000 (31 December 2023: 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. On November 6, 2024, an additional act was concluded in which the maturity of
the loan was extended until December 10, 2026, and the interest rate is composed of the reference
index ROBOR 3M (for 3 months) to which is added a margin of 1.3% p.a. As at 31 December 2024, the
outstanding balance is of RON 200,000,000 (31 December 2023: 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. On November 6, 2024, an additional act was concluded in which the maturity of
the loan was extended until December 10, 2026, and the interest rate is composed of the reference
index ROBOR 3M (for 3 months) to which is added a margin of 1.3% p.a. As at 31 December 2024, the
outstanding balance is of RON 160,000,000 (31 December 2023: RON 160,000,000).
• 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 2024, the
outstanding balance is RON 246,325,000 (31 december 2023: RON 246,325,000).
• ii. Loans granted to subsidiaries – short term
Loans granted to subsidiaries
31 December 2024
31 December 2023
Distributie Energie Electrica Romania S.A.
520,000,000
-
ELectrica Furnizare S.A.
319,286,383
80,000,000
Sunwind Energy S.R.L.
72,749,691
2,475,699
Crucea Power
4,324,548
-
Foton
8,383,678
-
New Trend Energy S.R.L.
18,176,500
7,184,000
Total loans granted to subsidiaries – short term
942,920,800
89,659,699
• Short-term loans granted in 2018:
• Intragroup loan agreement concluded with Societatea de Distributie a Energiei Electrice Muntenia Nord
S.A. (currently Distributie Energie Electrica Romania S.A.) in April 2018. The main provisions are: Maximum
loan amount: RON 230,000,000; The purpose of the loan: financing the investment program related to
2018; Interest rate: 4.7% per year; Maturity: 84 months; Drawing period: 12 months; Full repayment at
maturity; Reimbursement allowed in advance, but not earlier than 12 months of the usage period. At
31 December 2024, the outstanding balance is RON 230,000,000 (31 December 2023: RON 230,000,000);
• Intragroup loan agreement concluded with Societatea de Distributie a Energiei Electrice Transilvania
Nord S.A. (currently Distributie Energie Electrica Romania S.A.) in April 2018. The main provisions are:
Maximum loan amount: RON 160,000,000; The purpose of the loan: financing the investment program
related to 2018; Interest rate: 4.7% per year; Maturity: 84 months; Drawing period: 12 months; Full
repayment at maturity; Reimbursement allowed in advance, but not earlier than 12 months of the
usage period. At 31 December 2024, the outstanding balance is RON 160,000,000 (31 December 2023:
RON 160,000,000);
• Intragroup loan agreement concluded with Societatea de Distributie a Energiei Electrice Transilvania
Sud S.A. (currently Distributie Energie Electrica Romania S.A.) in April 2018. The main provisions are:
Maximum loan amount: RON 130,000,000; The purpose of the loan: financing the investment program
related to 2018; Interest rate: 4.7% per year; Maturity: 84 months; Drawing period: 12 months; Full
repayment at maturity; Reimbursement allowed in advance, but not earlier than 12 months of the
usage period. At 31 December 2024, the outstanding balance is RON 130,000,000 (31 December 2023:
RON 130,000,000);
538
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ELECTRICA 2024 ANNUAL REPORT
NOTES TO THE SEPARATE FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 DECEMBER 2024
NOTES TO THE SEPARATE FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 DECEMBER 2024
• Short-term loans granted in 2023 and 2024:
• 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.
On 25 September 2024, an additional act was
concluded in which the maturity of the loan
was extended until 25 September 2025, and the
maximum value of the loan is RON 1,665,350.
As at 31 December 2024, the outstanding
balance is RON 1,665,300 (31 december 2023:
RON 676,500).
• Intragroup loan agreement with Sunwind
Energy S.R.L. concluded in November 2022.
Main provisions are: maximum loan amount:
RON 147,300,000, The purpose of granting
this loan is financing the investment works
necessary for the completion and operation 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. On 10 April 2024,
an additional act was concluded in which the
maturity of the loan was extended until 10 April
2025, and the maximum value of the loan is
RON 126,500,000. As at 31 December 2024, the
outstanding balance is RON 69,285,192 (31
december 2023: RON the balance was 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. On
02 April 2024, an additional act was concluded
in which the maturity of the loan was extended
until 06 April 2025. As at 31 December 2024 and
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
13.06.2023, 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 RON 8,517,600. Expiry
date and duration of the contract, including
the period of use, not exceeding 13.06.2024.
During 2024 the parties agree to supplement
the loan granted by Electrica SA to New Trend
Energy SRL up to the total cumulative amount
of RON 15,433,600 and maturity date of the loan
until 13 May 2025. As at 31 December 2024, the
balance of the loan granted is RON 13,676,500
(31 December 2023: RON 7,184,000).
• Intragroup loan agreement concluded with
New Trend Energy S.R.L. in January 2024. The
main provisions are: the maximum amount
of the loan: 200,000,000 RON, The purpose of
granting this loan is to finance the investment
works necessary for the completion and
operation of the „Satu Mare 3” photovoltaic
power plant, Interest rate: ROBOR 3M+ 1.16%
per year, the maturity of the loan until 16 May
2025. On December 31, 2024, the balance the
tax granted is zero.
• Intragroup loan agreement concluded with
New Trend Energy S.R.L. in July 2024. The main
provisions are: the maximum amount of the
loan: 4,500,000 RON, The purpose of granting
this loan is: 1. the repayment of the shareholder
loan granted to the company New Trend Energy
S.R.L., by Mr. Emanuel Muntmark according
to the „Agreement on the repayment of the
amounts borrowed under loan agreement no.
New Trend Energy S.R.L. 1/10.09.2020”, within
10 working days from the completion of the
Final Closing and the taking over of 100% of the
participations; 2. Payment of the invoice value
related to the development services provided
by Monsson S.R.L. (formerly Monsson Alma
SRL) to New Trend Energy S.R.L., the invoice to
be paid by New Trend Energy S.R.L., after taking
over 100% of the shares; 3. financing of some
operational costs that could appear in the
period immediately following the Closing (in
the maximum amount of up to RON 255,000);
Interest rate ROBOR 3M+ 1.16% per year, loan
maturity 12 months until 24 July 2025. On 31
December 2024, the balance of the granted
loan is RON 4,500,000.
• On 18.12.2023, an intragroup loan contract was
concluded with Electrica Furnizare S.A.. The
main provisions are: maximum loan amount:
RON 100,000,000, The purpose of this loan is
to finance the short-term working capital
requirement, Interest rate: ROBOR 3M+ 1.16%
per year, Maturity: 02.11.2024. On 25.10.2024,
an additional act was concluded in which
the interest rate was changed to ROBOR
1M+ 1.46% p.a. and maturity on 02.11.2025. On
31 December 2024, the balance of the loan
granted is RON 100,000,000 (31 December
2023: RON 80,000,000).
• Intragroup loan agreement concluded with
Electrica Furnizare S.A. in April 2024. The
main provisions are: the maximum amount
of the loan: RON 245,000,000, The purpose
of granting this loan is to make payments to
the electricity suppliers and the State Budget,
as well as to make payments to Distributie
Energie Electrica Romania S.A., Interest rate: 1.
for amounts worth RON 139,146,941: ROBOR 1M +
2.25% p.a.; 2. for amounts worth RON 13,299,955:
ROBOR 3M + 2.4% p.a.; 3. for amounts worth
RON 66,839,487: ROBOR 1M + 1.46% p.a.; for the
remaining amount up to RON 245,000,000,
respectively RON 25,713,617, the interest to
be paid is the one resulting from the ex-
ante analysis carried out by an independent
specialist in transfer prices prior to the release
of the amount, taking into account the market
value principle and communicated by ELSA to
the Borrower through a notification sent one
working day before the date of release of the
amount, Maturity: 08.04.2025. On 31 December
2024, the balance of the granted loan is RON
219,286,383.
• Intragroup loan contract concluded with
FOTON POWER ENERGY SRL in October 2023. The
main provisions are: the maximum amount
of the loan: RON 3,640,108, the due date and
duration of the contract, including the period
of use, not exceeding 10.10.2024. On October
8, 2024, an additional deed was concluded in
which the maturity of the loan was extended
until 10 October 2025. On 31 December 2024, the
balance of the granted loan is RON 3,223,987
(31 December 2023: RON 2,937,987).
• Intragroup loan agreement concluded with
FOTON POWER ENERGY SRL in January 2024. The
main provisions are: maximum loan amount:
RON 245,000,000, The purpose of granting
this loan is to finance the investment works
necessary for the completion and operation of
the „BIHOR” photovoltaic power plant, Interest
rate: ROBOR 3M+1.16%, Maturity: 16.05.2025. On
31 December 2024, the balance of the granted
loan is zero.
• Intragroup loan agreement concluded with
FOTON POWER ENERGY SRL in September
2024. The main provisions are: the maximum
amount of the loan: RON 5,460,000, The
purpose of granting this loan is: (i) repayment
of the associate loan granted to Foton Power
Energy S.R.L., by Mr. Emanuel Muntmark; (ii)
payment of the invoice value related to the
development services provided by Monsson
S.R.L. (formerly Monsson Alma SRL) to Foton
Power Energy S.R.L.; (iii) the financing of some
operational costs (in the maximum amount
of up to 300 thousand RON), Interest rate:
ROBOR 3M +1.16%, Maturity: 26.09.2025. On 31
December 2024, the balance of the granted
loan is RON 5,159,691.
• Intragroup loan agreement concluded with
CRUCEA POWER PARK S.R.L. in November
2024. The main provisions are: the maximum
amount of the loan: RON 1,601,500, The purpose
540
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ELECTRICA 2024 ANNUAL REPORT
ELECTRICA 2024 ANNUAL REPORT
NOTES TO THE SEPARATE FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 DECEMBER 2024
NOTES TO THE SEPARATE FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 DECEMBER 2024
of granting this loan is the financing of all costs
(including, but not limited to: notary fees, ANCPI
taxes, taxes owed by the seller and deducted
from the price by the buyer (if applicable), as
well as any other adjacent costs necessary
to fulfill the object of the contract, related to
the purchase of the share of 29.11% of the land
related to the joint connection station for the
project developed by CPP (Centrala Electrica
Crucea Est), with a total area of 83,299 square
meters, located in the outskirts of Vulturu,
Constanta County, Plot A78/16/2/1, registered
in the land register no. 101721 Vulturu, at a total
price of up to determined as a share of 29.11%
of EUR 1,083,982, Interest rate: ROBOR 3M to
which a margin of 1.16% is added, The duration
of the contract is 12 months, with maturity until
19.11.2025. On 31 December 2024, the balance
of the loan granted is RON 1,590,415.
• Intragroup loan agreement concluded with
CRUCEA POWER PARK S.R.L. in December
2024. The main provisions are: the maximum
amount of the loan: RON 1,259,181,000, The
purpose of granting this loan is the financing
of the investment works necessary for the
completion and operation of the „Crucea Est”
wind power plant - the Crucea Est wind project,
Interest rate: ROBOR 3M to which a margin of
1.16% is added, The duration of the contract
is 12 months, due until dated 04.12.2025. On
December 31, 2024, the balance of the granted
loan is zero.
• Intragroup loan agreement concluded with
CRUCEA POWER PARK S.R.L. in December 2024.
The main provisions are: the maximum amount
of the loan: RON 3,233,000. The purpose of
this loan is to finance the costs related to the
payment of invoices issued by Transelectrica
S.A. issued based on the connection contract
no. C1031/11.11.2024, Interest rate: ROBOR 3M to
which a margin of 1.16% is added, The duration
of the contract is 12 months, with maturity until
18.12.2025. On 31 December 2024, the balance
of the granted loan is RON 2,734,133.
• Intragroup loan agreement concluded with
CRUCEA POWER PARK S.R.L. in October 2024.
The main provisions are: the maximum
amount of the loan: RON 400,000. The purpose
of granting this loan is the financing of some
operational costs that could appear in the
period immediately following the Stage 3
Closing, as well as the total/partial bearing of
some costs that are the responsibility of ELSA
according to art. 8.9 of the SPA, in a maximum
amount of up to RON 400,000, Interest rate:
ROBOR 3M to which a margin of 1.16% is added,
The duration of the contract is 12 months, with
maturity until 16.10.2025. On 31 December 2024,
the balance of the granted loan is zero.
iii. Cash pooling system at Group level
1. 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; Through the internal
treasury agreements concluded by Electrica SA
with each of the participants, later amended
by additional documents, the Internal Interest
Rate was established: ROBOR 1M + 0.83% 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 1 SRL
(starting with 30 December 2020) as participants;
The credit facility offered by the coordinator
is RON 245,000,000 for Electrica Furnizare S.A.,
RON 15,000,000 for Electrica Energie Verde 1
SRL and RON 12,000,000 for Electrica Serv S.A.;
The credit facility offered by the participants
to the pool leader is up to the amount of
RON 180,000,000 for Electrica Furnizare S.A.;
RON 10,000,000 for Electrica Energie Verde
1 SRL; RON 50,000,000 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 of the
participants is nil. In case the balance of the master
bank account of Electrica SA is not sufficient to cover
the negative balance of the current bank accounts
of the participants, the bank will make available the
necessary funds from the overdraft facility that will
be signed between the bank and Electrica SA.
2. On 18 January 18 2024, between BRD - Groupe
Societe
Generale
SA,
Electrica
SA
and
its
subsidiaries (Electrica Furnizare S.A., Electrica
Serv S.A., Distributie Energetica Romania) as
participants, a contract regarding the granting
by the Bank of a credit facility was concluded, as
follows: The borrower can use until 17.01.2026, the
maximum value of the facility is of 150,000,000
RON, Variable Interest Rate ROBOR 1M + margin of
1.35% per year for Uses in RON.
As of 31 December 2024, the credit facility has an
outstanding balance of RON 313,553,595 (31 December
2023: RON 205,520,079). For the amounts drawn/
transferred to the cash pooling systems between
Electrica SA and the other participants, please refer
to Note 29.
24 Capital and reserves
(a) Share capital, share premium, gains and losses
referring to share issue
The issued share capital in nominal terms consists
of ordinary shares as 339,553,004 at 31 December
2024 (31 December 2023: 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
542
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ELECTRICA 2024 ANNUAL REPORT
ELECTRICA 2024 ANNUAL REPORT
NOTES TO THE SEPARATE FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 DECEMBER 2024
NOTES TO THE SEPARATE FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 DECEMBER 2024
securities.
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.
On 11 July 2024, the Bucharest Trade Registry Office
approved the request to reduce Electrica’s share
capital, as decided by the Extraordinary General
Meeting of Shareholders. The share capital of
Electrica was thus reduced from RON 3,464,435,970
to RON 3,395,530,040, and the number of shares was
reduced from 346,443,597 to 339,553,004 shares.
As a result of the share capital reduction, the
Romanian State holds 49.7850% of the subscribed
share capital, while other shareholders (individuals
and legal entities) hold 50.2150% of the share capital.
On 19 July 2024, the Financial Supervisory Authority
(ASF) issued the Certificate of Registration of Financial
Instruments (CIIF) no. AC-4023-3 / 19.07.2024,
reflecting the share capital reduction corresponding
to the value of the treasury shares held since 2014.
On 22 July 2024, the Central Depository implemented
the reduction of Electrica’s share capital by canceling
the treasury shares.
(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 (totaling
6,890,593 shares). The total amount paid for
acquiring the shares and Global Depositary Receipts
was RON 75,372,435.
(c) Revaluation reserves
The reconciliation between opening and closing balance of the revaluation reserve is as follows:
2024
2023
Balance at 1 January
20,258,665
11,806,704
Revaluation of property, plant and equipment
-
6,988,472
Revaluation of property, plant and equipment – merger
-
2,701,689
Deferred tax liability arising on revaluation of property, plant and equipment
-
(1,138,457)
Deferred tax liability arising on revaluation of property, plant and equipment –
merger
-
(62,344)
Release of revaluation reserve to retained earnings corresponding to
depreciation and disposals of property, plant and equipment
(227,893)
(37,399)
Balance at 31 December
20,030,772
20,258,665
(d) Legal reserves
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 2024, the legal reserves were in amount of 235,159,000 RON (31 December 2023: RON
231,595,694).
(e) Dividends
The dividends distributed by the Company in 2024 and 2023 (from the statutory profits of preceding years)
were as follows:
2024
2023
Distributed dividends
39,999,343
39,999,343
On 25 April 2024, the General Shareholders Meeting of the Company approved the net distributable profit of
2023 as follows:
• Dividends to be distributed to shareholders: RON 39,999,343;
• Legal reserve (5% from 2023 pre-tax profit): RON 2,160,391;
• Other reserves: RON 18,218,899.
On 27 April 2023, the General Shareholders Meeting of the Company approved the net distributable profit of
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.
544
545
ELECTRICA 2024 ANNUAL REPORT
ELECTRICA 2024 ANNUAL REPORT
NOTES TO THE SEPARATE FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 DECEMBER 2024
NOTES TO THE SEPARATE FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 DECEMBER 2024
The total amount of dividends to be distributed to shareholders in 2024 was of RON 39,999,343 (2023: RON
39,999,343). The value of dividends per share distributed to the shareholders of the Company were: RON 0.1178
per share (2023: RON 0.1178 per share).
In April 2024, within Electrica S.A., EGMS approved the cancellation of 6,890,593 own shares (respectively the
reduction of the company’s share capital from RON 3,464,435,970 to RON 3,395,530,040), which represents
1.988951% of the share capital and the reduction of the number of shares shares from 346,443,597 shares to
339,553,004 shares, obtained through the stabilization that took place within the Initial Public Offering of June
2014.
In the year 2023, when calculating dividends per share, the own shares repurchased by the Company
(6,890,593 shares) are not considered to be shares in circulation and are deducted from the total number of
ordinary shares issued.
Out of the dividends declared by the Company of RON 39,999,343 (2023: RON 39,999,343), the dividends paid
were RON 39,982,739 (2023: RON 40,136,410), the difference representing dividends paid to shareholders for
previous periods.
25 Trade payables
31 December 2024
31 December 2023
Energy suppliers
4,728,750
19,248
Property, plant and equipment suppliers
981,092
46,698
Suppliers – related parties (Note 31)
687,052
1,018,220
Other suppliers
1,383,589
5,561,264
Total
7,780,483
6,645,430
Payables to related parties are detailed in Note 29.
26 Other payables
31 December 2024
31 December 2023
Current
Non-current
Current
Non-current
Dividends payable
1,598,182
-
1,581,577
-
Other payables to the state budget
119,492
-
11,730
-
Other liabilities
5,251,477
-
1,738,926
-
Total
6,969,151
-
3,332,233
-
Other liabilities include mainly guarantees and sundry creditors. Dividends payable represent the dividends
uncollected by the shareholders.
27 Provisions
Litigations and other risks
Balance at 1 January 2024
725,084
Provisions recognized
753,887
Provisions utilized
-
Provisions reversed
6,000
Balance at 31 December 2024
1,484,971
The provisions balance consists of:
a) provisions in amount of RON 1,251,118 as at 31 December 2024 (31 December 2023: RON 499,488) 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 2024 (31 December 2023: RON 225,598) referring to
various litigations.
c) other provisions in amount of RON 8,256 as at 31 December 2024 (31 December 2023: RON 0)
28 Financial instruments - fair values and risk management
(a) Accounting classifications and fair values
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.
The Company doesn’t have real Group guarantees, only corporate guarantees disclosed on note 31
Commitments.
The Company 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 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.
546
547
ELECTRICA 2024 ANNUAL REPORT
ELECTRICA 2024 ANNUAL REPORT
NOTES TO THE SEPARATE FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 DECEMBER 2024
NOTES TO THE SEPARATE FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 DECEMBER 2024
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 15).
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.
Impairment
The following table provides information about the exposure to credit risk and expected credit losses for trade
receivables for customers as at 31 December 2024:
31 December 2024
Expected loss
rates (“ECL”)
Gross value
Lifetime ECL
Net trade
receivables
Credit
impaired
Neither past due nor impaired
0%
414,459
414,459
No
Past due 1-30 days
0%
(1)
(1)
No
Past due 31-60 days
0%
505
505
No
Past due 61-90 days
0%
(1)
(1)
No
Past due more than 90 days
99%
156,738,742
(155,218,508)
1,520,234
Yes
Total
157,153,704
(155,218,508)
1,935,196
Allowances for impairment are referring mainly to Oltchim in amount of RON 98,725,847 (31 December 2023:
RON 98,725,847), Transenergo Com in amount of RON 37,084,601 (31 December 2023: RON 37,084,601) and to
Fidelis Energy in amount of RON 11,154,320 (31 December 2023: RON 11,154,320). Please see Note 17.
An analysis of trade receivables from the point of view of the credit risk and expected credit losses for trade
receivables for customers as of 31 December 2023, is as follows:
31 December 2023
Expected loss
rates (“ECL”)
Gross value
Lifetime ECL
Net trade
receivables
Credit
impaired
Neither past due nor impaired
0%
1,743,932
-
1,743,932
No
Past due 1-30 days
0%
945
-
945
No
Past due 31-60 days
0%
-
-
-
No
Past due 61-90 days
0%
-
-
-
No
Past due more than 90 days
100%
155,340,248
(155,337,719)
2,529
Yes
Total
157,085,126
(155,337,719)
1,747,406
(ii) Liquidity risk
Liquidity risk is the risk that the Company might encounter difficulty in meeting the obligations associated
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 expected
cash outflows on financial liabilities. The Company also monitors the level of expected cash inflows on trade
receivables together with expected cash outflows on trade and other payables.
Exposure to liquidity risk
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.
Carrying
amount
Contractual cash flows
Financial liabilities
Total
less than 1
year
1-2 years
2-5 years
more than
5 years
31 December 2024
Bank overdrafts
313,553,595
313,553,595
313,553,595
Trade payables
7,780,483
7,780,483
7,780,483
Lease liability
17,499,215
17,499,215
847,482
875,557
1,060,869
14,715,307
Total
338,833,293
338,833,293
322,181,560
875,557
1,060,869
14,715,307
31 December 2023
Bank overdrafts
205,520,079
205,520,079
205,520,079
-
-
Trade payables
6,645,430
6,645,430
6,645,430
-
-
Lease liability
4,069,161
4,069,161
797,944
530,385
1,028,021
1,712,811
Total
216,234,670
216,234,670
212,963,453
530,385
1,028,021
1,712,811
(iii) Market risk
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 risk
management is to manage and control market risk exposures within acceptable parameters, while 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.
548
549
ELECTRICA 2024 ANNUAL REPORT
ELECTRICA 2024 ANNUAL REPORT
NOTES TO THE SEPARATE FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 DECEMBER 2024
NOTES TO THE SEPARATE FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 DECEMBER 2024
Exposure to currency risk
The summary of the quantitative data about the Company’s exposure to currency risk is as follows:
31 December 2024
31 December 2023
In RON
denominated in EUR
denominated in EUR
Cash and cash equivalents
1,686,406
1,663,525
Lease liability
(17,499,215)
(4,069,161)
Net statement of financial position exposure
(15,812,809)
(2,405,636)
The following significant exchange rates have been applied during the year:
Average rate
Year-end spot rate
RON
2024
2023
2024
2023
EUR 1
4.9746
4.9464
4.9741
4.9746
Sensitivity analysis
A reasonable possible appreciation (depreciation) of the EUR against RON at 31 December would have affected
the measurement of financial instruments denominated in a foreign currency, the profit before tax 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.
Profit before tax
Effect
Appreciation
Depreciation
31 December 2024
EUR (5% movement)
(156,299)
156,299
31 December 2023
EUR (5% movement)
(24,179)
24,179
Interest rate risk
The Company exposures to interest rates on financial assets and financial liabilities are detailed below.
The Company is exposed to the interest rate benchmark ROBOR, which is the interest rate on the Romanian
interbank market. The Company does not have in place hedging contracts for interest rate.
Exposure to interest rate risk
The interest rate profile of the Company’s interest-bearing financial instruments is as follows:
Fixed-rate instruments
31 December 2024
31 December 2023
Financial assets
Call deposits
-
-
-
-
Variable-rate instruments
31 December 2024
31 December 2023
Financial assets
Cash pooling receivables (Note 23, Note 29)
482,860,094
567,646,476
Financial liabilities
Cash pooling payables (Note 23, Note 29)
(170,101,192)
(47,764,297)
Bank overdrafts (Note 18)
(313,553,595)
(205,520,079)
Lease liability
(17,499,215)
(4,069,161)
Total
(18,293,908)
310,292,939
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.
Profit before tax
50 bp increase
50 bp decrease
31 December 2024
Variable-rate instruments
91,470
(91,470)
31 December 2023
Variable-rate instruments
1,551,465
(1,551,465)
550
551
ELECTRICA 2024 ANNUAL REPORT
ELECTRICA 2024 ANNUAL REPORT
NOTES TO THE SEPARATE FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 DECEMBER 2024
NOTES TO THE SEPARATE FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 DECEMBER 2024
29 Related parties
(a) Main shareholders
As at 31 December 2024 and 31 December 2023, 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 49.785% from the
share capital (31 December 2023: 48.79%).
(b) Management and administrators’ compensation
2024
2023
Management compensation
3,159,506
4,324,861
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 of
mandate contracts for executive directors.
Compensations granted to the members of the Board of Directors were as follows:
2024
2023
Members of Board of Directors
2,827,754
2,616,568
Electrica SA’s Board of Directors comprises 7 members. According to the remuneration policy approved 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 2024 and 2023.
(c) Transactions with the Group companies
(i) Balance of receivables and payables from/ to Group companies:
Trade Receivables/Trade Payables
Receivables from
Payables to
31 December
2024
31 December
2023
31 December
2024
31 December
2023
Distributie Energie Electrica Romania S.A.
518,814
1,197,710
0
17,091
Electrica Serv S.A.
179,565
471,687
148,750
867,776
Electrica Furnizare S.A.
1,725,564
1,575,132
538,302
133,353
Sunwind Energy S.R.L.
-
3,894
-
-
Foton Power Energy S.R.L.
3,552
-
-
-
New Trend Energy S.R.L.
4,944
-
-
-
Total
2,432,439
3,248,423
687,052
1,018,220
As of 31 December 2024 and 31 December 2023, receivables from electricity distribution subsidiaries include
mainly other services reinvoiced.
Loans granted/interest receivable:
Loans granted to
Interest receivable from
31 December
2024
31 December
2023
31 December
2024
31 December
2023
Distributie Energie Electrica Romania S.A.
1,276,325,000
1,276,325,000
21,320,873
19,183,225
Electrica Furnizare S.A.
319,286,383
80,000,000
2,093,363
230,533
Sunwind Energy S.R.L.
72,749,691
2,475,699
1,210,912
189,908
New Trend Energy S.R.L.
18,176,500
7,184,000
1,135,031
316,550
Crucea Power Park S.R.L.
4,324,548
-
-
-
Foton Power Energy S.R.L.
8,383,678
2,937,987
317,963
43,847
Total
1,699,245,800
1,368,922,686
26,078,142
19,964,063
Cash-pooling system 31 December 2024:
Amount drawn
by participants
Amount
contributed by
participants
Net position
Interest
receivable/
(payable)
31 December
2024
31 December
2024
31 December
2024
31 December
2024
Distributie Energie Electrica Romania S.A.
-
(114,500,097)
(114,500,097)
151,020
Electrica Furnizare S.A.
482,860,094
-
482,860,094
3,059,440
Electrica Serv S.A.
-
(55,601,095)
(55,601,095)
(482,135)
Total
482,860,094
(170,101,192)
312,758,902
2,728,325
Cash-pooling system 31 December 2023:
Amount drawn
by participants
Amount
contributed by
participants
Net position
Interest
receivable/
(payable)
31 December
2023
31 December
2023
31 December
2023
31 December
2023
Distributie Energie Electrica Romania S.A.
350,786,382
-
350,786,382
5,470,721
Electrica Furnizare S.A.
216,860,094
-
216,860,094
1,518,731
Electrica Serv S.A.
-
(47,764,297)
(47,764,297)
(281,932)
Total
567,646,476
(47,764,297)
519,882,179
6,707,520
552
553
ELECTRICA 2024 ANNUAL REPORT
ELECTRICA 2024 ANNUAL REPORT
NOTES TO THE SEPARATE FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 DECEMBER 2024
NOTES TO THE SEPARATE FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 DECEMBER 2024
(ii) Transactions with subsidiaries
Sales/Purchases
Sales
in 2024
Sales
in 2023
Purchases
in 2024
Purchases
in 2023
Distributie Energie Electrica Romania S.A.
1,630,153
1,886,897
1,054,027
15,859
Electrica Furnizare S.A.
8,576,140
2,967,606
666,943
543,221
Electrica Serv S.A.
693,942
497,076
263,298
1,829,184
Electrica Energie Productie S.A.
-
91,439
-
-
Green Energy Consultancy & Investments S.R.L.
-
32,365
-
-
Electrica Energie Verde 1 S.R.L.
-
6,599
-
-
Sunwind Energy S.R.L.
5,844
3,272
-
-
Foton Power Energy S.R.L.
2,985
-
-
-
New Trend Energy S.R.L.
4,524
-
-
-
Total
10,913,588
5,485,254
1,984,268
2,388,264
Reimbursements / Borrowings
Borrowings
granted in 2024
Borrowings
granted in 2023
Reimbursements
in 2024
Reimbursements
in 2023
Distributie Energie Electrica Romania S.A.
-
-
-
-
Electrica Furnizare S.A.
239,286,383
80,000,000
-
-
Sunwind Energy S.R.L.
70,273,992
1,875,699
-
-
New Trend Energy S.R.L.
10,992,500
4,784,000
-
-
Green Energy Consultancy & Investments S.R.L.
-
2,698,920
-
-
Foton Power Energy S.R.L.
5,445,691
2,937,987
-
-
Crucea Power Park S.R.L.
4,324,548
-
-
-
Total
330,323,114
92,296,606
-
-
Interest income for loans
Interest income
2024
Interest income
2023
Distributie Energie Electrica Romania S.A.
51,487,016
47,972,160
Electrica Furnizare S.A.
19,135,899
230,533
Electrica Energie Productie S.A.
-
3,370,918
Sunwind Energy S.R.L.
1,021,004
177,538
New Trend Energy S.R.L.
818,481
213,766
Green Energy Consultancy & Investments S.R.L.
-
135,945
Foton Power Energy S.R.L.
274,116
43,847
Crucea Power Park S.R.L.
17,913
-
Total
72,754,431
52,144,707
Cash pooling system – interest income/(expense)
Interest
income/(expense)
2024
Interest
income/(expense)
2023
Distributie Energie Electrica Romania S.A.
6,004,709
27,404,262
Electrica Energie Verde 1 S.R.L.
-
203,426
Electrica Serv S.A.
(2,817,320)
(2,816,408)
Electrica Furnizare S.A.
34,344,198
18,961,026
Total
37,531,588
43,752,306
(d) Transactions with companies in which the state has control or significant influence
The Company had sales and purchase transactions mainly with the following companies:
Purchases (without VAT)
Balance (including VAT)
Supplier
2024
2023
31 December 2024
31 December 2023
ANCOM
570,672
567,684
142,668
141,921
Transelectrica
35,500
-
2,152
-
OPCOM
998,673
-
35,532
-
Depozitar Central
64,386
-
4,308
-
Bursa de Valori Bucuresti
105,287
-
-
-
Electrocentrale Grup SA
616,133
-
65,141
-
Administratia Patrimoniului
Protocolului de Stat RA
161,423
-
-
-
Others
127,172
245,147
-
1,437
Total
2,679,246
812,831
249,801
143,358
554
555
ELECTRICA 2024 ANNUAL REPORT
ELECTRICA 2024 ANNUAL REPORT
NOTES TO THE SEPARATE FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 DECEMBER 2024
NOTES TO THE SEPARATE FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 DECEMBER 2024
Sales
(without VAT)
Balance, gross
(including VAT)
Allowance
(including VAT)
Balance, net
Client
2024
31 December 2024
Oltchim
-
98,725,847
(98,725,847)
-
CET Braila
-
3,118,411
(3,118,411)
-
Transelectrica
315,982
261,504
-
261,504
OPCOM
1,153,560
38,580
-
38,580
Hidroelectrica
1,233,804
-
-
-
Others
50,027
-
-
-
Total
2,753,372
102,144,343
(101,844,258)
300,084
Sales
(without VAT)
Balance, gross
(including VAT)
Allowance
(including VAT)
Balance, net
Client
2023
31 December 2023
Oltchim
-
98,725,847
(98,725,847)
-
CET Braila
-
3,118,411
(3,118,411)
-
Total
-
101,844,258
(101,844,258)
-
30 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
periods. Electrica SA filed a complaint with the tax authorities against the enforcement order and also filed 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
prior years of RON 72,460,387.
In February 2018, Electrica SA obtained a favorable Supreme Court ruling in one of the litigations with NAFA,
which essentially maintains into force a prior Court of Appeal decision, which is favorable for the Company.
Also, in April 2019, Electrica SA obtained another favorable 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 cancellation by prescription of the amount of RON 16,915,950 representing
income tax as well as all the related accessories, decision that forms the object of the appeal declared by
NAFA, with a trial date of 17.11.2021, at the High Court of Cassation and Justice. Moreover, in November 2019,
Electrica SA obtained one more favorable 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.
In 2024 the main action was dismissed as unfounded. The appellant is ordered to pay the sum of RON 10,000
by way of costs (reduced attorney’s fees). The decision is final.
Thus, until 31 December 2024, 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
Other litigations and claims
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, labor-related litigations etc.).
As summarized 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 favorable outcomes of those litigations or disputes. The Company does not present information in
the financial statements and did not set provisions for items for which the management assessed as remote
the possibility of outflow of economic benefits.
The Company discloses, if needed, information on the most significant items of litigation 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 events not
wholly within the control of the Company (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).
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 established.
Consequently, companies may be found liable for significant taxes and fines. Moreover, tax 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.
During 2024, the Company was subject to a fiscal inspection by NAFA, for the fiscal period 2017-2021. The
inspection started in February 2024 and still continues in 2025.
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NOTES TO THE SEPARATE FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 DECEMBER 2024
NOTES TO THE SEPARATE FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 DECEMBER 2024
(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.
31 Commitments
a) Contractual commitments
Contractual commitments as of 31 December 2024 and 31 December 2023 are as follows:
31 December 2024
31 December 2023
Purchase of property, plant and equipment, intangible assets and
other maintenance and repairs services
10,969,495
5,955,625
Purchase of investments
14,998,268
45,121,884
Total
25,967,763
51,077,509
b) Guarantees and pledges
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 2024
is RON 173,393,336 (31 December 2023: RON 139,314,062). 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 7,637,424
(31 December 2023: RON 247,549,722).
c) Audit fees
The total fees for the year 2024 amounted to EUR 127,200, broken down as follows:
• Audit fees: EUR 16,200 for the statutory standalone audit for the year ended 31.12.2024 and EUR 102,500 for
the audit of the sustainability declaration for 2024.
• Non-audit fees: EUR 8,500 for the 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.
32 Subsequent events
On February 7, 2025, Electrica completed the acquisition of Crucea Power Park SRL (CPP), whose main activity
is the production of energy from wind sources. During the Extraordinary General Meeting of Shareholders
(EGMS) of 5 February 2025, the shareholders approved the investment project that will be carried out by
CPP with a total investment value of up to EUR 253,000,000, without VAT, as well as the granting of a loan by
Electrica S.A. to CPP, in Public for the purpose of financing the investment works necessary for the completion
and operation of the “Crucea Est” wind power plant.
According to EGMS Resolution no. 1 of 20.12.2024, published in Monitorul Oficial during 2025, the increase of the
share capital for Eectrica Esyasoft Smart Solutions S.A. is approved, through a cash contribution made by the
2 shareholders:
• Easyasoft Enterprise Holding RSC LTD, a number of 621,987,500 shares, in the amount of 125,000,000 EUR,
the equivalent of 621,987,500 RON, having a nominal value of 1 RON each;
• Electrica S.A., a number of 207,329,167 shares, in the amount of 41,666,666.73 EUR, the equivalent of
207,329,167 RON, with a nominal value of 1 RON each.
Chief Executive Officer
Alexandru-Aurelian Chirita
Chief Financial Officer
Stefan Alexandru Frangulea
27 March 2025
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INDEPENDENT AUDITOR’S REPORT
ON THE AUDIT OF THE SEPARATE
FINANCIAL STATEMENTS
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
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316AFCE5D663AA5D26EB01879BE4D1A2
INDEPENDENT AUDITOR’S REPORT
To the Shareholders,
SOCIETATEA ENERGETICA ELECTRICA S.A.
Report on the Audit of the Separate 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 separate statement of financial position as at December 31, 2024, and the separate statement of
comprehensive income, separate statement of changes in equity and separate statement of cash flows for the year then
ended, including a summary of significant accounting policies and notes to the separate financial statements.
2.
The separate financial statements as at December 31, 2024 are identified as follows:
•
Net assets/ Equity
RON 4,009,798,664
•
Net profit for the financial year
RON
69,323,755
3.
In our opinion, the accompanying separate financial statements present fairly, in all material respects, the separate financial
position of the Company as at December 31, 2024, and its separate financial performance and its separate cash flows for the
year then ended in accordance with Order 2844/2016, with subsequent amendments, for the approval of accounting
regulations conforming with International Financial Reporting Standards as adopted by 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 (forth named “the Regulation”) and Law 162/2017 (“the Law”). 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’ Code of Ethics for Professional Accountants (IESBA Code), in accordance with ethical requirements relevant for
the audit of the financial statements in Romania including the Regulation and the Law 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.
Key Audit Matters
5.
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.
2
Key audit matters
How our audit addressed the key audit matter
Going Concern
As presented in Note 7 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.
In particular the subsidiaries of the Company operate 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 subsidiaries of the Company’s operating cash flows. In the
forthcoming twelve months the subsidiaries will need to extend
the existing 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
extension of the existing financing and on stabilizing of the
regulatory regime on energy prices as described in note 7, 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.
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 debt facilities in course of
negotiation, during 2025 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;
Other information
6.
The administrator is responsible for preparation and presentation of the other information. The other information comprises
the Administrator’s report and the Remuneration report, but does not include the separate financial statements and our
auditor’s report thereon.
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, 2024, 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 Administrator’s 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 as adopted by EU, article no. 20.
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 for the financial year for which the separate financial statements
have been prepared is consistent, in all material respects, with these separate financial statements;
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 as adopted by EU, article no. 20;
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INDEPENDENT AUDITOR’S REPORT ON THE AUDIT OF THE SEPARATE FINANCIAL STATEMENTS
3
c)
the Remuneration report has been prepared, in all material respects, in accordance with the provisions of Law 24/2017,
articles. no. 106 – 107.
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, 2024, we are required to report if we have identified a
material misstatement of this Administrator’s 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
7.
Management is responsible for the preparation and fair presentation of the separate financial statements in accordance with
Order 2844/2016, with subsequent amendments, for the approval of accounting regulations conforming with International
Financial Reporting Standards as adopted by EU 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.
8.
In preparing the 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.
9.
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
10.
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.
11.
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.
4
12.
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.
13.
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.
14.
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
15.
We have been appointed by the General Assembly 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, 2024. The uninterrupted total
duration of our commitment is 7 years, covering the financial years ended December 31, 2018 and December 31, 2024.
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 and 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.
Report on Other Legal and Regulatory Requirements – Report on the Information Regarding Income Tax
16.
For the financial year preceding the financial year for which the financial statements were prepared, the Company was not
required under Ministry of Public Finance Order no. 2844/2016 approving the accounting regulations compliant with
International Financial Reporting Standards, with subsequent amendments, articles 602 - 606, to publish a report on
income tax information.
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 financial statements included in the annual financial report of ABC (“the Company”) as
presented in the digital files which contain the unique LEI code 213800P4SUNUM5AUDX61 (“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 financial statements to be submitted in accordance with Order
2844/2016, with subsequent amendments.
Those charged with governance are responsible for overseeing the preparation of the Digital Files that comply with ESEF.
(II)
Auditor’s Responsibilities for the Audit of the Digital Files
Our responsibility is to express a conclusion on whether the 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.
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INDEPENDENT AUDITOR’S REPORT ON THE AUDIT OF THE SEPARATE FINANCIAL STATEMENTS
5
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 financial statements of the Company to be submitted in accordance with
Order 2844/2016, with subsequent amendments;
evaluating if the 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 financial statements for the year ended 31 December 2024 included in the annual financial report in the Digital
Files comply in all materials respects with the requirements of ESEF.
In this section, we do not express an audit opinion, review conclusion or any other assurance conclusion on the financial
statements. Our qualified opinion relating to the financial statements of the Company for the year ended 31 December 2024 is set
out in the “Report on the audit of the financial statements” section above.
The engagement partner on the audit resulting in this independent auditor’s report is Razvan Ungureanu.
Razvan Ungureanu, Audit Partner
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
10 April 2025
For signature, please refer to the original
signed Romanian version.
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INDEPENDENT AUDITOR’S REPORT ON THE AUDIT OF THE SEPARATE FINANCIAL STATEMENTS
INDEPENDENT AUDITOR’S REPORT ON THE AUDIT OF THE SEPARATE FINANCIAL STATEMENTS
CONSOLIDATED FINANCIAL STATEMENTS
as at and for the year ended
31 December 2024
prepared in accordance with
OMFP no. 2844/2016
(All amounts are in THOUSAND RON, if not otherwise stated)
Free translation from Romanian, which is the official and binding version
568
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ELECTRICA 2024 ANNUAL REPORT
ELECTRICA 2024 ANNUAL REPORT
Consolidated statement of financial position
570
Consolidated statement of profit or loss
572
Consolidated statement of comprehensive income
573
Consolidated statement of changes in equity
574
Consolidated statement of cash flows
576
Notes to the consolidated financial statements
Basis of preparation
1.
Reporting entity and general information
578
2.
Basis of accounting
586
3.
Functional and presentation currency
586
4.
Use of judgments and estimates
586
Accounting policies
5.
Basis of measurement
588
6.
Accounting policies
588
7.
Disclosure for the additional set of the consolidated financial statements
602
Performance for the year
8.
Operating segments
603
9.
Revenue
606
10.
Electricity, natural gas and merchandise purchased
606
11.
Other operating income and expenses
606
12.
Net finance result
607
13.
Earnings per share
608
Employee benefits
14.
Short-term employee benefits
608
15.
Post-employment and other long-term employee benefits
609
16.
Employee benefit expenses
612
Contents
CONSOLIDATED FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 DECEMBER 2024
PREPARED IN ACCORDANCE WITH OMFP NO. 2844/2016
Income taxes
17.
Income taxes
613
Assets
18.
Trade receivables
615
19.
Other receivables
617
20.
Cash and cash equivalents
617
21.
Inventories
618
22.
Property, plant and equipment
618
23.
Intangible assets
621
Equity and liabilities
24.
Capital and reserves
623
25.
Trade payables
625
26.
Other payables
625
27.
Provisions
626
28.
Bank borrowings and overdrafts
627
Financial instruments
29.
Financial instruments - Fair values and risk management
634
Other information
30.
Acquisition of subsidiary
639
31.
Related parties
640
32.
Contingencies
642
33.
Commitments
643
34.
Subsequent events
644
CONSOLIDATED FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 DECEMBER 2024
PREPARED IN ACCORDANCE WITH OMFP NO. 2844/2016
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ELECTRICA 2024 ANNUAL REPORT
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Note
31 December
2024
31 December
2023
ASSETS
Non-current assets
Intangible assets related to concession arrangements
23
6,678,207
6,220,530
Intangible assets from the capitalization of own technological
consumption
23
755,349
770,934
Other intangible assets
23
31,293
27,822
Goodwill
49,767
24,663
Property, plant and equipment
22
736,921
594,994
Investments in associates
30
23
16,638
Other investments
7,000
7,000
Deferred tax assets
17
84,627
32,404
Other non-current assets
4,391
51,954
Right of use assets
39,435
40,993
Total non-current assets
8,387,013
7,787,932
Current assets
Trade receivables
18
3,675,688
2,540,442
Subsidies receivable
18
1,976,697
2,614,535
Other receivables
19
74,713
93,832
Cash and cash equivalents
20
454,455
377,215
Inventories
21
111,896
115,660
Prepayments
5,059
12,935
Current income tax receivable
8,949
-
Assets held for sale
280
280
Total current assets
6,307,737
5,754,899
Total assets
14,694,750
13,542,830
EQUITY AND LIABILITIES
Equity
Share capital
24
3,395,530
3,464,436
Share premium
24
103,049
103,049
Treasury shares reserve
24
-
(75,372)
Pre-paid capital contributions in kind from shareholders
24
7
7
Revaluation reserve
24
150,268
159,536
Legal reserves
24
490,833
449,363
Retained earnings
2,195,784
1,906,981
Total equity attributable to the owners of the Company
6,335,471
6,008,000
Non-controlling interests
(25)
(451)
Total equity
6,335,446
6,007,549
(Continued on next page)
CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2024
Note
31 December
2024
31 December
2023
Liabilities
Non-current liabilities
Lease liability – long term
34,379
29,143
Deferred tax liabilities
17
249,021
244,666
Employee benefits
14
162,697
151,358
Other payables
26
45,692
37,161
Long-term bank borrowings
28
1,824,506
794,348
Total non-current liabilities
2,316,295
1,256,676
Current liabilities
Current portion of long-term bank borrowings
28
565,835
523,294
Lease liability – short term
7,411
14,052
Bank overdrafts
28
2,490,609
2,851,221
Trade payables
25
1,146,413
1,671,478
Other payables
26
1,585,864
1,035,084
Deferred revenue
6,626
7,837
Employee benefits
14, 15
150,863
120,548
Provisions
27
75,905
41,167
Current tax liabilities
13,483
13,924
Total current liabilities
6,043,009
6,278,605
Total liabilities
8,359,304
7,535,281
Total equity and liabilities
14,694,750
13,542,830
The accompanying notes are an integral part of these consolidated financial statements.
Chief Executive Officer
Alexandru-Aurelian Chirita
Chief Financial Officer
Stefan Alexandru Frangulea
27 March 2025
CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2024
OMFP 2844/2016
OMFP 2844/2016
572
573
ELECTRICA 2024 ANNUAL REPORT
ELECTRICA 2024 ANNUAL REPORT
Note
2024
2023
Revenue
9
8,995,202
9,816,593
Capitalised costs of intangible non-current assets
23
190,073
18,617
Other income
11
1,688,891
3,498,553
Electricity, natural gas and merchandise purchased
10
(6,588,827)
(9,057,976)
Construction costs related to concession agreements
23
(932,651)
(976,436)
Employee benefits
16
(1,077,562)
(962,065)
Repairs, maintenance and materials
(130,953)
(95,218)
Depreciation and amortization
22, 23
(803,822)
(723,721)
Impairment for trade and other receivables, net
18, 19
(101,964)
(75,820)
Other operating expenses
11
(489,977)
(431,399)
Operating profit
748,410
1,011,128
Finance income
12
12,622
3,425
Finance costs
12
(289,844)
(297,220)
Net finance cost
(277,222)
(293,795)
Share of results of associates
30
(10)
(39)
Profit before tax
471,178
717,294
Income tax expense
17
(94,727)
(96,914)
Profit for the year
376,451
620,380
Profit for the year attributable to:
- owners of the Company
376,484
620,494
- non-controlling interests
(33)
(114)
Profit for the year
376,451
620,380
Earnings per share
Basic and diluted earnings per share (RON)
13
1.11
1.83
The accompanying notes are an integral part of these consolidated financial statements.
Chief Executive Officer
Alexandru-Aurelian Chirita
Chief Financial Officer
Stefan Alexandru Frangulea
27 March 2025
CONSOLIDATED STATEMENT OF PROFIT OR LOSS FOR THE YEAR ENDED 31 DECEMBER 2024
Note
2024
2023
Profit for the year
376,451
620,380
Other comprehensive income
Items that will not be reclassified to profit or loss
Revaluation of property, plant and equipment
22
-
85,510
Tax related to revaluation of property, plant and equipment
17
-
(13,699)
Re-measurements of the defined benefit liability
15
(1,460)
(11,918)
Tax related to re-measurements of the defined benefit liability
17
233
1,907
Other comprehensive income, net of tax
(1,227)
61,800
Total comprehensive income
375,224
682,180
Total comprehensive income attributable to:
- owners of the Company
375,257
682,294
- non-controlling interests
(33)
(114)
Total comprehensive income
375,224
682,180
The accompanying notes are an integral part of these consolidated financial statements.
Chief Executive Officer
Alexandru-Aurelian Chirita
Chief Financial Officer
Stefan Alexandru Frangulea
27 March 2025
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER 2024
OMFP 2844/2016
OMFP 2844/2016
574
575
ELECTRICA 2024 ANNUAL REPORT
ELECTRICA 2024 ANNUAL REPORT
(Continued on next page)
Note
Share
capital
Share
premium
Treasury
shares
reserve
Pre-paid capital
contributions
in kind from
shareholders
Revaluation
reserve
Legal
reserves
Retained
earnings
Total
equity
Non-
controlling
interests
Total
equity
Balance at 1 January 2024
3,464,436
103,049
(75,372)
7
159,536
449,363
1,906,981
6,008,000
(451)
6,007,549
Comprehensive income
Profit for the year
-
-
-
-
-
-
376,484
376,484
(33)
376,451
Other comprehensive profit
-
-
-
-
-
-
(1,227)
(1,227)
-
(1,227)
Total comprehensive profit
-
-
-
-
-
-
375,257
375,257
(33)
375,224
Transactions with owners of the
Company
Contributions and distributions
Reduction of ordinary shares
24
(68,906)
75,372
-
-
-
(6,466)
-
-
-
Dividends to the owners of the
Company
24
-
-
-
-
-
-
(39,999)
(39,999)
-
(39,999)
Total contributions and
distributions
(68,906)
75,372
-
-
-
(46,465)
(39,999)
-
(39,999)
Changes in ownership interests
Acquisition of non-controlling
interest without a change in control
-
-
-
-
-
-
(7,850)
(7,850)
484
(7,366)
Acquisition of subsidiary with
non-controlling interests
30
-
-
-
-
-
-
63
63
(25)
38
Total changes in ownership
interests
-
-
-
-
-
-
(7,787)
(7,787)
459
(7,328)
Total transactions with owners of
the Company
(68,906)
75,372
-
-
-
(54,252)
(47,786)
459
(47,327)
Other changes in equity
Set up of legal reserves
24
-
-
-
-
-
41,470
(41,470)
-
-
-
Transfer of revaluation reserve
to retained earnings due to
depreciation and disposals of
property, plant and equipment
24
-
-
-
-
(9,268)
-
9,268
-
-
-
Balance at 31 December 2024
3,395,530
103,049
-
7
150,268
490,833
2,195,784
6,335,471
(25)
6,335,446
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 DECEMBER 2024
Note
Share
capital
Share
premium
Treasury
shares
reserve
Pre-paid capital
contributions
in kind from
shareholders
Revaluation
reserve
Legal
reserves
Retained
earnings
Total
equity
Non-
controlling
interests
Total
equity
Balance at 1 January 2023
3,464,436
103,049
(75,372)
7
92,117
429,583
1,353,942
5,367,762
(516)
5,367,246
Comprehensive income
Profit for the year
-
-
-
-
-
-
620,494
620,494
(114)
620,380
Other comprehensive profit
-
-
-
-
71,811
-
(10,011)
61,800
-
61,800
Total comprehensive profit
-
-
-
-
71,811
-
610,483
682,294
(114)
682,180
Transactions with owners of the
Company
Contributions and distributions
Dividends to the owners of the
Company
24
-
-
-
-
-
-
(39,999)
(39,999)
-
(39,999)
Total contributions and
distributions
-
-
-
-
-
-
(39,999)
(39,999)
-
(39,999)
Changes in ownership interests
Acquisition non-controlling
interests without a change of
control
-
-
-
-
-
-
(2,057)
(2,057)
179
(1,878)
Total changes in ownership
interests
-
-
-
-
-
-
(2,057)
(2,057)
179
(1,878)
Total transactions with owners of
the Company
-
-
-
-
-
-
(42,056)
(42,056)
179
(41,877)
Other changes in equity
Set up of legal reserves
24
-
-
-
-
-
19,780
(19,780)
-
-
-
Transfer of revaluation reserve
to retained earnings due to
depreciation and disposals of
property, plant and equipment
24
-
-
-
-
(4,392)
-
4,392
-
-
-
Balance at 31 December 2023
3,464,436
103,049
(75,372)
7
159,536
449,363
1,906,981
6,008,000
(451)
6,007,549
The accompanying notes are an integral part of these consolidated financial statements.
Chief Executive Officer
Alexandru-Aurelian Chirita
Chief Financial Officer
Stefan Alexandru Frangulea
27 March 2025
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 DECEMBER 2024
OMFP 2844/2016
OMFP 2844/2016
576
577
ELECTRICA 2024 ANNUAL REPORT
ELECTRICA 2024 ANNUAL REPORT
Note
2024
2023
Cash flows from operating activities
Profit for the year
376,451
620,380
Adjustments for:
Depreciation
22
18,113
16,391
Amortisation
23
785,709
707,330
Capitalised costs of intangible non-current assets
23
(190,073)
(18,617)
Reversal of impairment of property, plant and equipment and
intangible assets, net
22, 23
(1,901)
-
Revaluation of property, plant and equipment recognized in profit
or loss, net
22
-
(2,081)
Loss/(gain) on disposal of property, plant and equipment and
intangible assets
22, 23
1,899
(82)
Impairment of trade and other receivables, net
18, 19
101,964
75,820
Change in provisions, net
27
34,738
(12,534)
Net finance cost
12
277,222
293,795
Changes due to employee benefits
26,344
29,380
Share of loss of associates
30
10
39
Income tax expense
17
94,727
96,914
1,525,203
1,806,735
Changes in:
Trade receivables
(1,561,766)
(309,158)
Subsidies receivable
637,838
(1,333,747)
Other receivables
14,431
5,636
Prepayments
7,876
939
Inventories
3,764
(1,688)
Trade payables
(112,243)
244,355
Other payables
628,975
109,565
Deferred revenue
(1,211)
(16,913)
Cash used in operating activities
1,142,867
505,724
Interest paid
(294,908)
(278,462)
Income tax paid
(147,322)
(58,993)
Net cash flow from operating activities
700,637
168,269
(Continued on next page)
CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2024
Note
2024
2023
Cash flows from investing activities
Payments for purchases of property, plant and equipment
(149,166)
(10,391)
Payments for network construction related to concession
agreements
23
(1,085,671)
(845,331)
Payments for purchase of other intangible assets
(16,516)
(21,313)
Proceeds from sale of property, plant and equipment
-
232
Interest received
12,112
3,270
Acquisition of investments in associates
30
-
(4,149)
Payments for acquisition of subsidiaries, net of cash acquired
(8,451)
(6,308)
Payments for non-controlling interest acquired without change in
control
(7,366)
(1,924)
Net cash flow used in investing activities
(1,255,058)
(885,914)
Cash flows from financing activities
Proceeds from long-term bank borrowings
28
1,635,481
742,658
Proceeds from overdrafts
82,253
271,943
Repayment of long-term bank loans
28
(1,018,909)
(187,730)
Payment of lease liabilities
(27,181)
(26,762)
Dividends paid
24
(39,983)
(40,136)
Net cash generated from financing activities
631,661
759,973
Net increase in cash and cash equivalents
77,240
42,328
Cash and cash equivalents at 1 January
20
377,215
334,887
Cash and cash equivalents at 31 December
20
454,455
377,215
The accompanying notes are an integral part of these consolidated financial statements.
The non-cash transactions are disclosed in Note 20.
Chief Executive Officer
Alexandru-Aurelian Chirita
Chief Financial Officer
Stefan Alexandru Frangulea
27 March 2025
CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2024
OMFP 2844/2016
OMFP 2844/2016
578
579
ELECTRICA 2024 ANNUAL REPORT
ELECTRICA 2024 ANNUAL REPORT
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 DECEMBER 2024
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 DECEMBER 2024
OMFP 2844/2016
OMFP 2844/2016
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 2024.
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 J2000007425408.
As at 31 December 2024 and 31 December 2023, 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 49.785% from the
share capital (31 December 2023: 48.79%).
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 2024 the Company’s subsidiaries are the following:
Subsidiary
Activity
Sole
registration
code
Head Office
% shareholding
as at 31 December
2024
Distributie Energie Electrica
Romania S.A. (“DEER”)
Electricity distribution in
geographical areas Transilvania
Nord, Transilvania Sud and
Muntenia Nord
14476722
Cluj-Napoca
99.99999929%
Electrica Furnizare S.A. (“EFSA”)
Electricity and natural gas supply
28909028
Bucuresti
99.9998444099934%
Electrica Serv S.A. (“SERV”)
Services in the energy sector
(maintenance, repairs,
construction)
17329505
Bucuresti
99.99998095%
Sunwind Energy S.R.L.
Electricity generation
42910478
Bucuresti
100%
New Trend Energy S.R.L.
Electricity generation
42921590
Bucuresti
100%
Foton Power Energy S.R.L.
Electricity generation
43652555
Bucuresti
100%
Crucea Power Park S.R.L. (“CPP”)
Electricity generation
25242042
Constanta
60%
As at 31 December 2023 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
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)
17329505
Bucuresti
99.99998095%
Sunwind Energy S.R.L.
Electricity generation
42910478
Constanta
100%
New Trend Energy S.R.L.
Electricity generation
42921590
Constanta
60%
Foton Power Energy S.R.L.
Electricity generation
43652555
Constanta
60%
As at 31 December 2024 and 31 December 2023, the Company’s associates are the following:
Associate
Activity
Sole
registration
code
Head Office
% shareholding
as at 31
December 2024
% shareholding
as at 31
December 2023
Crucea Power Park SRL
Electricity generation
25242042
Constanta
-
40%
Electrica EsyaSoft Smart
Solutions S.A (“EsyaSoft”)
Manufacture of
accumulators and
batteries
50993644
Bucuresti
25%
-
Changes in Group structure during 2024
Acquisition of shares in subsidiaries
On 15 October 2024, Electrica SA acquired another 20% of the shares and voting rights of Crucea Power Park
S.R.L. (“CPP”), the developer of the “Crucea Est” wind project (with an installed capacity of 121 MW and a
storage capacity of 60 MWh), located in the rural area of Crucea commune, Constanta county. Consequently,
the Group’s participation increased from 40% to 60%, and thus Crucea Power Park S.R.L. became a subsidiary
of the Electrica Group (see Note 30).
On 12 September 2024, Electrica SA completed the acquisition of Foton Power Energy SRL, whose main activity
is the production of energy from photovoltaic sources. Foton Power Energy SRL is developing the “Bihor 1”
photovoltaic project with an authorized installed capacity of 77,525 MW, located in the vicinity of Oradea
municipality. The project is in the “ready-to-build” phase.
On 12 July 2024, Electrica SA completed the acquisition of New Trend Energy SRL, a company whose main
activity is the production of energy from photovoltaic sources. New Trend Energy SRL is developing the “Satu
Mare 3” photovoltaic project with an authorized installed capacity of 57 MW, located in the vicinity of Doba
commune, Satu Mare County. The project is in the “ready-to-build” phase.
580
581
ELECTRICA 2024 ANNUAL REPORT
ELECTRICA 2024 ANNUAL REPORT
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 DECEMBER 2024
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 DECEMBER 2024
OMFP 2844/2016
OMFP 2844/2016
Acquisition of shares in associates
On 5 December 2024, the company Electrica EsyaSoft Smart Solutions S.A. (“EsyaSoft”) was also established,
in which ELSA holds 25% of the company’s share capital and the remaining 75% is held by Esyasoft Enteprise
Holding RSC LTD. EsyaSoft will focus on smart grid technologies (including storage solutions - batteries and
grid digitalization).
Group’s main activities
The activities of the Group include operation and construction of electricity distribution networks and
electricity and natural gas supply to final consumers, as well as energy production from renewable sources.
The Group is the electricity distribution operator and the main electricity supplier in Muntenia Nord area
(Prahova, Buzau, Dambovita, Braila, Galati and Vrancea counties), Transilvania Nord area (Cluj, Maramures,
Satu Mare, Salaj, Bihor and Bistrita Nasaud counties) and Transilvania Sud area (Brasov, Alba, Sibiu, Mures,
Harghita and Covasna counties), operating with transformation station and 0.4 kV to 110 kV power lines.
The Company’s distribution subsidiary, Distributie Energie Electrica Romania S.A. which resulted from the
merger of the three distribution subsidiaries Societatea de Distributie a Energiei Electrice Transilvania Nord
S.A., Societatea de Distributie a Energiei Electrice Muntenia Nord S.A. and Societatea de Distributie a Energiei
Electrice Transilvania Sud S.A. now operates electric lines in 18 counties, from three geographical areas of
the country, representing 40.8% of the Romanian territory, and serves over 3.98 million users. It invoices the
electricity distribution service to electricity suppliers (mainly to Electrica Furnizare S.A. subsidiary) which
further invoices the electricity consumption to final consumers.
The electricity supply segment operates through Electrica Furnizare S.A. (“EFSA”), with its main activity
electricity supply to end users, on the universal service segment and as a supplier of last resort, and as a
supplier on the competitive market, all over Romania.
The Group holds an electricity supply license that covers the entire territory of Romania, valid until 2031. In
order to extend the EFSA operations in Hungary, an electricity trading license was granted by the Autority for
Regulation of Electricity and Public Utilities in Hungary (MEKH) to Electrica Furnizare, by Decision no. H879/2022.
EFSA also holds a natural gas supply license valid until 2032. In 2024, EFSA was designated supplier of last
resort for electricity in March and August, and for natural gas it was nominated supplier of last resort in June.
The Group is active in the production of electricity, especially from renewable sources.
(b) Regulations in the energy sector
Regulatory environment
The activity in the energy sector is regulated by the Romanian Energy Regulatory Authority.
Some of the main responsibilities of ANRE are to approve prices and tariffs and to issue substantiation
methodologies used to set regulated prices and tariffs.
Electricity distribution
The distribution tariffs approved by the National Authority for Energy Regulation (“ANRE”) are as follows (RON/
MWh, presented cumulatively for medium and low voltage levels):
Order 28/23.03.2022
1 April 2022 – 31 March 2023
High voltage
Medium voltage
Low voltage
Transilvania Nord area
23.77
57.49
144.73
Transilvania Sud area
24.63
54.52
158.84
Muntenia Nord area
23.35
56.70
175.26
Order 27/29.03.2023
1 April 2023 – 31 December 2023
High voltage
Medium voltage
Low voltage
Transilvania Nord area
29.09
71.38
182.24
Transilvania Sud area
28.48
62.32
171.97
Muntenia Nord area
31.23
69.44
229.96
Order 115/20.12.2023
Starting 1 January 2024
High voltage
Medium voltage
Low voltage
Transilvania Nord area
31.22
74.86
190.16
Transilvania Sud area
29.55
63.05
185.49
Muntenia Nord area
34.72
74.69
238.63
Ordin 97/20.12.2024
Starting 1 January 2025
Distribution operator
Voltage
Unit
Specific tariff,
comprising of:
non CPT
component
CPT util
component
CPT util_sc
component
Societatea Distributie
Energie Electrica
Romania - S.A.
High
RON/MWh
34.14
26.32
7.03
0.79
Medium
RON/MWh
80.69
46.38
30.84
3.47
Low
RON/MWh
236.10
146.35
80.68
9.07
In 2022, according to the Government’s emergency ordinance (GEO) no. 119/2022, approved through Law
no. 357/2022, the additional costs for purchased electricity (determined as the difference between the
realized costs and the costs included in the approved distribution tariffs), made between 1 January 2022
and 31 March 2025, in order to cover the own technological consumption, compared to the costs included
582
583
ELECTRICA 2024 ANNUAL REPORT
ELECTRICA 2024 ANNUAL REPORT
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 DECEMBER 2024
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 DECEMBER 2024
OMFP 2844/2016
OMFP 2844/2016
in the tariffs regulated (and not only borrowings),
are capitalized quarterly and remunerated with
50% of the regulated rate of return (RRR) approved
by ANRE, applicable during the amortization period
of the respective costs and are recognized as a
distinctive component in the regulated tariffs, called
the component related to additional costs with the
own technological consumption (“NL”). Also, ANRE
elaborated the Methodological norms regarding
the recognition in the tariffs of the additional costs
with the acquisition of electricity for covering the
network losses compared to 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.
Tariff adjustments
Annually, ANRE makes revenue corrections due to:
change in the quantities of electricity distributed
compared to the forecast; change in quantities and
acquisition price for the regulated own technological
consumption compared to the forecast; the annual
change in controllable operating and maintenance
costs, realized and accepted against the forecast;
annual change in uncontrollable operating and
maintenance costs compared to the forecast;
changes in revenues from reactive energy compared
to the forecast; failure to meet/exceeding the
approved
investments
programme;
revenues
generated from other operations made by the
distribution operator and the quantity of electricity
recovered from recalculations.
In regulated activities, the regulatory authority
establishes, through the tariff adjustment mechanism
(as presented above), the criteria for recognizing
surpluses or deficits related to a period in future
periods. 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 tariff changes in subsequent
periods.
Electricity and natural gas supply
The
regulatory
framework
suffered
significant
changes in the last decade in respect of: electricity
and natural gas market liberalisation, separation of
supply and distribution activities, implementation of
the support scheme for renewable energy, support
for the electricity consumers and prices caps for end
users.
Starting with 1 November 2021, in the context of the
increase in prices for the electricity and natural
gas markets at international and national level,
the energy crisis, in Romania a series of support
measures for electricity and natural gas customers
have been applied, by establishing compensation
and capping schemes between 1 November 2021 and
31 March 2025.
Over 2023 and 2024, 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;
• The limitation of the average purchase price
considered for determining the amounts to be
recovered from the state budget initially to 1,300
RON/MWh; then to 900 RON/MWh (according to
Law no. 206/2023, which approves GEO 153/2022)
and starting with 1 April 2024 to 700 RON/MWh
(according to GEO 32/2024);
• The mechanism of centralized purchase of
electric energy (MACEE) provides that OPCOM, as
sole acquirer, to buy 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 electricity
transmission system operator and electricity
distribution system operators to cover their own
technological consumption. For the contracts
concluded by 31 March 2024, 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);
Starting with 1 April 2024, the MACEE price
changes, respectively it decreases from 450 lei/
MWh to 400 lei/MWh. At the same time, producers
can sell electricity voluntarily through MACEE.
• The obligation to store natural gas was calculated
by ANRE based on two criteria: the obligation of
all suppliers to store a quantity of gas that would
cover 90% of Romania’s storage capacity and the
market share that each supplier had in the gas
year 2022-2023 (Electrica Furnizare S.A. market
share was 0.82%). The storage obligation for the
2024-2025 cycle was established by ANRE by
decision no. 360/28.02.2024 at a volume of 219
GWh, an obligation that must be fulfilled by 31
October 2024, according to legal requirements;
• The obligation of natural gas producers to sell
at the price of 150 RON/MWh the necessary
quantities to supply household customers/heat
energy producers changes starting 1 April 2024,
meaning the sale price of natural gas decreased
from 150 lei/MWh to 120 lei/MWh.
In accordance with the provisions of GEO no. 32/2024
from 1 April 2024:
• the rule regarding the payment of 40% of the
amount related to the capping within 10 days
from the date of submission of the application
is changed - in the new guide for the payment
of the amount related to the capping there are
10 days from the date ANRE confirms to ME/ANPIS
the correctness data „within the limits of the
amounts available in the Energy Transition Fund
and other legally established amounts”;
• suppliers receive guarantees of origin for the
quantity contracted through MACEE;
• the percentage for the accepted profit in order to
overtax the trading activity increases to 10%;
• between 1 April 2025 and 31 March 2026, suppliers
can prepare offers for final customers only if the
purchase covers at least 50% of the consumption
requirement of the portfolio held;
• the natural gas supply component was increased
from 12 lei/MWh to 15 lei/MWh for non-FUI
customers, and for natural gas customers taken
over as a last resort, the increase is from 13.5 lei/
MWh to 15 lei/MWh.
Additionally, on 29.07.2024, ANRE modified the
Guide for completing the data that is uploaded
on the ANRE portal in order to settle from the state
budget the amounts related to price capping for
final customers, with applicability from 1 January
2024 for electricity. The main changes consist in the
recognition of the amount for which the settlement
is made, respectively the consumption billed for
the month of analysis, and the way of allocating
imbalances based on the weight of the consumption
made by each category of customers (eligible and
FUI, including the wholesale market). This algorithm
for allocating purchase costs significantly impacts
the full recovery of costs recorded by suppliers.
Law no. 316/2024 was published in the Official
Gazette on 23 December 2024, which approved
GEO no. 32/2024 and introduced a settlement
procedure for the volumes of electricity/natural
gas for which payment was requested, applicable
until 31 March 2026. The settlement of the amounts
paid from the State budget to the electricity and
natural gas suppliers, after submission to ANRE, for
each month of the period and for each category of
customers benefitting from the capped final price,
of information related to energy quantities invoiced
for the months of consumption within the applicable
period, following certain changes of the amounts
already paid from the State budget.
The categories of customers to whom the electricity
price capped applies in 2024 (for all customers the
capping mechanism is applied, but differentiated
based on tranche and category):
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• 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 a price
capped at 1.0 lei/KWh, category of customers
benefiting from capping for 100% of consumption,
price capped at 1.0 lei/KWh and the rest of the
companies at a maximum price of 1.3 lei/KWh.
The categories of customers to whom the natural
gas price capped applies in 2023 and in 2024:
• household customers – the maximum price is
capped at 0.31 lei/KWh;
• non-household customers - the maximum
price is capped at 0.37 lei/KWh for an annual
consumption of up to 50 GWh.
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 (for
further details please refer to Note 19).
Transactions on the competitive wholesale market
are
transparent,
public,
centralized
and
non-
discriminatory. Participants on the wholesale market
can trade electricity based on bilateral contracts
concluded on dedicated markets.
According to the provisions of GEO no. 27/2022, with
subsequent amendments and additions, the capping
support scheme applies until 31 March 2025.
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, 6 (six) green certificates
for each MWh of electricity produced and delivered
to the grid, out 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. Those two GC postponed from trading
are to be recovered in equal monthly tranches
starting from 1 January 2021 until 31 December 2030.
The green certificates issued by Transelectrica for
the production made 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
including the period after the expiration of the validity
period of the accreditation decision (31 January 2028
in the case of the Stanesti photovoltaic park).
The sale of green certificates can be made on OPCOM
markets (spot and combined market). The selling
price has to be within the minimum and maximum
values provided by Law 220/2008 (para. 11) on
establishing the system to promote the production of
energy from renewable energy sources, republished
and subsequently amended.
For 2025 OPCOM set the minimum value of a green
certificate to 146,2532 RON (29,4 euro), while for 2024
the minimum value was 145,4271 RON.
Electricity price
The regulatory framework on the electricity segment
has undergone significant changes in the last decade,
regarding the total liberalization of the electricity
and natural gas market, the implementation of the
support scheme for renewable energy, the support of
electricity consumers, the limitation of prices to final
consumers and the capitalization of additional costs
with own technological consumption.
According to the Emergency Ordinance no. 153/2022,
during the period 1 January 2023 – 31 March 2025, the
centralized electricity purchase mechanism (MACEE)
was established, OPCOM being designated as the
sole purchaser. The distribution operators („OD”)
will buy from OPCOM through an annual/monthly
mechanism at least 75% of the quantity forecast and
validated by ANRE at the price of 450 lei/MWh, and
the producers will sell to OPCOM through an annual/
monthly mechanism 80% of the quantity forecast and
validated by ANRE and Transelectrica at the price of
450 lei/MWh. Emergency Ordinance no. 32/2024,
modifies and completes GEO no. 27/2022, and for
the period April 1, 2024 - December 31, 2024, MACEE
is modified, so that producers will voluntarily sell to
OPCOM at the price of 400 lei/MWh and OD will buy
electricity from OPCOM at the price of 400 lei/MWh.
As
a
result,
for
the
distribution
segment,
Romanian Regulatory Authority for Energy – ANRE
(https://www.anre.ro/) adopted measures through
its Order no. 129/12.10.2022, amended by Order no. 104
approving the Methodological Norms regarding the
recognition in the tariffs of the additional costs with
the acquisition of electricity for own technological
consumption compared to the costs included in the
regulated tariffs, carried out between 1 January 2022
– 31 March 2025.
This change in energy sector has generated last
year a new reporting requirement for an accounting
treatment in place to cover own technological
consumption and it was updated in the OMFP
2844/2016 i.e. it now allows the capitalization of
such additional costs related to own technological
consumption („CPT”) as intangible asset which has
to be depreciated linearly over next 5 years (please
see Notes 6 and 23).
According to OUG 119/2022 and ANRE regulations, the
capitalised costs of intangible non-current assets are
recorded in the accounting records and therefore on
the annual financial statements according to OMFP
2844/2016 with the instructions developed by the
Ministry of Finance. ANRE will determine the recognized
annual amounts of the costs based on the quantities
and prices recognized for NL, and by 15 March of the
year immediately following the year of the additional
costs, ANRE will transmit to the distribution operators
the recognized annual amounts of the costs for the
previous year. The computation of the 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.
For the supply segment, both in 2024 and in 2023,
the effect of retail electricity prices was covered by
subsidies, which must be recovered from the state
authorities, as a result of the application of the price
capping mechanism for electricity and natural gas
to final customers and as a result of application of
GEO 27/2022, with subsequent amendments and
additions. The manner of implementation of this
mechanism and the settlement mechanism of the
amounts granted as support to clients, ex post from
the state budget to the electricity suppliers, have
generated constraints in terms of cash flow, as
well as uncertainties regarding the recovery the full
amount of the respective amounts by the suppliers.
In this context, EFSA has adapted to these changes, to
manage their impact on the company’s activities in
a responsible and sustainable manner in the context
of a regulatory framework that has seen numerous
successive and major updates.
The Group actively reviews and implements policies
and strategies to recover from the loss generated
by the increase in energy price, strategies which
mainly aim in revising the method of generating
the selling price for final consumers, concluding
agreements with specific clauses ensuring new
financing facilities, closely monitoring suppliers and
consumers payment terms, monitoring daily cash
flow and forecasted cash flow. The Group continues
to closely monitor the macroeconomic outlook and
as additional information will be available, their
effects on the activity of Group companies and over
the financial results will be analyzed.
Geopolitical tensions
In
February
2022
global
geopolitical
tensions
significantly
escalated
following
military
interventions in Ukraine by the Russian Federation. As
a result of these escalations, economic uncertainties
in energy and capital markets have increased, with
global energy prices expected to be highly volatile
for the foreseeable future. As at the date of these
consolidated financial statements, management is
unable to reliably estimate the effects on the Groups
financial outlook and cannot exclude adverse
consequence on the business, operations, and
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financial position. Management believes it is taking all
the necessary measures to support the sustainability
and growth of the Group’s business in the current
circumstances and that judgements used in these
financial statements remain appropriate.
Cyber-attack
On 9 December 2024, the Group has been subject
to a cyber-attack. The Group’s team of specialists,
that has been worked closely with the national
cybersecurity authorities, has managed to put in
place the relevant protocols to address the incident.
Based on preliminary report from cybersecurity
authorities the infrastructure and critical systems
were not affected, and the Group was able to
successfully restore the back-ups from the previous
periods. At the date of the issuance of these financial
statements, the investigation is still undergoing,
however the group does not except any significant
negative impact to occur.
2 Basis of accounting
These annual consolidated financial statements
have been prepared in accordance with OMFP no.
2844/2016. The consolidated financial statements
were authorized for issue by the Board of Directors on
27 March 2025 and will be submitted for shareholders’
approval in the meeting scheduled on 29 April 2025.
These consolidated financial statements are not in
compliance with IFRS-EU.
Starting with the consolidated financial statements
as at and for the year ended 31 December 2022
the
Group’s
financial
statements
prepared
in
accordance with the Order of Ministry of Public
Finances 2844/2016 included the capitalization of
the additional costs with the purchase of electricity
made between 1 January 2022 and 31 March 2025, in
order to cover the own technological consumption
(NL) for economic operators for energy transport and
distribution services, which is capitalized quarterly,
the first asset (intangible asset) being registered
on 30 September 2022. Order of the Ministry of
Public Finance (OMFP) no. 3900/2022 was issued
and brings additional accounting specifications
to the accounting regulations in force at OMFP
no. 2844/2016, which provided for the financial-
accounting treatment applied to the additional
costs not recovered through the tariff related to the
own technological consumption of the distribution
operators (OD).
The Group has consistently applied the accounting
policies to all periods presented in these consolidated
financial
statements.
Details
of
the
Group’s
accounting policies are included in Note 6.
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.
(a) Judgements
Information about judgements made in applying
accounting policies that have the most significant
effects on the amounts recognised in the consolidated
financial statements is included below.
Revenue recognition
The Group assesses its revenue arrangements
based on specific criteria to determine if it is acting
as a principal or an agent. The Group has identified
that it acts in the capacity of an agent in case of
transactions as Balancing Responsible Party (“BRP”)
and thus recognises revenue as the net amount of
the commission earned by the Group. The Group
concluded that it is acting as a principal in all other
revenue arrangements.
Service Concession Arrangements
The distribution subsidiaries (as operators) that
merged into one single distribution operator as of
31 December 2020 concluded concession contracts
with the Ministry of Economy (as grantor) in 2005,
updated by subsequent addendums. These contracts
concern the operation of electricity distribution
service in the established territory (Transilvania
Nord, Transilvania Sud, Muntenia Nord), on the risk
and responsibility of the operators and taking into
account the regulations applicable to the operation,
modernization,
rehabilitation
and
development
of energy distribution networks specified in the
Electricity Law, the terms and conditions of the
licenses for electricity distribution and the regulations
issued by ANRE. The distribution operator resulting
from the merger of the three distribution operators
within
the
Group,
Distributie
Energie
Electrica
Romania concluded addendums to the concession
agreements signed with the Ministry of Economy for
the operation of electricity distribution service in all
three areas.
