EP Infrastructure, a.s.
Annual financial report for the year
2025
CONTENT
I. Introduction by the Chairman of the Board of Directors
II. Independent Auditor´s Report to the Annual Financial Report
III. Other Information
IV. Report on relations
V. Consolidated Financial Statements and Notes to the Consolidated
Financial Statements
VI. Independent Auditor´s Report to the Statutory Financial Statements
VII. Statutory Financial Statements and Notes to the Statutory Financial
Statements
VIII. Sustainability – Management Review
IX. Independent Auditor´s Report to the Sustainability Statement
X. Consolidated Sustainability Statement
I. Introduction by the Chairman of the Board of Directors
INTRODUCTION BY THE CHAIRMAN OF THE BOARD OF DIRECTORS AND
THE CHIEF EXECUTIVE OFFICER
Dear Investors, Business Partners, Colleagues and Friends,
2025 was a year in which Europe’s energy priorities, security of supply, affordability and
decarbonisation, were tested in real time. As a long-term owner and operator of essential
infrastructure, EPIF’s role is to keep energy moving safely and reliably, while investing
selectively to strengthen the resilience and future readiness of our networks. Our strategy
remains focused on regulated and long-term contracted assets that translate operational
excellence into predictable cash generation, supporting disciplined dividends, safeguarding our
investment grade credit profile and enabling continued investment throughout the cycle.
From a market perspective, 2025 highlighted how quickly Europe’s gas system can change.
The halt of Russian gas transit via Ukraine on 1 January 2025 removed a long-standing routing
option and accelerated the shift toward LNG and alternative pipeline corridors. REPowerEU
continued to drive diversification away from Russian fuels alongside efficiency improvements,
renewable deployment and electrification. This produced pricing patterns that differed from
traditional seasonal dynamics, with summer prices at times trading above winter levels due to
regulatory storage filling requirements. More recently, heightened geopolitical tensions
involving Iran have further illustrated the fragility of global energy supply chains and the
potential for volatility, particularly where LNG shipping routes could be affected. Against this
backdrop, the strategic importance of well-maintained networks and storage infrastructure has
increased, as policymakers and market participants prioritise security of supply and system
resilience. At the same time, the resilience of regulated networks became even more visible:
stable tariff frameworks and inflation indexation support predictable returns and limit exposure
to commodity price movements.
Against this backdrop, the European gas market began to rebalance, with demand up around
three percent on higher gas burn in the power sector and colder temperatures early in the year.
Total EU imports of pipeline gas and LNG rose by six percent year on year to approximately
312 billion cubic metres, supported by stronger LNG inflows from the United States and Africa,
while Russian pipeline deliveries declined materially. Storage remained a critical balancing
tool: inventories started the year well below prior year levels and ended 2025 still around
thirteen percent lower than in 2024. For EPIF, this backdrop highlighted the essential role of
our transmission, distribution and storage assets in supporting stability across the regional
energy system.
Despite these market conditions, EPIF delivered a resilient operating performance. Group´s
Adjusted EBITDA
1
driven by the expected structural transition in Gas Transmission following the cessation of
Russian flows via Ukraine and by weaker than expected spreads in Gas Storage. Nevertheless,
the Group’s results were broadly in line with expectations and in several areas slightly above
them. Strong cash generation, including Adjusted Free Cash Flow
2
enabled EPIF to pay EUR 320 million in dividends while maintaining solid liquidity and
financial flexibility. These outcomes demonstrated the robustness of our predominantly
regulated and long-term contracted business model and the resilience of our diversified asset
base. Across our four business segments, performance in 2025 reflected both the structural
changes in Europe’s energy system and the strength of EPIF’s portfolio.
The Gas Transmission segment operated in fundamentally different conditions. Eustream’s role
shifted to a predominantly regulated transmission system operator serving domestic and
regional flows. Transported volumes reached 4.9 bcm and Adjusted EBITDA amounted to EUR
171 million, representing 17 percent of Group´s Adjusted EBITDA. Although materially lower
transit volumes reflect a permanent change in regional flow patterns, Eustream’s network
remains vital for the region, supporting the integration of alternative supply sources and
reinforcing energy security. Strategic investments, including the Slovak-Polish interconnector,
have increased system flexibility and enabled multi directional gas flows that strengthen
regional resilience. The segment continues to be an important and stable part of EPIF’s
portfolio.
While Gas Transmission adapted to its new operating model, the Gas and Power Distribution
segment continued to provide a stable foundation for the Group. Adjusted EBITDA reached
EUR 572 million, representing 56 percent of Group´s Adjusted EBITDA and a slight decline
of one percent year on year. Gas distribution volumes increased by four percent to 49.1 TWh
and electricity distribution volumes also rose by four percent to 6.4 TWh. Operating within a
transparent and supportive regulatory framework in Slovakia, this segment continues to form
the core of EPIF’s stable earnings profile.
In contrast to the stability of distribution activities, the Gas Storage segment operated in a
weaker commercial environment. Adjusted EBITDA amounted to EUR 191 million,
representing 19 percent of Group´s Adjusted EBITDA and a year-on-year decline of 31 percent.
Narrower winter to summer spreads and lower volatility reduced market opportunities. Despite
this backdrop, our storage portfolio maintained high utilisation and continued to play a critical
role in balancing the regional gas system. With nearly 62 TWh of working gas capacity and
strong technical capabilities, EPIF operates one of the largest and most strategically relevant
storage systems in Central Europe. While market conditions can fluctuate, we remain confident
in the long-term importance of storage within an energy system that increasingly depends on
flexibility and security of supply.
Alongside these segments, Heat Infra remained an important contributor. Adjusted EBITDA
reached EUR 88 million in 2025, representing 9 percent of Group´s Adjusted EBITDA. The
disposal of selected assets early in the year enabled EPIF to focus more closely on core heat
infra activities supported by long-term contracts. As an operator of critical district heating
systems in the Czech Republic, EPIF provides reliable heat for more than 150,000 end
consumers and dispatchable electricity that contributes to grid stability. Operational
performance remained stable and was supported by increased biomass utilisation in Plzeňská
teplárenská that already operates a diversified generation fleet combining lignite with waste to
energy and biomass. EPIF is advancing the construction of a new CCGT unit that will enhance
efficiency, improve system flexibility and support the long-term decarbonisation pathway of
the asset base. As the European energy mix incorporates more intermittent renewables, the
flexibility of these assets will become increasingly important. During the transition, natural gas
will continue to play a role, with technology capable of combusting renewable gas blends from
the outset and scalable toward full substitution as markets develop.
EPIF also strengthened its capital structure through a combination of long dated green bond
issuances and targeted repayments of shorter-dated debt. Under its EMTN Programme, the
Group issued EUR 600 million of green notes maturing in 2033 and, in January 2026, EUR
500 million of green notes maturing in 2034. Both transactions attracted strong institutional
demand and provided substantial long-term liquidity ahead of the EUR 600 million bond
maturing in July 2026. At the same time, EPIF voluntarily repaid Schuldschein tranches
totalling EUR 285 million. This approach reduced refinancing risk, extended the Group’s
maturity profile and reinforced long-term financial flexibility. EPIF’s solid credit standing was
reaffirmed by all three major rating agencies. Fitch and S&P maintained EPIF at BBB, and
Moody’s at Baa3, equivalent to BBB. The agencies highlighted the Group’s strong liquidity,
the diversification benefits of its regulated and contracted portfolio and its prudent capital
management.
In summary, 2025 was a year shaped by structural change, but also by resilience, stability and
continued strategic progress for EPIF. Our diversified asset base, strong liquidity and
disciplined capital allocation enabled us to navigate a shifting market landscape while
advancing our transition agenda.
We remain grateful to our employees, partners and investors for their ongoing trust and support,
and we are committed to delivering reliable performance, prudent financial management and
long-term value creation.
1
Adjusted EBITDA represents Underlying EBITDA adjusted by adding back the deficit from the purchase of electricity to cover network
losses in 2022 stemming from the difference between (i) regulated price of electricity to cover network losses valid for 2022, which was a
fixed price calculated in line with the Slovak Decree of the Regulator No. 18/2017 Coll., Article 28 or any other applicable decree or law
replacing it (the Decree), and (ii) spot market price at which electricity was being bought to cover network losses in 2022; and deducting the
one-off correction amount set by the Decree which is supposed to compensate for the difference between the regulated price and spot market
purchase price (2025: EUR 0 million; 2024: EUR 19 million)
For definition and reconciliation of Underlying EBITDA refer to Note 5 - Operating segments in EPIF´s consolidated financial statements
2025. Reconciliation of Adjusted EBITDA is as follows:
Key Metrics | Gas and Power Distribution | Gas Transmission | Gas Storage | Heat Infra | Total segments | Other | Inter-segment eliminations | Consolidated financial information |
Year 2025 | ||||||||
Underlying EBITDA | 572 | 171 | 191 | 88 | 1,022 | (4) | - | 1,018 |
One-off network losses correction | - | - | - | - | - | - | - | - |
Adjusted EBITDA | 572 | 171 | 191 | 88 | 1,022 | (4) | - | 1,018 |
Key Metrics | Gas and Power Distribution | Gas Transmission | Gas Storage | Heat Infra | Total segments | Other | Inter-segment eliminations | Consolidated financial information |
Year 2024 | ||||||||
Underlying EBITDA | 597 | 413 | 278 | 95 | 1,383 | (4) | - | 1,379 |
One-off network losses correction | (19) | - | - | - | (19) | - | - | (19) |
Adjusted EBITDA | 578 | 413 | 278 | 95 | 1,364 | (4) | - | 1,360 |
2
Adjusted Free Cash Flow represents Cash flows generated from (used in) operations, less Income taxes paid and less Acquisition of property,
plant and equipment, investment property and intangible assets, and disregarding Changes in restricted cash as presented in the Consolidated
statement of cash flows of the Group, adjusted for: (i) working capital impact of the systems operation tariff (2025: EUR 0 million; 2024:
EUR (11) million), (ii) Underlying EBITDA effect of the network losses correction (2025: EUR 0 million; 2024: EUR 19 million )
II. Independent Auditor´s Report to the Annual Financial Report
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Deloitte Audit s.r.o. Churchill I Italská 2581/67 120 00 Prague 2 – Vinohrady Czech Republic Tel: +420 246 042 500 DeloitteCZ@deloitteCE.com www.deloitte.cz Registered by the Municipal Court in Prague, Section C, File 24349 ID. No.: 49620592 Tax ID. No.: CZ49620592 | |
INDEPENDENT AUDITOR’S To EP Infrastructure, |
Having its registered office at: Pařížská 130/26, Josefov, 110 00 Prague 1
REPORT ON THE AUDIT OF THE CONSOLIDATED FINANCIAL STATEMENTS
Opinion
We have audited the accompanying consolidated financial statements of EP Infrastructure, a.s. (the “Company”)
and its subsidiaries (the “Group”)
prepared on the basis of International Financial Reporting Standards (IFRS®
Accounting Standards) as adopted by the European Union, which comprise the consolidated statement of financial
position as at 31 December 2025, consolidated statement of comprehensive income, consolidated statement
of changes in equity and consolidated statement of cash flows for the year then ended, and notes to the consolidated
financial statements, including material accounting policy information.
