Verdict of the Supreme Court with regard to the cassation appeal against the verdict of the Court of Appeal regarding the settlement of value of annual adjustment of the stranded costs (so-called LTC compensations) for 2008 for Lublin-Wrotków CHP
No. of the report: 35/2013
Report date: 09.05.2013
Report legal ground: Art. 56 section 1 p. 1 of Act on Public Offering – confidential information
Contents of the report
The Management Board of PGE Polska Grupa Energetyczna S.A. ("PGE") discloses that on May 8, 2013 the Supreme Court repealed – appealed by PGE GiEK S.A. Branch Elektrociepłownia Lublin-Wrotków („PGE GiEK ECLW”) with the cassation appeal – the verdict of the Court of Appeal of March 7, 2012 that allowed the appeal of the President of the Energy Regulatory Office (the „ERO President”) regarding the settlement of value of annual adjustment of the stranded costs (so-called LTC compensations) for 2008 for PGE GiEK ECLW and remitted the case for re-examination by the Court of Appeal.
The claim value, calculated as a difference between the amount of annual adjustment calculated by the PGE Group company and the amount settled by the ERO President in decision, amounts to
PLN 26.7 million in the PGE GiEK ECLW case.
Description of the case:
On July 31, 2009, the ERO President issued decision in relation to PGE Elektrociepłownia Lublin – Wrotków Sp. z o.o. (currently this company is a branch of PGE Górnictwi i Energetyka Konwencjonalna S.A), concerning the annual adjustment of stranded costs due under the Act of June 29, 2007 on the principles of compensating for generators’ costs arising in connection with the early termination of long-term contracts for the sale of capacity and electricity (Dz. U. of 2007 No. 130, Item 905, as amended). Pursuant to the decision mentioned, above mentioned company was obliged to return amount indicated in the decision to Zarządca Rozliczeń S.A.
PGE GiEK ECLW appealed against the decision of the ERO President to the Court of Competition and Consumer Protection (“CCCP”). On May 26, 2010 the CCCP changed decision of the ERO President in accordance with the appeal filed by the PGE GiEK ECLW. The ERO President appealed against this judgement.
On March 7, 2012 the Court of Appeal in Warsaw allowed the appeal of the ERO President against a judgement of the CCCP of May 26, 2010 and changed the CCCP verdict by dismissing the appeal of PGE GiEK ECLW. PGE GiEK S.A. later filed a cassation appeal with the Supreme Court, resulting in the trial by the Supreme Court on May 8, 2013.
Legal ground: Art. 56 section 1 point 1 of the Act on public offering, conditions governing the introduction of financial instruments to organised trading, and public companies (Dziennik Ustaw 2009 no 185, item 1439, as amended).