Electrica - AnnualReport 2009 Eng (m3)

coperta
ELECTRICA DISTRIBUIE TRANSILVANIA SUD

with registered office in Brasov is Romanian legal company, one of the 8 system distribution operators (OD) of Ro-
mania.
It consists of six subunits referred to as power distribution branches - SDEE, running its activity in the following coun-
ties: Alba, Braov, Covasna, Harghita, Mure and Sibiu, on an distribution area of 34 100 km2.
Structure of shareholding
Electrica SA: 78%
Fondul Proprietatea SA : 22%
YEAR 2009
Distribution area: 34 100 km2
Network overall length: 52 321 km
Power distributed: 4 627 GWh
Number of consumers: 1,065 million
Share capital: 423 967 400 lei, (100 056 026 )
Turnover: 539 192 721 lei, (127 249 126 )
Investments: 150 713 thousand lei, (35 568 thousand )
2 Raport anual 2009

TABLE OF CONTENTS
MESSAGE OF THE GENERAL DIRECTOR 04
MISSION VISION VALUES 05
GENERAL INFORMATION 06
CALENDAR OF EVENTS 08
HUMAN RESOURCES 09
POWER DISTRIBUTION 10
INVESTMENTS 15
INTEGRATED MANAGEMENT SYSTEM 17
FINANCIAL STATEMENTS 18
www.electricats.ro 3
MISSION
We distribute electric power to all customers of the region of South Transylvania, at high quality standards and continuity in
supplying, in conditions of safety, efficiency, and respect for the environment.
VISION
We shall be the most innovating electricity company in Romania, providing to our customers the benefits of our valuable
knowledge in the field and the highest class services.
VALUES
Customer
The behavior encouraged by us is customer orientation, both towards the foreign and domestic customers, which makes
us constantly making the proof of the desire to creatively, intelligently and emotionally contribute in solving problems and
focus our efforts not on the issue itself, but on the solution thereof.
Commitment means: Involvement, creativity, responsibility, flexibility, empathy in customer relations, and all this gene-
rate trust: our customers trust means confidence in the future, confidence in own powers and success.
Results and efficiency

People, the society is continuously changing and the new social economic context allowing us to operate as an organization
requests us to conceive out business from efficiency point of view and the results are our incentive.
Efficiency means profit for investors, and the results /efficiency as value, are translated in responsible behaviors towards the
use of entrusted resources, in setting forth proprieties and making correct decisions, in finding new modalities of revenues,
in cooperation and professional services aimed at the optimization of the cost quality relation.
Active involvement and team work

The company gives a special care to its employees, considering that their work, imagination and energy are the resources
supporting the achievement of its target. By interaction and mutual stimulation of ideas, whatever the mission, the result
obtained by a team is higher than the sum of the individual results of the team members, if they had to work independently.
But the company wants them work together, that is why we consider that any effort of each employee is useful to promote
team work. The force of the team consists in tenacious following of a common goal, by continuous involvement in any acti-
vity, promotion of an open, honest communication which supposes listening and answering /response to communication,
mutual support and willing joining of competences, abilities, information and expertise held by each individual.
Ethic behavior
The activitys efficiency can only be reached by a favorable, incentive work climate, where the employees are encouraged
to have results. We want our employees to love working for us, and this highly depends on observing ethic working rules.
Honesty, professionalism, harmonious interpersonal relations, pride of the well done thing, respect, cooperation form a profile we
want to build together.
Innovation and opening to new

The company intends to build and promote the image as pioneer. For such purpose, the way we selected is innovation, which
must be regarded as a challenge. The innovation shall be present in all fields and all activities : Engineering, work processes,
work methods, interpersonal relations, communication, attitudes, customer approach This involves the approach of each
customer, action, project or issue in an individualized manner, compliant with the requirements, context and particularities,
supposes thus to leave aside the routine. The behaviors we continue to encourage, which makes us learning and adjusting
on a permanent basis are: flexibility, open mindedness, initiative and responsibility.
Safety
Since we activate in a high risk field, the reality that determined a strong rule establishment of the work processes inside
power equipment, the safety of the worker and of the team, the safety of the power operation and the safety of our citizens
when getting in contact with the power equipment represent one of the main concerns of our agency. Its presence in our
daily vocabulary, concerns, plans and activities, starting from the access of a new employee in the company, indicate the fact
that safety is an essential value for all of us.
Community and environment

The companys interaction with the environment, in general and with the local community, in special, is multiple, complex
and an important stake. to have a performing company and to contribute in the increase of the life standard of our citizens.
We wish to integrate in the business environment, in the local community and to promote programs protecting the envi-
ronment. Our purpose is to build a win-winner type relation with the local community, which shall be achieved by paying
attention to the current and future needs, acting in a responsible, civil initiative and commitment way under the motto
A better world for all of us!.
4 Raport anual 2009

MESSAGE OF THE GENERAL DIRECTOR
2009- Keyword: prudence
This report is intended to introduce Among the important goals achieved we mention: mo-
the results of the activity of the company in dernization LEA 20 kV Bartolomeu PT 8029 - connections PA 80
2009, and also the issues that negatively in- Stupini ( SDEE Braov), source 20 kV Station Tractorul (SDEE Braov),
fluenced its business during the said period. modernization of substations in Reghin (SDEE Mure), double
We are talking about the mea- circuit Moeciu-Bran (SDEE Braov), modernization LEA 0,4 kV Ocna
ning of 2009 in terms of the second year Mure, Drleti, Lunca Larg (SDEE Alba). We should underline that
of the regulation period 2008- 2012, in 2009 was completed the investment SAD LEA MT, stage 2, inte-
still under influence of unbundling pro- grating in the automatic distribution system (overhead MV lines)
cess, namely separation of distribu- a number of 100 reclosers and 60 remote controlled separators.
tion and supply activities, as a result of The most important goals commissioned in 2009
observance of the Directives of the Eu- were: increase in power distribution capacity in the area Braov
ropean Parliament and Council, derived Triaj-Hrman (SDEE Braov), modernization of station 110 kV Sf.
from the fact that Romania is member of the European Union. Gheorghe (SDEE Covasna), increase of safety level by expansion
The provisions of Directive 2003/54/EC on separation and modernization of station 110/20 kV Dumbrava (SDEE Sibiu).
were taken over by the national legislation through the Power We have also considered the following works: sta-
Supply Act no. 13/2007 art. 45 and presented in details as action 110/20 kV Poiana Braov and switching to 20 kV area Poiana
tual modality for achievement of the separation of branches SC Braov, switching to 20 kV industrial area Tg. Mure, increase of
Electrica SA, inthe Government Decision no. 675/09.07.2007. On July distribution capacity to 110 kV area DN 73 Braov-Cristian (Station
13, 2009, Directive 2003/54/EC was replaced by Directive 2009/72/ 110/20kV INA Schaeffler), modernization of station 110/27,5/20/6 kV
CE on common rules applicable to electric power internal market. Zizin (Braov), modernization station 110/20/6 kV Vlhia (Harghita).
As predicted since last year, 2009 was influenced by the The activity was operationally managed to
national economy decrease, because of the international eco- reach quality standards of distribution service and
nomic and financial crisis emerged in Romania at the end of 2008. assurance of continuous supply of power and accom-
Obviously this crisis, especially in real estate, construc- plish of maintenance plan for absolutely necessary works.
tions, manufacture of assets, tourism field caused a total economic Investments have also been made to provide effi-
decrease by 10-15%, implicitly of power consumption in the area ciency of activity by implementation of computerized projects,
served by the subsidiary, namely decrease of distribution range by 5% as follows: completion and transfer to production of custom-
and distributed power by 8%. Also, based on the decrease of econo- er management, SAP- ISU, supervision of proper operation
mic activity, the number of new connection works decreased by 9.37 %. of already implemented projects, employees management,
Based on the predictions available at the end of 2008 SAP-HR and start of implementation for 2010 of new connec-
regarding the economic crisis that affected the area where the tions management, SAP- MAR. These computerized projects will
subsidiary is running business, 2009 was placed under caution mark. prove useful thanks to providing real time management of the
Actually, the motto of 2009 was caution, i.e. we had to better use re- relation with current and future clients, as well as employees.
sources and existent potential, by restrictive actions of decreasing The subsidiarys activity, as system distribution
costs in order to reach our extremely high goals under crisis context. operator, for 2009 mainly followed to increase servi-
Since the beginning of the year energetic measures have ces provided to over 1, 064 million consumers in the opera-
been taken as a reaction to the crisis context by implementation of ting area and to branch customers - more than 40 power
an anti-crisis programme of serious decrease of all costs that do not suppliers operating this year in the South Transylvania region.
directly influence the activity; establishing a periodi- In conclusion, in 2009- crisis year we have reached pro-
cal crisis budget, monthly monitoring and careful ma- posed quality goals, because we have anticipated from the
nagement of cash flow, careful analysis of influence of con- end of 2008 the special year to come, setting out in the begin-
sumption to efficiently forecast the purchase of power. ning of 2009 an anti-crisis plan to restrict costs, to provide more
`We have considered the implementation of a re- efficiency to all activities, to periodically monitor the activity.
strictive salary-based policy as regards employments and de- Despite this year of crisis, the financial perfor-
crease of employees training and development programs. mance of 2009 was similar to the last year as regards the turn-
We have established funding solutions to reach ex- over, that was 539,192,721 lei (127,249,126 ), the gross
tremely high goals as regards investment works. We have result exceeding the last year, i.e. 31,460,727 lei (7,424,711 ).
found financing solutions from own sources, we have con- The achievements of 2009 made by FDEE Electrica
tracted delayed payment investments and capital con- Distribuie Transilvania Sud represent the results and the actions of
tribution from shareholders for highly important works. the six branches of power distribution- SDEE, operating the follo-
It was a top rank year from investment point of wing counties: Alba, Braov, Covasna, Harghita, Mure and Sibiu, on
view, exceeding for the first time the amount of 150 million lei an operating area of 34 100 km2.
(35.5 million euro). The works for new connections to the net-
work were important as value, as a result of the influence of
2008 an important growth year for Romania. Major invest- Dipl. Eng. Ioan ROCA
ments were made at subsidiaries of Braov, Mure and Sibiu. General Director
GENERAL INFORMATION
GENERAL ASSEMBLY OF SHAREHOLDERS

Cristiana CHIRIAC - representative of SC Electrica SA
Alexandru POPESCU - representative of SC Fondul Proprietatea SA
BOARD OF ADMINISTRATORS
Dumitru BRSCU - chairman
Marian GEANT - member
Ioan ROCA - member
Gheorghe GRUSEA - member
Dan SOREA - member
SUBSIDIARY DIRECTORS
Ioan ROCA - General Director
Eugenia Mara - Economic Director
Radu Holom - Distribution Director
Ion Dobre - Technical Director 110 kV
Ctlin GRAMA - Development Director
BRANCH DIRECTORS
Ioan PERJU - SDEE Alba
Ioan TOMA - SDEE Braov
Ion G. MOLDOVEANU - SDEE Covasna
Artur KOVACS - SDEE Harghita
Florin Vasile FLOREA - SDEE Mure
Iacob BLAGU - SDEE Sibiu
IDENTIFICATION DETAILS
S.C. F.D.E.E. Electrica Distribuie Transilvania Sud - S.A.
25 Pictor Luchian street 500193- Braov
Trade Register number: J08/238/05.03.2002
Company identity code : RO 14493260
Phone: 0268-30 5999
Fax: 0268-30 5004
e-mail: fdee@electricats.ro
site: www.electricats.ro
6 Raport anual 2009

MAIN ACTIVITIES
Operation of Maintenance
110 kV of secondary
installations installations
Development Main
and activities of
modernization the Coordination
distribution by dispatcher
of power subsidiary
installations
Operation and
Management maintenance
of system of medium
informatics and low
voltage
installations
Staff structured per study category

Electrica Distributie Transilvania Sud
having as main business object the distribution of power, power transit through own networks, allotment of power
by distribution operator, modernization and reengineering of the existent power equipment, as well as expansion
High education
of automation, research in its field of activity, according to the Distribution License no. 465 of 2002, amended on
04.10.2007 by the Decision of the National Energy Regulatory Authority. staff
29%
Average educatio
7
staff
www.electricats.ro
CALENDAR OF EVENTS
Modification of specific tariffs for the power distribution service provided by the main distribution operators, Order
01.01.2009
ANRE 130/2008
14.01.2009 Modernization LEA LV Moieciu de Jos, Braov County
20.02.2009 Modernization PT increase safety degree in supplying electric power region Poiana Braov
12.03.2009 Power injection Glua, area PTA 1, county Harghita
01.04.2009 Change of organizational structure of the subsidiary, by setting up Development Division

Obtaining by the subsidiary, within the third edition of the Business Excellent Awards, of the Excellence Diploma
10.04.2009
from the Chamber of Commerce and Industry of Braov for special results
27.04.2009 Modernization LEA lv Trnveni, county of Mure
Re-certification of the integrated management system quality-environment-health and occupational security of
07.05.2009
FDEE
15.05.2009 Modernization LEA 0,4 kV Vadu Moilor, county Alba
01.06.2009 Modification of tariffs covered by the Rates catalogue for Works and services rendered to third parties
12.06.2009 Modernization of connections areas with increased CPT- CE Reghin, Hodac, Toaca, county of Mure
16.06.2009 Modernization of connections, area CE Tg. Mure
23.06.2009 Modernization LEA lv and improvement of voltage level Gurghiu- Orova, county of Mure
29.06.2009 SAD connection station Malna, County of Covasna
30.06.2009 Electrician Trophy contest, branch stage, held at Alba Iulia
01.07.2009 Modernization LEA 0,4 kV Rdeti county of Alba

