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Information about approval of G tariff for PGE Obrót for the period July 1, 2024 – December 31, 2025 and its impact on financial results


03.07.2024 16:24

Art. 17 sect. 1 of MAR – inside information.

Contents of the report

The Management Board of PGE Polska Grupa Energetyczna S.A. (“PGE”, the “Company”) discloses that on June 28, 2024 the President of the Energy Regulatory Office (the “ERO President”) approved the electricity sale price for G tariff off-takers for the period July 1, 2024 – December 31, 2025 for PGE Obrót S.A. (PGE’s subsidiary) at an average level of PLN 623 per MWh (price excluding value added tax and excise tax). The sales price for electricity approved by the ERO President is significantly lower compared to the tariff approved in December 2023 which was to be applicable throughout the entire year 2024 and which resulted in creation by PGE Obrót S.A. of a provision for onerous contracts (based upon IAS 37 Provisions, Contingent Liabilities and Contingent Assets) as at December 31, 2023 (about which the Company informed in the current report no. 43/2023 and in the consolidated financial statements of the PGE Group for 2023).

With regard to above, after analyses based on forecasts for the whole tariff period July 1, 2024 – December 31, 2025, the Company discloses that no additional provision for onerous contracts is required in PGE Obrót S.A., however, for the second half of 2024 a loss on G tariff has been estimated in amount of approximately PLN 550 million (above the amount of the provision mentioned above).

Above estimates are based on the electricity volume and price contracted to date by PGE Obrót S.A. for G tariff off-takers for the tariff period mentioned above and on projections of future contracting.

The Company, along with the auditor, will be analysing influence of the above on the consolidated results of the PGE Group in accordance with the International Financial Reporting Standards.

Signatures of persons representing the company

Date Name Position and function
2024-07-03 Dariusz Marzec President of the Management Board
2024-07-03 Robert Kowalski Vice-President of the Management Board