In our opinion, the accompanying consolidated financial statements give a true and fair view of
the consolidated
financial position of the Group as at 31 December 2025, and of its consolidated financial performance and its
consolidated cash flows for the year then ended in accordance with IFRS Accounting Standards as adopted by
the European Union.
Basis for Opinion
We conducted our audit in accordance with the Act on Auditors, Regulation (EU) No. 537/2014 of the European
Parliament and the Council and Auditing Standards of the Chamber of Auditors of the Czech Republic, which are
International Standards on Auditing (ISAs), as amended by the related application guidelines. Our responsibilities
under this law and regulation are further described in the Auditor’s Responsibilities for the Audit of the Consolidated
Financial Statements section of our report. We are independent of the Group in accordance with the Act on Auditors
and the Code of Ethics adopted by the Chamber of Auditors of the Czech Republic, as applicable to audits of financial
statements of public interest entities. We have also fulfilled our other ethical responsibilities in accordance with
these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide
a basis for our opinion.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit
of the consolidated financial statements of the current period. These matters were addressed in the context of our
audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide
a separate opinion on these matters.
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Other Information in the Annual Financial Report
In compliance with Section 2(b) of the Act on Auditors, the other information comprises the information included in
the Annual Financial Report other than the financial statements, consolidated financial statements and auditor’s
reports thereon. The Board of Directors is responsible for the other information.
F100A834DABEAA4F043B627CFE80E28B
Our opinion on the consolidated financial statements does not cover the other information. In connection with our
audit of the consolidated financial statements, our responsibility is to read the other information and, in doing so,
consider whether the other information is materially inconsistent with the consolidated financial statements or our
knowledge obtained in the audit or otherwise appears to be materially misstated. In addition, we assess whether
the other information with the exception of the sustainability statement has been prepared, in all material respects, in
accordance with applicable law or regulation, in particular, whether the other information with the exception
of the sustainability statement complies with law or regulation in terms of formal requirements and procedure for
preparing the other information in the context of materiality, i.e. whether any non-compliance with these
requirements could influence judgments made on the basis of the other information.
Based on the procedures performed, to the extent we are able to assess it, we report that:
●
The other information describing the facts that are also presented in the consolidated financial statements is, in
all material respects, consistent with the financial statements, consolidated financial statements; and
●
The other information with the exception of the sustainability statement is prepared in compliance with
applicable law or regulation.
In addition, our responsibility is to report, based on the knowledge and understanding of the Group obtained in
the audit, on whether the other information contains any material misstatement of fact. Based on the procedures we
have performed on the other information obtained, we have not identified any material misstatement of fact.
Responsibilities of the Company’s Board of Directors and Supervisory Board for the Consolidated Financial
Statements
The Board of Directors is responsible for the preparation and fair presentation of the consolidated financial
statements in accordance IFRS Accounting Standards as adopted by the European Union and for such internal
control as the Board of Directors determines is necessary to enable the preparation of consolidated financial
statements that are free from material misstatement, whether due to fraud or error.
In preparing the consolidated financial statements, the Board of Directors is responsible for assessing the Group’s
ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going
concern basis of accounting unless the Board of Directors either intends to liquidate the Group or to cease
operations, or has no realistic alternative but to do so.
The Supervisory Board is responsible for overseeing the Group’s financial reporting process.
Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements
Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole
are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our
opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in
accordance with ISAs will always detect a material misstatement when it exists. Misstatements can arise from fraud
or error and are considered material if, individually or in the aggregate, they could reasonably be expected to
influence the economic decisions of users taken on the basis of these consolidated financial statements.
As part of an audit in accordance with the above law or regulation, we exercise professional judgment and maintain
professional skepticism throughout the audit. We also:
●
Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to
fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is
sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement
resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional
omissions, misrepresentations, or the override of internal control.
●
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness
of the Group’s internal control.
●
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates
and related disclosures made by the Board of Directors.
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●
Conclude on the appropriateness of the Board of Directors’ use of the going concern basis of accounting and,
based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that
may cast significant doubt on the Group’s ability to continue as a going concern. If we conclude that a material
uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in
the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our
conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future
events or conditions may cause the Group to cease to continue as a going concern.
●
Evaluate the overall presentation, structure and content of the consolidated financial statements, including
the disclosures, and whether the consolidated financial statements represent the underlying transactions and
events in a manner that achieves fair presentation.
●
Plan and perform the group audit to obtain sufficient appropriate audit evidence regarding the financial
information of the entities or business units within the group as a basis for forming an opinion on the group
financial statements. We are responsible for the direction, supervision and review of the audit work performed for
purposes of the group audit. We remain solely responsible for our audit opinion.
We communicate with the Board of Directors, the Supervisory Board and the Audit Committee regarding, among
other matters, the planned scope and timing of the audit and significant audit findings, including any significant
deficiencies in internal control that we identify during our audit.
We also provide the Audit Committee with a statement that we have complied with relevant ethical requirements
regarding independence, and to communicate with them all relationships and other matters that may reasonably
be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with the Board of Directors, the Supervisory Board and the Audit Committee, we
determine those matters that were of most significance in the audit of the consolidated financial statements
of the current period and are therefore the key audit matters. We describe these matters in our auditor’s report unless
law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we
determine that a matter should not be communicated in our report because the adverse consequences of doing so
would reasonably be expected to outweigh the public interest benefits of such communication.
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
Information required by Regulation (EU) No 537/2014 of the European Parliament and of the Council
In compliance with Article 10 (2) of Regulation (EU) No. 537/2014 of the European Parliament and the Council, we
provide the following information in our independent auditor’s report, which is required in addition to the
requirements of International Standards on Auditing:
Appointment of the Auditor and the Period of Engagement
We were appointed as the auditors of the Group by the General Meeting of Shareholders on 5 March 2020 and our
uninterrupted engagement has lasted for 6 years.
Consistence with the Additional Report to the Audit Committee
We confirm that our audit opinion on the consolidated financial statements expressed herein is consistent with
the additional report to the Audit Committee of the Company, which we issued on 19 March 2026 in accordance with
Article 11 of Regulation (EU) No. 537/2014 of the European Parliament and the Council.
Provision of Non-audit Services
We declare that no prohibited non-audit services referred to in Article 5 of Regulation (EU) No. 537/2014
of the European Parliament and the Council were provided. In addition, there are no other non-audit services which
were provided by us to the Group and which have not been disclosed in the consolidated financial statements.
Report on Compliance with the ESEF Regulation
We have conducted a reasonable assurance engagement on the verification of compliance of the financial
statements included in the Annual Financial Report with the provisions of Commission Delegated Regulation (EU)
2019/815 of 17 December 2018 supplementing Directive 2004/109/EC of the European Parliament and of the Council
with regard to regulatory technical standards on the specification of a single electronic reporting format
(the “ESEF Regulation”) that apply to the financial statement.
Responsibilities of the Board of Directors
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The Company’s Board of Directors is responsible for the preparation of the financial statements in compliance with
the ESEF Regulation. Inter alia, the Company’s Board of Directors is responsible for:
●
The design, implementation and maintenance of the internal control relevant for the application
of the requirements of the ESEF Regulation;
●
The preparation of all financial statements included in the Annual Financial Report in the valid XHTML format; and
●
The selection and use of XBRL mark-ups in line with the requirements of the ESEF Regulation.
Auditor’s Responsibilities
Our task is to express a conclusion whether the financial statements included in the Annual Financial Report are, in
all material respects, in compliance with the requirements of the ESEF Regulation, based on the audit evidence
obtained. Our reasonable assurance engagement was conducted in accordance with the International Standard on
Assurance Engagements 3000 (Revised) Assurance Engagements Other Than Audits or Reviews of Historical
Financial Information (hereinafter “ISAE 3000”).
The nature, timing and scope of the selected procedures depend on the auditor’s judgment. A reasonable assurance
is a high level of assurance; however, it is not a guarantee that the examination conducted in accordance with the
above standard will always detect a potentially existing material non-compliance with the requirements of the ESEF
Regulation.
As part of our work, we performed the following procedures:
●
We obtained an understanding of the requirements of the ESEF Regulation;
●
We obtained an understanding of the Company’s internal control relevant for the application of the requirements
of the ESEF Regulation;
●
We identified and evaluated risks of material non-compliance with the ESEF Regulation, whether due to fraud
or error; and
●
Based on this, we designed and performed procedures responsive to those risks and aimed at obtaining
a reasonable assurance for the purposes of expressing our conclusion.
The aim of our procedures was to assess whether:
●
The financial statements included in the Annual Financial Report were prepared in the valid XHTML format;
●
The disclosures in the consolidated financial statements were marked up where required by the ESEF Regulation
and all mark-ups meet the following requirements:
o
XBRL mark-up language was used;
o
The elements of the core taxonomy specified in the ESEF Regulation with the closest accounting meaning were
used, unless an extension taxonomy element was created in compliance with the ESEF Regulation; and
o
The mark-ups comply with the common rules for mark-ups pursuant to the ESEF Regulation.
We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our conclusion.
Conclusion
In our opinion, the Company’s financial statements for the year ended 31 December 2025 included in the annual
financial report are, in all material respects, in compliance with the requirements of the ESEF Regulation.
In Prague on
19 March 2026
Audit firm: | Statutory auditor: |
Deloitte Audit s.r.o. registration no. 079 | David Batal registration no. 2147 |
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III. Other Information
Annual Financial Report for the year 2025 – Section III.
Other Information as of and for the year ended 31 December 2025
1)
Development of the EP Infrastructure, a.s. Group ("EPIF Group" or “Group”)
Recent developments and key events for EPIF Group
Following the transitional year of 2024, the natural gas market in 2025 moved toward looser fundamentals as a
surge in global LNG production began easing the supply shocks experienced in previous years. Global gas demand
growth slowed to less than 1% in 2025, a marked deceleration from the previous year driven by a weaker
macroeconomic environment and relatively high spot LNG prices during the first half of the year. However, the
global market remained fragile and sensitive to weather impacts; notably, a mid-November cold spell across
Europe caused daily residential and commercial gas demand to surge by over 70%, highlighting the continued
importance of gas for security of heat supply.
In OECD Europe, natural gas consumption rose by 3% (approximately 12 bcm) in 2025, marking its strongest
increase since 2021. This growth was primarily concentrated in the first quarter and driven by an 11% surge in
gas-to-power generation. This increase was necessary to compensate for a 12% drop in hydropower and a 1%
decline in wind output, which more than offset a 24% rise in solar generation. In contrast, industrial gas use fell
by 3% as higher prices led to reduced consumption in countries like the Netherlands, France, and Spain. Despite
steady injections during the summer, European storage levels entered the 2025/26 winter at approximately 13%
below 2024 levels, missing the EU’s 90% fill target and ending the year at their second-lowest level in over a
decade.
The European supply mix underwent a significant structural shift on 1 January 2025 with the interruption of
Russian gas flows via Ukraine (the Brotherhood pipeline) following the expiration of the transit agreement. This
contributed to a 45% decline in Russian piped deliveries to the EU, which now account for only 8% of total
European gas demand. To reinforce these efforts, the EU presented a REPowerEU Roadmap in May 2025 and
reached a legally binding agreement in December 2025 to fully phase out all Russian gas imports by November
2027 at the latest. While piped imports fell, LNG imports hit an all-time high of over 175 bcm, with the United
States providing nearly 60% more LNG than in 2024 and accounting for almost all incremental growth.
