REG - Soc EnergElectricaSA - Annulment appeal against the HCCJ decision

Societatea Energetica Electrica SAAnnouncement

13/04/2023 15:30

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RNS Number : 1667W  Societatea Energetica Electrica SA  13 April 2023

To:                              Bucharest Stock
Exchange (BSE)

                                    London
Stock Exchange (LSE)

Romanian Financial Supervisory Authority (FSA)

 

Current report in compliance with the Law 24/2017 on issuers of financial
instruments and market operations, the Romanian Capital Market Law no.
297/2004, FSA Regulation no. 5/2018, and the Bucharest Stock Exchange Code

Report date: 13 April 2023

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 (BSE) and London Stock Exchange (LSE)

 

Significant events to be reported:

Formulating an annulment appeal against the decision pronounced by the High
Court of Cassation and Justice on 25 February 2022 in file 3889/2/2018.

 

Electrica informs the shareholders about the fact that Societatea Energetică
Electrica S.A. (ELSA) filed an annulment appeal against civil decision no.
5599 of 22 November 2022, by which the High Court of Cassation and Justice
rejected the appeal declared by ELSA against Sentence no. 707/2019, pronounced
by the Bucharest Court of Appeal in file no. 3889/2/2018.

 

The file no. 3889/2/2018 has as object the annulment of the Competition
Council Decision no. 77/20.12.2017, and in the alternative, the reduction of
the fine established for ELSA up to the minimum legal level of 0.5% of ELSA's
turnover, by re-individualizing the alleged anti-competitive act, with the
retention and full capitalization of all mitigating circumstances applicable
to ELSA.

 

By the Decision of the Competition Council no. 77/20.12.2017 was found the
breaching of the provisions of art. 5 par. (1) of the Competition Law no.
21/1996 and art. 101 par. (1) TFEU by several companies which have sold meters
and related measuring equipment for electricity in Romania, in the procedures
for the award of supply contracts in the period from 27 November 2008 to 30
September 2015 and by Electrica, as a facilitator, in the period from 24
November 2010 to 30 September 2015.

The sanction applied to Electrica consists in a fine amounting to
10,800,984.04 lei (paid by ELSA), representing 2.98% of the total turnover
achieved in the financial year 2016. In determining the amount of the fine, it
was taken into account that (i) Electrica cooperated fully and effectively
with the Competition Council during the investigation procedure, outside the
scope of the leniency policy and beyond the legal duty to cooperate, and (ii)
it is for the very first time when the authority retains the role of
facilitator for a company organizing public procurement procedures.

 

On the merits of the case that was the subject of file 3889/2/2018, by
Sentence no. 707/25.02.2019, the Bucharest Court of Appeal rejected the
annulment action as unfounded, and the High Court of Cassation and Justice
rejected the appeal declared by ELSA against the above sentence.

 

Previous Announcements on the subject:

 BSE:IRIS Code  LSE:RNS Code  Date
 CE353          2571H         22 Nov 2022
 D22FE          4128L         05 Sept 2019
 51049          1123O         15 May 2018
 EAC12          1267B         05 Jan 2018

 

 

Head of Legal

Stefania Andruhovici

 

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