39. Related-party transactions

Group companies execute transactions with the following related parties:

• Group companies – these transactions are eliminated at the consolidation stage;
• Transactions between the Group and members of the Group’s corporate authorities, which are divided into two categories:
  • resulting from being appointed as Supervisory Board members,
  • resulting from other civil-law contracts.
• transactions with State Treasury related parties.

As at 31 December 2021, liabilities related to management contracts and consultancy contracts towards Management Board members amount to PLN 207 thousand (PLN 480 thousand as at 31 December 2020). As at 31 December 2021, a provision for Management Board bonuses amounted to PLN 3 420 thousand (PLN 2 032 thousand as at 31 December 2020); these provisions are not included in the above table.

The following table contains transactions concerning loans from the Company Social Benefit Fund:

Other transactions resulting from civil-law contracts executed between the Parent and members of the Parent’s corporate authorities mainly concern the use of company cars by members of ENEA S.A.’s Management Board for private purposes.

Members of the Group’s governing bodies and their close relatives did not execute significant transactions having an impact on the Group’s results and financial situation.

The Group also executes commercial transactions with state and local administration units and entities owned by Poland’s State Treasury.

The subject of these transactions mainly is as follows:

• purchases of coal, electricity, property rights resulting from energy origin certificates as regards renewable energy and energy produced in cogeneration with heat, transmission and distribution services that the Group provides to the State Treasury’s subsidiaries,
• sale of electricity, distribution services, connection to the grid and other associated fees, as well as coal, that the Group provides for both state and local administration authorities (sale to end customers) and to the State Treasury’s subsidiaries (wholesale and retail sale – to end customers).

These transactions are executed on market terms, and these terms do not differ from the terms applied in transactions with other entities. The Group does not keep records that would make it possible to aggregate the amounts of all transactions executed with all state institutions and the State Treasury’s subsidiaries.

In addition, the Group identified financial transactions with State Treasury’s related parties, i.e. with banks serving as guarantors for bond issue programs. These entities include: PKO BP S.A., Pekao S.A. and Bank Gospodarstwa Krajowego. Detailed information on bond issue programs is presented in note 30.

Among State Treasury subsidiaries ENEA Group’s largest counterparty-customer is Polskie Sieci Elektroenergetyczne, with net sales in 2021 reaching PLN 1 340 737 thousand (2020: Grupa Azoty with sales of PLN 357 811 thousand), while the largest supplier-counterparty is also Polskie Sieci Elektroenergetyczne, with net purchases of PLN 1 894 781 thousand (2020: also Polskie Sieci Elektroenergetyczne – purchases of PLN 1 100 112 thousand).

The following table presents the key transactions with jointly controlled entities and associates: