Current reportswersja do druku

Title of the report: Initiation by the ENERGA Group of court and arbitration proceedings concerning framework agreements on sales of property rights arising from the certificates of origin.

September 11, 2017
PL
Title: Title of the report: Initiation by the ENERGA Group of court and arbitration proceedings concerning framework agreements on sales of property rights arising from the certificates of origin.
Date: 2017.11.09

Title of the report: Initiation by the ENERGA Group of court and arbitration proceedings concerning framework agreements on sales of property rights arising from the certificates of origin.

Date:11.09.2017

Number of the report: 37/2017

Legal grounds: Article 17 Section 1 of the Market Abuse Regulation - confidential information

The Management Board of ENERGA SA ("Issuer") hereby reports that the Management Board of ENERGA-Obrót SA ("Subsidiary Company") on 11.09.2017 adopted a resolution on initiation of court and arbitration proceedings, which subject-matter is to be determination of the non-existence of the legal relationships that were to be arisen as a result of concluding by the Subsidiary Company with electricity producers which use renewable energy sources, twenty-two framework agreements on sale of property rights arising from the certificates of origin ("Agreements").

The Management Board of the Subsidiary Company, the sole shareholder of which is the Issuer, has made a decision to cease to perform the Agreements and to initiate court and arbitration proceedings (bring actions) against contractors, i.e. entities producing electricity and selling the property rights to the Subsidiary Company, and banks - transferees.

The subject-matter of the abovementioned proceedings will be the determination of the non-existence of the legal relationships that were to be created as a result of concluding the Agreements. The Management Board of the Subsidiary Company took a position that the Agreements are void given the circumstance that they obliged to conclude agreements on sales of property rights without applying the procurement procedure determined in the Act of 29 January 2004 - Public Procurement Law (consolidated text: Journal of Laws of 2017 item 1579 with further amendments), which results in a high probability of the Agreements being void. In the opinion of the Management Board of the Subsidiary Company, cessation of performance of the Agreements is a consequence of the Agreements being void as obliging to act in breach of law (procurement procedure).

According to the current state of knowledge, the Issuer estimates the positive impact of cessation to perform the Agreements to be about 110 million PLN in 2018. At the same time, as a result of entry into force of the Act of 20 July 2017 on amendments to the Renewable Energy Sources Act (Journal of Laws of 2017, item 1593) and in connection with taking up the actions described in this current report, the positive impact on the Issuer during the remaining period of validity of the Agreements is estimated to be about 2.1 billion PLN. The above calculations are based on the assumption of the volume of retail sales to be at the level of year 2016 (19 TWh) and the level of the unit substitution fee to be 43 PLN/MWh during the whole period of validity of the Agreements.

The above calculations do not constitute a forecast of the ENERGA Group's future performance.