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May 8, 2021

Senate Commission report on Enel, finalized: the company observes privatization contract and invests in order to comply with ANRE plan

Clarifying the information presented yesterday by Nine o’Clock on the Senate Commission analyzing Enel’s investments in Muntenia Sud, the company representatives have stated that Enel is respecting all agreements and laws in force in the country and will continue to do so. According to Enel, the Senate Commission analyzed two different Investment Plans, although the subject was the privatization agreement. The first one, the investment plan as agreed in the agreement of Enel Muntenia Sud is fully respected, requiring for the period 2009-11 to spend an aggregated amount of EUR 220 M, approximately 850 million Ron. In the first year, 2009, Enel has invested RON 407 M , well above the investments level foreseen in the privatization agreement. Enel will therefore keep the investments pace as stated in the contract. Enel explains also that the second investment plan analyzed by the Senate Commission is the ANRE plan, which provides a different time frame (2008-2012) for the commitments and different rules for considering eligible expenses. The fulfillment of this plan will be considered at the end of year 2012, according to legal provisions in force. It must be said that this plan was approved in 2007 considering the end of the privatization process in that year, while Enel started to run Muntenia Sud in June 2008. The late end of this process, for reasons beyond Enel’s control and related to bureaucratic procedures, has caused a delay in the start of investments, which is being recovered in 2010 and 2011. Enel has no doubts about respecting both investment plans and meeting all requirements of the privatization contract and the Regulatory provisions. The compliance with the investment plan for ANRE is evaluated at the end of the regulatory period, in 2012.

Besides the topic regarding investments, Enel representatives provided explanations also about a couple of other issues mentioned in the Senate Commission report, namely the award of dividends and the contracts closed by the company with affiliated companies. As regards the award of dividends, the company underlines that the General Shareholders Meetings of all the distribution and supply companies owned by Enel in Romania decided to register the net profit as “Retained Earnings”, therefore the net profit (where the case is) can be distributed as dividends as soon as a decision is taken in this respect. Finally, Enel mentioned that the company acts as a reputable investor in Romania, like in all countries where it is present, complying with the legal and regulatory provisions and meeting its commitments towards its clients. Moreover Enel acts as a partner of the community and a local citizen, being involved in several projects supporting education, culture and social causes, with focus on disadvantaged categories, sick or orphan children.

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