The Management Board of PGE Polska Grupa Energetyczna S.A. (“PGE”, the “Company”) discloses that on January 3, 2020 the President of the Energy Regulatory Office approved the electricity sale price for G tariff off-takers for PGE Obrót S.A. (PGE’s subsidiary) at an average level of PLN 289.37 per MWh. G tariff will be binding from January 18 to March 31, 2020.
Accordingly, based upon IAS 37 Provisions, Contingent Liabilities and Contingent Assets, a need was identified in Supply segment to create provision for onerous contracts. The value of the provision, estimated for whole year 2020, will be recognised in the fourth quarter of 2019 in the amount of approx. PLN 220-260 million. At the same time PGE reserves that the value of the provision may change and its final value will be presented in the periodic report of the PGE Capital Group for year 2019.
The Company, along with the auditor, will be analysing influence on the consolidated result of the PGE Group according to the International Accounting Standards.