
Article 1 

1. The Power Purchase Agreements between Polskie Sieci Elektroenergetyczne S.A. and the companies indicated in Annex 1 to the Act on the rules governing the covering of costs incurred by enterprises in connection with the early termination of Power Purchase Agreements constitutes state aid within the meaning of Article 87(1) of the EC Treaty to electricity generators.
2. The state aid referred to in Article 1(1) was awarded unlawfully and is incompatible with the common market.
Article 2 

1. Poland shall terminate the Power Purchase Agreements referred to in Article 1.
2. The termination agreements for the Power Purchase Agreements shall be concluded by 1 January 2008 and shall enter into force not later than 1 April 2008.
Article 3 
The Power Purchase Agreement between Polskie Sieci Elektroenergetyczne S.A. and Żarnowiecka Elektrownia Gazowa Sp. z o.o. does not constitute state aid within the meaning of Article 87(1) of the EC Treaty.
Article 4 

1. The compensation provided for in the Act constitutes state aid within the meaning of Article 87(1) of the EC Treaty to the electricity generators listed in Appendix 2 to that Act.
2. The state aid referred to in Article 4(1) is compatible with the common market on the basis of the Stranded Costs Methodology.
3. The maximum amount of compensation provided for in the Act shall be the amount following deduction of the total revenue generated by the assets under the PPAs and which is available to cover investment costs.
Article 5 

1. The Polish authorities shall inform the Commission by 31 January 2008 of the measures taken by Poland to implement this Decision.
2. The Polish authorities shall submit to the Commission annual reports on implementation of the Act.
Article 6 
This Decision is addressed to the Republic of Poland.
Done at Brussels, 25 September 2007.
For the Commission
Neelie KROES
Member of the Commission