Estimated impact of DEER case no. 375/1285/2021

Societatea Energetica Electrica SA

02 May 2024

 

To:                              Bucharest Stock Exchange (BSE)

                                    London Stock Exchange (LSE)

Romanian Financial Supervisory Authority (FSA)

Current report in compliance with the Law 24/2017 on issuers of financial instruments and market operations, FSA Regulation no. 5/2018, and the Bucharest Stock Exchange Code

Report date: 2 May 2024

Company name: Societatea Energetica Electrica S.A. (Electrica)

Headquarters: 9 Grigore Alexandrescu Street, 1^st District, Bucharest, Romania

Phone/fax no.: 004-021-2085999/004-021-2085998

Fiscal Code: RO 13267221

Trade Register registration number: J40/7425/2000

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

Regulated market where the issued securities are traded: Bucharest Stock Exchange (BSE) and London Stock Exchange (LSE)

Significant events to be reported: Estimated impact of the final settlement of DEER case no. 375/1285/2021

Electrica informs investors about the preliminary calculations of the impact of the final settlement of the DEER file no. 375/1285/2021, about which Electrica informed the capital market through the current report with BSE:IRIS code 55029, LSE:RNS code 6611M from 30 April 2024.

The estimated impact of removing the disputed assets from the accounting records is approximately RON 35 million in the individual statutory financial statements of the DEER subsidiary according to OMFP 1802/2014. Both in the set of consolidated financial statements of Electrica Group prepared according to IFRS - EU and in the set of consolidated financial statements according to OMFP 2844/2016, the impact of removing from the RAB (Regulatory Asset Base) the disputed assets is estimated at approximately RON 2.7 million representing the remaining amount to be recovered through remuneration in tariffs (depreciation of fixed assets and the RRR (Regulated Rate of Return)). This impact is likely to be reflected in the IFRS-EU financial statements for H1 2024, following validation with the Group's auditor.

Also, part of the disputed assets were included in the original DEER RAB, and the value remaining in the RAB on 31 December 2023 is approximately RON 2.15 million. The impact of removing the disputed fixed assets from the RAB represents a negative income difference, estimated at a value of approximately RON 2.7 million, value calculated as the sum between the remaining undepreciated value and the profitability of fixed assets removed from the RAB that DEER will no longer recover through tariffs.

The details of the exact amounts and final impact will be known after the communication of the court's decision to DEER and the completion of all the necessary legal steps and will be reflected in DEER's annual statutory statements for 2024 and in the consolidated consolidated group interim financial statements prepared under IFRS-EU as of H1 2024.

CEO

Alexandru Chirita

 

END