Enefit Connect OÜ’s claim against the subsidiary of Harju Elekter

In its stock exchange release published on , AS Harju Elekter announced the termination of the framework agreements for hermetic distribution transformers concluded by its subsidiary Energo Veritas OÜ with Enefit Connect OÜ and that Enefit Connect OÜ does not consider the cancellation of the framework contracts to be lawful.

On 20 September 2022, Enefit Connect OÜ filed a claim against Energo Veritas OÜ for a breach of the framework agreements for a total amount of 1,374,645.38 euros. The amount includes fines for delays, non-fulfilment of orders, and failure to ensure emergency reserves. In addition, Enefit Connect OÜ notified its intention to file a claim for an amount of 2,094,249 euros arising from the difference between the prices agreed in the framework agreements and the prices of the agreements awarded by Enefit Connect OÜ as a result of the dynamic procurement system. This is a loss for the future, as Enefit Connect OÜ has not yet made any payments in excess of the price stated in the framework agreement as of 20 September 2022.

Energo Veritas OÜ is of the opinion that the framework agreements have been cancelled and the framework agreements have been lawfully withdrawn from, and does not admit or concede the merits of the claim or the existence of an infringement.

Above mentioned financial claims may have a negative impact on the financial position of the group.

Harju Elekter is an international industrial group with more than 50 years of experience, whose main activity is the development and production of electrical and automation equipment. Part of the technical solutions of Harju Elekter are aimed at the renewable energy sector, offering complete plans for solar power plants, electric vehicle charging stations, and other related solutions. Its factories in Estonia, Finland, Sweden, and Lithuania employ approximately 900 employees, and the Group’s revenue for the first six months 2022 was 79.2 million euros. The shares of Harju Elekter are listed on the Nasdaq Tallinn Stock Exchange.

Tiit Atso

Chairman of the Board