Electrica SA Extraordinary General Meeting of Shareholders (EGMS) approved the Board of Directors’ proposals on the draft terms of merger by absorption of the three electricity distribution operators within Electrica Group (SDEE Transilvania Nord, SDEE Transilvania Sud, SDEE Muntenia Nord), as well as the proposals regarding the draft terms of merger of the two energy services companies – Filiala de Intretinere si Servicii Energetice Electrica Serv SA (FISE) and Servicii Energetice Muntenia SA (SEM).
As of January 1, 2021, the new entity resulting in the distribution area will be named ‘Distributie Energie Electrica Romania SA’ (DEER). In the process targeting the three distribution operators, the acquiring company will be SDEE Transilvania Nord, and in that of energy services companies the acquiring company will be Filiala de Intretinere si Servicii Energetice Electrica Serv SA (FISE). In this context, the role of the distribution activity in the value chain changes, and the main objectives of the strategy defined for this segment envisage improvement and optimization on three levels: operational performance, quality of services and cost optimization at the end-consumer. This comes in addition to the long-term strategic directions, focused on consolidation and development of the business model, in conjunction with preparation of distribution networks to cope with energy transition challenges.
In 2019, the three operators within Electrica Group distributed approximately 17.7 TWh, accounting for approximately 40% of total electricity distributed at national level to end-users. In terms of services, the main goal is to become an integrated supplier of energy solutions, with benefits such as: unitary management and governance, organizational synergies, improved commercial activity, integrated offer for services, as well as transfer of knowledge and development of work execution capacity.
The two proposed mergers are in line with the directions of transformation and optimization of Electrica Group’s activity, started with its listing on the stock exchange. In the five years since listing, Electrica Group has become the largest investor in the country’s energy infrastructure, with a total of RON 3.4bn invested, plus the plan in progress for 2020, worth RON 600mln.
“With listing on the stock exchange, the plans of Electrica Group have become increasingly ambitious and envisaged moving the business to the next level, so that our consumers benefit from services at the highest standards. Today we stand before a new stage in the life of the Group, which marks acceleration of the transformation process it is going through and generates new synergies that bring added value to all stakeholders. The positive opinion of our shareholders for the two proposed mergers is yet another important step in implementing the Electrica Group’s strategy for 2019-2023 and contributes to the fulfilment of our objective of becoming a more robust, efficient and effective organization,” said Corina Popescu, CEO of Electrica SA.