Romania's Energy Assets Management Co Seeks Damages Payment from Electrica

Romanian power supplier and distributor Electrica [BSE:EL] said on Wednesday it is intalks with the state energy assets management company, SAPE,to clarify its request for the payment of 304.9 millionlei ($77 million/68.9 million euro), $1.3 millionand 45.9 millioneuro in alleged damages caused by Electrica.

"Based on the facts available at the moment, Electricaconsiders SAPE's request unreasonable and unsubstantiated, SAPEhaving the qualityof universal successor for Electrica," the companysaid in a statement filed with the Bucharest Stock Exchange.

SAPE claims thealleged damages were caused by Electrica's historical failure to monitor the fulfilment of the post-privatisation obligations undertaken by the investors who acquired shares issued by the privatised companies for which Electrica acted as seller,as well as its failure to provide certain documents requested by SAPEfor the identification of theresponsible individuals.

SAPE was incorporated, prior to Electrica's privatisation, as a result of Electrica's spin-off in the interest of the company's sole shareholder at the time, the Romanian state, andhas taken over all rights and obligations of Electrica arising from the privatisation agreements, including the related disputes commenced by Electrica, the companyadded.

At this time, Electrica is not aware of any legal action procedure or measure initiated by SAPE against it.

Last month, financial daily Ziarul Financiar saidRomania has lost a case against Germany's E.ON at the International Court of Arbitration in Paris and should pay about 2 million euro to the company in legal expenses.Romania had filed the case against E.ON, asking the company to pay 33 million euro for failing to comply with certain conditions included inthe privatisation contract of power distributor Electrica Moldova.

Romania has sued several companies that bought Electrica subsidiaries but has been losingthe cases one by one.

Blue chip Electrica issimultaneously listed on the Bucharest Stock Exchange and the London Stock Exchange with a free float of 51.2%.Its shares were changing hands down0.55%at 12.74 lei by 1133CET on the Bucharest Stock Exchange.

The Electrica group operates in highly populated and industrialised areas of Romania. Electrica’s distribution business operatesnearly 8,500 kmof high voltage lines, some 46,000 km of medium voltage lines and around 135,000 km of low voltage lines.

Source: SeeNews