Information on the decisions of the President of the Energy Regulatory Office regarding imposing cash penalties on a subsidiary
Belongs to:
- Current reports
Current Report No. 34/2023
Date: 18 December 2023
Subject: Information on the decisions of the President of the Energy Regulatory Office regarding imposing cash penalties on a subsidiary
Legal basis: Article 17 (1) of MAR - inside information
The Management Board of Energa SA ("Issuer") informs that on 18 December 2022 it received the information from the subsidiary Energa Obrót SA ("Company") about the decisions issued by the President of the Energy Regulatory Office (_quot;President of ERO_quot;) imposing the following cash penalties on the Company:
a) PLN 60.7 million - due to the Company's failure to comply with the obligations referred to in Art. 6 section 1 and 2 of the Act of 28 December 2018 amending the Excise Duty Act and certain other acts, including the obligation to adjust prices and rates for electricity within the period specified in this Act,
b) PLN 193.7 million - in connection with the Company's failure to meet the obligation for 2018 specified in Art. 52 section 1 of the Act of 20 February 2015 on renewable energy sources, i.e. obtaining and submitting for redemption to the President of ERO certificates of origin or certificates of origin of agricultural biogas issued for electricity or agricultural biogas, respectively, produced in renewable energy source installations located in the territory of Poland or located in the exclusive economic zone by 30 June 2019.
Imposition of the above-mentioned cash penalties result in the necessity to create a provision in the financial statements for 2023, which will translate directly into a decrease in the consolidated EBITDA result (operating profit before amortization and impairment of non-financial non-current assets) of the Issuer's Capital Group in the maximum amount of PLN 254.4 million. The size of the created provision will be subject to internal analysis of the Company and verification by the auditor, and its final amount will be presented in the consolidated financial statements of the Energa Group for 2023.
At the same time, the Issuer informs that the above-mentioned decisions of the President of ERO are not final or legally binding, and the Company will appeal against them.