The merger was approved in principle by Electrica’s Board of Directors, at the end of May 2020. The decision is an important step in the implementation plan of the Group Strategy for the period 2019-2023.
“By implementing the merger of the three distribution companies within the Group, medium and long-term benefits will be obtained for all stakeholders. It is a major project which will allow us to streamline costs, while accelerating the digitization of major business processes, as well as to improve operational performance in order to increase the quality of services provided,” stated Electrica CEO Corina Popescu.
Through the merger of Societatea de Distributie a Energiei Electrice (SDEE) Transilvania Nord S.A, SDEE Transilvania Sud S.A. and SDEE Muntenia Nord S.A., the new company Distributie Energie Electrica Romania becomes the most important national operator of electricity distribution networks. It will operate 198,988 km of electric lines in 18 counties, from three geographical areas of the country, representing 40.7% of the Romanian territory, and will serve over 3.8 million users. Thus, Electrica Group has taken an important step in adapting to consumer’s requirements, offering them services to cover their increasingly diverse needs.
DEER is responsible for the distribution of electricity in the counties of Cluj, Maramures, Satu Mare, Salaj, Bihor, Bistrita-Nasaud, Brasov, Alba, Sibiu, Mures, Harghita, Covasna, Prahova, Buzau, Dambovita, Braila, Galati and Vrancea.
At regional level, there will be eighteen branches, with headquarters in: Cluj-Napoca, Oradea, Baia Mare, Satu Mare, Bistrita, Zalau, Brasov, Sibiu, Alba Iulia, Targu Mures, Miercurea Ciuc, Sfantu Gheorghe, Ploiesti, Braila, Galati, Buzau, Targoviste and Focsani.
The main objectives of the strategy defined for the distribution segment consider optimizations on three dimensions: operational performance, quality of services and optimization of costs to the final consumer. The long-term strategic directions, focused on the business model’s development, corroborated with the preparation of the distribution networks to face the challenges of the energy transition, are added to these.
Since 2014 until present, Electrica Group has become the largest investor in the upgrading and retrofitting of electricity distribution networks, with a total of RON4.39 billion invested.