ELSA-SDMN Litigation

To:                                         Bucharest Stock Exchange (BVB)

Romanian Financial Supervisory Authority (ASF)

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: 15 September 2020

Company name: Societatea Energetică 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 (BVB) and London Stock Exchange (LSE)

Significant events to be reported:

Litigation between Electrica and its subsidiary Societatea de Distributie a Energiei Electrice Muntenia Nord SA

Electrica informs the shareholders that SDEE Muntenia Nord SA ("SDMN") filed to the Bucharest Court a lawsuit for damages (file no.18976/3/2020), having as object the obligation of Electrica SA:

·      to pay the amount of lei 20,350,188.79, representing the undue payment made by SDMN to ELECTRICA;

·      to pay the amount representing legal fees made in regard with this lawsuit.

Following the investigation carried out by the Romanian Court of Accounts in 2016, this institution established a series of measures under SDMN's responsibility by Decision no. 45/2016, based on the Control report no. 618/11.11.2016.  Among these measures there is also the recovery of lei 20,350,188.79, amount paid by SDMN to Electrica based on consultancy, services and mandate contracts, in the period between 01.01.2013 and 30.06.2014.

Chief Executive Officer                                                                                                                  

Georgeta Corina Popescu