REG - Soc EnergElectricaSA - Measures in COVID-19 context - updated information

Societatea Energetica Electrica SAAnnouncement

08/04/2020 07:01

RNS Number : 1851J
  
Societatea Energetica Electrica SA
  
08 April 2020
  
 

ANNOUNCEMENT - UPDATED INFORMATION 
During this difficult time without precedent that we all go through, we are aware of the vital role that electricity plays in the community and we want to assure you that Electrica Group makes every effort to fulfill, with maximum responsibility, the commitment to distribute and supply electricity to high quality standards.
Electrica is one of the pillars of the Romanian economy - a strategic group composed of solid companies both from an operational point of view - leading position both on the electricity distribution and supply segments, in the regulated area, as well as from a financial point of view - with stable cash-flow and potential of maintaining the assumed level of investments.  
We continue to be one of the companies with the most stable share price on the Bucharest Stock Exchange, despite the increased volatility recorded by the capital market. Even though the evolution of the share price is in negative territory regarding the year-to-date (YTD) return, Electrica recorded, on 6 April 2020, the third best performance in the BET index (-9.86%), far superior to the ones of BET and BET-NG indices, which recorded decreases of approximately 23%. During this period, we noticed a consolidation of the positions held by institutional investors, which traditionally have a medium and long-term investment strategy. We consider that this is due also to the fact that the defensive shares (those that are not very affected by the economic cycles), like those of Electrica, are considered safer during such times of crisis, the utility companies being essential for the national economy.
We constantly monitor the national and international context in order to limit any potential risks and to be prepared to respond as soon as possible to the situations generated by the evolution of the situation in Romania.
Business continuity and our customers' welfare are very important for Electrica Group
We guarantee our customers who are in permanent need of the services provided by Electrica Group that we have measure plans implemented in order to ensure the continuity of activities, parameterized depending on the situation's evolution, and that we do not anticipate significant difficulties in continuing the electricity supply.
In the fight against COVID-19, Electrica has adopted all the necessary measures so that the activity of the companies within the Group to continue to be carried out under normal conditions. Ever since the beginning of the crisis the resilience plan in force at Group level has been updated promptly to respond to the exceptional situation at the national level and to limit a potential expansion of Covid-19. Also, essential activities and critical roles have been identified, staff back-up has been insured and three action scenarios on escalation levels depending on the evolution of the situation in the external environment of the company have been defined, based on which a resilience plan was developed for each company within the Group.
Up to this moment, activities that involve interaction with clients and / or access to clients' homes have been limited and the scheduled works reprioritized, in order for the scheduled interruptions in the electricity supply to be diminished.
In order to reduce the risk of infection with COVID-19, we encourage customers to #stayhome and to use methods of indirect interaction, through Internet or by telephone, to solve the various requests, as well as online payment methods. MyElectrica account, internet banking and mobile banking represent alternative functional and safe payment methods for electricity or natural gas invoices. In addition, if interventions are required at the users' homes, they are asked to inform in advance Electrica's employees in case they are in special situations, in quarantine or self-isolation, in order to implement the existing intervention procedures under special conditions. The complete list of payment channels for Electrica Furnizare customers can be found at the link www.electricafurnizare.ro.
Our employees' safety remains our priorities
At this moment, at the Group level we have a total of 8247 employees and, together with our social partners, we give priority to their safety and well-being. We have not terminated or renounced to any employment agreement and until now we have no situations of employees in technical unemployment, in response to the crisis generated by COVID-19.
In order to limit the spread of COVID-19 and to protect the employees, including those with operational role, we have implemented the "work-from-home" concept, wherever feasible. At the same time, we have temporarily limited or suspended the access in certain locations, including customer relations centers and have redirected the communication through alternative electronic channels. At the level of the Group companies, the electronic signature system for the decision-making and administrative processes has been extended, allowing us to work efficiently from distance, without significantly affecting the decision and support activities. Also, the tele and video conferencing systems facilitate our interaction, coordination, communication and decision-making processes.
In order to protect the employees whose presence is necessary at the office, we have taken, in the first place, preventive measures consisting in providing personal protective equipment (masks, protective gloves, disinfectants, etc.), cancelling all trips or meetings that are not essential for the activity, imposing a maximum number of people who can physically participate in a meeting, in line with the legal provisions in force, and sanitizing the locations / offices at short intervals. 
For protecting the personnel that have to be in frontline, our colleagues who carry out activities in installations and ensure the continuity of the electricity supply, protective materials have been provided, a measure that will be applied throughout the period of emergency.  
Additionally, in order to support our employees and their families, we founded Support Cells, volunteer help groups, in each county where our distribution companies operate (a total number of 18) and in Bucharest, for the cases in which help in managing the isolation / quarantine situations for employees and their families will be needed.
We recommend to our shareholders to use electronic means and the voting by correspondence method for the annual GMS
Given that Electrica's Ordinary General Meeting of Shareholders (OGMS) will take place on 29  April 2020, in order to limit any risk, we call upon our shareholders' understanding and recommend them to use electronic means of information regarding the OGMS's agenda, to use the online or telephone correspondence to ask questions regarding the documents related to the agenda and to express their votes by correspondence, in compliance with the provisions of the OGMS convening notice available under the dedicated section for the OGMS dated 29 April 2020, on Electrica website (www.electrica.ro). In addition, for an efficient communication regarding the organization of Electrica OGMS, the shareholders who #stayhome can send the questions / requests by e-mail, at the e-mail address ir@electrica.ro, before, during or immediately after the OGMS meeting and the investor relations dedicated team will promptly answer to all questions.
We support the remarkable effort of the medical personnel in frontline in the fight against COVID-19
Together we can support the medical system in Romania. The supply, distribution and energy services companies within Electrica Group donated, up to now, EUR 150,000 to hospitals in Bucharest, Ploiesti, Brasov and Cluj. Additionally, Electrica Furnizare donated RON 433,000 to "Crucea Rosie" for the purchase of sanitary masks, so needed during this period.
We permanently analyze Electrica Group's financial perspective and liquidity  
The management team permanently monitors the financial performance and liquidity of Group companies on several tiers, in order to ensure the availability of the necessary funds for carrying out the activity, by analyzing the cash flow with priority, including the potential impact of the legislative changes on Group's activities. The aim is to secure the collection of receivables from customers, the use of the banking structures for liquidity concentration ("cash-pooling") implemented earlier this year, as well as the financing facilities available for the Group companies.
As additional information will be available, the management team will analyze their impact on the activity of Group companies and on the financial results. We will continue to promptly and transparently communicate any information that is reasonably expected to affect investors' perception. Also, at the moment the impact of COVID-19 on the current year financial results of Electrica Group will be possible to be established and it will be considered significant, the information will be made available to the investors.
 
Contact details: Electrica Investor Relations, E-mail: ir@electrica.ro 
 
Chief Executive Officer                                                                     
Georgeta Corina Popescu                                                                   


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