The original amount of the fine imposed on PGNiG in 2010 was PLN 2m. The Company applied to the Court to reverse, or alter, the decision in its entirety and to rule that PGNiG was not in breach of any obligation arising under the cross-border gas trading licence. The Court altered the challenged decision by reducing the amount of the imposed fine, citing the small extent of the breach of the diversification obligation, and awarded PLN 115 to be paid by the Energy Regulatory Office to PGNiG as reimbursement of the costs of proceedings. In the remaining part, the appeal was dismissed.

The breach of the terms of the licence consisted of the Company's failure to achieve in 2007 and 2008 the minimum level of diversification of foreign sources of gas supplies, as required under the Regulation of the Council of Ministers of October 24th 2000. The Company failed to achieve the required diversification level in that it exceeded the limit on the maximum share of gas imported from one country in total gas volumes imported in each of these years.

The ruling of the Regional Court of Warsaw may cause the President of URE to institute further proceedings in this case concerning the subsequent years.

The Company will consider any further steps in the case after it receives written reasons for the ruling.

PGNiG SA Press Team