The Management Board of Polenergia S.A. (‘Issuer’) hereby notifies that on 4th April 2019 the Issuer’s subsidiary, Elektrociepłownia Nowa Sarzyna Sp. z o.o. (‘ENS’), concluded an energy sale agreement (‘Electricity Agreement’) with a related company, Polenergia Obrót S.A. (‘POLO’) for one year from 1.01.2020 (i.e. upon the expiry of a 12-year energy sale agreement with an independent entity) to 31.12.2020. Under the Electricity Agreement, ENS will supply energy to POLO in accordance with the agreed volume and profile and at a fixed market price throughout the delivery period, and its estimated value is approx. PLN 178 million. The Electricity Agreement is based on an EFET framework agreement and it contains market provisions applicable to such agreements, including provisions regarding its termination and contractual penalties.
Moreover, on 4th April 2019 ENS, based on a framework agreement concluded with PGNiG Supply & Trading GmbH Sp. z o.o. Oddział w Polsce (‘PST’), concluded a gaseous fuel supply agreement (‘Gas Agreement’) for one year (i.e. upon the expiry of a 20-year fuel supply agreement) from 1.01.2020 6:00 to 1.01.2021 6:00. Under the Gas Agreement, ENS will purchase high-methane natural gas from PST in accordance with the agreed volume and at a fixed market price throughout the delivery period. The Gas Agreement contains market provisions applicable to such agreements, including provisions regarding its termination and contractual penalties.
The Issuer considers the Electricity Agreement and Gas Agreement to be material due to the fact that providing stable generation and sale of energy from natural gas in ENS constitutes the basis for its further economically effective operation after the end of its participation in the stranded costs and gas costs compensation scheme.
Legal basis: Art. 17 (1) of the Regulation (EU) No. 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse and repealing Directive 2003/6/EC of the European Parliament and the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC (OJ L 173, 2014, p. 1, as amended)