7.3 Other operating income and costs


Other operating income and costs

Other operating income and costs are recognised in the financial statements in accordance with the prudence principle and commensurability principle.

(in PLNm) Year ended
December 31, 2022
Year ended
December 31, 2021
Effect of change in rehabilitation provision 1.721 1.463
Penalties, fines and compensations received 599 69
(Creation)/reversal of impairment losses on receivables (548) (83)
Reversal/(recognition) of other provisions 162 (352)
Donations granted (75) (18)
Surpluses, asset disclosures/accounting for inventory shortfalls 75 24
Grants received 32 32
Property, plant and equipment/intangible assets and other infrastructure received free-of-charge 21 17
Gain/(loss) on sale of property, plant and equipment / intangible assets 18 41
Valuation and exercise of derivatives, including: (22) 2.896
– CO2 33 2.894
– Coal (55) 2
Other (31) (32)

The increase in Fines, damages is due to the calculation by subsidiary PGE GiEK S.A. of a contractual penalty in the amount of PLN 562 million to the consortium of Mitsubishi Power Europe Gmbh, TECNICAS REUNIDAS S.A and BUDIMEX S.A for failure to meet the availability rate of the Turów Power Plant unit in the first year of the guarantee period. The contractual penalty is covered by an impairment loss of the same amount. In July 2022, PGE GiEK S.A. submitted a demand for payment to the consortium, to which it received a negative response. In October 2022, the consortium requested mediation, to which it received a response that the possibility of mediation would only be possible once the block had been brought into compliance with the provisions of the Contract.

The release of other provisions relates to provisions for litigation with ENESTA’s counterparties, as described in note 1.2 of these financial statements.

The issue of the measurement of a land rehabilitation provision is described in note 21.1 to these financial statements.

The item Donations granted mainly includes a donation given by PGE Group to the Liberec Region in the Czech Republic, amounting to EUR 10 million.

Search results