Transactions affiliated parties - SDMN and EFSA

RNS Announcement

RNS Number : 6672Y

Societatea Energetica Electrica SA

10 September 2020

To: Romanian Financial Supervisory Authority (ASF)

Bucharest Stock Exchange (BVB)

London Stock Exchange (LSE)

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

Report date: 10 September 2020

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 (BVB) and London Stock Exchange (LSE)

Significant events to be reported: Transactions with related parties according to Art. 92³ para (12) of Law No. 24/2017 concluded by Societatea de Distributie a Energiei Electrice Muntenia Nord (SDMN) and Electrica Furnizare SA (EFSA), subsidiaries of Societatea Energetica Electrica SA (Electrica)

Electrica informs its shareholders and investors about the conclusion, on 9 September 2020, of two transactions between SDMN and EFSA, Electrica's subsidiaries, based on two services agreements without fix price, that have a value that, cumulated with the rest of the transactions concluded/executed in the last 12 months, exceeds the threshold of 5% of Electrica's net assets, according to Electrica's individual financial statements for 2019, respectively exceeds the value of RON 199,406,795.

Details regarding the transactions concluded on 9 September 2020 by SDMN, as services provider, with EFSA, as beneficiary, containing information about the date of execution, type of transactions, description of their scope, total value of the transactiosn, expiry date, mutual debts and receivables, guarantees, penalties, payment due dates and methods are presented in Annex 1.

Details regarding the transactions concluded in the last 12 months between the parties, which lead to exceeding, at a cumulative level, the threshold of 5% of Electrica's net assets, according to Electrica's individual financial statements for 2019, are presented in Annex 2.

Chirf Executive Officer

Georgeta Corina Popescu

Annex 1: Details regarding the transactions concluded by SDMN with EFSA on 9 September 2020 of the kind listed in Art. 92³ of Law No. 24/2017

Service provider: SDMN

Beneficiary: EFSA

Parties of the transaction	Agreement Type and No., execution date	Scope of the agreement	Amount (RON th.)	Date of entry into force	Expiry date	Guarantees (RON th.)	Penalties	Payment due dates and payment methods
SDMN and EFSA MN	2630/1 Mar 2018, contract without fix price	Issuance of an invoice for re-invoicing common expenses (security services)	2.378	1 March 2018	N/A	0	0.01% of the unpaid amount, calculated for each day of delay starting with the first day after the due date until the day of payment (exclusive)	Payment is made within 30 days from the date of the issuance of the invoice.
SDMN and EFSA MN	R4990/31 Oct 2012, contract without fix price	Issuance of an invoice for IT services	0.406	1 November 2012	31 December 2020	0	0.06% of the unpaid amount, calculated for each day of delay starting with the first day after the due date until the day of payment (exclusive)	Payment is made within 60 days from the registration date of the invoice by the beneficiary.
Transactions total amount (RON th.):			2.78

Due and not due mutual receivables of SDMN from EFSA at 9.09.2020: RON 45,920.83 th.

Due and not due mutual debts of SDMN to EFSA at 9.09.2020: RON 782.56 th.

Annex 2: Details regarding the transactions concluded in the last 12 months between SDMN and EFSA of the kind listed in Art. 92³ of Law No. 24/2017

