Transactions affiliated parties - SDTN and EFSA

RNS Announcement

RNS Number : 8107Y

Societatea Energetica Electrica SA

11 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: 11 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 Transilvania Nord (SDTN) and Electrica Furnizare SA (EFSA), subsidiaries of Societatea Energetica Electrica SA (Electrica)

Electrica informs its shareholders and investors about the conclusion, on 10 and 11 September 2020, of several transactions between SDTN and EFSA, Electrica's subsidiaries, based on services agreements and conventions 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 10 and 11 September 2020 by SDTN, 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 transactions, 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 SDTN with EFSA on 11 September 2020 of the kind listed in Art. 92³ of Law No. 24/2017

Service provider: SDTN

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
SDTN and EFSA	817/30 Dec 2015 AA 8/1259A08 / 16 Dec 2019	Buildings rental services	6.64	1 January 2016	31 December 2023	0	The failure of the tenant to pay the rent at due date authorizes the lessor to charge late payment interest equal to the penalties incurred by lessor in the obligations to the state budget due to non-payment of the tax amounts at due date, these being applied to the amount due for each day of delay from the day immediately following the due-date and until the date of settlement of the amount due, exclusively. The value of the penalties may not exceed the value of the outstanding debt	Payment is made within 10 days from the date of registration of the invoice to the tenant.
SDTN and EFSA	Convention 50277/22 Feb 2016, AD 52630A/10 Oct 2019 - Bistrita	Re-invoicing utilities expenses	12.62	22 February 2016	31 December 2023	0	For delays in the payment of the invoice longer than 30 days from the due date, the lessor has the right to charge, and the lessee has the obligation to pay, late payment penalties in amount of 0.03% applied to the amount due for each calendar day of delay, starting with the first day after due-date. The value of the penalties will not exceed the value of the outstanding debt	Payment is made within 10 days from the date of registration of the invoice to the tenant.
	Convention 30728/22 Feb 2016, AD 1159/16 Jul 2020 - Oradea
	Convention 60380/22 Feb 2016, AD 60376A/15 Feb 2019 - Satu Mare
	Convention 1193/9 Jan 2017, AD 406/4 Mar 2019 - Baia Mare			9 January 2017
	Convention 43/27 Mar 2017, AD 1255/25 Jul 2018 - Cluj			27 March 2017
	Convention 70022/5 Jan 2017, AD 71117A/18 Jul 2018 - Zalau			5 January 2017
SDTN and EFSA MN	103 / 10 Mar 2016	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	1,319.15	1 April 2016	N/A	0	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 (exclusively). The total amount of penalty interest may not exceed the amount due. There are 30 days of grace period. (Percentage valid at the date of reporting: 0.02%)	Issuing of the invoice with the amount for the contractual month ended is made in the first 10 working days of the month following each contractual month. Payment is made within 10 working days from the date of receipt of the invoice.
Transactions total amount (RON th.):			1,338.41

Due and not due mutual receivables of SDTN from EFSA at 10.09.2020: RON 76,327.72 th.

Due and not due mutual debts of SDTN to EFSA at 10.09.2020: RON 596.73 th.

