43. Related party transactions

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:

As at 31 December 2014 the liabilities resulting from managerial contracts and consultancy agreements to members of the Management Board amount to PLN 732 thousand. The provision for bonuses to members of the Management Board amount to PLN 2,680 thousand (as at 31 December 2013 respectively PLN 2,191 thousand), the amount of provisions are not included in the table above.

The remuneration under managerial and consultancy agreements included bonus for 2013 paid in 2014 in the amount of PLN 2,680 thousand (in 2013 no bonus was paid for 2012).

Transactions related to loans from the Company’s Social Benefits Fund:

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 SA

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, 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 Zakłady Azotowe w Tarnowie Mościcach SA (Grupa Azoty), in 2014 the net sales to the entity amounted to PLN 150,003 thousand (in 2013 it was Polskie Sieci Elektroenergetyczne - net sales amounted to PLN 167,409 thousand), The most significant supplier is Katowicki Holding Węglowy SA - net purchase amounted to PLN 356,908  thousand (in 2013 it was Polskie Sieci Elektroenergetyczne: PLN 684,357 thousand).