Decisions of the President of the Energy Regulatory Office regarding the annual adjustments of the stranded costs for 2010
33/2011
04.08.2011 10:27
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. (the “Company”) advises 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 2009, which are due to five 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.
According to the mentioned decisions, generators from PGE Capital Group are obliged to return approximately PLN 317 million in total to Zarządca Rozliczeń S.A. The return of this amount will not affect the reported results of the PGE Capital Group.
The Management Board of the Company, as well as the Management Boards of PGE Górnictwo i Energetyka Konwencjonalna S.A. and PGE Elektrownia Opole S.A., disagree with the decisions of the ERO President and plan to appeal to the District Court in Warsaw, Court of Competition and Consumer Protection (“CCCP”), just as in the case of the annual adjustment for the years 2009 and 2008.
A similar dispute with the ERO President, regarding the annual adjustment for the year 2008 was settled fully in favour of PGE Capital Group. In accordance with six verdicts of the CCCP announced on May 26, 2010, the decision of the ERO President, regarding the settlement of value of annual adjustment of the stranded costs for 2008, due to the termination of long-term contracts for sale of capacity and electricity, was changed in accordance with the appeals filed by the entities from PGE Capital Group. These verdicts are not yet valid and the ERO President appealed against these decisions.
The dispute regarding the annual adjustment for the year 2009 has not been settled yet.
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).
According to the mentioned decisions, generators from PGE Capital Group are obliged to return approximately PLN 317 million in total to Zarządca Rozliczeń S.A. The return of this amount will not affect the reported results of the PGE Capital Group.
The Management Board of the Company, as well as the Management Boards of PGE Górnictwo i Energetyka Konwencjonalna S.A. and PGE Elektrownia Opole S.A., disagree with the decisions of the ERO President and plan to appeal to the District Court in Warsaw, Court of Competition and Consumer Protection (“CCCP”), just as in the case of the annual adjustment for the years 2009 and 2008.
A similar dispute with the ERO President, regarding the annual adjustment for the year 2008 was settled fully in favour of PGE Capital Group. In accordance with six verdicts of the CCCP announced on May 26, 2010, the decision of the ERO President, regarding the settlement of value of annual adjustment of the stranded costs for 2008, due to the termination of long-term contracts for sale of capacity and electricity, was changed in accordance with the appeals filed by the entities from PGE Capital Group. These verdicts are not yet valid and the ERO President appealed against these decisions.
The dispute regarding the annual adjustment for the year 2009 has not been settled yet.
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).
Signatures of persons representing the company
| Date | Name | Position and function |
|---|---|---|
| 2011-08-04 11:23:53 | Tomasz Zadroga | President of the Management Board |
| 2011-08-04 11:23:53 | Wojciech Ostrowski | Vice-President of the Management Board |