The verdict of the Court of Appeal regarding the settlement of value of annual adjustment of the stranded costs (so-called LTC compensations) for 2008 for ZEDO
107/2013
12.12.2013 14:15
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. discloses that on December 11, 2013 the Court of Appeal in Warsaw issued a verdict which partially acknowledged the appeal of the President of the Energy Regulatory Office (the “ERO President”) against a judgement of the Regional Court in Warsaw – the Court of Competition and Consumer Protection (the “CCCP”) of November 12, 2012 (see current report 58/2012) regarding the settlement of value of annual adjustment of the stranded costs for 2008 for PGE GiEK S.A. Branch Zespół Elektrowni Dolna Odra (“ZEDO”) due as a result of the termination of long-term contracts of sale of capacity and electricity (so-called “LTC compensations”).
The Court of Appeal verdict changed the verdict of the CCCP of November 12, 2012 in such way that it settled the annual adjustment at PLN (+) 31.5 million. The company requested PLN (+) 33.5 million and the ERO President in its decision, which was appealed by ZEDO, determined the annual adjustment for ZEDO at PLN (-) 8.9 million.
The judgement of the Court of Appeal is final and binding – in connection with partial acknowledgement of the ERO President appeal, both parties are entitled to file a cassation appeal with the Supreme Court.
The claim value in the ZEDO case, calculated as a difference between the amount of annual adjustment calculated by the company and the amount settled by the ERO President in decisions, amounted to approximately PLN 42.4 million. The total claim value of disputes concerning LTC compensations for 2008 due to generators from the PGE Capital Group amounts to PLN 434.7 million. Generators from the PGE Capital Group are in similar disputes with the ERO President regarding stranded cost compensations for 2009 and 2010. These cases are at various stages of legal proceedings.
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).
The Court of Appeal verdict changed the verdict of the CCCP of November 12, 2012 in such way that it settled the annual adjustment at PLN (+) 31.5 million. The company requested PLN (+) 33.5 million and the ERO President in its decision, which was appealed by ZEDO, determined the annual adjustment for ZEDO at PLN (-) 8.9 million.
The judgement of the Court of Appeal is final and binding – in connection with partial acknowledgement of the ERO President appeal, both parties are entitled to file a cassation appeal with the Supreme Court.
The claim value in the ZEDO case, calculated as a difference between the amount of annual adjustment calculated by the company and the amount settled by the ERO President in decisions, amounted to approximately PLN 42.4 million. The total claim value of disputes concerning LTC compensations for 2008 due to generators from the PGE Capital Group amounts to PLN 434.7 million. Generators from the PGE Capital Group are in similar disputes with the ERO President regarding stranded cost compensations for 2009 and 2010. These cases are at various stages of legal proceedings.
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).
Signatures of persons representing the company
| Date | Name | Position and function |
|---|---|---|
| 2013-12-12 15:15:20 | Piotr Szymanek | p.o. Prezesa Zarządu |
| 2013-12-12 15:15:20 | Jacek Drozd | Vice-President of the Management Board |