Romanian electricity distributor and supplier Electrica recorded a net loss in the amount of 111.5 million euros at the group level in 2021, compared to a profit of 78 million euros in the previous year. The loss is mainly due to higher electricity purchase prices.
The revenues of the Electrica Group amounted to 1.45 billion euros in 2021, which is an increase of 10.4 % compared to the previous year. In the supply segment, revenues were higher by 15.1 %, in the context of the evolution of electricity sales prices on the retail market, the increase of the amount of energy supplied on the retail market by 1 %, but also the increase in revenues from green certificates.
In the distribution segment, revenues were 0.7 % lower, mainly due to the decrease in revenues related to the construction services of electricity networks from concession agreements, negative impact offset by the increase in distribution tariffs and volumes of distributed electricity, by 5.7 %.
Costs for the purchase of electricity and natural gas increased by 45.8 %, to 1.15 billion euros in 2021. In the supply segment, the costs of purchased electricity and natural gas increased by or 36.7 % compared to 2020. This represents the effect of the significant increase of the purchase prices of electricity, increase in both the competitive and the universal service and last resort segment, which in 2020 was a regulated segment and was influenced by the recovery, in the form of positive corrections, of previous years, when the tariffs approved by ANRE were below the actual purchase price of electricity, an effect that did not exist in 2021.
In the distribution segment, the costs of purchasing electricity to cover technical losses increased by 58.7 %, also due to the significant increase in electricity purchase prices. The effect of the increase in electricity purchase prices was felt mainly in the third and fourth quarters, when the increase in prices was 36 and 167 % respectively compared to the same period in 2020.
Electrica’s CEO Corina Popescu said that the entire energy market faces crucial challenges both at national and European level. The accelerated increase in energy purchase prices recorded in the second half of 2021, but also the uncertainties generated by the changes in the legislative framework have resulted in a significant deterioration of the financial situation of distribution operators, but especially of electricity supply companies. and natural gas. The measures taken by the authorities during this difficult period have led to additional costs for companies in the field, exposed to extremely high market prices, with a direct impact on the operational cash flow, which jeopardizes their financial viability.
