Company Announcements

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, FSA Regulation no. 5/2018 on issuers of financial instruments and market operations, and the Bucharest Stock Exchange Code

Report date: 10 June 2024

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 of file no. 107/1285/2024, having as object the claims requested by Societatea Energetica Electrica SA (Electrica) for the recovery of the damage stated by Romanian Court of Accounts's Decision 12/27 December 2016

Electrica informs the shareholders and investors regarding the settlement of file 107/1285/2024, having as its object claims requested by Societatea Energetica Electrica SA (Electrica) from its subsidiary Distributie Energie Electrica Romania SA (DEER), for the recovery of the damage ascertained by the Decision of the Court of Accounts of Romania no. 27 / 12Dec2016, after the court, through the High Court of Cassation and Justice, definitively resolved file 2229/2/2017* (see the current report from 10 April 2024), in the sense that the deviations mentioned in this file were definitively abolished and therefore no longer exists the reason for which the action was formulated in file 107/1285/2024.

In the period 19Sep2016 - 29Nov2016, Electrica's activity was the subject of an audit by the Court of Accounts, with the audit topic "the method of managing the assets for the distribution and supply of electricity" in the period 01Jan2013 - 30Jun2014.

The findings of the control team were recorded in the Control Report drawn up on 29Nov2016 by the external public auditors of the Romanian Court of Accounts, Department IV, Directorate 2, registered at Societatea Energetică Electrica SA under no. 9900/20307/29Nov2016.

Through the above-mentioned Control Report, among others, the following deviations were found:

1. "Employment of funds in the estimated amount of 224,622,940 lei (without VAT), for the execution of the investment work "AMR System (Automatic Meter Reading) measurement activities and consumption dispatcher at SC Electrica SA level", for which, the purchased goods, although they were highlighted in the accounting, are not physically found in the patrimony, nor were they used for the activities carried out according to the object of activity;

2. Unjustified increase in operating expenses with an estimated amount of 273,500 lei (without VAT) representing studies developed for activities that are not within the scope of activity of SC DFEE "Electrica" ​​SA, being related to activities belonging to other legal entities (their subsidiaries);

3. Unjustified increase in expenses for technical assistance services intended for carrying out the activity of other legal entities (distribution branches), in the estimated amount of 2,337,657.50 lei (without VAT);

4. Unjustified increase in operating expenses with the amount of 74,667.60 lei (without VAT), representing communication equipment maintenance services provided to other legal entities (their subsidiaries).

Subsequent to the control report, were issued Decision 12/27Dec2016 and Conclusion no. 12/27Feb2017.

Against Decision no. 12/27Dec2016 and Conclusion no. 12/27Feb2017, Societatea Energetică Electrica SA filed an action for annulment, which forms the subject of file no. 2229/2/2017.

We mention that the first instance admitted Electrica's appeal regarding the above-mentioned violations and abolished them, solution held definitively by the High Court of Cassation and Justice.

On 23 February 2024, Electrica filed a summons request (file no. 107/1285/2024), contrary to Distributie Energie Electrica Romania SA (DEER), for:

·    obliging DEER to pay the amount of 235,567,249 lei, the amount that will be updated with the inflation rate, based on unjust enrichment, as follows:

- the amount of 232,451,693 lei (composed of 205,829,399 lei - payments made until 30.06.2014, 22,950,254 lei - unjustified increase in operating expenses/depreciation expenses and 3,672,040 lei - reduction of profit tax);

- the amount of 2,711,682 lei (2,337,657 lei - payments made and 374,025 lei - profit tax);

- the amount of 86,614 lei (74,667 lei - payments made and 11,947 lei - profit tax);

- the amount of 317,260 lei (273,500 lei - payments made and 43,760 lei - profit tax);

·    obliging the defendant DEER to pay the legal interest calculated starting with the date of enrichment of the defendant, until the date of payment of the amount that is the main object of the action, in order to implement the measures ordered by the Romanian Court of Accounts for remedying the deviation identified according to items 1-4 of the RCA Decision no. 12 / 27Dec2016 issued as a result of the control on the management of the patrimony of Societatea Energetica Electrica SA for the period 01Jan2013-30Jun2014.

Considering that the above-mentioned deviations were definitively abolished by the courts, so that the reason for filing the action that is the subject of file no. 107/1285/2024, in order not to generate additional expenses, Electrica no longer paid the judicial stamp duties, for which the court canceled the claims in this file.

Head of Legal

Stefania Andruhovici