Electrician Trophy contest, national stage held in Cluj Napoca. Subsidiary winning the 1st place individual and
17.07.2009
teams at section PRAM
07.08.2009 Partial commissioning of SAD PA- PT, county of Mure
12.08.2009 Modernization station 110/20 kV Sfntu Gheorghe, county of Covasna
20.08.2009 Modernization station 110/20 kV Sfntu Gheorghe, county of Covasna
25.08.2009 Expansion of networks district Tineretului, mun. of Sibiu
28.08.2009 Increase of safety level Station 110/20 kV Dumbrava, Sibiu
03.09.2009 Modernization PT- s Reghin, county Mure
22.09.2009 SAD LEA mv county of Braov County

Ist place NATIONAL TOP OF COMPANIES- regional stages awarded by the Chamber of Commerce and Industry of
23.10.2009
Braov
26.10.2009 Modernization of distribution networks county of Sibiu
29.10.2009 Modernization LEA 20 kV Bartolomeu PT 8029 Connections- PA 80 Stupini
29.10.2009 Rehabilitation of LV networks Lung Street, Braov
30.11.2009 SAD PA- PT county of Sibiu
30.11.2009 Switching to 20 kV industrial area Trgu Mure
11.2009 SAP IS-U extension commissioning
15.12.2009 Increasing the distribution capacity of electric networks in the regions of Braov Triaj-Hrman
23.12.2009 Modernization LEA 0.4 kV Lunca Larg, county of Alba
28.12.2009 Modernization LEA 0.4 kV Drleti-Trifeti, county Alba
29.12.2009 Repair and modernization LEA lv, Carierei Street, Braov
30.12.2009 Modernization LEA 0.4 kV Ocna Mure, county of Alba
30.12.2009 Modernization LEA 0.4 kV Ponor, county of Alba
8 Raport anual 2009

Development Main
and activities of
modernization the Coordination
distribution by dispatcher
of power subsidiary
installations
HUMAN RESOURCES
Operation and
The staff remains below the number approved by organization chart, at the end of 2009 a number of 1835 individuals were working under
individual employment contract. Management maintenance
of system of medium
informatics
Following necessity to coordinate and development,
subsidiary and distribution branch low the Development Division was set up on 01.05.2009.
voltagepromoting new technology, design and study activity coordina-
The main goals of the new division are to draw up RED development strategy,
tion, investments, purchases, new power consumers access to the network.
installations
Training and professional development of employees was and continues to be priority to our organization. In 2009 a number of 344
employees took part in professional formation training programs, i.e. 19% of the average number of employees. Stress was especially put on
certification of staff in electric power field, approximately 25% of the total of participants in professional training courses being trained in this
field.

High education
staff
29%
Average education
staff
Workers 5%
62%
Foremen
4%
Staff structure per age

Over 60 years Between 20-30
3% years
Between 51-60
8%
years Between 31-40
29% years
27%
Between 41-50
years
33%
Ref.no. Equipment M.U. Total

1 LEA 110 kV km 2.277
2 MV km www.electricats.ro 9
10.100
29% years
27%
POWER DISTRIBUTION
Between 41-50
years
33%
VOLUME OF EQUIPMENT
Ref.no. Equipment M.U. Total

1 LEA 110 kV km 2.277
2 MV km 10.100
3 LV km 14.351
4 branches km 16.137
5 LES 110 kV km 14
6 MV km 2.927
7 LV km 5.123
8 branches km 1.394
9 110 kV stations pcs 94
10 MV stations pcs 5
11 PA and PT pcs 7.920
SC FDEE Electrica Distributie Transilvania Sud SA

provides power distribution services to users connected to RED, consumers and electricity generators, covering
a geographical area of around 34,000 km2, including six counties, namely: Alba, Brasov, Covasna, Harghita, Mures
and Sibiu.
10 Raport anual 2009

QUALITY AND CONTINUITY IN SUPPLY OF ELECTRIC POWER
In 2009, 1,898 incidents occurred, 326 incidents less than in 2008. The average duration of
remedy of incidents in 2000 was 2,11 hours, and the power supply non-delivered because of inci-
dents was 2,321,350 kWh.
The number of incidents reported in 2009 was 44,861, as to 55,988 in 2008.
More than half of incidents resulted from improper quality of materials.
Situation of incidents according to causes
1. Deficiencies in conception and design of the equipment
2. Deficiencies in manufacture of equipment
3. Deficiencies in equipment construction-assembly
4. Improper material quality
5. Operation of maintenance - unsuitable repairs of equipment
6. Demands over designed limits of equipment due to

accidental external factors
7. Inaccurate operation of computer and communication

equipment
8. Special meteorogical conditions
9. Causes out of the equipment manager control
10. Unindentified causes
0 200 400 600 800 1000 1200
POWER MANAGEMENT
2008 2009
E input - E output 5.628 GWh 5.362 GWh
Distribution outline
E input 6.425 GWh 5.955 GWh
Power plant consumptions 5 GWh 39 GWh
Power distributed to captive clients 3.266 GWh 2.999 GWh
Power distributed to FFEE eligible 453 GWh 424 GWh
Power distributed to other suppliers eligible 1.137 GWh 1.188 GWh
Administration (FDEE + FFEE) 26 GWh 16 GWh
CPT (%) 11.46 GWh 12.29 GWh
Border input power 2002-2009 (GWh)
6425
6293
6202
6003 6000 5955
5717
5650
2002 2003 2004 2005 2006 2007 2008 2009
Distributed power for eligible consumers 2009

MARKET SHARE of the 16 electricity suppliers on the distribution area of South Transylvania.
At the end of year 2009 in the area of distribution FDEE acted 41 power suppliers. Suppliers that distributed the
highest amount of1.36%
power to eligible customers were: FFEE Electrica Transilvania Sud more than 25% followed by SC
Buzmann Industries SRL more 1.10%
than 21% . 0.89%
1.57% 0.83%
2.11%
2.11% 25.72%
2.50%
Distributed power for eligible consumers 2009
0.00%
5.00%
10.00%
15.00%
20.00%
FFEE TRANSILVANIA SUD 25.00%
30.00%
SC BUZMANN INDUSTRIES SRL
25.72%
SC TINMAR-IND SA 21.15%
9.93%
SC ELECTROMAGNETICA SA
8.82%
SC EURO - PEC SA 5.82%
SC ELCOMEX EN SRL 5.06%
SC ICCO ELECTRIC SRL 2.65%
SC PETPROD SRL 2.59%
SC ENEX SRL 2.50%

SC HIDROELECTRICA SA 2.11%
SC CET BRASOV SA 2.11%
SC ARELCO DISTRIBUIE SRL 1.57%
SC TRANSENERGO COM SA 1.36%
SC RENOVATIO TRADING SRL 1.10%
SC ENNET GRUP SRL 0.89%
SC TOTAL ELECTRIC OLTENIA SA 0.83%
Evolution of eligible+captive consumers (per total and per

voltage levels)
3,500,000.00
3,000,000.00
2,500,000.00
2,000,000.00
MWh
1,500,000.00
1,000,000.00
500,000.00
0.00
Total High voltage Medium voltage Low voltage
2008 2009
0.00
Total High voltage Medium voltage Low voltage
2008 2009
Evolution of eligible consumers

1,800,000.00 Evolution of captive consumers
1,600,000.00
3500000.00
1,400,000.00
1,200,000.00 3000000.00
1,000,000.00 2500000.00
MWh
2008
800,000.00
2009 2000000.00 2008
MWh
600,000.00 2009
1500000.00
400,000.00
200,000.00 1000000.00
0.00 500000.00
Total High voltage Medium Low voltage
voltage 0.00
voltage
Achievements of investments program, on financed sources,

CUSTOMERS PORTFOLIO thousand lei
On 31.12.2009 S.C. FDEE Electrica Distribuie Transilvania Sud SA provides power

Connectiondistribution
fee service to 1,064,391 Own sources
captive
34%
and eligible cus-
32%
tomers:
eligible (0,08%)
captive consumers, other than domestic (7,12%)
domestic consumers (92,80%)

Contribution to Credit
capital 16%
18%
Class of consumers 2008 2009

Eligible 581 819
Captive consumers, other than domestic 75.778 75.769
Domestic consumers 981.620 987.803
Total 1.057.979 1.064.391
DISTRIBUTION TARIFFS
The specific tariffs for the distribution service are regulated by ANRE for each system distribution operator active in Romania. In 2009, the
tariffs fixed by ANRE Order 130/2008, for power distribution per voltage levels for FDEE Electrica Distribuie Transilvania Sud SA have been the
following:
HV 21,00 lei/MWh
MV 34,96 lei/MWh
LV 109,03 lei/MWh

2500000.00
2000000.00 2008
MWh
2009
1500000.00
INVESTMENTS
1000000.00
INVESTMENT PROGRAM
500000.00
220,430 thousand lei (connection fee included);
150,713thousand lei (excluding connection fee, 126.92 % of the total investment program for 2009), of which:
achievements based
0.00on own sources: 75,200 thousand lei (107.08 % of SP program);
achievements on credit supplier: 36,475 thousand lei (196.63 % comparing to credit supplier plan);
achievements per contribution to capital: 39,038 thousand lei (130.12 % comparing to capital contribution
program); voltage
achievements per connection fee: 69,717 thousand lei
Achievements of investments program, on financed sources,

thousand lei
Connection fee Own sources

32% 34%
Contribution to Credit
capital 16%
18%
Investment program for 2009 was oriented towards some main directions, such as:
lines and stations 110 kV;
reengineering, modernization of MV and LV power equipment;
supply of power to new consumers ( RMLV ) ;
improvement of distributed and supplied power quality;
CPT decrease;
MV distribution automatization
purchase of independent machinery.
It was recorded the highest number of investments in the recent history of the subsidiary (over 150,000 thousand lei);
For the first time the total volume of investments made (connection fee included) exceeded 200,000 thousand lei,
namely 220,430 thousand lei;
PIF COMMISSIONING
PIF amounting to 111,897.08 thousand lei, namely 109.21 % of the approved PIF plan was achieved, and
137 investment objective were commissioned (partially or fully), most of them being lv LEA moderniza-
tions.
CONNECTION OF NEW USERS TO RED
Year 2009 was a top year as regards the high number of approvals of new users connection to RED.
Thus, 34352 technical connection approvals were issued, 39% more than the previous year. Most of them
were in counties Sibiu, over 8000, Mure over 7000 and at Alba over 5000.
In exchange, 25.9% less location approvals were issued as compared to 2008, namely 10620 per total sub-
sidiary, most of them for Braov county, over 3000, and Mure over 2000.
POWER RENEWABLE SOURCES
Besides connection of new consumers to RED, SC FDEE Electrica Transilvania Sud SA is concerned with its
quality as operator providing public utility service - electricity and preparation of energetic equipment
held, in view to connect power renewable sources generators.
This aims at aligning European energy policy goals (20/20/20) for 2020 on increase of security in power su-
pply, providing continuity in supply and at the same time subject to the environmental protection rules.
This mainly assumes the creation of an intelligent Smart Grids type network. Since Smart Grids will be the
intelligent brain optimizing, controlling, providing and securing resistance of purchase and distribution of
cleaner power, in the serviced area, actually integration of large distribution networks, renewable energies,
forecast, demand management.
In the area serviced by our subsidiary, renewable power sources used for which technical connection ap-
provals were requested in 2009 were the following: water, solar and biomass and wind energy.
10 ATR were issued, most of them in Alba, 4 approvals, Sibiu 3 and 1 for Braov, Harghita and Mure. Re-
quests for connection were both for low voltage and medium voltage.
Increasing interest manifested in South Transylvania are to produce power from SRE will contribute in su-
pporting the branch for investments necessary to develop Smart Grids and to contribute in stimulating
sustainable development at local and regional level.

INTEGRATED MANAGEMENT SYSTEMS
For 2009 the main goal set forth by management of Subsidiary Electrica Distributie Transilvania Sud
was the revision of the integrated quality-environment-occupational health and security management
system documentation for conformity with requirements of the new edition of standard OHSAS 18001 (SR
OHSAS 18001:2008) and maintaining certification in relation to standards ISO 9001 , ISO 14001 and OHSAS
18001.
Besides alignment to the requirements of OHSAS 18001 standard, the system reconfiguration consi-
dered legislation and organization changes occurred during this period and of course the company situa-
tion from the point of view of its position within the economic environment - following separation its ac-
tivity develops in a regulated domain only. In this context, the general goals of the company as well as the
specific goals with functions and relevant levels were necessarily oriented to satisfaction of requirements
of regulations, especially conditions related to the power distribution license no. 465 and Performance
standard for the service of power distribution approved by ANRE Order no. 28/30.08.2007.
For this purpose we have established a Program to update the documentation of the integrated quality-
environment-occupational health and security management system to prepare SRAC surveillance audit pro-
viding the actions, the terms and the persons in charge for necessary updates.
We have also made activities specific for external audit preparation, the most important being: settlement
and communication of policies and general goals of S.C. FDEE Electrica Distributie Transilvania Sud S.A.
in the domains of quality, environment and work security, settlement of the specific goals of functions
and relevant levels from the organizational structure, updating ROF and job descriptions with the proper
specification of the responsibilities, elaboration of the documentation of the integrated system quality-
environment-work security, evaluation and priority of the environment aspects, revaluation of the perils
and risks by updating risk forms, implementation of the documentation of integrated management sys-
tem quality-environment-work security and internal auditing as well as surveys made by the management
in order to evaluate the stage of implementation and settlement of the necessary correctional actions.
Actions were carried out for preparation of the audit that supervises the integrated management sys-
tem have proven to be efficient on the occasion of the audit made by SRAC in the period 04-07.05.2009
when were audited the main office of FDEE and the subsidiaries Braov and Mure. At the end of this audit,
SRAC auditors established the conformity of the management system implemented by FDEE Electrica Dis-
tributie Transilvania Sud with the requirements of the aforementioned standards.
Conformity of the integrated management quality environment occupational health and security
implemented by FDEE Electrica Distribuie Transilvania Sud with the requirements was also revealed by the
audit made by the auditors Electrica Bucharest in the period 24-27.11.2009 at the main office of FDEE and
subsidiary Sibiu..
In the final period of 2009 we have mainly acted to prepare SRAC surveillance audit in the spring of
2010, with special stress on alignment of documentation specific to quality management system with the
requirements of standard SR EN ISO 9001:2008.
FINANCIAL STATEMENTS
Independent auditor report
In the attention of the shareholders of

