15. CO2 emission allowances for captive use
| SIGNIFICANT ACCOUNTING PRINCIPLES |
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CO2 emission allowances for captive use The PGE Capital Group emits carbon dioxide into the atmosphere as part of its operations. The demand for carbon dioxide emission allowances is partly covered by allowances received free of charge, and the remaining part must be obtained by the PGE Capital Group on the market. In order to meet the demand of the PGE Capital Group’s generating units, external transactions for purchase of greenhouse gas emission allowances are concluded. A separate item of the statement of financial position presents CO2 emission allowances for captive use of generating units. Emission allowances received free of charge are presented in the statement of financial position at par value, i.e. zero. Purchased emission allowances are recognised at purchase price. The consumption of CO2 emission allowances for captive use is measured by way of detailed identification. As the PGE Capital Group enters into transactions concerning purchase of CO2 emission allowances at the time of contracting sales, each purchase is allocated to a relevant basket related to sales contracted for a given year. The value of allowances allocated to the basket relating to a given reporting period is reflected in the value of the provision for CO2 emission costs of that period. Forward transactions related to hedging the purchase of CO2 allowances for redemption purposes benefit from the captive-use exemption and are not recognised in the statement of financial position. |
| EUA | As at 31 December 2023 | As at 31 December 2022 | ||
| Long-term | Short-term | Long-term | Short-term | |
| Quantity (Mg million) | 0 | 26 | 0 | 20 |
| Value (PLN million) | 20 | 10,517 | 114 | 4,754 |
| EUA | Quantity (Mg million) | Value (PLN million) |
| AS AT 1 JANUARY 2022 | 43 | 4,903 |
| Purchase/Sale | 47 | 11,525 |
| Granted free of charge | 1 | – |
| Redemption | (71) | (11,560) |
| AS AT 31 DECEMBER 2022 | 20 | 4,868 |
| Purchase/Sale | 81 | 28,491 |
| Granted free of charge | 1 | – |
| Redemption | (76) | (22,822) |
| AS AT 31 DECEMBER 2023 | 26 | 10,537 |