IFRIC
12
“Service
Concession
Arrangements”
deals with public-to-private service concession
arrangements. IFRIC 12 applies to public-to-private
service concession arrangements if:
(a) the grantor controls or regulates what services
the operator must provide with the infrastructure,
to whom it must provide them, and at what price;
and
(b) the grantor controls - through ownership,
beneficial
entitlement
or
otherwise
-
any
significant residual interest in the infrastructure
at the end of the term of the arrangement.
The control or regulation referred to in condition (a)
could be by contract or otherwise (such as through a
regulator). The activities of the electricity distribution
operators, including distribution tariffs, are regulated
by ANRE.
The concession contracts are concluded for a period
of 49 years and may be extended for a period equal
to no more than half of that period. As a price for
the concession, the operators pay an annual royalty
fee recognized in the distribution tariff of 1/1000 of
the revenues from electricity distribution. According
to the concession contracts, the operators use the
assets representing the distribution network owned
by them located in the above-mentioned territory for
electricity distribution. According to the concession
contracts, the grantor 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, at a price equal to the value
of the regulated assets base at the end of the
concession.
Within the arrangements, the Group incurs significant
expenditure in relation to the development and
maintenance of the infrastructure. The construction
works are either outsourced by the Group to sub-
contractors, or performed internally. Significant
management judgment is involved in accounting
for the concession arrangements, including those in
respect of the recognition of revenue based on the
separation of construction or upgrade services from
operation services.
The concessionaires act as service suppliers (they
build, modernize and maintain the distribution
network). This results in revenues and expenditures
being recognized in the profit and loss account
(related to the construction and modernization of
infrastructure), as well as of a margin resulting from
rendering the construction services establised by the
Group. Starting with 31 December 2024, the Group
reassesed the margin applied and a margin of 7.26%
is applied for period 01 January 2024 – 31 December
2024, based on the Group’s experience in working
with external contractors. Until 31 December 2023,
the margin applied was 4.35%, as presented in the
annual consolidated financial statements as at and
for the year ended 31 December 2023.
(b) Assumptions and estimation uncertainties
Information about assumptions and estimation
uncertainties that may result in a material adjustment
in the subsequent twelve-month period is included in
the following notes:
• Note 6 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;
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• Notes 18 and 29 – 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 22 - assumptions regarding the revalued
value of tangible assets;
• Notes 27 and 32 – recognition and measurement
of provisions and contingencies;
• Note 18 – assumptions and estimates of amounts
to be received from the state following the
application of the compensation and capping
scheme.
Measurement of fair values
A number of the Group’s accounting policies and
disclosures require the measurement of fair values,
for both financial and non-financial assets and
liabilities.
When measuring the fair value of an asset or a
liability, the Group uses market observable data
as far as 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.
The Group recognises transfers between levels of the
fair value hierarchy at the end of the reporting period
during which the change has occurred.
Further information about the assumptions made
in measuring fair values is included in the following
notes:
• Note 29 – Financial instruments;
• Note 22 – Property, plant and equipment.
5 Basis of measurement
The consolidated financial statements have been
prepared on the historical cost basis except for the
land and buildings which are measured based on the
revaluation model.
6 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
Group has prepared a forecast that includes the
following assumptions:
• A termination of the support scheme until on 30
June 2025 according to the applicable legislation
but with a continuously stable flow of repayments
of the reimbursement requests for subsidies;
• The renewal of the confirmed existing overdraft
limits is planned up to a limit of RON 3,219,057
thousand (out of which drawn at RON 2,490,609
thousand 31 December 2024 – pls see note 29).
At the date of issuance of these consolidated financial
statements 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
2023 for the distribution segment) as market share
on the electricity distribution and 15.36% (according
to the latest ANRE report September 2024 for the
supply segment) as market share on the electricity
supply 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
implemented and the strategies to reduce the risks
which may occur due to the instability of the 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
(i) Subsidiaries
Subsidiaries are entities controlled by the Group. The
Group controls an entity when it is exposed to, or has
rights to, variable returns from its involvement with
the entity and has the ability to affect those returns
through its power over the entity. Subsidiaries are
included in the consolidation perimeter from the
date that control commences until the date on which
control ceases.
(ii) Loss of control
On the loss of control, the Group derecognizes
the assets and liabilities of the subsidiary, any
non-controlling interests and the other components
of equity related to the subsidiary. Any surplus or
deficit arising on the loss of control is recognized
in 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
level of influence retained.
(iii) Non-controlling interests
The Group measures any non-controlling interests
in the subsidiary at their proportionate share of the
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-controlling
interests are based on a proportionate amount of the
net assets of the subsidiary.
(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 extent
that there is no evidence of impairment.
(c) Business combinations
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 interest
issued by the Group in exchange for control of the
acquiree. Acquisition-related costs are recognised in
profit or loss as incurred.
(d) Revenue
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 services rendered
or goods delivered, net of VAT, excises or other taxes
related to the sale.
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 DECEMBER 2024
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 DECEMBER 2024
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Supply and distribution of electricity
The revenue from supply and distribution of electricity
to consumers is recognized when electricity is
delivered to consumers (consumed by consumers),
based on meter readings and based on estimates
for electricity delivered and for which no reading
was performed yet. The invoicing of electricity sales
is performed on a monthly basis. Monthly electricity
invoices are based on meter 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.
Generation and sale of electricity
The electricity produced by the Group is mainly
sold on the Day Ahead Market and the revenue is
recognized when the electricity is injected into the
network and is being sold on the market.
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
market or a combination of both. The selling price
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:
• Revenue in respect of variations to contracts
and incentive payments is recognised when
there is an enforceable right to payment and
it is highly probable it will be agreed by the
customer. Variable consideration is assessed on
a contract by contract basis according to the
facts, circumstances and terms of each project
and only recognised to the extent that it is highly
probable not to significantly reverse in the future.
Revenue in respect of claims is recognised only
if it is highly probable not to reverse in future
periods.
• 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
Revenues from the subsidies
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.
(f) Finance income and finance costs
The Group’s finance income and finance costs
include:
• 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.
(g) 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.
Re-measurements of the net defined benefit liability,
which comprise actuarial gains and losses, are
recognised immediately in other comprehensive
income. The Group determines the net interest
expense/(income) on the net defined benefit liability
for the period by applying the discount rate used
to measure the defined benefit obligation at the
beginning of the annual period to the then-net
defined benefit liability, taking into account any
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
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 DECEMBER 2024
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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.
(iv) Termination benefits
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.
(h) Income tax
Income tax expense comprises current and deferred
tax. It is recognised in profit or loss except to the
extent that it relates to a business combination
or items recognised directly in equity or in other
comprehensive income.
(i) Current tax
Current tax comprises the expected tax payable or
receivable on the taxable income or loss for the year
and any adjustment to tax payable or receivable
in respect of previous years. It is measured using
tax rates enacted or substantively enacted at the
reporting date. Current tax also includes any tax
arising from dividends.
(ii) Pillar 2 analysis – effective tax rate “ETR”
Law 431/2023 on ensuring a global minimum level
of taxation for multinational and large domestic
groups of companies transposes into national law
the provisions of Directive 2523/2022 on ensuring
a minimum level of taxation, which includes the
guidelines of the second pillar of the „Global Model
Rules to combat tax base erosion” („GloBE rules”/”Pillar
2 rules”) issued by the OECD/G20 Inclusive Framework
on BEPS. Also, according to Article 5 of Law 431/2023,
the explanations and examples in the Administrative
Guidelines issued by the Organization for Economic
Cooperation and Development („OECD”) are used for
the application of this law.
The GloBE rules are applicable to large groups of
companies, both national and multinational, namely
those which have a consolidated turnover (at the
level of the whole group) of at least 750 million Euro in
at least two of the four years preceding the reference
year.
Under GloBE rules, the effective tax rate („ETR”) is
calculated annually at jurisdiction level. The ETR is
computed as the ratio of the Adjusted Covered Taxes
of the Constituent Entities („CE”) - the numerator and
the Qualifying Net Profits of the Constituent Entities
- the denominator. Both the numerator and the
denominator represent the aggregate amounts of all
ECs located in a jurisdiction.
The
transitional
Country-by-Country
Reporting
(„CbCR”) protection regime identifies „low-risk”
jurisdictions by applying three quantitative tests,
leveraging existing data from the CbCR report and
from the multinational group’s accounting. In the case
of large domestic groups, as they are not required
to prepare and file CbC reports, the data required
for the tests under the protection regimes will be
extracted from the qualified financial statements (as
per art. 36, paragraph 7 of Law 431/2023). The three
quantitative tests are:
• The De Minimis Test - is considered fulfilled if the
total income from the CbCR report, i.e. from the
qualified financial statements, does not exceed
10 million Euro and the pre-tax profit does not
exceed 1 million Euro.
• Simplified ETR Simplified test - this considers the
simplified covered taxes in the qualified financial
statements as reported in the profit before tax
in the CbCR report and in the qualified financial
statements. The test is met when the percentage
calculated is higher than the applicable minimum
rate. The minimum rate for purposes of this
test is 15% for the fiscal year beginning in 2024,
increasing to 16% and 17% for the fiscal years
beginning in 2025 and 2026, respectively.
• The Routine Profits Test - applies to jurisdictions
where the Substance-Based Profits Exclusion
from Economic Substance („SBIE”) equals or
exceeds the pre-tax profit in the CbCR report,
i.e., the qualified financial statements. SBIE is an
indicator that is calculated based on the group’s
fixed assets and payroll costs in that jurisdiction.
Entities that are part of a multinational or domestic
group in a jurisdiction need to meet only one of the
three tests in order to qualify for the CbCR transitional
regime.
(iii) 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
• taxable temporary differences arising on the
initial recognition of goodwill.
Deferred tax assets are recognised for unused tax
losses, unused tax credits and deductible temporary
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.
Deferred tax is measured at the tax rates that are
expected to be applied to temporary differences when
they reverse, using tax rates enacted or substantively
enacted at the reporting date. The measurement
of deferred tax reflects the tax consequences that
would follow from the manner in which the Group
expects, at the reporting date, to recover or settle the
carrying amount of its assets and liabilities. Deferred
tax assets and liabilities are offset only if certain
criteria are met.
Unrecognized deferred tax assets are reassessed at
each reporting date and recognized to the extent
that it has become probable that the future taxable
profits will be available against which they can be
used.
In such a circumstance, the Group shall recognise
and measure its current or deferred tax asset or
liability based on taxable profit (tax loss), tax bases,
unused tax losses, unused tax credits and tax rates
determined applying this interpretation.
The Group assesses whether it is probable (more
than 50% chances) that a tax authority will accept
an uncertain tax treatment.
Thus, the Group shall reflect the effect of uncertainty
for each uncertain tax treatment by using either of
the following methods, depending on which method
the entity expects to better predict the resolution of
the uncertainty:
(a) the most likely amount - the single most likely
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.
(b)
the
expected
value
-
the
sum
of
the
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.
(i) Green certificates
Electricity supply
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.
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The cost of green certificates is accrued in the profit
or loss based on the quantitative quota determined
by the regulator representing the quantity of the
green certificates that the Group has to purchase for
the year and based on the price of green certificates
acquired on the centralized market. The obligation
for covering the annual acquisition quota is accrued
in profit or loss.
Electricity generation
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.
Green certificates are recognized as inventories
when the producer has the right to receive as a result
of energy produced and delivered into the network,
at nil nominal value. Recognition in the profit and loss
account is done at the time of their sale.
(j) Inventories
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.
Inventories are measured at the lower of cost and 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.
Consumables used for the repairs and maintenance
of the electricity network are included in profit and
loss when consumed and presented in “Repairs,
maintenance and materials”.
(k) Property, plant and equipment
(i) Recognition and measurement
Property, plant and equipment are stated initially at
cost, which includes purchase price and other costs
directly attributable to acquisition and bringing the
asset to the location and condition necessary for
their intended use.
After
initial
recognition,
land
and
buildings
are measured at revalued amounts less any
accumulated depreciation and any accumulated
impairment losses since the most recent valuation.
The other 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 to ensure that the carrying
amount does not differ materially from the one that
would be determined using the fair value at the end
of the reporting period. When a building is revalued,
the accumulated depreciation is eliminated against
the gross carrying amount of that item, and the net
amount is restated to the revalued amount of the
asset.
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.
Spare parts, stand-by and servicing equipment are
classified as property, plant and equipment if they
are expected to be used during more than one period
or can be used only in connection with an item of
property, plant and equipment.
Any gain or loss on disposal of an item of property,
plant and equipment is recognised in profit or loss.
(ii) Subsequent expenditure
Subsequent expenditure is capitalised only if it
is probable that the future economic benefits
associated with the expenditure will flow to the Group.
(iii) Depreciation
Depreciation is calculated to write off the cost of items
of property, plant and equipment less their estimated
residual values using the straight-line method over
their estimated useful lives and is recognised in
profit or loss. Leased assets are depreciated over the
shorter of the lease term and their useful lives unless
it is reasonably certain that the Group will obtain
ownership by the end of the lease term. Land and
construction in progress are not depreciated.
The estimated useful lives of property, plant and
equipment are as follows:
Category
Useful lives (years)
Buildings
45-70
Equipment
3-25
Motor vehicles and office
equipment
3-10
Depreciation methods, useful lives and residual
values are reviewed at each reporting date and
adjusted if appropriate.
(l) Connection fees
According to art. 25 paragraph (1) of Law no. 123/2012
on electricity and natural gas, as subsequently
amended and supplemented, access to power grids
of public interest is a mandatory service provided
under regulatory conditions, which the transmission
and system operator as well as the distribution
operators must ensure.
At the request of a new or pre-existing customer, the
distribution operators are obliged to communicate
the technical and economic conditions for the
connection network and to cooperate with the
applicant to choose the most advantageous technical
and economic solution. Afterwards, a connection
contract is concluded between the distribution
operator and the customer at a regulated tariff. The
actual construction of the connection installation is
carried out by a construction supplier certified by
ANRE.
The Group collects cash from customers, which is
used only to pay for the construction of the connection
station, and the Group must then use this asset to
connect customers to the network. According to ANRE
Order no. 59/2013, with subsequent amendments,
these assets remain in the ownership of the network
operator.
The Group recognizes the assets at nil value, net of
the amount of the deferred income representing the
contributions from customers. The assets financed
from connection fees received from the new users of
the distribution network are not included in the RAB.
At the end of the concession contract, the assets
built from the connection tariff will be transferred to
the concessionaire free of charge together with the
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, is entirely
borne by the customers. Assets resulting from
connection work:
• In the period from 1 January 2022 to 24 July 2022,
they enter the distribution operator’s assets from
the time of commissioning, on the basis of GEO
no. 143/2021, without being recognised by ANRE as
part of the regulated asset base;
• From 25 July 2022 they do not become part of the
distribution operator’s assets, on the basis of Law
no. 248/2022 and ANRE Order no. 133/2022, they
are only transferred to the distribution operator
for operation.
Starting with 2021, according to ANRE Order no.
160/2020 amending ANRE Order no.59/2013, the
connection installations that are financed by the
customers will remain in their ownership and are
being exploited by the network operator. However,
according to ANRE Order no. 17/2021 for the connection
installations of all household consumers and of the
non-household with lengths less than 2.5 km, the
distribution operator has the obligation to finance
them and these will remain in the ownership of the
network operator.
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 DECEMBER 2024
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(m) Intangible asset in a service concession
arrangement
(i) Recognition and measurement
The Group recognises an intangible asset arising from
a service concession arrangement when it has a right
to charge for use of the concession infrastructure.
An intangible asset received as consideration for
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.
(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 expected
pattern of consumption of those future economic
benefits. The Group determined that the amortization
method that reflects appropriately the expected
pattern of consumption of the expected future
economic benefits is correlated with the amortisation
of the regulated asset base “RAB”.
(n) Intangible assets related to the capitalization
of own technological consumption (NL)
The difference between the purchase price of
electricity
for
own
technological
consumption
versus the ex-ante purchase price recognized by
ANRE in the related regulated tariffs 2022 related to
the purchase of electricity and natural gas, made
between 1 January 2022 and 31 August 2023, in order
to cover the own technological consumption (NL)
for economic operators for energy transport and
distribution services are capitalised.
According to ANRE regulations, the capitalised costs
of intangible assets are recorded in the accounting
records and therefore on the annual financial
statements according to the instructions developed
by the Ministry of Finance. ANRE will determine the
recognized annual amounts of the capitalized costs
based on the quantities and prices recognized for NL.
(i) Recognition and measurement
The computation 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 the legislation in force, the following
intangible assets will be created for the NL difference
(in correspondence with “Capitalised
costs
of
intangible non-current assets”:
• The first intangible asset - for the NL cost difference
recorded between January 2022 and September
2022 will be recorded on 30 September 2022;
• The second intangible asset - for the NL cost
difference recorded between October 2022 and
December 2022 will be recorded on 31 December
2022;
• The third intangible asset - for the NL cost
difference recorded between January 2023 and
March 2023 will be recorded on 31 March 2023;
• The fourth intangible asset - for the NL cost
difference recorded between April 2023 and June
2023 will be recorded on 30 June 2023;
• The fifth intangible asset - for the NL cost
difference recorded between July 2023 and
August 2023 will be recorded on 31 August 2023.
• The sixt intangible assets - for the NL cost
difference recorded between September 2023
and December 2023 will be recorded on 31
December 2023.
• Quarterly, on the last day of each quarter, for the
corresponding amounts, between 1 January 2024
and 31 March 2025.
Currently, in the financial statements are recognized
only the intangible assets mentioned above.
In the future, the following additional intangible
assets will be recognized if it is the case quarterly
until 31 March 2025.
(ii) Amortization
The capitalized costs are amortized through the
straight-line method over a period of 5 years from
the date of capitalization.
(o) Other intangible assets
(i) Recognition and measurement
Other intangible assets that are acquired by the
Group and have finite useful lives are measured
at cost less accumulated amortization and any
accumulated impairment losses.
(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.
Goodwill arising on the acquisition of subsidiaries
is measured at cost less accumulated impairment
losses.
(q) Financial instruments
Financial
assets
and
financial
liabilities
are
recognised in the Group’s statement of financial
position when the Group 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
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
acquisition of financial assets or financial liabilities
at fair value through profit or loss are recognised
immediately in profit or loss.
(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, as they are held
in 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 amortized cost of a financial asset is the amount
at which the financial asset is measured at initial
recognition minus the principal reimbursements,
plus the cumulative amortization using the effective
interest method of any difference between that
initial amount and the maturity amount, adjusted
for any loss allowance. The gross carrying amount of
a financial asset is the amortized cost of a financial
asset before adjusting for any loss allowance.
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 DECEMBER 2024
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Foreign exchange gains and losses
The carrying amount of financial assets that are
denominated in a foreign currency is determined in
that foreign currency and translated at the spot rate
at the end of each reporting period.
Loans and receivables
These assets are initially recognised at fair value
plus any directly attributable transaction costs.
Subsequent to initial recognition, they are measured
at amortised cost using the effective interest method.
The amortised cost is reduced by impairment losses.
Loans and receivables comprise trade receivables,
cash and cash equivalents and deposits.
Trade receivables
Trade receivables include mainly unsettled invoices
issued until reporting date for supply and distribution
of electricity and services, late payment penalties
and accrued revenue for electricity delivered and
services rendered until the end of the year but
invoiced after the end of the year.
Cash and cash equivalents
Cash and cash equivalents comprise cash balances,
call deposits and deposits with maturities of three
months or less from the set-up date that are subject
to an insignificant risk of changes in their fair value
and are used by the Group in the management of its
short-term commitments.
(ii) Financial liabilities
All financial liabilities are measured subsequently at
amortised cost using the effective interest method or
at fair value through profit or loss.
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
cost using the effective interest method.
The effective interest method is a method of
calculating the amortised cost of a financial liability
and of allocating interest expense over the relevant
period. The effective interest rate is the rate that
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)
through the expected life of the financial liability,
or (where appropriate) a shorter period, to the
amortised cost of a financial liability.
Other financial liabilities include bank borrowings,
bank overdrafts, financing for network construction
related
to
concession
agreements
and
trade
payables.
(iii) Share capital
Ordinary shares
Ordinary shares are classified as equity. Incremental
costs directly attributable to the issue of ordinary
shares, net of any tax effects, are recognised as a
deduction from equity.
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 shares and are
presented in the treasury share reserve.
When
treasury
shares
are
sold
or
reissued
subsequently, the amount received is recognised
as an increase in equity and the resulting surplus or
deficit on the transaction is presented within share
premium.
(iv) Impairment
Impairment of financial assets
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 as well as the
forecast direction of conditions at the reporting date,
including time value of money where appropriate.
i) Significant increase in credit risk
In assessing whether the credit risk on a financial
instrument has increased significantly since initial
recognition, the Group compares the risk of a default
occurring on the financial instrument at the reporting
date with the risk of a default occurring on the
financial instrument at the date of initial recognition.
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.
(ii) Write‑off policy
The Group writes off a financial asset after the
finalization of the bankruptcy proceedings. Financial
assets written off may still be subject to enforcement
activities under the Group’s recovery procedures,
taking into account legal advice where appropriate.
Any recoveries made are recognised in profit or loss.
(iii) Measurement and recognition of expected credit
losses
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 given default is
based on historical data adjusted by 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
effective interest rate.
Derecognition of financial assets
The Group derecognises a financial asset only when
the contractual rights to the cash flows from the asset
expire, or when it transfers the financial asset and
substantially all the risks and rewards of ownership
of the asset to another entity. If the Group neither
transfers nor retains substantially all the risks and
rewards of ownership and continues to control the
transferred asset, the Group recognises its retained
interest in the asset and an associated liability for
amounts it may have to pay. If the Group retains
substantially all the risks and rewards of 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
The difference between the revalued amount and
the net carrying amount of property, plant and
equipment is recognised as revaluation reserve
included in equity.
If an asset’s carrying amount is increased as a
result of a revaluation, the increase is recognised
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 amount
of the asset previously recognised in profit and loss.
If an asset’s carrying amount is decreased as a result
of a revaluation, the decrease is recognised in profit
or loss. However, the decrease is recognized in equity
in revaluation reserves if there is any 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.
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 DECEMBER 2024
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OMFP 2844/2016
(s) Dividends
Dividends are recognized as a deduction from equity
in the period in which their distribution is approved
and recognised as a liability to the extent it is unpaid
at the reporting date. Dividends are disclosed in the
notes to financial statements when their distribution
is proposed after the reporting date and before the
date of the issuance of the financial statements.
(t) Pre-paid capital contributions in kind from
shareholders
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.
(u) Provisions
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
be required to settle the obligation. Provisions are
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 discount
is recognised as finance cost.
A provision for restructuring is recognised when
the Group has approved a detailed and formal
restructuring plan, and the restructuring either has
commenced or has been announced publicly. Future
operating losses are not provided for.
(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
(b) a present obligation that arises from past events
that is not recognised because:
i it is not probable that an outflow of resources
embodying economic benefits will be required
to settle the obligation; or
ii. the amount of the obligation cannot be
measured with sufficient reliability.
Contingent liabilities are not recognized in the
Group’s financial statements, but disclosed unless
the possibility of an outflow of resources embodying
economic benefits is remote.
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
The Group assesses whether a contract is or contains
a lease, at inception of the contract. The Group
recognises a right-of-use asset and a corresponding
lease liability with respect to all lease arrangements
in which it is the lessee, except for short-term leases
(with a lease term of 12 months or less) and leases of
low value assets (of less than USD 5,000). For these
leases, the Group recognises the lease payments as
an operating expense on a straight-line 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.
The Group remeasures the lease liability (and makes
a corresponding adjustment to the related right-of-
use asset) whenever:
• the lease term has changed or there is a significant
event or change in circumstances resulting
in a change in the assessment of exercise of a
purchase option, in which case the lease liability
is remeasured by discounting the revised lease
payments using a revised discount rate;
• the lease payments change due to changes 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 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.
Right-of-use assets are depreciated over the shorter
period of lease term and useful life of the 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
straight-line basis over the term of the lease.
(x) Investment in associates
An associate is an entity over which the Group has
significant influence and that is neither a subsidiary
nor an interest in a joint venture. Significant influence
is the power to participate in the financial and
operating policy decisions of the investee but is not
control or joint control over those policies.
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
sale.
Under the equity method, an investment in an
associate is recognised initially in the consolidated
statement of financial position at cost and adjusted
thereafter to recognise the Group’s share of the
profit or loss and other comprehensive income of the
associate.
When the Group’s share of losses of an associate
exceeds the Group’s interest in that associate (which
includes any long-term interests that, in substance,
form part of the Group’s net investment in the
associate), the Group discontinues recognising
its share of further losses. Additional losses are
recognised only to the extent that the Group has
incurred legal or constructive obligations or made
payments on behalf of the associate.
An investment in an associate is accounted for
using the equity method from the date on which the
investee becomes an associate. On acquisition of the
investment in an associate, any excess of the cost of
the investment over the Group’s share of the net fair
value of the identifiable assets and liabilities of the
investee is recognised as goodwill, which is included
within the carrying amount of the investment. Any
excess of the Group’s share of the 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.
When necessary, the entire carrying amount of
the investment (including goodwill) is tested for
impairment as a single asset by comparing its
recoverable amount (higher of value in use and fair
602
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 DECEMBER 2024
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 DECEMBER 2024
OMFP 2844/2016
OMFP 2844/2016
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 carrying amount of the investment. Any reversal of that
impairment loss is recognised 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 to be an
associate.
(y) Segment reporting
Segment results that are reported to the Company’s Board of Directors (the chief operating decision maker)
include items directly attributable to a segment as well as those that can be allocated on a reasonable basis.
(z) Subsequent events
Events occurring after the reporting date 31 December 2024, which provide additional information about
conditions prevailing at the reporting date (adjusting events) are reflected in the consolidated financial
statements. Events occurring after the reporting date that provide information on events that occurred after
the reporting date (non-adjusting events), when material, are disclosed in the notes to the consolidated
financial statements. When the going concern assumption is no longer appropriate at or after the reporting
period, the financial statements are not prepared on a going concern basis.
7
Disclosure for the additional set of the consolidated financial statements
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 Public
Finances (OMFP) no. 3900/2022 that has included a new clause related to the regulatory accounts to 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., Crucea Power Park 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.
604
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ELECTRICA 2024 ANNUAL REPORT
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 DECEMBER 2024
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 DECEMBER 2024
OMFP 2844/2016
OMFP 2844/2016
(b) Information about reportable segments
Year Ended
31 December 2024
Electricity
and natural
gas supply
Electricity
distribution
Electricity
production
External electricity
network
maintenance
Total for
reportable
segments
Headquarter
Consolidation
eliminations
and
adjustments
Consolidated
total
External revenues
6,297,088
2,639,999
6,711
51,321
8,995,119
83
-
8,995,202
Inter-segment revenue
28,469
2,069,619
5,696
927
2,104,711
-
(2,104,711)
-
Segment revenue
6,325,557
4,709,618
12,407
52,248
11,099,830
83
(2,104,711)
8,995,202
Other income
1,566,933
180,771
-
22,228
1,769,932
1,117
(82,158)
1,688,891
Capitalised costs of intangible non-
current assets
-
190,073
-
-
190,073
-
-
190,073
Segment profit before tax
(389,353)
856,106
4,976
(14,623)
457,106
71,137
(57,064)
471,179
Net finance income/(cost)
(200,630)
(146,009)
-
3,663
(342,976)
127,879
(62,125)
(277,222)
Depreciation and amortization
(21,918)
(767,456)
(2,410)
(9,956)
(801,740)
(2,082)
-
(803,822)
Reversal of impairment of property, plant
and equipment and intangible assets, net
-
-
-
-
-
1,901
-
1,901
(Impairment)/ Reversal of impairment of
trade and other receivables, net
(87,962)
(13,844)
-
(158)
(101,964)
-
-
(101,964)
Adjusted EBITDA*
(166,805)
1,769,570
7,388
(8,330)
1,601,823
(56,561)
5,061
1,550,323
Segment net profit
(338,059)
710,661
4,976
(13,219)
364,359
69,158
(57,064)
376,453
Employee benefits
(124,187)
(882,445)
(41)
(35,649)
(1,042,322)
(35,240)
-
(1,077,562)
Capital expenditure
23,448
998,689
130,391
4,418
1,156,946
7,225
-
1,164,171
Segment assets
6,669,999
10,808,092
344,111
443,305
18,265,507
137,088
(3,707,845)
14,694,750
Trade and other receivables
3,945,640
1,733,709
2,703
73,994
5,756,046
6,680
(2,012,325)
3,750,401
Cash and cash equivalents
159,017
278,666
1,104
7,667
446,454
8,001
-
454,455
Trade and other payables and short-term
employee benefits
3,661,799
1,076,451
24,868
40,427
4,803,545
187,130
(2,061,843)
2,928,832
Bank overdrafts
2,007,818
164,580
-
-
2,172,398
318,211
-
2,490,609
Lease liability
6,290
7,355
25,923
557
40,125
1,665
-
41,790
Bank borrowings
49,537
2,104,762
-
-
2,154,299
236,042
-
2,390,341
* Adjusted EBITDA (Earnings before interest, tax, depreciation and amortisation or namely EBITDA) for operating segments is defined and calculated as segment profit/(loss) before tax of
a given operating segment adjusted for i) depreciation, amortization and impairment/reversal of impairment of property, plant and equipment and intangible assets in the operating
segment, ii) impairment of assets held for sale and iii) net finance income in the operating segment. 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.
Year Ended
31 December 2023
Electricity
and natural
gas supply
Electricity
distribution
Electricity
production
Electricity network
maintenance
Total for
reportable
segments
Headquarter
Consolidation
eliminations
and
adjustments
Consolidated
total
External revenues
7,226,692
2,542,950
7,903
38,826
9,816,371
222
-
9,816,593
Inter-segment revenue
53,558
1,868,513
6,176
66,182
1,994,429
-
(1,994,429)
-
Segment revenue
7,280,250
4,411,463
14,079
105,008
11,810,800
222
(1,994,429)
9,816,593
Other income
3,391,201
154,982
-
22,210
3,568,393
1,220
(71,060)
3,498,553
Capitalised costs of intangible non-
current assets
-
18,617
-
-
18,617
-
-
18,617
Segment profit before tax
129,728
548,922
3,335
3,479
685,464
18,109
13,721
717,294
Net finance income/(cost)
(160,229)
(209,786)
(4,232)
12,554
(361,693)
67,898
-
(293,795)
Depreciation and amortization
(15,555)
(695,956)
(2,341)
(8,421)
(722,273)
(1,448)
-
(723,721)
Reversal of impairment of property, plant
and equipment and intangible assets, net
41
-
159
1,027
1,227
854
-
2,081
(Impairment)/ Reversal of impairment of
trade and other receivables, net
(67,338)
(9,212)
-
161
(76,389)
569
-
(75,820)
Adjusted EBITDA*
305,471
1,454,664
9,749
(1,682)
1,768,202
(49,195)
13,721
1,732,728
Segment net profit
98,403
486,036
2,151
826
587,416
19,243
13,721
620,380
Employee benefits
(104,688)
(794,524)
(264)
(32,301)
(931,777)
(30,288)
-
(962,065)
Capital expenditure
9,681
726,485
10,000
1,981
748,147
2,846
-
750,993
Segment assets
5,703,052
10,389,940
187,691
481,669
16,762,352
125,943
(3,345,465)
13,542,830
Trade and other receivables
2,662,875
1,784,184
8,999
109,668
4,565,726
3,055
(1,934,507)
2,634,274
Cash and cash equivalents
184,140
166,103
19,299
3,898
373,440
3,775
-
377,215
Trade and other payables and short-term
employee benefits
3,129,486
1,520,819
12,388
52,979
4,715,672
61,885
(1,913,286)
2,864,271
Bank overdrafts
1,869,706
774,529
-
-
2,644,235
206,986
-
2,851,221
Lease liability
6,813
21,180
12,068
994
41,055
2,140
-
43,195
Bank borrowings
200,000
900,874
-
-
1,100,874
216,768
-
1,317,642
* Adjusted EBITDA (Earnings before interest, tax, depreciation and amortisation or namely EBITDA) for operating segments is defined and calculated as segment profit/(loss) before tax of
a given operating segment adjusted for i) depreciation, amortization and impairment/reversal of impairment of property, plant and equipment and intangible assets in the operating
segment, ii) impairment of assets held for sale and iii) net finance income in the operating segment. 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.
606
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 DECEMBER 2024
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 DECEMBER 2024
OMFP 2844/2016
OMFP 2844/2016
9 Revenue
2024
2023
Electricity distribution and supply, net
7,224,132
7,908,812
Green certificates sold
546,634
552,051
Supply of natural gas
155,188
191,339
Construction revenue related to concession agreements (Note 23)
998,686
1,018,912
Repairs, maintenance and other services rendered
64,851
74,077
Sales of merchandise
3,159
56,934
Re-connection fees
2,552
14,362
Consulting services
-
106
Total
8,995,202
9,816,593
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 2,477 thousand (2023: RON 2,921 thousand)
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).
10 Electricity, natural gas and merchandise purchased
2024
2023
Electricity purchased
5,897,289
8,238,811
Green certificates purchased
541,653
543,359
Cost of merchandise
2,801
54,551
Natural gas purchased
147,084
221,255
Total
6,588,827
9,057,976
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
2024
2023
Subsidies related to electricity supply and natural gas (Note 18)
1,532,193
3,306,839
Rental income
91,569
92,332
Late payment penalties from customers
28,948
38,647
Other
36,181
60,735
Total
1,688,891
3,498,553
Rental income refers mainly to the subsidies, following by rental of the electricity poles by the distribution
subsidiary to telecom operators. During 2024, the Group recognized subsidies on the supply segment
recognized subsidies of RON 1,532,193 thousand (2023: RON 3,306,839 thousand), 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 no.119/2022.
(b) Other operating expenses
2024
2023
IT services
69,815
51,151
Printing and distribution of invoices services
52,470
36,341
Other taxes and duties
51,430
51,549
Change in provisions, net
34,722
(12,536)
Meters reading expenses
31,719
29,831
Bank fees
31,438
26,635
Fines and penalties
28,758
15,976
Security services
28,303
26,517
Penalties to State budgets
26,265
14,482
Postage and telecommunication services
16,491
12,047
Cash collection services
13,534
13,148
Call centre services
12,660
12,461
Third party services in relation to maintenance works performed
10,387
13,584
Cleaning
9,339
7,590
Advertising and publicity expenses
7,092
14,654
Supply customers notifications
4,163
7,994
Other
61,393
109,975
Total
489,979
431,399
12 Net finance result
2024
2023
Interest income
12,112
3,270
Other finance income
510
155
Total finance income
12,622
3,425
Interest expense
(277,533)
(280,463)
Interest cost for employee benefits (Note 15)
(9,470)
(10,043)
Foreign exchange losses, net
(2,841)
(6,714)
Total finance costs
(289,844)
(297,220)
Net finance result
(277,222)
(293,795)
608
609
ELECTRICA 2024 ANNUAL REPORT
ELECTRICA 2024 ANNUAL REPORT
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 DECEMBER 2024
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 DECEMBER 2024
OMFP 2844/2016
OMFP 2844/2016
13 Earnings per share
The calculation of basic and diluted earnings per share has been based on the following profit attributable to
Company’s shareholders and weighted-average number of ordinary shares outstanding:
Profit attributable to shareholders
2024
2023
Profit for the year attributable to the owners of the Company
376,484
620,494
Profit attributable to shareholders of the Company
376,484
620,494
Number of ordinary shares (in number of shares)
2023
2022
Number of ordinary shares at 31 December
339,553,004
339,553,004
Earnings per share
2024
2023
Basic and diluted earnings per share (RON)
1.11
1.83
14 Short-term employee benefits
31 December
2024
31 December
2023
Personnel payables
72,966
70,598
Current portion of defined benefit liability and other employee benefits
21,443
12,871
Social security charges
47,159
31,192
Tax on salaries
9,295
5,887
Total
150,863
120,548
For details of the related employee benefit expenses, see Note 16.
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.
15 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 2024 and 2023, employee benefit obligations were computed by an independent actuary using the projected
unit credit method with benefits calculated proportionally to the period of service.
31 December 2024
31 December 2023
Defined benefit liability
60,102
55,839
Other long-term employee benefits
124,038
108,923
Total
184,140
164,762
- Current portion*
21,443
13,404
- Non-current portion
162,697
151,358
* included in Personnel payables in Note 14
(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.
Defined benefit liability
2024
2023
Balance at 1 January
55,839
41,675
Included in profit or loss
Current service cost
6,373
4,904
Past service cost
-
-
Interest cost
3,238
3,278
Included in other comprehensive income
Remeasurements loss
- Actuarial loss
1,460
11,918
Other
Benefits paid
(6,808)
(5,936)
Balance at 31 December
60,102
55,839
Other long-term employee benefits
2024
2023
Balance at 1 January
108,924
87,761
Included in profit or loss
Current service cost
8,948
7,580
Past service cost
51
-
Actuarial loss
10,973
16,637
Interest cost
6,233
6,764
Other
Benefits paid
(11,091)
(9,818)
Balance at 31 December
124,038
108,924
610
611
ELECTRICA 2024 ANNUAL REPORT
ELECTRICA 2024 ANNUAL REPORT
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 DECEMBER 2024
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 DECEMBER 2024
OMFP 2844/2016
OMFP 2844/2016
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.
(ii) Actuarial assumptions
The following were the main actuarial assumptions at each reporting date:
(a) Macroeconomic assumptions:
• inflation. The actuary used information from the National Commission for Strategy and Prognosis:
Year
Valuation date
31 December 2024
Valuation date
31 December 2023
2023
-
10.4%
2024
4.9%
4.8%
2025
3.8%
3.5%
2026
2.9%
3%
2027
2.7%
2.5%
2028+
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 7.1% for the year 2024 (2023: 6%);
• taxes and social charges are those in force as at the reporting date.
(b) Group specific assumptions:
• For the year 2023 the salaries’ growth rates budgeted by the Group have been considered. Starting with
the year 2024, salaries’ growth is in line with the inflation rate;
• Employees’ turnover: based on historical data;
• Jubilee and retirement bonuses granted based on seniority as per the collective labour contracts, as
follows:
Jubilee bonus based on years of service in the Group
Seniority
No of gross monthly base salaries
31 December 2024
31 December 2023
20 years
1
1
25 years
1
-
30 years
2
2
35 years
3
3
40 years
4
4
45 years
5
5
Retirement bonus based on years of service in the Group
Seniority
No of gross monthly base salaries
31 December 2024
31 December 2023
Between 8 and 10 years
2
2
Between 10 and 25 years
3
3
More than 25 years
4
4
Termination benefits
(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:
Period of service
No of gross monthly base salaries
31 December 2024
31 December 2023
1 – 2 years
2
2
2 – 5 years
3
3
5 – 10 years
4
4
10 – 20 years
5
5
More than 20 years
8
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
No of gross monthly base salaries
31 December 2024
31 December 2023
1 – 3 years
3
3
3 – 5 years
6
6
5 – 10 years
7
7
10 – 20 years
11
11
More than 20 years
16
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.
612
613
ELECTRICA 2024 ANNUAL REPORT
ELECTRICA 2024 ANNUAL REPORT
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 DECEMBER 2024
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 DECEMBER 2024
OMFP 2844/2016
OMFP 2844/2016
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.
Increase by 1%
Decrease by 1%
2024
2023
2024
2023
Discount rate
(11,979)
(11,301)
13,384
12,675
Salary growth
14,000
13,195
(12,700)
(11,930)
Increase by 1 year
Decrease by 1 year
2024
2023
2024
2023
Retirement age
1,239
1,135
(1,239)
(1,135)
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
2024
2023
Average number of employees
7,673
7,676
Number of employees at 31 December
7,794
7,945
2024
2023
Wages and salaries*
1,022,633
911,995
Social security contributions
30,636
27,163
Meal tickets
54,171
46,583
Termination benefits
326
1,015
Total employee benefits for the year
1,107,766
986,756
Capitalised employee benefit expenses
(30,204)
(24,691)
Total employee benefits in the statement of profit or loss
1,077,562
962,065
* Wages and salaries include also current service cost, defined benefits and other long-term employee benefits.
Management remuneration is disclosed in Note 31 b) Related parties.
17 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 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
2024
2023
Current tax expense
137,606
78,819
Deferred tax expense/(benefit)
(42,879)
18,095
Total expense related to income tax
94,727
96,914
(ii) Amounts recognised in other comprehensive income
2024
2023
Before tax
Tax benefit
Net of tax
Before tax
Tax
(expense)/
benefit
Net of tax
Revaluation of property, plant
and equipment
-
-
-
85,510
(13,699)
71,811
Remeasurement of defined
benefit liability
(1,460)
233
(1,227)
(11,918)
1,907
(10,011)
Total
(1,460)
233
(1,227)
73,592
(11,792)
61,800
(iii) Reconciliation of effective tax rate
2024
2023
Profit before tax
471,178
717,294
Tax using Company’s domestic tax rate
16%
75,388
16%
114,767
Non-deductible expenses
4%
16,579
2%
17,338
Non-taxable income
-2%
(10,638)
-4%
(25,426)
Deduction of legal reserves
-1%
(6,626)
0%
(3,165)
Other tax effects
5%
23,455
-1%
(5,622)
Current-year losses for which no deferred tax asset is recognised
-1%
(3,432)
0%
(978)
Income tax expense
20%
94,727
14%
96,914
614
615
ELECTRICA 2024 ANNUAL REPORT
ELECTRICA 2024 ANNUAL REPORT
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 DECEMBER 2024
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 DECEMBER 2024
OMFP 2844/2016
OMFP 2844/2016
(iv) Movement in deferred tax balances
Balance at 31 December 2024
2024
Net
balance
at 1
January
2024
Recognised
in profit or
loss
Recognised
in other
comprehensive
income
Other
movements
Net
Deferred
tax assets
Deferred
tax
liabilities
Property, plant and equipment
59,516
(3,012)
-
(5,097)
51,407
-
51,407
Intangible assets related to
concession agreements
229,694
12,957
-
-
242,651
-
242,651
Employee benefits
(27,244)
(2,961)
(233)
-
(30,438)
(30,438)
-
Impairment of trade
receivables
(25,560)
(4,490)
-
-
(30,050)
(30,050)
-
Tax loss carried forward
(4,356)
(15,197)
-
340
(19,213)
(19,213)
-
Other items
(19,787)
(30,177)
-
-
(49,965)
(49,965)
-
Tax liabilities/(assets) before
set-off
212,262
(42,880)
(233)
(4,757)
164,394
(129,664)
294,058
Set off of tax
45,037
(45,037)
Net tax liabilities/(assets)
212,262
(42,880)
(233)
(4,757)
164,394
(84,627)
249,021
Balance at 31 December 2023
2023
Net balance
at 1 January
2023
Recognised
in profit or
loss
Recognised
in other
comprehensive
income
Net
Deferred tax
assets
Deferred
tax
liabilities
Property, plant and equipment
36,980
8,837
13,699
59,516
-
59,516
Intangible assets related to
concession agreements
208,015
21,679
-
229,694
-
229,694
Employee benefits
(21,101)
(4,236)
(1,907)
(27,244)
(27,244)
-
Impairment of trade receivables
(30,930)
5,370
-
(25,560)
(25,560)
-
Tax loss carried forward
(6,068)
1,712
-
(4,356)
(4,356)
-
Other items
(4,521)
(15,266)
-
(19,787)
(19,787)
-
Tax liabilities/(assets) before
set-off
182,375
18,095
11,792
212,262
(76,948)
289,210
Set off of tax
-
-
-
-
44,544
(44,544)
Net tax liabilities/(assets)
182,375
18,095
11,792
212,262
(32,404)
244,666
(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 generating it
can use the benefits therefrom.
2024
2023
Tax losses
292,998
318,176
(vi) Pillar 2 assessment
Taking into account the mandatory calculations prepared at jurisdictional level, Electrica SA together with
the other constituent entities, part of the Group, has carried out the analysis of the protection regimes for
the financial year 2024 based on the indicators included in the consolidated financial statements (these are
qualified financial statements from the perspective of Pillar 2 rules). The Group qualifies for the application of
the transitional CbCR protection regime because:
• the simplified effective tax rate (simplified ETR test) is higher (more specifically, 19.97%) than the applicable
benchmark rate for the financial year 2024, i.e. higher than 15%;
• SBIE in FY 2024 is RON 651 thousand which is higher than the pre-tax profit of RON 487 thousand.
In view of the above, the Group has not recorded an estimate of additional tax in the financial statements for
2024.
18 Trade receivables
31 December 2024
31 December 2023
Trade receivables, gross
4,412,930
3,180,660
- out of which accrued trade receivables
3,041,936
1,384,617
Bad debt allowance
(737,242)
(640,218)
Total trade receivables, net
3,675,688
2,540,442
Trade receivables from related parties are presented in Note 31.
Trade receivables, gross, comprise:
31 December 2024
31 December 2023
Electricity distribution and supply
3,711,027
2,603,238
Late payment penalties receivable
90,066
89,346
Customers with judicial execution titles
362,814
333,682
Repairs, maintenance and other services
15,308
20,904
Other
233,715
133,490
Total trade receivables, gross
4,412,930
3,180,660
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
616
617
ELECTRICA 2024 ANNUAL REPORT
ELECTRICA 2024 ANNUAL REPORT
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 DECEMBER 2024
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 DECEMBER 2024
OMFP 2844/2016
OMFP 2844/2016
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
As at 31 December 2024, the amounts estimated to be received from the Ministry of Energy for non-household
consumers are RON 10,130 thousand (31 December 2023: RON 10,130 thousand) and from the National Agency
for Payments and Social Inspection for household consumers are RON 11,672 thousand (31 December 2023:
RON 36,496 thousand). The receivables are booked under the caption “Electricity distribution and supply”.
Grants to be received
As at 31 December 2024, the estimated amount for subsidies to be received from the Ministry of Energy is RON
1,956,895 thousand (31 December 2023: RON 2,595,554 thousand) and from County Agency for Payments and
Social Inspection is RON 19,802 thousand (31 December 2023: RON 18,981 thousand). From the total amount
of subsidies to be received, RON 1,304,893 thousand (31 December 2023: RON 1,528,679 thousand) represent
uncollected claims submitted to the state authorities and RON 652,002 thousand (31 December 2023: RON
1,085,856 thousand) claims not yet submitted to the state authorities as at 31 December 2024 and 31 December
2023, respectively.
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. The receivables 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
2024
2023
Balance as at 1 January
640,218
652,689
Loss allowance recognized
196,905
111,271
Decrease in loss allowance
(94,533)
(35,198)
Amounts written off
(5,348)
(88,544)
Balance as at 31 December
737,242
640,218
The aging of trade receivables is presented in Note 29.
Loss allowances are determined based on “expected credit loss” model. 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.
As of 31 December 2024, 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 original recognition, thus
recording a bad debt allowance in amount of RON 196,905 thousand (31 December 2023: RON 111,271 thousand).
19 Other receivables
31 December 2024
31 December 2023
VAT receivable
6,965
12,762
Receivables from EU funds
1,486
45,194
Other receivables
86,081
56,103
Lifetime expected credit losses
(19,819)
(20,227)
Total other receivables, net
74,713
93,832
Other receivables include mainly guarantees from energy suppliers and receivables to be recovered from
state authorities in respect to medical leave indemnities and heating aid and supplement.
The reconciliation between the opening balances and the closing balances of the impairment for other
receivables is as follows:
Loss allowance
2024
2023
Balance as at 1 January
20,227
20,480
Loss allowance recognized
119
-
Decrease in loss allowance
(527)
(253)
Balance as at 31 December
19,819
20,227
20 Cash and cash equivalents
31 December 2024
31 December 2023
Bank current accounts
330,064
223,213
Call deposits
123,865
153,997
Cash in hand
526
5
Total cash and cash equivalents in the consolidated statement of
financial position
454,455
377,215
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 325,838 thousand in 2024 (2023: RON 160,104 thousand).
618
619
ELECTRICA 2024 ANNUAL REPORT
ELECTRICA 2024 ANNUAL REPORT
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 DECEMBER 2024
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 DECEMBER 2024
OMFP 2844/2016
OMFP 2844/2016
21 Inventories
As at 31 December 2024 and 31 December 2023, inventories are as follows:
31 December 2024
31 December 2023
Spare parts
28,162
35,057
Consumables and other materials
47,801
50,060
Natural gas
22,971
25,536
Other inventories
21,426
13,693
Allowance for impairment of inventories
(8,464)
(8,686)
Total inventories
111,896
115,660
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
conductors, sockets, switches which are used for the distribution network. Consumables and other materials
refer mainly to items such as conductors, sockets, switches which are used for the distribution network. Spare
parts refer to pillars, modems, separators, cells, auto parts, dischargers and batteries.
As at 31 December 2024, the remaining quantity of natural gas stored is of MWh 147,900 (31 December 2023:
MWh 143,870), amounting to RON 22,971 thousand (31 December 2023: RON 25,536 thousand).
22 Property, plant and equipment
The movements in property, plant and equipment in 2024 and 2023 are as follows:
Land and land
improvements
Buildings
Equipment
Vehicles,
furniture
and office
equipment
Construction
in progress
Total
Gross carrying amount
Balance at 1 January 2023
251,835
206,712
85,695
105,812
34,749
684,803
Additions
763
936
237
370
21,874
24,180
Transfer from construction in progress
-
124
1,862
110
-
2,096
Disposals
(576)
-
(5,236)
(1,308)
(1,271)
(8,391)
Effect of revaluation recognised in
other comprehensive income
46,999
38,511
-
-
-
85,510
Effect of revaluation recognised in
profit or loss
2,462
(381)
-
-
-
2,081
Decrease in gross value through
reversal of accumulated
depreciation
-
(23,907)
-
-
-
(23,907)
Balance at 31 December 2023
301,483
221,995
82,558
104,984
55,352
766,372
Additions
1,588
594
412
527
146,045
149,166
Transfer from construction in progress
-
627
4,365
95
(5,087)
-
Disposals
-
(1,904)
(55)
(158)
-
(2,117)
Acquisition of subsidiaries (Note 30)
-
-
-
-
10,872
10,872
Balance at 31 December 2024
303,071
221,312
87,280
105,448
207,182
924,293
(Continued on next page)
Land and land
improvements
Buildings
Equipment
Vehicles,
furniture
and office
equipment
Construction
in progress
Total
Accumulated depreciation and
impairment losses
Balance at 1 January 2023
-
21,495
46,119
95,096
19,096
185,413
Depreciation
-
7,450
6,499
2,442
-
16,391
Accumulated depreciation of
disposals
-
-
(5,375)
(1,635)
-
(7,010)
Impairment loss
-
(23,416)
-
-
-
(23,416)
Balance at 31 December 2023
-
5,529
47,243
95,903
19,096
171,378
Depreciation
-
7,377
6,749
3,987
-
18,113
Accumulated depreciation of
disposals
-
-
(116)
(102)
-
(218)
Reversal of impairment loss
-
(1,901)
-
-
-
(1,901)
Balance at 31 December 2024
-
11,005
53,876
99,788
19,096
187,372
Net carrying amounts
At 1 January 2023
251,835
185,217
39,576
10,716
15,653
499,390
At 31 December 2023
301,483
216,466
35,315
9,081
36,256
594,994
At 31 December 2024
303,071
210,307
33,404
5,660
188,086
736,921
Tangible assets include mainly land, buildings and equipment. Additions to construction in progress mainly
include investments in renewable power generation of RON 130,391 thousand.
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.
620
621
ELECTRICA 2024 ANNUAL REPORT
ELECTRICA 2024 ANNUAL REPORT
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 DECEMBER 2024
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 DECEMBER 2024
OMFP 2844/2016
OMFP 2844/2016
The following table shows the valuation techniques used in measuring fair values (Level 3), as well as the
significant unobservable inputs used.
Category
Valuation technique
Significant
unobservable inputs
Inter-relationship
between key
unobservable
inputs and fair value
measurement
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.
The estimated fair
value would increase/
(decrease) if:
• Adjustment for
liquidity, location or
size would be lower/
(higher)
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;
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)
23 Intangible assets
Intangible assets include mainly intangible assets related to distribution service concession agreements, 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
of NL
Software
and
licenses
Intangible
assets in
progress
Total
Gross book value
Balance at 1 January 2023
10,743,641
989,291
200,091
2,047
11,935,070
Additions
1,018,912
18,617
20,759
994
1,059,282
Transfers from intangible assets
in progress
-
-
680
(680)
-
Disposals
-
-
(11,106)
-
(11,106)
Balance at 31 December 2023
11,762,553
1,007,908
210,424
2,361
12,983,246
Additions
998,489
189,618
13,998
2,518
1,204,623
Transfers from intangible assets
in progress
-
-
3,512
(3,512)
-
Balance at 31 December 2024
12,761,042
1,197,526
227,934
1,367
14,187,869
Accumulated amortization and
impairment losses
Balance at 1 January 2023
5,067,777
37,734
189,282
-
5,294,793
Amortization
474,246
199,240
6,171
-
679,657
Accumulated amortization of
disposals
-
-
(10,490)
-
(10,490)
Balance at 31 December 2023
5,542,023
236,974
184,963
-
5,963,960
Amortization
540,812
205,203
13,046
-
759,061
Balance at 31 December 2024
6,082,835
442,177
198,008
-
6,723,020
Net carrying amounts
At 1 January 2023
5,675,864
951,557
10,809
2,047
6,640,277
At 31 December 2023
6,220,530
770,934
25,461
2,361
7,019,286
At 31 December 2024
6,678,207
755,349
29,926
1,367
7,464,849
For the year ended 31 December 2024, the Group has recognized construction revenue related to the
concession agreements of RON 998,489 thousand (2023: RON 1,018,912 thousand).
In 2024 the Group capitalised borrowing costs related to EBRD loans (see Note 28 (g) and (k)) in connection
with construction of networks, in amount of RON 34,015 th. (2023: 0), computed using a capitalisation rate of
3.77%.
622
623
ELECTRICA 2024 ANNUAL REPORT
ELECTRICA 2024 ANNUAL REPORT
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 DECEMBER 2024
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 DECEMBER 2024
OMFP 2844/2016
OMFP 2844/2016
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
areas
Contract
date
Concession
period
(years)
Contract
expiry
date
Concession
period
remaining
(years)
Renewal
option
Net carrying
amount at
31 December
2024
Net carrying
amount at
31 December
2023
Muntenia Nord area
2005
49
2054
30
Yes
2,364,405
2,197,712
Transilvania Nord area
2005
49
2054
30
Yes
2,132,842
2,007,855
Transilvania Sud area
2005
49
2054
30
Yes
2,180,960
2,014,963
Total
6,678,207
6,220,530
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 2024
refers mainly to:
• Modernization of the current transformer points and stations, current underground and overhead power
lines in amount of RON 426,340 thousand (2023: RON 484,220 thousand);
• Investments related to improvements for electricity distribution network in amount of RON 66,240 thousand
(2023: RON 81,660 thousand).
• Significant construction works of new transformer stations, new underground and overhead power lines,
smart metering systems, etc., in amount of 2024: RON 189,060 thousand (2023: RON 144,980 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 99,530 thousand (2023: RON 24,880
thousand).
Starting 2022, 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.
The capitalised costs with own technological consumption are recognized for each network distribution area,
as summarized below:
Network distribution
areas
Net carrying amount at
31 December 2022
Intangible asset
01 Jan - 31 Dec 2023
(gross value)
Amortisation
during 2023
Net carrying
amount at
31 December 2023
Muntenia Nord area
374,613
18,617
78,045
315,185
Transilvania Nord area
329,937
-
65,965
263,972
Transilvania Sud area
247,007
-
55,230
191,777
Total
951,557
18,617
199,240
770,934
During 2024, capitalized costs with own technological consumption were RON 189,618 thousand, as shown in
the table below:
Network distribution areas
Net carrying amount at
31 December 2023
Intangible asset
01 Jan - 31 Dec 2024
(gross value)
Amortisation
during 2023
Net carrying
amount at
31 December 2023
Muntenia Nord area
315,185
93,194
85,302
323,077
Transilvania Nord area
263,972
52,395
69,614
246,753
Transilvania Sud area
191,777
44,029
50,287
185,519
Total
770,934
189,618
205,203
755,349
24 Capital and reserves
(a) Share capital and share premium
The issued share capital in nominal terms consists of 339,553,004 ordinary shares as at 31 December 2024
(31 December 2023: 346,443,597) with a nominal value of RON 10 per share. Starting with 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 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. All shares rank equally and confer equal rights to the
net assets of the Company’s.
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.
On 11 July 2024, Bucharest Trade Register Office approved the reduction of share capital of SE Electrica S.A.,
according to EGMS no. 1/25.04.2024. The share capital of SE Electrica SA reduced from RON 3,464,435,970 to
RON 3,395,530,040, and the number of shares reduced from 346,443,597 to 339,553,004.
624
625
ELECTRICA 2024 ANNUAL REPORT
ELECTRICA 2024 ANNUAL REPORT
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 DECEMBER 2024
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 DECEMBER 2024
OMFP 2844/2016
OMFP 2844/2016
(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 thousand.
On 19 July 2024, the Financial Supervisory Authority (ASF) issued the Certificate of Registration of Financial
Instruments (CIIF) no. AC-4023-3 / 19.07.2024, reflecting the share capital reduction corresponding to the
value of the treasury shares held since 2014.
(c) Revaluation reserve
The reconciliation between opening and closing balance of revaluation reserve is as follows:
2024
2023
Balance at 1 January
159,536
92,117
Revaluation reserve for tangible fixed assets
-
85,510
Deferred tax relating to the revaluation reserve
-
(13,699)
Release of revaluation reserve to retained earnings corresponding to
depreciation and disposals of property, plant and equipment
(9,268)
(4,392)
Balance as at 31 December
150,268
159,536
As at 31 December 2023, the Group has revalued its land, land improvements and buildings to fair value (see
Note 22).
(d) Legal reserves
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 nominal share
capital of each company, according to the legislation. These reserves are deductible for income tax purposes
and are not distributable.
Legal reserves
Balance at 1 January 2023
429,583
Set-up of legal reserves
19,780
Balance at 31 December 2023
449,363
Set-up of legal reserves
41,470
Balance at 31 December 2024
490,833
(e) Dividends
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 2024 and 2023 (from the statutory profits of previous years) are
as follows:
Distribution of dividends
2024
2023
To the owners of the Company
39,999
39,999
Total
39,999
39,999
On 25 April 2024 the General Shareholders Meeting of the Company approved dividend distribution of RON
39,999 thousand (2023: RON 39,999 thousand). The dividend per share distributed is RON 0.1178 per share
(2023: RON 0.1178 per share).
Out of the dividends declared by the Company of RON 39,999 thousand (2023: RON 39,999 thousand), the
dividends paid were RON 39,894 thousand (2023: RON 39,894 thousand) the remaining difference represents
dividends uncollected by the shareholders.
25 Trade payables
31 December 2024
31 December 2023
Electricity suppliers
582,431
1,005,761
Capital expenditure suppliers
380,680
453,014
Other suppliers
183,302
212,703
Total
1,146,413
1,671,478
Electricity suppliers are mainly state-owned electricity producers, as detailed in Note 31, but also other
participants to the electricity market.
Other suppliers include suppliers of services, materials, consumables, etc.
26 Other payables
31 December 2024
31 December 2023
Current
Non-current
Current
Non-current
VAT payable
606,739
-
588,814
-
Liabilities towards the State
9,107
-
33,372
-
Other liabilities
970,018
45,692
412,898
37,161
Total
1,585,864
45,692
1,035,084
37,161
Other liabilities include mainly green certificates suppliers, guarantees, sundry creditors, connection fees,
habitat tax and cogeneration contribution. Other non-current liabilities refer to guarantees from customers
related to electricity supply.
626
627
ELECTRICA 2024 ANNUAL REPORT
ELECTRICA 2024 ANNUAL REPORT
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 DECEMBER 2024
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 DECEMBER 2024
OMFP 2844/2016
OMFP 2844/2016
27 Provisions
Tax related
Other
Total
Balance at 1 January 2024
1,084
40,083
41,167
Provisions recognized
-
44,816
44,816
Provisions utilised
-
-
-
Provisions reversed
-
(10,078)
(10,078)
Balance at 31 December 2024
1,084
74,821
75,905
As at 31 December 2024, provisions refer mainly to benefits upon the termination of executive directors’
mandate contracts in the form of a non-compete clause amounting to RON 1,477 thousand (31 December
2023: RON 710 thousand), customers compensation claims thousand 19,472 RON (31 December 2023: RON 3,733
thousand), a dispute with ANCOM in amount of RON 13,069 thousand (31 December 2023: 0) and for various
claims and litigations involving the Group companies in amount of RON 41,887 thousand (31 December 2023:
RON 40,457 thousand).
The most significant provisions recognized during the year are: a) for the distribution segment the amount of
RON 13,069 thousand for a dispute with ANCOM; and b) 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, provisions recognized in amount of RON 20,967 thousand with the corresponding
reversals of RON 2,238 thousand.
28 Bank borrowings and overdrafts
Drawings and repayments of borrowings during the year ended 31 December 2024 were as follows:
Amount
(RON thousand)
Balance at 1 January 2024
1,317,642
Drawings of borrowings during the period, out of which:
EBRD (k)
42,857
CEC Bank (l)
174,464
BEI Instalment 1 (h)
596,892
BEI Instalment 2 (i)
447,669
Unicredit Bank (n)
24,881
ERSTE Group Bank and Raiffeisen Bank (m)
13,768
Vista Bank (j)
84,950
Exim Bank Romania (t)
250,000
Total drawings
1,635,481
Transfers from overdraft
BCR (p)
220,000
Raiffeisen Bank (q)
220,000
Total transfers from overdraft
440,000
Accumulated interest
27,252
Payment of interest
(11,125)
Reimbursements during the period, out of which:
BRD (c)
20,800
BRD (d)
14,286
BRD (e)
11,429
CEC Bank (l)
350,000
Banca Transilvania (a)
17,857
Unicredit Bank (b)
9,600
BCR (f)
18,950
BERD (g)
23,574
Vista Bank (j)
80,000
BCR (p)
38,824
Raiffeisen Bank (q)
16,923
Exim Bank Romania (t)
250,000
Exim Bank Romania (s)
166,667
Total reimbursements
1,018,909
Balance at 31 December 2024
2,390,341
628
629
ELECTRICA 2024 ANNUAL REPORT
ELECTRICA 2024 ANNUAL REPORT
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 DECEMBER 2024
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 DECEMBER 2024
OMFP 2844/2016
OMFP 2844/2016
As at 31 December 2024, respectively 31 December 2023, the bank borrowings is as follows:
Lender
Borrower
Balance at
31 December 2024
Balance at
31 December 2023
EIB Instalment 1 (h)
Distributie Energie Electrica Romania
604,814
-
EIB Instalment 2 (i)
Distributie Energie Electrica Romania
453,611
-
EBRD (k)
Distributie Energie Electrica Romania
225,985
182,773
Raiffeisen Bank (q)
Distributie Energie Electrica Romania
205,041
-
BCR (p)
Distributie Energie Electrica Romania
182,364
-
EBRD (g)
Distributie Energie Electrica Romania
165,747
189,971
Vista Bank (j)
Societatea Energetica Electrica S.A.
130,840
125,000
ERSTE Group Bank and Raiffeisen
Bank (m)
Societatea Energetica Electrica S.A.
105,202
91,768
BCR (f)
Distributie Energie Electrica Romania
71,475
90,542
BRD (d)
Distributie Energie Electrica Romania
50,037
64,286
Banca Transilvania (a)
Distributie Energie Electrica Romania
44,649
62,508
BRD (c)
Distributie Energie Electrica Romania
41,600
62,400
BRD (e)
Distributie Energie Electrica Romania
40,030
51,467
Unicredit Bank (n)
Electrica Furnizare S.A.
25,074
-
CEC Bank (l)
Electrica Furnizare S.A.
24,464
200,000
UniCredit Bank (b)
Distributie Energie Electrica Romania
19,409
29,103
Exim Bank Romania (s)
Distributie Energie Electrica Romania
-
167,825
Total
2,390,342
1,317,642
Less: current portion of the long-term bank borrowings
(538,583)
(512,169)
Less: accumulated interest
(27,252)
(11,125)
Total long-term borrowings, net of current portion
1,824,507
794,348
Bank Borrowings description
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;
Interest rate: fixed, 4.59% per annum; Reimbursements:
quarterly instalments until 17.07.2027; Grace period:
12 months.
As at 31 December 2024, the outstanding balance is of
RON 44,649 thousand, of which RON 44,643 thousand
principal and RON 6 thousand accrued interest.
(Outstanding balance as at 31 December 2023: RON
62,508 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 December 2024, the outstanding balance is of
RON 19,409 thousand, of which RON 19,200 thousand
principal and RON 209 thousand accrued interest.
(Outstanding balance as at 31 December 2023: RON
29,103 thousand).
c) Investment loan granted by BRD – Groupe Societe
Generale
On 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
distribution network, according to the investment
plan. Main provisions 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 2024, the outstanding balance is
of RON 41,600 thousand. (Outstanding balance as at
31 December 2023: RON 62,400 thousand).
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, 3.85% per
annum; Reimbursements: quarterly instalments until
2028; Grace period: 12 months.
As at 31 December 2024, the outstanding balance is of
RON 50,037 thousand, of which RON 50,000 thousand
principal and RON 37 thousand accrued interest.
(Outstanding balance as at 31 December 2023: RON
64,286 thousand).
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
financing investments in the electricity distribution
network, according to the approved investment plan
for 2020. Main provisions are: Maximum loan amount:
RON 80,000 thousand; Interest rate: fixed, 3.85% per
annum; Reimbursements: quarterly instalments until
2028; Grace period: 12 months.
As at 31 December 2024, the outstanding balance is
RON 40,030 thousand, of which RON 40,000 thousand
principal and RON 30 thousand accrued interest.
(Outstanding balance as at 31 December 2023: RON
51,467 thousand).
630
631
ELECTRICA 2024 ANNUAL REPORT
ELECTRICA 2024 ANNUAL REPORT
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 DECEMBER 2024
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 DECEMBER 2024
OMFP 2844/2016
OMFP 2844/2016
f) Investment loan granted by Banca Comerciala
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
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
155,000 thousand; Interest rate: ROBOR 3M+1% per
annum; Reimbursements: quarterly instalments until
2028; Grace period: 12 months.
As at 31 December 2024, the outstanding balance is
RON 71,475 thousand, of which RON 71,062 thousand
principal and RON 413 thousand accrued interest.
(Outstanding balance as at 31 December 2023: RON
90,542 thousand).
g) Investment loan granted by the European Bank
for Reconstruction and Development (“EBRD”)
On 2 July 2021, Societatea de Distributie Energie
Electrica Romania SA, as a borrower, concluded
with the European Bank for Reconstruction and
Development a credit agreement for investments
in order to finance investments in the electricity
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: ROBOR 6M + spread 0.30% + margin
1.15%;
Repayments:
17
semi-annual
instalments
until 31.07.2031; Grace period: 24 months. The loan
agreement is guaranteed by Electrica SA.
As at 31 December 2024, the outstanding balance is
RON 165,747 thousand, of which RON 160,700 thousand
principal and RON 5,047 thousand accrued interest.
(Outstanding balance as at 31 December 2023: RON
189,971 thousand).
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
purpose of financing investments in the electricity
distribution network according to the 2021-2023
investment plan. The main provisions are: Maximum
value of the loan: EUR 120,000 thousand; Interest rate:
3.73%; Repayments: 24 semi-annual instalments
until 26.02.2039; Grace period: 36 months. The loan
agreement is guaranteed by Electrica SA.
As at 31 December 2024, the outstanding balance
is RON 604,814 thousand, of which RON 596,892
thousand principal and RON 7,922 thousand accrued
interest (31 December 2023: 0).
i) Investment
loan
granted
by
the
European
investment Bank (“EIB”)
On 7 December 2021, Societatea de Distributie Energie
Electrica Romania SA, as a borrower, concluded
with the European Investment Bank an investment
credit contract, representing the second part of
the Approved Credit in the amount of EUR 210,000
thousand for the purpose of financing investments in
the electricity distribution network according to the
2021-2023 investment plan. The main provisions are:
Maximum value of the loan: EUR 90,000 thousand;
Interest rate: 3.73%; Repayments: 24 semi-annual
instalments until 26.02.2039; Grace period: 35 months.
The loan agreement is guaranteed by Electrica SA.
As at 31 December 2024, the outstanding balance is
RON 453,611 thousand, of which RON 447,669 thousand
principal and RON 5,942 thousand accrued interest
(31 December 2023: 0).
j) Line of Credit for working capital and for issuing
Bank Guarantee Letters granted by Vista Bank
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: 125,000 thousand RON;
On 28 June 2024, the value was increased with 5,000
thousand RON, up to the amount 130,000 thousand
RON. Interest rate: ROBOR 3M + 2.4% p.a. (2023: ROBOR
3M + 2.95%); full refund at maturity.
On 31 December 2024, the balance of the loan is
130,840 thousand RON, of which RON 129,950 thousand
principal and RON 890 thousand accrued interest.
(Outstanding balance as at 31 December 2023: RON
125,000 thousand).
k) 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.
The main provisions are: The maximum value of the
loan RON 180,000 thousand; Interest rate: ROBOR 3M
+ spread % + margin 2.10%; Repayments: 14 quarterly
instalments until 31.01.2028; Grace period: 18 months.
On 19 December 2023, the value of the loan increased
by RON 60,000 thousand, to RON 240,000 thousand.
The loan agreement is guaranteed by Electrica SA.
As at 31 December 2024, the outstanding balance
is RON 225,985 thousand, of which RON 222,857
thousand principal and RON 3,128 thousand accrued
interest (31 December 2023: RON 182,775 thousand).
l) Multicredit facility for multiple financing by
accessing cash and non-cash products granted
by CEC BANK SA (“CEC”)
On 4 August 2023, Electrica Furnizare S.A., as the
borrower, concluded a Facility Agreement Multicredit.
The main provisions are: The maximum value of the
loan RON 150,000 thousand; Interest rate: ROBOR 3M
+ 2.85%; full repayment at maturity; Maturity date:
03 August 2026. On 18 December 2023 the amount
of the loan was increased by RON 50,000 thousand
to RON 200,000 thousand. The loan agreement is
guaranteed by Electrica SA.
As at 31 December 2024, the outstanding balance
is RON 24,464 thousand (31 December 2023: RON
200,000 thousand).
m) 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
thousand; Interest rate: ROBOR 3M + 1.16%; full
repayment at maturity. 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
thousand. On 20 August 2024 the bank issued two
comfort letters in total amount of RON 345,020
thousand, as follows: New Trend Energy SRL, RON
92,020 thousand and Foton Power Energy SRL, RON
253,000 thousand.
As at 31 December 2024 the balance of the loan is
RON 105,202 thousand, of which principal RON 104,918
thousand and accrued interest RON 284 thousand (31
December 2023: RON 91,768 thousand).
n) Investment loan granted by Unicredit Bank
On 26 April 2024, Electrica Furnizare S.A. signed
the credit contract no. GRIM/8714 with UniCredit
Bank SA, with SE Electrica SA as a guarantor, for an
investment loan in amount of RON 24,881 thousand,
due until 26.04.2029. Interest rate: ROBOR 3M + 3.15%.
Repayments: 17 quarterly instalments until 26.04.2029;
Grace period: 12 months.
As at 31 December 2024 the balance of the loan is
RON 25,074 thousand, of which principal RON 24,881
thousand and accrued interest RON 193 thousand.
o) Investment
loan
granted
by
the
European
Investment Bank (“EIB”)
On 8 May 2024, DEER concluded with the European
Investment Bank the investment credit contract no.
FI N°.98.007, with SE Electrica SA as a guarantor, for
an investment credit in the amount of EUR 15,000
thousand, due until 14.07.2039. Interest rate: 3.7%.
As at 31 December 2024 the balance of the loan is 0.
p) Loan
for
financing
the
own
technological
consumption expenses granted by BCR – Banca
Comerciala Romana (“BCR”)
On 25 January 2022, DEER signed the credit contract
no. 2022012502 with BCR in the amount of RON 220,000
thousand. On 26 June 2024, the loan amount was
increased by RON 150,000 thousand to the amount
of RON 370,000 thousand, and the overdraft facility
of RON 220,000 thousand was transformed into a
632
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ELECTRICA 2024 ANNUAL REPORT
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 DECEMBER 2024
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 DECEMBER 2024
OMFP 2844/2016
OMFP 2844/2016
long-term borrowing to cover the own technological
consumption. The availability of the facility was
extended to 30.04.2028; interest rate: ROBOR 3M
+ 1.3%; Repayments: 17 quarterly instalments until
30.04.2028.
As at 31 December 2024 the balance of the loan is
RON 182,364 thousand, of which principal RON 181,176
thousand and accrued interest RON 1,188 thousand.
q) Loan
for
financing
the
own
technological
consumption expenses granted by Raiffeisen
Bank SA
On 26 May 2022, DEER signed the credit contract
no. 20/2022 with Raiffeisen in the amount of RON
220,000 thousand. On 26 June 2024, the amount of
the loan was increased by RON 100,000 thousand
to the amount of RON 320,000 thousand, and the
overdraft facility of RON 220,000 thousand was
transformed into a long-term borrowing to cover
the own technological consumption. The availability
of the facility was extended to 31.12.2027; interest
rate: ROBOR 1M + 1.50%; Repayments: 13 quarterly
instalments until 31.12.2027.
As at 31 December 2024 the balance of the loan is
RON 205,041 thousand, of which principal RON 203,077
thousand and accrued interest RON 1.964 thousand.
r) Investment
loan
granted
by
the
European
Investment Bank (“EIB”)
On 16 December 2024, DEER concluded with the
European Investment Bank the investment credit
contract no. FI N°.97.868, with SE Electrica SA as a
guarantor, for an investment credit in the amount of
EUR 200,000 thousand, due until 16.12.2039. Interest
rate:3.6%.
As at 31 December 2024 the balance of the loan is 0.
s) 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.
The loan was fully repaid in 2024 (31 December 2023:
RON 167,825 thousand).
t) Loan for financing current activity granted by
Eximbank Romania
On 21 December 2023, Distributie Energie Electrica
Romania S.A., as a borrower, concluded with
Eximbank Romania a credit agreement for a period
of 36 months. The main provisions are: Maximum
loan amount: 250,000 thousand RON; Interest rate:
ROBOR 3M +1.65 % p.a.; Repayments: 36 equal monthly
instalments; Grace period: 12 months.
As at 31 December 2023 the outstanding amount was
0. The loan was fully drawn and subsequently repaid
during 2024.
Overdrafts
Until the authorization for issue of these Consolidated Financial Statements by the Board of Directors, 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 3,219,057 thousand (total overdraft limit as at 31 December 2023: RON
2,963,947 thousand).
The overdraft facilities are used for financing activities. The outstanding balance of the overdraft facilities as
at 31 December 2024 is of RON 2,490,609 thousand (31 December 2023: RON 2,851,221 thousand).
Lender (overdrafts)
Borrower
Balance at 31
December 2024
Balance at 31
December 2023
Alpha Bank
Electrica Furnizare S.A.
394,552
213,702
Raiffeisen Bank
Electrica Furnizare S.A.
380,829
369,274
BCR
Electrica Furnizare S.A.
325,016
378,887
UniCredit Bank
Electrica Furnizare S.A.
301,599
302,399
BRD
Electrica Furnizare S.A.
212,082
218,817
Banca Transilvania
Electrica Furnizare S.A.
182,233
187,194
ING Bank N.V
Electrica Furnizare S.A.
169,589
170,602
ING Bank N.V
Societatea Energetica Electrica S.A.
168,704
206,986
BRD
Societatea Energetica Electrica S.A.
149,508
-
Intesa Sanpaolo
Distributie Energie Electrica Romania S.A
135,655
135,815
Raiffeisen Bank
Distributie Energie Electrica Romania S.A
28,923
218,895
BNP Paribas
Electrica Furnizare S.A.
24,919
28,830
Vista Bank
Electrica Furnizare S.A.
17,000
-
BCR
Distributie Energie Electrica Romania S.A
-
210,593
Banca Transilvania
Distributie Energie Electrica Romania S.A
-
159,544
ING Bank N.V
Distributie Energie Electrica Romania S.A
-
49,682
Total overdrafts
2,490,609
2,851,221
Financial Covenants
The financial covenants specified in the agreements with BRD – Groupe Societe Generale, Unicredit Bank,
Banca Comerciala Romana (BCR), European Bank for Reconstruction and Development, European Investment
Bank, Intesa Sanpaolo, ERSTE Group Bank and Raiffeisen Bank, ING Bank N.V. and CEC Bank have been fulfilled
as at 31 December 2024.
Pledged Assets
As at 31 December 2024, for several overdrafts the Group has pledges (guarantees) for trade receivables
amounts in amount of RON 423,114 thousand (31 December 2023: RON 422,928 thousand), 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 3,415,425 thousand, of which non-cash uses RON 1,009,655 thousand.
634
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 DECEMBER 2024
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 DECEMBER 2024
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OMFP 2844/2016
29 Financial instruments - fair values and risk management
(a) Accounting classifications and fair values
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.
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.
Trade receivables
The Group’s credit risk in respect of receivables was concentrated in the past around state-controlled
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 rates.
Impairment
The following table provides information about the exposure to credit risk and expected credit losses for trade
receivables for customers as at 31 December 2024:
31 December 2024
Expected
credit loss
rates (“ECL”)
Gross value
Lifetime ECL
Net trade
receivables
Credit
impaired
Neither past due nor impaired
3.18%
3,426,012
(108,808)
3,317,204
No
Past due 1-30 days
9.65%
136,458
(13,170)
123,288
No
Past due 31-60 days
19.16%
89,057
(17,063)
71,994
No
Past due 61-90 days
41.56%
24,235
(10,072)
14,163
No
Past due more than 90 days
79.78%
737,168
(588,129)
149,039
Yes
Total
4,412,930
(737,242)
3,675,688
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.
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:
31 December 2023
Expected
credit loss
rates (“ECL”)
Gross value
Lifetime ECL
Net trade
receivables
Credit
impaired
Neither past due nor impaired
2%
2,229,339
(35,330)
2,194,009
No
Past due 1-30 days
7%
255,100
(16,875)
238,225
No
Past due 31-60 days
14%
47,635
(6,670)
40,965
No
Past due 61-90 days
37%
25,927
(9,640)
16,287
No
Past due more than 90 days
92%
622,659
(571,703)
50,956
Yes
Total
3,180,660
(640,218)
2,540,442
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
636
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 DECEMBER 2024
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 DECEMBER 2024
OMFP 2844/2016
OMFP 2844/2016
receivables together with expected cash outflows on trade and other payables. In addition, the Group
maintains overdrafts (refer to Note 28).
Exposure to liquidity risk
The following are the remaining contractual maturities of financial liabilities at the reporting date. The
amounts are gross and undiscounted.
Carrying
amount
Contractual cash flows
Financial liabilities
Total
less than 1
year
1-2 years
2-5 years
More than 5
years
31 December 2024
Bank overdrafts
2,490,609
2,490,609
2,490,609
-
-
-
Lease liability
41,790
41,790
7,411
3,543
3,396
27,440
Long-term bank borrowings
2,390,341
2,390,341
565,835
332,954
618,694
872,858
Trade payables
1,146,413
1,146,413
1,146,413
-
-
-
Other payables
12,229
12,229
-
-
12,229
-
Total
6,081,382
6,081,382
4,210,268
336,497
634,319
900,298
31 December 2023
Bank overdrafts
2,851,221
2,851,221
2,851,221
-
-
-
Lease liability
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
1,671,478
1,671,478
1,671,478
-
-
-
Total
5,883,536
5,883,536
5,060,045
268,843
479,885
74,763
(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 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.
Exposure to currency risk
The summary of quantitative data about the Group’s exposure to currency risk is as follows:
31 December 2024
31 December 2023
in thousands of RON
denominated in EUR
denominated in EUR
Cash and cash equivalents
1,763
347
Bank overdrafts
(399,795)
(306,417)
Lease liability
(40,167)
(42,231)
Long-term bank borrowings
(1,058,425)
-
Net statement of financial position exposure
(1,496,624)
(348,301)
The following significant exchange rates have been applied during the year:
Average rate
Year-end spot rate
RON
2024
2023
2024
2023
EUR 1
4.9752
4.9465
4.9741
4.9746
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.
Profit before tax
Effect
Strengthening
Weakening
31 December 2024
EUR (5% movement)
(74,831)
74,831
31 December 2023
EUR (5% movement)
(17,415)
17,415
Interest rate risk
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 28).
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 28), 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.
638
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 DECEMBER 2024
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 DECEMBER 2024
OMFP 2844/2016
OMFP 2844/2016
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.
Exposure to interest rate risk
The interest rate profile of the Group’s interest-bearing financial instruments is as follows:
31 December 2024
31 December 2023
Fixed-rate instruments
Financial assets
Call deposits
123,865
153,997
Financial liabilities
Long-term bank borrowings
(1,267,256)
(1,068,912)
Lease liability
(32,312)
(32,312)
(1,175,703)
(947,227)
Variable-rate instruments
31 December 2024
31 December 2023
Financial liabilities
Lease liability
(9,478)
(10,883)
Long-term bank borrowings
(1,123,085)
(248,730)
Bank overdrafts
(2,490,609)
(2,851,221)
(3,623,172)
(3,110,834)
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.
Profit before tax
50 bp increase
50 bp decrease
31 December 2024
Variable-rate instruments
(18,116)
18,116
31 December 2023
Variable-rate instruments
(15,554)
15,554
30 Acquisition of subsidiary
As at 31 December 2023 the Group held 40% of Crucea Power Park S.R.L., based on SPA signed in 28 July 2021.
The entity was accounted for using the equity method as at 31 December 2023 in these consolidated financial
statements as provided in the Group’s accounting policies in Note 6.
On 15 October 2024, the Group acquired an additional 20% of the shares and voting interests in Crucea Power
Park S.R.L., owning 60% of the shares and voting interests. Therefore, the Group obtained control over the
investee starting 15 October 2024.
Taking control of Crucea Power Park S.R.L. will enable the Group to develop its portfolio of renewable power
generation capacities.
A. Consideration transferred
The consideration transferred for the shares acquired was as follows:
Cash
8,451
Consideration transferred
8,451
B. Identifiable assets acquired and liabilities assumed
The following table summarises the recognised amounts of assets acquired and liabilities assumed at the
date of acquisition:
Property, plant and equipment
10,872
Trade and other receivables
1,282
Cash and cash equivalents
8
Total assets
12,162
Trade and other payables
(58)
Other non-current liabilities
(12,167)
Total liabilities
(12,225)
Net liabilities
(63)
C. Goodwill
Goodwill arising from the acquisition has been recognised as follows:
Consideration transferred
8,451
NCI, based on their proportionate interest in the recognised amounts of the
assets and liabilities
(25)
Fair value of pre-existing interest in Crucea Power Park S.R.L.
16,615
Fair value of identifiable net liabilities
63
Goodwill
25,104
640
641
ELECTRICA 2024 ANNUAL REPORT
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 DECEMBER 2024
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 DECEMBER 2024
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OMFP 2844/2016
The goodwill is attributable mainly to the know-how of the projects and the synergies expected to be achieved
from integrating the companies into the Group’s existing business. The management has concluded by
assessing internal and external sources, that there is no indication that the goodwill may be impaired. None
of the goodwill recognized is expected to be deductible for tax purposes.
The Group completed the full acquisition of Crucea Power Park S.R.L. on 7 February 2025, with a payment of
RON 4,675 thousand.
31 Related parties
(a) Main shareholders
As at 31 December 2024 and 31 December 2023, 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
2024
2023
Executive Management compensation
36,257
36,623
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:
2024
2023
Members of Board of Directors
4,223
4,151
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 2024 and 2023.
(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:
Purchases (without VAT)
Balance (including VAT)
Supplier
2024
2023
31 December 2024
31 December 2023
OPCOM
3,259,654
2,879,757
120,209
212,746
Transelectrica
1,283,721
671,172
226,413
170,242
Nuclearelectrica
246,348
799,117
34,552
107,671
Hidroelectrica
163,921
44,631
5,925
37
Complexul Energetic Oltenia
35,243
1,107,474
-
132,693
SNGN Romgaz SA
42,121
52,689
5,086
9,081
Electrocentrale Bucuresti
21,075
-
-
-
ANRE
14,170
16,763
-
12
Transgaz
10,077
7,638
1,856
1,850
Others
1,122
5,945
2,504
1,513
Total
5,077,452
5,585,186
396,545
635,845
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:
Sales
(excluding VAT)
Balance, gross
(including VAT)
Allowance
(including VAT)
Balance, net
Client
2024
31 December 2024
OPCOM
41,543
3,571
-
3,571
Transelectrica
304,153
45,047
-
45,047
CNAIR
25,612
8,555
-
8,555
C.N.C.F CFR S.A.
74,650
3,586
68
3,518
Hidroelectrica
266,237
65,447
-
65,444
CFR Telecomunicatii
2,694
47
-
47
CFR Electrificare
15,967
1,475
-
1,475
CN Remin SA
238
71,242
71,209
33
C.N.C.A.F MINVEST SA
-
26,802
26,802
-
Oltchim
-
115,426
115,426
-
CET Braila
-
3,379
3,379
-
Termoelectrica
-
1,206
1,206
-
County Agency for Payments and
Social Inspection
20,048
19,802
-
19,802
Ministry of Energy/ National
Agency for Payments and Social
Inspection(*)
1,512,145
1,978,697
-
1,978,697
Others
132,192
15,986
534
15,454
Total
2,395,480
2,360,269
218,622
2,141,647
(*) In the year ended 31 December 2024, Electrica Furnizare S.A. recognised subsidies amounting to RON 1,532,193 thousand (2023: RON
3,306,839 thousand), to be received from the Ministry of Energy/National Agency for Payments and Social Inspection/ County 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.
642
643
ELECTRICA 2024 ANNUAL REPORT
ELECTRICA 2024 ANNUAL REPORT
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 DECEMBER 2024
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 DECEMBER 2024
OMFP 2844/2016
OMFP 2844/2016
Sales
(excluding VAT)
Balance, gross
(including VAT)
Allowance
(including VAT)
Balance, net
Client
2023
31 December 2023
OPCOM
37,429
2,174
-
2,174
Transelectrica
157,861
44,220
-
44,220
C.N.C.F CFR S.A.
114,009
33,841
5
33,836
SNGN Romgaz SA
32,762
-
-
-
Hidroelectrica
288,923
32,882
-
32,882
CN Romarm
25,158
4,279
-
4,279
CFR Electrificare
19,043
2,347
-
2,347
Transgaz
1,684
544
-
544
CN Remin SA
923
71,347
71,216
131
C.N.C.A.F MINVEST SA
-
26,802
26,802
-
Oltchim
-
115,426
115,426
-
CET Braila
14
3,378
3,361
17
Termoelectrica
-
1,206
1,206
-
County Agency for Payments and
Social Inspection
18,981
18,981
-
18,981
Ministry of Energy/ National Agency
for Payments and Social Inspection
3,287,858
2,605,684
-
2,605,684
Others
211,691
9,173
364
8,809
Total
4,196,336
3,008,780
218,380
2,790,400
32 Contingencies
Contingent liabilities
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 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 that the tax
authorities might have different positions.
Tax inspection report for DEER
DEER 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. 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 18 August 2025, 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, ANAF, Court of Accounts, claims for
damages, claims over land titles, labour related litigations etc.).
As summarised in Note 27, 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 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).
33 Commitments
(a) Contractual commitments
Contractual commitments as at 31 December 2024 and 31 December 2023 are as follows:
31 December 2024
31 December 2023
Purchase of electricity
3,114,043
707,797
Purchase of green certificates
172,555
172,979
Purchase of property, plant and equipment and intangible assets
744,969
626,617
Purchase of investments
14,998
45,122
Total
4,046,565
1,552,515
644
645
ELECTRICA 2024 ANNUAL REPORT
ELECTRICA 2024 ANNUAL REPORT
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 DECEMBER 2024
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 DECEMBER 2024
OMFP 2844/2016
OMFP 2844/2016
(b) Investment program
The investment program at Group level approved for the year 2025 is as follows:
2025
Distribution activity
970,800
Supply activity
47,258
Maintenance activity
24,729
Production activity
510,768
Other
16,775
Total
1,570,330
The capital expenditures actually incurred may differ from the ones planned.
(c) Guarantees and pledges
At 31 December 2024, the Group has guarantees on its bank accounts opened at ING Bank N.V., Raiffeisen Bank,
Banca Comerciala Romana, Banca Transilvania, Intesa Sanpaolo Bank, Alpha Bank, Vista Bank, Vista Leasing
and BRD – Group Societe Generale for the overdrafts contracted (please see Note 28), and also on its bank
accounts opened at BRD – Group Societe Generale, Unicredit Bank, Banca Transilvania, Banca Comerciala
Romana, Banca Comerciala Romana, CEC Bank and Raiffeisen Bank for the long-term borrowings contracted
(please see Note 28).
At 31 December 2024, the Group has outstanding bank letters of guarantee of RON 1,009,655 thousand (31
December 2023: RON 1,193,823 thousand) issued in favour of its suppliers.
(d) Audit fees
The audit fees for the consolidated financial statements were in amount of 1,155 thousand RON, and during
the year 2024, non-audit services fees were in amount of 325 thousand RON (limited review of the interim
consolidated financial statements) and 512 thousand RON were the audited sustainability statement. The
audit fees for the individual financial statements are mentioned in the annual individual financial statements
of Electrica S.A.
34 Subsequent events
Acquisition in subsidiaries:
On 7 February 2025, Electrica SA has completed the acquisition of the project company Crucea Power Park
SRL (CPP) having as main object of activity the generation of energy from wind sources (ELSA has 100% of
shares). CPP develops the eolian project company “Crucea Est”, with an authorized installed capacity of
138 MW, and a projected electricity storage capacity of 60 MWh (15 MWx4h), located outside the Crucea
commune, Constanta County. The project is at the “ready-to-build” phase.
During the Extraordinary General Meeting of Shareholders (EGMS) on 5 February 2025, the shareholders
approved the investment project to be carried out by CPP, with a total investment value of up to thousand
253,000 EUR, excluding VAT, as well as the granting of a loan by Electrica S.A. to CPP to finance the investment
works necessary for the completion and operation of the “Crucea Est” wind power plant.
Subsidies:
According to GEO no. 6/2025 the period of application of the support scheme (of the capping type) is 3
months for electricity from 1 April 2025 to 30 June 2025 and one year for natural gas from 1 April 2025 to 31
March 2026.
Chief Executive Officer
Alexandru-Aurelian Chirita
Chief Financial Officer
Stefan Alexandru Frangulea
27 March 2025
646
647
RAPORT ANUAL ELECTRiCA 2024
RAPORT ANUAL ELECTRiCA 2024
INDEPENDENT AUDITOR’S REPORT
ON THE AUDIT OF THE CONSOLIDATED
FINANCIAL STATEMENTS
(OMFP 2844/2016)
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
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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.
6E974DA541FE0F0F89775B28B6100F68
INDEPENDENT AUDITOR’S REPORT
To the Shareholders,
SOCIETATEA ENERGETICA ELECTRICA S.A.
Report on the Audit of the Consolidated Financial Statements
Qualified 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, 2024, 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 consolidated financial statements as at December 31, 2024 are identified as follows:
•
Net assets / Equity
RON 6,335,446 thousand
•
Net profit for the financial year
RON
376,451 thousand
3.
In our opinion, except for the possible effects of the matter described in the “Basis for Qualified Opinion” section of our
report, paragraph 4, the accompanying consolidated financial statements present fairly, in all material respects, the
consolidated financial position of the Group as at December 31, 2024, 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 Qualified Opinion
4.
As at December 31, 2024, Group’s trade receivables of RON 3,675,688 thousand include an amount of RON 979,503 thousand
representing trade receivables accruals for which we have not received sufficient and appropriate audit evidence. We were
unable to satisfy ourselves concerning these trade receivables accruals by means of other auditing procedures. As a result of
these matters, we were unable to determine whether any adjustments might have been found necessary in respect of the
aforementioned trade receivables accruals and the elements making up the statement of consolidated comprehensive
income, consolidated statement of changes in equity and consolidated statement of cash flows.
5.
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 Group 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 qualified opinion.
Emphasis of Matter
6.
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 Public Finance Order no. 2844/2016
with subsequent amendments, and one under IFRS Accounting Standards. These consolidated financial statements are
prepared under Ministry of Public Finance Order no. 2844/2016 with subsequent amendments, which differs from IFRS
Accounting Standards as summarized in Note 2. Consequently these consolidated financial statements do not comply with
IFRS Accounting Standards. Our audit report is not modified in respect of this matter.
2
Key Audit Matters
7.
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.
In addition to the matter described in the “Basis for Qualified Opinion” section we have determined the matters described
below to be the key audit matters to be communicated in our report
Key audit matters
How our audit addressed the key audit matter
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 extend the existing 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 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.
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 debt facilities in course of
negotiation, during 2025 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;
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.
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.
648
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ELECTRICA 2024 ANNUAL REPORT
ELECTRICA 2024 ANNUAL REPORT
INDEPENDENT AUDITOR’S REPORT ON THE AUDIT OF THE CONSOLIDATED FINANCIAL STATEMENTS (OMFP 2844/2016)
INDEPENDENT AUDITOR’S REPORT ON THE AUDIT OF THE CONSOLIDATED FINANCIAL STATEMENTS (OMFP 2844/2016)
3
Other Information
8.
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 financial
statements and our auditor’s report thereon.
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 financial statements for the year ended 31 December 2024, 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 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 31 December 2024, we are required to report if we have identified a material
misstatement of this Administrators’ consolidated report. Except for the possible effects of the matter presented in the “Basis
for Qualified Opinion” section of our report, we do not have anything else to report.
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
9.
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.
10.
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.
11.
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
12.
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.
4
13.
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.
•
Plan and perform the group audit to obtain sufficient appropriate audit evidence regarding the financial information of
the entities or business units within the Group as a basis for forming an opinion on the group financial statements. We
are responsible for the direction, supervision and review of the audit work performed for purposes of the group audit.
We remain solely responsible for our audit opinion.
14.
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.
15.
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.
16.
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
17.
We have been appointed by the General Assembly of Shareholders April 27, 2023 to audit the consolidated financial
statements of Societatea Energetica Electrica S.A. for the financial year ended December 31, 2024. The uninterrupted total
duration of our commitment is 7 years, covering the financial years ended December 31, 2018 to December 31, 2024.
650
651
ELECTRICA 2024 ANNUAL REPORT
ELECTRICA 2024 ANNUAL REPORT
INDEPENDENT AUDITOR’S REPORT ON THE AUDIT OF THE CONSOLIDATED FINANCIAL STATEMENTS (OMFP 2844/2016)
INDEPENDENT AUDITOR’S REPORT ON THE AUDIT OF THE CONSOLIDATED FINANCIAL STATEMENTS (OMFP 2844/2016)
5
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 and 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.
Report on Other Legal and Regulatory Requirements – Report on the Information Regarding Income Tax
18.
For the financial year preceding the financial year for which the financial statements were prepared, the Group was not
required under Ministry of Public Finance Order no. 2844/2016 with subsequent amendments, articles 602 - 606, to publish a
report on income tax information.
The engagement partner on the audit resulting in this independent auditor’s report is Răzvan Ungureanu.
Răzvan Ungureanu, Audit Partner
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
10 April 2025
For signature, please refer to the original signed
Romanian version.
652
653
ELECTRICA 2024 ANNUAL REPORT
ELECTRICA 2024 ANNUAL REPORT
INDEPENDENT AUDITOR’S REPORT ON THE AUDIT OF THE CONSOLIDATED FINANCIAL STATEMENTS (OMFP 2844/2016)
INDEPENDENT AUDITOR’S REPORT ON THE AUDIT OF THE CONSOLIDATED FINANCIAL STATEMENTS (OMFP 2844/2016)
CONSOLIDATED FINANCIAL STATEMENTS
as at and for the year ended
31 December 2024
prepared in accordance with
International Financial Reporting Standards as adopted by
the European Union (IFRS-EU)
(All amounts are in THOUSAND RON, if not otherwise stated)
Free translation from Romanian, which is the official and binding version
656
657
ELECTRICA 2024 ANNUAL REPORT
ELECTRICA 2024 ANNUAL REPORT
Consolidated statement of financial position
658
Consolidated statement of profit or loss
660
Consolidated statement of comprehensive income
661
Consolidated statement of changes in equity
662
Consolidated statement of cash flows
664
Notes to the consolidated financial statements
Basis of preparation
1.
Reporting entity and general information
666
2.
Basis of accounting
674
3.
Functional and presentation currency
674
4.
Use of judgments and estimates
674
Accounting policies
5.
Basis of measurement
676
6.
Changes in significant accounting policies
676
7.
Accounting policies
677
8.
Adoption of new and revised standards
690
Performance for the year
9.
Operating segments
692
10.
Revenue
696
11.
Electricity, natural gas and merchandise purchased
696
12.
Other operating income and expenses
696
13.
Net finance result
697
14.
Earnings per share
698
Employee benefits
15.
Short-term employee benefits
698
16.
Post-employment and other long-term employee benefits
699
17.
Employee benefit expenses
702
Contents
CONSOLIDATED FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 DECEMBER 2024
PREPARED IN ACCORDANCE WITH IFRS AS ADOPTED BY THE EUROPEAN UNION
Income taxes
18.
Income taxes
703
Assets
19.
Trade receivables
705
20.
Other receivables
707
21.
Cash and cash equivalents
707
22.
Inventories
708
23.
Property, plant and equipment
708
24.
Intangible assets
711
Equity and liabilities
25.
Capital and reserves
712
26.
Trade payables
714
27.
Other payables
715
28.
Provisions
715
29.
Bank borrowings and overdrafts
716
Financial instruments
30.
Financial instruments - Fair values and risk management
723
Other information
31.
Acquisition of subsidiary
728
32.
Related parties
729
33.
Contingencies
731
34.
Commitments
732
35.
Subsequent events
733
CONSOLIDATED FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 DECEMBER 2024
PREPARED IN ACCORDANCE WITH IFRS AS ADOPTED BY THE EUROPEAN UNION
658
659
ELECTRICA 2024 ANNUAL REPORT
ELECTRICA 2024 ANNUAL REPORT
Note
31 December
2024
31 December
2023
ASSETS
Non-current assets
Intangible assets related to concession arrangements
24
6,678,207
6,220,530
Other intangible assets
24
31,293
27,822
Goodwill
49,767
24,663
Property, plant and equipment
23
736,921
594,994
Investments in associates
31
23
16,638
Other investments
7,000
7,000
Deferred tax assets
18
84,627
32,404
Other non-current assets
4,391
51,954
Right of use assets
39,435
40,993
Total non-current assets
7,631,664
7,016,998
Current assets
Trade receivables
19
3,675,688
2,540,442
Subsidies receivable
19
1,976,697
2,614,535
Other receivables
20
74,713
93,832
Cash and cash equivalents
21
454,455
377,215
Inventories
22
111,896
115,660
Prepayments
5,059
12,935
Current income tax receivable
8,949
-
Assets held for sale
280
280
Total current assets
6,307,737
5,754,899
Total assets
13,939,401
12,771,897
EQUITY AND LIABILITIES
Equity
Share capital
25
3,395,530
3,464,436
Share premium
25
103,049
103,049
Treasury shares reserve
25
-
(75,372)
Pre-paid capital contributions in kind from shareholders
25
7
7
Revaluation reserve
25
150,268
159,536
Legal reserves
25
490,833
449,363
Retained earnings
1,561,291
1,259,396
Total equity attributable to the owners of the Company
5,700,978
5,360,415
Non-controlling interests
(25)
(451)
Total equity
5,700,953
5,359,964
(Continued on next page)
CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2024
Note
31 December
2024
31 December
2023
Liabilities
Non-current liabilities
Lease liability – long term
34,379
29,143
Deferred tax liabilities
18
128,165
121,318
Employee benefits
16s
162,697
151,358
Other payables
27
45,692
37,161
Long-term bank borrowings
29
1,824,506
794,348
Total non-current liabilities
2,195,439
1,133,328
Current liabilities
Current portion of long-term bank borrowings
29
565,835
523,294
Lease liability – short term
7,411
14,052
Bank overdrafts
29
2,490,609
2,851,221
Trade payables
26
1,146,413
1,671,478
Other payables
27
1,585,864
1,035,084
Deferred revenue
6,626
7,837
Employee benefits
15, 16
150,863
120,548
Provisions
28
75,905
41,167
Current tax liabilities
13,483
13,924
Total current liabilities
6,043,009
6,278,605
Total liabilities
8,238,448
7,411,933
Total equity and liabilities
13,939,401
12,771,897
The accompanying notes are an integral part of these consolidated financial statements.
Chief Executive Officer
Alexandru-Aurelian Chirita
Chief Financial Officer
Stefan Alexandru Frangulea
27 March 2025
CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2024
IFRS-EU
IFRS-EU
660
661
ELECTRICA 2024 ANNUAL REPORT
ELECTRICA 2024 ANNUAL REPORT
Note
2024
2023
Revenue
10
8,995,202
9,816,593
Other income
12
1,688,891
3,498,553
Electricity, natural gas and merchandise purchased
11
(6,588,827)
(9,057,976)
Construction costs related to concession agreements
24
(932,651)
(976,436)
Employee benefits
17
(1,077,562)
(962,065)
Repairs, maintenance and materials
(130,953)
(95,218)
Depreciation and amortizationg
23, 24
(598,162)
(524,481)
Impairment for trade and other receivables, net
19, 20
(101,964)
(75,820)
Other operating expenses
12
(489,979)
(431,399)
Operating profit
763,995
1,191,751
Finance income
13
12,622
3,425
Finance costs
13
(289,844)
(297,220)
Net finance cost
(277,222)
(293,795)
Share of results of associates
31
(10)
(39)
Profit before tax
486,763
897,917
Income tax expense
18
(97,220)
(125,814)
Profit for the year
389,543
772,103
Profit for the year attributable to:
- owners of the Company
389,576
772,217
- non-controlling interests
(33)
(114)
Profit for the year
389,543
772,103
Earnings per share
Basic and diluted earnings per share (RON)
14
1.15
2.27
The accompanying notes are an integral part of these consolidated financial statements.
Chief Executive Officer
Alexandru-Aurelian Chirita
Chief Financial Officer
Stefan Alexandru Frangulea
27 March 2025
CONSOLIDATED STATEMENT OF PROFIT OR LOSS FOR THE YEAR ENDED 31 DECEMBER 2024
Note
2024
2023
Profit for the year
389,543
772,103
Other comprehensive income
Items that will not be reclassified to profit or loss
Revaluation of property, plant and equipment
23
-
85,510
Tax related to revaluation of property, plant and equipment
18
-
(13,699)
Re-measurements of the defined benefit liability
16
(1,460)
(11,918)
Tax related to re-measurements of the defined benefit liability
18
233
1,907
Other comprehensive income, net of tax
(1,227)
61,800
Total comprehensive income
388,316
833,903
Total comprehensive income attributable to:
- owners of the Company
388,349
834,017
- non-controlling interests
(33)
(114)
Total comprehensive income
388,316
833,903
The accompanying notes are an integral part of these consolidated financial statements.
Chief Executive Officer
Alexandru-Aurelian Chirita
Chief Financial Officer
Stefan Alexandru Frangulea
27 March 2025
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER 2024
IFRS-EU
IFRS-EU
662
663
ELECTRICA 2024 ANNUAL REPORT
ELECTRICA 2024 ANNUAL REPORT
(Continued on next page)
Note
Share
capital
Share
premium
Treasury
shares
reserve
Pre-paid capital
contributions
in kind from
shareholders
Revaluation
reserve
Legal
reserves
Retained
earnings
Total
equity
Non-
controlling
interests
Total
equity
Balance at 1 January 2024
3,464,436
103,049
(75,372)
7
159,536
449,363
1,259,396
5,360,415
(451)
5,359,964
Comprehensive income
Profit for the year
-
-
-
-
-
-
389,576
389,576
(33)
389,543
Other comprehensive profit
-
-
-
-
-
-
(1,227)
(1,227)
-
(1,227)
Total comprehensive profit
-
-
-
-
-
-
388,349
388,349
(33)
388,316
Transactions with owners of the
Company
Contributions and distributions
Reduction of ordinary shares
25
(68,906)
75,372
-
-
-
(6,466)
-
-
-
Dividends to the owners of the
Company
25
-
-
-
-
-
-
(39,999)
(39,999)
-
(39,999)
Total contributions and
distributions
(68,906)
75,372
-
-
-
(46,465)
(39,999)
-
(39,999)
Changes in ownership interests
Acquisition of non-controlling
interest without a change in control
-
-
-
-
-
-
(7,850)
(7,850)
484
(7,366)
Acquisition of subsidiary with
non-controlling interests
31
-
-
-
-
-
-
63
63
(25)
38
Total changes in ownership
interests
-
-
-
-
-
-
(7,787)
(7,787)
459
(7,328)
Total transactions with owners of
the Company
(68,906)
75,372
-
-
-
(54,252)
(47,786)
459
(47,327)
Other changes in equity
Set up of legal reserves
25
-
-
-
-
-
41,470
(41,470)
-
-
-
Transfer of revaluation reserve
to retained earnings due to
depreciation and disposals of
property, plant and equipment
25
-
-
-
-
(9,268)
-
9,268
-
-
-
Balance at 31 December 2024
3,395,530
103,049
-
7
150,268
490,833
1,561,291
5,700,978
(25)
5,700,953
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 DECEMBER 2024
Note
Share
capital
Share
premium
Treasury
shares
reserve
Pre-paid capital
contributions
in kind from
shareholders
Revaluation
reserve
Legal
reserves
Retained
earnings
Total
equity
Non-
controlling
interests
Total
equity
Balance at 1 January 2023
3,464,436
103,049
(75,372)
7
92,117
429,583
554,634
4,568,454
(516)
4,567,938
Comprehensive income
Profit for the year
-
-
-
-
-
-
772,217
772,217
(114)
772,103
Other comprehensive profit
-
-
-
-
71,811
-
(10,011)
61,800
-
61,800
Total comprehensive profit
-
-
-
-
71,811
-
762,206
834,017
(114)
833,903
Transactions with owners of the
Company
Contributions and distributions
Dividends to the owners of the
Company
25
-
-
-
-
-
-
(39,999)
(39,999)
-
(39,999)
Total contributions and
distributions
-
-
-
-
-
-
(39,999)
(39,999)
-
(39,999)
Changes in ownership interests
Acquisition non-controlling
interests without a change of
control
-
-
-
-
-
-
(2,057)
(2,057)
179
(1,878)
Total changes in ownership
interests
-
-
-
-
-
-
(2,057)
(2,057)
179
(1,878)
Total transactions with owners of
the Company
-
-
-
-
-
-
(42,056)
(42,056)
179
(41,877)
Other changes in equity
Set up of legal reserves
25
-
-
-
-
-
19,780
(19,780)
-
-
-
Transfer of revaluation reserve
to retained earnings due to
depreciation and disposals of
property, plant and equipment
25
-
-
-
-
(4,392)
-
4,392
-
-
-
Balance at 31 December 2023
3,464,436
103,049
(75,372)
7
159,536
449,363
1,259,396
5,360,415
(451)
5,359,964
The accompanying notes are an integral part of these consolidated financial statements.
Chief Executive Officer
Alexandru-Aurelian Chirita
Chief Financial Officer
Stefan Alexandru Frangulea
27 March 2025
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 DECEMBER 2024
IFRS-EU
IFRS-EU
664
665
ELECTRICA 2024 ANNUAL REPORT
ELECTRICA 2024 ANNUAL REPORT
Note
2024
2023
Cash flows from operating activities
Profit for the year
389,543
772,103
Adjustments for:
Depreciation
23
18,113
16,391
Amortisation
24
580,051
508,090
Reversal of impairment of property, plant and equipment and
intangible assets, net
23, 24
(1,901)
-
Revaluation of property, plant and equipment recognized in profit
or loss, net
23
-
(2,081)
Loss/(gain) on disposal of property, plant and equipment and
intangible assets
23, 24
1,899
(82)
Impairment of trade and other receivables, net
19, 20
101,964
75,820
Change in provisions, net
28
34,738
(12,534)
Net finance cost
13
277,222
293,795
Changes due to employee benefits
26,344
29,380
Share of loss of associates
31
10
39
Income tax expense
18
97,220
125,814
1,525,203
1,806,735
Changes in:
Trade receivables
(1,561,766)
(309,158)
Subsidies receivable
637,838
(1,333,747)
Other receivables
14,431
5,636
Prepayments
7,876
939
Inventories
3,764
(1,688)
Trade payables
(112,243)
244,355
Other payables
628,975
109,565
Deferred revenue
(1,211)
(16,913)
Cash used in operating activities
1,142,867
505,724
Interest paid
(294,908)
(278,462)
Income tax paid
(147,322)
(58,993)
Net cash flow from operating activities
700,637
168,269
(Continued on next page)
CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2024
Note
2024
2023
Cash flows from investing activities
Payments for purchases of property, plant and equipment
(149,166)
(10,391)
Payments for network construction related to concession
agreements
24
(1,085,671)
(845,331)
Payments for purchase of other intangible assets
(16,516)
(21,313)
Proceeds from sale of property, plant and equipment
-
232
Interest received
12,112
3,270
Acquisition of investments in associates
31
-
(4,149)
Payments for acquisition of subsidiaries, net of cash acquired
(8,451)
(6,308)
Payments for non-controlling interest acquired without change in
control
(7,366)
(1,924)
Net cash flow used in investing activities
(1,255,058)
(885,914)
Cash flows from financing activities
Proceeds from long-term bank borrowings
29
1,635,481
742,658
Proceeds from overdrafts
82,253
271,943
Repayment of long-term bank loans
29
(1,018,909)
(187,730)
Payment of lease liabilities
(27,181)
(26,762)
Dividends paid
25
(39,983)
(40,136)
Net cash generated from financing activities
631,661
759,973
Net increase in cash and cash equivalents
77,240
42,328
Cash and cash equivalents at 1 January
21
377,215
334,887
Cash and cash equivalents at 31 December
21
454,455
377,215
The accompanying notes are an integral part of these consolidated financial statements.
The non-cash transactions are disclosed in Note 21.
Chief Executive Officer
Alexandru-Aurelian Chirita
Chief Financial Officer
Stefan Alexandru Frangulea
27 March 2025
CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2024
IFRS-EU
IFRS-EU
666
667
ELECTRICA 2024 ANNUAL REPORT
ELECTRICA 2024 ANNUAL REPORT
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 DECEMBER 2024
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 DECEMBER 2024
IFRS-EU
IFRS-EU
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 2024.
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 J2000007425408.
As at 31 December 2024 and 31 December 2023, 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 49.785% from the
share capital (31 December 2023: 48.79%).
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 2024 the Company’s subsidiaries are the following:
Subsidiary
Activity
Sole
registration
code
Head Office
% shareholding
as at 31 December
2024
Distributie Energie Electrica
Romania S.A. (“DEER”)
Electricity distribution in
geographical areas Transilvania
Nord, Transilvania Sud and
Muntenia Nord
14476722
Cluj-Napoca
99.99999929%
Electrica Furnizare S.A. (“EFSA”)
Electricity and natural gas supply
28909028
Bucuresti
99.9998444099934%
Electrica Serv S.A. (“SERV”)
Services in the energy sector
(maintenance, repairs,
construction)
17329505
Bucuresti
99.99998095%
Sunwind Energy S.R.L.
Electricity generation
42910478
Bucuresti
100%
New Trend Energy S.R.L.
Electricity generation
42921590
Bucuresti
100%
Foton Power Energy S.R.L.
Electricity generation
43652555
Bucuresti
100%
Crucea Power Park S.R.L. (“CPP”)
Electricity generation
25242042
Constanta
60%
As at 31 December 2023 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
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)
17329505
Bucuresti
99.99998095%
Sunwind Energy S.R.L.
Electricity generation
42910478
Constanta
100%
New Trend Energy S.R.L.
Electricity generation
42921590
Constanta
60%
Foton Power Energy S.R.L.
Electricity generation
43652555
Constanta
60%
As at 31 December 2024 and 31 December 2023, the Company’s associates are the following:
Associate
Activity
Sole
registration
code
Head Office
% shareholding
as at 31
December 2024
% shareholding
as at 31
December 2023
Crucea Power Park SRL
Electricity generation
25242042
Constanta
-
40%
Electrica EsyaSoft Smart
Solutions S.A (“EsyaSoft”)
Manufacture of
accumulators and
batteries
50993644
Bucuresti
25%
-
Changes in Group structure during 2024
Acquisition of shares in subsidiaries
On 15 October 2024, Electrica SA acquired another 20% of the shares and voting rights of Crucea Power Park
S.R.L. (“CPP”), the developer of the “Crucea Est” wind project (with an installed capacity of 121 MW and a
storage capacity of 60 MWh), located in the rural area of Crucea commune, Constanta county. Consequently,
the Group’s participation increased from 40% to 60%, and thus Crucea Power Park S.R.L. became a subsidiary
of the Electrica Group (see Note 31).
On 12 September 2024, Electrica SA completed the acquisition of Foton Power Energy SRL, whose main activity
is the production of energy from photovoltaic sources. Foton Power Energy SRL is developing the “Bihor 1”
photovoltaic project with an authorized installed capacity of 77,525 MW, located in the vicinity of Oradea
municipality. The project is in the “ready-to-build” phase.
On 12 July 2024, Electrica SA completed the acquisition of New Trend Energy SRL, a company whose main
activity is the production of energy from photovoltaic sources. New Trend Energy SRL is developing the “Satu
Mare 3” photovoltaic project with an authorized installed capacity of 57 MW, located in the vicinity of Doba
commune, Satu Mare County. The project is in the “ready-to-build” phase.
668
669
ELECTRICA 2024 ANNUAL REPORT
ELECTRICA 2024 ANNUAL REPORT
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 DECEMBER 2024
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 DECEMBER 2024
IFRS-EU
IFRS-EU
Acquisition of shares in associates
On 5 December 2024, the company Electrica EsyaSoft Smart Solutions S.A. (“EsyaSoft”) was also established,
in which ELSA holds 25% of the company’s share capital and the remaining 75% is held by Esyasoft Enteprise
Holding RSC LTD. EsyaSoft will focus on smart grid technologies (including storage solutions - batteries and
grid digitalization).
Group’s main activities
The activities of the Group include operation and construction of electricity distribution networks and
electricity and natural gas supply to final consumers, as well as energy production from renewable sources.
The Group is the electricity distribution operator and the main electricity supplier in Muntenia Nord area
(Prahova, Buzau, Dambovita, Braila, Galati and Vrancea counties), Transilvania Nord area (Cluj, Maramures,
Satu Mare, Salaj, Bihor and Bistrita Nasaud counties) and Transilvania Sud area (Brasov, Alba, Sibiu, Mures,
Harghita and Covasna counties), operating with transformation station and 0.4 kV to 110 kV power lines.
The Company’s distribution subsidiary, Distributie Energie Electrica Romania S.A. which resulted from the
merger of the three distribution subsidiaries Societatea de Distributie a Energiei Electrice Transilvania Nord
S.A., Societatea de Distributie a Energiei Electrice Muntenia Nord S.A. and Societatea de Distributie a Energiei
Electrice Transilvania Sud S.A. now operates electric lines in 18 counties, from three geographical areas of
the country, representing 40.8% of the Romanian territory, and serves over 3.98 million users. It invoices the
electricity distribution service to electricity suppliers (mainly to Electrica Furnizare S.A. subsidiary) which
further invoices the electricity consumption to final consumers.
The electricity supply segment operates through Electrica Furnizare S.A. (“EFSA”), with its main activity
electricity supply to end users, on the universal service segment and as a supplier of last resort, and as a
supplier on the competitive market, all over Romania.
The Group holds an electricity supply license that covers the entire territory of Romania, valid until 2031. In
order to extend the EFSA operations in Hungary, an electricity trading license was granted by the Autority for
Regulation of Electricity and Public Utilities in Hungary (MEKH) to Electrica Furnizare, by Decision no. H879/2022.
EFSA also holds a natural gas supply license valid until 2032. In 2024, EFSA was designated supplier of last
resort for electricity in March and August, and for natural gas it was nominated supplier of last resort in June.
The Group is active in the production of electricity, especially from renewable sources.
(b) Regulations in the energy sector
Regulatory environment
The activity in the energy sector is regulated by the Romanian Energy Regulatory Authority.
Some of the main responsibilities of ANRE are to approve prices and tariffs and to issue substantiation
methodologies used to set regulated prices and tariffs.
