The Group companies create provisions for all claims filed by owners of properties on which distribution networks and heat installations are located. As at 31 December 2020, this provision amounted to PLN 47 090 thousand and was related to the segments:
- Generation – PLN 5,202 thousand;
- Distribution – PLN 34,652 thousand;
- Renewable energy sources – PLN 7,236 thousand.
The decrease in provisions is mainly associated with the reclassification of provisions of the subsidiary TAURON Ciepło Sp. o.o. to liabilities related to assets classified as held for sale.
In 2012, the third party lodged a claim against TAURON Ciepło S.A. (currently TAURON Ciepło Sp. z o.o.) related to clarification of the legal status of the transmission equipment located on its property. The company has questioned both the legitimacy of the claims and of the grounds for offsetting their amounts against the current liabilities to the company arising from heat supplies. Consequently, the company initiated legal proceedings to assert its current claims against the debtor. The amount of the potential claims of the aforementioned entity in respect of clarification of the legal status of the company transmission equipment will be reviewed in the course of the proceedings. With regard to the pending dispute, in light of the adopted accounting policy, a provision has been recognised for the estimated cost of the above claim. Bearing in mind the pending litigation, having regard to the provisions of IAS 37.92, the Group does not disclose all information regarding the above issue as required by IAS 37 Provisions, Contingent Liabilities and Contingent Assets. Due to the classification of the subsidiary, TAURON Ciepło Sp. z o.o. as a disposal group at the balance sheet date, the above provision was presented in the statement of financial position as liabilities related to assets classified as held for sale.