Current report No.: 20/2009
Current report No.: 20/2009
Date prepared: 5 March 2009
Short name of issuer: ENEA S.A.
Subject: The total value of agreements concluded with a subsidiary exceeding the threshold of 10 per cent of the equity of ENEA S.A.
Legal basis: Article 56 par. 1 pt. 2 of the Act on Public Offerings - current and periodic information
Content of the report:
Acting pursuant to Clause 5 par. 1.3 read together with Clause 2 par. 2 of the Regulation of the Minister of Finance on current and periodic information published by issuers of securities of 19 October 2005 (the "Regulation"), the Management Board of ENEA S.A. (the "Issuer") announces that, as a result of the conclusion of a master agreement for the sale of electrical energy on 4 March 2009 with a subsidiary - Elektrownia Kozienice S.A. (the "Company") - the total value of the agreements concluded by the Issuer with the Company in the period from the day of starting to carry out reporting obligations, i.e. 12 November 2008, until the day on which this report is sent, amounted to about PLN 988,000,000. Among those agreements, the contract with the greatest value is the above-mentioned master agreement for the sale of electrical energy (the "Agreement"). Under the Agreement, the quantity and unit prices of energy will be agreed between the parties to the Agreement on the basis of transaction understandings made in individual trading periods. The Agreement was concluded for an indefinite term. The estimated net value of the Agreement in financial year 2009 is PLN 190,000,000. The approximate value of the Agreement in a five-year period, calculated on the basis of the sales estimate for 2009, is PLN 950,000,000. However, the Issuer draws attention to the fact that the value of the Agreement in the five-year period could deviate considerably from this amount over such a long period, on account of energy price fluctuations. The Agreement does not directly indicate the amount of the contractual penalties connected with breaching the conditions of the Agreement, but the amount of those penalties could exceed at least one of the values indicated in Clause 9 par. 5 of the Regulation. The contractual penalties will be calculated on the basis of the difference between the quantity of electrical energy agreed in transaction understandings for individual hours of a specific 24-hour day and the quantity of electrical energy accepted for realisation by the transmission system operator. The amount of the penalty will on each occasion be determined on, among other things, the basis of the average weighted price of energy for a given hour on a given day, arising from signed transaction understandings, the number of hours for which the transmission system operator accepted another quantity of energy for realisation than that specified in transaction understandings, and the settlement price of a purchase or sale on the balancing market. Subject to contractual penalties, the parties' liability for non-performance or improper performance of the Agreement is limited to direct loss, excluding lost benefits and excluding the injured party's right to pursue recourse claims for loss caused to customers.
The total amount of agreements was regarded as significant because their estimated value exceeds 10 per cent of the Issuer's equity.