SC Filiala de Distributie a Energiei Electrice Electrica Distributie Transilvania Sud SA
Report on the financial statements
1. We have audited the enclosed financial statements of the company SC Filiala de Distributie a
Energiei Electrice Electrica Distributie Transilvania Sud SA (The Company) that cover the
balance sheet at December 31st 2009, the profit and loss account, the equity capital changes
statement and the cash flow statement for the tax year that ended upon that date and a
summary of the significant accounting policies and other explanatory notes, numbered from
page 1 to page 35. The aforementioned financial statements refer to:
The net assets / total capitals 822,370,396 lei

Net profit of the tax year 23,178,213 lei, profit
Directors responsibility for the financial statements
2. The companys management board is responsible for the draft and accurate disclosure of these
financial statements according to the Order of the Ministry of Public Finances (OMPF) no.
1752/2005 with subsequent amendments and with the accounting policies described in the
notes to the financial statements. This responsibility includes: designing, implementing and
maintaining an internal control relevant for drafting and accurately presenting the financial
statements, without significant misrepresentations due to fraud or error; selection and
enforcement of the appropriate accounting policies; drawing up certain reasonable accounting
estimations under the actual circumstances.
Auditors responsibility
3. Our responsibility is that, on the grounds of the performed audit, to express an opinion on these
financial statements. We have made the audit in full compliance with the audit standards
adopted by the Romanian Chamber of Financial Auditors. These standards require us to
observe the ethical requirements, to plan and to carry out the audit in order to obtain a
reasonable assurance that the financial statements do not include significant
misrepresentations.
4. An audit resides in carrying out the procedures intended to obtain the audit evidences related to
the amounts and information disclosed in the financial statements. The selected procedures
depend on the auditors professional efficiency, including the assessment of significant
misrepresentation risks of the financial statements due to fraud or error. In assessing such
risks, the auditor takes into account the relevant internal control for the accurate drawing up
and disclosure of the financial statements of the Company in order to establish the audit
1
procedures relevant for the given circumstances but not in order to express an opinion on the
efficiency of internal control of the Company. An audit also includes the assessment of the
appropriateness of the accounting policies applied, as well as the how reasonable the
accounting estimations made by the management are, as well as the assessment of the
financial statements presentation, taken as a whole.
5. We consider the audit evidence obtained as a strong, sufficient and adequate basis to form our
audit opinion.
Opinion
6. In our opinion the financial statements provide an accurate image, from all significant point of
view, of the companys financial status on December 31st 2009, as well as of the result of its
operations and cash-flow for the tax year ended at this date, in compliance with the Order of
the Minister of Public finances no. 1752/2005 with subsequent amendments and accounting
policies described in the financial statements observations.
Other issues
7. This auditors report exclusively addresses to the companys shareholders. Our audit was
intended to provide information to the companys shareholders on the issues that should be
contained by the financial audit report and for no other purposes. As far as the law admits it, we
do not accept and we decline liability, except towards the company and its shareholders, on the
whole, for our audit, for this report and for our opinion.
8. The attached financial statements are not intended to disclose the financial status, the result of
operations and a full set of observations to the financial statements in compliance with the
accounting regulations and principles accepted in countries and jurisdictions, other than
Romania. Therefore, the attached financial statements are drawn up for the use of persons, not
acquainted with accounting and legal regulations in Romania, included the order of the Minister
of Public Finances no. 1752/2005 with subsequent amendments.
Report on the conformity of the administrators report with the financial statements
According to the Order of the Ministry of Public Finances no. 1752/2005, article 263 (2), we
have read the administrators report enclosed to the financial statements and numbered from
page 1 to page 31. The administrators report is not part of the financial statements. The
administrators report did not contain any financial information significantly non-compliant with
the information presented in the enclosed financial statements.
For and on behalf of KPMG Audit SRL KPMG Audit SRL

Illegible signature Illegible signature
Razvan Mihai
[Stamp Mihai Gabriel Razvan
Romanian Chamber of Financial Auditors
No. 2561 ]
Registered with the Romanian Chamber of Registered with the Romanian Chamber of
Financial Auditors under no. 2561/2008 Financial Auditors under no. 9/2001
Bucharest, April 22nd 2010
2
S.C. Filiala de Distributie a Energiei Electrice
Electrica Distributie Transilvania Sud S.A.
BALANCE SHEET
ON 31 December 2009,
(all amounts are expressed in LEI unless otherwise required)
Indicator line Note Balance in the Balance at the end of

beginning of the year the year
A B 1 2
A. FIXED ASSETS
I. INTANGIBLE ASSETS
1.Set-up costs (account 201-2801) 01 - -
2.Development costs (account 203-2803-2903) 02 - -
3.Concessions, patents, licences, trade marks and similar rights
and assets and other intangible assets (account 2051+2052+208-
2805-2808-2905-2908) 03 11.652.009 11.517.671
4.Goodwill (account 2071 - 2807 - 2907) 04 - -
5.Down payments and intangible investments (account 233+234-
2933) 05 - -
TOTAL: (line 01 to 05) 06 11.652.009 11.517.671
II. TANGIBLE FIXED ASSETS
1.Lands and buildings (account 211+212-2811-2812-2911-2912)) 07 752.870.497 815.831.838
2.Technical equipment and machinery (account 213-2813-2913) 08 331.886.821 373.712.920
3. Other equipment, machinery and furniture (account 214-2814-
2914) 09 1.734.030 1.734.138
4. Down payments and tangible investments in progress (account
231+232-2931) 10 58.986.692 84.852.614
TOTAL: (line 07 to 10) 11 1.145.478.040 1.276.131.510
III. FINANCIAL ASSETS
1.Shares with similar entities (account 261-2961)
12 - -
2.Credits granted to similar entities (account 2671+2672-2964) 13 - -
3.Participation interests (account 263-2963) 14 - -
4.Credits granted to entities to which the company is related by
virtue of participation interests (account 2673+2674-2965) 15 - -
5.Investments as fixed assets (account 265-2963) 16 - -
6. Other loans (account 2675*+2676*+2678*+2679*-2966*-
2968*) 17 388.134 422.956
TOTAL: (line 12 to 17) 18 388.134 422.956

FIXED ASSETS - TOTAL (line 06+11+18) 19 1.157.518.183 1.288.072.137
B. CURRENT ASSETS
I. INVENTORIES
1.Raw materials and consumables (account
301+3021+3022+3023+3024+3025+3026+3028+303+/-
308+351+358+381+/-388-391-3921-3922-3951- 3958-398) 20 1.452.620 3.613.542
2.Work in progress (account 331+332+341+/-3481+3541-393-
3941-3952) 21 - -
3.End goods and merchandise (account 345+346+/-3485+/-
3486+3545+3546+ 356+357+361+/-368+371+/-378-3945-3946-
3953-3954-3956-3957-396-397-4428) 22 - -
4. Payments for purchases of stocks (account 4091) 23 - -
TOTAL: (line 20 to 23) 24 1.452.620 3.613.542

II. RECEIVABLES
1.Commercial receivables (account 2675*+2676*+2678*+2679*-
2966*-2968*+4092+411+413+418-491) 25 7.523.145 9.595.497
2.Shares to collect from similar entities (account 451**-495*) 26 100.146.478 105.983.371
20 Raport anual 2009 1

BALANCE SHEET

A B 1 2
3.Amounts payable by entities to which the company is associate
(account 453-495*) 27 - -
4. Other receivables (account
425+4282+431**+437**+4382+441**+4424+
4428**+444**+445+446**+447**+4482+4582+461+ 473**-
496+5187) 28 9.361.911 2.176.039
5.Subscribed and not paid in share capital (account 456-495*)) 29 - -
TOTAL: (line 25 to 29) 30 5a) 117.031.534 117.754.907
III. SHORT TERM INVESTMENTS
1.Shares with similar entities (account 501-591) 31 - -

2. Other short term investments (account 505+506+508-595-596-
598+5113+5114) 32 - -
TOTAL: (line 31 to 32) 33 - -
IV. CASH AND BANK ACCOUNTS (account

5112+512+531+532+541+542) 34 72.429.716 38.087.873
CURRENT ASSETS - TOTAL (line. 24+30+33+34) 35 190.913.870 159.456.322
C. ADVANCE PAYMENTS(account 471) 36 176.835 122.669
TOTAL ASSETS 1.348.608.888 1.447.651.128
DEBTS: AMOUNTS BECOMING DUE AND PAYABLE

D. WITHIN ONE YEAR
1.Debenture loans (account 1614+1615+1617+1618+1681-169) 37 - -
2.Amounts owed to credit institutions (account
1621+1622+1624+1625+1627+1682 +5191+5192+5198) 38 - 6.789.597
3.Payments received on account of orders (account 419) 39 - -

4. Commercial debts - suppliers (account 401+404+408) 40 58.579.321 56.553.265
5. Trade effects to pay (account 403+405) 41 - -
6.Credits owed to similar entities (account
1661+1685+2691+451***) 42 75.876.411 88.067.366
7.Amounts owed to entities to which the company is related by
virtue of participation interests (account
1663+1686+2692+453***) 43 - -
8.Other debts, tax debts included and debts for social security
(ct.1623+1626+167+1687+2693+421+423+424+426+427+4281
+431***+437***+4381+441***+4423+4428***+444***+446*
**+447***+4481+455+456***+457+4581+462+473***+509+5
186+5193+5194+5195+5196+5197) 44 14.425.578 18.570.951
TOTAL (line 37 to 44) 45 5 b) 148.881.310 169.981.179
E. CURRENT ASSETS, NET CURRENT DEBTS (line 35+36-

45-62) 46 42.073.151 (10.571.238)
F.
TOTAL ASSETS MINUS CURRENT DEBTS (line 19+46) 47 1.199.591.334 1.277.500.899
22
BALANCE SHEET

A B 1 2
G DEBTS: AMOUNTS BECOMING DUE AND PAYABLE

WITHIN MORE THAN ONE YEAR
1. Debenture loans (161+1681-169) 48 - -

2. Amounts owed to credit institutions (account
l621+1622+1624+1625+1627+1682+519l+5192+ 5198) 49 - 10.921.818
3.Payments received on account of orders (account 419) 50 -
4. Commercial debts - suppliers (account 401+404+408) 51 52.777.059 57.580.087
5. Trade effects to pay (account 403+405) 52 -
6.Credits owed to similar entities (account
1661+1685+2691+451***) 53 14.996.186 10.990.512
7.Amounts owed to entities to which the company is related by
virtue of participation interests (account
1663+1686+2692+453***) 54 - -
8.Other debts, tax debts included and debts for social security
(ct.1623+1626+167+1687+2693+421+423+424+426+427+4281
+431***+437***+4381+441***+4423+4428***+444***+446*
**+447***+4481+455+456***+457+4581+462+473***+509+5
186+5193+5194+5195+5196+5197) 55 - -
TOTAL: (line 48 to 55) 56 5 b) 67.773.245 79.492.417
H RESERVES
1.Pension and similar obligations reserves (account 1515) 57 31.975.991 32.810.118
2.Reserves for taxes (account 1516) 58 20.723.238 22.965.817
3. Other reserves (account 1511+1512+1513+1514+1518) 59 8.672.511 4.365.771
TOTAL RESERVES: (line 57 +58+ 59) 60 2 61.371.740 60.141.706
I. REVENUES IN ADVANCE (account 131+ 472)

1.Subsidies for investment (account 131+132+133+134+138) 61 271.225.564 315.496.380
2.Revenues recorded in advance (account 472) 62 136.244 169.050
TOTAL (line 61 + 62) 63 271.361.808 315.665.430
J. CAPITAL AND RESERVES
I. CAPITAL (line 66 to 68) of which: 7
Subscribed and not paid in share capital (account 1011) 64 - -
Subscribed and paid in share capital (account 1012) 65 423.967.400 423.967.400
Contributions in advance to the share capital 65 bis 3.695.527 3.695.527
Patrimony of the administration (account 1015) 66 - -
TOTAL (line 64 + 66) 67 427.662.927 427.662.927
II. SHARE PREMIUM (account 104) 68 - -
III. REVALUATION RESERVE 69 481.801.580 378.140.018
(account 105)
IV. RESERVES
1. Legal reserves (account 1061) 70 10.269.994 11.843.030
2. Statutory or contractual reserves (account 1063) 71 - -
3.Reserves for the surplus from the revaluation reserve (account
1065) 72 4.687.351 108.348.914
4. Other reserves (account 1068) 73 43.836.359 43.836.359
23
BALANCE SHEET

A B 1 2
TOTAL (line 70 to 73) 74 58.793.704 164.028.303

Treasury stocks (account 109) 75 - -
Gains from equity capitals instruments (account 141) 76 - -
losses from equity capitals instruments (account 149) 77 - -
V. CURRENT PROFIT OR LOSS CARRIED FORWARD

Balance C (account 117) 78 - -
Balance D (account 117) 79 194.521.411 169.066.029
VI. PROFIT OR LOSS

Balance C (account 121) 80 27.043.686 23.178.213
Balance D (account 121) 81 - -
Profit appropriation (account 129) 82 1.559.701 1.573.036
EQUITY CAPITALS - TOTAL (line. 67+68+69+74+75+76-
77+78-79+80-81-82) 83 799.220.785 822.370.396
TOTAL LIABILITIES 1.348.608.888 1.447.651.128
The attached sheets are part thereof.
The above financial staatements have been signed on ________ by :
24
PROFIT AND LOSS ACCOUNT
FOR THE TAX YEAR ENDED ON DECEMBER 31ST 2009
Name of No. Previous tax year Current tax year

