Also, in a separate statement intended for the media, the Group slammed recent statements alleging the company is on the brink of payment default as sheer speculation.   According to market sources, at the end of last week the Romanian State made an emergency payment to Electrica (EL.RO) in order to keep the company, which is the largest electricity supplier in Romania from going into payment default.     “Speculative statements such as the company being on the brink of payment default may induce uncertainty to market participants – end customers, companies and investors – and, implicitly, unforeseen behaviors that are unfavorable to the good performance of supply and distribution activities in a market deeply marred by instability”, company representatives said in a statement released only to the media one week after the emergency payment.   For investors, Electrica issued another report, as follows:   “In order to pre-finance the support schemes established by the legislation, in the case of the supply company, as well as the difference in the price of the electricity for the coverage of the network losses, in the case of the distribution operator), as presented in the the financial statements for the first semester of 2022, published on 17 August 2022, Electrica Group contracted in 2022 new credit facilities of over RON2 billion. The access to new financing facilities from credit institutions was confirmed in the first six months of the year, the structure by which Electrica SA guarantees its subsidiaries being accepted by all the main partner banks of the Group”.

“I also mention that according to the six-month financial reporting, the supply segment of the Electrica Group registers a net profit of RON213 million and the new legislative changes related to the capitalization of the price difference for electricity related to own technological consumption have the potential to determine a positive impact on the distribution segment, aspects that will be revealed in the financial reporting for the third quarter to be published on November 15, 2022”, stated Alexandru-Aurelian Chirita, Chief Executive Officer (CEO) of Electrica. 

“Electrica reports transparently and includes in its financial reports details regarding the level of subsidies to be collected from the state. In the financial statements and the report of the first semester of 2022, published on 17 August 2022, Electrica provided details regarding the level of the subsidies to be collected from the state as a result of applying the mechanism for capping the prices of electricity and natural gas approved by GEO no. 118/2021 with subsequent amendments, as well as GEO no. 27/2022. This mechanism was subsequently amended by GEO 119/2022, whose law of approval, with amendments, is currently in parliamentary debates. Electrica ensures its shareholders and investors that at Group level there are enough liquidities for fulfilment of all contractual obligations. Also, considering the mechanism of capitalization of the price difference of the NL related electricity, as stipulated by GEO 119/2022, Electrica also confirms that it is in line with the budget approved by the General Meeting of Shareholders in April 2022,” the report reads.

According to the report, despite the difficult market context, the strategy and resilience plans implemented by the Group’s management  allow rapid adaptation to atypical market conditions, and the impact of the appropriate measures adopted will be reflected in the subsequent results. 

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