Romania: Merger of electricity distribution subsidiaries approved at Electrica

1. June 2020. / SEE Energy News

Romanian electricity distributor and supplier Electrica is the most important national operator of electricity distribution networks: it covers 18 counties, from three geographical areas, representing 40.7 % of Romania’s territory. The Board of Directors of  Electrica approved the merger by absorption of the three electricity distribution companies within the Group: Electrica Transilvania Nord, Electrica Transilvania Sud and Electrica Muntenia Nord, the absorbing company being Electrica Transilvania Nord.

The statement from the company said that the decision of the Board of Directors is another important step in the implementation plan of the Group Strategy for 2019-2023, after which, at the end of March, the merger of the two energy service companies within the Group: Electrica Serv and Servicii Energetice Muntenia took place.

In the distribution area, the continuation of the process of transformation, modernization and optimization of the business model, in relation to the provisions of the regulatory framework, is an essential stage of Electrica’s strategy. The main objectives pursued in the short- and medium-term are to increase the quality of services provided to 3.8 million consumers, while improving operational performance and optimizing costs to the final consumer. In the long run, the goal is to prepare the organization to meet the challenges posed by the trends that mark the energy industry (decarbonization, decentralization, digitization).

CEO of Electrica Corina Popescu said that the mergers approved by Electrica’s Board of Directors are in line with the Group’s new Strategy and represent important steps in achieving the objective of optimizing the business model. The goal is to make the business more efficient, so that the Electrica brand consolidates its image as the strongest player on the electricity market. The implementation of the strategy ensures solid development prospects for the company, and the results are already beginning to be seen.

The three distribution companies within the Group manage 198,988 kilometers of transmission lines and serve approximately 3.8 million end consumers. In 2019, the distribution operators within the Electrica Group distributed approximately 17.7 TWh, which represents approximately 40 % of the total electricity distributed nationwide to end consumers.

 

 

 

 

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