1.3.2 Joint ventures that are subject to consolidation as regards the assets, equity and liabilities, revenues and costs attributable to PGE Group

In May 2021, Ørsted acquired shares in the increased share capital of Elektrownia Wiatrowa Baltica – 2 sp. z o.o. and Elektrownia Wiatrowa Baltica – 3 sp. z o.o. Following this transaction, Ørsted Group became a 50% shareholder in EWB2 and EWB3. In effect, PGE Group lost control over these two companies.

As a result of the transaction and the signed agreements, the shareholders have joint control over EWB2 and EWB3. Decisions regarding all major activities require unanimous consent from the shareholders. At the same time, based on professional judgement, PGE Group assessed that as a result of the agreements signed the shareholders have the right to generally all of the economic benefits that will be generated by the companies’ assets and will generally be their only source of revenue. According to PGE Group, starting from the date on which the stakes were acquired by Ørsted (as mentioned above), EWB2 and EWB3 constitute a joint operation in the meaning of IFRS Joint Arrangements, in connection with which in these financial statements PGE Group recognises its 50% stake in the assets, liabilities, revenues and costs of the jointly controlled entities.

The following table presents the way in which the loss of control over EWB2 and EWB3 was accounted for: