The Electrica distribution and supply group (stock market symbol EL) has given up its plan of becoming a renewable energy producer, a project started in 2010. Through this decision it will save RON 292 M this year from its investment plan.
The group’s decision appears in the management’s answer to an address filed by the majority shareholder – the Economy Ministry’s Department for Energy, holder of 48.78 per cent of the shares – which asked for explanation for the 50 per cent reduction in the investment plan for 2014, from RON 989.2 M to RON 457 M. Electrica’s shareholders will discuss this year’s revised budget in a general assembly meeting on December 18.
“Compared to the initial investments plan, Electrica SA gave up the wind farm project, namely the investment of approximately RON 292,000 in the production of renewable energy,” the answer signed by director general Ioan Rosca reads. The remaining difference comes from the elimination of investment projects belonging to Electrica Furnizare and Electrica Serv.
On Friday, November 28, Electrica shares dropped 0.6 per cent to RON 11.5 per share. At this level the group has a stock market capitalization of RON 3.978 bln.