Romania: Transelectrica records accounting loss after tax audit

State-owned power grid operator Transelectrica has revised downwards its 2017 result. The company posted a RON 47.9 million loss (EUR 10.5 million) after initially announcing a preliminary net profit of RON 26 million (EUR 5.7 million) in February.

The company had a difficult year as the energy sector regulator ANRE decided to cut electricity transmission tariffs starting July 1, 2017.

Moreover, the company was negatively impacted by a decision of the tax agency ANAF, which decided that it had to pay RON 99 million (EUR 21.7 million) extra taxes, after a tax audit ended on June 30, 2017. The tax audit targeted the 2005-2010 period and the company said that some of its expenses in that period were considered non-deductible as the tax inspectors couldn’t find the invoices, which were destroyed in a fire that burned down the Transelectrica headquarters in Bucharest, in June 2009.

“Although these last years the fore-mentioned issues were known by the Company management, being formalized at the last ANAF audit, no economic-financial analysis was made in accordance with specific standards in view of constituting a provision in the past years,” reads the company’s report.

The company’s representatives said, however, that this accounting loss does not impact its operations and financial capability to carry out its investment and maintenance plans.

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