39. Related-party transactions

Group companies execute transactions with the following related parties:

−Group companies – these transactions are eliminated at the consolidation stage;

−Transactions between the Group and members of the Group’s corporate authorities, which are divided into two categories:

−resulting from being appointed as Supervisory Board members,

−resulting from other civil-law contracts.

−transactions with State Treasury related parties.

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Transactions with members of the Group's corporate authorities:

	Year ended
	Company’s Management Board		Company’s Supervisory Board
Item	31 December 2020	31 December 2019	31 December 2020	31 December 2019
Remuneration under management contracts and consulting contracts	6 491*	4 023**	−	–
Remuneration under appointment to management or supervisory bodies	−	−	771	774
Other benefits	−	−	−	−
TOTAL	6 491	4 023	771	774

* This remuneration includes bonuses for 2018 and 2019, amounting to PLN 2 811 thousand, along with a non-compete clause and severance pay for a former Management Board Member amounting to PLN 893 thousand.** This remuneration includes a non-compete clause, severance pay for a former Management Board Member and bonuses for 2017 amounting to PLN 1 282 thousand.

As at 31 December 2020, liabilities related to management contracts and consultancy contracts towards Management Board members amount to PLN 480 thousand (PLN 164 thousand as at 31 December 2019). As at 31 December 2020, a provision for Management Board bonuses amounted to PLN 2 032 thousand (PLN 3 510 thousand as at 31 December 2019); the amount of this provision is not included in the above table.

The following table contains transactions concerning loans from the Company Social Benefit Fund:

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Organ	As at	Granted from	Repayment until	As at
	1 January 2020		31 December 2020
Company’s Supervisory Board	–	26	–	26
TOTAL	–	26	–	26

Organ	As at	Granted from	Repayment until	As at
	1 January 2019		31 December 2019
Company’s Supervisory Board	5	–	(5)	–
TOTAL	5	–	(5)	–

Other transactions resulting from civil-law contracts executed between the Parent and members of the Parent’s corporate authorities mainly concern the use of company cars by members of ENEA S.A.’s Management Board for private purposes.

Members of the Group’s governing bodies and their close relatives did not execute significant transactions having an impact on the Group’s results and financial situation.

Transactions with State Treasury related parties

The Group also executes commercial transactions with state and local administration units and entities owned by Poland’s State Treasury.

The subject of these transactions mainly is as follows:

−purchases of coal, electricity, property rights resulting from energy origin certificates as regards renewable energy and energy produced in cogeneration with heat, transmission and distribution services that the Group provides to the State Treasury’s subsidiaries,

−sale of electricity, distribution services, connection to the grid and other associated fees, as well as coal, that the Group provides for both state and local administration authorities (sale to end customers) and to the State Treasury’s subsidiaries (wholesale and retail sale – to end customers).

These transactions are executed on market terms, and these terms do not differ from the terms applied in transactions with other entities. The Group does not keep records that would make it possible to aggregate the amounts of all transactions executed with all state institutions and the State Treasury’s subsidiaries.

In addition, the Group identified financial transactions with State Treasury’s related parties, i.e. with banks serving as guarantors for bond issue programmes. These entities include: PKO BP S.A., Pekao S.A. and Bank Gospodarstwa Krajowego. Detailed information on bond issue programs is presented in note 30.

Among State Treasury subsidiaries ENEA Group’s largest counterparty-customer is Grupa Azoty, with net sales in 2020 reaching PLN 357 811 thousand (2019: also Grupa Azoty with sales of PLN 295 616 thousand), the largest supplier-counterparty is Polskie Sieci Elektroenergetyczne, with net purchases of PLN 1 100 112 thousand (2019: also Polskie Sieci Elektroenergetyczne – purchases of PLN 1 074 274 thousand).

Transactions with jointly controlled entities and associates

The following table presents the key transactions with jointly controlled entities and associates:

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	Year ended		As at
	31 December 2020		31 December 2020
	Sale	Purchases	Receivables	Liabilities
Jointly controlled entities	90 132	411 520	48 790	73 205
Associates	165	6 169	17	81 619

	Year ended		As at
	31 December 2019		31 December 2019
	Sale	Purchases	Receivables	Liabilities
Jointly controlled entities	69 289	441 502	51 292	103 917
Associates	6 564	1 688	1	81 628

The value of loans issued to jointly-controlled entity Elektrownia Ostrołęka Sp. z o.o. is PLN 209 785 thousand gross and PLN 0 net (note 18).

38.5. Interest rate risk

40. Explanatory notes for the consolidated statement of cash flows

39. Related-party transactions

Transactions with members of the Group's corporate authorities:

Transactions with State Treasury related parties

Transactions with jointly controlled entities and associates

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