MARKET AND PRODUCT RISKS 

related to the prices and volumes of products and services offered

Key actions:

• Selection of optimal production scenarios adapted to the current market situation and current investment implementation schedule. Fulfillment of obligations specified in trade agreements regarding the supply of fuels, production raw materials and components, as well as ongoing cooperation with fuel and raw material procurement managers.
• Preparation and implementation of plans for: crisis management, overhauls, ongoing infrastructure/ production maintenance;
• Implementing preventive measures and recommendations from the lessons-learned process;
• Ensuring effective and uninterrupted cooperation with the heating network operator;
• Active participation in tasks related to the development of the heating network and cooperation with stakeholders in order to enable effective planning of the city’s heat and electricity supply.
• Ensuring effective transaction monitoring and the quality of services.
•  Applying for guaranteed and cogeneration bonuses, acting in accordance with procedures for managing the high-efficiency cogeneration support system and striving to achieve an ecological effect for the installation.
• Monitoring and optimisation of variable costs of energy production and the impact on the implementation of obligations arising from the EU ETS system.
• Monitoring of the actual carbon emissions, dynamic balancing and monitoring of the correct operation of measuring devices;
• Ensuring the highest possible operational readiness of the Capacity Market Units and the operational capacity of measurement systems related to the requirements of the Capacity Market.
• Constant monitoring of regulations and fulfillment of capacity obligations in accordance with the law;
• Analysing the legal and regulatory requirements;
• Ensuring compliance of the tariff process with relevant laws;

ASSET RISKS

related to the development and maintenance of assets

Key actions:

• Active implementation of the development strategy and transformation of own production capacities.
• Conducting analyses of the market, legislative and technological environment and available financing sources.
• Ensuring appropriate preparation of participants in the investment process.
• Ensuring appropriate management of the investment process, including taking into account macroeconomic and geopolitical conditions.
• Ensuring appropriate supervision of work in progress.
• Applying appropriate safeguards to ensure proper performance of the contract.
• Selection of units, production volumes and renovation plans taking into account the schedule for implementing development investments and decarbonisation plans.
• Carrying out maintenance and reconstruction repairs in accordance with adopted standards and increasing supervision over the asset maintenance process.
• Ensuring professional handling of the maintenance process and the availability of an appropriate level of external failure-response services.

OPERATIONAL RISKS

related to the implementation of current business processes

Key actions:

• Fuel management policy integrated at the PGE Group level.
• Ensuring the continuity of contracts for the purchase and transport of fuels, production raw materials and components.
• Applying a fuel strategy that takes into account the investment implementation schedule.
• Predefining the quality requirements for fuels and production inputs.
• Implementation of the principles of optimal management of fuel stock, taking into account the appropriate levels of contracted capacity and keeping fuel stocks at the required regulatory level;
• Ensuring professional handling of the purchasing process and applying internal regulations regarding its implementation.
• Ensuring the development of appropriate descriptions of contract subjects and the application of methods ensuring the correct estimation of contract values.
• Appropriate shaping of the generational succession process, including preparation and implementation of the succession and retention plan for employees at the Company.
• Shaping friendly working conditions, applying an adequate remuneration system, transparent principles of motivation and competence assessment, and ensuring professional development of employees.
• Ensuring appropriate levels and professional handling of dialogue with trade unions and maintaining communication in key areas.
• The employer’s initiative regarding changes aimed at improving the situation of employees, taking into account the business environment and regulations of the PGE Group.
• Ensuring an appropriate identification process and response to cybersecurity threats.
• Applying IT and OT security measures, including implementing recommendations and reconfiguration actions.
• Carrying out activities related to the implementation of the requirements of the NIS-2 Directive.
• Raising employee awareness of cybersecurity and exchanging good practices in the area of cybersecurity.
• Applying appropriate procedures, including the Confidential Information Policy.
• Providing Plant Protection Plans.
• The use of communication in the area of physical protection aimed at maintaining an adequate level of security.

LEGAL AND REGULATORY RISKS

related to meeting the requirements of the legal environment

Key actions:

• Monitoring environmental protection laws and regulations.
• Implementing and applying internal environmental protection standards;
• Ensuring that required environmental permits and decisions are in place.
• Ensuring regular checks and measurements of emissions and the technological process by competent bodies.
• Applying technical and organisational protective measures to reduce emissions.
• Applying standards for the management of waste and sewage generated in the production process.
• Planning and implementation of investment and modernisation initiatives in order to meet environmental requirements.
• Applying the Occupational Health and Safety Policy and the principles of organising safe work.
• Training of employees and contractors in occupational health and safety.
• Work environment control.
• Applying personal data protection procedures.
• Conducting training to shape awareness of employee and institutional responsibility in the field of personal data protection.
• Ensuring compliance with legal and regulatory requirements.

FINANCIAL RISKS

connected
with the Company’s financial management

Key actions:

• The Group applies a central financing model, according to which external financing is obtained by PGE S.A.
• Using various sources of intra-group financing, cooperation in the field of integrated liquidity management system and obtaining financing.
• Various methods for verifying cash flow plans.
• Planning current demand for financial resources and long-term financing needs within the scope of conducted operating and investment activities.
• Application of financial liquidity management and debtor control procedures.
• Implementation of the Credit Risk Management Policy and screening of contractors.
• Ensuring professional service of the debt structure.