Table 1
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| Operating segment | Description | As at 31 December 2020 | As at 31 December 2019 | ||
|---|---|---|---|---|---|
| Provision for counterparty claims | |||||
| Generation | The provision relates to claims submitted by contractors in connection with the construction of the 910 MW Unit in Jaworzno. A provision of PLN 93,539 thousand was created by the company in the Generation segment for additional increased costs related to ongoing contracts in the year ended 31 December 2019. The change in the provision, in the year ended 31 December 2020, mainly relates to the creation of a provision of PLN 56,590 thousand in relation to new claims and the partial reversal of the provision of PLN 128,477 thousand in connection with the updating and settlement of estimates during the year; the values were charged to capital expenditure. |
11,895 | 93,539 | ||
| Provision for the increase in remuneration for transmission easements | |||||
| Distribution | The provision relates to the risk of increased periodic charges for transmission easements for energy infrastructure located in the territory of forest districts subordinated to the Regional Directorate of State Forests in Wrocław in connection with a change in the nature of land from forest land to land associated with business activities. In the year ended 31 December 2020, the company of the Distribution segment used the provision in the amount of PLN 2,566 thousand and partially released the provision of PLN 5,704 thousand. |
59,053 | 67,323 | ||
| Provision for a fine to the Energy Regulatory Office (“ERO“) | |||||
| Distribution | The provision relates to the risk of violation of the Energy Law of 10 April 1997 by misleading the ERO President with respect to the information provided at its request. |
6,000 | 6,000 | ||
| Provision for real estate tax | |||||
| Distribution | Provision for the economic risk in the scope of real estate tax relating to power grid assets. |
39,356 | 39,356 | ||
| Renewable Energy Source |
The provision relates to the risk of the effects of the Constitutional Court judgement of 22 July 2020 on imposing the real estate tax on wind power plants in 2018. |
16,776 | – | ||
| Provision for value added tax | |||||
| Sales | In the current reporting period and in the comparable period, the Company updated provisions against tax risks in connection with the inspection proceedings initiated in 2014 and 2016 by the Director of the Tax Inspection Office in Warsaw (“UKS Director”) in relation to value added tax. The duration of these proceedings was several times extended by the UKS Director and by the Head of Mazowiecki Customs and Tax Control Office. In the year ended 31 December 2020 and in the comparative period, the Company increased the provision accordingly in connection with interest accrual. On 17 September 2020, the Head of the Mazowiecki Customs and Tax Control Office in Warsaw issued a decision concluding the inspection proceedings initiated in 2014, which was received on 7 October 2020. In connection with the foregoing, the Company has updated the provision accordingly: − in connection with the assessment of the liability, the provision of PLN 54,734 thousand was used; − the provision of PLN 24,497 thousand was reversed in the scope of interest accrued. Payment of the liability in the total amount of PLN 54,734 thousand (of which PLN 51,819 thousand was the principal amount due and PLN 2,915 thousand was the interest due until the date of initiation of the proceedings) took place in October 2020. At the same time, on 20 October 2020, a complaint was lodged by the Company against the decision of the Head of the Mazowiecki Customs and Tax Control Office in Warsaw dated 17 September 2020. The complaint, accompanied by the case file was forwarded to the second instance authority, i.e. the Director of the Revenue Administration Regional Office in Katowice. On 18 December 2020 the Director of the Revenue Administration Regional Office in Katowice issued a notice setting a new deadline for the conclusion of the appeal proceedings. The new deadline was scheduled on 15 April 2021. With regard to the inspection proceedings initiated in 2016, in November 2020 the Company received the result of the inspection, i.e. the document concluding these inspection proceedings, in which no irregularities were found with regard to the subject matter of the inspection. The Company has not created any provisions for the consequences of these proceedings. With regard to another inspection proceedings initiated in 2016, after the balance sheet date, on 15 January 2021, the Head of the Mazowiecki Customs and Tax Control Office in Warsaw issued a decision concluding the inspection proceedings. On 3 February 2021, the Company paid the amount of the liability covered by the decision including interest in the total amount of PLN 798 thousand. |
798 | 77,094 | ||