17.1. Concessions held

The Group’s operations require concessions, due to their importance to the public interest.

31/12/2021 Remaining concessions periods
(in years)
Electrical energy: manufacturing, distribution, trade 1-10
Heating energy: manufacturing, transmission, distribution, trade 4-9
Natural gas: distribution, trade in Poland and abroad 4-9
Liquid fuels: manufacturing, transmission, storage, transhipment, trade in Poland and abroad 4-10
Non-reservoir storage of crude oil and liquid fuels 8
Rock salt: exploitation 11
Exploration and recognition of crude oil and natural gas deposits 1-4
Trade in petrochemical and chemical products 29
Personal and property security services  indefinitely

 

As at 31 December 2021  and as at 31 December 2020 the Group had no liabilities related to concession services in scope of IFRIC 12 – Service Concession Arrangements.

Concession fees, incurred for the concessions held to conduct business, including obtained in accordance with the provisions of the Energy Law and the executive regulations issued on the basis of this Act, are recognised in operating expenses as Taxes and fees. Expenses for concessions resulting from the geological and mining law, in particular the acquired concessions for exploration and recognition of crude oil and natural gas, are capitalized under property, plant and equipment as part of the outlays related to the exploration and extraction of mineral resources.

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