The PGE Group’s transactions with related entities are being concluded using market prices for provided goods, products and services or are based on the cost of manufacturing.

32.1 Associates and jointly controlled entities

The total value of transactions with such entities is presented in the table below.


 

 

Year ended
December 31, 2016

Year ended
December 31, 2015

Sales to associates and jointly controlled entities

88

7

Purchases from associates and jointly controlled entities

571

-


 

 

Year ended
December 31, 2016

Year ended
December 31, 2015

Trade receivables from associates and jointly controlled entities

41

1

Trade liabilities to associates and jointly controlled entities

16

-

 

The increase in turnover and balances results from the inclusion of Polska Grupa Górnicza sp. z o.o. in these financial statements. This entity is treated as a jointly controlled entity.

32.2 Subsidiaries of the State Treasury

The State Treasury is the dominant shareholder of PGE Polska Grupa Energetyczna S.A. and as a result in accordance with IAS 24 Related Party Disclosures, State Treasury companies are treated as related entities. The PGE Group entities identify in detail transactions with approximately 40 of the biggest State Treasury subsidiaries.

The total value of transactions with such entities is presented in the table below:


 

 

Year ended
December 31, 2016

Year ended
December 31, 2015

Sales to related parties

2,137

2,509

Purchases from related parties

3,579

3,539


 

 

Year ended
December 31, 2016

Year ended
December 31, 2015

Trade receivables from related parties

313

383

Trade liabilities to related parties

418

387

 

The largest transactions with State Treasury companies involve Polskie Sieci Elektroenergetyczne S.A., Enea S.A., ENERGA-OBRÓT S.A., PKN Orlen S.A. and purchases of coal from Polish mines.

Moreover, the PGE Group concludes significant transactions on the energy market via Towarowa Giełda Energii S.A. (Polish Power Exchange). Due to the fact that this entity only deals with the organization of trading, purchases and sales transacted through this entity are not recognized as transactions with related parties.

32.3 Management personnel remuneration

The key management includes the Management Boards and Supervisory Boards of the parent company and significant Group entities.

PLN thousand

Year ended
December 31, 2016

Year ended
December 31, 2015

Short-term employee benefits (salaries and salary related costs)

32,508

30,877

Post-employment and termination benefits

9,446

4,542

TOTAL REMUNERATION OF KEY MANAGEMENT PERSONNEL

41,954

35,419

Remuneration of key management personnel of entities of non-core operations

15,395

13,720

TOTAL REMUNERATION OF MANAGEMENT PERSONNEL

57,349

49,139

PLN thousand

Year ended
December 31, 2016

Year ended
December 31, 2015

Management Board of the parent company, including:

11,669

6,217

Post-employment benefits

3,066

(46)

Supervisory Board of the parent company

510

407

Management Boards – subsidiaries

27,448

27,394

Supervisory Boards – subsidiaries

2,327

1,401

TOTAL

41,954

35,419

Remuneration of key management personnel of entities of non-core operations

15,395

13,720

TOTAL REMUNERATION OF MANAGEMENT PERSONNEL

57,349

49,139

 

Increase of the remuneration of management personnel is mainly caused by higher post-employment benefits (terminations, non-competition clauses).

The Members of the Management Boards of some of the Group companies are employed on the basis of civil law contracts for management (so called management contracts). The above remuneration is included in other costs by nature disclosed in note 7.2 Costs by nature and function.