The Impact of Government Emergency Ordinance No. 114/2018 on the Profitability of Companies Acting in Energy Domain, Listed on Bucharest Stock Exchange

On December 29, 2018, the Government Emergency Ordinance no. 114/2018 has been published. This Ordinance, among others, established a multitude of measures, both economic and fiscal that aimed companies acting in the energy field. The monetary contribution, received from the license holders in the field of energy, was set at the level of 2 %, which means an increase of 20 times of this duty. These companies also have the obligation to sell the natural gas quantities, resulting from the current domestic production activity, at the price of 68 lei / MWh to eligible suppliers and final customers. All these measures have had a direct impact on companies acting in the energy field, affecting their profitability and simultaneously their ability to carry out investment projects. This paper analyzes the way the e companies listed on Bucharest Stock Exchange, acting in energy field, were affected by Government Emergency Ordinance no. 114/2018 measures.