Growth impulse
We are one of the largest employers in Poland. We provide stable employment to more than 43 thousand people across around 200 locations throughout the country. Most of our personnel are residents of towns in the vicinity of our assets. Taxes that we pay to the municipalities in which we do business often account for a significant part of their local budgets.
Many activities for local communities originate at the initiative of PGE Group companies. PGE is a local patron of sports and culture. PGE Group companies engage in educational and charitable activities.
A large part of our subcontractors are local firms that, by working with us, have an opportunity to develop their business. Our investments constitute a very substantial element of economic development and their implementation helps to improve the quality of life and work for local communities.
Our Baltic Sea offshore energy investment that we are currently working on is an opportunity for many Polish businesses to spread their wings; many of them specialise in the manufacture of components for wind farms and devices accompanying such undertakings.
The Supplier Day organised for representatives of companies from Poland and abroad interested in joining the Baltica 2 project organised in October 2023 was attended by about 450 people.
The company has involved Polish entities in the preparations for the construction of the PGE Baltica operations and maintenance base in Ustka, demonstrating that domestic companies can successfully join the development of offshore wind energy in Poland.
Investments and activities stimulating regions
We are one of the largest domestic investors. Since the foundation of PGE Group 16 years ago, our capital expenditures have approached approximately PLN 100 billion.
These funds were spent on the construction of new generating capacities, eco-friendly modernisations of existing assets and expansion of power and district heating networks. This is a very large amount, which could have financed, for example, more than 2 000 km of highways in Poland.
In 2023, we invested PLN 10.1 billion. Our investments provide an impetus for the Polish economy – these are not just orders that mostly go to Polish businesses but also thousands of jobs at construction sites and subsequently in operating these new units. Thanks to the electricity that we supply and our investments in distribution grids, companies can develop their business and search for new opportunities. In places where we operate we are often the largest or one of the largest employers and our investments constitute additional support for the development of local markets.
~ PLN100 bn
capital expenditures since the foundation of PGE Group
PLN 10.1 bn
capital expenditures in 2023
PLN 18.2 bn
total tax impact on all levels in 2023
PLN 2.35 bn
Tax income by local governments in Poland as a result of our activities
~50 %
of all expenses incurred by the local government in Kleszczów municipality are financed with taxes paid by PGE Group
Our contribution to local budgets and state budget
PGE Group is one of the largest payers of taxes in Poland. At state and local level, our business in 2023 brought in approx. PLN 18.2 billion in tax (approx. PLN 7.6 billion in 2022).
This amount mainly includes: VAT, taxes and contributions on the remuneration of the Group’s employees, charge in respect of the contribution to the Price Difference Payment Fund, real estate tax, corporate income tax, excise tax and other taxes and fees.
Fiscal impact at different levels
PGE Group is a stable payer of taxes that support central and local budgets and contribute to the development of the whole country and individual regions.
The total tax transfers to the budgets by the PGE Group have increased over the years along with the development of the company.
In 2023, there was another increase in tax contributions to the budgets of municipalities, voivodeships and poviats, as well as social security contributions, which resulted mainly from an increase in personal income tax, property tax and social security contributions.
In case of taxes contributing to the state budget, there was a significant increase in VAT, which resulted directly from the VAT increase on electricity (from 5% to 23%) as well as the 2023 contribution to the Price Difference Payment Fund.
Fiscal impact by level in 2021- 2023 * (in PLN million)
| Year | 2021 | 2022 | 2023 |
|---|---|---|---|
| Municipal budgets | 1,324 | 1,487 | 1,654 |
| County budgets | 55 | 82 | 90 |
| Voivodship budgets | 376 | 620 | 606 |
| State Treasury | 5,437 | 3,897 | 13,887 |
| Social Security | 1,302 | 1,554 | 1,956 |
| Total | 8,495 | 7,640 | 18,193 |
Fiscal impact – local governments in the voivodships
As a result of our activities, local governments (municipality, county and voivodship budgets) received close to PLN 2.35 billion in 2023.
In the municipality of Kleszczów, which is where the largest lignite-fired power plant in Europe and lignite mine are located, approx. 50% of all expenses incurred by the local government are financed with taxes paid by PGE Group.
Over the last three years, there has been a visible increase in taxes paid to local budgets at the level of municipalities and voivodeships, which results mainly from higher payments for CIT and PIT income taxes and real estate taxes. Traditionally, the highest taxes go to regions where lignite mines are located, due to the scale of employment and taxes related to the operation of open-pit mines. However, in the abovementioned period, the development of the PGE Group is also particularly visible in the Eastern Region of Poland, where the registered office of PGE (Lublin) and two key companies of the Group are located: PGE Dystrybucja (Lublin) and PGE Obrót (Rzeszów) are located. Over the last three years, the amount of taxes supporting local development in this region increased by more than PLN 100 million and amounted to almost PLN 549 million in 2023. In line with the PGE Group’s strategy, which designates distribution and trading as key areas of activity, the role and importance of the Eastern Region for PGE will continue to increase.
Tax data (in PLN million)
Participation in EU ETS
Costs related to CO2 emissions under EU ETS reached approx. PLN 23.7 billion in 2023. EU ETS is a key element of the EU policy on combating climate change and a key tool for reducing greenhouse gas emissions. Proceeds from the sale of emission allowances do not solely go to state budgets but also finance climate protection and energy transition.
Transition of regions
PGE Group’s energy transition is being carried out in such a way that the changes taking place take into account and respect, in the process, the interests and needs of the local community, territorial administration, investors and business, the needs of the natural environment, as well as taking into account the creation of new jobs for the employees of today’s coal sector.
The PGE Group ensures that entrepreneurs and employees in the energy industry, as well as residents of coal regions, are part of the entire transformation process and actively participate in it.
For more information on the transformation of PGE’s mining regions, see the chapter Just transition