Remark
indicator line
A B 1 2
1 Net turnover (line. 02 to 05) 01 525.444.034 539.192.721
1.a. Turnover (account 701+702+703+704+705+706+708) 02 524.940.567 538.170.171
1 b) Revenue from sale of goods (account 707) 03 503.467 1.022.550
Interest income of the companies whose main business is leasing
1.c) (account 766) 04 - -
1. d) Revenues from operation subsidies afferent to the net turnover (account
7411) 05 - -
2 Stock variation of finished products and of the production balance C 06 - -
work in progress (account 711) Balance D 07 - -
3 Own work capitalized (account 721+722) 08 2.357.838 1.191.199
4 Other operating revenues (account 758+7417) 09 27.096.449 27.248.255
I OPERATING REVENUES TOTAL (line 01+06-07+08+09) 10 4 554.898.321 567.632.175
5.a. Expenses with raw materials and consumables (account 601+602-7412) 11 20.013.880 16.361.857
Other material expenses (account 603+604+606+608) 12 173.574.380 161.239.246
5 b) Other purchases (energy and water)(account 605-7413) 13 8.743.993 6.473.204
5.c) Purchases of goods for resale (account 607) 14 496.407 1.027.715
6 Expenses with the personnel(line 16+17) 15 87.209.693 101.230.097
6.a. Salaries (account 641+642-7414) 16 68.182.823 79.206.797
6 b) Insurance and social security expense (account 645-7415) 17 19.026.870 22.023.300
7.a. Adjustment of the value of the tangible and intangible assets (line 19-20) 18 57.129.060 89.306.883
a.1) Expenses (account 6811+6813) 19 80.973.455 89.306.883
a.2) Revenues (account 7813) 20 (23.844.395) -
7 b) Adjustment of value of current assets (line 22-23) 21 6.002.289 970.306
b.1) Expenses (account 654+6814) 22 6.374.840 1.084.543
b.2) Revenues (account 754+7814) 23 (372.551) (114.237)
8 Other operating expenses (line 25 to 28) 24 169.920.059 161.753.404
8.a. External services expenses

(ct.611+612+613+614+621+622+623+624+625+626+627+628-7416) 25 163.695.909 150.701.899
8 b) Other taxes, duties and similar expenses (account 635) 26 3.153.195 5.216.241
Expenses with reimbursements, donations and assigned assets (account
8.c) 658) 27 3.070.955 5.835.264
Revenues from funding interests recorded by companies whose main
business is leasing (account 666) 28 - -
Adjustments of reserves (line 30-31) 29 (2.360.507) (551.704)
Expenses (account 6812) 30 6.508.864 3.507.979
Revenues (account 7812) 31 (8.869.371) (4.059.683)
|II.
OPERATING EXPENSES TOTAL (line 11 to 15+18+21+24+29) 32 4 520.729.254 537.811.008
A PROFIT OR LOSS FROM OPERATION
- Profit (line 10-32) 33 4 34.169.067 29.821.167
- Loss (line 32-10) 34 4 - -
9 Revenues from long term receivables (account 7611+7613) 35 - -
- of which, revenues obtained from assimilated entities 36 - -
25
PROFIT AND LOSS ACCOUNT
Name of No. Previous tax year Current tax year

Remark
indicator line
A B 1 2
Revenues from other investments and debts part of the fixed assets
10 (account 763) 37 - -
11 Interest income (account 766*) 39 4.981.566 8.308.435
Other financial revenues (account 762+764+765+767+768) 41 95.819 1.292.794
I FINANCIAL REVENUES TOTAL (line 35+37+39+41) 42 5.077.385 9.601.229
Adjustments of value of financial fixed assets and investments as current
12 assets (line 44-45) 43 - -
Expenses (account 686) 44 - -
Revenues (account 786) 45 - -
13 a) Expenses related to interests (account 666-7418) 46 133.521 811.212
13 b) Other financial expenses (account 663+664+665+667+668) 48 7.918.919 7.150.457
II. FINANCIAL EXPENSES TOTAL (line 43+46+48) 49 8.052.440 7.961.669
B FINANCIAL PROFIT OR LOSS
- Profit (line 42-49) 50 - 1.639.560
- Loss (line 49-42) 51 2.975.055 -
14 CURRENT PROFIT OR LOSS
- Profit (line 10+42-32-49) 52 31.194.012 31.460.727
- Loss (line 32+49-10-42) 53 - -
15 Extraordinary Revenues (account 771) 54 - -
16 Extraordinary expenses (account 671) 55 - -
17 PROFIT OR LOSS FROM EXTRAORDINARY BUSINESS:
- Profit (line 54-55) 56 - -
- Loss (line 55-54) 57 - -
I TOTAL REVENUES (rd. 10+42+54) 58 559.975.706 577.233.404
II. TOTAL EXPENSES (line 32+49+55) 59 528.781.694 545.772.677
C GROSS PROFIT OR LOSS
- Profit (line 58-59) 60 31.194.012 31.460.727
- Loss (line 59-58) 61 -
18 TAX ON CURRENT PROFIT (account 691) 62 4.150.326 8.282.514
19 Other taxes not presented above (account 698) 63 - -

20 NET PROFIT OR LOSS OF THE PERIOD:
- Profit (line 60-62-63) 64 27.043.686 23.178.213
- Loss (line 62+63-60) 65 - -
26
STATEMENT OF CHANGES IN EQUITY
2008 2009
Operating activities cash flow

Result prior the tax on profit 31.194.012 31.460.727
Adjustments for non-cash items :

Operating expenses for depreciation of fixed assets 57.129.060 89.306.883
Net loss /(net gain) from assignment of fixed assets (2.145.847) 845.842
Impairment of current assets, net 5.999.565 970.306
Operating expenses for risk and expenses reserves, net (2.360.507) (551704)
Income from connection fee (16.993.934) (20.647.654)
Interest income (4.981.566) (8.308.435)
Interest expenses 133.521 811.212
Losses from differences of exchange rate 5.032.350 958.386
Results from operation prior the amendments of the current capital 73.006.654 94.845.562
Alterations of the net current capital in:

Inventories (4.977) (2.160.922)
Receivables and other assets (4.863.327) (2.890.548)
Suppliers and other debts 17.424.711 32.986.536
Modification of the current capital 12.556.407 27.935.066
Interests paid (133.521) (811.212)

Tax on profit paid (1.496.902) (6.119.174)
(1.630.423) (6.930.386)
Operating activities net cash flow 83.932.639 115.850.243
Investment activities cash flow

Purchases of fixed assets (193.052.839) (220.762.364)
Cash receipt from sales of tangible fixed assets 3.725.128 90.508
Received interests 3.494.383 9.524.651
Investment activities net cash flow (185.833.328) (211.147.205)
Financial activities cash flow

Contribution in cash to share capital 54.212.300 -
Contributions from clients (connecting fee) 80.265.686 64.918.470
Credit refunding by assimilated companies (9.472.680) (3.963.352)
Financial activities net cash flow 125.005.306 60.955.118
Net increase/decrease of availabilities and similar items 23.104.617 (34.341.843)
Availabilities and similar items in the beginning of the year 49.325.099 72.429.716
Availabilities and similar items in the end of the year 72.429.716 38.087.873
27
STATEMENT OF CHANGES IN EQUITY
Increases Decreases
Balance at 1 Balance at 31
Equity capital item Total, out of Total, out of
January 2009 by transfer by transfer December 2009
which which
0 1 2 3 4 5 7 = 1+2-4
Subscribed capital 423.967.400 - - - - 423.967.400
Contributions in advance to
the capital 3.695.527 - - - - 3.695.627
Revaluation reserve 481.801.581 - - 103.661.563 103.661.563 378.140.018
Legal reserve 10.269.994 1.573.036 1.573.036 - - 11.843.030
Reserves for the surplus

from the revaluation reserve 4.687.351 103.661.563 103.661.563 - - 108.348.914
Other reserves 43.836.359 - - - - 43.836.359
Loss carried forward (126.545.049) (28.603) - (25.483.985) (25.483.985) (101.089.667)
Retained earnings from the

first enforcement of OMF
94 (67.976.362) - - - - (67.976.362)
Profit for the period 27.043.686 23.178.213 - 27.043.686 27.043.686 23.178.213
Profit distribution (1.559.701) (1.573.036) (1.573.036) (1.559.701) (1.559.701) (1.573.036)
Total capitals and reserves 799.220.786 126.811.173 103.661.563 103.661.563 103.661.563 822.370.396
28
NOTES CONCERNING THE FINANCIAL STATEMENTS
ON AND FOR THE TAX YEAR ENDED ON DECEMBER 31 2009
1. Non current assets
Between January the 1st and December 31st 2009, the fixed assets evolved as follows:
Gross value
Balance at 1 Balance at 31
Asset items Increases Decreases
January 2009 December 2009
0 1 2 3 5=1+2-3
Intangible assets
Set-up and development costs

- - - -
Concessions and other intangible assets
24.088.822 3.590.156 - 27.678.978
Down payments and intangible fixed assets
in progress - 2.883.145 2.883.145 -
Total intangible fixed assets

24.088.822 6.473.301 2.883.145 27.678.978
Tangible assets
Lands 28.658.110 12.885 - 28.670.995
Constructions and arrangement of land
724.582.629 105.486.222 818.894 829.249.957
Technical equipment and machinery 332.756.327 87.297.541 2.886.230 417.167.638
Other equipment, machinery and furniture
1.753.292 440.390 4.562 2.189.120
Down payments and tangible fixed assets in
progress 58.986.693 217.546.657 191.680.736 84.852.614
Total tangible assets

1.146.737.051 410.783.695 195.390.422 1.362.130.324
Financial assets
Other receivables 388.134 38.399 3.577 422.956
Total financial assets

388.134 38.399 3.577 422.956
Total fixed assets
1.171.214.007 417.295.395 198.277.144 1.390.232.258

29
Depreciation - amortization
Balance at 1 January Balance at 31
Increases Decreases
2009 December 2009
5 6 7 8 8=6+7-8
Intangible assets

- - - -
12.436.813 3.724.494 - 16.161.307
12.436.813 3.724.494 - 16.161.307
Tangible assets
Lands
- - - -
Constructions and arrangement of land
370.243 41.841.597 122.726 42.089.114
Technical equipment and machinery
869.505 443.484.607 899.394 43.454.718
Other equipment, machinery and
furniture 19.263 439.491 3.772 454.982

1.259.011 85.765.695 1.025.892 85.998.814
Total fixed assets

13.695.824 89.490.189 1.025.892 102.160.121
Depreciations - provisions
Balance at 1 January Balance at 31
Increases Decreases
2009 December 2009
5 6 7 8 9=6+7-8
Intangible assets
- - - -
Tangible assets
- - - -
Financial assets - - - -
Fixed assets in progress - - - -
Total fixed assets - - - -
30
Net value
Asset items Balance at 1 January 2009 Balance at 31 December 2009
10 11 12
Intangible assets

- -
11.652.009 11.517.671
Down payments and intangible fixed assets in
progress - -

11.652.009 11.517.671
Tangible assets
Lands 28.658.110 28.670.995
Constructions 724.212.387 787.160.843
Technical equipment and machinery 331.886.821 373.712.920
Other equipment, machinery and furniture 1.734.030 1.734.138
Down payments and intangible fixed assets in
progress 58.986.692 84.852.614
1.145.478.040 1.276.131.510
Financial assets
Other receivables 388.134 422.956
Total financial assets

388.134 422.956
Total fixed assets 1.157.518.183 1.288.072.137
The company evaluates the tangible fixed assets at revaluated value. The last revaluation was done on December 31, 2008. The
independent valuator hired by the company (SC Darian Rom Suisse SRL) revaluated the lands, the buildings and the equipment at
fair value, according to OMFP no.1752/2005 and International Valuation Standards Committee (IVSC).
Such as described in note 10, as per order ANRE no. 31/2004 and 39/2007, the determination of distribution rates relies on the
regulated basis of assets (BAR).
Based on the companys estimations at December 31st 2009 the value of the fixed assets can be recovered and, consequently, no
depreciation reserve has been recorded in the financial statements.
Tangible fixed assets in progress include, mainly, the construction of low and medium voltage power lines and other projects of
construction and renovation.
A part of the buildings are mortgages for the credits contracted by Electrica SA for the Company, as displayed in Note 12.

