PGE expects PLN 1.21 bln boost to 2017 results from stranded cost compensation

WSE-listed power utility PGE expects a PLN 1.21 billion positive impact on its 2017 revenues and EBITDA, after the energy market regulator URE set the final adjustment of the stranded costs at PLN 938 million, PGE said in a market filing. “As a result of the termination of long-term power and energy sales contracts, manufacturers who were previously parties to these contracts have been granted the right to compensation for the so-called stranded costs resulting from the expenditures incurred by the manufacturer until May 1, 2004 for the assets connected with the generation of electricity, not covered by revenues generated from the sale of generated electricity, power reserves and system services on the competitive market after premature termination of said contracts,” the company explained in a market filing. The payment will be made by the end of this year.