In response to these shifting flows and the changing role of transit infrastructure, a new transmission tariff
structure became effective in Slovakia at the start of 2025, significantly improving earnings from domestic gas
flows and providing more predictable cash flows with better credit quality. Consequently, Eustream has evolved
into a predominantly regulated TSO focused on servicing the domestic Slovak market and supporting
neighbouring countries.
Furthermore, on 31 March 2025, the Group divested its 100% interest in two CHPs, Elektrárny Opatovice and
United Energy, along with other non-core entities to the broader EP Group. This strategic disposal reinforces the
focus on infrastructure assets that are predominantly regulated or long-term contracted. Following this divestment,
the Group's near-term decarbonization activities are now concentrated primarily in Plzeňská teplárenská, where
lignite-based units will be phased out and replaced by biomass, waste-to-energy, and hydrogen-ready CCGT
technology. These projects are supported by approved investment subsidies from the EU Modernization Fund and
15-year cogeneration subsidies, which provide stability against fluctuating power spreads while ensuring the
continued delivery of heat under long-term contract.
Expected development for the EPIF Group
The European gas market in 2026 is set to be defined by an "unfolding LNG wave" as global supply growth
accelerates to its fastest pace since 2019. While the total halt of Russian gas transit via Ukraine from January 2025
has already reshaped regional supply routes, the arrival of significant new liquefaction capacity, primarily from
North America, is expected to further ease market fundamentals. Despite this improving supply outlook, the
market remains sensitive to geopolitical tensions and weather-driven demand spikes, which may continue to cause
periods of price volatility.
1
Based on IEA’s Gas Market Report, Q1 2026 available at https://www.iea.org/reports/gas-market-report-q1-2026
Annual Financial Report for the year 2025 – Section III.
Other Information as of and for the year ended 31 December 2025
European gas inventories started 2026 at a challenging level, remaining at a deficit of approximately 14%
compared to the previous year. This inventory gap, combined with higher piped gas export requirements to
Ukraine, is expected to drive a record-high demand for LNG imports to Europe, projected to exceed 185 bcm in
2026. Consequently, the need for robust storage injections during the summer remains a priority for regional
supply security, even as natural gas demand in OECD Europe is forecast to decline by 2% due to the continued
expansion of renewable energy and the strategic objectives of the REPowerEU plan to permanently reduce
reliance on fossil fuels.
For the Group’s infrastructure assets, the focus remains on leveraging its reshaped business model to ensure long-
term stability and energy security. By streamlining the portfolio to focus on high-quality, regulated, and long-
term contracted infrastructure, the Group is well-positioned to manage current market dynamics. Gas
Transmission is forecast to further stabilize its operations around evolving supply patterns, as the Group continues
to replace traditional Russian transit with growing LNG reliance and alternative pipeline routes. Gas Storage is
expected to remain a critical asset for supply security in a potentially volatile market, despite relatively weak
summer-winter spreads, a role confirmed by the new storage regulations in Slovakia. Meanwhile, Gas and Power
Distribution continue to deliver steady performance anchored by a stable regulatory environment.
In the Heat Infra segment, the Group is actively executing its decarbonization strategy through focused investment
in Plzeňská teplárenská. This transformation involves the phased replacement of lignite-based generation with a
modern mix of biomass, waste-to-energy, and hydrogen-ready CCGT technology. These strategic projects,
supported by 15-year cogeneration subsidies, are central to the Group’s transition to modern, low-carbon energy
solutions while ensuring the continued delivery of heat under long-term contracts.
EPIF appears well-positioned to navigate these ongoing challenges, leveraging its resilient infrastructure, stable
regulatory environment, and strategic market adaptation to maintain energy security in Central Europe. While
prudent financial policies further anchor the Group’s position, supply and demand uncertainties persist globally,
contributing to potential price fluctuations. Factors such as geopolitical developments and shifting weather
patterns may lead to deviations from the current outlook, but EPIF’s management remains agile, continuously
monitoring the landscape to ensure continued resilience and operational stability.
Other information about subsequent events that occurred after the reporting date
Except for the subsequent events described in the Note 32 of Consolidated Financial Statements as of and for the
year ended 31 December 2025, EPIF´s management is not aware of any additional subsequent events that occurred
after the reporting date.
2)
Management and Governance
EPIF has a two-tier management structure consisting of its board of directors (the “Board of Directors”) and its
supervisory board (the “Supervisory Board”). The Board of Directors represents EPIF in all matters and is charged
with its day-to-day business management (together with the Senior Management), while the Supervisory Board
is responsible for the supervision of EPIF’s activities and of the Board of Directors in its management and resolves
on matters defined in the Czech Corporations Act and the Articles of Association. The Supervisory Board does
not make management decisions.
The Audit Committee is established as a separate corporate body of the Company responsible for performance of
controlling functions in the field of audit (both internal and external including statutory) and accounting.
The Risk Committee is responsible for overseeing risk management policies and practices of the Group’s
operations, implementing a monitoring compliance with the Group’s risk management procedures and risk control
infrastructure.
The Safety, Health and Environmental Committee is responsible for developing and overseeing of health and
safety policies and procedures, improving work health and safety environment within the Group’s operations, and
monitoring compliance with Group’s health and safety policies. In addition, the Safety, Health and Environmental
Committee monitors physical climate risks associated with more extreme and frequent weather events and review
the related adaptation measures.
Annual Financial Report for the year 2025 – Section III.
Other Information as of and for the year ended 31 December 2025
The Green Finance Committee is responsible for selecting and evaluating projects eligible for green financing
under the EPIF’s Green Finance Framework.
General Meeting
The shareholders have put in place a strong corporate governance regime that is implemented both in the EPIF’s
articles of association and in the EPIF Shareholders’ Agreement, which, among other things, sets forth certain
reserved matters requiring a qualified majority decision.
The General Meeting is the supreme body of the Company. Each shareholder has a right to attend and vote during
the General Meeting. The competencies of the General Meeting are sets forth in the Articles of Association of the
Company.
Senior Management
The senior management of the Group consists of the CEO, the CFO, the Director of Financing and four segment
directors.
Václav Paleček
CFO
Mr. Paleček has been overseeing the financial management and strategic planning of the Company since
1 June 2020. He has been with the EPH group since 2014. He is a member of several committees, including the
Risk Committee and Green Finance Committee, Safety, Health and Environmental Committee and
SPP Infrastructure, a.s. Audit Committee. He also serves on the boards of EOP Distribuce, a.s., Stredoslovenská
energetika, a.s., and POWERSUN a.s., among others, and is a member of the supervisory board of EP Energy,
a.s. and of Plzeňská teplárenská, a.s.
In his previous role as the Head of Group Controlling and Financial Reporting in EP Power Europe, a.s., Mr.
Paleček established a central controlling function and introduced a new group-wide reporting tool. Before joining
EPH, Mr. Paleček spent five years at KPMG, focusing on financial reporting under IFRS, US GAAP and Czech
accounting standards. His portfolio of clients included energy, utility, telco and automotive sectors.
Mr. Paleček holds a master’s degree in economics from the University of Economics in Prague, is a fellow of
Association of Chartered Certified Accountants (ACCA) and holds an Advanced Diploma in Accounting and
Business.
With over 15 years of experience in corporate finance, Mr. Paleček has led or participated in significant projects
involving M&A, corporate restructuring, refinancing, cooperation with credit rating agencies or ESG initiatives
in EPIF. He also oversees the financial management and strategic planning of the Group, ensuring compliance
with regulatory requirements, managing financial risks, and driving ESG initiatives.
Peter Ďurík
Director of Financing
Mr. Ďurík has been the Director of Financing since February 2024.
Mr. Ďurík is also Director of Financing of EPH and holds other positions outside of the Group. He has been
employed in the EPH group since August 2015. Mr. Ďurík also serves on the Company’s Risk committee and
Green Finance Committee. Since 2015, as part of the Group, Mr. Ďurík worked on many of the Group’s financing
transactions. Mr. Ďurík subsequently participated in designing the financing strategies of the Group and EPH,
including its subsidiaries. The scope of Mr. Ďurík practice covers bank debt, bonds, working capital lines, rating
and all related activities, including managing the legal streams in cooperation with legal teams. Apart from
financing, Mr. Ďurík actively participates in the Group’s risk management and its ESG initiatives. Mr. Ďurík
holds a master’s degree in finance from the University of Economics in Prague.
Tomáš Mareček
Annual Financial Report for the year 2025 – Section III.
Other Information as of and for the year ended 31 December 2025
Director of the Gas Transmission Business
Mr. Mareček has been the Director of Gas Transmission Business since 24 January 2013. He also serves as
chairman of the board of directors of eustream, a.s. since 2013.
Mr. Mareček is also a member of the board of directors of Košík Holding a.s.; managing director of MFresh
Holding 1 s.r.o.; and a member of the supervisory board of Košík.cz s.r.o.
Mr. Mareček has more than 15 years of experience and in his previous roles he also served in the supervisory
board of EP Industries, a.s. and held the positions of senior analyst of mergers and acquisitions at J&T and
financial officer at Kablo Vrchlabí a.s.
Mr. Mareček holds a master’s degree in finance from the University of Economics in Prague.
David Onderek
Director of the Heat Infra Business
Mr. Onderek has been the Director of the Heat Infra Business since 9 May 2016.
Mr. Onderek has also been the director of heat and cogeneration division and the head of investment committee
of EP Energy since March 2013.
Mr. Onderek is also a chairman of the board of directors of United Energy a.s., Severočeská teplárenská, a.s. and
Elektrárny Opatovice a.s., a member of the board of directors of Plzeňská teplárenská a.s., EP Sourcing, a.s. and
EP Cargo a.s. ; a managing director of AISE, s.r.o. He also serves on the boards of several companies that are
affiliated with EPIF.
Mr. Onderek has more than 20 years of experience and prior to joining the Group he worked as the head of
portfolio development at ČEZ, a.s., a leading Czech energy company.
Mr. Onderek holds a M.Sc. degree in management of power generation and distribution from the Faculty of
Electrical Engineering of the Czech Technical University in Prague and a master of business administration degree
from the University of Pittsburgh.
František Čupr
Director of Gas and Power Distribution Business
Mr. Čupr is the Director of Gas and Power Distribution Business since 2 January 2013. He also serves as chairman
of the board of directors of Stredoslovenská distribučná, a.s. and SPP - distribúcia, a.s. since 2013. He also serves
on the Company’s Risk committee.
Mr. Čupr is also a chairman of the board of directors of SPP Infrastructure, a. s. and ACS PROPERTIES, a.s.,
vice-chairman of AC Sparta Praha fotbal, a.s.; a member of the board of directors of EP Sport Holdings, a.s.,
1890s holdings a.s.; and manager responsible predominantly for renewable energy sources.
Mr. Čupr has more than 20 years of experience in the business.
Mr. Čupr holds a master’s degree in economics from the Faculty of Business and Economics of the Mendel
University in Brno and a master of business administration from the Nottingham Trent University.
