Annual report 2017

We want to shape a responsible energy industry of tomorrow in our country.

Growth impulse

Our investments constitute a very substantial stimulus for economic growth and their implementation helps to improve the quality of life and work for local communities. We provide stable employment to over 40,000 people across 200 locations in the country and the taxes that we pay to the municipalities in which we operate often account for a significant part of their budget.

Focus on local markets

We are the third largest employer in Poland (Ranking of Rzeczpospolita List of 500). Most of our personnel live in towns in the vicinity of our facilities and a large number of our subcontractors are local enterprises, which we give opportunities for business development.

Many activities for local communities originate at the initiative of Group companies. As part of cyclical activities directed at the representatives of local government, PGE Dystrybucja organises Energy Forums, during which we share know-how about the distribution of electricity and conduct active dialogue with local residents concerning investment processes.

In our activities, we also try to support local businesses, which constitute a considerable part of our supplier and subcontractor base.

Investments that invigorate the regions

We are one of the largest domestic investors. Since the foundation of PGE Group 11 years ago, our capital expenditures have reached close to PLN 62 billion. These funds were spent on the construction of new capacities, eco-friendly modernisations of existing assets and expansion of power and district heating networks. This is a very large amount, which could have financed approx. 1,500 km of new highways in Poland (the total length of highways in Poland is approx. 1,600 km, according to General Director for National Roads and Motorways).

In 2017, we invested approx. PLN 7 billion. Nearly half of this constituted funding for the construction of new power generation units in Opole and Tarnów, located in south-western Poland and fitted with the best currently available technologies featuring the lower emission levels. Our investments provide an impetus for the Polish economy - these are not just orders that mostly go to Polish businesses. These are also thousands of jobs at construction sites and subsequently at operational units. In places where we operate, we are the largest or one of the largest employers and thanks to our energy, companies can develop their business and search for new opportunities. We are proud of the fact that we are a driving force for these regions.

Our contribution to local budgets

At central and local level, our business in 2017 brought in approx. PLN 5.2 billion in taxes (approx. PLN 4.7 billion in 2016). This amount mainly includes: excise duty, VAT, CIT, taxes and contributions for PGE employees, property taxes as well as other taxes and fees.

  2017 2016
dolnośląskie 112.2 114.8
kujawsko-pomorskie 13.5 13.3
lubelskie 35.4 33.3
lubuskie 11.0 11.3
łódzkie 283.8 286.5
małopolskie 0.8 0.6
mazowieckie 51.9 46.6
opolskie 33.4 33.5
podkarpackie 30.7 27.3
podlaskie 12.5 11.7
pomorskie 2.7 2.0
śląskie 2.5 1.8
świętokrzyskie 21.4 20.0
warmińsko-mazurskie 2.7 2.5
zachodniopomorskie 40.4 40.8

*Estimation based on tax returns and documentation of other fees paid by PGE Group companies (without the assets acquired in mid November 2017) to local governments, resulting from the law.

As a result of our activities, local governments (municipalities, counties and districts budgets) received close to PLN 656 million in 2017 (approx. PLN 646 million in 2016).

Tax impact by each level of government* (PLN million)

  Data for 2017 Data for 2016 Data for 2015
State Treasury 3,490 3,037 3,201
Social Security 1,056 1,066 1,076
Municipal budgets 334 343 347
County budgets 46 44 45
Voivodship budgets 274 259 315
Total 5,201 4,748 4,985

* Estimates based on tax returns and records of other levies paid for the benefit of local governments resulting from the laws in force. Breakdown into individual local government levels was made on basis of information concerning the amounts of taxes paid by individual companies of PGE Group companies (without the assets acquired in mid November 2017), employment at individual companies and municipalities, as well as information about division of income from Personal Income Tax and Corporate Income Tax between the local governments and the State Treasury in 2015-2017.

In the Kleszczów municipality, which is where the largest lignite-based power plant and lignite mine in Europe are located, over 50% of all expenditures made by local government in 2017 were financed from taxes paid by PGE Group. 

The total amount received by various territorial units at municipal level as a result of our operations reached PLN 334 million.


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