31
2. Reserves for risks and expenses
2.1. Reserves for disputes
On December 31st 2009 the company holds risk and expenses reserves amounting to 2.214.298 lei, as follows:
1) risk and expense reserve, formed in 2007, representing disputed amounts for taxes of using the county roads
area, interests and penalties calculated by the County Council of Harghita to SDEE Miercurea Ciuc amounting
to 1.758.049 lei
2) risk and cost reserve, made in 2009, by SDEE Harghita, amounting to 119.357 lei , for a burnt chalet for which
BCR Asigurari requests compensation,
3) risk and expense reserve, formed in 2006 by SDEE Brasov ,in amount of 3,100 lei for the litigation with Lascu
Adrian, on the counter value of replacement of a tower,
4) reserves made by SDEE Brasov, in total amount of 1,950 lei, for compensation requested for damaged
appliances;
5) risk and expense reserve made by SDEE Brasov, in amount of 21,100 lei (19,926 lei from previous years and
1,174 lei made in 2009), as damage interests for land occupation (PT 27.Lamaitei Street) ;
6) risk and expense reserve made by SDEE Braov, in amount of 236,783 lei, for compensation granted by SC
PROMED SRL, for a chalet burnt down in 2009,
7) risk and expense reserve made by SDEE Brasov, in 2009, in amount of 36,000 lei, as damage interests for
occupying a land of high voltage poles,
8) reserves made by SDEE Sibiu, in total amount of 2,617 lei, for compensation requested for damaged
appliances;
9) risk and expense reserve made by SDEE Sibiu, in amount of 35,342 lei, for displacement of poles (Lintea
Vasile, Iuga Cosmin, Oros Viorel, Beldean Ioan).
2.2. Reserves for penalties
Explanation Provision
Penalties for delay in payment power suppliers period 01.01.2007-
31.07.2007 1.407.126
Penalties for delay in payment power suppliers period 01.08.2007-
31.12.2007 270.606
Penalties for delay in payment of power suppliers, delivered by FFEE

protocol, according to GD 675/2007, payable in July 2007 473.741
Total 2.151.473
2.3. Reserves for taxes
SC FDEE Electrica Distributie Transilvania Sud has been enforcing from the financial year 2006, OMF 1752/2005 related to
accounting regulations compliant with the 4th Directive of the European Economic Communities.
At the end of 2009 the company has recorded, based on OMF.1752/2005, provisions for taxes as follows:
- for reserve of development fee under GO.89/2004 a reserve in amount of 4,445,908 lei ;
- for reserve of fiscally deducted revaluation, made in GD.1553/2003, by applying the tax on profit rate on this deducted
reserve, in amount of 18,519,910 lei.
Movements of the tax reserve during 2009:
Explanation Balance at Carry forward Balance at

1.01.2009 Formation 31.12.2009
Tax on reserve of the
development tax as per OG - -
89/2004 4.445.908 4.445.908
Reserve afferent to the fiscally
deducted revaluation reserve 16.277.330 2.242.580 - 18.519.910
32
Total 20.723.238 2.242.580 - 22.965.818
As well, according to the provisions of IAS 12 , the company has calculated and presents taxes only in notes
deferred, as follows :
December out of which:

31, 2009 Afferent to the reserve of the -afferent to the temporary
Explanation development tax as per OG reserves between the
89/2004 accounting value and the
fiscal basis of assets
- IAS 12
28.574.982 4.445.908 24.129.074
( deferred tax)
2.4. Reserve for employees allowances
Compliant with the Government Decision no. 1041/2003 and no. 1461/2003, the Company supplies allowances in kind as free power
to the retired employees. The company also supplies allowances in cash according to the seniority and upon retirement date for
employees. Considering the complexity of calculation, the company, by Electrica SA, contracted an independent actuary SC
Deloitte.
Based on the actuarial calculation report the company recorded a provision for pensions and benefits of employer amounting to
834,127 lei, as follows:
Initial balance (January 1st 2009) 31.975.991

Pension and similar obligations reserves 834.127
Final balance (31.12.2009) 32.810.118
The valuation relies on the following assumptions:
- inflation decrease from 3.7% in 2010 to 2.3% in 2014;

- 6.5% discount rate;
- salary increase ratio will be given by the increase of inflation rate;
- increase in electricity price will grow with the level of estimated inflation ratio;
- staff fluctuation, depending on age and sex.
The allowances awarded to the employees compliant with the Collective Employment Agreement are mainly the following:
Seniority allowances for employment with Electrica

Number of main
Seniority gross salaries
20 years 1
30 years 2
35 years 3
40 years 4
Retirement allowances according to seniority within Electrica

Number of main
Less than 10 years 1
Between 10 and 25 years 2
over 25 years 3
The company also provides an allowance consisting in 1.200 kWh free power supply per year to the employees that retired from the
company and met all the seniority-related requirements. In case of death of the retired person, the surviving spouse is entitled to
receive the same aid until re-marriage.

33
3. Profit distribution
During the year, the company obtained a net profit of 23.178.213

Its distribution will comply with:
GO 64/2001 and GO no. 61/2004 on distribution of profit at national companies and trade companies with
majority state owned capital;
O.M.F. no.144/2005 on approval of statements to determine the amounts object of profit distribution
according to G.O. 64/2001;
Art. 22, (1) (a) of Tax Codes, on formation of legal reserve, according to which, the legal reserve can be deducted within 5% share
applied on the profit, before determination of the tax on profit, of which are subtracted non-taxable income and are added expenses
related to such non-taxable income, until reaching the fifth part of the subscribed and paid-in share capital.
Thus, the amount of 1,573,036 was distributed to legal reserve, the remaining will be assigned to the result carried forward during
2010.
4. Analysis of the operating result
Indicator Previous tax year 2008 Current tax year 2009

0 2
Net turnover 525.444.034 539.192.721
Stock variation - -
Tied-up production 2.357.838 1.191.199
Other operating revenues 27.096.449 27.248.255
Total operating revenues 554.898.321 567.632.175
Expenses with raw materials and consumables 24.516.927 18.919.321

Purchase energy expenses 169.071.333 158.681.782
Other purchases 8.743.993 6.473.204
Purchases of goods 496.407 1.027.715
Employment charges 68.182.823 79.206.797
Insurance and social security charges 19.026.870 22.023.301
Adjustment of the value of the tangible and intangible assets 57.129.060 89.306.883
Adjustment of current assets value, net 6.002.289 970.306
External services expenses 163.695.909 150.701.899
Other taxes, duties and similar expenses 3.153.195 5.216.241
Expenses with reimbursements, donations and assigned assets 3.070.955 5.835.264
Adjustments for the reserves for risks and expenses, net (2.360.507) (551.704)
Total operating expenses 520.729.254 537.811.008
Operating result profit 34.169.067 29.821.167
The net turnover consists mainly in :
- Revenues from power distribution services, reactive power and power sold on the equilibration market or market of the
following day in amount of: 513,720,774 lei;
- Revenues from works performed, amounting to: 5,510,412 lei;
- Revenues from rents amounting to: 14,103,861 lei.
34
Other operating revenues mainly include :
- revenues from penalties, amounting to: 4.707.065 lei;

- resuming at income the counter value of depreciation related to fixed assets commissioned of connection rate in amount of:
20.647.654 lei.
Expenses for external services rendered, include mainly the following:
-Expenses for maintenance and repair works made by Electrica Serv, amounting to: 91.230.639 lei;
-Expenses with other services rendered made by Electrica Serv, amounting to: 20.406.071 lei;
- Post and telecommunication expenses, amounting to 3.070.243
- Energy supply reading /collection, amounting to: 9.065.673 lei;
- Rent costs amounting to: 7.429.182 lei;
-Expenses with services rendered by Electrica SA, amounting to: 6.399.746 lei.
Adjustments for risk and expenses reserves cover also the reserves for disputes, taxes and for employees bonuses (see note 2) .
Adjustments for risk and expenses reserves consist of
1. Revenues amounting to 4.059.683 covering the following :
- resuming the reserve for dispute with SC Quadrant: 3.793.394 lei;

- resuming the reserve for risks and expenses with Nuclearelectrica: 216.274 lei;
- resuming other reserves for: 50.115 lei.
2. Expenses amounting to 3.507.980 covering the following :
- reserve for deferred tax: 2.242.580 lei;

- reserve for employees allowances: 834.127 lei;
- other reserves for various disputes: 431.273 lei.

35
5. Receivables and payables statement
a) Receivables
On December 31st 2009 the companys claims were the following:

Maturity
Receivables Balance at December 31st Under 1 year over 1 year
0 1 2 3
Down payments to suppliers, CEC to receive

1.691 1.691 -
Customers, gross accounting value
10.369.091 10.369.091 -
Adjustment for insecure customers (775.285) (775.285) -
Total commercial receivables from third
parties 9.595.497 9.595.497 -
Commercial receivables from related

companies 101.825.967 101.825.967 -
Other receivables from related companies 5.891.193 5.891.193

Adjustments for invoiced penalties (1.733.789) (1.733.789)
Other amounts to receive from related
companies 105.983.371 105.983.371
Various debtors, gross accounting value 6.323.047 6.323.047 -
Adjustment for various insecure debtors (4.472.487) (4.472.487) -

Other receivables 325.479 325.479 -
Total other receivables 2.176.039 2.176.039 -
Total claims 117.754.907 117.754.907 -
The receivables balance at December 31st 2009 consists of:

- down payments to suppliers amounting to 1,691 lei
- bills of exchange receivable amounting to 141,712 lei
- customers from main activity amounting to 8.319.670 lei ;
- customers from other activities amounting to 939,587 ;
- insecure customers from other activities amounting to 749,278 ;
- customers invoices to be issued amounting to 218,844 lei;
- adjustment for insecure clients amounting to (775,285) lei.
Receivables from company group mainly represent, the services performed by the Company, based on agreements, by the mother
company and affiliated companies, and consist of :
- FFEE - services related to the distribution rate 48,828,272 lei;

- Other services to FFEE Transilvania Sud 144,328 lei;
- Services to FISE in amount of 128,791 lei;
- FFEE - invoices to make for services related to the distribution rate 50,010,381 lei;
- FFEE - sale of reactive power 1,803,656 lei;
- FFEE - adjustment for invoiced penalties in amount of (1,733,789) lei;
- Invoices to make by FFEE for power sold on PE and PZU 109,899 lei;
- Invoices to make to FFEE other services: 228,153 lei;
- Invoiced to make to FFEE for computer related services: 380.812 lei;
- Invoices to make to FISE for other services: 16.445 lei.
Other receivables from related companies are:
- utilities re-invoicing: 109.553 lei;

- payments made to the account of credits to refund: 162.091 lei
- penalties invoiced to FFEE Transilvania Sud in amount of 5,619,549 lei.
36
Balance debtors are:
- debtors with enforceable title 1,607,797 lei;

- debtors from connection fee 1,331,022 lei;
- penalties invoiced and calculated 2,109,232 lei;
- other debtors 1,274,995 lei;
- adjustment for sundry debtors (mainly penalties) (4,472,487)lei;
b) Debts
On December 31st 2009 the companys debs were the following:
Balance at 31 Maturity
Payables
December 2009 Under 1 year over 1 year over 5 years
0 1 2 3 4
Amounts owed to credit institutions 17.711.415 6.789.597 10.921.818
Internal suppliers (services, repairs) 26.786.386 26.786.386 - -

Suppliers of fixed assets 87.346.966 29.766.879 57.580.087 -
Total trade creditors 114.133.352 56.553.265 57.580.087
Suppliers assimilated companies 64.640.385 64.640.385 - -

Suppliers of fixed assets 19.106.373 19.106.373 - -
Other debts to assimilated companies 15.282.959 4.292.447 10.990.512 -
Warranties afferent to assimilated companies 28.161 28.161 - -
Amounts owed to assimilated companies 99.057.878 88.067.366 10.990.512 -
Anticipation securities 1.315.234 1.315.234 - -

Social securities and other salary-related taxes 3.006.649 3.006.649 - -
Salaries and other salary rights 3.364.930 3.364.930 - -
Other debts payable to the Treasury and local budgets 8.110.462 8.110.462 - -
Other payables 2.773.676 2.773.676 - -
Total other debts 18.570.951 18.570.951 - -
Total debts on 31.12.2009 249.473.596 169.981.179 79.492.417 -
Amounts owed to credit institutions refer to Siemens and Energobit claims with the investment works company assigned to BRD.
On December 31, 2009, the debts to related companies originate from:
- purchase of power for retired persons from FFEE in amount of 84,160 lei;
- other services rendered by FFEE in amount of 413,239 lei;
- securities for contracted works in amount of 28,161 lei;
- services rendered, consultancy provided by Electrica SA in amount of 6,540,196 lei;
- purchase of materials and services of maintenance and repairs rendered by Electrica Serv in amount of 49,674,371
- purchase of fixed assets from Electrica Serv in amount of 19,055,581 lei;
- amounts to invoice by Electrica SA in amount of 428,509 lei;
- amounts to invoice by Electrica Serv in amount of 3,111,472 lei;
- amounts to be invoiced for purchase of power from FFEE in amount of 3,819,169 lei;
- amounts to be invoiced for other services from FFEE in amount of 691,434 lei;
- power penalties invoiced to FFEE in amount of 144,869 lei.

37
At December 31, 2009, other debts to assimilated companies are amounts related to credits contracted by the mother company and
re-invoiced to the company, as follows:
December 31st
Description
2009
European Investment Bank of October 31st 1995 318.131
BCR 52 - Electrifications 14.654.016

Total other debts to assimilated companies 14.972.147
The main debts to suppliers, other than assimilated companies, are as follows:
Payables Balance at 31.12.2009 Long-term

ABB Bucuresti - station Barabant 14.678.877 9.066.348
ABB Bucharest - station Reghin 20.819.846 12.154.778
ABB Bucharest - Increase in distributed capital power network
Brasov Triaj-Harman 15.794.345 15.794.345
ABB Bucharest - modernization of Bartolomeu station 5.591.831 5.591.831
Romelectro Bucharest station Dumbrava 11.421.105 9.136.884
Ness Romania- Extension SAP ISU 3.147.691 3.108.175
Fair Value- Extension SAP ISU 4.269.463 2.727.727
Total 75.723.158 57.580.088
Other debts cover sundry creditors of which SC Quadrant SRL in amount of 2,708,309 lei, representing payment obligations from the
decree 1528/2009 and creditors from connection fee in amount of 375 (amounts to refund from connection fee).
38
Assimilated parties
Affiliated parties as well as a brief description of the activities and their relations to the company are the following:
Activity/business Main relations to the company
Distribution and trade of power, consultancy and Resale of power purchased from main
Electrica SA management services. Major shareholder of the manufacturers, other services, and consultancy and
company. representation services.
Maintenance and repair services in the field of Provision of repair services, motor vehicle services
Electrica Serv
power distribution and other services
Distribution and trade of power in the

Electrica Distributie Muntenia Nord Purchase /sale of power
geographical area of Muntenia Nord
Electrica Furnizare Muntenia Nord Purchase /sale of power Purchase /sale of power
Electrica Furnizare Transilvania Sud

Purchase /sale of power Purchase /sale of power
(F(FFEE)

Electrica Distributie Transilvania Nord Purchase /sale of power
geographical area of Transilvania Nord
Electrica Furnizare Transilvania Nord Purchase /sale of power Purchase /sale of power
Enel Distributie Muntenia Distribution and trade of power in the Purchase /sale of power
geographical area of Muntenia Sud
Enel Energie Muntenia Purchase /sale of power Purchase /sale of power

E.ON Moldova Distributie Purchase /sale of power
geographical area of Moldova
E.ON Moldova Furnizare Purchase /sale of power Purchase /sale of power

CEZ Distributie* Purchase /sale of power
geographical area of Oltenia
CEZ Vanzare* Purchase /sale of power Purchase /sale of power
CEZ Servicii Services in energetic sector
Distribution of power in the geographical area of

Enel Distributie Banat Purchase /sale of power
Banat
Distribution of power in the geographical area of

Enel Distributie Dobrogea Purchase /sale of power
Dobrigea
Enel Energie Purchase /sale of power Purchase /sale of power
ACUE Writing, implementation and support of rules on

loyal competition on the power market
Electrica Soluziona Business advice, design of business processes, Implementation of OPEN SGC System
implementation and development of computing
systems
* In 2009 Electrica SA has sold the share package held by CEZ Distributie and CEZ Vanzare. The company will not present CEZ
Distributie and CEZ Vanzare as assimilated parties starting with 2010.

