27. Energy certificates and CO2 emission allowances
SELECTED ACCOUNTING PRINCIPLES
Energy certificates of origin and gas emission allowances classified as intangible assets include:
- certificates of origin for energy produced from renewable energy sources (RES) as well as property rights arising from energy efficiency certificates, received or acquired with a view to their redemption in connection with the sale of electricity to final customers;
- CO2 emission allowances received or acquired for the purpose of meeting an obligation resulting from CO2 emission.
The Group classifies energy certificates of origin and CO2 emission allowances on the basis of the intention as to their intended use specified on the date of purchase (with a possibility of subsequent reclassification) as:
- current intangible assets – energy certificates of origin and gas emission rights designated for own use, where the Group intends to redeem them in order to meet its obligation for the current year;
- non-current intangible assets – energy certificates of origin and gas emission rights designated for own use, the purpose of which is to fulfil the obligation to present them for redemption in subsequent years.
The measurement principles for these assets at initial recognition are as follows:
| Purchased | Allocated/received free of charge | Disposal | |
| Certificates of origin | Purchase price | The fair value on the last day of the month in which the eligible energy was produced or on the last day of the month in which the energy efficiency certificates were granted and, in the case of concluded contracts or sales agreements, the fair value resulting from these documents | FIFO “first in, first out” |
| CO2 emission allowances | Purchase price | Nominal value (i.e. zero) | First received free of charge and then acquired (according to FIFO „first in, first out”) |
The energy certificates and the CO2 emission allowances are surrendered (in correspondence with settlement of the provision amount) at the date of their redemption. The principles applicable to the recognition of provisions relating to the energy certificate surrendering obligation and for liabilities arising from CO2 emissions are presented in Note 44.