Electricity distribution
The distribution tariffs approved by the National Authority for Energy Regulation (“ANRE”) are as follows (RON/
MWh, presented cumulatively for medium and low voltage levels):
Order 28/23.03.2022
1 April 2022 – 31 March 2023
High voltage
Medium voltage
Low voltage
Transilvania Nord area
23.77
57.49
144.73
Transilvania Sud area
24.63
54.52
158.84
Muntenia Nord area
23.35
56.70
175.26
Order 27/29.03.2023
1 April 2023 – 31 December 2023
High voltage
Medium voltage
Low voltage
Transilvania Nord area
29.09
71.38
182.24
Transilvania Sud area
28.48
62.32
171.97
Muntenia Nord area
31.23
69.44
229.96
Order 115/20.12.2023
Starting 1 January 2024
High voltage
Medium voltage
Low voltage
Transilvania Nord area
31.22
74.86
190.16
Transilvania Sud area
29.55
63.05
185.49
Muntenia Nord area
34.72
74.69
238.63
Ordin 97/20.12.2024
Starting 1 January 2025
Distribution operator
Voltage
Unit
Specific tariff,
comprising of:
non CPT
component
CPT util
component
CPT util_sc
component
Societatea Distributie
Energie Electrica
Romania - S.A.
High
RON/MWh
34.14
26.32
7.03
0.79
Medium
RON/MWh
80.69
46.38
30.84
3.47
Low
RON/MWh
236.10
146.35
80.68
9.07
In 2022, according to the Government’s emergency ordinance (GEO) no. 119/2022, approved through Law
no. 357/2022, the additional costs for purchased electricity (determined as the difference between the
realized costs and the costs included in the approved distribution tariffs), made between 1 January 2022
and 31 March 2025, in order to cover the own technological consumption, compared to the costs included
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in the tariffs regulated (and not only borrowings),
are capitalized quarterly and remunerated with
50% of the regulated rate of return (RRR) approved
by ANRE, applicable during the amortization period
of the respective costs and are recognized as a
distinctive component in the regulated tariffs, called
the component related to additional costs with the
own technological consumption (“NL”). Also, ANRE
elaborated the Methodological norms regarding
the recognition in the tariffs of the additional costs
with the acquisition of electricity for covering the
network losses compared to 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.
Tariff adjustments
Annually, ANRE makes revenue corrections due to:
change in the quantities of electricity distributed
compared to the forecast; change in quantities and
acquisition price for the regulated own technological
consumption compared to the forecast; the annual
change in controllable operating and maintenance
costs, realized and accepted against the forecast;
annual change in uncontrollable operating and
maintenance costs compared to the forecast;
changes in revenues from reactive energy compared
to the forecast; failure to meet/exceeding the
approved
investments
programme;
revenues
generated from other operations made by the
distribution operator and the quantity of electricity
recovered from recalculations.
In regulated activities, the regulatory authority
establishes, through the tariff adjustment mechanism
(as presented above), the criteria for recognizing
surpluses or deficits related to a period in future
periods. 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 tariff changes in subsequent
periods.
Electricity and natural gas supply
The
regulatory
framework
suffered
significant
changes in the last decade in respect of: electricity
and natural gas market liberalisation, separation of
supply and distribution activities, implementation of
the support scheme for renewable energy, support
for the electricity consumers and prices caps for end
users.
Starting with 1 November 2021, in the context of the
increase in prices for the electricity and natural
gas markets at international and national level,
the energy crisis, in Romania a series of support
measures for electricity and natural gas customers
have been applied, by establishing compensation
and capping schemes between 1 November 2021 and
31 March 2025.
Over 2023 and 2024, 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;
• The limitation of the average purchase price
considered for determining the amounts to be
recovered from the state budget initially to 1,300
RON/MWh; then to 900 RON/MWh (according to
Law no. 206/2023, which approves GEO 153/2022)
and starting with 1 April 2024 to 700 RON/MWh
(according to GEO 32/2024);
• The mechanism of centralized purchase of
electric energy (MACEE) provides that OPCOM, as
sole acquirer, to buy 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 electricity
transmission system operator and electricity
distribution system operators to cover their own
technological consumption. For the contracts
concluded until 31 March 2024, 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);
Starting with 1 April 2024, the MACEE price
changes, respectively it decreases from 450 lei/
MWh to 400 lei/MWh. At the same time, producers
can sell electricity voluntarily through MACEE.
• The obligation to store natural gas was calculated
by ANRE based on two criteria: the obligation of
all suppliers to store a quantity of gas that would
cover 90% of Romania’s storage capacity and the
market share that each supplier had in the gas
year 2022-2023 (Electrica Furnizare S.A. market
share was 0.82%). The storage obligation for the
2024-2025 cycle was established by ANRE by
decision no. 360/28.02.2024 at a volume of 219
GWh, an obligation that must be fulfilled by31
October 2024, according to legal requirements;
• The obligation of natural gas producers to sell
at the price of 150 RON/MWh the necessary
quantities to supply household customers/heat
energy producers changes starting 1 April 2024,
meaning the sale price of natural gas decreased
from 150 lei/MWh to 120 lei/MWh.
In accordance with the provisions of GEO no. 32/2024
from 1 April 2024:
• the rule regarding the payment of 40% of the
amount related to the capping within 10 days
from the date of submission of the application
is changed - in the new guide for the payment
of the amount related to the capping there are
10 days from the date ANRE confirms to ME/ANPIS
the correctness data „within the limits of the
amounts available in the Energy Transition Fund
and other legally established amounts”;
• suppliers receive guarantees of origin for the
quantity contracted through MACEE;
• the percentage for the accepted profit in order to
overtax the trading activity increases to 10%;
• between 1 April 2025 and 31 March 2026, suppliers
can prepare offers for final customers only if the
purchase covers at least 50% of the consumption
requirement of the portfolio held;
• the natural gas supply component was increased
from 12 lei/MWh to 15 lei/MWh for non-FUI
customers, and for natural gas customers taken
over as a last resort, the increase is from 13.5 lei/
MWh to 15 lei/MWh.
Additionally, on 29.07.2024, ANRE modified the
Guide for completing the data that is uploaded
on the ANRE portal in order to settle from the state
budget the amounts related to price capping for
final customers, with applicability from 1 January
2024 for electricity. The main changes consist in the
recognition of the amount for which the settlement
is made, respectively the consumption billed for
the month of analysis, and the way of allocating
imbalances based on the weight of the consumption
made by each category of customers (eligible and
FUI, including the wholesale market). This algorithm
for allocating purchase costs significantly impacts
the full recovery of costs recorded by suppliers.
Law no. 316/2024 was published in the Official
Gazette on 23 December 2024, which approved
GEO no. 32/2024 and introduced a settlement
procedure for the volumes of electricity/natural
gas for which payment was requested, applicable
until 31 March 2026. The settlement of the amounts
paid from the State budget to the electricity and
natural gas suppliers, after submission to ANRE, for
each month of the period and for each category of
customers benefitting from the capped final price,
of information related to energy quantities invoiced
for the months of consumption within the applicable
period, following certain changes of the amounts
already paid from the State budget.
The categories of customers to whom the electricity
price capped applies in 2024 (for all customers the
capping mechanism is applied, but differentiated
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based on tranche and category):
• 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 a price
capped at 1.0 lei/KWh, category of customers
benefiting from capping for 100% of consumption,
price capped at 1.0 lei/KWh and the rest of the
companies at a maximum price of 1.3 lei/KWh.
The categories of customers to whom the natural
gas price capped applies in 2023 and in 2024:
• household customers – the maximum price is
capped at 0.31 lei/KWh;
• non-household
customers
-
the
maximum
price is capped at 0.37 lei/KWh for an annual
consumption of up to 50 GWh.
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 (for
further details please refer to Note 20).
Transactions on the competitive wholesale market
are
transparent,
public,
centralized
and
non-
discriminatory. Participants on the wholesale market
can trade electricity based on bilateral contracts
concluded on dedicated markets.
According to the provisions of GEO no. 27/2022, with
subsequent amendments and additions, the capping
support scheme applies until 31 March 2025.
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, 6 (six) green certificates
for each MWh of electricity produced and delivered
to the grid, out 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. Those two GC postponed from trading
are to be recovered in equal monthly tranches
starting from 1 January 2021 until 31 December 2030.
The green certificates issued by Transelectrica for
the production made 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
including the period after the expiration of the validity
period of the accreditation decision (31 January 2028
in the case of the Stanesti photovoltaic park).
The sale of green certificates can be made on OPCOM
markets (spot and combined market). The selling
price has to be within the minimum and maximum
values provided by Law 220/2008 (para. 11) on
establishing the system to promote the production of
energy from renewable energy sources, republished
and subsequently amended.
For 2025 OPCOM set the minimum value of a green
certificate to 146.2532 RON (29.4 euro), while for 2024
the minimum value was 145.4271 RON.
Electricity price
The regulatory framework on the electricity segment
has undergone significant changes in the last decade,
regarding the total liberalization of the electricity
and natural gas market, the implementation of the
support scheme for renewable energy, the support of
electricity consumers, the limitation of prices to final
consumers and the capitalization of additional costs
with own technological consumption.
According to the Emergency Ordinance no. 153/2022,
during the period 1 January 2023 – 31 March 2025, the
centralized electricity purchase mechanism (MACEE)
was established, OPCOM being designated as the
sole purchaser. The distribution operators („OD”)
will buy from OPCOM through an annual/monthly
mechanism at least 75% of the quantity forecast and
validated by ANRE at the price of 450 lei/MWh, and
the producers will sell to OPCOM through an annual/
monthly mechanism 80% of the quantity forecast and
validated by ANRE and Transelectrica at the price of
450 lei/MWh. Emergency Ordinance no. 32/2024,
modifies and completes GEO no. 27/2022, and for
the period April 1, 2024 - December 31, 2024, MACEE
is modified, so that producers will voluntarily sell to
OPCOM at the price of 400 lei/MWh and OD will buy
electricity from OPCOM at the price of 400 lei/MWh.
As
a
result,
for
the
distribution
segment,
Romanian Regulatory Authority for Energy – ANRE
(https://www.anre.ro/) adopted measures through
its Order no. 129/12.10.2022, amended by Order no. 104
approving the Methodological Norms regarding the
recognition in the tariffs of the additional costs with
the acquisition of electricity for own technological
consumption compared to the costs included in the
regulated tariffs, carried out between 1 January 2022
– 31 March 2025.
ANRE will determine the recognized annual amounts
of the costs based on the quantities and prices
recognized for NL, and by 15 March of the year
immediately following the year of the additional
costs, ANRE will transmit to the distribution operators
the recognized annual amounts of the costs for the
previous year. The computation of the 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.
For the supply segment, both in 2024 and in 2023,
the effect of retail electricity prices was covered by
subsidies, which must be recovered from the state
authorities, as a result of the application of the price
capping mechanism for electricity and natural gas
to final customers and as a result of application of
GEO 27/2022, with subsequent amendments and
additions. The manner of implementation of this
mechanism and the settlement mechanism of the
amounts granted as support to clients, ex post from
the state budget to the electricity suppliers, have
generated constraints in terms of cash flow, as
well as uncertainties regarding the recovery the full
amount of the respective amounts by the suppliers.
In this context, EFSA has adapted to these changes, to
manage their impact on the company’s activities in
a responsible and sustainable manner in the context
of a regulatory framework that has seen numerous
successive and major updates.
The Group actively reviews and implements policies
and strategies to recover from the loss generated
by the increase in energy price, strategies which
mainly aim in revising the method of generating
the selling price for final consumers, concluding
agreements with specific clauses ensuring new
financing facilities, closely monitoring suppliers and
consumers payment terms, monitoring daily cash
flow and forecasted cash flow. The Group continues
to closely monitor the macroeconomic outlook and
as additional information will be available, their
effects on the activity of Group companies and over
the financial results will be analyzed.
Geopolitical tensions
In
February
2022
global
geopolitical
tensions
significantly
escalated
following
military
interventions in Ukraine by the Russian Federation. As
a result of these escalations, economic uncertainties
in energy and capital markets have increased, with
global energy prices expected to be highly volatile
for the foreseeable future. As at the date of these
consolidated financial statements, management is
unable to reliably estimate the effects on the Groups
financial outlook and cannot exclude adverse
consequence on the business, operations, and
financial position. Management believes it is taking all
the necessary measures to support the sustainability
and growth of the Group’s business in the current
circumstances and that judgements used in these
financial statements remain appropriate.
Cyber-attack
On 9 December 2024, the Group has been subject
to a cyber-attack. The Group’s team of specialists,
that has been worked closely with the national
cybersecurity authorities, has managed to put in
place the relevant protocols to address the incident.
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Based on preliminary report from cybersecurity
authorities the infrastructure and critical systems
were not affected, and the Group was able to
successfully restore the back-ups from the previous
periods. At the date of the issuance of these financial
statements, the investigation is still undergoing,
however the group does not except any significant
negative impact to occur.
2 Basis of accounting
These annual consolidated financial statements
have been prepared in accordance with International
Financial Reporting Standards (“IFRS Accounting
Standards”) as adopted by the European Union. The
consolidated financial statements were authorized
for issue by the Board of Directors on 27 March 2025
and will be submitted for shareholders’ approval in
the meeting scheduled on 29 April 2025.
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 Accounting
Standards as adopted by the European Union.
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 technological consumption network, which are
recognised as intangible assets (please see the
primary set of financial statements in accordance
with OMFP no. 2844/2016). Also, according to ANRE
regulations issued in 2022, the capitalised costs
of intangible non-current assets for the period
01 January 2022 – 31 March 2025 are recorded in
the accounting records on the annual financial
statements according to the instructions developed
by the Ministry of Finance OMFP no. 2844/2016 with
subsequent amendments (Romanian GAAP).
The Group has consistently applied the accounting
policies to all periods presented in these consolidated
financial
statements.
Details
of
the
Group’s
accounting policies are included in Notes 6 and 7.
Other matters – format in accordance with the
European Securities and Markets Authority (ESMA)
Due to the technical limitations of the software used
to present the consolidated financial statements in
the European single electronic format (“ESEF”), the
tables included in the footnotes are displayed in a
linear, logical, and understandable manner.
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.
(a) Judgements
Information about judgements made in applying
accounting policies that have the most significant
effects on the amounts recognised in the consolidated
financial statements is included below.
Revenue recognition
The Group assesses its revenue arrangements based
on specific criteria to determine if it is acting as a
principal or an agent. In applying IFRS 15, the Group
has identified that it acts in the capacity of an agent
in case of transactions as Balancing Responsible
Party (“BRP”) and thus recognises revenue as the net
amount of the commission earned by the Group. The
Group concluded that it is acting as a principal in all
other revenue arrangements.
Service Concession Arrangements
The distribution subsidiaries (as operators) that
merged into one single distribution operator as of
31 December 2020 concluded concession contracts
with the Ministry of Economy (as grantor) in 2005,
updated by subsequent addendums. These contracts
concern the operation of electricity distribution
service in the established territory (Transilvania
Nord, Transilvania Sud, Muntenia Nord), on the risk
and responsibility of the operators and taking into
account the regulations applicable to the operation,
modernization,
rehabilitation
and
development
of energy distribution networks specified in the
Electricity Law, the terms and conditions of the
licenses for electricity distribution and the regulations
issued by ANRE. The distribution operator resulting
from the merger of the three distribution operators
within
the
Group,
Distributie
Energie
Electrica
Romania concluded addendums to the concession
agreements signed with the Ministry of Economy for
the operation of electricity distribution service in all
three areas.
IFRIC
12
“Service
Concession
Arrangements”
deals with public-to-private service concession
arrangements. IFRIC 12 applies to public-to-private
service concession arrangements if:
(a) the grantor controls or regulates what services
the operator must provide with the infrastructure,
to whom it must provide them, and at what price;
and
(b) the grantor controls - through ownership,
beneficial
entitlement
or
otherwise
-
any
significant residual interest in the infrastructure
at the end of the term of the arrangement.
The control or regulation referred to in condition (a)
could be by contract or otherwise (such as through a
regulator). The activities of the electricity distribution
operators, including distribution tariffs, are regulated
by ANRE.
The concession contracts are concluded for a period
of 49 years and may be extended for a period equal
to no more than half of that period. As a price for
the concession, the operators pay an annual royalty
fee recognized in the distribution tariff of 1/1000 of
the revenues from electricity distribution. According
to the concession contracts, the operators use the
assets representing the distribution network owned
by them located in the above-mentioned territory for
electricity distribution. According to the concession
contracts, the grantor 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, at a price equal to the value
of the regulated assets base at the end of the
concession.
Within the arrangements, the Group incurs significant
expenditure in relation to the development and
maintenance of the infrastructure. The construction
works are either outsourced by the Group to sub-
contractors, or performed internally. Significant
management judgment is involved in accounting
for the concession arrangements under IFRIC 12,
including those in respect of the recognition of
revenue based on the separation of construction or
upgrade services from operation services.
The concessionaires act as service suppliers (they
build, modernize and maintain the distribution
network) and the revenues related to the construction
or improvement of infrastructure is recorded according
to IFRS 15. This results in revenues and expenditures
being recognized in the profit and loss account
(related to the construction and modernization of
infrastructure), as well as of a margin resulting from
rendering the construction services establised by the
Group. Starting with 31 December 2024, the Group
reassesed the margin applied and a margin of 7.26%
is applied for period 01 January 2024 – 31 December
2024, based on the Group’s experience in working
with external contractors. Until 31 December 2023,
the margin applied was 4.35%, as presented in the
annual consolidated financial statements as at and
for the year ended 31 December 2023.
(b) Assumptions and estimation uncertainties
Information about assumptions and estimation
uncertainties that may result in a material adjustment
in the subsequent twelve-month period is included in
the following notes:
• Note 8 d) – assumptions regarding recognition
of revenue from supply and distribution of
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electricity to consumers based on estimates for
electricity delivered and for which no reading
was performed yet;
• Notes 19 and 31 – 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 23 - assumptions regarding the revalued
value of tangible assets;
• Notes 28 and 33 – recognition and measurement
of provisions and contingencies;
• Note 19 – assumptions and estimates of amounts
to be received from the state following the
application of the compensation and capping
scheme.
Measurement of fair values
A number of the Group’s accounting policies and
disclosures require the measurement of fair values,
for both financial and non-financial assets and
liabilities.
When measuring the fair value of an asset or a
liability, the Group uses market observable data
as far as 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.
The Group recognises transfers between levels of the
fair value hierarchy at the end of the reporting period
during which the change has occurred.
Further information about the assumptions made
in measuring fair values is included in the following
notes:
• Note 30 – Financial instruments;
• Note 23 – Property, plant and equipment.
5 Basis of measurement
The consolidated financial statements have been
prepared on the historical cost basis except for the
land and buildings which are measured based on the
revaluation model.
6 Changes in significant accounting policies
Adopting new standards
The Group has not adopted new standards issued by
the International Accounting Standards Board (IASB)
and adopted by the EU applicable on 1 January 2024,
so there is no significant change in the consolidated
statements of the Group.
Adoption of new changes to existing standards
The Group has consistently applied the following
accounting policies to all periods presented in
these consolidated financial statements. The new
amendments to existing standards effective from 1
January 2024 do not have a significant effect on the
Group’s consolidated financial statements.
Amendments to IFRS Accounting Standards issued by
the International Accounting Standards Board (IASB)
that are mandatory for reporting periods beginning
on or after 1 January 2024, but without a significant
impact on the financial statements are as follows:
• Amendments to IAS 1 “Presentation of Financial
Statements” - Classification of Liabilities into
Current and Non-Current Liabilities (effective for
annual periods beginning on or after 1 January
2024);
• Amendments to IFRS 16 “Leases” - Sale and
Leaseback Lease Liabilities (effective for annual
periods beginning on or after 1 January 2024);
• Amendments to IAS 7 “Cash Flow Statement”
and IFRS 7 “Financial Instruments: Presentation:
Supplier Financing Arrangements (effective for
annual periods beginning on or after 1 January
2024).
7
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
Group has prepared a forecast that includes the
following assumptions:
• A termination of the support scheme until on 30
June 2025 according to the applicable legislation
but with a continuously stable flow of repayments
of the reimbursement requests for subsidies;
• The renewal of the confirmed existing overdraft
limits is planned up to a limit of RON 3,219,057
thousand (out of which drawn at RON 2,490,609
thousand 31 December 2024 – pls see note 29).
At the date of issuance of these consolidated financial
statements 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
2023 for the distribution segment) as market share
on the electricity distribution and 15.36 % (according
to the latest ANRE report September 2024 for the
supply segment) as market share on the electricity
supply 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
implemented and the strategies to reduce the risks
which may occur due to the instability of the 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
(i) Subsidiaries
Subsidiaries are entities controlled by the Group. The
Group controls an entity when it is exposed to, or has
rights to, variable returns from its involvement with
the entity and has the ability to affect those returns
through its power over the entity. Subsidiaries are
included in the consolidation perimeter from the
date that control commences until the date on which
control ceases.
(ii) Loss of control
On the loss of control, the Group derecognizes the
assets and liabilities of the subsidiary, any non-
controlling interests and the other components of
equity related to the subsidiary. Any surplus or deficit
arising on the loss of control is recognized in 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 level of influence
retained.
(iii) Non-controlling interests
The
Group
measures
any
non-controlling
interests in the subsidiary at their proportionate
share of the subsidiary’s identifiable net assets.
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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-controlling
interests are based on a proportionate amount of the
net assets of the subsidiary.
(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 extent
that there is no evidence of impairment.
(c) Business combinations
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 interest
issued by the Group in exchange for control of the
acquiree. Acquisition-related costs are recognised in
profit or loss as incurred.
(d) Revenue
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 services
rendered or goods delivered, net of VAT, excises or
other taxes related to the sale.
Supply and distribution of electricity
The revenue from supply and distribution of electricity
to consumers is recognized when electricity is
delivered to consumers (consumed by consumers),
based on meter readings and based on estimates
for electricity delivered and for which no reading
was performed yet. The invoicing of electricity sales
is performed on a monthly basis. Monthly electricity
invoices are based on meter 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.
Generation and sale of electricity
The electricity produced by the Group is mainly
sold on the Day Ahead Market and the revenue is
recognized when the electricity is injected into the
network and is being sold on the market.
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
market or a combination of both. The selling price
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:
• Revenue in respect of variations to contracts
and incentive payments is recognised when
there is an enforceable right to payment and
it is highly probable it will be agreed by the
customer. Variable consideration is assessed on
a contract by contract basis according to the
facts, circumstances and terms of each project
and only recognised to the extent that it is highly
probable not to significantly reverse in the future.
Revenue in respect of claims is recognised only if it
is highly probable not to reverse in future periods.
• 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
Revenues from the subsidies
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.
(f) Repairs and maintenance
Repair and maintenance expense is recorded as the
operating expense base on an accrual basis.
(g) Finance income and finance costs
The Group’s finance income and finance costs
include:
• 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).
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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.
Re-measurements of the net defined benefit liability,
which comprise actuarial gains and losses, are
recognised immediately in other comprehensive
income. The Group determines the net interest
expense/(income) on the net defined benefit liability
for the period by applying the discount rate used
to measure the defined benefit obligation at the
beginning of the annual period to the then-net
defined benefit liability, taking into account any
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.
(iv) Termination benefits
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.
(i) Income tax
Income tax expense comprises current and deferred
tax. It is recognised in profit or loss except to the
extent that it relates to a business combination
or items recognised directly in equity or in other
comprehensive income.
(i) Current tax
Current tax comprises the expected tax payable or
receivable on the taxable income or loss for the year
and any adjustment to tax payable or receivable
in respect of previous years. It is measured using
tax rates enacted or substantively enacted at the
reporting date. Current tax also includes any tax
arising from dividends.
(ii) Pillar 2 analysis – effective tax rate “ETR”
Law 431/2023 on ensuring a global minimum level
of taxation for multinational and large domestic
groups of companies transposes into national law
the provisions of Directive 2523/2022 on ensuring
a minimum level of taxation, which includes the
guidelines of the second pillar of the „Global Model
Rules to combat tax base erosion” („GloBE rules”/”Pillar
2 rules”) issued by the OECD/G20 Inclusive Framework
on BEPS. Also, according to Article 5 of Law 431/2023,
the explanations and examples in the Administrative
Guidelines issued by the Organization for Economic
Cooperation and Development („OECD”) are used for
the application of this law.
The GloBE rules are applicable to large groups of
companies, both national and multinational, namely
those which have a consolidated turnover (at the
level of the whole group) of at least 750 million Euro in
at least two of the four years preceding the reference
year.
Under GloBE rules, the effective tax rate („ETR”) is
calculated annually at jurisdiction level. The ETR is
computed as the ratio of the Adjusted Covered Taxes
of the Constituent Entities („CE”) - the numerator and
the Qualifying Net Profits of the Constituent Entities
- the denominator. Both the numerator and the
denominator represent the aggregate amounts of all
ECs located in a jurisdiction.
The
transitional
Country-by-Country
Reporting
(„CbCR”) protection regime identifies „low-risk”
jurisdictions by applying three quantitative tests,
leveraging existing data from the CbCR report and
from the multinational group’s accounting. In the case
of large domestic groups, as they are not required
to prepare and file CbC reports, the data required
for the tests under the protection regimes will be
extracted from the qualified financial statements (as
per art. 36, paragraph 7 of Law 431/2023). The three
quantitative tests are:
• The De Minimis Test - is considered fulfilled if the
total income from the CbCR report, i.e. from the
qualified financial statements, does not exceed
10 million Euro and the pre-tax profit does not
exceed 1 million Euro.
• Simplified ETR Simplified test - this considers the
simplified covered taxes in the qualified financial
statements as reported in the profit before tax
in the CbCR report and in the qualified financial
statements. The test is met when the percentage
so calculated is higher than the applicable
minimum rate. The minimum rate for purposes
of this test is 15% for the fiscal year beginning in
2024, increasing to 16% and 17% for the fiscal years
beginning in 2025 and 2026, respectively.
• The Routine Profits Test - applies to jurisdictions
where the Substance-Based Profits Exclusion
from Economic Substance („SBIE”) equals or
exceeds the pre-tax profit in the CbCR report,
i.e., the qualified financial statements. SBIE is an
indicator that is calculated based on the group’s
fixed assets and payroll costs in that jurisdiction.
Entities that are part of a multinational or domestic
group in a jurisdiction need to meet only one of the
three tests in order to qualify for the CbCR transitional
regime.
(iii) 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
• taxable temporary differences arising on the
initial recognition of goodwill.
Deferred tax assets are recognised for unused tax
losses, unused tax credits and deductible temporary
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.
Deferred tax is measured at the tax rates that are
expected to be applied to temporary differences when
they reverse, using tax rates enacted or substantively
enacted at the reporting date. The measurement
of deferred tax reflects the tax consequences that
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would follow from the manner in which the Group
expects, at the reporting date, to recover or settle the
carrying amount of its assets and liabilities. Deferred
tax assets and liabilities are offset only if certain
criteria are met.
Unrecognized deferred tax assets are reassessed at
each reporting date and recognized to the extent
that it has become probable that the future taxable
profits will be available against which they can be
used.
The Group applies IFRIC 23 „Uncertainty over Income
Tax Treatments”. IFRIC 23 clarifies how to apply the
recognition and measurement requirements in IAS 12
when there is uncertainty over income tax treatments.
In such a circumstance, the Group shall recognise
and measure its current or deferred tax asset or
liability applying the requirements in IAS 12 based
on taxable profit (tax loss), tax bases, unused tax
losses, unused tax credits and tax rates determined
applying this interpretation.
The Group assesses whether it is probable (more
than 50% chances) that a tax authority will accept
an uncertain tax treatment.
Thus, the Group shall reflect the effect of uncertainty
for each uncertain tax treatment by using either of
the following methods, depending on which method
the entity expects to better predict the resolution of
the uncertainty:
(a) the most likely amount - the single most likely
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.
(b)
the
expected
value
-
the
sum
of
the
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.
(j) Green certificates
Electricity supply
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.
The cost of green certificates is accrued in the profit
or loss based on the quantitative quota determined
by the regulator representing the quantity of the
green certificates that the Group has to purchase for
the year and based on the price of green certificates
acquired on the centralized market. The obligation
for covering the annual acquisition quota is accrued
in profit or loss.
Electricity generation
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.
Green certificates are recognized as inventories
when the producer has the right to receive as a result
of energy produced and delivered into the network,
at nil nominal value. Recognition in the profit and loss
account is done at the time of their sale.
(k) Inventories
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.
Inventories are measured at the lower of cost and 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.
Consumables used for the repairs and maintenance
of the electricity network are included in profit and
loss when consumed and presented in “Repairs,
maintenance and materials”.
(l) Property, plant and equipment
(i) Recognition and measurement
Property, plant and equipment are stated initially at
cost, which includes purchase price and other costs
directly attributable to acquisition and bringing the
asset to the location and condition necessary for
their intended use.
After
initial
recognition,
land
and
buildings
are measured at revalued amounts less any
accumulated depreciation and any accumulated
impairment losses since the most recent valuation.
The other 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 to ensure that the carrying
amount does not differ materially from the one that
would be determined using the fair value at the end
of the reporting period. When a building is revalued,
the accumulated depreciation is eliminated against
the gross carrying amount of that item, and the net
amount is restated to the revalued amount of the
asset.
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.
Spare parts, stand-by and servicing equipment are
classified as property, plant and equipment if they
are expected to be used during more than one period
or can be used only in connection with an item of
property, plant and equipment.
Any gain or loss on disposal of an item of property,
plant and equipment is recognised in profit or loss.
(ii) Subsequent expenditure
Subsequent expenditure is capitalised only if it
is probable that the future economic benefits
associated with the expenditure will flow to the Group.
(iii) Depreciation
Depreciation is calculated to write off the cost of items
of property, plant and equipment less their estimated
residual values using the straight-line method over
their estimated useful lives and is recognised in
profit or loss. Leased assets are depreciated over the
shorter of the lease term and their useful lives unless
it is reasonably certain that the Group will obtain
ownership by the end of the lease term. Land and
construction in progress are not depreciated.
The estimated useful lives of property, plant and
equipment are as follows:
Category
Useful lives (years)
Buildings
45-70
Equipment
3-25
Motor vehicles and office
equipment
3-10
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 subsequently
amended and supplemented, access to power grids
of public interest is a mandatory service provided
under regulatory conditions, which the transmission
and system operator as well as the distribution
operators must ensure.
At the request of a new or pre-existing customer, the
distribution operators are obliged to communicate
the technical and economic conditions for the
connection network and to cooperate with the
applicant to choose the most advantageous technical
and economic solution. Afterwards, a connection
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contract is concluded between the distribution
operator and the customer at a regulated tariff. The
actual construction of the connection installation is
carried out by a construction supplier certified by
ANRE.
The Group collects cash from customers, which is
used only to pay for the construction of the connection
station, and the Group must then use this asset to
connect customers to the network. According to ANRE
Order no. 59/2013, with subsequent amendments,
these assets remain in the ownership of the network
operator.
The Group recognizes the assets at nil value, net of
the amount of the deferred income representing the
contributions from customers. The assets financed
from connection fees received from the new users of
the distribution network are not included in the RAB.
At the end of the concession contract, the assets
built from the connection tariff will be transferred to
the concessionaire free of charge together with the
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:
• In the period from 1 January 2022 to 24 July 2022,
they enter the distribution operator’s assets from
the time of commissioning, on the basis of GEO
no. 143/2021, without being recognised by ANRE as
part of the regulated asset base;
• From 25 July 2022 they do not become part of the
distribution operator’s assets, on the basis of Law
no. 248/2022 and ANRE Order no. 133/2022, they
are only transferred to the distribution operator
for operation.
Starting with 2021, according to ANRE Order no.
160/2020 amending ANRE Order no.59/2013, the
connection installations that are financed by the
customers will remain in their ownership and are
being exploited by the network operator. However,
according to ANRE Order no. 17/2021 for the connection
installations of all household consumers and of the
non-household with lengths less than 2.5 km, the
distribution operator has the obligation to finance
them and these will remain in the ownership of the
network operator.
(n) Intangible asset in a service concession
arrangement
(i) Recognition and measurement
The Group recognises an intangible asset arising from
a service concession arrangement when it has a right
to charge for use of the concession infrastructure.
An intangible asset received as consideration for
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.
(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 expected
pattern of consumption of those future economic
benefits. The Group determined that the amortization
method that reflects appropriately the expected
pattern of consumption of the expected future
economic benefits is correlated with the amortisation
of the regulated asset base “RAB”.
(o) Other intangible assets
(i) Recognition and measurement
Other intangible assets that are acquired by the
Group and have finite useful lives are measured
at cost less accumulated amortization and any
accumulated impairment losses.
(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.
(q) Financial instruments
Financial
assets
and
financial
liabilities
are
recognised in the Group’s statement of financial
position when the Group 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
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
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
consist solely of payments of principal and interest
on the principal amount outstanding.
The amortized cost of a financial asset is the amount
at which the financial asset is measured at initial
recognition minus the principal reimbursements,
plus the cumulative amortization using the effective
interest method of any difference between that
initial amount and the maturity amount, adjusted
for any loss allowance. The gross carrying amount of
a financial asset is the amortized cost of a financial
asset before adjusting for any loss allowance.
Foreign exchange gains and losses
The carrying amount of financial assets that are
denominated in a foreign currency is determined in
that foreign currency and translated at the spot rate
at the end of each reporting period.
Loans and receivables
These assets are initially recognised at fair value
plus any directly attributable transaction costs.
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Subsequent to initial recognition, they are measured
at amortised cost using the effective interest method.
The amortised cost is reduced by impairment losses.
Loans and receivables comprise trade receivables,
cash and cash equivalents and deposits.
Trade receivables
Trade receivables include mainly unsettled invoices
issued until reporting date for supply and distribution
of electricity and services, late payment penalties
and accrued revenue for electricity delivered and
services rendered until the end of the year but
invoiced after the end of the year.
Cash and cash equivalents
Cash and cash equivalents comprise cash balances,
call deposits and deposits with maturities of three
months or less from the set-up date that are subject
to an insignificant risk of changes in their fair value
and are used by the Group in the management of its
short-term commitments.
(ii) Financial liabilities
All financial liabilities are measured subsequently at
amortised cost using the effective interest method or
at fair value through profit or loss.
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
cost using the effective interest method.
The effective interest method is a method of
calculating the amortised cost of a financial liability
and of allocating interest expense over the relevant
period. The effective interest rate is the rate that
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)
through the expected life of the financial liability,
or (where appropriate) a shorter period, to the
amortised cost of a financial liability.
Other financial liabilities include bank borrowings,
bank overdrafts, financing for network construction
related
to
concession
agreements
and
trade
payables.
(iii) Share capital
Ordinary shares
Ordinary shares are classified as equity. Incremental
costs directly attributable to the issue of ordinary
shares, net of any tax effects, are recognised as a
deduction from equity.
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 shares and are
presented in the treasury share reserve.
When
treasury
shares
are
sold
or
reissued
subsequently, the amount received is recognised
as an increase in equity and the resulting surplus or
deficit on the transaction is presented within share
premium.
(iv) Impairment
Impairment of financial assets
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 as well as the
forecast direction of conditions at the reporting date,
including time value of money where appropriate.
i) Significant increase in credit risk
In assessing whether the credit risk on a financial
instrument has increased significantly since initial
recognition, the Group compares the risk of a default
occurring on the financial instrument at the reporting
date with the risk of a default occurring on the
financial instrument at the date of initial recognition.
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.
(ii) Write‑off policy
The Group writes off a financial asset after the
finalization of the bankruptcy proceedings. Financial
assets written off may still be subject to enforcement
activities under the Group’s recovery procedures,
taking into account legal advice where appropriate.
Any recoveries made are recognised in profit or loss.
(iii) Measurement and recognition of expected credit
losses
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 given default is
based on historical data adjusted by 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
effective interest rate.
Derecognition of financial assets
The Group derecognises a financial asset only when
the contractual rights to the cash flows from the asset
expire, or when it transfers the financial asset and
substantially all the risks and rewards of ownership
of the asset to another entity. If the Group neither
transfers nor retains substantially all the risks and
rewards of ownership and continues to control the
transferred asset, the Group recognises its retained
interest in the asset and an associated liability for
amounts it may have to pay. If the Group retains
substantially all the risks and rewards of 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
The difference between the revalued amount and
the net carrying amount of property, plant and
equipment is recognised as revaluation reserve
included in equity.
If an asset’s carrying amount is increased as a
result of a revaluation, the increase is recognised
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 amount
of the asset previously recognised in profit and loss.
If an asset’s carrying amount is decreased as a result
of a revaluation, the decrease is recognised in profit
or loss. However, the decrease is recognized in equity
in revaluation reserves if there is any 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.
(s) Dividends
Dividends are recognized as a deduction from equity
in the period in which their distribution is approved
and recognised as a liability to the extent it is unpaid
at the reporting date. Dividends are disclosed in the
notes to financial statements when their distribution
is proposed after the reporting date and before the
date of the issuance of the financial statements.
(t) Pre-paid capital contributions in kind from
shareholders
These contributions from a shareholder represent
pre-paid contributions of land for which the Company
obtained title deeds in respect of future issuance of
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shares. The amounts recorded are based on the fair
value of the land.
(u) Provisions
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
be required to settle the obligation. Provisions are
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 discount
is recognised as finance cost.
A provision for restructuring is recognised when
the Group has approved a detailed and formal
restructuring plan, and the restructuring either has
commenced or has been announced publicly. Future
operating losses are not provided for.
(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
(b) a present obligation that arises from past events
that is not recognised because:
i. it is not probable that an outflow of resources
embodying economic benefits will be required
to settle the obligation; or
ii. the amount of the obligation cannot be
measured with sufficient reliability.
Contingent liabilities are not recognized in the
Group’s financial statements, but disclosed unless
the possibility of an outflow of resources embodying
economic benefits is remote.
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
The Group applies IFRS 16 “Leases”.
The Group assesses whether a contract is or contains
a lease, at inception of the contract. The Group
recognises a right-of-use asset and a corresponding
lease liability with respect to all lease arrangements
in which it is the lessee, except for short-term leases
(with a lease term of 12 months or less) and leases of
low value assets (of less than USD 5,000). For these
leases, the Group recognises the lease payments as
an operating expense on a straight-line 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.
The Group remeasures the lease liability (and makes
a corresponding adjustment to the related right-of-
use asset) whenever:
• the lease term has changed or there is a
significant event or change in circumstances
resulting in a change in the assessment of exercise
of a purchase option, in which case the lease
liability is remeasured by discounting the revised
lease payments using a revised discount rate;
• the lease payments change due to changes 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 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.
Right-of-use assets are depreciated over the shorter
period of lease term and useful life of the 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
straight-line basis over the term of the lease.
(x) Investment in associates
An associate is an entity over which the Group has
significant influence and that is neither a subsidiary
nor an interest in a joint venture. Significant influence
is the power to participate in the financial and
operating policy decisions of the investee but is not
control or joint control over those policies.
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
sale, in which case it is accounted for in accordance
with IFRS 5.
Under the equity method, an investment in an
associate is recognised initially in the consolidated
statement of financial position at cost and adjusted
thereafter to recognise the Group’s share of the
profit or loss and other comprehensive income of the
associate.
When the Group’s share of losses of an associate
exceeds the Group’s interest in that associate (which
includes any long-term interests that, in substance,
form part of the Group’s net investment in the
associate), the Group discontinues recognising
its share of further losses. Additional losses are
recognised only to the extent that the Group has
incurred legal or constructive obligations or made
payments on behalf of the associate.
