Societatea Energetica Electrica S A : Electrica Furnizare maintains its status as a stable supplier in the electricity market. The Electrica Group supports correct information in the context of a market marked by instability.

PRESS RELEASE

Electrica Furnizare maintains its status as a stable supplier in the electricity market. The Electrica Group supports correct information in the context of a market marked by instability

Following the appearance in the public space of some information regarding the difficulties in the current operations of the Electrica Furnizare, Electrica informs on the following aspects:

Electrica S.A., listed in 2014 on the Bucharest stock Exchange and London stock Exchange, reported profit on the supply segment in the first 6 months of the current year, demonstrating rapid adaptability to market conditions, in parallel with assuming the role of a major contributor to the implementation of energy support schemes. Speculative statements such as the company being in an immediate approach to default risk inducing uncertainty for market participants - end customers, companies and investors - and, implicitly, unforeseen behaviors that are unfavorable to the good conduct of supply and distribution activities in a market deeply marked by instability.

"In such a difficult context as that of the energy market, Electrica, a partner of Romanians for over 120 years, calls for balance and collaboration between all stakeholders interested in the energy distribution and supply processes, essential for consumers. Electrica S.A. is in line with the budget approved by the General Meeting of Shareholders in April 2022 and honors its commercial obligations as we go through a complex period, with multiple challenges, reiterating that the correct information of the stakeholders is essential and any distortion of market reality can lead to imbalances. The situation is exceptional for both suppliers and distributors, their activity being directly affected by the unprecedented increase in energy purchase prices in common markets, as well as by cash-flow deficits caused by the increase in the amounts to be paid for energy purchased for the future. The situation of the operating companies within Electrica Group is not much different from that of the other players in the market, Electrica reporting transparently and providing details on the level of subsidies to be received from the state as a result of the application of the mechanism for capping electricity and natural gas prices. Electrica Group is currently assessing the impact of the latest legislative and regulatory changes. I also mention that according to the financial reporting at 6 months, the supply segment of Electrica Group has a net profit of RON 213 million, and the new legislative changes related to the capitalization of the price difference for electricity related to it own technological consumption have the potential to have a positive impact on the distribution segment, aspects that will be revealed in the financial reporting for the third quarter that will be published on November 15, 2022," said Alexandru-Aurelian Chiriţă, General Manager of Electrica S.A.

Str. Grigore Alexandrescu, nr. 9, Sector 1, Bucureşti, 010621

Email: [e-mail]

Regarding the information apperead in the public space, according to which the Romanian State has delivered money in advance to the supply company within the Group regarding the customer protection measures, we specify that all amounts settled to Electrica Furnizare based on applications, submitted and approved by the competent state bodies, according to the regulations and legal terms in force.

Also, regarding the payment capacity of Electrica Furnizare S.A., we mention that it is guaranteed at group level by Electrica S.A., which contracted new credit facilities of over 2 billion lei in the first half of the year, through a financing structure accepted by all the Group's partner banks.

Despite the difficult market context, the strategy and resilience plans implemented at the level of the operating companies by the Group's management have allowed rapid adaptation to atypical market conditions, which proves that Electrica is and will remain a credible and stable partner for Romanians.

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Electrica Group is a key player in the electricity distribution and supply market in Romania, as well as one of the most important players in the energy services sector. Electrica Group provides services to about 3.8 million users and has national coverage - with a coverage of 18 counties from three geographical areas for the distribution of electricity: Transilvania Nord, Transilvania Sud, Muntenia Nord, and across the country for the supply of electricity and for maintenance and energy services. As of July 2014, Electrica has become a company with private majority capital, listed on the Bucharest and London stock exchanges. Electrica is the only listed Romanian company in the field of electricity distribution and supply in Romania.

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More information about Electrica Group can be found on the company's website www.electrica.ro

Str. Grigore Alexandrescu, nr. 9, Sector 1, Bucureşti, 010621

Email: [e-mail]