As at the reporting date the carrying amount of property, plant and equipment related to the distribution activity amounted to more than PLN 16 billion and represented approx. 31% of the total consolidated assets. Their recoverable amount depends mainly on tariffs granted by President of the Energy Regulatory Office. Regulated revenue (tariff) which is determined annually provides covering justified costs: operating costs, depreciation and amortisation, taxes, purchase of energy to cover balancing difference and transferred costs. It provides also a return on equity involved in the distribution activity at a justified level. Return on equity and depreciation charges are dependent on the so called Regulatory Value of Assets.

As at the date of preparation of these consolidated financial statements, the PGE Group has not identified the indications for impairment of property, plant and equipment allocated to Distribution segment.