edp announcement
Clarification on measures proposed by the Public Prosecutor's Office
Saturday,
06
June
2020
Clarification on measures proposed by the Public Prosecutor's Office
Lisbon, June 6th 2020: EDP - Energias de Portugal, S.A. (“EDP”) informs the market and the public in general:
- EDP’s CEO, Mr. António Mexia, and EDP’s Executive Board member, Mr. João Manso Neto, were notified yesterday on the Public Prosecutor’s Office proposals regarding a revision of the measures of constraint related to the judicial procedure in which it is under investigation the early termination of Power Purchase Agreement (Contratos de Aquisição de Energia – “CAE”) regime and transition to the Costs of Maintenance for Contractual Balance (Custos de Manutenção do Equilíbrio Contratual – “CMEC”) regime and, also, of the extension of the hydro public domain right of use (Domínio Público Hídrico – “DPH”) up to the term of the useful life of the power plants under CMEC regime, in which both were appointed as defendants on June 2nd 2017, and is currently in the phase of inquiry.
- The proposed measures include the suspension of their executive functions at EDP.
- The proposed measures are not adequately grounded and the facts that allegedly support them are not identified. Regarding the issues above referred, EDP has already released information to the market on: November 11th 2004, December 27th and 29th 2004, January 27th 2005, February 16th 2007, June 15th 2007 and September 20th 2019.
- These proposals of the Public Prosecutor’s Office will be contested by the legal representatives of Mr. António Mexia and Mr. João Manso Neto, by June 15th 2020.
- Only following this date will there be a judicial decision regarding the measures proposed by the Public Prosecutor’s Office, remaining under inquiry stage after that decision.
- EDP’s management team is in full possession of its powers and working with its customary sense of focus on shareholder value. All the internal corporate governance mechanisms are in place to ensure the execution of the Business Plan presented to the market in March 2019.
EDP - Energias de Portugal, S.A.