Information on the necessity to create a provision in connection with the approval by the President of ERO of the tariff for electricity for customers of the G tariff groups for 2024
Belongs to:
- Current reports
Current Report No. 35/2023
Date: 19 December 2023
Subject: Information on the necessity to create a provision in connection with the approval by the President of ERO of the tariff for electricity for customers of the G tariff groups for 2024
Legal basis: Article 17 (1) of MAR - inside information
Management Board of Energa SA ("Issuer") informs that on 19 December 2023 it received the information from the subsidiary Energa Obrót SA ("Company") on the necessity to create a provision for the electricity sale agreements for the G tariff groups for 2024.
On 15 December 2023 the President of the Energy Regulatory Office approved the electricity sales price for consumers in the G tariff groups for 2024 for the Company at an average level of PLN 739.11 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) the Company identified the necessity to create a provision for onerous contracts in the amount of PLN 213.9 million, which will translate directly into a reduction by the same amount in the consolidated EBITDA result (operating profit before amortization and impairment of non-financial non-current assets) of the Issuer's Capital Group.
The Issuer stipulates that the amount of the provision will be audited by the auditor and may be subject to change, and its final amount will be included in the consolidated financial statements of the Energa Group for 2023.