13. Compensation

In 2019, the Group recognised the consequences of entry into force of the Act amending the Excise Duty Act and certain other acts (the “Act”) and its implementing legislation in the form of the amount of compensation due to trading companies. The amended Act provided for two compensation formulas for trading companies in the form of:

• the amount of the price difference for the period from 1 January 2019 to 30 June 2019 – with regard to all customers (the “Price Difference Amount”);
• financial compensation for the period from 1 July 2019 to 31 December 2019 – with regard to final customers referred to in Article 5(1a), i.e. customers to whom the companies are obliged to apply the prices as of 30 June 2018 (“Financial Compensation”).

Due to the fact that the compensation recognised in 2019 was partly based on estimated data, in accordance with Article 9 of the Act, in 2020, TAURON Sprzedaż Sp. z o.o. and TAURON Sprzedaż GZE Sp. z o.o., companies submitted applications for adjustments to the Price Difference Amount and Financial Compensation for the full year 2019 to the Settlement Administrator S.A. (the “Administrator”). The applications were submitted within the period prescribed by the Act. The adjusted Price Difference Amount and the Financial Compensation are based on the actual volumes and prices involved in their calculation.

On 18 December 2020, the bank account of TAURON Sprzedaż GZE Sp. z o.o. was credited with the full amount due on account of adjustments of the Price Difference Amount and the Financial Compensation in the total amount of PLN 5,091 thousand. As at the date of approval of these consolidated financial statements for publication, however, no cash was received on account of adjustments of the Price Difference Amount and the Financial Compensation due to TAURON Sprzedaż Sp. z o.o. in the total amount of PLN 61,357 thousand.