REG - Soc EnergElectricaSA - Final settlement of case by HCCJ

Societatea Energetica Electrica SAAnnouncement

22/11/2022 15:15

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RNS Number : 2571H  Societatea Energetica Electrica SA  22 November 2022

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: 22 November 2021

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:

Settlement by the High Court of Cassation and Justice of the appeal made by
Societatea Energetica Electrica S.A. (ELSA) against the decision pronounced by
the Bucharest Court of Appeal on 25.02.2022 in file 3889/2/2018.

 

Electrica informs the shareholders about the fact that the High Court of
Cassation and Justice rejected the appeal declared by ELSA against civil
decision 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, 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.

 

The file was finally resolved by rejecting the appeal declared by ELSA against
the above Sentence.

 

Head of Legal

Stefania Andruhovici

 

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