The European Commission has considered long-term contracts for sale of power and electricity (LTC) as disallowed public aid, therefore the Polish Parliament passed an act intended to eliminate those contracts. In accordance with the Act on compensations for costs incurred by producers in connection with early termination of long-term contracts for sale of power and electricity dated 29 June 2007 ("LTC Termination Act") the Company was eligible to receive compensation for stranded costs resulting from the early termination of long-term contracts since 1 April 2008.
The year 2014 was the last year of ENEA Wytwarzanie Sp. z o.o. participation in the compensation for stranded costs programme connected with early termination of long-term contracts for sale of power and electricity.
On 27 August 2015 the President of the Energy Regulatory Office issued a decision on the amount of final adjustment of stranded costs in the amount of (+) PLN 315 524 thousand. Based on the decision, Zarządca Rozliczeń S.A. is obliged to pay the amount set in the decision to the Company till 31 December 2015. On 30 December 2015 the Company received from ZR the payment of final adjustment in accordance with the decision. The mentioned decision set the total amount of the public aid at the nominal value of PLN 551 619 thousand. The Company did not appeal against this decision and decided to withdraw legal disputes related to the annual adjustments.
Till the end of 2014 the Company recognized revenues from compensations in the amount of PLN 258 472 thousand. In 2015 the Company recognized additional revenue from compensations in the amount of PLN 293 147 thousand. The amounts above reflect the total amount of the compensation due to Company.