An investment in an associate is accounted for
using the equity method from the date on which the
investee becomes an associate. On acquisition of the
investment in an associate, any excess of the cost of
the investment over the Group’s share of the net fair
value of the identifiable assets and liabilities of the
investee is recognised as goodwill, which is included
within the carrying amount of the investment. Any
excess of the Group’s share of the 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.
The requirements of IAS 36 are applied to determine
whether it is necessary to recognise any impairment
loss with respect to the Group’s investment in an
associate. When the entire carrying amount of
the investment (including goodwill) is tested for
impairment in accordance with IAS 36 as a single
asset by comparing its 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 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 to be an
associate.
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 DECEMBER 2024
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(y) Segment reporting
Segment results that are reported to the Company’s
Board of Directors (the chief operating decision
maker) include items directly attributable to a
segment as well as those that can be allocated on a
reasonable basis.
(z) Subsequent events
Events occurring after the reporting date 31 December
2024, which provide additional information about
conditions prevailing at the reporting date (adjusting
events) are reflected in the consolidated financial
statements. Events occurring after the reporting date
that provide information on events that occurred
after the reporting date (non-adjusting events),
when material, are disclosed in the notes to the
consolidated financial statements. When the going
concern assumption is no longer appropriate at or
after the reporting period, the financial statements
are not prepared on a going concern basis.
8 Adoption of new and revised standards and
interpretations
Initial application of new amendments to the
existing standards effective for the current year
In the current year, the Group has applied a number
of amendments to IFRS Accounting Standards issued
by the International Accounting Standards Board
(IASB) and adopted by the EU that are mandatorily
effective for reporting period that begins on or after
1 January 2024. Their adoption has not had any
material impact on the disclosures or on the amounts
reported in these financial statements.
• 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 7 “Statement of Cash Flows”
and IFRS 7 “Financial Instruments: Disclosures”
- Supplier Finance Arrangements (effective for
annual periods beginning on or after 1 January
2024); and
• Amendments to IFRS 16 “Leases” - Lease Liability
in a Sale and Leaseback (effective for annual
periods beginning on or after 1 January 2024).
Standards
and
amendments
to
the
existing
standards issued by IASB and adopted by the EU
but not yet effective
At the date of authorization of these consolidated
financial statements, the following amendments
to the existing standards were issued by IASB and
adopted by the EU and which are not yet effective:
• Amendments to IAS 21 “The Effects of Changes in
Foreign Exchange Rates”: Lack of Exchangeability
(effective for annual reporting periods beginning
on or after 1 January 2025).
The Group has elected not to adopt the amendments
to existing standards in advance of their effective
dates. The Group anticipates that the adoption of
these amendments to existing standards will have no
material impact on the financial statements of the
Group in the period of initial application.
New standards and amendments to the existing
standards issued by IASB but not yet adopted by
the EU
At present, IFRS Accounting Standards as adopted
by the EU do not significantly differ from regulations
adopted by the International Accounting Standards
Board (IASB) except for the following new standards
and amendments to the existing standards, which
were not endorsed for use in EU as at the date
of
publication
of
these
consolidated
financial
statements (the effective dates stated below are for
IFRS Accounting Standards as issued by IASB):
• IFRS 14 “Regulatory Deferral Accounts” (effective
for annual periods beginning on or after 1
January 2016) – the European Commission has
decided not to launch the endorsement process
of this interim standard and to wait for the final
standard;
• IFRS 18 “Presentation and Disclosures in Financial
Statements”
(effective
for
annual
periods
beginning on or after 1 January 2027, but not yet
endorsed in the EU). The new standard introduces
the following key new requirements:
• entities are required to classify all income and
expenses into five categories in the statement
of profit or loss, namely the operating,
investing, financing, discontinued operations
and income tax categories. Entities are also
required to present a newly defined operating
profit subtotal. Entities’ net profit will not
change;
• management-defined performance measures
(MPMs) are disclosed in a single note in the
financial statements;
• enhanced guidance is provided on how to
group information in the financial statements.
In addition, all entities are required to use the
operating profit subtotal as the starting point
for the statement of cash flows when presenting
operating cash flows under the indirect method.
The Group is still in the process of assessing the
impact of the new standard, particularly with
respect to the structure of the Group’s statement
of profit or loss, the statement of cash flows and
the additional disclosures required for MPMs. The
Group is still in process of assessing the impact
on how information is grouped in the financial
statements, including for items currently labelled
as ‚other’.
• IFRS 19 “Subsidiaries without Public Accountability:
Disclosures”
(effective
for
annual
periods
beginning on or after 1 January 2027, but not yet
endorsed in the EU);
• Amendments to IFRS 9 “Financial Instruments”
and IFRS 7 “Financial Instruments: Disclosures”:
Supplier Finance Arrangements (applicable for
annual periods beginning on or after 1 January
2026, but not yet endorsed in the EU);
• Amendments to IFRS 9 “Financial Instruments”
and IFRS 7 “Financial Instruments: Disclosures”:
Contracts
Referencing
Nature-dependent
Electricity
(applicable
for
annual
periods
beginning on or after 1 January 2026, but not yet
endorsed in the EU);
• Amendments to IFRS 1 “First-time Adoption of
International Financial Reporting Standards”,
IFRS 7 “Financial Instruments: Disclosures”, IFRS
9 “Financial Instruments”, IFRS 10 “Consolidated
Financial Statements” and IAS 7 “Statement
of Cash Flows”: Annual Improvements to IFRS
Accounting Standards - Volume 11 (applicable for
annual periods beginning on or after 1 January
2026, but not yet endorsed in the EU); and
• Amendments to IFRS 10 “Consolidated Financial
Statements” and IAS 28 “Investments 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 by IASB indefinitely but earlier
application permitted) – endorsement process
postponed indefinitely until the research project
on the equity method has been concluded.
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 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.
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IFRS-EU
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.
9 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., Crucea Power Park 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.
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IFRS-EU
(b) Information about reportable segments
Year Ended
31 December 2024
Electricity
and natural
gas supply
Electricity
distribution
Electricity
production
External electricity
network
maintenance
Total for
reportable
segments
Headquarter
Consolidation
eliminations
and
adjustments
Consolidated
total
External revenues
6,297,088
2,639,999
6,711
51,321
8,995,119
83
-
8,995,202
Inter-segment revenue
28,469
2,069,619
5,696
927
2,104,711
-
(2,104,711)
-
Segment revenue
6,325,557
4,709,618
12,407
52,248
11,099,830
83
(2,104,711)
8,995,202
Other income
1,566,933
180,771
-
22,228
1,769,932
1,117
(82,158)
1,688,891
Segment profit before tax
(389,353)
871,691
4,976
(14,623)
472,690
71,137
(57,064)
486,763
Net finance income/(cost)
(200,630)
(146,009)
-
3,663
(342,976)
127,879
(62,125)
(277,222)
Depreciation and amortization
(21,918)
(561,796)
(2,410)
(9,956)
(596,080)
(2,082)
-
(598,162)
Reversal of impairment of property, plant
and equipment and intangible assets, net
-
-
-
-
-
1,901
-
1,901
(Impairment)/ Reversal of impairment of
trade and other receivables, net
(87,962)
(13,844)
-
(158)
(101,964)
-
-
(101,964)
Adjusted EBITDA*
(166,805)
1,579,496
7,388
(8,330)
1,411,748
(56,561)
5,061
1,360,248
Segment net profit
(338,059)
723,752
4,976
(13,219)
377,449
69,158
(57,064)
389,543
Employee benefits
(124,187)
(882,445)
(41)
(35,649)
(1,042,322)
(35,240)
-
(1,077,562)
Capital expenditure
23,448
998,689
130,391
4,418
1,156,946
7,225
-
1,164,171
Segment assets
6,669,999
10,052,743
344,111
443,305
17,510,158
137,088
(3,707,845)
13,939,401
Trade and other receivables
3,945,640
1,733,709
2,703
73,994
5,756,046
6,680
(2,012,325)
3,750,401
Cash and cash equivalents
159,017
278,666
1,104
7,667
446,454
8,001
-
454,455
Trade and other payables and short-term
employee benefits
3,661,799
1,076,451
24,868
40,427
4,803,545
187,130
(2,061,843)
2,928,832
Bank overdrafts
2,007,818
164,580
-
-
2,172,398
318,211
-
2,490,609
Lease liability
6,290
7,355
25,923
557
40,125
1,665
-
41,790
Bank borrowings
49,537
2,104,762
-
-
2,154,299
236,042
-
2,390,341
* Adjusted EBITDA (Earnings before interest, tax, depreciation and amortisation or namely EBITDA) for operating segments is defined and calculated as segment profit/(loss) before tax of
a given operating segment adjusted for i) depreciation, amortization and impairment/reversal of impairment of property, plant and equipment and intangible assets in the operating
segment, ii) impairment of assets held for sale and iii) net finance income in the operating segment. EBITDA is not an IFRS Accounting Standards measure and should not be treated as
an alternative to IFRS Accounting Standards 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.
Year Ended
31 December 2023
Electricity
and natural
gas supply
Electricity
distribution
Electricity
production
Electricity network
maintenance
Total for
reportable
segments
Headquarter
Consolidation
eliminations
and
adjustments
Consolidated
total
External revenues
7,226,692
2,542,950
7,903
38,826
9,816,371
222
-
9,816,593
Inter-segment revenue
53,558
1,868,513
6,176
66,182
1,994,429
-
(1,994,429)
-
Segment revenue
7,280,250
4,411,463
14,079
105,008
11,810,800
222
(1,994,429)
9,816,593
Other income
3,391,201
154,982
-
22,210
3,568,393
1,220
(71,060)
3,498,553
Segment profit before tax
129,728
729,545
3,335
3,479
866,087
18,109
13,721
897,917
Net finance income/(cost)
(160,229)
(209,786)
(4,232)
12,554
(361,693)
67,898
-
(293,795)
Depreciation and amortization
(15,555)
(496,716)
(2,341)
(8,421)
(523,033)
(1,448)
-
(524,481)
Reversal of impairment of property, plant
and equipment and intangible assets, net
41
-
159
1,027
1,227
854
-
2,081
(Impairment)/ Reversal of impairment of
trade and other receivables, net
(67,338)
(9,212)
-
161
(76,389)
569
-
(75,820)
Adjusted EBITDA*
305,471
1,436,047
9,749
(1,681)
1,749,586
(49,195)
13,721
1,714,112
Segment net profit
98,403
637,759
2,151
826
739,139
23,995
8,969
772,103
Employee benefits
(104,688)
(794,524)
(264)
(32,301)
(931,777)
(30,288)
-
(962,065)
Capital expenditure
9,681
726,485
10,000
1,981
748,147
2,846
-
750,993
Segment assets
5,703,052
9,619,007
187,691
481,669
15,991,419
125,943
(3,345,465)
12,771,897
Trade and other receivables
2,662,875
1,784,184
8,999
109,668
4,565,726
3,055
(1,934,507)
2,634,274
Cash and cash equivalents
184,140
166,103
19,299
3,898
373,440
3,775
-
377,215
Trade and other payables and short-term
employee benefits
3,129,486
1,520,819
12,388
52,979
4,715,672
61,885
(1,913,286)
2,864,271
Bank overdrafts
1,869,706
774,529
-
-
2,644,235
206,986
-
2,851,221
Lease liability
6,813
21,180
12,068
994
41,055
2,140
-
43,195
Bank borrowings
200,000
900,874
-
-
1,100,874
216,768
-
1,317,642
* Adjusted EBITDA (Earnings before interest, tax, depreciation and amortisation or namely EBITDA) for operating segments is defined and calculated as segment profit/(loss) before tax of
a given operating segment adjusted for i) depreciation, amortization and impairment/reversal of impairment of property, plant and equipment and intangible assets in the operating
segment, ii) impairment of assets held for sale and iii) net finance income in the operating segment. EBITDA is not an IFRS Accounting Standards measure and should not be treated as
an alternative to IFRS Accounting Standards 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.
696
697
ELECTRICA 2024 ANNUAL REPORT
ELECTRICA 2024 ANNUAL REPORT
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 DECEMBER 2024
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 DECEMBER 2024
IFRS-EU
IFRS-EU
10 Revenue
2024
2023
Electricity distribution and supply, net
7,224,132
7,908,812
Green certificates sold
546,634
552,051
Supply of natural gas
155,188
191,339
Construction revenue related to concession agreements (Note 24)
998,686
1,018,912
Repairs, maintenance and other services rendered
64,851
74,077
Sales of merchandise
3,159
56,934
Re-connection fees
2,552
14,362
Consulting services
-
106
Total
8,995,202
9,816,593
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 2,477 thousand (2023: RON 2,921 thousand)
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).
11 Electricity, natural gas and merchandise purchased
2024
2023
Electricity purchased
5,897,289
8,238,811
Green certificates purchased
541,653
543,359
Cost of merchandise
2,801
54,551
Natural gas purchased
147,084
221,255
Total
6,588,827
9,057,976
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.
12 Other income and expenses
(a) Other income
2024
2023
Subsidies related to electricity supply and natural gas (Note 19)
1,532,193
3,306,839
Rental income
91,569
92,332
Late payment penalties from customers
28,948
38,647
Other
36,181
60,735
Total
1,688,891
3,498,553
Rental income refers mainly to the subsidies, following by rental of the electricity poles by the distribution
subsidiary to telecom operators. During 2024, the Group recognized subsidies on the supply segment
recognized subsidies of RON 1,532,193 thousand (2023: RON 3,306,839 thousand), 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 no.119/2022.
(b) Other operating expenses
2024
2023
IT services
69,815
51,151
Printing and distribution of invoices services
52,470
36,341
Other taxes and duties
51,430
51,549
Change in provisions, net
34,722
(12,536)
Meters reading expenses
31,719
29,831
Bank fees
31,438
26,635
Fines and penalties
28,758
15,976
Security services
28,303
26,517
Penalties to State budgets
26,265
14,482
Postage and telecommunication services
16,491
12,047
Cash collection services
13,534
13,148
Call centre services
12,660
12,461
Third party services in relation to maintenance works performed
10,387
13,584
Cleaning
9,339
7,590
Advertising and publicity expenses
7,092
14,654
Supply customers notifications
4,163
7,994
Other
61,393
109,975
Total
489,979
431,399
13 Net finance result
2024
2023
Interest income
12,112
3,270
Other finance income
510
155
Total finance income
12,622
3,425
Interest expense
(277,533)
(280,463)
Interest cost for employee benefits (Note 16)
(9,470)
(10,043)
Foreign exchange losses, net
(2,841)
(6,714)
Total finance costs
(289,844)
(297,220)
Net finance result
(277,222)
(293,795)
698
699
ELECTRICA 2024 ANNUAL REPORT
ELECTRICA 2024 ANNUAL REPORT
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 DECEMBER 2024
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 DECEMBER 2024
IFRS-EU
IFRS-EU
14 Earnings per share
The calculation of basic and diluted earnings per share has been based on the following profit attributable to
Company’s shareholders and weighted-average number of ordinary shares outstanding:
Profit attributable to shareholders
2024
2023
Profit for the year attributable to the owners of the Company
389,576
772,217
Profit attributable to shareholders of the Company
389,576
772,217
Weighted-average number of ordinary shares (in number of shares)
2024
2023
Issued ordinary shares at 1 January
339,553,004
339,553,004
Weighted-average number of ordinary shares at 31 December
339,553,004
339,553,004
Earnings per share
2024
2023
Basic and diluted earnings per share (RON)
1.15
2.27
15 Short-term employee benefits
31 December
2024
31 December
2023
Personnel payables
72,966
70,598
Current portion of defined benefit liability and other employee benefits
21,443
12,871
Social security charges
47,159
31,192
Tax on salaries
9,295
5,887
Total
150,863
120,548
For details of the related employee benefit expenses, see Note 17.
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.
16 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 2024 and 2023, employee benefit obligations were computed by an independent actuary using the projected
unit credit method with benefits calculated proportionally to the period of service.
31 December 2024
31 December 2023
Defined benefit liability
60,102
55,839
Other long-term employee benefits
124,038
108,923
Total
184,140
164,762
- Current portion*
21,443
13,404
- Non-current portion
162,697
151,358
* included in Personnel payables in Note 15
(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.
Defined benefit liability
2024
2023
Balance at 1 January
55,839
41,675
Included in profit or loss
Current service cost
6,373
4,904
Past service cost
-
-
Interest cost
3,238
3,278
Included in other comprehensive income
Remeasurements loss
- Actuarial loss
1,460
11,918
Other
Benefits paid
(6,808)
(5,936)
Balance at 31 December
60,102
55,839
Other long-term employee benefits
2024
2023
Balance at 1 January
108,924
87,761
Included in profit or loss
Current service cost
8,948
7,580
Past service cost
51
-
Actuarial loss
10,973
16,637
Interest cost
6,233
6,764
Other
Benefits paid
(11,091)
(9,818)
Balance at 31 December
124,038
108,924
700
701
ELECTRICA 2024 ANNUAL REPORT
ELECTRICA 2024 ANNUAL REPORT
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 DECEMBER 2024
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 DECEMBER 2024
IFRS-EU
IFRS-EU
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.
(ii) Actuarial assumptions
The following were the main actuarial assumptions at each reporting date:
(a) Macroeconomic assumptions:
• inflation. The actuary used information from the National Commission for Strategy and Prognosis:
Year
Valuation date
31 December 2024
Valuation date
31 December 2023
2023
-
10.4%
2024
4.9%
4.8%
2025
3.8%
3.5%
2026
2.9%
3%
2027
2.7%
2.5%
2028+
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 7.1% for the year 2024 (2023: 6%);
• taxes and social charges are those in force as at the reporting date.
(b) Group specific assumptions:
• For the year 2023 the salaries’ growth rates budgeted by the Group have been considered. Starting with
the year 2024, salaries’ growth is in line with the inflation rate;
• Employees’ turnover: based on historical data;
• Jubilee and retirement bonuses granted based on seniority as per the collective labour contracts, as
follows:
Jubilee bonus based on years of service in the Group
Seniority
No of gross monthly base salaries
31 December 2024
31 December 2023
20 years
1
1
25 years
1
-
30 years
2
2
35 years
3
3
40 years
4
4
45 years
5
5
Retirement bonus based on years of service in the Group
Seniority
No of gross monthly base salaries
31 December 2024
31 December 2023
Between 8 and 10 years
2
2
Between 10 and 25 years
3
3
More than 25 years
4
4
Termination benefits
(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:
Period of service
No of gross monthly base salaries
31 December 2024
31 December 2023
1 – 2 years
2
2
2 – 5 years
3
3
5 – 10 years
4
4
10 – 20 years
5
5
More than 20 years
8
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
No of gross monthly base salaries
31 December 2024
31 December 2023
1 – 3 years
3
3
3 – 5 years
6
6
5 – 10 years
7
7
10 – 20 years
11
11
More than 20 years
16
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.
702
703
ELECTRICA 2024 ANNUAL REPORT
ELECTRICA 2024 ANNUAL REPORT
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 DECEMBER 2024
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 DECEMBER 2024
IFRS-EU
IFRS-EU
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.
Increase by 1%
Decrease by 1%
2024
2023
2024
2023
Discount rate
(11,979)
(11,301)
13,384
12,675
Salary growth
14,000
13,195
(12,700)
(11,930)
Increase by 1 year
Decrease by 1 year
2024
2023
2024
2023
Retirement age
1,239
1,135
(1,239)
(1,135)
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.
17 Employee benefit expenses
2024
2023
Average number of employees
7,673
7,676
Number of employees at 31 December
7,794
7,945
2024
2023
Wages and salaries*
1,022,633
911,995
Social security contributions
30,636
27,163
Meal tickets
54,171
46,583
Termination benefits
326
1,015
Total employee benefits for the year
1,107,766
986,756
Capitalised employee benefit expenses
(30,204)
(24,691)
Total employee benefits in the statement of profit or loss
1,077,562
962,065
* Wages and salaries include also current service cost, defined benefits and other long-term employee benefits.
Management remuneration is disclosed in Note 32 b) Related parties.
18 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 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
2024
2023
Current tax expense
137,606
78,819
Deferred tax expense/(benefit)
(40,386)
46,995
Total expense related to income tax
97,220
125,814
(ii) Amounts recognised in other comprehensive income
2024
2023
Before tax
Tax benefit
Net of tax
Before tax
Tax
(expense)/
benefit
Net of tax
Revaluation of property, plant
and equipment
-
-
-
85,510
(13,699)
71,811
Remeasurement of defined
benefit liability
(1,460)
233
(1,227)
(11,918)
1,907
(10,011)
Total
(1,460)
233
(1,227)
73,592
(11,792)
61,800
(iii) Reconciliation of effective tax rate
2024
2023
Profit before tax
486,763
897,917
Tax using Company’s domestic tax rate
16%
77,882
16%
143,667
Non-deductible expenses
3%
16,579
2%
17,338
Non-taxable income
-2%
(10,638)
-3%
(25,426)
Deduction of legal reserves
-1%
(6,626)
0%
(3,165)
Other tax effects
5%
23,455
-1%
(5,622)
Current-year losses for which no deferred tax asset is recognised
-1%
(3,432)
0%
(978)
Income tax expense
20%
97,220
14%
125,814
704
705
ELECTRICA 2024 ANNUAL REPORT
ELECTRICA 2024 ANNUAL REPORT
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 DECEMBER 2024
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 DECEMBER 2024
IFRS-EU
IFRS-EU
(iv) Movement in deferred tax balances
Balance at 31 December 2024
2024
Net
balance
at 1
January
2024
Recognised
in profit or
loss
Recognised
in other
comprehensive
income
Other
movements
Net
Deferred
tax assets
Deferred
tax
liabilities
Property, plant and equipment
59,516
(3,012)
-
(5,097)
51,407
-
51,407
Intangible assets related to
concession agreements
229,694
12,957
-
-
242,651
-
242,651
Employee benefits
(27,244)
(2,961)
(233)
-
(30,438)
(30,438)
-
Impairment of trade
receivables
(25,560)
(4,490)
-
-
(30,050)
(30,050)
-
Tax loss carried forward
(4,356)
(15,197)
-
340
(19,213)
(19,213)
-
Capitalised network losses
(123,349)
2,494
-
-
(120,855)
(120,855)
-
Other items
(19,787)
(30,177)
-
-
(49,965)
(49,965)
-
Tax liabilities/(assets) before
set-off
88,914
(40,386)
(233)
(4,757)
43,538
(250,520)
294,058
Set off of tax
165,893
(165,893)
Net tax liabilities/(assets)
88,914
(40,386)
(233)
(4,757)
43,538
(84,627)
128,165
Balance at 31 December 2023
2023
Net balance
at 1 January
2023
Recognised
in profit or
loss
Recognised
in other
comprehensive
income
Net
Deferred tax
assets
Deferred
tax
liabilities
Property, plant and equipment
36,980
8,837
13,699
59,516
-
59,516
Intangible assets related to
concession agreements
208,015
21,679
-
229,694
-
229,694
Employee benefits
(21,101)
(4,236)
(1,907)
(27,244)
(27,244)
-
Impairment of trade receivables
(30,930)
5,370
-
(25,560)
(25,560)
-
Tax loss carried forward
(6,068)
1,712
-
(4,356)
(4,356)
-
Capitalised NL
(152,249)
28,900
-
(123,349)
(123,349)
-
Other items
(4,521)
(15,266)
-
(19,787)
(19,787)
-
Tax liabilities/(assets) before
set-off
30,126
46,995
11,792
88,914
(200,296)
289,210
Set off of tax
-
-
-
-
167,892
(167,892)
Net tax liabilities/(assets)
30,126
46,995
11,792
88,914
(32,404)
121,318
(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 generating it
can use the benefits therefrom.
2024
2023
Tax losses
292,998
318,176
(vi) Pillar 2 assessment
Taking into account the mandatory calculations prepared at jurisdictional level, Electrica SA together with
the other constituent entities, part of the Group, has carried out the analysis of the protection regimes for
the financial year 2024 based on the indicators included in the consolidated financial statements (these are
qualified financial statements from the perspective of Pillar 2 rules). The Group qualifies for the application of
the transitional CbCR protection regime because:
• the simplified effective tax rate (simplified ETR test) is higher (more specifically, 19.97%) than the applicable
benchmark rate for the financial year 2024, i.e. higher than 15%;
• SBIE in FY 2024 is RON 651 thousand which is higher than the pre-tax profit of RON 487 thousand.
In view of the above, the Group has not recorded an estimate of additional tax in the financial statements for
2024.
19 Trade receivables
31 December 2024
31 December 2023
Trade receivables, gross
4,412,930
3,180,660
- out of which accrued trade receivables
3,041,936
1,384,617
Bad debt allowance
(737,242)
(640,218)
Total trade receivables, net
3,675,688
2,540,442
Trade receivables from related parties are presented in Note 32.
Trade receivables, gross, comprise:
31 December 2024
31 December 2023
Electricity distribution and supply
3,711,027
2,603,238
Late payment penalties receivable
90,066
89,346
Customers with judicial execution titles
362,814
333,682
Repairs, maintenance and other services
15,308
20,904
Other
233,715
133,490
Total trade receivables, gross
4,412,930
3,180,660
706
707
ELECTRICA 2024 ANNUAL REPORT
ELECTRICA 2024 ANNUAL REPORT
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 DECEMBER 2024
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 DECEMBER 2024
IFRS-EU
IFRS-EU
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
As at 31 December 2024, the amounts estimated to be received from the Ministry of Energy for non-household
consumers are RON 10,130 thousand (31 December 2023: RON 10,130 thousand) and from the National Agency
for Payments and Social Inspection for household consumers are RON 11,672 thousand (31 December 2023:
RON 36,496 thousand). The receivables are booked under the caption “Electricity distribution and supply”.
Grants to be received
As at 31 December 2024, the estimated amount for subsidies to be received from the Ministry of Energy is RON
1,956,895 thousand (31 December 2023: RON 2,595,554 thousand) and from County Agency for Payments and
Social Inspection is RON 19,802 thousand (31 December 2023: RON 18,981 thousand). From the total amount
of subsidies to be received, RON 1,304,893 thousand (31 December 2023: RON 1,528,679 thousand) represent
uncollected claims submitted to the state authorities and RON 652,002 thousand (31 December 2023: RON
1,085,856 thousand) claims not yet submitted to the state authorities as at 31 December 2024 and 31 December
2023, respectively.
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. The receivables 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
2024
2023
Balance as at 1 January
640,218
652,689
Loss allowance recognized
196,905
111,271
Decrease in loss allowance
(94,533)
(35,198)
Amounts written off
(5,348)
(88,544)
Balance as at 31 December
737,242
640,218
The aging of trade receivables is presented in Note 30.
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.
In applying IFRS 9 as of 31 December 2024, 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
original recognition, thus recording a bad debt allowance in amount of RON 196,905 thousand (31 December
2023: RON 111,271 thousand).
20 Other receivables
31 December 2024
31 December 2023
VAT receivable
6,965
12,762
Receivables from EU funds
1,486
45,194
Other receivables
86,081
56,103
Lifetime expected credit losses
(19,819)
(20,227)
Total other receivables, net
74,713
93,832
Other receivables include mainly guarantees from energy suppliers and receivables to be recovered from
state authorities in respect to medical leave indemnities and heating aid and supplement.
The reconciliation between the opening balances and the closing balances of the impairment for other
receivables is as follows:
Loss allowance
2024
2023
Balance as at 1 January
20,227
20,480
Loss allowance recognized
119
-
Decrease in loss allowance
(527)
(253)
Balance as at 31 December
19,819
20,227
21 Cash and cash equivalents
31 December 2024
31 December 2023
Bank current accounts
330,064
223,213
Call deposits
123,865
153,997
Cash in hand
526
5
Total cash and cash equivalents in the consolidated statement of
financial position
454,455
377,215
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 325,838 thousand in 2024 (2023: RON 160,104 thousand).
708
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ELECTRICA 2024 ANNUAL REPORT
ELECTRICA 2024 ANNUAL REPORT
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 DECEMBER 2024
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 DECEMBER 2024
IFRS-EU
IFRS-EU
22 Inventories
As at 31 December 2024 and 31 December 2023, inventories are as follows:
31 December 2024
31 December 2023
Spare parts
28,162
35,057
Consumables and other materials
47,801
50,060
Natural gas
22,971
25,536
Other inventories
21,426
13,693
Allowance for impairment of inventories
(8,464)
(8,686)
Total inventories
111,896
115,660
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
conductors, sockets, switches which are used for the distribution network. Consumables and other materials
refer mainly to items such as conductors, sockets, switches which are used for the distribution network. Spare
parts refer to pillars, modems, separators, cells, auto parts, dischargers and batteries.
As at 31 December 2024, the remaining quantity of natural gas stored is of MWh 147,900 (31 December 2023:
MWh 143,870), amounting to RON 22,971 thousand (31 December 2023: RON 25,536 thousand).
23 Property, plant and equipment
The movements in property, plant and equipment in 2024 and 2023 are as follows:
Land and land
improvements
Buildings
Equipment
Vehicles,
furniture
and office
equipment
Construction
in progress
Total
Gross carrying amount
Balance at 1 January 2023
251,835
206,712
85,695
105,812
34,751
684,803
Additions
763
936
237
370
21,874
24,180
Transfer from construction in progress
-
124
1,862
110
-
2,096
Disposals
(576)
-
(5,236)
(1,308)
(1,271)
(8,391)
Effect of revaluation recognised in
other comprehensive income
46,999
38,511
-
-
-
85,510
Effect of revaluation recognised in
profit or loss
2,462
(381)
-
-
-
2,081
Decrease in gross value through
reversal of accumulated
depreciation
-
(23,907)
-
-
-
(23,907)
Balance at 31 December 2023
301,483
221,995
82,558
104,984
55,352
766,372
Additions
1,588
594
412
527
146,045
149,166
Transfer from construction in progress
-
627
4,365
95
(5,087)
-
Disposals
-
(1,904)
(55)
(158)
-
(2,117)
Acquisition of subsidiaries (Note 31)
-
-
-
-
10,872
10,872
Balance at 31 December 2024
303,071
221,312
87,280
105,448
207,182
924,293
(Continued on next page)
Land and land
improvements
Buildings
Equipment
Vehicles,
furniture
and office
equipment
Construction
in progress
Total
Accumulated depreciation and
impairment losses
Balance at 1 January 2023
-
21,495
46,119
95,096
19,096
185,413
Depreciation
-
7,450
6,499
2,442
-
16,391
Accumulated depreciation of
disposals
-
-
(5,375)
(1,635)
-
(7,010)
Impairment loss
-
(23,416)
-
-
-
(23,416)
Balance at 31 December 2023
-
5,529
47,243
95,903
19,096
171,378
Depreciation
-
7,377
6,749
3,987
-
18,113
Accumulated depreciation of
disposals
-
-
(116)
(102)
-
(218)
Reversal of impairment loss
-
(1,901)
-
-
-
(1,901)
Balance at 31 December 2024
-
11,005
53,876
99,788
19,096
187,372
Net carrying amounts
At 1 January 2023
251,835
185,217
39,576
10,716
15,653
499,390
At 31 December 2023
301,483
216,466
35,315
9,081
36,256
594,994
At 31 December 2024
303,071
210,307
33,404
5,660
188,086
736,921
Tangible assets include mainly land, buildings and equipment. Additions to construction in progress mainly
include investments in renewable power generation of RON 130,391 thousand.
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.
710
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ELECTRICA 2024 ANNUAL REPORT
ELECTRICA 2024 ANNUAL REPORT
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 DECEMBER 2024
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 DECEMBER 2024
IFRS-EU
IFRS-EU
The following table shows the valuation techniques used in measuring fair values (Level 3), as well as the
significant unobservable inputs used.
Category
Valuation technique
Significant
unobservable inputs
Inter-relationship
between key
unobservable
inputs and fair value
measurement
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.
The estimated fair
value would increase/
(decrease) if:
• Adjustment for
liquidity, location or
size would be lower/
(higher)
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;
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)
24 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:
Intangible assets
related to concession
agreements
Software and
licenses
Intangible
assets in
progress
Total
Gross book value
Balance at 1 January 2023
10,743,641
200,091
2,047
10,945,779
Additions
1,018,912
20,759
994
1,040,665
Transfers from intangible assets in
progress
-
680
(680)
-
Disposals
-
(11,106)
-
(11,106)
Balance at 31 December 2023
11,762,553
210,424
2,361
11,975,338
Additions
998,489
13,998
2,518
1,015,005
Transfers from intangible assets in
progress
-
3,512
(3,512)
-
Balance at 31 December 2024
12,761,042
227,934
1,367
12,990,343
Accumulated amortization and
impairment losses
Balance at 1 January 2023
5,067,777
189,282
-
5,257,060
Amortization
474,246
6,171
-
480,416
Accumulated amortization of disposals
-
(10,490)
-
(10,490)
Balance at 31 December 2023
5,542,023
184,963
-
5,726,986
Amortization
540,812
13,046
-
553,858
Balance at 31 December 2024
6,082,835
198,008
-
6,280,843
Net carrying amounts
At 1 January 2023
5,675,864
10,809
2,047
5,688,719
At 31 December 2023
6,220,530
25,461
2,361
6,248,352
At 31 December 2024
6,678,207
29,926
1,367
6,709,500
The Group applies IFRIC 12 for the accounting of the transactions under these concession contracts (see
further details in Notes 4, 7(d) and 7(l)).
For the year ended 31 December 2024, the Group has recognized construction revenue related to the
concession agreements of RON 998,489 thousand (2023: RON 1,018,912 thousand).
In 2024 the Group capitalised borrowing costs related to EBRD loans (see Note 29 (g) and (k)) in connection
with construction of networks, in amount of RON 34,015 th. (2023: 0), computed using a capitalisation rate of
3.77%.
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ELECTRICA 2024 ANNUAL REPORT
ELECTRICA 2024 ANNUAL REPORT
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 DECEMBER 2024
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 DECEMBER 2024
IFRS-EU
IFRS-EU
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
areas
Contract
date
Concession
period
(years)
Contract
expiry
date
Concession
period
remaining
(years)
Renewal
option
Net carrying
amount at
31 December
2024
Net carrying
amount at
31 December
2023
Muntenia Nord area
2005
49
2054
30
Yes
2,364,405
2,197,712
Transilvania Nord area
2005
49
2054
30
Yes
2,132,842
2,007,855
Transilvania Sud area
2005
49
2054
30
Yes
2,180,960
2,014,963
Total
6,678,207
6,220,530
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 2024
refers mainly to:
• Modernization of the current transformer points and stations, current underground and overhead power
lines in amount of RON 426,340 thousand (2023: RON 484,220 thousand);
• Investments related to improvements for electricity distribution network in amount of RON 66,240 thousand
(2023: RON 81,660 thousand).
• Significant construction works of new transformer stations, new underground and overhead power lines,
smart metering systems, etc., in amount of 2024: RON 189,060 thousand (2023: RON 144,980 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 99,530 thousand (2023: RON 24,880
thousand).
25 Capital and reserves
(a) Share capital and share premium
The issued share capital in nominal terms consists of 339,553,004 ordinary shares as at 31 December 2024
(31 December 2023: 346,443,597) with a nominal value of RON 10 per share. Starting with 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 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. All shares rank equally and confer equal rights to the
net assets of the Company’s.
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.
On 11 July 2024, Bucharest Trade Register Office approved the reduction of share capital of SE Electrica S.A.,
according to EGMS no. 1/25.04.2024. The share capital of SE Electrica SA reduced from RON 3,464,435,970 to
RON 3,395,530,040, and the number of shares reduced from 346,443,597 to 339,553,004.
(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 thousand.
On 19 July 2024, the Financial Supervisory Authority (ASF) issued the Certificate of Registration of Financial
Instruments (CIIF) no. AC-4023-3 / 19.07.2024, reflecting the share capital reduction corresponding to the
value of the treasury shares held since 2014.
(c) Revaluation reserve
The reconciliation between opening and closing balance of revaluation reserve is as follows:
2024
2023
Balance at 1 January
159,536
92,117
Revaluation reserve for tangible fixed assets
-
85,510
Deferred tax relating to the revaluation reserve
-
(13,699)
Release of revaluation reserve to retained earnings corresponding to
depreciation and disposals of property, plant and equipment
(9,268)
(4,392)
Balance as at 31 December
150,268
159,536
As at 31 December 2023, the Group has revalued its land, land improvements and buildings to fair value (see
Note 24).
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ELECTRICA 2024 ANNUAL REPORT
ELECTRICA 2024 ANNUAL REPORT
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 DECEMBER 2024
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 DECEMBER 2024
IFRS-EU
IFRS-EU
(d) Legal reserves
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 nominal share
capital of each company, according to the legislation. These reserves are deductible for income tax purposes
and are not distributable.
Legal reserves
Balance at 1 January 2023
429,583
Set-up of legal reserves
19,780
Balance at 31 December 2023
449,363
Set-up of legal reserves
41,470
Balance at 31 December 2024
490,833
(e) Dividends
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 2024 and 2023 (from the statutory profits of previous years) are
as follows:
Distribution of dividends
2024
2023
To the owners of the Company
39,999
39,999
Total
39,999
39,999
On 25 April 2024 the General Shareholders Meeting of the Company approved dividend distribution of RON
39,999 thousand (2023: RON 39,999 thousand). The dividend per share distributed is RON 0.1178 per share
(2023: RON 0.1178 per share).
Out of the dividends declared by the Company of RON 39,999 thousand (2023: RON 39,999 thousand), the
dividends paid were RON 39,894 thousand (2023: RON 39,894 thousand) the remaining difference represents
dividends uncollected by the shareholders.
26 Trade payables
31 December 2024
31 December 2023
Electricity suppliers
582,431
1,005,761
Capital expenditure suppliers
380,680
453,014
Other suppliers
183,302
212,703
Total
1,146,413
1,671,478
Electricity suppliers are mainly state-owned electricity producers, as detailed in Note 32, but also other
participants to the electricity market.
Other suppliers include suppliers of services, materials, consumables, etc.
27 Other payables
31 December 2024
31 December 2023
Current
Non-current
Current
Non-current
VAT payable
606,739
-
588,814
-
Liabilities towards the State
9,107
-
33,372
-
Other liabilities
970,018
45,692
412,898
37,161
Total
1,585,864
45,692
1,035,084
37,161
Other liabilities include mainly green certificates suppliers, 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
Tax related
Other
Total
Balance at 1 January 2024
1,084
40,083
41,167
Provisions recognized
-
44,816
44,816
Provisions utilised
-
-
-
Provisions reversed
-
(10,078)
(10,078)
Balance at 31 December 2024
1,084
74,821
75,905
As at 31 December 2024, provisions refer mainly to benefits upon the termination of executive directors’
mandate contracts in the form of a non-compete clause amounting to RON 1,477 thousand (31 December
2023: RON 710 thousand), customers compensation claims thousand 19,472 RON (31 December 2023: RON 3,733
thousand), a dispute with ANCOM in amount of RON 13,069 thousand (31 December 2023: 0) and for various
claims and litigations involving the Group companies in amount of RON 41,887 thousand (31 December 2023:
RON 40,457 thousand).
