Annulment ANRE Order 97 from 2024

Societatea Energetica Electrica SA

22 January 2025

 

To:      Bucharest Stock Exchange (BSE)

            London Stock Exchange (LSE)

Romanian Financial Supervisory Authority (FSA)

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

Report date: 22 January 2025

Company name: Societatea Energetica Electrica S.A.

Headquarters: 9 Grigore Alexandrescu Street, 1st 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 3,395,530,040

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

Significant events to be reported: Request for partial annulment of ANRE Order no. 97/2024

Electrica informs the shareholders that, on 21 January 2025, filed an administrative litigation action against the National Energy Regulatory Authority (ANRE in Romanian), at the Bucharest Court of Appeal, having as object the request for:

a)   partial annulment of the Order of the President of ANRE no. 97/2024 regarding the approval of the specific tariffs for the electricity distribution service and the price for reactive electricity, valid from 1 January 2025, for Distributie Energie Electrica Romania S.A. (DEER), as well as the values of the investment plans for the fifth regulatory period (RP5), regarding the inclusion of the period 1 January - 28 March 2019 and 30 April - 12 May 2020 in the period of application of the a regulated rate of return (RRR) of 6.23%, according to art. 4 of the above-mentioned Order;

b)   issuance of an order on the establishment of the RRR, with a value equal to that established by ANRE Order no. 75/2020 on establishing the regulated rate of return on invested capital applied to the establishment of tariffs for electricity and natural gas distribution, transmission and system services until the end of the fourth regulatory period (RP4) and amending certain normative acts issued by ANRE, respectively 6.39% and with the inclusion in the newly issued order of the mention that the RRR value applies to the establishment of tariffs for the electricity distribution service provided by the concessionaire distribution operators;

c)   recognition in the regulated income of the DEER, of the difference between the value of the RRR used to establish the revenue correction resulting from the non-realization/exceeding of the investment plans in the RP4 (2019-2023) of 6.23%, indicated in art. 4 of the contested order and the one indicated in anre Order 75/2020 and including these amounts in the calculation of the tariffs, within no more than 30 days from the date on which the decision becomes final.

In parallel, Electrica filed a preliminary complaint to ANRE under the Administrative Litigation Law no. 554/2004, with a similar object to the above, with the mention that the petition in letter c) envisages the inclusion of these amounts in the calculation of the tariffs, within no more than 30 days from the date of settlement of the complaint.

Also, on 21 January 2025, DEER SA filed at Bucharest Court of Appeal an administrative litigation action against ANRE, requesting:

1.   Partial annulment of the Approval Report sent with ANRE Address no. 1971/13Jan2025 and of ANRE Order no. 97/2024 regarding the approval of the specific tariffs for the electricity distribution service and the price for reactive electricity, valid from 1 January 2024, for DEER, as well as of the values ​​of the investment plans for the RP5, published in the Official Gazette of Romania no. 1301/21Dec2024.

2.   Obliging the defendant to recognize the differences in value resulting from the correct application of the provisions of ANRE Order no. 169/2018 regarding the approval of the Methodology for establishing tariffs for the electricity distribution service and including these amounts in the calculation of tariffs for the year following the final settlement of this dispute.

In parallel, DEER filed a preliminary complaint with ANRE pursuant to the Administrative Litigation Law no. 554/2004, with a similar purpose to the above, with the mention that the petition in point 2 contemplates the recognition of the differences in value resulting from the correct application of the provisions of ANRE Order no. 169/2018 in the calculation of tariffs for the year 2026.

Contact: [e-mail] ; [phone]

CEO                                                                                                    Head of Legal

Alexandru Chirita                                                                              Stefania Andruhovici

 

END