Decision to create a provision in the Sales Business Line in connection with the approval by the President of the Energy Regulatory Office of the tariff for electricity for customers of the G tariff groups for 2020
Belongs to:
- Current reports
Current Report No. 39/2019
Date: 31 December 2019
Subject: Decision to create a provision in the Sales Business Line in connection with the approval by the President of the Energy Regulatory Office of the tariff for electricity for customers of the G tariff groups for 2020
Legal basis: Article 17 (1) of MAR - inside information
Management Board of Energa SA ("Company") hereby informs that on 31 December 2019 it received the information about creation of a provision in the Sales Business Line for the electricity sale agreements for the G tariff groups for 2020.
On 30 December 2019 the President of the Energy Regulatory Office approved the electricity sales price for consumers in the G tariff groups for 2020 for Energa-Obrót SA (a wholly owned subsidiary of Energa SA) at an average level of PLN 289.37 per MWh.
Due to the fact that the aforementioned approved price does not fully cover the legitimate costs of electricity sold in the G tariff groups, in accordance with IAS 37 (Provisions, Contingent Liabilities and Contingent Assets) in the Sales Business Line, a provision for onerous contracts in the amount of PLN 125 million has been created.
The Company stipulates that the amount of the provision will be audited by a certified auditor and may be subject to change, and its final amount will be included in the financial statements of the Energa Capital Group for 2019.