COVID-19 Emergency

Immediate reaction towards Covid-19

No reduction in staff and no mandatory temporary leaves

Collective bargaining on:
- adoption of appropriate safetymeasures for employees in the production sites
- reorganization of O&Mactivities, production plant & Control room
- smart working extended to over 70% of corporate population, nearly 100% of office staff
- crisis management scheme in event of mutual infection between employees into a shift

Enchanced IT resources: 10X rise in remote meetings thanks to most advanced platforms

Covid-19 health insurance for all the employees

ERG allocated €2mn to support the healthcare system where its production sites operate

ERG's people donated 2,300 hours of their work to the Civil Protection Department

ERG's majority shareholder, allocated €1mn in favour of Genoa's front-line hospitals

ERG supports 2 projects of the Fondation des Hopitaux de France in favour of healthcare
professionals and of rest homes for the elderly

Set a Daily WAR-cabinet meeting with top-mgmt to ensuring business continuity

Electricity supply among the essential services in this period of emergency

Put in place a set of measures to guarantee the best-in-class H&S standards for ERG people

Some delays in construction investment program and authorization process

Tough trading environment, although most of the electricity production already hedged
Source: DIGITAL SUSTAINABILITY WEEK Presentation - 29 June/3 July 2020

Following the global spread of the health crisis, at the end of January 2020 the World Health Organisation qualified the COVID-19 epidemic as a public health emergency of international concern and then, on 11 March 2020, declared COVID-19 to be a Pandemic. As regards Italy, via specific Decrees of the Presidency of the Council of Ministers (DPCM), a state of emergency was declared, currently in force until October 15th, and explicit measures were adopted firstly in the Lombardy region and Northern Italy and later throughout the entire national territory.

From the end of March a series of additional provisions were put in place for the suspension of industrial production activities, with the exception of those services considered essential, including among the latter the supply of electricity and the related maintenance operations and interventions. This shutdown situation was extended until May 3rd; from the next day with DPCM dated 26 April 2020, the so-called "phase 2" commenced and was then replaced by way of DPCM dated June 11th with "phase 3", which further alleviated the containment measures.

The other European countries where the ERG Group operates, including France and Germany, albeit with different timing, followed the same path taken by Italy and gradually suspended activities, apart from those services deemed to be essential and of public utility, which again includes the supply of electricity. At the first signs of emergency the company promptly took action, putting in place all necessary measures to guarantee, on the one hand, the health of its employees and, on the other, the operational continuity of its assets in conditions of safety.

The most important organisational measure taken, which was in fact also recommended by the competent Authorities, concerned agile working (smart working), which was introduced in advance with respect to the provisions of law, and was extended to all days of the week and to all the Group's branches in Italy and abroad, involving over 70% of the company's people, corresponding to the entire "office-based" workforce, excluding only staff assigned to the running and maintenance of plants with a view to safeguarding the operational and management continuity of business assets in conditions of safety. 


We are women and man living in different and distant places. We also do very different jobs: we are engineers, designers, turbine technicians, talent managers, administrators.

But the thing that makes us equal and united, and even more so in this difficult time for everyone, is the pride and awareness of working together to make a real contribution to a cleaner and more sustainable world, of being part of something bigger.

From Sicily to Scotland, from France to Romania, we are ERG.



From May 4th ERG, whilst allowing potential access to respective offices, having carried out all interventions necessary to accommodate our people within the working environments in observance of the safety regulations and protocols envisaged for Phase 2, confirmed and encouraged the continuation of remote working.

Starting from June 22nd, according to the progressive development of the situation (Phase 3) a gradual and regulated return to working activities at most of ERG's offices took place, guaranteeing until 30 September 2020 the possibility to work remotely for three business days a week. Also during this phase, and until the end of the emergency, this possibility was extended to all business days in the week for parents of children under the age of 14 who hold the requisites set forth by Article 90 of Law Decree 34/2020 (Relaunch Decree) and for the so-called "fragile workers".

Demonstrating the effectiveness of the measures undertaken, throughout the entire period of the health emergency there has been no interruption of company activity at any production site, either in Italy or abroad, nor have any cases been reported of contagion in the workplace.

During this period there have been no reductions in staff and none have been planned. Moreover, the company has not made use of social safety nets or compulsory short-time working. On the other hand, 18 new hires have entered the Group from March until now.

ERG's response to the COVID-19 crisis closely reflects its own business model, which has always been oriented towards the creation and sharing of sustainable value for shareholders, employees and the community in general.

With regard to the guidelines provided by the European Securities and Markets Authority (ESMA) on 11 March 2020 and subsequent communications, we therefore confirm that the Group's management has set up a continuous monitoring of the actual and potential impacts of the COVID-19 crisis on the Group's business activities, financial situation and economic performance.

More specifically, attention is being paid to the evolution of both the macroeconomic and the electricity scenario, in terms of the trend in demand and in electricity and gas prices, and the specific assessment of credit risk and liquidity risk. It is well known that the ongoing international health crisis has led to a significant overall downturn in electricity demand as regards all the reference markets, due above all to the restrictions imposed on the parties involved in production activities, by way of procedures that differ from country to country. In this situation electricity spot prices have posted major decreases in all the Group's countries of operation.

However, both thanks to the significant impact of regulated remuneration systems on the Group's revenues and because a predominant part of RES-E output and the Clean Spark Spreads associated with the current year's thermoelectric power production were already covered by forward sales in previous years, in keeping with the Group's three-year hedging policies, during the first half of 2020 the effects on the Group's results have been limited.

During this period of evident uncertainty, the Group promptly prepared an update on the energy scenario, in order to consider the effects of the aforesaid economic and health crisis, hypothesising in particular a falloff in electricity demand, a downturn in the price of gas and therefore a decrease in the selling price of electricity in Italy and abroad above all over both a short and medium/long-term timeframe; calculation of the discount rate at 30 June 2020 was also updated and on average showed an upward trend with respect to the values at the end of 2019.

With reference to the 2018-2022 Business Plan, EBITDA guidance was downwardly revised by 4%, estimating an overall result of between 480 and 500 million Euro, compared to the previous range of 500-520 million Euro, in order to take account of the effects of the COVID-19 health crisis on electricity prices, within a scenario of lower volumes compared to expectations above all as regards hydroelectric power.

FY2020 investments have been revised to a range of between 150 and 180 million Euro, with a downturn compared to the earlier indication of 185-215 million Euro, following some probable expenditure postponements to 2021 associated with the potential slowdown in construction activities and connection to the network caused by the lockdown in European countries.

With reference to financial soundness, in May 2020 the Fitch rating agency affirmed the Investment Grade rating in view of the soundness of our business profile, the resilience demonstrated in combatting the post COVID-19 crisis and our ability in handling the effects associated with the pandemic.

A detailed programme put in place to fight the COVID-19 emergency

A detailed programme put in place to fight the COVID-19 emergency
A seven phase programme against the Coronavirus, to be implemented at all ERG premises. We have kicked off by adjusting workplace cleaning procedures to suit the new situation since the first stages of the emergency; we have then had to reorganise the distribution of information to all employees regarding essential rules of conduct that need to be complied with in order to limit risk; collaboration with the company physician with regard to all risk situations; remote working procedures have been introduced on a gradual basis, while guaranteeing the continuity of work activities, along with activity reduction plans at all operational sites and operating instructions have been issued by Management on how to operate while safeguarding two crucial aspects, that is to say the reduction of personal contact and maintaining the distance of 1 metre between all personnel.
Page updated at 16 Oct 2020