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: 2 February 2022

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 3,464,435,970

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

Significant events to be reported: Approval of the reorganization plan of the Company

Societatea Energetica Electrica SA ("Company" or "Electrica") informs the shareholders and investors that, during the meeting held on 2 February 2022, the Board of Directors of the Company approved:

·    the implementation of a reorganization process of the Company's personnel structure and the initiation of the collective dismissal procedure;

·    the amendment of the Company's organizational structure effective as of 1 March 2022;

·    the amendment of the Organisation and Functioning Regulation of the Company effective as of 1 March 2022;

·    the notification of relevant authorities and of the Trade Union regarding the final decision of the Company to implement the reorganization process and to carry out the collective dismissal of the employees who currently occupy the positions to be cancelled, as well as the sending of all data and information provided by art. 72 of the Labour Code, including the result of the process of information and consultation with the Trade Union.

Regarding the necessity and opportunity to carry out the reorganization process of the Company's personnel structure, it is mentioned that this is one of a broader and complex package of measures considered by the executive management and the Board of Directors of the Company regarding the global transformation process of Electrica Group, designed to support both Electrica and each of its subsidiaries to act in an agile manner in a field marked by volatility, uncertainty and complexity, to face the challenges of the internal and external environment and to strengthen its financial performance, so that the Company have the resources to transpose the development projects, on which shareholders and investors have been informed in accordance with the principles of transparency adopted by the Company.

The organizational measures provided in the Reorganization Plan have as objectives the resizing and the redefining of the Company's personnel structure, as well as of its organization and functioning mode, for the optimal correlation between the number of employees and the functions performed, in accordance with the current activity conditions on the energy market. Specifically, by implementing the organizational transformation project there will be obtained: a reduction from an existing structure of 120 positions to a future structure of 85 positions and a flattened structure by reducing the number of hierarchical levels. As a result of this approach, the number of organizational entities within the Company will be significantly reduced - a decrease of 19%, while the number of management / coordination positions will be reduced even more - a decrease of 25%.

CEO                                                                                                                           

Georgeta Corina Popescu