The most significant provisions recognized during the year are: a) for the distribution segment the amount of
RON 13,069 thousand for a dispute with ANCOM; and b) 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, provisions recognized in amount of RON 20,967 thousand with the corresponding
reversals of RON 2,238 thousand.
716
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ELECTRICA 2024 ANNUAL REPORT
ELECTRICA 2024 ANNUAL REPORT
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 DECEMBER 2024
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 DECEMBER 2024
IFRS-EU
IFRS-EU
29 Bank borrowings and overdrafts
Drawings and repayments of borrowings during the year ended 31 December 2024 were as follows:
Amount
(RON thousand)
Balance at 1 January 2024
1,317,642
Drawings of borrowings during the period, out of which:
EBRD (k)
42,857
CEC Bank (l)
174,464
BEI Instalment 1 (h)
596,892
BEI Instalment 2 (i)
447,669
Unicredit Bank (n)
24,881
ERSTE Group Bank and Raiffeisen Bank (m)
13,768
Vista Bank (j)
84,950
Exim Bank Romania (t)
250,000
Total drawings
1,635,481
Transfers from overdraft
BCR (p)
220,000
Raiffeisen Bank (q)
220,000
Total transfers from overdraft
440,000
Accumulated interest
27,252
Payment of interest
(11,125)
Reimbursements during the period, out of which:
BRD (c)
20,800
BRD (d)
14,286
BRD (e)
11,429
CEC Bank (l)
350,000
Banca Transilvania (a)
17,857
Unicredit Bank (b)
9,600
BCR (f)
18,950
BERD (g)
23,574
Vista Bank (j)
80,000
BCR (p)
38,824
Raiffeisen Bank (q)
16,923
Exim Bank Romania (t)
250,000
Exim Bank Romania (s)
166,667
Total reimbursements
1,018,909
Balance at 31 December 2024
2,390,341
As at 31 December 2024, respectively 31 December 2023, the bank borrowings is as follows:
Lender
Borrower
Balance at
31 December 2024
Balance at
31 December 2023
EIB Instalment 1 (h)
Distributie Energie Electrica Romania
604,814
-
EIB Instalment 2 (i)
Distributie Energie Electrica Romania
453,611
-
EBRD (k)
Distributie Energie Electrica Romania
225,985
182,773
Raiffeisen Bank (q)
Distributie Energie Electrica Romania
205,041
-
BCR (p)
Distributie Energie Electrica Romania
182,364
-
EBRD (g)
Distributie Energie Electrica Romania
165,747
189,971
Vista Bank (j)
Societatea Energetica Electrica S.A.
130,840
125,000
ERSTE Group Bank and Raiffeisen
Bank (m)
Societatea Energetica Electrica S.A.
105,202
91,768
BCR (f)
Distributie Energie Electrica Romania
71,475
90,542
BRD (d)
Distributie Energie Electrica Romania
50,037
64,286
Banca Transilvania (a)
Distributie Energie Electrica Romania
44,649
62,508
BRD (c)
Distributie Energie Electrica Romania
41,600
62,400
BRD (e)
Distributie Energie Electrica Romania
40,030
51,467
Unicredit Bank (n)
Electrica Furnizare S.A.
25,074
-
CEC Bank (l)
Electrica Furnizare S.A.
24,464
200,000
UniCredit Bank (b)
Distributie Energie Electrica Romania
19,409
29,103
Exim Bank Romania (s)
Distributie Energie Electrica Romania
-
167,825
Total
2,390,342
1,317,642
Less: current portion of the long-term bank borrowings
(538,583)
(512,169)
Less: accumulated interest
(27,252)
(11,125)
Total long-term borrowings, net of current portion
1,824,507
794,348
718
719
ELECTRICA 2024 ANNUAL REPORT
ELECTRICA 2024 ANNUAL REPORT
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 DECEMBER 2024
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 DECEMBER 2024
IFRS-EU
IFRS-EU
Bank Borrowings description
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;
Interest rate: fixed, 4.59% per annum; Reimbursements:
quarterly instalments until 17.07.2027; Grace period:
12 months.
As at 31 December 2024, the outstanding balance is of
RON 44,649 thousand, of which RON 44,643 thousand
principal and RON 6 thousand accrued interest.
(Outstanding balance as at 31 December 2023: RON
62,508 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 December 2024, the outstanding balance is of
RON 19,409 thousand, of which RON 19,200 thousand
principal and RON 209 thousand accrued interest.
(Outstanding balance as at 31 December 2023: RON
29,103 thousand).
c) Investment loan granted by BRD – Groupe Societe
Generale
On 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
distribution network, according to the investment
plan. Main provisions 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 2024, the outstanding balance is
of RON 41,600 thousand. (Outstanding balance as at
31 December 2023: RON 62,400 thousand).
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, 3.85% per
annum; Reimbursements: quarterly instalments until
2028; Grace period: 12 months.
As at 31 December 2024, the outstanding balance is of
RON 50,037 thousand, of which RON 50,000 thousand
principal and RON 37 thousand accrued interest.
(Outstanding balance as at 31 December 2023: RON
64,286 thousand).
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
financing investments in the electricity distribution
network, according to the approved investment plan
for 2020. Main provisions are: Maximum loan amount:
RON 80,000 thousand; Interest rate: fixed, 3.85% per
annum; Reimbursements: quarterly instalments until
2028; Grace period: 12 months.
As at 31 December 2024, the outstanding balance is
RON 40,030 thousand, of which RON 40,000 thousand
principal and RON 30 thousand accrued interest.
(Outstanding balance as at 31 December 2023: RON
51,467 thousand).
f) Investment loan granted by Banca Comerciala
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
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
155,000 thousand; Interest rate: ROBOR 3M+1% per
annum; Reimbursements: quarterly instalments until
2028; Grace period: 12 months.
As at 31 December 2024, the outstanding balance is
RON 71,475 thousand, of which RON 71,062 thousand
principal and RON 413 thousand accrued interest.
(Outstanding balance as at 31 December 2023: RON
90,542 thousand).
g) Investment loan granted by the European Bank
for Reconstruction and Development (“EBRD”)
On 2 July 2021, Societatea de Distributie Energie
Electrica Romania SA, as a borrower, concluded
with the European Bank for Reconstruction and
Development a credit agreement for investments
in order to finance investments in the electricity
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: ROBOR 6M + spread 0.30% + margin
1.15%;
Repayments:
17
semi-annual
instalments
until 31.07.2031; Grace period: 24 months. The loan
agreement is guaranteed by Electrica SA.
As at 31 December 2024, the outstanding balance is
RON 165,747 thousand, of which RON 160,700 thousand
principal and RON 5,047 thousand accrued interest.
(Outstanding balance as at 31 December 2023: RON
189,971 thousand).
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
purpose of financing investments in the electricity
distribution network according to the 2021-2023
investment plan. The main provisions are: Maximum
value of the loan: EUR 120,000 thousand; Interest rate:
3.73%; Repayments: 24 semi-annual instalments
until 26.02.2039; Grace period: 36 months. The loan
agreement is guaranteed by Electrica SA.
As at 31 December 2024, the outstanding balance
is RON 604,814 thousand, of which RON 596,892
thousand principal and RON 7,922 thousand accrued
interest (31 December 2023: 0).
i) Investment
loan
granted
by
the
European
investment Bank (“EIB”)
On 7 December 2021, Societatea de Distributie Energie
Electrica Romania SA, as a borrower, concluded
with the European Investment Bank an investment
credit contract, representing the second part of
the Approved Credit in the amount of EUR 210,000
thousand for the purpose of financing investments in
the electricity distribution network according to the
2021-2023 investment plan. The main provisions are:
Maximum value of the loan: EUR 90,000 thousand;
Interest rate: 3.73%; Repayments: 24 semi-annual
instalments until 26.02.2039; Grace period: 35 months.
The loan agreement is guaranteed by Electrica SA.
As at 31 December 2024, the outstanding balance is
RON 453,611 thousand, of which RON 447,669 thousand
principal and RON 5,942 thousand accrued interest
(31 December 2023: 0).
j) Line of Credit for working capital and for issuing
Bank Guarantee Letters granted by Vista Bank
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: 125,000 thousand RON;
On 28 June 2024, the value was increased with 5,000
thousand RON, up to the amount 130,000 thousand
RON. Interest rate: ROBOR 3M + 2.4% p.a. (2023: ROBOR
3M + 2.95%); full refund at maturity.
720
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ELECTRICA 2024 ANNUAL REPORT
ELECTRICA 2024 ANNUAL REPORT
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 DECEMBER 2024
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 DECEMBER 2024
IFRS-EU
IFRS-EU
On 31 December 2024, the balance of the loan is
130,840 thousand RON, of which RON 129,950 thousand
principal and RON 890 thousand accrued interest.
(Outstanding balance as at 31 December 2023: RON
125,000 thousand).
k) 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.
The main provisions are: The maximum value of the
loan RON 180,000 thousand; Interest rate: ROBOR 3M
+ spread % + margin 2.10%; Repayments: 14 quarterly
instalments until 31.01.2028; Grace period: 18 months.
On 19 December 2023, the value of the loan increased
by RON 60,000 thousand, to RON 240,000 thousand.
The loan agreement is guaranteed by Electrica SA.
As at 31 December 2024, the outstanding balance
is RON 225,985 thousand, of which RON 222,857
thousand principal and RON 3,128 thousand accrued
interest (31 December 2023: RON 182,775 thousand).
l) Multicredit facility for multiple financing by
accessing cash and non-cash products granted
by CEC BANK SA (“CEC”)
On 4 August 2023, Electrica Furnizare S.A., as the
borrower, concluded a Facility Agreement Multicredit.
The main provisions are: The maximum value of the
loan RON 150,000 thousand; Interest rate: ROBOR 3M
+ 2.85%; full repayment at maturity; Maturity date:
03 August 2026. On 18 December 2023 the amount
of the loan was increased by RON 50,000 thousand
to RON 200,000 thousand. The loan agreement is
guaranteed by Electrica SA.
As at 31 December 2024, the outstanding balance
is RON 24,464 thousand (31 December 2023: RON
200,000 thousand).
m) 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
thousand; Interest rate: ROBOR 3M + 1.16%; full
repayment at maturity. 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
thousand. On 20 August 2024 the bank issued two
comfort letters in total amount of RON 345,020
thousand, as follows: New Trend Energy SRL, RON
92,020 thousand and Foton Power Energy SRL, RON
253,000 thousand.
As at 31 December 2024 the balance of the loan is
RON 105,202 thousand, of which principal RON 104,918
thousand and accrued interest RON 284 thousand (31
December 2023: RON 91,768 thousand).
n) Investment loan granted by Unicredit Bank
On 26 April 2024, Electrica Furnizare S.A. signed
the credit contract no. GRIM/8714 with UniCredit
Bank SA, with SE Electrica SA as a guarantor, for an
investment loan in amount of RON 24,881 thousand,
due until 26.04.2029. Interest rate: ROBOR 3M + 3.15%.
Repayments: 17 quarterly instalments until 26.04.2029;
Grace period: 12 months.
As at 31 December 2024 the balance of the loan is
RON 25,074 thousand, of which principal RON 24,881
thousand and accrued interest RON 193 thousand.
o) Investment
loan
granted
by
the
European
Investment Bank (“EIB”)
On 8 May 2024, DEER concluded with the European
Investment Bank the investment credit contract no.
FI N°.98.007, with SE Electrica SA as a guarantor, for
an investment credit in the amount of EUR 15,000
thousand, due until 14.07.2039. Interest rate: 3.7%.
As at 31 December 2024 the balance of the loan is 0.
p) Loan
for
financing
the
own
technological
consumption expenses granted by BCR – Banca
Comerciala Romana (“BCR”)
On 25 January 2022, DEER signed the credit contract
no. 2022012502 with BCR in the amount of RON 220,000
thousand. On 26 June 2024, the loan amount was
increased by RON 150,000 thousand to the amount
of RON 370,000 thousand, and the overdraft facility
of RON 220,000 thousand was transformed into a
long-term borrowing to cover the own technological
consumption. The availability of the facility was
extended to 30.04.2028; interest rate: ROBOR 3M
+ 1.3%; Repayments: 17 quarterly instalments until
30.04.2028.
As at 31 December 2024 the balance of the loan is
RON 182,364 thousand, of which principal RON 181,176
thousand and accrued interest RON 1,188 thousand.
q) Loan
for
financing
the
own
technological
consumption expenses granted by Raiffeisen
Bank SA
On 26 May 2022, DEER signed the credit contract
no. 20/2022 with Raiffeisen in the amount of RON
220,000 thousand. On 26 June 2024, the amount of
the loan was increased by RON 100,000 thousand
to the amount of RON 320,000 thousand, and the
overdraft facility of RON 220,000 thousand was
transformed into a long-term borrowing to cover
the own technological consumption. The availability
of the facility was extended to 31.12.2027; interest
rate: ROBOR 1M + 1.50%; Repayments: 13 quarterly
instalments until 31.12.2027.
As at 31 December 2024 the balance of the loan is
RON 205,041 thousand, of which principal RON 203,077
thousand and accrued interest RON 1.964 thousand.
r) Investment
loan
granted
by
the
European
Investment Bank (“EIB”)
On 16 December 2024, DEER concluded with the
European Investment Bank the investment credit
contract no. FI N°.97.868, with SE Electrica SA as a
guarantor, for an investment credit in the amount of
EUR 200,000 thousand, due until 16.12.2039. Interest
rate:3.6%.
As at 31 December 2024 the balance of the loan is 0.
s) 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.
The loan was fully repaid in 2024 (31 December 2023:
RON 167,825 thousand).
t) Loan for financing current activity granted by
Eximbank Romania
On 21 December 2023, Distributie Energie Electrica
Romania S.A., as a borrower, concluded with
Eximbank Romania a credit agreement for a period
of 36 months. The main provisions are: Maximum
loan amount: 250,000 thousand RON; Interest rate:
ROBOR 3M +1.65 % p.a.; Repayments: 36 equal monthly
instalments; Grace period: 12 months.
As at 31 December 2023 the outstanding amount was
0. The loan was fully drawn and subsequently repaid
during 2024.
722
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ELECTRICA 2024 ANNUAL REPORT
ELECTRICA 2024 ANNUAL REPORT
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 DECEMBER 2024
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 DECEMBER 2024
IFRS-EU
IFRS-EU
Overdrafts
Until the authorization for issue of these Consolidated Financial Statements by the Board of Directors, 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 3,219,057 thousand (total overdraft limit as at 31 December 2023: RON
2,963,947 thousand).
The overdraft facilities are used for financing activities. The outstanding balance of the overdraft facilities as
at 31 December 2024 is of RON 2,490,609 thousand (31 December 2023: RON 2,851,221 thousand).
Lender (overdrafts)
Borrower
Balance at 31
December 2024
Balance at 31
December 2023
Alpha Bank
Electrica Furnizare S.A.
394,552
213,702
Raiffeisen Bank
Electrica Furnizare S.A.
380,829
369,274
BCR
Electrica Furnizare S.A.
325,016
378,887
UniCredit Bank
Electrica Furnizare S.A.
301,599
302,399
BRD
Electrica Furnizare S.A.
212,082
218,817
Banca Transilvania
Electrica Furnizare S.A.
182,233
187,194
ING Bank N.V
Electrica Furnizare S.A.
169,589
170,602
ING Bank N.V
Societatea Energetica Electrica S.A.
168,704
206,986
BRD
Societatea Energetica Electrica S.A.
149,508
-
Intesa Sanpaolo
Distributie Energie Electrica Romania S.A
135,655
135,815
Raiffeisen Bank
Distributie Energie Electrica Romania S.A
28,923
218,895
BNP Paribas
Electrica Furnizare S.A.
24,919
28,830
Vista Bank
Electrica Furnizare S.A.
17,000
-
BCR
Distributie Energie Electrica Romania S.A
-
210,593
Banca Transilvania
Distributie Energie Electrica Romania S.A
-
159,544
ING Bank N.V
Distributie Energie Electrica Romania S.A
-
49,682
Total overdrafts
2,490,609
2,851,221
Financial Covenants
The financial covenants specified in the agreements with BRD – Groupe Societe Generale, Unicredit Bank,
Banca Comerciala Romana (BCR), European Bank for Reconstruction and Development, European Investment
Bank, Intesa Sanpaolo, ERSTE Group Bank and Raiffeisen Bank, ING Bank N.V. and CEC Bank have been fulfilled
as at 31 December 2024.
Pledged Assets
As at 31 December 2024, for several overdrafts the Group has pledges (guarantees) for trade receivables
amounts in amount of RON 423,114 thousand (31 December 2023: RON 422,928 thousand), 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 3,415,425 thousand, of which non-cash uses RON 1,009,655 thousand.
30 Financial instruments - fair values and risk management
(a) Accounting classifications and fair values
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.
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.
Trade receivables
The Group’s credit risk in respect of receivables was concentrated in the past around state-controlled
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 rates.
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ELECTRICA 2024 ANNUAL REPORT
ELECTRICA 2024 ANNUAL REPORT
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 DECEMBER 2024
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 DECEMBER 2024
IFRS-EU
IFRS-EU
Impairment
The following table provides information about the exposure to credit risk and expected credit losses for trade
receivables for customers as at 31 December 2024:
31 December 2024
Expected
credit loss
rates (“ECL”)
Gross value
Lifetime ECL
Net trade
receivables
Credit
impaired
Neither past due nor impaired
3.18%
3,426,012
(108,808)
3,317,204
No
Past due 1-30 days
9.65%
136,458
(13,170)
123,288
No
Past due 31-60 days
19.16%
89,057
(17,063)
71,994
No
Past due 61-90 days
41.56%
24,235
(10,072)
14,163
No
Past due more than 90 days
79.78%
737,168
(588,129)
149,039
Yes
Total
4,412,930
(737,242)
3,675,688
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.
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:
31 December 2023
Expected
credit loss
rates (“ECL”)
Gross value
Lifetime ECL
Net trade
receivables
Credit
impaired
Neither past due nor impaired
2%
2,229,339
(35,330)
2,194,009
No
Past due 1-30 days
7%
255,100
(16,875)
238,225
No
Past due 31-60 days
14%
47,635
(6,670)
40,965
No
Past due 61-90 days
37%
25,927
(9,640)
16,287
No
Past due more than 90 days
92%
622,659
(571,703)
50,956
Yes
Total
3,180,660
(640,218)
2,540,442
Details of the main movements in the allowances for doubtful debts are disclosed in Note 19.
(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 relies
on overdrafts for working capital needs (refer to Note 29).
Exposure to liquidity risk
The following are the remaining contractual maturities of financial liabilities at the reporting date. The
amounts are gross and undiscounted.
Carrying
amount
Contractual cash flows
Financial liabilities
Total
less than 1
year
1-2 years
2-5 years
More than 5
years
31 December 2024
Bank overdrafts
2,490,609
2,490,609
2,490,609
-
-
-
Lease liability
41,790
41,790
7,411
3,543
3,396
27,440
Long-term bank borrowings
2,390,341
2,390,341
565,835
332,954
618,694
872,858
Trade payables
1,146,413
1,146,413
1,146,413
-
-
-
Other payables
12,229
12,229
-
-
12,229
-
Total
6,081,382
6,081,382
4,210,268
336,497
634,319
900,298
31 December 2023
Bank overdrafts
2,851,221
2,851,221
2,851,221
-
-
-
Lease liability
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
1,671,478
1,671,478
1,671,478
-
-
-
Total
5,883,536
5,883,536
5,060,045
268,843
479,885
74,763
(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 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.
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 DECEMBER 2024
IFRS-EU
IFRS-EU
Exposure to currency risk
The summary of quantitative data about the Group’s exposure to currency risk is as follows:
31 December 2024
31 December 2023
in thousands of RON
denominated in EUR
denominated in EUR
Cash and cash equivalents
1,763
347
Bank overdrafts
(399,795)
(306,417)
Lease liability
(40,167)
(42,231)
Long-term bank borrowings
(1,058,425)
-
Net statement of financial position exposure
(1,496,624)
(348,301)
The following significant exchange rates have been applied during the year:
Average rate
Year-end spot rate
RON
2024
2023
2024
2023
EUR 1
4.9752
4.9465
4.9741
4.9746
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.
Profit before tax
Effect
Strengthening
Weakening
31 December 2024
EUR (5% movement)
(74,831)
74,831
31 December 2023
EUR (5% movement)
(17,415)
17,415
Interest rate risk
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.
Exposure to interest rate risk
The interest rate profile of the Group’s interest-bearing financial instruments is as follows:
31 December 2024
31 December 2023
Fixed-rate instruments
Financial assets
Call deposits
123,865
153,997
Financial liabilities
Long-term bank borrowings
(1,267,256)
(1,068,912)
Lease liability
(32,312)
(32,312)
(1,175,703)
(947,227)
Variable-rate instruments
31 December 2024
31 December 2023
Financial liabilities
Lease liability
(9,478)
(10,883)
Long-term bank borrowings
(1,123,085)
(248,730)
Bank overdrafts
(2,490,609)
(2,851,221)
(3,623,172)
(3,110,834)
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.
Profit before tax
50 bp increase
50 bp decrease
31 December 2024
Variable-rate instruments
(18,116)
18,116
31 December 2023
Variable-rate instruments
(15,554)
15,554
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IFRS-EU
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31 Acquisition of subsidiary
As at 31 December 2023 the Group held 40% of Crucea Power Park S.R.L., based on SPA signed in 28 July 2021.
The entity was accounted for using the equity method as at 31 December 2023 in these consolidated financial
statements as provided in the Group’s accounting policies in Note 8.
On 15 October 2024, the Group acquired an additional 20% of the shares and voting interests in Crucea Power
Park S.R.L., owning 60% of the shares and voting interests. Therefore, the Group obtained control over the
investee starting 15 October 2024.
Taking control of Crucea Power Park S.R.L. will enable the Group to develop its portfolio of renewable power
generation capacities.
A. Consideration transferred
The consideration transferred for the shares acquired was as follows:
Cash
8,451
Consideration transferred
8,451
B. Identifiable assets acquired and liabilities assumed
The following table summarises the recognised amounts of assets acquired and liabilities assumed at the
date of acquisition:
Property, plant and equipment
10,872
Trade and other receivables
1,282
Cash and cash equivalents
8
Total assets
12,162
Trade and other payables
(58)
Other non-current liabilities
(12,167)
Total liabilities
(12,225)
Net liabilities
(63)
C. Goodwill
Goodwill arising from the acquisition has been recognised as follows:
Consideration transferred
8,451
NCI, based on their proportionate interest in the recognised amounts of the
assets and liabilities
(25)
Fair value of pre-existing interest in Crucea Power Park S.R.L.
16,615
Fair value of identifiable net liabilities
63
Goodwill
25,104
The goodwill is attributable mainly to the know-how of the projects and the synergies expected to be achieved
from integrating the companies into the Group’s existing business. The management has concluded by
assessing internal and external sources, that there is no indication that the goodwill may be impaired. None
of the goodwill recognized is expected to be deductible for tax purposes.
The Group completed the full acquisition of Crucea Power Park S.R.L. on 7 February 2025, with a payment of
RON 4,675 thousand.
32 Related parties
(a) Main shareholders
As at 31 December 2024 and 31 December 2023, 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
2024
2023
Executive Management compensation
36,257
36,623
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:
2024
2023
Members of Board of Directors
4,223
4,151
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 2024 and 2023.
730
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IFRS-EU
IFRS-EU
(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:
Purchases (without VAT)
Balance (including VAT)
Supplier
2024
2023
31 December 2024
31 December 2023
OPCOM
3,259,654
2,879,757
120,209
212,746
Transelectrica
1,283,721
671,172
226,413
170,242
Nuclearelectrica
246,348
799,117
34,552
107,671
Hidroelectrica
163,921
44,631
5,925
37
Complexul Energetic Oltenia
35,243
1,107,474
-
132,693
SNGN Romgaz SA
42,121
52,689
5,086
9,081
Electrocentrale Bucuresti
21,075
-
-
-
ANRE
14,170
16,763
-
12
Transgaz
10,077
7,638
1,856
1,850
Others
1,122
5,945
2,504
1,513
Total
5,077,452
5,585,186
396,545
635,845
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:
Sales
(excluding VAT)
Balance, gross
(including VAT)
Allowance
(including VAT)
Balance, net
Client
2024
31 December 2024
OPCOM
41,543
3,571
-
3,571
Transelectrica
304,153
45,047
-
45,047
CNAIR
25,612
8,555
-
8,555
C.N.C.F CFR S.A.
74,650
3,586
68
3,518
Hidroelectrica
266,237
65,447
-
65,444
CFR Telecomunicatii
2,694
47
-
47
CFR Electrificare
15,967
1,475
-
1,475
CN Remin SA
238
71,242
71,209
33
C.N.C.A.F MINVEST SA
-
26,802
26,802
-
Oltchim
-
115,426
115,426
-
CET Braila
-
3,379
3,379
-
Termoelectrica
-
1,206
1,206
-
County Agency for Payments and
Social Inspection
20,048
19,802
-
19,802
Ministry of Energy/ National
Agency for Payments and Social
Inspection(*)
1,512,145
1,978,697
-
1,978,697
Others
132,192
15,986
534
15,454
Total
2,395,480
2,360,269
218,622
2,141,647
(*) In the year ended 31 December 2024, Electrica Furnizare S.A. recognised subsidies amounting to RON 1,532,193 thousand (2023: RON
3,306,839 thousand), to be received from the Ministry of Energy/National Agency for Payments and Social Inspection/ County 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.
Sales
(excluding VAT)
Balance, gross
(including VAT)
Allowance
(including VAT)
Balance, net
Client
2023
31 December 2023
OPCOM
37,429
2,174
-
2,174
Transelectrica
157,861
44,220
-
44,220
C.N.C.F CFR S.A.
114,009
33,841
5
33,836
SNGN Romgaz SA
32,762
-
-
-
Hidroelectrica
288,923
32,882
-
32,882
CN Romarm
25,158
4,279
-
4,279
CFR Electrificare
19,043
2,347
-
2,347
Transgaz
1,684
544
-
544
CN Remin SA
923
71,347
71,216
131
C.N.C.A.F MINVEST SA
-
26,802
26,802
-
Oltchim
-
115,426
115,426
-
CET Braila
14
3,378
3,361
17
Termoelectrica
-
1,206
1,206
-
County Agency for Payments and
Social Inspection
18,981
18,981
-
18,981
Ministry of Energy/ National Agency
for Payments and Social Inspection
3,287,858
2,605,684
-
2,605,684
Others
211,691
9,173
364
8,809
Total
4,196,336
3,008,780
218,380
2,790,400
33 Contingencies
Contingent liabilities
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 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 that the tax
authorities might have different positions.
Tax inspection report for DEER
DEER 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
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IFRS-EU
IFRS-EU
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 18 August 2025, 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, ANAF, 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 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).
34 Commitments
(a) Contractual commitments
Contractual commitments as at 31 December 2024 and 31 December 2023 are as follows:
31 December 2024
31 December 2023
Purchase of electricity
3,114,043
707,797
Purchase of green certificates
172,555
172,979
Purchase of property, plant and equipment and intangible assets
744,969
626,617
Purchase of investments
14,998
45,122
Total
4,046,565
1,552,515
(b) Investment program
The investment program at Group level approved for the year 2025 is as follows:
2025
Distribution activity
970,800
Supply activity
47,258
Maintenance activity
24,729
Production activity
510,768
Other
16,775
Total
1,570,330
The capital expenditures actually incurred may differ from the ones planned.
(c) Guarantees and pledges
At 31 December 2024, the Group has guarantees on its bank accounts opened at ING Bank N.V., Raiffeisen Bank,
Banca Comerciala Romana, Banca Transilvania, Intesa Sanpaolo Bank, Alpha Bank, Vista Bank, Vista Leasing
and BRD – Group Societe Generale 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, Banca Comerciala Romana, CEC Bank and Raiffeisen Bank for the long-term borrowings contracted
(please see Note 29).
At 31 December 2024, the Group has outstanding bank letters of guarantee of RON 1,009,655 thousand (31
December 2023: RON 1,193,823 thousand) issued in favour of its suppliers.
(d) Audit fees
The audit fees for the consolidated financial statements were in amount of 1,155 thousand RON, and during
the year 2024, non-audit services fees were in amount of 325 thousand RON (limited review of the interim
consolidated financial statements) and 512 thousand RON were the audited sustainability statement. The
audit fees for the individual financial statements are mentioned in the annual individual financial statements
of Electrica S.A.
35 Subsequent events
Acquisition in subsidiaries:
On 7 February 2025, Electrica SA has completed the acquisition of the project company Crucea Power Park
SRL (CPP) having as main object of activity the generation of energy from wind sources (ELSA has 100% of
shares). CPP develops the eolian project company “Crucea Est”, with an authorized installed capacity of
138 MW, and a projected electricity storage capacity of 60 MWh (15 MWx4h), located outside the Crucea
commune, Constanta County. The project is at the “ready-to-build” phase.
During the Extraordinary General Meeting of Shareholders (EGMS) on 5 February 2025, the shareholders
approved the investment project to be carried out by CPP, with a total investment value of up to thousand
253,000 EUR, excluding VAT, as well as the granting of a loan by Electrica S.A. to CPP to finance the investment
works necessary for the completion and operation of the “Crucea Est” wind power plant.
734
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IFRS-EU
IFRS-EU
Subsidies:
According to GEO no. 6/2025 the period of application of the support scheme (of the capping type) is 3
months for electricity from 1 April 2025 to 30 June 2025 and one year for natural gas from 1 April 2025 to 31
March 2026.
Chief Executive Officer
Alexandru-Aurelian Chirita
Chief Financial Officer
Stefan Alexandru Frangulea
27 March 2025
736
737
RAPORT ANUAL ELECTRiCA 2024
RAPORT ANUAL ELECTRiCA 2024
INDEPENDENT AUDITOR’S REPORT
ON THE AUDIT OF THE CONSOLIDATED
FINANCIAL STATEMENTS
(IFRS-EU)
Deloitte Audit S.R.L.
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Bucharest, Romania
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1
206791ED2393D95CCBAD2816722DF05D
INDEPENDENT AUDITOR’S REPORT
To the Shareholders of
SOCIETATEA ENERGETICA ELECTRICA S.A.
Report on the Audit of the Consolidated Financial Statements
Qualified 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, 2024, 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 a material accounting policy
information.
2.
The consolidated financial statements as at December 31, 2024 are identified as follows:
•
Net assets / Equity
RON 5,700,953 thousand
•
Net profit for the financial year
RON
389,543 thousand
3.
In our opinion, except for the possible effects of the matter described in the “Basis for Qualified Opinion” section of our
report, paragraph 4, the accompanying consolidated financial statements present fairly, in all material respects, the
consolidated financial position of the Group as at December 31, 2024, its consolidated financial performance and its
consolidated cash flows for the year then ended in accordance with International Financial Reporting Standards (“IFRS
Accounting Standards”) as adopted by the European Union, with subsequent amendments.
Basis for Qualified Opinion
4.
As at December 31, 2024, Group’s trade receivables of RON 3,675,688 thousand include an amount of RON 979,503 thousand
representing trade receivables accruals for which we have not received sufficient and appropriate audit evidence. We were
unable to satisfy ourselves concerning these trade receivables accruals by means of other auditing procedures. As a result of
these matters, we were unable to determine whether any adjustments might have been found necessary in respect of the
aforementioned trade receivables accruals and the elements making up the statement of consolidated comprehensive
income, consolidated statement of changes in equity and consolidated statement of cash flows.
5.
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 Group 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 qualified opinion.
Emphasis of Matter
6.
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 Public Finance Order no. 2844/2016
with subsequent amendments, and one under IFRS Accounting Standards. These consolidated financial statements are
prepared under IFRS Accounting Standards, which differs from Ministry of Public Finance Order no. 2844/2016 with
subsequent amendments, as summarized in Note 2. Consequently these consolidated financial statements do not comply
with Ministry of Public Finance Order no. 2844/2016 with subsequent amendments. Our audit report is not modified in
respect of this matter.
2
Key Audit Matters
7.
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.
In addition to the matter described in the “Basis for Qualified Opinion” section we have determined the matters described
below to be the key audit matters to be communicated in our report
Key audit matters
How our audit addressed the key audit matter
Going Concern
As presented in Note 7 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 extend the existing 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 and on stabilizing of the regulatory regime on energy
prices as described in note 7 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.
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 debt facilities in course of
negotiation, during 2025 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;
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.
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.
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INDEPENDENT AUDITOR’S REPORT ON THE AUDIT OF THE CONSOLIDATED FINANCIAL STATEMENTS (IFRS-EU)
INDEPENDENT AUDITOR’S REPORT ON THE AUDIT OF THE CONSOLIDATED FINANCIAL STATEMENTS (IFRS-EU)
3
Other Information
8.
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 financial statements and our
auditor’s report thereon.
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 financial statements for the year ended 31 December 2024, 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 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 31 December 2024, we are required to report if we have identified a material
misstatement of this Administrators’ consolidated report. Except for the possible effects of the matter presented in the “Basis
for Qualified Opinion” section of our report, we do not have anything else to report.
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
9.
Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance
with International Financial Reporting Standards (“IFRS Accounting Standards”) as adopted by the European Union 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.
10.
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.
11.
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
12.
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.
4
13.
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.
•
Plan and perform the group audit to obtain sufficient appropriate audit evidence regarding the financial information of
the entities or business units within the Group as a basis for forming an opinion on the group financial statements. We
are responsible for the direction, supervision and review of the audit work performed for purposes of the group audit.
We remain solely responsible for our audit opinion.
14.
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.
15.
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.
16.
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
17.
We have been appointed by the General Assembly of Shareholders April 27, 2023 to audit the consolidated financial
statements of SOCIETATEA ENERGETICA ELECTRICA S.A. for the financial year ended December 31, 2024. The uninterrupted
total duration of our commitment is 7 years, covering the financial years ended December 31, 2018 to December 31, 2024.
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 and 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.
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INDEPENDENT AUDITOR’S REPORT ON THE AUDIT OF THE CONSOLIDATED FINANCIAL STATEMENTS (IFRS-EU)
INDEPENDENT AUDITOR’S REPORT ON THE AUDIT OF THE CONSOLIDATED FINANCIAL STATEMENTS (IFRS-EU)
5
Report on Other Legal and Regulatory Requirements – Report on the Information Regarding Income Tax
18.
For the financial year preceding the financial year for which the financial statements were prepared, the Group was not
required under Ministry of Public Finance Order no. 2844/2016 with subsequent amendments, articles 602 - 606, to publish a
report on income tax information.
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”)
19.
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 ABC
(“the Company”) as presented in the digital files which contain the unique LEI code 213800P4SUNUM5AUDX61 (“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 International Financial Reporting Standards (“IFRS Accounting Standards”) as adopted by the European Union.
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.
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 Group’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
Group to be submitted in accordance with International Financial Reporting Standards (“IFRS Accounting Standards”) as
adopted by the European Union;
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.
6
In our opinion, the consolidated financial statements for the year ended 31 December 2024 included in the annual financial report
in the Digital Files comply in all materials respects with the requirements of ESEF.
In this section, we do not express an audit opinion, review conclusion or any other assurance conclusion on the consolidated
financial statements. Our qualified opinion relating to the consolidated financial statements of the Company for the year ended
31 December 2024 is set out in the “Report on the audit of the consolidated financial statements” section above.
Răzvan Ungureanu, Audit Partner
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
10 April 2025
For signature, please refer to the original signed
Romanian version.
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INDEPENDENT AUDITOR’S REPORT ON THE AUDIT OF THE CONSOLIDATED FINANCIAL STATEMENTS (IFRS-EU)
INDEPENDENT AUDITOR’S REPORT ON THE AUDIT OF THE CONSOLIDATED FINANCIAL STATEMENTS (IFRS-EU)
CLARIFICATIONS REGARDING THE
QUALIFIED OPINION EXPRESSED BY
THE FINANCIAL AUDITOR ON THE
CONSOLIDATED FINANCIAL STATEMENTS
FOR 2024
Electrica provides clarifications regarding the qualified opinion
expressed by the financial auditor on the consolidated
financial statements for 2024
The Electrica Group wishes to bring a series of clarifications in relation to the qualified opinion formulated by
the financial auditor, Deloitte Audit SRL, on the Consolidated Financial Statements as of and for the financial
year ended December 31, 2024.
The reservation expressed by the auditor refers to the impossibility of testing, until the date of publication
of the financial statements, an amount of RON 979.5 million – representing commercial receivables still
uninvoiced related to the electricity supply segment. This amount corresponds to approximately 430 GWh
of electricity delivered to end customers and mapped 97% on consumption points, being in an advanced
validation process and to be invoiced by April 30, 2025 at the latest.
The high value of unbilled receivables, respectively RON 2.85 billion as of December 31, 2024, was majorly
influenced by the legislative changes generated by the application of GEO no. 312/2024, which imposed the
reversal and reissue of invoices issued with the tariff related to the contribution to the Contracts for Difference
(CfD). This context required complex technical adaptations in the company’s IT systems and generated
temporary delays in the invoicing process.
At the same time, the cumulative impact of successive legislative changes – starting with GEO no. 118/2021
and continuing with numerous subsequent normative acts – imposed recurring adjustments in the customer
management information system, a process that affected the normal rhythm of invoicing. Under these
conditions, Electrica Furnizare has prioritized the correct implementation of the legal provisions and the
issuance of compliant invoices to customers.
Another element that influenced the process of closing the financial statements was the cyber attack suffered
by the Electrica Group on December 9, 2024. Although the critical infrastructure was not affected, the security
measures implemented and the revalidation of the computing models required additional resources and
time.
We specify that, of the total volume of electricity recorded on account of unbilled receivables (2.2 TWh),
more than half had already been invoiced by the date of publication of the financial statements. Also, the
company does not face collection difficulties or a significant level of non-performing receivables, which offers
a favorable perspective regarding the collection of outstanding amounts during 2025.
From the moment of the start of the support scheme in November 2021 until now, Electrica Furnizare has
received subsidies from the Ministry of Energy and ANPIS in the amount of RON 5.7 billion out of the total of RON
6.8 billion applications submitted to ANRE.
The Electrica Group assures all its investors, financiers and partners that it carries out with priority all the
necessary actions for the completion of the invoicing process, the recovery of receivables and the complete
testing of the related amounts, in view of the issuance of the letter of representation by Deloitte Audit SRL,
included in the documentation related to the future issue of Eurobonds.
CEO
Alexandru Aurelian Chirita
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MANAGEMENT STATEMENT
Based on the best available information, we confirm that the consolidated financial statements
reviewed and audited for the period ended 31 December 2024 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 2024, 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 2024 prepared in accordance with OMFP
nr. 2844/2016 for the approval of accounting regulations compliant with the International Financial
Reporting Standards (IFRS) adopted by the European Union, 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 2024, comprises
accurate and real information regarding the Group’s development and performance.
Management Statement
Chair of the Board of Directors,
Chief Executive Officer,
Chief Financial Officer,
Mihai DIACONU
Alexandru-Aurelian CHIRITA
Stefan Alexandru FRANGULEA
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MANAGEMENT STATEMENT
MANAGEMENT STATEMENT