39
Claims and debts from /towards assimilated companies:
Claims balance from Debt balance towards

December 31, December 31, December 31, December 31,
2008 2009 2008 2009
Electrica SA 116.696 180.404 19.927.512 21.942.053

FISE Electrica Serv 314.683 177.163 57.070.034 71.869.635
Electrica Distributie Muntenia Nord - - - 5.712
Electrica Furnizare Muntenia Nord - 2.115 - -
Electrica Furnizare Transilvania Sud 99.564.601 105.468.886 13.007.952 5.152.872
Electrica Distributie Transilvania Nord - - - -
Electrica Furnizare Transilvania Nord - - - -
Enel Distributie Muntenia 43.829 - - -
Eon Moldova Distributie - - - -
Eon Moldova Furnizare 4.430 89.102 - -
CEZ Distributie - - - -
CEZ Vanzare 72.935 34.769 - 8.634
CEZ Servicii - - - -
ENEL Banat Distributie - - - -
ENEL Dobrogea Distributie - - - -
Enel Energie Muntenia 29.304 - - -
Enel Energie - 30.932 - -
Electrica Soluziona - - 867.099 78.972
TOTAL 100.146.478 105.983.371 90.872.597 99.057.878
The debts to Electrica SA mainly include debts related to credits contracted by the mother company and re-invoiced to the company.
Compliant with the lease agreements the credits holder is Electrica SA.
The debts to Electrica Serv mainly include, maintenance and repair services and motorized transport services.
The debts to FFEE mainly stand for the power purchase for the internal consumption and other services according to bilateral
agreements.
Receivables connected to the other assimilated companies mainly represent, the distribution service provided.
40
Transactions with assimilated companies:
Sales / Sales / Purchases / expenses in Purchases / expenses

Revenues in 2008 Revenues in 2009 2008 in 2009
Electrica SA 4.315.809 4.634.872 7.427.952 11.306.853

FISE Electrica Serv 2.199.051 927.942 163.285.483 171.293.312
Electrica Distributie Muntenia
Nord 2.500 - - 13.100
Electrica Furnizare Muntenia
Nord 1.202 1.777 - -
Electrica Furnizare
Transilvania Sud 454.875.417 465.673.274 66.386.253 32.756.832
Electrica Distributie
Transilvania Nord 2.250 - - 83.780
Electrica Furnizare
Transilvania Nord 67.185 - - -
Enel Distributie Muntenia 288.403 - - -
Eon Moldova Distributie - - - -
Eon Moldova Furnizare 10.254 370.143 - -
CEZ Distributie - - -
CEZ Vanzare 584.268 520.501 - 7.255
CEZ Servicii - - -
ENEL Banat Distributie - - - -
ENEL Dobrogea Distributie - - - -
Enel Energie Muntenia 149.995 95.381 - -
Enel Energie 35.698 137.103 - -
Electrica Soluziona - - 222.179 153.353
TOTAL 462.532.032 472.360.993 237.321.867 215.614.485
The purchase transactions cu SC Electrica SA mainly stand for the following :

- accrued interests on credits contracted by Electrica 3.024.847
- agency services 3.351.521
- mandate services 1.585.850
- advice services 1.331.425
- Vodafone services 1.214.346
- other services (post sale guarantee, commissions, software purchase) 798.864
The purchase transactions cu FISE Electrica Serv mainly stand for the following :
- maintenance services, purchase of materials and services 121.685.530
Purchases of fixed assets 49.607.782
The purchase transactions cu FISE Transilvania Sud mainly stand for the following :
- purchase of power for own industrial consumption 26.258.481
- other services (utilities, Open access, etc) 6.498.351
The purchase transactions with SC Electrica SA stand for the following :

- rents for towers 4.416.974
- distribution services 217.898
The purchase transactions cu FFEE Transilvania Sud mainly stand for the following :
- services related to the distribution rate 426.913.576
- reactive power 19.421.904
- penalties invoiced for distribution service 3.885.759
- other services (rental, re-invoicing) 4.233.074
- IT services 4.096.446

41
- additional revenue from pre,pzu,balance 7.122.515
The deals in relation to the branches and agencies belonging to FISE Electrica Serv have aimed the following:
- utilities re-invoicing 602.301
- IT and telecommunication services 297.030
- other services 28.611
6. Summary of significant accounting policies
A. Significant accounting policies
The items presented in the financial statements for the year concluded on December 31st 2008 and December 31st 2009 have been
assessed in compliance with the following accounting principles:
Business continuity principle
The company shall normally operate, without entering in winding up procedure or significant decrease of its business.
Principle or permanent methods
The assessment rules and methods have been consistently applied from one tax year to the other
Principle of prudence
The assessment of the items covered by the financial statements was prudent and especially:
a) There has been included only the profit made on the balance date;
b) It was taken into account that all the debts occurred during the current financial year or of a previous exercise, even if thus
become obvious only between the balance date and the date of its drafting;
c) It was taken into account that all the predictable debts and potential losses occurred during the current financial year or of a
previous exercise, even if thus become obvious only between the balance date and the date of its drafting;
d) it was taken into consideration that all depreciations, regardless the result of the tax year is loss or profit
Principle of the exercise independence
All revenues and expenses of the financial exercise have been considered, regardless the date of collection or payment.
Principle of separate assessment of assets and liabilities items
The components of assets or liabilities items have been separately evaluated.
Principle of the exercise intangibility
The balance for tax year opening meets the closing balance of the previous year.
Principle of non-compensation
The assets items have not been compensated with liabilities items, i.e. revenues with expenses. The possible compensations between
receivables and debts of the company to the same entity can be effected subject to the legal provisions, only after the recording in
bookkeeping of revenues and expenses at the entire value thereof.
The principle of prevalence of the economic over legal
The presentation of the values within the balance items and the profit and loss account has been carried out considering the economic
fund of the deals or of the carried forward operations, and not only the legal form thereof.
Principle of significance threshold
Items with a significant value are distinctly disclosed within the financial statements.
42
B. Significant accounting policies
a) Reporting currency
The financial statements attached hereto have been drafted and expressed in Romanian lei.
b) Accounting basis
The financial statements have been drafted compliant with the Order of the Public Finances minister no.1752/2005 for the approval
of the accounting regulations as per the European Directives, i.e. Directives IV and VII.
Such financial statements cover:

- Balance sheet
- Profit and loss account
- Cash flow statement
- Equity capitals modification
- Descriptive of financial statements.
c) Transactions in foreign currency
The transactions in foreign currency are registered at the exchange rate on the date the transaction. In the end of the financial year,
the receivables and the debts expressed in foreign currency are converted in lei at the exchange rate of the balance date and the
exchange rate differences are recorded in the profit and loss account.
d) Tangible assets
(i) Recognition and measurement
The tangible fixed assets are disclosed in the balance sheet at revaluated value, less depreciations and adjustments for depreciation or
losses of value.
On December 31st 2008, the revaluation of tangible assets has been carried out at the fair value upon the balance sheet date,
according to OMFP 1752/2005. The fair value has been determined based on evaluations of qualified professionals, members of a
specialized authorities in the field.
For the revaluation of a tangible fixed asset, the depreciation accrued at that date has been removed from the gross accounting value
of the asset, and the net value determined as a result of the correction thereof with value adjustments is re-calculated at the revaluated
value of the asset.
The adjustment for losses of value afferent to tangible fixed assets not used at normal operating capacity, damaged or worn are
recorded in the financial statements, as far as such items are identified.
(ii) Subsequent maintenance and repair expenses
All repair or maintenance of fixed assets expenses intended for re-establishing or maintaining the value thereof are acknowledged in
the profit and loss account on the date, while expenses intended for technical performance improvement are capitalized and
depreciated during the remaining period of depreciation of such fixed asset.
(iii) Depreciation
The depreciation is calculated in order to diminish the gross value, less the residual value, using the linear depreciation method for
the duration of fixed assets operation and their components, which are separately calculated.
The company calculates the accounting depreciation based on the remained economic life span established by the assessor (Darian
Rom Suisse) in the valuation report The tax depreciation is calculated based on tax durations in the Catalogue for the classification of
fixed assets as per the GD 2139/2004.

43
The economic and tax life of depreciation (in years) used for tangible fixed assets employed by the company are the following:
Economic
Fiscal life
life
Starting with January 1, 1999 Before Before
January 1,
Class January the 1st -- December 31, January 1, January 1,
2007
2005 2004 1999 1994
Administrative and technical 40

buildings 60-90 50 50 70
Power distribution lines

Overhang on wooden 9
towers 30 12 12 20
Overhang on concrete 32
towers 50 40 40 60
Underground 35 12 20 20 30
Other cables 35 16 20 20 30
Transformers 40 16 20 20 30
Counters 10 4 10 10 20
Instrumentation and control 4
equipment 3-30 3-20 5-20 5-30
Motor vehicles 4-10 4 4-9 4-9 6-9
Office equipment 5-20 4 15 15 40
Others 5 3 5 10 10
The lands and fixed assets in progress do not depreciate. The investments in progress are depreciated starting on the commissioning
thereof.
e) Intangible assets
The intangible assets purchased by the Company are disclosed at the cost less the depreciation accrued and the value losses. The
depreciation is recognized in the profit and loss account based on the linear method for the duration of the life assessed of the
intangible asset. Most of the intangible fixed assets not recorded by the company are represented by specialized IT softwares. Such
are linearly depreciated for a period of 3 to 5 years
f) Financial assets
The financial fixed assets cover the shares held with assimilated entities, the loans given to assimilated entities, the participation
interests, the loans granted to the entities to which the company is related to by virtue of the equitable interests, other investments
held as fixed assets, other loans.
g) Inventories
The stocks consist of consumable materials and other materials. Such are recorded as inventories upon the purchase date and are
transferred to expenses or capitalized, as applicable, when consumed. The inventories cost covers all the purchase costs and other
costs incurred by bringing inventories in the current place and situation.
The inventories cost is based on the method of evaluation of the weighed average cost. All inventories are recorded at the minimum
between the cost and the net achievable value. Where applicable, adjustments for depreciation of excess, obsolete or refusal
inventories are recorded.
h) Trade receivables and other receivables
The accounts of customers and similar accounts include the invoices issued by December 31st for the supply of electric power,
penalties for payment delay, as well as claims afferent to the power delivered by the end of the year, but invoiced during the period
after the end of the year.
The customer accounts and similar accounts are recorded at the nominal value, decreased to the estimated achievable value, by
recording an adjustment for the losses of value. Generally value adjustments are recorded for old receivables for delay in payment
penalties.
44
i) Cash and cash equivalents
The cash availabilities include the cash, current accounts and bank deposits. The foreign currency cash availabilities are evaluated at
the exchange rate communicated by the Romanian National bank valid on the date of the financial year opening. Overdrafts are
treated as current debts.
j) Losses of value
The accounting value of the companys assets, other than inventories, is analyzed on each balance date in order to determine the
decreased of value. If such a decrease is probable, the recoverable amount of the asset concerned is estimated. If applicable, a
depreciation adjustment is acknowledged in the profit and loss account or in the equity capitals when the value of the asset is higher
than its recoverable amount.
The depreciation adjustment can be resumed if a change of the circumstances existing upon the determination of the recoverable
amount occurred. Resuming an adjustment for depreciation can only be only so that the net value of the asset does not exceed its net
historical accounting value, taking the depreciation into account.
k) Share capital
The company acknowledges the amendments of the share capital only after the approval thereof in the general Assembly of
Shareholders and registration with the Companies' Registry Office.
l) Dividends
The dividends are recognized as debt during their assignment is approved.
m) Revaluation reserve
Revaluations must be made on a regular basis, so that the accounting amount does not significantly differ from the one determined
using the fair value on the balance date. For such purpose, the company carried out the revaluation of the tangible assets with
independent assessors on December 31st 2008 (see note d (i)).
The difference between the value resulted from revaluation and the net accounting value is disclosed in the revaluation reserve, as a
distinct item in "Capital and reserves".
In case the revaluation result is an increase to the net accounting value, it is treated as follows:
-as an increase of the revaluation reserve disclosed at item "Capital and reserves", unless a prior decrease recognized as expense
afferent to such asset occurred; or
- as an income to compensate the decrease expense previously recognized for that asset.
If the revaluation result is a decrease of the net accounting value, such is treated as an expense with the entire value of the
depreciation when the revaluation reserve does not contain an amount related to that asset (surplus from revaluation) or as a decrease
of the revaluation reserve with the minimum between the value of such reserve and the value of the decrease, and the difference
uncovered is recorded as expense.
Until December 31, 2008 the revaluation excess included in revaluation reserve was capitalized by direct transfer to reserves as
related assets are sold or removed from use. Starting with January 1, 2009 the company has changed the accounting policy, the
revaluation excess being capitalized by direct transfer to reserve as the asset depreciates.
Compliant with the tax legislation in force, the revaluation reserve is subject to taxes upon the change of its destination. Starting with
May 1, 2009, as a result of changes of tax legislation, revaluation reserves recorded after January 1, 2004 become taxable as the fixed
asset concerned depreciates.
n) Legal reserves
Legal reserves are formed in 5% from the gross profit at the end of the year until the total legal reserves reach 20% of the share
capital paid up compliant with the legal provisions. Such reserves are deductible for the tax on profit.
o) Subsidies
Subsidies are recorded in bookkeeping as revenues recorded in advance and recognized as revenues upon the recognition of the
afferent costs (depreciation or inventories consumption)