Martin Bartošovič
Director of Gas Storage Business
Mr. Bartošovič is the Director of Gas Storage Business since 9 May 2016. Mr. Bartošovič is also chairman of the
Board of Directors of NAFTA a.s.
Prior to joining the Company, Mr. Bartošovič held the position of a member of the board of directors of SPP -
distribúcia, a.s. and the position of division director of Slovenský plynárenský priemysel, a. s. Prior to that, he
Annual Financial Report for the year 2025 – Section III.
Other Information as of and for the year ended 31 December 2025
worked for six years at A.T. Kearney, a leading global management consulting firm and for two years at ING
Bank, a leading international bank.
Mr. Bartošovič has more than 20 years of experience in the energy industry in addition to the background in
management consulting and banking. Prior to joining the Group, he held various positions at A.T. Kearney and
ING Barings with focus on strategy, restructuring, post-merger-integration and mergers and acquisitions.
Mr. Bartošovič holds a Dipl. Ing. degree in corporate finance from the Faculty of Economics and Finance at the
Slovak Agricultural University and took part in several study programs at the West Virginia University, University
of Delaware and Cornell University.
Board of Directors
The Board of Directors has seven members. Members of the Board of Directors are elected by the EPIF’s general
meeting of shareholders (the “General Meeting”) for a term of office of three years. Re-election of the members
of the Board of Directors is permitted. Members of the Board of Directors are obliged to discharge the office with
the necessary loyalty as well as the necessary knowledge and care and to bear full responsibility for such tasks,
as required by the Czech Corporations Act.
The Board of Directors is the EPIF’s statutory body, which directs its operations and acts on its behalf. No-one is
authorised to give the Board of Directors instructions regarding the business management of the EPIF, unless the
Czech Corporations Act or other laws or regulations provide otherwise. The powers and responsibilities of the
Board of Directors are set forth in detail in the Articles of Association. The Board of Directors meets regularly,
usually once a month.
The members of the Board of Directors are engaged in the daily management of the Company and authorised to
decide on the business management of the Company or its parts. Responsibilities for daily management of
principle business activities of the Company are allocated to appropriate members of the Board of Directors based
on their primary business focus and expertise. Each member of the Board of Directors is obliged to inform the
Board of Directors how the Company’s affairs are managed. The responsibility for decisions about the basic focus
of business management and basic focus of supervision over the Company’s activities rests with all members of
the Board of Directors and the separation of powers between members of the Board of Directors does not release
the other members of the Board of Directors from the equal responsibility for all decisions of the Board of
Directors, or obligation to supervise how the Company’s affairs are managed.
The Board of Directors constitutes a quorum if at least six directors are present at the meeting. In accordance with
the EPIF’s articles of association, if a Board of Directors meeting fails to constitute a quorum, there shall be an
adjourned meeting within one week after the original meeting (or on another date agreed by the Chairman and
both Vice-Chairmen), where the same quorum requirement will apply. If this first adjourned meeting also fails to
constitute a quorum, there shall be a second adjourned meeting on or after the next business day following the
first adjourned meeting, where the presence of at least four directors will constitute a quorum. Decisions of the
Board of Directors are made by simple majority vote of all the members of the Board of Directors. Each member
of the Board of Directors has one vote. With the consent of all members, per rollam voting is also allowed.
Annual Financial Report for the year 2025 – Section III.
Other Information as of and for the year ended 31 December 2025
Members of the Board of Directors
Daniel Křetínský
Chairman of the Board of Directors
Mr. Křetínský has been the Chairman of the Board of Directors since December 2013.
Mr. Křetínský was involved through his role as a partner in the J&T Group in the founding of EPH, the EPIF’s
parent company, where he has served as Chairman of the Board of Directors since 2009 and currently is also the
majority owner of EPH. Mr. Křetínský serves on the boards of several companies that are affiliated with EPIF,
including its parent company EPH, and its sister company EP Investment Advisors, s.r.o. He also holds positions
at companies unaffiliated to EPIF, including Chairman of the Board of AC Sparta Praha fotbal, a.s.
Mr. Křetínský holds a bachelor’s degree in political science as well as a master’s degree and a doctorate in law
from Masaryk University in Brno.
Gary Wheatley Mazzotti
Vice-chairman of the Board of Directors and Chief Executive Officer
Mr. Mazzotti has been a member and Vice -Chairman of the Board of Directors since June 2017, and the Chief
Executive Officer since August 2021. He also serves on the Company’s Audit Commitee, Risk Committee, Green
Finance Committee and Safety, Health and Environmental Committee.
Mr. Mazzotti is also a member of the board of directors of United Energy, a.s., EOP Distribuce, a.s., Severočeská
teplárenská, a.s., EP Power Europe, a.s. and a member of the supervisory board of NAFTA a.s., SPP - distribúcia,
a.s., Stredoslovenská distribučná, a.s. . and Plzeňská teplárenská, a.s.
Mr. Mazzotti has more than 30 years of experience in finance and operations, having joined the Company from
Vienna Insurance Group where he was a member of the board and chief financial officer of Kooperativa
pojišťovna, a.s., Vienna Insurance Group and Česká podnikatelská pojišťovna, a.s., Vienna Insurance Group and
was responsible for VIG groups operations in Ukraine. Prior to this Mr. Mazzotti held the positions of senior
investment director and chief financial officer of PPF Private Equity Division as well as chief financial officer
and chief operating officer of AAA Auto a.s.
Mr. Mazzotti graduated in economics from the University of Reading in the United Kingdom, and is also
a member of the Institute of Chartered Accountants (ACA).
Stéphane Brimont
Vice-chairman of the Board of Directors
Stéphane Brimont is a representative of CEI Investments S.à r.l., a consortium managed by Macquarie Asset
Management (MAM), which owns a 31% stake in EPIF.
Mr. Brimont has been a member of the Board of Directors since February 2017 with a short break in 2020 and
2021, he was reappointed in November 2021 as a Vice-chairman. Mr. Brimont is the head of MAM’s French and
Benelux operations and is also a director of MEIF Power Romania, Hedno, Reden and APEX Energies and
Renewi. He began his career with the French government where he spent a total of eight years. In 2004, he joined
Gaz de France as chief strategy officer and became their chief financial officer in 2007. Following the integration
of Gaz de France and Suez, Mr. Brimont moved into a general management role in charge of GDF SUEZ Energy
Europe business
Mr. Brimont graduated from École Polytechnique and the École Nationale des Ponts et Chaussées, France.
Annual Financial Report for the year 2025 – Section III.
Other Information as of and for the year ended 31 December 2025
Pavel Horský
Member of the Board of Directors
Mr. Horský has been a member of the Board of Directors since December 2013.
Mr. Horský is a member of the board of directors of EPH and chief financial officer of EPH and holds a number
of other positions within the Group as well as outside the Group. At the same time, Mr. Horský serves as a member
of the Company’s Risk committee. Prior to joining the Company, Mr. Horský held a market risk advisory position
at the Royal Bank of Scotland.
Mr. Horský serves on boards of directors and supervisory boards of several of EPH’s subsidiaries and affiliates,
including EP Infrastructure a.s. and EP Power Europe a.s.
Marek Spurný
Member of the Board of Directors
Mr. Spurný has been a member of the Board of Directors since December 2013. Currently, Mr. Spurný is the chief
legal counsel and a member of the board of directors of EPH and serves on multiple boards of companies within
the Group, as well as outside the Group.
Prior to joining EPIF, Mr. Spurný held various positions within EPH, its subsidiaries and the J&T Group (prior
to the formation of EPH). Between 1999 and 2004, Mr. Spurný worked for the Czech Securities Commission (the
capital markets supervisory body at that time).
His background is legal. As such, he holds the position of Chief Legal Counsel of the Group, with main
responsibilities for transaction execution, negotiations and implementation of merger and acquisition transactions,
restructurings, and legal support in general. Mr. Spurný holds several positions in the corporate bodies of the
group companies on the parent holding levels (member of the boards of directors of EPH), as well as the
subsidiaries of EPH group, including subsidiaries in EPIF. Before joining the group, Mr. Spurný had been working
for five years for the Czech Securities Commission, the former capital markets regulatory authority in the Czech
Republic.
Mr. Spurný holds a law degree from Palacky University in Olomouc.
William Price
Member of the Board of Directors
William Price is a representative of CEI Investments S.à r.l., a consortium managed by Macquarie Asset
Management (MAM), which owns a 31% stake in EPIF.
Mr. Price has been a member of the Board of Directors since October 2020. Before October 2020, he was a
member of the Supervisory Board since February 2017 and its Vice Chairman since June 2017. Mr. Price is also
a member of the board of directors of EP Energy, a.s.
Mr. Price has over 15 years of experience in infrastructure investment and management, primarily in the utilities
and energy sector. This experience is primarily across the UK, Germany and Central Europe.
He also holds non-executive board positions at various other MAM-managed investments.
Mr. Price holds a bachelor’s degree in economics and politics from the University of Bristol and a master of
finance degree from INSEAD Business School.
Milan Jalový
Member of the Board of Directors
Mr. Jalový has been a member of the Board of Directors since February 2017.
Annual Financial Report for the year 2025 – Section III.
Other Information as of and for the year ended 31 December 2025
Mr. Jalový holds the position of controlling director at EP Power Europe, a.s., and is the head of analytical team
at EPH. He has been working within the EPH group since its establishment.
Mr. Jalový is also a managing director of LEAG GmbH and EP Mehrum GmbH, a member of the supervisory
board of EP Energy a.s., Heureka Group a.s., Lausitz Energie Bergbau AG and Lausitz Energie Kraftwerke AG.
Mr. Jalový holds a master’s degree from the University of Economics in Prague and also the CEMS MIM degree.
Supervisory Board
The Supervisory Board has six members elected by the General Meeting. Members of the Supervisory Board are
elected for a three year term and may be re-elected.
The Supervisory Board is responsible for the supervision of activities of EPIF and of the Board of Directors in its
management of EPIF and resolves on matters defined in the Czech Corporations Act and the Articles of
Association. The Supervisory Board’s powers include the power to inquire into all documents concerned with the
activities of the EPIF, including inquiries into the EPIF’s financial matters, review of the financial statements and
profit allocation proposals.
No-one is authorised to give the Supervisory Board instructions regarding their review of the Board of Directors
in its management of EPIF. The Supervisory Board shall adhere to the principles and instructions as approved by
the General Meeting of shareholders, provided these are in compliance with legal regulation and the Articles of
Association.
The Supervisory Board constitutes a quorum if at least five members are present at the meeting. In accordance
with the EPIF’s articles of association, if a Supervisory Board meeting fails to constitute a quorum, there shall be
an adjourned meeting within one week after the original meeting (or on another date agreed by the Chairman and
the Vice-Chairman), where the same quorum requirement will apply. If this first adjourned meeting also fails to
constitute a quorum, there shall be a second adjourned meeting on or after the next business day following the
first adjourned meeting, where the presence of at least four Supervisory Board members will constitute a quorum.
Decisions of the Supervisory Board are made by simple majority vote of all Supervisory Board members. Each
Supervisory Board member has one vote. With the consent of all members, per rollam voting is also allowed.
Members of the Supervisory Board as at 31 December 2025 were:
Jan Špringl (chairman)
Martin Gebauer (vice-chairman)
Petr Sekanina (member)
Jiří Feist (member)
Jan Stříteský (member)
Viktor Schuh (member)
Audit Committee
The Audit Committee’s authority and responsibilities are determined by the Czech Act No. 93/2009 Coll., on
Auditors, as amended (the “
Czech Auditors Act
”) and the Articles of Association as well as the Terms of
Reference approved by the General Meeting. The Audit Committee mainly oversees the financial reporting and
risk management of the Company and reviews internal financial controls (including internal audit) and the process
of statutory audit of the Company. The Audit Committee makes recommendations in respect of selection of
external auditor and its remuneration, as well as in respect of policy for awarding non-audit services to external
auditor.
The Audit Committee has three members. Meetings of the Audit Committee are held not less than two times in
each financial year. With the consent of all members,
per rollam
informs the Board of Directors and Supervisory Board about its activities and, with respect to areas within its
Annual Financial Report for the year 2025 – Section III.
Other Information as of and for the year ended 31 December 2025
remit, submits recommendations to the Supervisory Board as it deems appropriate. The Audit Committee adopts
a decision by a majority vote of all its members. The quorum for a meeting of the Audit Committee is a simple
majority of all its members.
Members of the Audit Committee as at 31 December 2025 were:
Václav Moll (chairman)
Gary Wheatley Mazzotti (member)
Jakub Šteinfeld (member)
Risk Committee
EPIF approaches the risk management with due diligence. Market, credit, operational and business risks are
continuously identified and evaluated in terms of the probability of occurrence and extent of possible damage and
reported to the internal Risk Management Committee. The Risk Committee is an advisory body to the Board of
Directors and submits regular reports to the Board of Directors. Existing risks are continuously monitored and
updated. The committee's scope includes, in particular, discussing the Group's identified risks and approving their
management strategy. The Committee also regularly evaluates the overall risk situation of the Group. The aim of
the risk management system is to protect the value of the Group while taking on an acceptable level of risk.
Members of the Risk Committee as at 31 December 2025 were:
Michal Buřil (chairman)
Gary Wheatley Mazzotti (member)
Pavel Horský (member)
Peter Ďurík (member)
Václav Paleček (member)
František Čupr (member)
Jana Cínová (member)
Safety, Health and Environmental Committee
The Safety, Health and Environmental Committee is responsible for developing and overseeing of health and
safety policies and procedures improving work health and safety environment within the Group operations and
monitoring compliance with Group’s health and safety policies. The Safety, Health and Environmental Committee
has seven members. The Safety, Health and Environmental Committee submits regular reports to the Board of
Directors.
Members of the Safety, Health and Environmental Committee as at 31 December 2025 were:
František Kajánek (chairman)
Václav Paleček (member)
Marek Bobák (member)
Martin Kollár (member)
Petr Horák (member)
Tomáš Matula (member)
Gary Wheatley Mazzotti (member)
Green Finance Committee
Annual Financial Report for the year 2025 – Section III.
Other Information as of and for the year ended 31 December 2025
The Green Finance Committee was established in 2023 to select and evaluate projects eligible for green financing
under the EPIF’s Green Finance Framework established in July 2023.
The Members of the
Green Finance Committee as at 31 December 2025 were:
Gary Wheatley Mazzotti (chairman)
Peter Ďurík (member)
Václav Paleček (member)
3)
ESG and sustainability
Throughout 2025, EPIF continued to focus on its performance in the environmental, social and governance
(“ESG”) matters, acknowledging its responsibility for the environment, employees, communities, and all other
stakeholders.
For the year 2025, EPIF reports on its sustainability matters in accordance with the Corporate Sustainability
Reporting Directive. This information is presented in greater detail in the Sustainability statement, which is an
integral part of the EPIF Annual Report.
4)
Other Information
Branches
The EPIF Group has the following organizational units abroad:
●
AISE, s.r.o., organizačná zložka located in Slovakia;
●
EP ENERGY TRADING, a.s., organizačná zložka located in Slovakia
●
EP Cargo a.s., organizačná zložka located in Slovakia
●
Karotáž a cementace s.r.o., organizační složka located in Slovakia
●
NAFTA a.s. – organizační složka located in the Czech Republic
Research and development activities
In 2025, the EPIF Group did not carry out significant research and development activities and as a result did not
incur material research and development costs.
Acquisition of own shares or own ownership interests
During the 2025, the EPIF Group did not acquire any of its own shares or ownership interests within the
Group.
Risk management policies
The EPIF Group’s risk management policies are set out in the notes to the consolidated financial statements.
Annual Financial Report for the year 2025 – Section III.
Other Information as of and for the year ended 31 December 2025
5)
Statutory Declaration by Person Responsible for the EPIF Group 2025 Annual Report
With the use of all reasonable care, to the best of our knowledge the consolidated Annual Report provides in all
material respects a true and accurate view and is not misleading in any material respects view of the financial
situation, business activities, and results of operations of EPIF and its consolidated group for the year 2025 and
of the outlook for the future development of the financial situation, business activities, and results of operations
of EPIF and its consolidated group, and no facts have been omitted that could change the meaning of this report.
In Prague, on 19 March 2026
IV. Report on relations
Annual Financial Report for the year 2025 – Section III.
Report on relations as of and for the year ended 31 December 2025
REPORT ON RELATIONS
between the controlling and controlled entities and on relations between the controlled entity and other entities
controlled by the same controlling entity (related entities)
prepared by the Board of Directors of
EP Infrastructure, a.s.
, (“the Company”) with its registered office at
Pařížská 130/26, Josefov, 110 00 Praha 1, ID No: 024 13 507, in accordance with Section 82 of Act No.
90/2012 Coll., on Business Corporations, as amended
(“
the Report
”)
__________________________________________________
I.
Preamble
The Report has been prepared pursuant to Section 82 of Act No. 90/2012 Coll., the Business
Corporations Act, as amended (“
BCA
”).
The Report has been submitted for review to the Company’s Supervisory Board in accordance with
Section 83 (1) of BCA and the Supervisory Board’s position will be communicated to
the Company’s General Meeting deciding on the approval of the Company’s financial statements and
on the distribution of the Company’s profit or the settlement of its loss.
The Report has been prepared for the 2025 reporting period.
II.
Structure of relations between the entities
CONTROLLED ENTITY
The controlled entity is EP Infrastructure, a.s. with its registered office at Pařížská 130/26, Josefov, 110
00, Praha 1, corporate ID: 024 13 507 recorded in the Commercial Register maintained by the Municipal
Court in Prague, File B, Insert 21608.
DIRECTLY CONTROLLING ENTITIES:
EPIF Investments a.s.
Registered office: Pařížská 130/26, Josefov, 110 00 Praha 1,
Czech Republic
Corporate ID: 057 11 452
INDIRECTLY CONTROLLING ENTITIES:
Energetický a průmyslový holding, a.s.
Registered office: Pařížská 130/26, Josefov, 110 00 Praha 1,
Czech Republic
Corporate ID: 283 56 250
EP Group, a.s.
Registered office: Pařížská 130/26, Josefov, 110 00 Praha 1,
Czech Republic
Corporate ID: 086 49 197
Annual Financial Report for the year 2025 – Section III.
Report on relations as of and for the year ended 31 December 2025
EP Investment S.à r.l.
Registered office: 2 Place de Paris, L – 2314,
Luxembourg, Luxembourg
Reg. No.: B 184488
OTHER CONTROLLED ENTITIES
The structure of relations between the controlling entity EP Investment S.à r.l. and groups
of controlled entities controlled by this controlling entity is specified in Appendix 1 to
the Report. The appendix, therefore, does not include the complete ownership structure
of EP Investment S.à r.l., nor does it include shareholders holding non-controlling interests.
III.
Role of the controlled entity; method and means of control
Role of the controlled entity
●
strategic management of the development of a group of directly or indirectly controlled entities
●
providing financing and developing financing systems for group entities
●
optimising the services utilised/provided in order to improve the entire group’s performance
●
managing, acquiring and treating the Company’s ownership interests and other assets
Method and means of control
The controlling entities hold a majority share of voting rights in EP Infrastructure, a.s. over which they
exercise a controlling influence.
IV.
Overview of acts made in 2025 pursuant to Section 82 (2) (d) of Act No. 90/2012
Coll., the Business Corporations Act
In 2025, no actions were taken at the initiative or in the interest of the controlling entity in respect of
assets exceeding 10% of the controlled entity’s equity as determined from the most recent financial
statements with the exception of the declaration and payment of dividends.
V.
Overview of agreements concluded by EP Infrastructure, a.s. pursuant to Section
82 (2) (d) of Act No. 90/2012 Coll., the Business Corporations Act
In 2025, the following loan agreements concluded by companies in the EP Infrastructure, a.s.
Group were effective:
On 30 June 2023, a loan agreement was signed between EP Infrastructure, a.s. as the creditor and
Elektrárny Opatovice, a.s. as the debtor.
Annual Financial Report for the year 2025 – Section III.
Report on relations as of and for the year ended 31 December 2025
In 2025, the following agreements on the assignment of receivables and the set-off of receivables
and liabilities concluded by companies in the EP Infrastructure, a.s. Group were effective:
On 31 March 2025, an Agreement on the Assignment of Receivables was entered into between EP
Infrastructure, a.s. and EP Energy, a.s.
On 31 March 2025, an Agreement on a Capital Contribution in excess of the Registered Capital was
entered into between EP Infrastructure, a.s. and EP Energy, a.s.
On 31 March 2025, an Agreement on the Set-off of Mutual Receivables was entered into between EP
Infrastructure, a.s. and EP Energy, a.s.
On 1 August 2025, an Agreement on the Set-off of Mutual Receivables was entered into between EP
Infrastructure, a.s. and EP Energy, a.s.
In 2025, the following operating contracts concluded by companies in
the EP Infrastructure, a.s. Group were effective:
Professional Services Agreement signed between AISE, s.r.o. and EP Infrastructure, a.s.
on 12 April 2022.
Data Processing Agreement signed between AISE, s.r.o. and EP Infrastructure, a.s.
on 12 April 2022.
Professional Services Agreement signed between Alternative Energy, s.r.o.
and EP Infrastructure, a.s. on 12 April 2022.
Data Processing Agreement signed between Alternative Energy, s.r.o.
and EP Infrastructure, a.s. on 12 April 2022.
Professional Services Agreement signed between ARISUN, s.r.o. and EP Infrastructure, a.s.
on 12 April 2022.
Data Processing Agreement signed between ARISUN, s.r.o. and EP Infrastructure, a.s.
on 12 April 2022.
Professional Services Agreement signed between Dobrá Energie s.r.o.
and EP Infrastructure, a.s. on 12 April 2022.
Professional Services Agreement, including effective amendments, signed between
Elektrárny Opatovice, a.s. and EP Infrastructure, a.s. on 12 April 2022.
Data Processing Agreement signed between Elektrárny Opatovice, a.s.
and EP Infrastructure, a.s. on 6 September 2022.
Professional Services Agreement signed between EOP Distribuce, a.s.
and EP Infrastructure, a.s. on 12 April 2022.
Professional Services Agreement signed between EP Cargo a.s. and EP Infrastructure, a.s.
on 12 April 2022.
