The companies of the Group conclude the following related party transactions:
- The Group’s constituent entities – transactions are eliminated at the consolidation stage;
- Transactions concluded between the Group and Members of its governing bodies fall within two categories:
- those resulting from employment contracts with Members of the Supervisory Board;
- resulting from other agreements under civil law.
- Transactions with entities whose shares are held by the State Treasury of the Republic of Poland.
- Transactions with members of the Group’s governing bodies:
| Management Board of the Company | Supervisory Board of the Company | |||
|---|---|---|---|---|
| 01.01.2016 31.12.2016 | 01.01.2015 31.12.2015 | 01.01.2016 31.12.2016 | 01.01.2015 31.12.2015 | |
| Remuneration under managerial contracts and consultancy agreements | 12 578 | 8 889 | - | - |
| Remuneration relating to appointment of members of management and supervisory bodies | - | - | 484 | 340 |
| TOTAL | 12 578 | 8 889 | 484 | 340 |
As at 31 December 2016 the liabilities resulting from managerial contracts and consultancy agreements to members of the Management Board amount to PLN 315 thousand. The provision for bonuses to members of the Management Board amounts to PLN 3 082 thousand as at 31 December 2016 (as at 31 December 2015: PLN 2 680 thousand), the amounts of provisions are not included in the table above.
The remuneration under managerial and consultancy agreements in 2016 included bonus for 2015 in the amount of PLN 2 653 thousand (in 2015 for 2014: PLN 2 936 thousand) and compensation for non-competition.
Transactions related to loans from the Company’s Social Benefits Fund:
| Balance as at 01.01.2016 | Granted from 01.01.2016 | Repaid till 31.12.2016 | Balance as at 31.12.2016 | |
|---|---|---|---|---|
| Supervisory Board | 27 | - | (11) | 16 |
| Total | 27 | - | (11) | 16 |
| Balance as at 01.01.2015 | Granted from 01.01.2015 | Repaid till 31.12.2015 | Balance as at 31.12.2015 | |
|---|---|---|---|---|
| Supervisory Board | 22 | 10 | (5) | 27 |
| TOTAL | 22 | 10 | (5) | 27 |
Other transactions resulting from agreements under civil law concluded between the Parent and Members of the Parent’s Bodies relate only to private use of company’s cars by Members of the Management Board of Enea S.A.
The Group also concludes business transactions with entities of the central and local administration and entities controlled by the State Treasury of the Republic of Poland.
The transactions concern mainly:
- purchase of coal, electricity and property rights resulting from certificates of origin as regards renewable energy and energy cogenerated with heat, transmission and distribution services provided by the Group to companies whose shares are held by the State Treasury;
- sale of electricity, distribution services, connection to the grid and other related fees and coal, provided both to central and local administration bodies (sale to end users) and entities whose shares are held by the State Treasury (wholesale and retail sale to end users).
Such transactions are concluded under arm’s length terms and their conditions do not differ from those applied in transactions with other entities. The Group does not keep a register which would allow it to aggregate the values of all transactions with state institutions and entities whose shares are held by the State Treasury. The most significant customer of Enea Group among entities controlled by the State Treasury is Energa Group, in 2016 the net sales to the entity amounted to PLN 158 344 thousand (in 2015 Polskie Sieci Elektroenergetyczne Group: PLN 116 602 thousand), the most significant supplier is also Polskie Sieci Elektroenergetyczne Group - net purchase amounted to PLN 917 043 thousand (in 2015 also PSE Group: PLN 815 129 thousand).