Annex 2: Details regarding the transactions concluded in the last 12 months between SDTN 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: SDTN Beneficiary: EFSA
SDTN and EFSA TN	103 / 10 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: 422,983.02		1 April 2016	N/A	0	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 (exclusively). The total amount of penalty interest may not exceed the amount due. There are 30 days of grace period. (Percentage valid at the date of reporting: 0.02%)	The issuing of the invoice with the amount for the contractual month ended is made in the first 10 working days of the month following each contractual month. Payment is made within 10 working days from the date of receipt of the invoice.
		Other services provided as a distribution operator - interventions in the distribution network	Amount between 1.09.2019 and 9.09.2020: 2,068.44
SDTN and EFSA TS	30275 / 30 Sept 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: 962.04		1 October 2015	N/A	0	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 (exclusively). The total amount of penalty interest may not exceed the amount due. There are 30 days of grace period. (Percentage valid at the date of reporting: 0.02%)	The issuing of the invoice with the amount for the contractual month ended is made in the first 10 working days of the month following each contractual month. Payment is made within 10 working days from the date of receipt of the invoice.
	33802 / 1 Jul 2015				1 July 2015
	43670 / 17 Nov 2015				1 December 2015
	426/SM/ 30 Dec 2015				1 January 2016
	10019 BN/1 Oct 2015				1 October 2015
	71107 / 11 Aug 2015 Contracts without fix price				1 September 2015
SDTN and EFSA MN	32476 / 9 Dec 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: 5,106.47		1 January 2016	N/A	0	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 (exclusively). The total amount of penalty interest may not exceed the amount due. There are 30 days of grace period. (Percentage valid at the date of reporting: 0.02%)	The issuing of the invoice with the amount for the contractual month ended is made in the first 10 working days of the month following each contractual month. Payment is made within 10 working days from the date of receipt of the invoice.
	33799 / 1 Jul 2015				1 July 2015
	43264 / 20 Oct 2015				11 November 2015
	425/SM/ 23 Dec 2015				1 January 2016
	10018 BN/1 Jul 2015				1 July 2015
	70866 / 1 Jul 2015 Contracts without fix price				1 July 2015
	32476 / 9 Dec 2015	Other services provided as a distribution operator - interventions in the distribution network	Amount between 1.09.2019 and 9.09.2020: 6.71		1 January 2016	N/A	0
	33799 / 1 Jul 2015				1 July 2015
	43264 / 20 Oct 2015				11 November 2015
	425/SM/ 23 Dec 2015				1 January 2016
	10018 BN/1 Jul 2015				1 July 2015
	70866 / 1 Jul 2015 Contracts without fix price				1 July 2015
SDTN and EFSA	817/30 Dec 2015 AA 8 / 1259A08 / 16 Dec 2019 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: 616,31 Amount to be executed: EUR 444.88 th.		1 January 2016	31 December 2023	0	The failure of the tenant to pay the rent at due date authorizes the lessor to charge late payment interest equal to the penalties incurred by lessor in the obligations to the state budget due to non-payment of the tax amounts at due date, these being applied to the amount due for each day of delay from the day immediately following the due-date and until the date of settlement of the amount due, exclusively. The value of the penalties may not exceed the value of the outstanding debt	Payment is made within 10 days from the date of registration of the invoice to the tenant.
SDTN and EFSA	Convention 50277/22 Feb 2016, AD 52630A/10 Oct 2019 - Bistrita	Re-invoicing utilities expenses	Amount between 1.09.2019 and 9.09.2020: 637.35		22 February 2016	31 December 2023	0	For delays in the payment of the invoice longer than 30 days from the due date, the lessor has the right to charge, and the lessee has the obligation to pay, late payment penalties in amount of 0.03% applied to the amount due for each calendar day of delay, starting with the first day after due-date. The value of the penalties will not exceed the value of the outstanding debt	Payment is made within 10 days from the date of registration of the invoice to the tenant.
	Convention 30728/22 Feb 2016, AD 1159/16 Jul 2020 - Oradea
	Convention 60380/22 Feb 2016, AD 60376A/15 Feb 2019 - Satu Mare
	Convention 1193/9 Jan 2017, AD 406/4 Mar 2019 - Baia Mare				9 January 2017
	Convention 43/27 Mar 2017, AD 1255/25 Jul 2018 - Cluj				27 March 2017
	Convention 70022/5 Jan 2017, AD 71117A/18 Jul 2018 - Zalau				5 January 2017
SDTN and EFSA	487/29 Aug 2007; AA 42/17 Dc 2019 Contract without fix price	Telecommunications services	Amount between 1.09.2019 and 9.09.2020: 396.05		1 August 2007	31 December 2020	0	The beneficiary will pay, beside the amount due, a penalty to this amount, corresponding as a percentage of the interest due for non-payment on time of the obligations to the state budget, for each day of delay compared to the due date, until the day of payment (exclusively).	Payment is made within 30 working days from the date of receipt of the invoice. Payment of invoices can also be made by compensation in compliance with the legislation in force.
		Re-invoicing telecommunications services	89.05
SDTN and EFSA	489/29 Aug 2007; AA 47/17 Dec 2019	IT services	Amount between 1.09.2019 and 9.09.2020: 749.02 Amount to be executed: 249.67		1 August 2007	31 December 2020	0	In case of non-fulfillment of obligations, the Beneficiary will pay, in addition to the amount due, a penalty to this amount, corresponding as a percentage of interest due for non-payment of obligations to the state budget, for each day of delay from the date of issuance of the invoice, until the day of payment ( exclusively). The total amount of penalties may not exceed the amount due.	The issuing of the invoice with the amount for the contractual month ended is made in the first 10 working days of the month following each contractual month. Payment is made within 30 days from the date of registration of the invoice by the beneficiary, at the Provider's bank and in his account.
SDTN and EFSA	22/15 Feb 2018 and Concession contract 61/4 Apr 2018 Contract without fix price	Providing representation service as the Party Responsible for Balancing	Amount between 1.09.2019 and 9.09.2020: 3,221.20		27 February 2018	31 December 2020, with the possibility of extension without completing any formality, for periods of 12 months, if neither party requests the cancellation of the contract at least 30 days before the expiration of its duration	0	Interest due for not paying the obligations to the state budget in due time, applied starting with the first day after the due date; (Percentage valid at the date of reporting: 0.02%) If the provider fails to fulfill its obligations under the contract, the purchaser has the right to deduct from the tariff established by the contract, as penalties, an amount equivalent to a percentage of 1.5% of the monthly tariff	Payment is made within 3 working days from the date of receipt of the invoice
Provider/Seller: EFSA Beneficiary/Buyer: SDTN
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 SDTN	22/15 Feb 2018 Contract without fix price	Representation service as the Party Responsible for Balancing	Amount between 1.09.2019 and 9.09.2020: 15,713.71		1 January 2018	31 December 2020	0	0	Payment is made within 3 working days from the date of receipt of the invoice
EFSA and SDTN	189/12 Mar 2017	Electricity supply on the competitive market - active energy, fixed price	Amount between 1.09.2019 and 9.09.2020: 6,178.24 Amount to be executed: 1,262.37		1 April 2017	31 December 2020	0	0.02%, 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 30 days of grace period. There are 20 days of grace period.	Payment is made within 10 days from the date of issuing the invoice.
		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: 1,456.76
EFSA and SDTN	885/31 Dec 2015 Contract without fix price	Buildings rental services	Amount between 1.09.2019 and 9.09.2020: 57.12		1 January 2016	31 December 2023	0	0	Payment is made within 10 days from the date of registration of the invoice to the tenant.
Total amount executed in the last 12 months (RON th.):				460,238.48
Total remaining amount to be executed (RON th.):				1,512.04
Total remaining amount to be executed (EUR th.):				444.88

Due and not due mutual receivables of SDTN from EFSA at 10.09.2020: RON 76,327.72 th.

Due and not due mutual debts of SDTN to EFSA at 10.09.2020: RON 596.73 th.

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RNS metadata

Title: Transactions affiliated parties - SDTN and EFSA
Time: 17:35:23
Date: 11 Sept 2020
Category: Miscellaneous
ID: 8107Y