Parties of the transaction	Agreement Type and No., execution date	Scope of the agreement	Amount (RON th.)	Date of entry into force	Expiry date	Guarantees (RON th.)	Penalties	Payment due dates and payment methods
Service provider: SDMN Beneficiary: EFSA
SDMN and EFSA MN	R102263 / 30 Mar 2016 Contract without fix price	Providing electricity distribution service by the distribution operator for users, end customers of the supplier, whose installations are connected to the electricity network of the distribution operator	Amount between 1.09.2019 and 9.09.2020: 448,688.68	1 April 2016	N/A	0	0.02% (penalty interest corresponding to the percentage of interest due for non-payment of obligations to the state budget), calculated for each day of delay starting with the first day after the due date until the day of payment (exclusive). There are 30 days of grace period	Payment is made within 10 working days from the date of receipt of the invoice.
SDMN and EFSA MN	R102263 / 30 Mar 2016 Contract without fix price	Other services provided as a distribution operator - interventions in the distribution network	Amount between 1.09.2019 and 9.09.2020: 1,511.02	1 April 2016	N/A	0		Payment is made within 30 days from the date of issuance of the invoice
SDMN and EFSA TS	R106538/7 Jul 2015	Providing electricity distribution service by the distribution operator for users, end customers of the supplier, whose installations are connected to the electricity network of the distribution operator	Amount between 1.09.2019 and 9.09.2020: 1,645.41	1 August 2015	N/A	0	0.02% (penalty interest corresponding to the percentage of interest due for non-payment of obligations to the state budget), calculated for each day of delay starting with the first day after the due date until the day of payment (exclusive). There are 30 days of grace period	Payment is made within 10 working days from the date of issuance of the invoice.
	R106673/11 Jul 2015
	R107111/27 Jul 2015
	R107203/28 Jul 2015
	R107421/31 Jul 2015
	R107426/31 Jul 2015 Contracts without fix price
SDMN and EFSA TN	R110808/05 Nov 2015	Providing electricity distribution service by the distribution operator for users, end customers of the supplier, whose installations are connected to the electricity network of the distribution operator	Amount between 1.09.2019 and 9.09.2020: 383.69	1 December 2015	N/A	0	0.02% (penalty interest corresponding to the percentage of interest due for non-payment of obligations to the state budget), calculated for each day of delay starting with the first day after the due date until the day of payment (exclusive). There are 30 days of grace period	Payment is made within 10 working days from the date of issuance of the invoice.
	R111559/25 Nov 2015			1 December 2015
	R112463/15 Dec 2015			1 January 2016
	R112651/16 Dec 2015
	R112798/18 Dec 2015
	R112920/21 Dec 2015 Contracts without fix price
SDMN and EFSA MN	102463/5 Mar 2019; AA2/4 Feb 2020 Contract with addendum which contains price/sqm and the rented area at the reporting date	Buildings rental services	Amount between 1.09.2019 and 9.09.2020: 2.52 Amount to be executed: EUR 1.78	1 March 2019	31 December 2023	0	0.02% of the unpaid amount, calculated for each day of delay starting with the first day after the due date until the day of payment (exclusive)	Payment is made within 30 days from the date of registration of the invoice by the beneficiary
SDMN and EFSA MN	28/25 Jan 2008; AA2/4 Feb 2020 Contract with addendum which contains price/sqm and the rented area at the time of reporting	Buildings rental services	Amount between 1.09.2019 and 9.09.2020: 22.29 Amount to be executed: EUR 1.72	25 January 2008	31 December 2020	0	0.06% of the unpaid amount, calculated for each day of delay starting with the first day after the due date until the day of payment (exclusive)	Payment is made within 30 days from the date of registration of the invoice by the beneficiary
SDMN and EFSA MN	554/16 Jan 2008; AA19/4 Feb 2020 Contract with addendum which contains price/sqm and the rented area at the time of reporting	Buildings rental services	Amount between 1.09.2019 and 9.09.2020: 33.24 Amount to be executed: EUR 2.36	1 January 2008	31 December 2020	0	0.06% of the unpaid amount, calculated for each day of delay starting with the first day after the due date until the day of payment (exclusive)	Payment is made until the 30^th day of the current month
SDMN and EFSA MN	R102462/5 Mar 2019; AA 2/4 Feb 2020 Contract with addendum which contains price/sqm and the rented area at the time of reporting	Buildings rental services	Amount between 1.09.2019 and 9.09.2020: 15.40 Amount to be executed: EUR 10.08	1 March 2019	31 December 2023	0	0	Payment is made within 30 days from the date of issuing the invoice