Data Processing Agreement signed between EP Cargo a.s. and EP Infrastructure, a.s.
on 12 April 2022.
Annual Financial Report for the year 2025 – Section III.
Report on relations as of and for the year ended 31 December 2025
Professional Services Agreement signed between EP Energy, a.s.
and EP Infrastructure, a.s. on 12 April 2022.
Data Processing Agreement signed between EP Energy, a.s. and EP Infrastructure, a.s.
on 12 April 2022.
Professional Services Agreement signed between EP ENERGY TRADING, a.s.
and EP Infrastructure, a.s. on 12 April 2022.
Data Processing Agreement signed between EP ENERGY TRADING, a.s.
and EP Infrastructure, a.s. on 1 October 2018.
Professional Services Agreement signed between EP Sourcing, a.s. and EP Infrastructure, a.s. on 12
April 2022.
Data Processing Agreement signed between EP Sourcing, a.s. and EP Infrastructure, a.s.
on 12 April 2022.
Professional Services Agreement signed between NAFTA Speicher GmbH & Co. KG
and EP Infrastructure, a.s. on 12 April 2022.
Professional Services Agreement signed between Plzeňská teplárenská a.s.
and EP Infrastructure, a.s. on 12 April 2022.
Data Processing Agreement signed between Plzeňská teplárenská a.s.
and EP Infrastructure, a.s. on 14 September 2022.
Data Processing Agreement signed between Plzeňská teplárenská a.s. and EP Infrastructure, a.s. on 6
September 2022.
Professional Services Agreement signed between POWERSUN a.s. and EP Infrastructure, a.s. on 12
April 2022.
Data Processing Agreement signed between POWERSUN a.s. and EP Infrastructure, a.s.
on 12 April 2022.
Professional Services Agreement signed between POZAGAS a.s. and EP Infrastructure, a.s.
on 12 April 2022.
Data Processing Agreement signed between POZAGAS a.s. and EP Infrastructure, a.s.
on 12 April 2022.
Professional Services Agreement, as amended, signed between Severočeská teplárenská, a.s., and EP
Infrastructure, a.s. on 12 April 2022.
Data Processing Agreement signed between Severočeská teplárenská, a.s.
and EP Infrastructure, a.s. on 1 October 2018.
Professional Services Agreement signed between SPP Storage, s.r.o. and EP Infrastructure, a.s. on 12
April 2022.
Data Processing Agreement signed between SPP Storage, s.r.o. and EP Infrastructure, a.s.
on 9 June 2022.
Annual Financial Report for the year 2025 – Section III.
Report on relations as of and for the year ended 31 December 2025
Confidentiality Agreement signed between Stredoslovenská energetika Holding, a.s.
and EP Infrastructure, a.s. on 2 November 2021.
Professional Services Agreement signed between Triskata, s.r.o. and EP Infrastructure, a.s.
on 12 April 2022.
Data Processing Agreement signed between Triskata, s.r.o. and EP Infrastructure, a.s.
on 12 April 2022.
Professional Services Agreement signed between United Energy, a.s. and EP Infrastructure, a.s. on 12
April 2022.
Data Processing Agreement signed between United Energy, a.s. and EP Infrastructure, a.s. on 1 October
2018.
Data Processing Agreement signed between United Energy, a.s. and EP Infrastructure, a.s. on 6
September 2022.
Professional Services Agreement signed between VTE Pchery, s.r.o. and EP Infrastructure, a.s. on 12
April 2022.
Data Processing Agreement signed between VTE Pchery, s.r.o. and EP Infrastructure, a.s.
on 12 April 2022.
Cooperation Agreement signed between EOP Distribuce, a.s., United Energy, a.s., Plzeňská teplárenská,
a.s. and EP Infrastructure, a.s. on 14 December 2022.
In 2025, the following other contracts concluded by companies in
the EP Infrastructure, a.s. Group were effective:
On 1 March 2022, a Master Agreement on the Provision of Guarantees was signed between
EP ENERGY TRADING, a.s. and EP Infrastructure, a.s.
On 1 October 2022, a Master Agreement on the Provision of Guarantees was signed between EP Energy,
a.s. and EP Infrastructure, a.s.
On 7 December 2022, an Agreement on the Distribution of Cash-Pool Benefits under
a Real Mutual Cash-Pooling Arrangement for an Economically Related Group was signed between EP
Infrastructure, a.s., EP Energy, a.s., United Energy, a.s.,
EP ENERGY TRADING, a.s., Elektrárny Opatovice, a.s., EP Sourcing, a.s., EP Cargo a.s.
and AISE, s.r.o.
On 30 April 2024, an Agreement on the Distribution of Cash-Pooling Benefits within the NBL Flexi
Online Real Cash Pooling for an Economically Related Group was signed between EP Infrastructure,
a.s., EP Energy, a.s., United Energy, a.s., EP Cargo a.s., AISE, s.r.o., EP ENERGY TRADING, a.s., EP
Sourcing, a.s., Elektrárny Opatovice, a.s., Severočeská teplárenská, a.s., PT měření, a.s., EOP Distribuce,
a.s., and Dobrá Energie s.r.o.
On 16 September 2024, a Framework Agreement on the Provision of Guarantees was signed between
EP Infrastructure, a.s. and Plzeňská teplárenská, a.s.
On 18 September 2024, a Framework Agreement on the Provision of Guarantees was signed between
EP Infrastructure, a.s. and United Energy, a.s.
Annual Financial Report for the year 2025 – Section III.
Report on relations as of and for the year ended 31 December 2025
On 18 September 2024, a Framework Agreement on the Provision of Guarantees was signed between
EP Infrastructure, a.s. and Elektrárny Opatovice, a.s.
On 18 December 2024, a Request for the Accession of a New Party to the Agreement on the Distribution
of Cash-Pooling Benefits within the Real Bilateral Cash Pooling for an Economically Related Group
was signed between EP Infrastructure, a.s. and Plzeňská teplárenská, a.s.
On 18 December 2024, a Request for the Accession of a New Party to the Agreement on the Distribution
of Cash-Pooling Benefits within the NBL Flexi Online Real Cash Pooling for an Economically Related
Group was signed between EP Infrastructure, a.s. and Plzeňská teplárenská, a.s.
On 31 December 2025, a Framework Agreement on the Provision of Guarantees was entered into
between Severočeská teplárenská, a.s. and EP Infrastructure, a.s.
On 31 December 2025, a Framework Agreement on the Provision of Guarantees was entered into
between EOP Distribuce, a.s. and EP Infrastructure, a.s.
In 2025, the following operating contracts concluded by companies in
the Energetický a průmyslový holding, a.s. Group were effective:
Professional Services Agreement signed between EP Investment Advisors, s.r.o.
and EP Infrastructure, a.s. on 28 February 2022.
Data Processing Agreement signed between EP Investment Advisors, s.r.o.
and EP Infrastructure, a.s. on 28 February 2022.
Sublease Agreement signed between EP Investment Advisors, s.r.o. and EP Infrastructure, a.s. on 15
June 2017, including all amendments.
Professional Services Agreement signed between EP Slovakia B.V. and EP Infrastructure, a.s. on 3 April
2017.
Professional Services Agreement signed between Energetický a průmyslový holding, a.s.
as the provider and EP Infrastructure, a.s. as the client on 12 April 2022.
Professional Services Agreement signed between Energetický a průmyslový holding, a.s.
as the client and EP Infrastructure, a.s. as the provider on 12 April 2022.
Data Processing Agreement signed between Energetický a průmyslový holding, a.s.
and EP Infrastructure, a.s. on 12 April 2022.
Professional Services Agreement signed between EP Power Europe, a.s. as the provider
and EP Infrastructure, a.s. as the client on 14 February 2022.
Professional Services Agreement signed between EP Power Europe, a.s. as the client
and EP Infrastructure, a.s. as the provider on 12 April 2022.
Data Processing Agreement signed between EP Power Europe, a.s. and EP Infrastructure, a.s. on 12
April 2022.
VI.
We hereby confirm that this Report on relations between related entities of EP Infrastructure, a.s.,
prepared pursuant to the provisions of Section 82 of Act No. 90/2012 Coll., the Business Corporations
Annual Financial Report for the year 2025 – Section III.
Report on relations as of and for the year ended 31 December 2025
Act, for the reporting period from 1 January 2025 to 31 December 2025, includes all information known
as at the date of signing this report, regarding:
●
agreements between related entities
●
performance and counter-performance provided to related entities
●
other juridical acts carried out in the interest of related entities and
●
all measures taken or implemented in the interest or at the initiative of related entities
All transactions between EP Infrastructure, a.s. and the controlling entity or entities controlled by the
same entity were concluded at arm’s length. The Board of Directors of EP Infrastructure, a.s. further
declares that EP Infrastructure, a.s. incurred no damage as a result of the actions
of the controlling entity or any entity controlled by the same entity. The contractual and other relations
with related entities resulted in no loss or financial advantage or disadvantage
to EP Infrastructure, a.s.
In Prague, on 19 March 2026
Annual Financial Report for the year 2025 – Section III.
Report on relations as of and for the year ended 31 December 2025
V. Consolidated Financial Statements and Notes to the Consolidated
Financial Statements
EP Infrastructure, a.s.
Consolidated Financial Statements
as of and for the year ended 31 December 2025
Annual Financial Report for the year 2025 – Section V.
Consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2025
Content
Consolidated statement of comprehensive income ................................................................ ............................................................. 1
Consolidated statement of financial position ................................................................ ................................................................ ...... 2
Consolidated statement of changes in equity ................................................................ ................................................................ ...... 3
Consolidated statement of cash flows ................................................................ ................................................................ ................. 5
Notes to the consolidated financial statement ................................................................ ................................................................ ..... 6
1. Background ................................................................ ................................................................ .......................................... 6
2. Basis of preparation ................................................................ ................................................................ ............................. 7
3. Material accounting policies ................................................................ ................................................................ .............. 11
4. Determination of fair values ................................................................ ................................................................ .............. 28
5. Operating segments................................ ................................................................ ............................................................ 30
6. Acquisitions and disposals of subsidiaries, joint-ventures and associates ................................ ......................................... 37
7. Revenues ................................................................ ................................................................ ............................................ 38
8. Purchases and consumables ................................................................ ................................................................ ............... 39
9. Services ................................................................ ................................................................ .............................................. 39
10. Personnel expenses ................................................................ ................................................................ ............................ 40
11. Emission rights ................................................................ ................................................................ .................................. 40
12 Other operating income (expenses), net ................................................................ ............................................................. 41
13. Net finance income (expense) ................................................................ ................................................................ ............ 41
14. Income tax expenses ................................................................................................ .......................................................... 42
15. Property, plant and equipment ................................................................ ................................................................ ........... 45
16. Intangible assets (including goodwill) ................................................................ ............................................................... 48
17. Deferred tax assets and liabilities................................ ................................................................ ....................................... 52
18. Inventories ................................................................ ................................................................ ......................................... 54
19. Trade receivables and other assets ................................................................ ................................................................ ..... 55
20. Cash and cash equivalents ................................................................ ................................................................ ................. 55
21. Equity................................ ................................................................ ................................................................ ................. 56
22. Non-controlling interest ................................................................ ................................................................ ..................... 58
23. Loans and borrowings ................................................................ ................................................................ ........................ 60
24. Provisions ................................................................ ................................................................ .......................................... 67
25. Deferred income ................................................................ ................................................................ ................................ 69
26. Financial instruments ................................................................ ................................................................ ......................... 70
27. Trade payables and other liabilities ................................ ................................................................ ................................... 73
28. Commitments and contingencies ................................................................ ................................................................ ....... 73
29. Leases ................................................................ ................................................................ ................................................ 74
30. Risk management ................................................................ ................................................................ ............................... 76
31. Related parties ................................................................ ................................................................ ................................... 92
32. Subsequent events ................................................................ ................................................................ .............................. 93
Appendix – Group entities ................................................................ ................................................................ ................................ 94
Annual Financial Report for the year 2025 – Section V.
Consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2025
1
Consolidated statement of comprehensive income | |||
For the year ended 31 December 2025 | |||
In millions of EUR (“MEUR”) | Note | 2025 | 2024 |
Revenues | 7 | ||
Purchases and consumables | 8 | ( | ( |
Subtotal | |||
Services | 9 | ( | ( |
Personnel expenses | 10 | ( | ( |
Depreciation, amortisation and impairment | 15, 16 | ( | ( |
Emission rights, net | 11 | ( | ( |
Own work, capitalized | |||
Other operating income (expenses), net | 12 | ||
Profit from operations | |||
Finance income | 13 | ||
Change in impairment losses on financial instruments and other financial assets | 13 | ||
Finance expense | 13 | ( | ( |
Net finance income (expense) | ( | ( | |
Gain (loss) on disposal of subsidiaries | 6 | ||
Profit before income tax | |||
Income tax expenses | 14 | ( | ( |
Profit for the year | |||
Items that are not reclassified subsequently to profit or loss | |||
Revaluation of property, plant and equipment, net of tax | 15 | ( | |
Items that are or may be reclassified subsequently to profit or loss | |||
Foreign currency translation differences for foreign operations | 14 | ( | |
Effective portion of changes in fair value of cash-flow hedges, net of tax | 14 | ( | |
Other comprehensive income for the year, | ( | ||
Total comprehensive income for the year | |||
Profit attributable to: | |||
Owners of the Company | |||
Non-controlling interest | 22 | ||
Profit for the year | |||
Total comprehensive income attributable | |||
Owners of the Company | |||
Non-controlling interest | |||
Total comprehensive income for the year | |||
Annual Financial Report for the year 2025 – Section V.
Consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2025
2
Consolidated statement of financial position | |||
As at 31 December 2025 | Note | 31 December 2025 | 31 December 2024 |
In millions of EUR (“MEUR”) | (restated) | ||
Assets | |||
Property, plant and equipment | 15 | ||
Intangible assets and goodwill | 16 | ||
Equity accounted investees | |||
Restricted cash | |||
Financial instruments and other financial assets | 26 | ||
Trade receivables and other assets | 19 | ||
Prepayments and other deferrals | |||
Deferred tax assets | 17 | ||
Total non-current | |||
Inventories | 18 | ||
Trade receivables and other assets | 19 | ||
Financial instruments and other financial assets | 26 | ||
Prepayments and other deferrals | |||
Current income tax receivable | |||
Cash and cash equivalents | 20 | ||
Restricted cash | |||
Total current assets | |||
Total assets | |||
Equity | |||
Share capital | 21 | ||
Share premium | |||
Reserves | 21 | ( | ( |
Retained earnings | |||
Total equity attributable to equity holders | |||
Non-controlling interest | 22 | ||
Total equity | |||
Liabilities | |||
Loans and borrowings | 23 | ||
Financial instruments and financial liabilities | 26 | ||
Provisions | 24 | ||
Deferred income | 25 | ||
Contract liabilities | |||
Deferred tax liabilities | 17 | ||
Trade payables and other liabilities | 27 | ||
Total non-current | |||
Trade payables and other liabilities | 27 | ||
Contract liabilities | 7 | ||
Loans and borrowings | 23 | ||
Financial instruments and financial liabilities | 26 | ||
Provisions | 24 | ||
Deferred income | 25 | ||
Current income tax liability | 14 | ||
Total current | |||
Total liabilities | |||
Total equity and liabilities | |||
* As of 31 December 2024 the Contract assets of EUR 135 | |||
Annual Financial Report for the year 2025 – Section V.
Consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2025
3
Consolidated statement of changes in equity | ||||||||||||
For the year ended 31 December 2025 | ||||||||||||
Attributable to owners of the Company | ||||||||||||
In millions of EUR (“MEUR”) | Note | Share capital | Share premium | Reserves | Retained earnings | Total | Non- controlling interest | Total Equity | ||||
Non- distribu- table reserves | Translatio n reserve | Revalua- tion value reserve | Other capital reserves | Hedging reserve | ||||||||
Balance as at 1 January 2025 (A) | ( | ( | ||||||||||
Total comprehensive income for the year: | ||||||||||||
Profit or loss (B) | ||||||||||||
Other comprehensive income: | ||||||||||||
Foreign currency translation differences for foreign operations | 14 | |||||||||||
Revaluation reserve included in other comprehensive income, | 15 | |||||||||||
Effective portion of changes in fair value of cash-flow hedges, net | 14 | |||||||||||
Total other comprehensive income (C) | ||||||||||||
Total comprehensive income for the year (D) = (B + C) | ||||||||||||
Contributions by and distributions to owners: | ||||||||||||
Dividends to equity holders | 21 | ( | ( | ( | ( | |||||||
Transfer to retained earnings | ( | |||||||||||
Total contributions by and distributions to owners | ( | ( | ( | ( | ( | |||||||
Changes in ownership interests in subsidiaries that do not result in loss of control: | ||||||||||||
Effect of disposed entities | 6 | ( | ||||||||||
Total changes in ownership interests in subsidiaries (F) | ( | |||||||||||
Total transactions with owners (G) = (E + F) | ( | ( | ( | ( | ( | |||||||
Balance at 31 December 2025 (H) = (A + D + G) | ( | |||||||||||
Annual Financial Report for the year 2025 – Section V.
Consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2025
4
Consolidated statement of changes in equity | ||||||||||||
For the year ended 31 December 2024 | ||||||||||||
Attributable to owners of the Company | ||||||||||||
In millions of EUR (“MEUR”) | Note | Share capital | Share premium | Reserves | Retained earnings | Total | Non- controlling interest | Total Equity | ||||
Non- distribu- table reserves | Translation reserve | Revalua- tion value reserve | Other capital reserves | Hedging reserve | ||||||||
Balance as at 1 January 2024 (A) | ( | |||||||||||
Profit or loss (B) | ||||||||||||
Foreign currency translation differences for foreign operations | 14 | ( | ( | ( | ( | |||||||
Revaluation reserve included in other comprehensive income, | ( | ( | ( | ( | ||||||||
Effective portion of changes in fair value of cash-flow hedges, net | 14 | ( | ( | ( | ||||||||
Total other comprehensive income (C) | ( | ( | ( | ( | ( | ( | ||||||
Total comprehensive income for the year (D) = (B + C) | ( | ( | ( | |||||||||
Contributions by and distributions to owners: | ||||||||||||
Dividends to equity holders | 21 | ( | ( | ( | ( | |||||||
Transfer to retained earnings | ( | |||||||||||
Total contributions by and distributions to owners | ( | ( | ( | ( | ( | |||||||
Effect of changes in ownership of non-controlling interest | 6 | |||||||||||
Total changes in ownership interests in subsidiaries (F) | ||||||||||||
Total transactions with owners (G) = (E + F) | ( | ( | ( | ( | ( | |||||||
Balance at 31 December 2024 (H) = (A + D + G) | ( | ( | ||||||||||
Annual Financial Report for the year 2025 – Section V.
Consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2025
5
Consolidated statement of cash flow | |||
For the year ended 31 December 2025 | |||
In millions of EUR (“MEUR”) | Note | 2025 | 2024 |
OPERATING ACTIVITIES | |||
Profit for the year | |||
Adjustments for: | |||
Income taxes | 14 | ||
Depreciation, amortization and impairment | 15, 16 | ||
Dividend income | 13 | ( | ( |
Impairment losses on financial assets incl. trade receivables | ( | ( | |
Non-cash (gain) loss from commodity derivatives for trading with electricity and gas, net | 7 | ( | |
(Gain) on disposal of property, plant and equipment, investment property intangible assets | 12 | ( | ( |
Emission rights | 11 | ||
(Gain) on disposal of subsidiaries, special purpose entities, joint ventures, associates and non-controlling interests | ( | ||
(Profit) from financial instruments | 13 | ( | ( |
Interest expense, net | 13 | ||
Change in allowance for impairment to inventories and other assets | 12 | ( | |
Change in provisions | ( | ( | |
Unrealized foreign exchange (gains) losses, net | ( | ||
Operating profit before changes in working capital | |||
Purchase and sale of emission rights, net | 11 | ( | ( |
Change in trade receivables and other assets | |||
Change in inventories | |||
Change in trade payables and other liabilities | ( | ||
Change in restricted cash | |||
Cash generated from (used in) operations | |||
Income taxes paid | ( | ( | |
Cash flows generated from (used in) operating activities | |||
INVESTING ACTIVITIES | |||
Received dividends | |||
Loans provided to the other entities | ( | ( | |
Repayment of loans provided to other entities | |||
Proceeds (outflows) from sale (settlement) of financial instruments | |||
Acquisition of property, plant and equipment, investment assets | 15, 16 | ( | ( |
Proceeds from sale of property, plant and equipment, intangible assets | |||
Net cash (outflow) from disposal of subsidiaries and special purpose entities | 6 | ( | |
Interest received | |||
Cash flows from (used in) investing activities | ( | ( | |
FINANCING ACTIVITIES | |||
Proceeds from borrowings received | 23 | ||
Repayment of loans and borrowings | 23 | ( | ( |
Proceeds from bonds issued | 23 | ||
Repayment of bonds issued | 23 | ( | ( |
Finance fees paid for repayment of borrowings and bond issue | ( | ||
Payment of lease liability | 29 | ( | ( |
Interest paid | ( | ( | |
Dividends paid | 21 | ( | ( |
Cash flows from (used in) financing activities | ( | ( | |
Net increase (decrease) in cash and | ( | ||
Cash and cash equivalents at beginning of the period | |||
Effect of exchange rate fluctuations on cash held | ( | ||
Cash and cash equivalents at end of the period | |||
Annual Financial Report for the year 2025 – Section V.
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2025
6
Notes to the consolidated financial statements
1.
Background
is a
, with its registered office at
,
. The
Company was founded by Energetický a průmyslový holding, a.s. (“EPH”) on 6 December 2013 as at that
time a subsidiary that will hold/consolidate investments in entities belonging to the energy segment of
Energetický a průmyslový holding, a.s. and its subsidiaries (the “EPH Group”).
The infrastructure subholding was established to separate the strategic infrastructure energy assets from
other business activities of the EPH Group.
The consolidated financial statements of the Company for the year ended 31 December 2025 include the
statements of the Parent Company and its subsidiaries and the Group’s interests in associates and joint-
ventures (together referred to as the “Group” or the “EPIF Group”). The Group entities are listed in
Appendix 1 – Group entities.
