33.4 PGE Paliwa sp. z o.o.’s implementation of decisions relating to the purchase and sale of coal
On 13 July and 8 August 2022, PGE Paliwa sp. z o.o. received decisions from the Prime Minister instructing the company to purchase at least 3 million tonnes of thermal coal with parameters close to the quality parameters used by households and to import it into the country by the end of April 2023. The company is in the process of implementing the decision.
The implementation of the decision will result in a temporary increase in PGE Group’s cash requirements and a potential temporary increase in debt in connection with the settlement of coal purchase and resale transactions. In the current conditions, the company does not expect the implemented actions to have a material impact on PGE Group’s consolidated financial result.
PGE Paliwa sp. z o.o. is designated in the Regulation of the Minister of State Assets of November 2, 2022 on the list of entities authorised to conduct sales of solid fuel to municipalities, as one of the six marketing entities authorised to conduct sales of solid fuel to municipalities for preferential purchase. In accordance with the provisions of the Act of October 27, 2022 on preferential purchase of solid fuel for households, the selling price of solid fuel may not be higher than PLN 1,500 gross. At the same time, the selling company is entitled to compensation equal to the product of the quantity of solid fuel and the difference between the justified average unit cost of solid fuel over that period and the average net selling price of solid fuel over that period, plus value added tax.
PGE Paliwa has estimated and recognised an estimate of revenue from compensation for deliveries made in 2022 of PLN 131 million. The request for compensation for this period in accordance with the Law of October 27, 2022 on preferential purchase of solid fuel for households should be submitted by the Company by February 25, 2023. The company submitted the application on February 23, 2023. Applications for subsequent periods will be submitted for the period of a calendar month, within 60 days of the last day of the month to which the application relates.
The company is in the process of implementing these sales.