SDMN and EFSA MN	R102464/5 Mar 2019; AA 2/4 Feb 2020 Contract with addendum which contains price/sqm and the rented area at the time of reporting	Buildings rental services	Amount between 1.09.2019 and 9.09.2020: 46.51 Amount to be executed: EUR 31.44	1 March 2019	31 December 2023	0	0.02% of the unpaid amount, calculated for each day of delay starting with the first day after the due date until the day of payment (exclusive)	Payment is made within 30 days from the date of registration of the invoice by the beneficiary
SDMN and EFSA MN	10335/1 Aug 2007	Re-invoicing common expenses	Amount between 1.09.2019 and 9.09.2020: 203.17	1 August 2007	31 August 2021	0	0.01% of the unpaid amount, calculated for each day of delay starting with the first day after the due date until the day of payment (exclusive)	Payment is made within 30 days from the date of registration of the invoice by the beneficiary
	2630/1 Mar 2018		28.66	1 March 2018	N/A			Payment is made within 30 days from the date of issuance of the invoice
	4914/20 Mar 2019; 17831/17 Feb 2020; 26497/10 Mar 2020		20.45	1 March 2019 1 February 2020	31 January 2021		0
SDMN si EFSA	2166/9 Jan 2020 Contracts without fix price	Re-invoicing common expenses (legal services fee)	Amount between 1.09.2019 and 9.09.2020: 3.87	1 January 2020	31 December 2020		0.01% of the unpaid amount, calculated for each day of delay starting with the first day after the due date until the day of payment (exclusive)	Payment is made in 7 days from the date of issuance of the invoice
SDMN and EFSA MN	580/108/27 Sept 2007 Contract without fix price	Optical fiber rental	Amount between 1.09.2019 and 9.09.2020: 25.50	1 August 2007	31 December 2020	0	0.001% of the unpaid amount, calculated for each day of delay starting with the first day after the due date until the day of payment (exclusive).	Payment is made within 10 working days from the date of receipt of the invoice by the beneficiary.
		Re-invoicing telecommunications services	51.37
		Telecommunications services	115.47					Payment is made within 60 days from the date of registration of the invoice by the beneficiary.
SDMN and EFSA MN	R4990/31 Oct 2012 Contract without fix price	IT services	Amount between 1.09.2019 and 9.09.2020: 1,450.67	1 November 2012	31 December 2020	0	0.6% calculated for each day of delay starting with the first day after the due date until the day of payment (exclusive)	Payment is made within 60 days from the date of registration of the invoice by the beneficiary.
SDMN and EFSA MN	R4990/31 Oct 2012 Contract without fix price	Re-invoicing IT services	Amount between 1.09.2019 and 9.09.2020: 378.04	1 November 2012	31 December 2020	0	0.04% calculated for each day of delay starting with the first day after the due date until the day of payment (exclusive)
SDMN and EFSA	21/15 Feb 2018 Contract without fix price	Balancing Market	Amount between 1.09.2019 and 9.09.2020: 9,083.52	1 February 2018	31 January 2021	0	0.01% penalty interest as a percentage of the interest due for non-payment on time of the contractual obligations, calculated for each day of delay starting with the 30th day after the due date until the day of payment	Payment is made within 3 working days from the date of receipt by email / fax
Provider/Seller: EFSA Beneficiary/Buyer: SDMN
Parties of the transaction	Agreement Type and No., execution date	Scope of the agreement	Amount (RON th.)	Date of entry into force	Expiry date	Guarantees (RON th.)	Penalties (RON th.)	Payment due dates and payment methods
EFSA and SDMN	21/15 Feb 2018 Contract without fix price	Representation service as the Party Responsible for Balancing	Amount between 1.09.2019 and 9.09.2020: 16,833.06	1 February 2018	31 January 2021	0		Payment is made within 3 working days from the date of receipt by email / fax
EFSA and SDMN	1219/12 Dec 2018; AA1 / 12 Dec 2019	Electricity supply on the competitive market - active energy	Amount between 1.09.2019 and 9.09.2020: 11,392.76 Amount to be executed: 3,821.51	1 January 2019	31 December 2020	0	0.1%, penalty interest as a percentage of the interest due for non-payment on time of the contractual obligations, calculated for each day of delay starting with the first day after the due date until the day of payment (exclusive). There are 20 days of grace period.	Payment is made within 10 days from the date of issuing the invoice.
EFSA and SDMN	1219/12 Dec 2018; AA1 / 12 Dec 2019	Electricity supply on the competitive market - reactive energy, green certificates, cogeneration, excise, with no fixed value	Amount between 1.09.2019 and 9.09.2020: 2,005.14	1 January 2019	31 December 2020	0	There are 20 days of grace period.
Total amount executed in the last 12 months (RON th.):			493,940.82
Total remaining amount to be executed (RON th.):			3,821.51
Total remaining amount to be executed (EUR th.):			47.38

Due and not due mutual receivables of SDMN from EFSA at 9.09.2020: RON 45,920.83 th.

Due and not due mutual debts of SDMN to EFSA at 9.09.2020: RON 782.56 th.

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RNS metadata

Title: Transactions affiliated parties - SDMN and EFSA
Time: 16:27:14
Date: 10 Sept 2020
Category: Miscellaneous
ID: 6672Y