The administrators of Electrica S.A. plan to accomplish in the next three years investments of over 715 million euro, mainly in its distribution networks, said Cristian Bușu, President of the Board of Directors (CA) of the distribution and supply group, for Bursa.ro.
“We have three major ways in which we plan to invest: in our networks, we analyze acquisition opportunities and, not least, we invest in people and communities where we operate. We have the most ambitious investment plan in the networks of all operators in Romania. By 2018, we will pump over 715 million euros in upgrading the existing network infrastructure, the network development, in smart metering, or in consolidating the support functions, in short, the Romanian economy,” said Cristian Bușu.
Regarding the acquisitions, at the moment they seem focused internally. At the end of March will end the second attempt to negotiate with Fondul Proprietatea (FP) for the acquisition of the shares held by the investment fund distribution in the regional branches of Electrica S.A.
“Regarding the possible acquisition, our investment availability is well known, we want to capitalize it for the company as well as we could and obviously for the shareholders. We carefully analyze various opportunities for acquisitions, the discussion with Enel for example, or as the negotiating with Fondul Proprietatea undergoing now, but not to give in to the pressure of spending the money in any way, obtained from the listing,” added Cristian Bușu.
In terms of risks and opportunities, Cristian Bușu believes that the energy market liberalization, regarding the supply, contains both qualities.
“The liberalization of the supply market, generates both opportunities and risks. I think it’s good to have competition regarding the supply, with one condition: the competition has to be a fair one ! Here we have the relevant institutions that need to oversee. Another important aspect is that the liberalization will lead to greater orientation towards the client, from the players in the sector, which is not bad. Beyond the price, the patterns of supply and demand will change, and the energy suppliers must adapt in order to provide various services and why not even other utilities, within a package,” said the President of the Board of Directors of Electrica S.A.
Another risk high up on the agenda of the electricity distributor is the one regarding regulations, noted Cristian Bușu.
“In terms of risk, I want to once again emphasize the regulatory change and the lack of predictability. I say, first of all, on behalf of the companies listed on stock exchanges in Bucharest and London: the predictability for investors is essential. The overnight change of the regulated rate of return or of the legislation that sets the tariffs in the distribution area, for example, are some experiments that should not happen again if we want to attract investors or, at least, to enter into normalilty”, he concluded.