Decision regarding the amount of the provision created in connection with cash penalties imposed on a subsidiary by the President of the ERO described in the current report No. 34/2023
Belongs to:
- Current reports
Current Report No. 37/2023
Date: 22 December 2023
Subject: Decision regarding the amount of the provision created in connection with cash penalties imposed on a subsidiary by the President of the ERO described in the current report No. 34/2023
Legal basis: Article 17 (1) of MAR - inside information
With reference to the current report No. 34/2023 of 18 December 2023 ("CR 34/2023") the Management Board of Energa SA ("Issuer") informs that on 22 December 2023 it received the information from the subsidiary Energa Obrót SA ("Company") about a decision on the amount of the provision created in connection with the cash penalties imposed on the Company by the President of the Energy Regulatory Office (_quot;President of ERO_quot;).
After conducting the internal analyses, the results of which were confirmed by the auditor, the Company's Management Board decided to create a provision in the total amount of PLN 104,9 million, 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 for 2023 by the same amount.
The difference between the maximum amount of the provision presented in the CR 34/2023 and the above-mentioned amount results from the lower provision created for the penalty presented in point b) of the above-mentioned report. Pursuant to Art. 52 section 1 of the Act of 20 February 2015 on renewable energy sources, the Company were able to fulfill the obligation for 2018 specified in this regulation in two ways: by (i) submitting certificates of origin or certificates of origin of agricultural biogas to the President of ERO for redemption or (ii) paying a substitute fee. The Company used the second option and paid the substitute fee of PLN 149.5 million to the National Fund for Environmental Protection and Water Management. Due to the fact that, in the light of the decision of the President of the ERO, the implementation of the above-mentioned obligation in the indicated manner was not possible, this fee should be returned to the Company. As a result of the above, the amount of the provision was reduced by the above-mentioned substitute fee.
At the same time, the Company confirms that it will appeal against the decisions regarding the cash penalties of the President of ERO presented in the CR 34/2023.