The Board of Directors of Electrica approved in principle, in the meeting of May 27, the merger by absorption of the three electricity distribution companies within the Electrica Group – SDEE Transilvania Nord, SDEE Transilvania Sud and SDEE Muntenia Nord, the absorbing company being SDEE Transilvania Nord, the company announced.
“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 – the Branch of Maintenance and Energy Services Electrica Serv SA (FISE) and Servicii Energetice Muntenia SA (SEM) took place,” it is shown in the release.
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 megatrends that mark the energy industry (decarbonization, decentralization, digitization).
”In the area of energy services, the strategic objective is to transform the company into an integrated provider of energy solutions, and we have already started to prepare a portfolio of integrated and competitive services, covering both design and execution services for distribution networks and production facilities, as well as services adapted to the needs of business customers.
Both strategic initiatives create the opportunity to implement new architectures optimized by IT systems to support business processes and accelerate the implementation of modern IT solutions to enable operations to run efficiently and safely. Accelerating the digital transformation is already part of the Electrica Group’s efficiency process, representing a strategic pillar of modernization, our goal being the transformation into an optimized and agile organization, on all business lines.”
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 three distribution companies within the Group manage 198,988 km of power 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 users.
After the 2014 listing, the Electrica Group became the largest investor in the modernization and refurbishment of electricity distribution networks, with a total of 3.1 billion lei invested in the last five years, to which 600 million lei are added, representing the investment plan for 2020.
“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. We are convinced that the merger of distribution and energy services companies will bring many benefits to the Group. 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,” says Corina Popescu, general manager of Electrica.