Romania: Electrica to invest 150MEUR in its distribution network modernization, SEE Energy News
The money obtained from the listing and sale of shares at stock exchange maret power company Electrica will use for investments into its grid modernization. Electric has an ambitious program of investment, mainly in upgrading the distribution network which manages. Electrica will invest over 150 million euros per year, and these investments will benefit consumers because there will be no question that Electrica distribution tariffs exceed distribution tariffs of other operators in the market.
So, these investments will create prerequisites for quality services at prices in line with those of other operators of distribution, “said Razvan Nicolescu minister in the gov stated.
He said previously that the percentage allocated to the retail segment of Electric supply should increase, given the interest in enjoying the company shares among retail investors.
“From the information we got from consultants, discussions between the management company and potential investors go well. The retail segment is an oversubscription. We may need a review with consultants, because, given the huge interest in retail and requests of the market, I think it would be desirable, as I have said, to increase the percentage allocated to the retail segment, taking into account the special interest enjoyed this offer among retail investors in Romania market, “the minister added.
Initial Public Offer of sale of a number of 177 188 744 shares Electrica will run from June 16 to 25, 2014, according to the prospectus approved by the Financial Supervisory Authority (FSA).
Electrical Group is a leader in the distribution and supply of electricity in Romania. Core business segments of the Group are the distribution of energy to the users and supply to households and non-households.
Electricity distribution company Electrica is the largest in Romania, both in terms of quantity of electricity distributed to users and the number of users. According to ANRE, 2013, the Group distributed 16.1 TWh of electricity, representing 39% of the electricity distributed in Romania by about 3.6 million users.