​Enel is one of the largest energy companies in Romania, providing electricity and gas to around 3.1 million customers. Yesterday, the company completed a deal to sell all operations in our country, i.e. supply contracts, stores, distribution network, as well as wind and solar farms it owns, to PPC Greeks. Enel customers do not need to do anything, they will be transferred to the new company without any impact and the name of the supplier will change over time.

In Romania we also have previous CEZs. Two years ago, the Czech parent company decided to sell its operations in Romania to the investment fund Macquarie Infrastructure and Real Assets. The transition of customers was done quietly, they were not affected in any way, and furthermore, the supplier in Romania is still called CEZ Romania.

In the case of Enel, the name of the supplier will change over time to allow consumers to get used to the new owner.

Enel customers do not need to do anything

For Enel customers in Romania, the agreement does not provide any obligations. They do not need to do anything, only their contracts will be transferred to the new owner, and the supply of electricity or gas will not be affected.

Enel announced its intention to stop its activities in Romania exactly one year ago. Then the authorities rushed to assure people that this transaction would not affect them.

“The owner changes, the company does not disappear,” said Bohdan Chiritsoyu, president of the Competition Council.

“I will give you an example of CEZ, which is still called CEZ, although the owner is no longer a Czech company, but an Australian investment fund located in London. But clients have a contract with CEZ and receive CEZ services. There is no reason why the sale will affect customers. A company exit is not a tragedy in itself, companies come and go. Again, at CEZ I thought the change went well, I didn’t see any changes in the market. I don’t understand why Enel’s exit should be treated differently than CEZ’s exit,” added Chiritsou.

For their part, NARE representatives issued a statement in which they specified that the continuity of electricity and gas supply will not be interrupted, in accordance with current legislation.

“In the event that any entity operating in the electricity/natural gas supply sector withdraws from the Romanian market, the end consumers of electricity/natural gas will be guaranteed uninterrupted supply of electricity/natural gas, as the case may be,” – ANRE showed.

Why is Enel leaving Romania?

A year ago, on November 22, 2022, during an event dedicated to investors, Francesco Starace, the company’s CEO, said that it was a good time to capitalize assets in Romania.

“We have decided to exit Romania because we have reached a point where it is difficult for us to achieve further growth in the future,” Enel CEO Francesco Starace said at a press conference this afternoon.

He emphasized that the reason for leaving is not the legal framework in Romania, which is no better and no worse than many others.

The company’s plan was to reduce net debt from 69 billion euros last year to 51-52 billion euros by the end of this year.

History of Enel in Romania

Enel entered Romania in 2004 when it won the privatization process of Electrica’s electricity distribution and supply subsidiaries in Banat and Dobrudja for 112 million euros, which was considered small at the time.

Read here what Enel undertook to do then.

Later, in 2007, it also acquired Electrica’s largest subsidiary, respectively Muntenia Sud, which also includes Bucharest, for €820 million.

Read here who Enel competed with to take over Muntenia Sud.

Meanwhile, the company has also entered the natural gas supply market as well as the power generation market, with a portfolio of 600 MW and 5 GW renewable energy projects in various stages of development.

Enel’s total investments in Romania amounted to approximately 4.5 billion euros, including the amounts for the privatization of Electrica’s subsidiaries and those allocated to the construction of wind and photovoltaic parks.

Last night the companies announced the completion of the deal, which will see PPC acquire Enel’s assets in Romania for 1.240 billion lei.

The takeover of Enel Romania turns PCC into an important player in the region

For Enel, the absorption of Enel’s assets in Romania is a big problem.

“The official completion of the major deal to acquire Enel Romania is a turning point that marks a new era for PPC. This major agreement creates new opportunities not only for our country, but also for the entire energy market of Southeast Europe, as it strengthens PPC’s position in the region and turns it into the largest energy player in the region,” wrote EnergyPress Greek journalists today.

The PPC will mainly focus on investments in the renewable energy sector.