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Annex to the agreement with Polska Grupa Górnicza S.A.

  • No. of the report: 38/2018
  • Report date: 30.11.2018 08:47
  • Report legal ground: Art. 17 sect. 1 of MAR – inside information.

Contents of the report

With reference to current report number 82/2013 the Management Board of PGE Polska Grupa Energetyczna S.A. (“PGE”) notifies that on November 30, 2018 PGE has received the information that Polska Grupa Górnicza S.A. has signed an annex to the agreement dated August 13, 2013 concerning hard coal supplies for units 5 and 6 in Opole Power Plant (the "annex").

Parties of the annex adjusted arrangements to meet the current legal and formal requirements and abandoned the determination of hard coal price based on indicators involving the average electricity price, average market price of hard coal and average cost of CO2 emission allowances. Parties of the agreement set hard coal price for the period till December 31, 2022, whereas prices for the period beyond that date will be determined upon negotiations.

Estimated value of the annex for 20 consecutive annual periods following the initial delivery amounts to approx. PLN 16 billion.