33. Provisions for liabilities and other charges

Provision for liabilities and other charges divided into current and non-current portion

	31.12.2014	31.12.2013
Non-current	464 720	407 735
Current	304 374	438 141
Closing balance	769 094	845 876

nota_33.xlsx

Change in provisions for liabilities and other charges

for the period ended 31.12.2014

	Provision for non-contractual use of land	Provision for projected losses due to compensation proceedings	Provision for land reclamation	Provision for the environ-mental fee	Provision for certificates of origin	Provision for CO₂ emissions rights	Other	Total
Opening balance	186 916	22 071	30 464	394	274 643	105 149	226 239	845 876
Unwinding of discount and discount rate change	(7 619)	-	2 527	-	-	-	-	(5 092)
Increase in provisions	12 871	6 452	24 724	-	413 403	106 678	23 488	587 616
Provisions used	(7 993)	-	-164	-	(522 772)	(105 149)	(6 377)	(642 455)
Provision reversed	(11 321)	(1 161)	-	-394	-396	-920	(2 659)	(16 851)
Closing balance	172 854	27 362	57 551	-	164 878	105 758	240 691	769 094

nota_332.xlsx

	Provision for non-contractual use of land	Provision for projected losses due to compensation proceedings	Provision for land reclamation	Provision for the environ-mental fee	Provision for certificates of origin	Provision for CO₂ emissions rights	Other	Total
Opening balance	159 861	23 695	24 648	2 098	236 083	90 361	86 842	623 588
Unwinding of discount and discount rate change	-	-	(2 968)	-	-	-	-	(2 968)
Increase in provisions	42 508	196	9 023	710	372 165	105 149	150 055	679 806
Provisions used	(4 144)	-48	-239	(1 704)	(324 541)	(90 361)	(5 627)	(426 664)
Provision reversed	(11 309)	(1 772)	-	-710	(9 064)	-	(5 031)	(27 886)

nota_333.xlsx

Provisions for liabilities are determined in reasonable, reliably estimated amounts. Individual provisions are recognized for projected losses related to court action brought against the Group. The amount recognized as a provision is the best estimate of the expenditure required to settle a claim. The cost of provisions is recognized under other operating expenses. A description of material claims and the related contingent liabilities has been presented in Notes 49.2, 49.5 and 49.6.

Provisions for liabilities and other charges include mainly:

Provision for non-contractual use of land

Provision for claims of persons holding possession of real properties, arising from non-contractual use of land. The provision for claims concerning non-contractual use of real properties is measured according to so-called staged approach and weighting, i.e. the probability of losing the dispute and necessity to fulfil the claim.

Claims for non-contractual use of real property may be significant for the Group because of the number of properties used, but the Group is not able to estimate the maximum amount of compensation. Enea Group - in relation to, inter alia, the draft Transmission Corridors Act - estimated and included in provisions the compensations for non-contractual use of real properties on which the grid assets are located (power lines), for which no claims have yet been raised as at the reporting date.

Provision for land reclamation

After closing or filling a slag and ash dump, the Group is obliged to carry out appropriate land reclamation. As the Group has large unfilled dumps, land reclamation is planned for 2060. Future estimated costs of land reclamation were discounted to their current value using a discount rate of 2.50% (as at 31 December 2013 – 4.26%).

As at 31 December 2014 the provision amounted to PLN 57,551 thousand (as at 31 December 2013 it was PLN 30,464 thousand).

Provision for purchasing CO₂ emissions rights

As at 31 December 2014 the provision for CO₂ emissions rights amounted to PLN 105,758 thousand (as at 31 December 2013 it was PLN 105,149 thousand).

Other provisions

Other provisions relate mainly:

potential liabilities related with electricity infrastructure and resulting from differences in interpretation of laws and regulations - PLN 109,563 thousand (as at 31 December 2013 PLN 93,508 thousand),
costs of using forest lands managed by State Forests - PLN 115,921 thousand (as at 31 December 2013 PLN 120,605 thousand).

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33. Provisions for liabilities and other charges