51.15. Inventory

Inventories are measured at acquisition price or manufacturing cost not exceeding the net selling price.

Cost is determined according to the FIFO method except for production coal, biomass and limestone powder whose costs are determined in line with weighted average acquisition price method.

Certificates of origin acquired for redemption and for resale, as well as self produced certificates are presented in inventory.

As at the end of the reporting period, the acquired certificates of origin are measured at acquisition price, less impairment losses.

Certificates of origin produced by the Group are recognized at the moment of producing electricity (or as at the date on which their issuance has become probable), unless there is a reasonable doubt regarding the President of Energy Regulatory Office ability to issue them. The certificates of origin on self produced electricity are measured at market price on the last day of the month in which the energy related to the certificates was produced.

The deadline for complying with the requirement of certificate redemption or substitute fee payment expires on 31 March of the following year.

During the financial year and until 31 March of the following year the Company presents certificates of origin for redemption on a monthly basis in order to fulfill its obligation regarding the financial year. Redemption of certificates of origin is recognized in the accounting records based on a redemption decision issued by the President of the Energy Regulatory Office, the redeemed certificates being subject to detailed identification.