Current reports
Current report no. 38/2022
Information on the impact of new legal regulations on the company's financial situation
Legal basis:
Art. 17 ust. 1 MAR – informacje poufne
Contents of the report:
The Management Board of ZE PAK S.A. ("Company"), informs about the result of preliminary analyzes made in connection with the regulations contained in the ordinance of the Council of Ministers published on November 9, 2022 on the method of calculating the price limit ("Ordinance"). The Ordinance defines the method of calculating the price limit for electricity producers, broken down by electricity generation technologies, as defined in Art. 21 sec. 1 of the Act of October 27, 2022 on emergency measures to reduce electricity prices and support for certain consumers in 2023.
The Company conducted analyses of the regulations contained in the Ordinance and the effects of the Ordinance's entry into force from the date of its publication, in particular with regard to the costs incurred by the Company and the impact of the maximum energy sales price limits set out in the Ordinance on the profitability of the Company's generation activities in 2023.
The Company's preliminary analysis shows that during the term of the Ordinance, the regulations contained therein will not allow the Company to obtain revenues from the sale of produced energy, covering the entire cost of generating this energy. Due to the fact that this information may be important for investors, the Company decided to immediately publish the results of the preliminary analysis in the form of a current report.
The Management Board of the Company, in particular, would like to draw attention to the provisions contained in §2. point 4) of the Ordinance, according to which the cost of fuel used, including the cost of transport and storage that may be used to calculate the limit of the sale price of energy by the Company, has been limited to the level of PLN 7.8/GJ.
The unit cost of lignite purchase by the Company expressed in PLN/GJ, both in 2021 and 2022, exceeded the level set in the Ordinance. The company assumes that due to the closing of successive exploited open pits, and thus the lower projected volume of coal supplies, the unit cost of lignite purchase in 2023 will increase compared to the level resulting from the planned execution of costs in 2022.
Currently, the Company is conducting work related to the preparation of the budget for 2023, a more accurate estimation of the impact of the Ordinance on the profitability of generation activities and on the Company's financial situation will be made by the end of the year and will be provided in the form of a separate current report immediately after such an estimate is made.
Signatures of persons representing the Company:
Piotr Woźny – President of the Management Board
Maciej Nietopiel – Vice President of the Management Board
Andrzej Janiszowski – Vice President of the Management Board