Current Report No.: 76/2022
Current Report No.: 76/2022
Date of Preparation: 20 December 2022
Issuer's Abbreviated Name: ENEA S.A.
Subject: Signing of arrangements on the settlement of disputes related to property rights purchase agreements
Legal Basis: Article 17(1) of the Market Abuse Regulation - inside information
Body of the report:
With reference to Current Report Nos. 32/2016 and 53/2022 pertaining to the termination of purchase agreements for property rights resulting from certificates of origin for electricity generated from renewable sources (green certificates) and information provided in this respect in periodic reports, the Management Board of ENEA S.A. ("Company", "Issuer") hereby reports that on 20 December 2022 the Issuer signed arrangements with PGE Group companies that are parties to the said property rights purchase agreements regarding an amicable settlement of disputes arising from these agreements ("Arrangements").
Under the terms of the Arrangements, the Issuer undertook to enter into settlements based on which all pending litigation will be terminated in exchange for the payment of the total amount of approx. PLN 262.8 million to PGE Energia Odnawialna S.A. ("PGE EO") and PGE Energia Ciepła S.A. (jointly: "PGE Companies"). The payment will be made in installments, as agreed by the parties, by the end of April 2023.
The amount of the settlement to be paid to the PGE Companies under the Arrangements is included, in particular, in the value of provisions for other reported claims, which the Issuer disclosed in its interim report for Q3 2022.
The payment of the said amount will exhaust all claims of the PGE Companies against ENEA S.A. arising from the property rights purchase agreements.
With a view to terminating all litigation arising from the said property rights purchase agreements, the parties undertook to enter into settlements based on the terms set forth in the Arrangements. In another current report, the Issuer intends only to disclose information about the occurrence, if any, of circumstances preventing the execution of such settlements with the PGE Companies.
At the same time, please be advised that, in compliance with the arrangement executed with PGE EO, one of its key provisions is the obligation for the parties to execute a property rights purchase transaction whereby the Issuer will buy certificates of origin of electricity for the total price of approx. PLN 24.6 million. The transaction is subject to execution in the Register of Certificates of Origin kept by the Polish Power Exchange (Towarowa Giełda Energii S.A.) through the completion of an unsettled OTC deal. The Issuer's payment of the price for the purchase of property rights to PGE EO within the time limit agreed upon by the parties, in accordance with the provisions of the arrangement, is a precondition for the execution of the litigation-ending settlements.