Contents of the report
The Management Board of PGE Polska Grupa Energetyczna S.A. ("PGE") discloses, that it has received information about decisions of the President of the Energy Regulatory Office (the "ERO President") concerning the annual adjustment of the stranded costs and annual adjustment of the costs generated in gas-fired units for the year 2012, which are due to certain generators from PGE Capital Group according to the Act of June 29, 2007 on coverage of stranded costs resulting at generators in relation to accelerated termination of long-term contracts ("LTC Act").
According to decisions of ERO President generators from PGE Capital Group will receive from Zarządca Rozliczeń S.A. approximately PLN 177 m.
According to decisions of ERO President:
1) annual adjustment of the stranded costs generated in Turow Power Plant and Rzeszów CHP for the year 2012 and Opole Power Plant from March 13, 2012 to December 31, 2013 amounts to app. PLN (+)167 m. PGE does not dispute this amount;
2) annual adjustment of the stranded costs generated in Opole Power Plant from January 1, 2012 to March 13, 2013 amounts to app. PLN (-)1m. PGE does not dispute this amount;
3) adjustment relating to the cost of use of the gas collected and cost of the non-collected gas in Rzeszów CHP amounts to app. PLN (+)11m. The Management Board of PGE Gornictwo i Energetyka Konwencjonalna S.A. is planning to appeal the respective ERO President decision.
The above mentioned decisions of the ERO President will not have significance for the reported revenues and profits of the PGE Capital Group