Information on the preliminary financial effects of extraordinary regulations of the energy market and the tariff approved by the President of the Energy Regulatory Office for the G tariff group
Belongs to:
- Current reports
Current Report No. 48/2022
Date: 19 December 2022
Subject: Information on the preliminary financial effects of extraordinary regulations of the energy market and the tariff approved by the President of the Energy Regulatory Office for the G tariff group
Legal basis: Article 17 (1) of MAR - inside information
The Management Board of Energa SA ("Issuer") informs that on 19 December 2022 it received the information from the subsidiary Energa Obrót SA ("Company") about preliminary financial effects of the Act of 7 October 2022 on specific solutions for the protection of electricity customers in 2023 in connection with the situation in the electricity market and the Act of 27 October 2022 on urgent measures to cap electricity prices and support certain consumers in 2023 (together "Extraordinary Energy Market Regulations") as well as approved on 17 December 2022 by the President of the Energy Regulatory Office of electricity tariff for the G tariff group (households) for the period from 1 January 2023 to 31 December 2023 (_quot;Tariff_quot;), on the basis of which compensations resulting from the above mentioned Acts will be set.
The Company evaluated the impact of the Extraordinary Energy Market Regulations and the amount of the approved Tariff on its operations and identified a potential loss due to the performance of contracts with customers from the G tariff groups in 2023, which as at 19 December 2022 is estimated at approx. PLN 930 million and may result in the creation of a provision in the financial statements for 2022, which will translate directly into a decrease by this amount in the consolidated EBITDA (operating profit before amortization and impairment of non-financial non-current assets) of the Issuer's Capital Group. From the perspective of 2022, the above event is of a non-cash nature.
The indicated estimates are subject to risk, resulting primarily from regulatory uncertainty and possible changes in the legal status (including the interpretation and practice of applying the Extraordinary Energy Market Regulations). In addition, the presented financial effects will be subject to audit by an auditor, and therefore may change. The final amount of the created provision will be presented in the consolidated financial statements of the Energa Group for 2022.