Current reports
Current report no. 42/2022
Updating information on the impact of new legal regulations on the company's financial situation
Legal basis:
Art. 17 sec. 1 MAR – inside information
Contents of the report:
With reference to the current report no. 38/2022, the Management Board of ZE PAK SA („Company”) provides information on the impact of the change of the Council of Ministers’ ordinance on the method of calculating the price limit of electricity producers ("Ordinance") 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 amendment to the Ordinance covered, among others, cost components used to calculate the energy sales price limit for producers using lignite as fuel. The original version of the Ordinance made it possible to use the cost of fuel used to calculate the energy sales price limit, including the cost of transport and storage, in the maximum amount of PLN 7.8/GJ. Amending the Ordinance in this respect allows the producer of electricity from lignite, who purchases fuel from another entity, to include as a unit cost of fuel used, the full cost resulting from the electricity producer's books of accounts.
The introduced amendment to the Ordinance will allow the Company to take into account the actual costs of lignite purchase in the calculation of the electricity sales price limit.
Analyses of the impact of the new legal regulations on the portfolio of market positions held indicate that the profitability of the Company's operations during the period in which the Ordinance is in force should be positive. At the same time, the Company does not expect positive profitability on the sales of electricity alone, it is mainly revenues from the provision of power market services and from the termination of long-term contracts (LTC) that will have a decisive impact on the level of profitability.
The Company stipulates that this current report should not be treated as a forecast of financial results for future periods. The estimated profitability of operations during the period of validity of the Ordinance was calculated on the basis of a specific interpretation of the provisions of the Ordinance with a number of assumptions as to the planned operations. It should be taken into account that the actual financial results will depend on a number of factors of a regulatory, market, operational and random nature, depending to a certain extent on the Company, as well as factors beyond the control of the Company. It should also be taken into account that the final interpretation of the individual components of the formula used to calculate the energy sales price limit may differ from the interpretation adopted by the Company.
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