Termination of the capacity contract entered into by Elektrownia Ostrołęka Sp. z o.o.
- Current reports
Current report No. 5/2022
Date: 31 January 2022
Subject: Termination of the capacity contract entered into by Elektrownia Ostrołęka Sp. z o.o.
Legal basis: Article 17 (1) of MAR - inside information
The Management Board of Energa SA ("Issuer") informs that on 31 January 2022 it received the information from Elektrownia Ostrołęka Sp. z o.o. ("Company") about the termination by the Company, as of the same day, of the contract to fulfil the capacity obligation contracted by the Company as a result of the outcome of the capacity market auction for 2023 ("Contract"), which was reported by the Issuer in a current report No. 53/2018 of 21 December 2018.
Under Article 47b(3) of the Capacity Market Act of 8 December 2017 ("Act"), a capacity contract is terminated upon identifying capacity contracts which meet the criteria laid down in the Act to the operator, Polskie Sieci Elektroenergetyczne S.A. ("PSE").
Today, the Company has identified to PSE two capacity contracts meeting the criteria laid down in the Act, entered into by CCGT Ostrołęka Sp. z o.o. and CCGT Grudziądz Sp. z o.o., as contracts referred to in Article 47b(3)(1) and (2) of the Act.
As a result of the identification of the above-mentioned capacity contracts, the financial security provided by the Company in the amount of PLN 36.6 million is released and contractual penalties, if any, are forgiven. At the same time the Issuer reports that as at the date of termination of the Contract no contractual penalties had been charged on its basis and the Issuer had not recognized any provisions for such potential penalties.
The termination of the Contract is the consequence of changing the power source from coal to gas in the Company's project to build and operate a new power plant in Ostrołęka.