45
p) Loans
Long term loans are initially recognized at costs, less the costs related to the transaction. After the initial recognition, the credits are
disclosed at depreciated value, the differences between cost and the redemption value are recognized in the profit and loss account
for the duration of the credit at a real interest rate.
q) Debts afferent to leasing agreements
The leasing agreements of which the company takes over the risks and benefits associated to the property are classified as financial
leasing. The other contracts are classified as operational leasing. The debt to the leasing company is included in the balance as debt
for the leasing agreement. Funding costs are recorded in the profit and loss account for the leasing period at a constant rate of the
interest. All payments effected within the operational leasing contracts are recorded in the profit and loss account in a linear manner
for the duration of the leasing contract. The decreases of leasing allowances are recognized in the profit and loss account as decrease
of expenses.
r) Suppliers and other debts
The debts to suppliers are highlighted at cost and include the invoices for deliveries, contracted works and services.
s) Reserves
The reserves are recognized in the balance when the Company experiences a legal or constructive obligation related to a past event
and it is probably in the future necessary for the consumption of economic resources removing such obligation. The reserves are
reviewed at every end of period and adjusted in order to reflect the current and the most suitable estimation.
A reserve is acknowledged when:

- an entity has a current obligation generated by a previous event;
- it is probably that an output of resources is necessary to honour such obligation; and
- a credible estimation of the value of the obligation can be achieved.
The reserves are formed for items such as: disputes, fines and penalties, compensations, damages and other doubtful debts; expenses
related to service during the guarantee period and other expenses related to the guarantee provided to customers, restructuring
actions, pensions and similar obligations; taxes, other reserves.
Reserves for taxes
The company forms reserve for the tax related to revaluation reserve fiscally deducted until the balance sheet date. Compliant with
the tax legislation in force, the revaluation reserve is subject to taxes upon the change of its destination. At the end of 2009, the
company has recorded reserves for taxes calculated by using the tax on profit rate to the reserve of evaluation fiscally deducted.
Reserves for pensions and other allowances
employees. The company records reserves for the employees pensions and allowances based on actuarial calculations made by
professionals.
t) Recognition of revenues
The revenues from services are recognized during the period such are rendered. The revenues mainly represent the value of the
power distribution service. The revenues from sale of assets are recognized when such are delivered to purchasers, are delivered
based on invoice or other conditions stipulated in the contract certifying the transfer of the ownership title over the assets concerned.
u) Financial revenues and expenses
The financial revenues cover: Revenues from financial assets, revenues from short term investments, revenues from fixed claims,
revenues from assigned investments, revenues from differences of the exchange rate, revenues from interests, discounts received
from financial decreases, other financial revenues. Financial expenses include: Losses from claims related to ownership interests,
expenses related to assigned investments, unfavourable differences of the exchange rate, expenses with interests afferent to the
financial year in progress, discounts granted to customers, losses from claims of financial nature. The principle of separation of the
tax years is observed for the recognition of these types of revenues and expenses.
v) Costs related to the employees
46
Short time employees rights include salaries and social payments. Short time employees rights are recognized as expenses when
they render services.
employees. The company records reserves for the employees pensions and allowances (see note s).
w) Tax on profit
The tax on profit is calculated based on the annual fiscal result, using the tax share in force upon the balance date, adjusted with the
corrections of the previous years.
x) Affiliated companies
The parties are affiliated in case one of the parties, either by ownership, contractual rights, family relations or of any other nature, has
the possibility to directly control or to influence the other party in a significant manner.
Affiliated entities are considered the ones meeting the conditions stipulated in art. 3, Chapter II of the VIIth Directive, part of OMFP
1752/2005.
y) Estimations
In order to draft the financial statements, the companys management makes certain estimations and assumptions affecting the values
of the assets and debts carried forward upon the balance date, as well as the revenues and expenses of the period carried forward. The
actual results may differ from the estimated results. The estimations are used for recording value adjustments for insecure customers,
updating of long term debts, depreciation of inventories, depreciation of reserves for taxes.
The effect of the accounting estimations change is calculated for the future and is included in the determination of the afferent net
result:
- To the period of the change, if such is the only period affected;

- To the period making the change and subsequent period, if such change affects them all.
z) Connection fee
The value of the new connections to the wiring is invoiced to the consumers by the connection fee (as per the Government Decisions
no. 2/ 1992 and 867/2003). Starting on 2003, the connection fee is recorded as subsidy, it is transferred in revenues as the fixed assets
purchased with this fee depreciate. The new connections to the electric network are the companys ownership.
aa) Contingent liabilities
The contingent debt is:
a) Potential obligation, occurred as a result of past events, prior the balance date and whose existence is certified only by the
occurrence or non-occurrence of one or several doubtful future events, which can not be entirely dependent on the entity; or
b) A current obligation occurred as a result of past events, prior the balance date, but not recognized because:
- the necessity of resources output is necessary for extinguishing such debt, or
- the debts value can not be sufficiently credible evaluated .
The contingent debts are not acknowledged in the balance, such are disclosed only in the financial statements descriptive records.
The contingent debts are continuously evaluated in order to determine if there is the probability of a resources output incorporating
the economic benefits. If such is deemed necessary, generated by an item that previously was considered contingent debt, it shall be
recognized, as applicable, as debt or reserve in the financial statements afferent to the period of the modification of the events
framework.

47
bb) Events after the balance date
The financial statements attached hereto reflect the events after the end of the year, events supplying additional information about the
companys position at the end of the balance or the ones indicating a possible infringement of the principle of business continuity
(events determining adjustments) The events that are not event determining adjustments are disclosed in notes when such are deemed
significant.
cc) Settlement by compensation
Due to the general lack of liquidities in Romania, a significant part of the amounts originated from the companys sales is settled by
compensation, the company being thus able to compensate the claims for the delivery energy with the debts for raw materials and
services through the chain of companies with mutual debts. Such transactions stand for the exchange of similar products and value,
without recognizing a loss or a gain to their rated value.
dd) Comparative figures
Certain comparative values for 2008 have been reclassified for a comparative presentation with 2009
7. Share capital
At January 1, 2009, the share capital of SC Filiala de Distributie si Furnizare Electrica Transilvania Sud SA is
423,967,400 lei , lei representing 42.396.740 shares with nominal value of 10 lei each, as follows:
- Trade company "Electrica" - S.A. holds 33,069,458 shares;
- Trade company "Fondul Proprietatea" - S.A. holds 9,327,282 shares
The share capital was not changed since 2009.
8. Information concerning the employees, administrators and managers
The total expenses with the staff were as follows:
2008 2009
Salaries related to the tax year 65.055.317 75.851.246

Lunch vouchers 3.127.696 3.355.552
Social securities expenses 19.026.870 22.023.320
Total 87.209.693 101.230.097
The expenses with the payment of managers in 2009 amounted to 1,267,339 lei (645,858 lei in 2008)..
The expenses with power granting contracts amounted to 693,303 lei in 2009 (987,990 lei in 2008)..
The expenses with the payment of the members of the Board of Administration and General Assembly of Shareholders amounted
to:240,563 lei (424,791 lei in 2008)
The average number of employees for the tax years ended on December 31, 2008 and 2009 was the following:
2008 % 2009 %
Workers 1.160 60 1.148 63
Other categories 652 40 672 37
Total 1.812 100 1.820 100
48
9. Economic financial indicators
2008 2009 Calculation formula

1 Liquidity indicators
Current assets /
Indicator of current liquidity 1,282 0.938 Current liabilities
Current assets - Inventories/

Indicator of immediate liquidity 1,273 0.917 Current debts
2 Risk indicators
Debts over one year /
Indebtness rating 8% 10% Equity capital *100
3 Business indicators
Inventories/
Number of days for warehousing 22 76 Cost of sales*365
Receivables balance/
The duration for the recovery of receivables 81 64 Turnover*365
Average duration for the payment of current Commercial debts under 1 year
arrears 103 102 /Turnover *365
Turnover/
Rotation speed of the fixed assets 0.5 0.4 Non current assets
Turnover/
Rotation speed of the total assets 0.39 0.4 Total assets
4 Profitability indicators
Profit prior payment of the interest
Profit capital ratio / earning capacity of the and tax on profit /
employed capital 3.90% 3.58% Total capitals*100
Gross profit from sales/

Gross margin from sales 67% 70% Turnover*100
10. Other information
a. 1. General
The company was set up on March 1, 2002 based on the general decision no. 1342/2001, by reorganization of S.C. Electrica S.A.
(Mother company or Electrica).
On December 31, 2008 nd December 31, 2009 the company is held as follows: 78% Electrica SA and 22% Fondul Proprietatea
(based on the Law 247 / 2005 and OUG 81 / 2007).
Compliant with the Government Decision no. 675 of 28.06.2007 with regard to reorganization by partial division of power
distribution and supply companies, starting with August 1st 2007 the company separated the supply activity by partial division,
setting up thus a new company, Electrica Furnizare Transilvania Sud.
Electrica Distributie Transilvania Sud having as main business object the distribution of power, power transit through own networks,
allotment of power by distribution operator, modernization and reengineering of the existent power equipment, as well as expansion
of automation, research in its field of activity, according to the Distribution Licence no. 465 of 2002, amended on 04.10.2007 by the
Decision of the National Authority for Regulations in the field of power.
The registered office is located at 25 Pictor Luchian street, Brasov, taxpayer reference number RO 14493260, Trade Register number
J08/ 238/ 2002.
The company has two-level structure: The management and power distribution subsidiaries (SDEE).

49
The subsidiaries of the power distribution and supply branches of the Company are the following :
a) S.C. Sucursala de Distributie a Energiei Electrice Alba
b) S.C. Sucursala de Distributie a Energiei Electrice Electrica Brasov
c) S.C. Sucursala de Distributie a Energiei Electrice Electrica Covasna
d) S.C. Sucursala de Distributie a Energiei Electrice Electrica Harghita
e) S.C. Sucursala de Distributie a Energiei Electrice Electrica Mures
f) S.C. Sucursala de Distributie a Energiei Electrice Electrica Sibiu.
a. 2.Regulating environment
The activity in the power supply sector is regulated by the National Energy Regulatory Authority (ANRE) established as
independent public institutions by the Government Ordinance no. 29/1998 and has, among others the following responsibilities:
the enforcement of the national mandatory system of regulation for the power sector in view of providing efficiency, competition,
transparency in the field and for the protection of consumers;
Issuance or suspension of operating licenses for the existent entities involved in the power sector or for the ones to emerge in the
future, intended for the creation of a competitive environment within the power or heat energy;
Drafting the methodology and criteria for calculation of the rates within the energetic sector and the frame agreements for the
sale, purchase and supply of electric and heat power to end customers.
Distribution of electric power
The activity of electric power distribution is a monopole type business and it is regulated by the method of flat rate basket
approved by the Order ANRE no. 31/2004. The distribution rates are set out on voltage levels (high, medium or low).
The methodology of the flat rate basket employed for the establishment of distribution rates provides the decrease of the variation
of the revenues and avoidance of significant fluctuations of the users prices.
ANRE estimates the necessary of annual revenues for a period of regulation using the financial data supplied by the distribution
operators for the previous period. The annual level of revenues is set forth taking into consideration the initial costs, the regulated
basis of the assets and the efficiency rate afferent to such assets.
The regulated basis of assets (BAR)
Compliant with the order ANRE no. 31/2004 and order 39/2007 the determination of distribution rates relies, among others, on the
regulated basis of assets.
The regulated basis of assets covers the net value of the tangible and intangible assets, acknowledged by ANRE and employed only
for the distribution regulated of electric power. BAR does not cover the fixed assets funded by donations, development fee received
or other non refundable funds, including the connection fee received from the new users of the power distribution network
b. Turnover
In 2009, Electrica Transilvania Sud distributed electric power to approximately one million consumers, while the total quantity of
power sold to the end customers was approximately 4.627.008 MWh.
In 2009, the average purchase price of power for own industrial consumption was 207,11 lei / MWh.
c. Auditor fees
The fee paid to the auditors for the tax year ended on December 31, 2009 is agreed by the Company and the auditor (KPMG Audit
SRL).
d. Foreign currency transactions
The foreign currency transactions are expressed in Lei at the exchange rate on the deal date. The assets and liabilities expressed in
foreign currency in the end of the year are expressed in Lei at the exchange rate of the date. The gains and losses of foreign exchange
rates differences, experiences and not experiences, are recorded in the profit and loss account of the year concerned. The exchange
rates Leu/USD and Leu/EUR on December 31, 2009 and December 31, 2008, have been the following:
December 31, December 31,

Currency
2008 2009
Leu/USD 2,8342 2,9361
Leu/EUR 3,9852 4,2282
50
e. Tax on profit
Numerical reconciliation between the tax on profit expense and the product between the accounting result and the applicable tax on
profit rate is the following:
December 31, 2008 December 31, 2009
Profit prior taxation 31.194.012 31.460.727
Effect of not deductible expenses 102.166.917 114.752.196

Other influences similar to revenues 19.211.159 29.557.158
Effect of not taxable revenues (49.943.487) (24.806.677)
Other deductible tax influences (76.689.061) (99.197.690)
Taxable profit 25.939.540 51.765.714
Total tax on profit (16%) 4.150.326 8.282.514
f. Revenues in advance
December 31, 2008 December 31, 2009

Investment subsidies 271,225,564 315.496.380
Revenues from tower rental 136,244 169.050
Total 271,361.808 315.665.430
In 2009 the amount of 20,647,654 lei related to depreciation of investment subsidies was resumed
11. Legislative fiscal frame
The legislative fiscal frame in Romania and its implementation is frequently amended and is object of different interpretations by
various Ministries of the Government. The Romanian Government has a series of agencies authorized to perform inspections of the
Romanian companies, as well as of foreign companies conducting business in Romania. Such controls are similar, by their nature,
with the fiscal audit made by the tax authorities in various countries, and are focused not only on tax issues, but on other legal or
regulating issues, of interest for the agency concerned. Moreover, agencies performing such controls are much less regulated and the
company, object of the control seems to have much fewer practical means of protection than similar agencies in other countries.
The tax on profit statements are the object of review and corrections by the fiscal authorities, generally for a period of five years after
the submission thereof.
The management considers that it had suitably recorded all tax obligations in the attached financial statements; though, the risk that
the fiscal authorities have other position related to the interpretation of such issues.

