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The CCCP Court issued verdicts which allowed the appeals of PGE GiEK S.A. and changed President of the Energy Regulatory Office decisions regarding settlement of value of annual adjustment of LTC compensations for 2009 for PGE GiEK S.A. Branch Elektrownia Turów and PGE GiEK S.A. Branch Elektrociepłownia Lublin – Wrotków and for 2010 for PGE GiEK S.A.

  • No. of the report: 49/2013
  • Report date: 11.06.2013
  • 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 June 10, 2013 the District Court in Warsaw - Court of Competition and Consumer Protection (the "CCCP") issued verdicts in cases regarding settlement of value of annual adjustment of the stranded costs for years 2009 and 2010. Detailed information on the verdicts is presented below:

1. On June 10, 2013 the CCCP issued verdicts which allowed the appeals of PGE GiEK S.A. Branch Elektrownia Turów and PGE GiEK S.A. Branch Elektrociepłownia Lublin – Wrotków and changed the decisions of the President of Energy Regulatory Office from July 30, 2010 regarding the settlement value of annual adjustment of the stranded costs for 2009 for PGE GiEK S.A. Branch Elektrownia Turów and PGE GiEK S.A. Branch Elektrociepłownia Lublin – Wrotków for 2009 due as a result of the termination of long-term contracts for sale of capacity and electricity (so-called "LTC compensations").

The claim value in Elektrownia Turów case amounts to approximately PLN 223.5 million and in Elektrociepłownia Lublin – Wrotków case amounts to approximately PLN 66.8 million. The total claim value of disputes concerning LTC compensations for 2009 due to generators from the PGE Capital Group, calculated as a difference between the amount of annual adjustment calculated by the companies and the amount settled by the ERO President in decisions, amounts to PLN 672.9 million.

Two above CCCP verdicts of June 10, 2013 are the last CCCP verdicts annual adjustments of stranded costs for 2009. On June 4, 2012 CCCP issued favourable for PGE verdict regarding ZEDO (PGE’s current report no 26/2012 dated June 4, 2012), on June 19, 2012 CCCP issued favourable for PGE verdict regarding Elektrociepłownia Gorzów (PGE’s current report no 29/2012 dated June 20, 2012), on March 18, 2013 CCCP issued favourable for PGE verdict regarding Elektrociepłownia Rzeszów (PGE’s current report no 22/2013 dated March 19, 2013) and on April 11, 2013 CCCP issued favourable for PGE verdict regarding Elektrownia Opole (PGE’s current report no 28/2013 dated April 11, 2013).

The above judgements of June 10, 2013 are not final and binding. ERO President is entitled to appeal against the verdicts to the Court of Appeal.

2. On June 10, 2013 the CCCP issued verdicts which allowed the appeal of PGE GiEK S.A. and changed the decision of the President of Energy Regulatory Office from July 2011 regarding the settlement value of annual adjustment of the stranded costs for 2010 for PGE GiEK S.A. (including for period from January 1, 2010 till August 31, 2010 for PGE GiEK S.A. as a legal successor of PGE Elektrownia Turów S.A., PGE Zespół Elektrowni Dolna Odra S.A., PGE Elektrociepłownia Rzeszów S.A. and PGE Elektrociepłownia Lublin-Wrotków Sp. z o.o.).

The claim value in PGE GiEK S.A. case amounted to approximately PLN 393.5 million. The total claim value of disputes concerning LTC compensations for 2010 due to generators from the PGE Capital Group, calculated as a difference between the amount of annual adjustment calculated by the companies and the amount settled by the ERO President in decisions, amounts to approximately PLN 539.5 million.

CCCP verdict of June 10, 2013 is the first court verdict regarding annual adjustments of stranded costs for 2010.

The above judgement of June 10, 2013 is not final and binding. ERO President is entitled to appeal against the verdict to the Court of Appeal.

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).
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