7.3 Other operating income and costs
ACCOUNTING POLICIES
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 |
|---|---|---|
| NET OTHER OPERATING INCOME/(COSTS) | ||
| 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) |
| TOTAL NET OTHER OPERATING INCOME/(COSTS) | 1.952 | 4.057 |
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.