Regulations regulating energy prices
Due to the crisis situation on the electricity market in 2022, when a significant increase in electricity prices in SPOT and futures contracts was recorded, largely caused by increases in conventional fuel prices as a result of the war in Ukraine, the regulator decided to introduce a number of legal acts aimed at market regulation and consumer protection.

As at 31 December 2022, the following acts were in force:

• Act of 7 October 2022 on special solutions to protect electricity consumers in 2023 in connection with the situation on the electricity market (concerning the freezing of prices for tariff G up to consumption limits);
• Act of 27 October 2022 on emergency measures to reduce electricity prices and support for certain consumers in 2023;
• Regulation of 8 November 2022 on the method of calculating the price limit;
• Act of 15 December 2022 on special protection of certain consumers of gaseous fuels in 2023 in the light of the assessment on the gas market;
• decision of the President of the Energy Regulatory Office of 17 December 2022 on the approval of the Tariff for electricity for G tariff groups for 2023 (connected to the Energa-Operator S.A. grid), for which Energa Obrót S.A. provides a comprehensive service

Based on the applicable regulations, the Group presented PLN 349 million for compensations due to electricity trading companies as a result of the use of frozen electricity prices in settlements with eligible customers. Due to the fact that the fact of granting the above compensations did not modify the contracts concluded with customers, but only changes the method of obtaining remuneration by the Group (partially the remuneration will be received from the Settlement Manager), the Group classified the received compensations as revenue from contracts with customers, in accordance with IFRS 15.

Regulations regulating gas prices
PGNIG Obrót Detaliczny Sp. z o.o., which became a subsidiary of the ORLEN Group as a result of the merger of ORLEN with PGNIG, was subject in 2022 to the Act of 26 January 2022 on special solutions for the protection of gaseous fuel consumers in connection with the situation on the gas market, and therefore the company was entitled to apply for compensation from the Settlement Manager specified in the Act, being the difference between the actual purchase price of gas and the price of its sale to end customers covered by the tariff mechanism.

Compensation was calculated based on two mechanisms:

• as regards the application of frozen prices for the segment of consumers in households, cooperatives, communities and other collective entities supplying residential premises, as well as for vulnerable customers - the amount being the product of the amount of gaseous fuel supplied by the energy company and the difference between the level of prices that this company applied for these customers on 1 January 2022, and the price level from the supplier's ex officio tariff;
• in the scope of applying frozen prices for the segment of consumers in households individually supplied with gas by an energy company - the amount being the product of the amount of gaseous fuel supplied by the energy company and the difference between the level of prices and rates specified in the tariff of this company, which it would apply under normal market conditions and the level of prices specified in the ex officio seller's tariff.

Therefore, the fact of granting the above compensations did not modify concluded contracts with customers, but only changes the method of obtaining remuneration by the Group (partially the remuneration will be received from the Settlement Manager), the Group classified the compensation received as revenue from contracts with customers, in accordance with IFRS 15. The total value of the above compensations included in the Group's sales revenue in the period from the merger with PGNiG amounted to PLN 3,941 million.