21.5 Settlements with prosumers

In 2020, there was a significant increase in prosumer installations, mainly as a result of the „My Electricity” support programme. According to the Energy Market Agency, the installed PV capacity in Poland increased by 159% to the level of 3.96 GW in 2020 versus 1.53 GW at the end of 2019. The Renewable Energy Sources Act of 20 February 2015 introduced a billing system for prosumers and energy cooperatives that generates losses for the obligated seller (i.e. PGE Obrót S.A.). Such losses rise in proportion to the percentage of electricity supplied to the grid by prosumers or energy cooperatives that can compensate with their own consumption.

Thus, for the energy taken from the grid, the prosumer does not bear the variable costs of distribution services. On the other hand, the trading company, which is only an intermediary in the sale of distribution services, has to pay the Distribution Grid Operator the full fee for electricity consumed by prosumers. Although they do not provide distribution services, the companies within the Trade segment have to bear the related costs due to the fact that they are parties to the comprehensive contract with the consumer.

The growing losses on the operations of PGE Obrót related to the fees for distribution services lead to considerations on the possible establishment of provisions for contracts generating such liabilities. However, due to difficulties in estimating the number of new prosumer installations, their capacity and energy consumption, as well as the period of their operation and announced new regulations, the calculation of reliable amounts may be burdened with a considerable error. Moreover, taking into account the fact that losses on agreements with prosumers result from systemic regulations, in the Group’s opinion, these agreements should be analysed jointly with agreements whose performance is the obligation of PGE Obrót S.A. as a seller.

Accordingly, as at the balance sheet date, the conditions for establishing provisions for contracts giving rise to liabilities within the meaning of IAS 37 are not met.

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