51
12. Commitments and conditions
The investment program
The company continues to be engaged in detailed investment programs as per goals and funding sources as follows:
A. Distribution activity
Funded from
Goal
Own source Other sources Total
Development of centers /production bases and

improvement of the work conditions 1.720.000 - 1.720.000
Lines and stations 110 kV ; 200.000 - 200.000
Reengineering, modernization of equipment 110

kV 8.995.000 1.807.000 10.802.000
Supply of power to new consumers ( RMJT ) ; 33.202.000 8.380.000 41.582.000

Purchases of independent machinery and other
investment expenses 9.763.000 - 9.763.000
Total 53.880.000 10.187.000 64.067.000
B. 110 kV activity
Funded from
Goal Own source Other sources Total
Development of centers /production bases and

improvement of the work conditions 1.200.000 - 1.200.000
Lines and stations 110 kV ; 9.259.000 15.157.000 24.416.000
Reengineering, modernization of equipment 110
kV 806.000 30.568.000 31.374.000
Supply of power to new consumers ( RMJT ) ; - - -
Purchases of independent machinery and other
investment expenses 9.855.000 - 9.855.000
Total 21.120.000 45.725.000 66.845.000
The above investment projects are periodically reviewed, so that the amounts actually spent may differ from the aforementioned
expenses.
Penalties for delay in the payment of debts by the power suppliers
On December 31, 2009 the company informs that certain obligations may emerge for which the resources output is not the only
solution, such as:
- Penalties for delay in payment calculated by Electrica SA on 31.12.2009 and awarded to the company for
assigned contracts, in amount of 251,421 lei ; such penalties differ from the ones calculated by Filiala de
Distributie Electrica Transilvania Sud (in amount of 222,081 lei )
- Penalties for delay in payment of power suppliers, invoices submitted by protocol (as per HG 675/2007). on
31.07.07 to FFEE TS in value of 1.750.645 lei (of which with Electrica 1.285.517 lei)
- Penalties for delay in payment of power suppliers, re-invoicing FFEE TS period 01.08.2007-31.12.2007, in value
of 1.341.948 lei (of which with Electrica 812.584 lei)
- penalties for delay in payment, calculated by Translectrica SA , as per notification no.2027/20.02.2007,

amounting to 212,531 We do state that the company does not recognize such penalties calculated, since they are
contested by the notification no.700/2406/23.02.2007
52
Other disputes
We have been notified that SC Best Recuperare Creante SRL. and SC Filiala de Intretinere si Servicii Energetice Electrica Serv SA
concluded the claim assignment agreement having as object transmission of the claim of SC Electrica Serv SA to SC FDEE Electrica
Distributie Transilvania Sud SA, contract that we decline and challenge, the company has hired the Law firm Enescu Panait, Pop &
Asociatii to provide legal assistance and representation of the company during trial.
The company won the trial in previous stages, and currently the appeal initiated by SC Best Recuperare Creante SRL is in progress.
The company management considers that payment of any amounts related to this dispute is not likely, considered the reasons
presented to the court.
Securities and mortgages
At December 31, 2009 the company has no longer mortgages and securities placed to banks, the ones based on Agreement 465/2002
ABB Utilities AB Sweden have been ordered to be cancelled by the conclusion no.6056/2008.
Environment related conditions
In 2009, SC FDEE Electrica Distributie Transilvania Sud SA continued the program of decrease of the level of pollution at the level
of all equipment.
Mainly, expenses for environment safety were made for: Prevention of soil pollution, decrease in air emissions, prevention of water
pollution, prevention of forest fires, collection, capitalization and controlled removal of waste.
In 2009 the total os costs for environment safety was 1,524,742 lei.
According to HG 173/2000, amended and completed by HG 291/2005 and HG 975/2007, SC FDEE Electrica Distributie
Transilvania Sud SA may use PCB condenser batteries under operation until the end of their life cycle, and for condenser batteries
removed from operation, removal plans will be drafted by and submitted with Regional Environmental Protection Agency.
PCB condenser batteries operating (926 parts) and provisional storage ones (24 pieces) will be removed as are no longer used.
Removal delay (for batteries no longer used) is: 31.12.2010.
HG 124/2003, amended and completed by HG 734/2006 and HG 210/2007 sets forth restrictions for the trade and use of asbestos and
related products, in view of protecting health and controlling asbestos pollution; according to these regulations, starting with
01.01.2007 the trade and use of asbestos are forbidden.
According to HG 734/2007 asbestos-based products and used or were operating before 01.01.2005 can be used until the end of their
life cycle.
Removal of asbestos surfaces was mostly done in 2007 and continued the following years, according to annual environmental
management programs.
The Environmental Management Program for 2010 includes replacement and removal of cement asbestos surfaces.
SC FDEE Electrica Distributie Transilvania Sud SA complies with the applicable legislation in the field of: waste management,
waste oil management and use and management of dangerous substances.
The financial statements do not cover any reserve for debts related to environment conditions, as these are deemed insignificant.
Lands used by the Company
Compliant with the Companys policy, the financial statements include only the value of the lands for which ownership titles have
been obtained at the date of drafting the financial statements.
According to Law no. 99/1999, in case the company obtains the ownership title for land, after privatization, the land shall be
considered contribution in kind of the state or local authorities. For such purpose, the company shall increase the share capital by the
value of the lands, and the beneficiaries of such increase shall be either the state or the local authorities.
Law 318/2003 stipulates that the lands afferent to public distribution networks existent upon the enforcement of the law (16,08.2003)
for which the distribution operator, holder of the license, has not acquired the ownership title, compliant with the law, are and remain
the states public ownership. At the same time, the holders of licenses for the exploitation of the manufacture capacities, transport
and distribution of power, acquire the rights of use, servitudes of underground passage, surface or aerial and access rights to public
utilities, related to the lands, public or private property, located next to energetic capacities.
Nevertheless the law does not prevent the company to obtain ownership titles over the surfaces of land on which buildings and
constructions, ownership of the company, are located and that do not belong to the distribution public network.

53
The company is involved in a series of trials related to the ownership of lands on which transformation units and distribution
networks are located, trials pending on the emergence of the law 318/2003. The final result of these actions can not be estimated
upon the date of these financial statements.
Offsetting payments
Compliant with the collective employment agreement signed between the Company and Unions, upon the dissolution of the
individual employment agreement at the Companys initiative, it shall pay a dismissal aid in relation to the seniority, as follows:
Number of main
1- 5 years 4
5- 10 years 6
10- 20 years 7
over 20 years 10
In case of collective dismissal, ordered by the collective employment agreement, the company shall pay to the employees a dismissal
aid in relation to the seniority of work as follows:
Number of main
1- 3 years 4
3- 5 years 6
5- 10 years 7
10- 20 years 15
over 20 years 20
Collective dismissals, as well as the dismissal aids stipulated, become applicable only after the approval of the rectification of the
revenue and expenses budget of Electrica, so that the salary fund approved for that year is not affected by such measures.
The aforementioned stipulations do not apply to the employees with individual employment contract for determined period of time.
The aforementioned provisions are not applicable to the employees benefiting from other higher salary titles accrued, established by
legal regulations of the companys reorganization or restructuring The employees hired again by the company, after dismissal, do not
benefit from the aforementioned titles, subject to the law, within Electrica.
The financial statements do not cover any reserve for debts related to compensation payments, since there if no obligation related to
this aspect.
13. Financial instruments and risk management
Risk management
Is covered by a company specific means, i.e. existence of performance agreements for th e entire management of the
branches, which clearly define the performance indicators to be achieved by the management, on which the increase
/decrease of the management payment depends.
Interest rate risk

The level risk of the interest rate is the risk that the value of a financial instrument fluctuate, due to the amendment of the
interest rate on the market compared to the interest rate applicable to the financial instrument concerned. The cash flow ris k
of the interest is the risk that the cost of the interest fluctuates in time.
The company, by SC ELECTRICA SA, has long term important credits involving interests with fixed and variable rates
exposing the company both to the risk of interest rate level and to the cash flow risk thereof.
Foreign exchange rate risk

The functional currency of the company is LEU, while a part of the long term funding costs are expressed in foreign
currencies, EUR and USD. Certain assets and liabilities are expressed in foreign currencies, that are later on converted to t he
exchange rate valid prior the date of drafting each balance sheet. The differences obtained are recorded in the profit and lo ss
account but do not affect the cash flows by the date of the accounts regulation.
Risks in relation to business partners

The commercial receivables are diminished by the reserves for insecure customers. The company has an important focus on
the credit risk with companies where the state is the main shareholder. The company, as entity subordinated to the state, has
an exposure risk that can be significantly affected by the Government policy.
54

Price risk management

Power distribution rates are established by ANRE orders.
Legislative risks
Tax controls are frequent in Romania, consisting of detailed checking of accounting records of taxpayers. Such controls are made
after months or even years from establishment of payment obligations. Consequently, the companies may owe taxes and fines.
Moreover, tax legislation is subject to frequent changes and the authorities often manifest inconsistencies in legislation interpretation.
Nevertheless, the company management considered that suitable reserves were made for all significant tax obligations.
Aam
ABBREVIATIONS USED
ANRE - National Energy Regulatory Authority

ATR - Connection technical approval
BVC - Income & Expense Budget
CPT- Own Technological Consumption
FDEE - Power Distribution Subsidiary
FFEE - Power Supply Subsidiary
it, IT -high voltage
Jt, JT, lv -low voltage
LEA -overhead power line
LES -underground power line
mt, MT- medium voltage
PA Feed Point
p.i.f. - commissioning
PRAM -Relay Protection And Automation Systems
PT Transformer Substation
RED -Electric Distribution Network
ROF - regulations and procedures
RMJT -Medium And Low Voltage Network
SAD - Automation Distribution System
SDEE - Power Distribution Branch
SMI - Quality, environment and occupational health and security integrated management system
SP- Own Sources
SRAC -Romanian Quality Assurance Company
SRE - Power Renewable Sources

ELECTRICA DISTRIBUIE TRANSILVANIA SUD
25 Pictor Luchian street, 500193, Brasov

Phone: 0268 305 999, Fax: 0268 305 004
email: fdee@electricats.ro
www.electricats.ro

Electrica - AnnualReport 2009 Eng (m3)

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Electrica - AnnualReport 2009 Eng (m3)

Uploaded by

Copyright:

Available Formats

coperta

ELECTRICA DISTRIBUIE TRANSILVANIA SUD

2 Raport anual 2009

Results and efficiency

Active involvement and team work

Innovation and opening to new

Community and environment

4 Raport anual 2009

GENERAL ASSEMBLY OF SHAREHOLDERS

6 Raport anual 2009

Staff structured per study category

12.03.2009 Power injection Glua, area PTA 1, county Harghita

01.04.2009 Change of organizational structure of the subsidiary, by setting up Development Division

16.06.2009 Modernization of connections, area CE Tg. Mure

29.06.2009 SAD connection station Malna, County of Covasna

30.06.2009 Electrician Trophy contest, branch stage, held at Alba Iulia

01.07.2009 Modernization LEA 0,4 kV Rdeti county of Alba

12.08.2009 Modernization station 110/20 kV Sfntu Gheorghe, county of Covasna

20.08.2009 Modernization station 110/20 kV Sfntu Gheorghe, county of Covasna

25.08.2009 Expansion of networks district Tineretului, mun. of Sibiu

28.08.2009 Increase of safety level Station 110/20 kV Dumbrava, Sibiu

03.09.2009 Modernization PT- s Reghin, county Mure

22.09.2009 SAD LEA mv county of Braov County

29.10.2009 Modernization LEA 20 kV Bartolomeu PT 8029 Connections- PA 80 Stupini

29.10.2009 Rehabilitation of LV networks Lung Street, Braov

30.11.2009 SAD PA- PT county of Sibiu

30.11.2009 Switching to 20 kV industrial area Trgu Mure

11.2009 SAP IS-U extension commissioning

23.12.2009 Modernization LEA 0.4 kV Lunca Larg, county of Alba

28.12.2009 Modernization LEA 0.4 kV Drleti-Trifeti, county Alba

29.12.2009 Repair and modernization LEA lv, Carierei Street, Braov

30.12.2009 Modernization LEA 0.4 kV Ocna Mure, county of Alba

30.12.2009 Modernization LEA 0.4 kV Ponor, county of Alba

8 Raport anual 2009

Staff structured per study category

Staff structure per age

Ref.no. Equipment M.U. Total

Ref.no. Equipment M.U. Total

SC FDEE Electrica Distributie Transilvania Sud SA

10 Raport anual 2009

Situation of incidents according to causes

1. Deficiencies in conception and design of the equipment

2. Deficiencies in manufacture of equipment

3. Deficiencies in equipment construction-assembly

4. Improper material quality

5. Operation of maintenance - unsuitable repairs of equipment

6. Demands over designed limits of equipment due to

7. Inaccurate operation of computer and communication

8. Special meteorogical conditions

9. Causes out of the equipment manager control

10. Unindentified causes

0 200 400 600 800 1000 1200

Power plant consumptions 5 GWh 39 GWh

Power distributed to captive clients 3.266 GWh 2.999 GWh

Power distributed to FFEE eligible 453 GWh 424 GWh

Power distributed to other suppliers eligible 1.137 GWh 1.188 GWh

Administration (FDEE + FFEE) 26 GWh 16 GWh

CPT (%) 11.46 GWh 12.29 GWh

Border input power 2002-2009 (GWh)

6003 6000 5955

2002 2003 2004 2005 2006 2007 2008 2009

Distributed power for eligible consumers 2009

SC ENEX SRL 2.50%