The shareholders of the Company as at 31 December 2025 were as follows:
Interest in share capital | Voting rights | |||||
MEUR | % | % | ||||
EPIF Investments a.s. | 2,241 | 69 | 69 | |||
CEI Investments S.à r.l. | 1,007 | 31 | 31 | |||
Total | 3,248 | 100 | 100 | |||
The shareholders of the Company as at 31 December 2024 were as follows:
Interest in share capital | Voting rights | |||||
MEUR | % | % | ||||
EPIF Investments a.s. | 2,241 | 69 | 69 | |||
CEI Investments S.à r.l. | 1,007 | 31 | 31 | |||
Total | 3,248 | 100 | 100 | |||
EP Infrastructure, a.s. is ultimately owned by EP Investment S. à r.l. with its registered office at 2 Place de
Paris, 2314 Luxembourg.
The members of the Board of Directors of the Company as at 31 December 2025 were:
●
Daniel Křetínský (Chairman of the Board of Directors)
●
Stéphane Brimont (Vice-chairman of the Board of Directors)
●
Gary Wheatley Mazzotti (Vice-chairman of the Board of Directors)
●
William David George Price (Member of the Board of Directors)
●
Marek Spurný (Member of the Board of Directors)
●
Pavel Horský (Member of the Board of Directors)
●
Milan Jalový (Member of the Board of Directors)
Information relating to the establishment of the parent company
and its shareholder structure was disclosed in the 2010 consolidated financial statements of
. published on 20 May 2011.
As the Company was established by its parent Energetický a průmyslový holding, a.s. under the common
control principle (refer to Note 3 – Material accounting policies), the Company opted to present the
contributed entities as if sold by EPH to the Company on the date when the respective entities were acquired
by the EPH Group or were contributed to the EPH Group.
Annual Financial Report for the year 2025 – Section V.
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2025
7
Under Czech law the non-cash contribution to the share capital must be valued by an independent valuation
specialist. The difference between the value contributed to the statutory share capital as determined by the
independent valuation specialist and the net book value (after potential fair value adjustments recorded
during the Purchase Price Allocation process when acquired by EPH) of the contributed entity as at the date
when acquired or contributed by the parent company was presented as a pricing difference in Other capital
reserves in Equity, rather than goodwill from acquisition under IFRS 3.
2. Basis of preparation
(a) Statement of compliance
The consolidated financial statements have been prepared in accordance with International Financial
Reporting Standards adopted by the European Union (IFRS ® Accounting Standards).
The consolidated financial statements were approved by the board of directors of the Company on 19 March
2026.
(b) Basis of measurement
The consolidated financial statements have been prepared on a going-concern basis using the historical cost
method, except for the following material items in the statement of financial position, which are measured
at fair value:
●
the gas transmission pipelines and the gas distribution pipelines at revalued amounts;
●
derivative financial instruments;
●
financial instruments at fair value through profit or loss;
●
financial instruments at fair value through other comprehensive income.
Non-current assets and disposal groups held for sale are stated at the lower of their carrying amount and
fair value less costs to sell.
The accounting policies described in the following paragraphs have been consistently applied by the Group
entities
and between accounting periods.
(c)
Going concern assumption
These consolidated financial statements have been prepared on a going concern basis, which the Group
regularly evaluates in light of developments affecting its operating environment. In performing this
assessment, management considered the ongoing military conflict in Ukraine, the continued interruption of
gas transit through Ukraine to Slovakia, the European Union’s REPowerEU initiative aimed at reducing
dependency on Russian fossil fuels, as well as other relevant geopolitical, regulatory and market
developments affecting the European energy sector.
Management also assessed the Group’s liquidity position, expected operating cash flows, availability of
committed credit facilities and the Group’s recent refinancing activities, including the successful issuance
new debt instruments and repayments of certain borrowings completed after the reporting date. These
factors, together with predominantly regulated and contracted nature of a substantial part of the Group’s
business, support the Group’s ability to meet its obligations as they fall due for at least 12 months from the
date of approval of these financial statements, as required by IAS1.
Management has also taken note of the military escalation involving Iran, which occurred after the reporting
date. Given its timing and the absence of direct operational or financial exposure for the Group,
management concluded that this development does not affect conditions existing at the reporting date and
therefore does not impact the going concern assessment for 2026.
Based on the information available, management has concluded that these events and conditions do not
currently have a material impact on these consolidated financial statements or on the Group’s ability to
continue as a going concern. Nevertheless, further adverse developments in geopolitical, regulatory or
market conditions cannot be ruled out and could, in the future, have a material negative impact on the
Group’s business, financial position, results of operations, cash flows or overall outlook.
Annual Financial Report for the year 2025 – Section V.
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2025
8
(d) Functional and presentation currency
The Company’s functional currency is Euro („EUR“). The consolidated financial statements are prepared
in Euro, which also the Group’s presentation currency. All financial information presented in Euros has
been rounded to the nearest million
(e) Use of estimates and judgements
The preparation of financial statements in accordance with IFRS Accounting Standards requires the use of
certain critical accounting estimates that affect the reported amounts of assets, liabilities, income and
expenses. It also requires management to exercise judgment in the process of applying the Company’s
accounting policies. The resulting accounting estimates will, by definition, seldom equal the related actual
results.
Estimates and assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are
recognised in the period in which the estimate is revised if the revision affects only that period, or in the
period of the revision and future periods if the revision affects both current and future periods.
i.
Assumptions and estimation uncertainties
Information about assumptions and estimation uncertainties that have a significant risk of resulting in a
material adjustment in the following years is included in the following notes:
●
Notes 6, 15 and 16 – Accounting for business combinations, recognition of goodwill/bargain
purchase gain, impairment testing of property, plant and equipment and goodwill;
●
Note 7 – Revenues;
●
Note 15 – Measurement of gas transmission and gas distribution pipelines at revalued amounts;
●
Note 24 – Recognition and measurement of provisions;
●
Notes 23, 26 and 30 – Valuation of loans and borrowings and financial instruments;
●
Note 14 – Pillar Two;
Climate related matters
In preparing these consolidated financial statements, management considered the effects of the Group’s
climate strategy, climate related commitments and regulatory developments and climate risks as described
in Chapter ESRS E1 – Climate Change of the Consolidated Sustainability Statement on key accounting
estimates. These include, where relevant, assumptions regarding future cash flows, discount rates, useful
lives of assets, residual values, expected carbon pricing, which are used in impairment tests and determining
recoverable amounts of gas infrastructure assets and determining provisions for environmental obligations,
and other parameters that may be subject to significant estimation uncertainty due to evolving climate
related risks and transition pathways. These estimates are mainly applied and/or further discussed in Note
– 15 Property, plant and equipment, Note 16 – Intangible assets, Note 24 – Provisions and Note 30 – Risk
management and might have less significant impact also on the other areas.
Measurement of fair values
A number of the Group’s accounting policies and disclosures require the measurement of fair values, for
both financial and non-financial assets and liabilities.
The Group has an established control framework with respect to the measurement of fair values. This
includes a valuation team that has overall responsibility for overseeing all significant fair value
measurements, including Level 3 fair values.
The valuation team regularly reviews significant unobservable inputs and valuation adjustments. If third
party information, such as broker quotes or pricing services, is used to measure fair values, then the
valuation team assesses the evidence obtained from the third parties to support the conclusion that such
valuations meet the requirements of IFRS Accounting Standards, including the level in the fair value
hierarchy in which such valuation should be classified.
When measuring the fair value of an asset or a liability, the Group uses market observable data as far as
possible. Fair values are categorised into different levels in a fair value hierarchy based on the inputs used
in the valuation techniques as follows:
Annual Financial Report for the year 2025 – Section V.
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2025
9
Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities.
Level 2: inputs other than quoted prices included in Level 1 that are observable on the market for the asset
or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).
Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs).
If the inputs used to measure the fair value of an asset or a liability might be categorised in different level
of the fair value hierarchy, then the fair value measurement is categorised in its entirety in the same level
of the fair value hierarchy as the lowest level input that is significant to the entire measurement.
The Group recognises transfers between levels of the fair value hierarchy at the end of the reporting period
during which the change has occurred.
ii. Judgements
Information about judgements made in the application of accounting policies that have the most significant
effects on the amounts recognised in the consolidated financial statements is included in the following
notes:
●
Notes 6 and 16 – accounting for business combinations, recognition of goodwill/bargain purchase
gain, impairment testing of goodwill,
●
Note 7 – judgements relating to recognition of revenues from customers;
●
Note 15 – assessment that IFRIC 12 and IFRS 16 is not applicable to the gas transmission and
gas distribution pipelines, power distribution networks, gas storage facilities and heat infra
facilities and distribution network;
●
Note 6 and 22 – information relating to assessment of control over subsidiaries;
●
Note 24 – measurement of defined benefit obligations, recognition and measurement of
provisions;
(f) Recently issued accounting standards
i.
Newly adopted IFRS Accounting Standards, Amendments to standards and Interpretations effective
for the year ended 31 December 2025 that have been applied in preparing the Group’s financial
statements
The following paragraphs provide a summary of the key requirements of IFRS Accounting Standards that
are effective for annual periods beginning on or after 1 January 2025 and that have thus been applied by
the Group for the first time.
Newly adopted IFRS Accounting Standards, Amendments to Standards and Interpretations with no
material impact on the Group’s financial statements:
●
Amendments to IAS 21 – Lack of Exchangeability.
The adoption of this amendment has had no material impact on the disclosures or the amounts reported in
the consolidated financial statements of the Group.
ii.
IFRS Accounting Standards not yet effective
At the date of authorisation of these consolidated financial statements, the following significant
Amendments to IFRS Accounting Standards have been issued but are not yet effective for the period ended
31 December 2025 and thus have not been adopted by the Group:
IFRS 18 – Presentation and Disclosure in Financial Statements (Effective for annual reporting
periods beginning on or after 1 January 2027)
IFRS 18 Presentation and Disclosure in Financial statements applies to all financial statements prepared
and presented in accordance with IFRS and will replace IAS 1 Presentation of Financial Statements. The
new standard introduces three main sets of new requirements with the aim to improve how companies
report financial performance and provide investors with a more useful basis for analysing and comparing
companies:
(a)
Categories for classifying income and expenses in the statement of profit or loss
Annual Financial Report for the year 2025 – Section V.
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2025
10
Entities are required to classify income and expenses included in the statement of profit or loss into one of
the following categories: operating, investing, financing, income taxes, discontinued operations.
Modifications of the classification requirements are applicable for entities with specified business activities
(banks, investment entities, investment property entities). The standard also requires the presentation of
specified subtotals in the statement of profit or loss.
(b)
Management-defined performance measures (“MPMs”)
MPMs are subtotals of income and expenses that an entity uses in public communication with users of
financial statements to communicate management’s view of an aspect of the financial performance and
that complement totals or subtotals included in IFRSs. Entities disclose information about its MPMs in a
single note, the standard specifies disclosure requirements for each MPM.
(c)
Aggregation and disaggregation of information
The standard introduces principles for aggregation and disaggregation of information and for presenting
information in the primary financial statements or in the notes.
The issuance of IFRS 18 includes amendments to other IFRS standards, among other amendments to IAS 7
Statement of cash flow which removes the presentation alternatives for interest and dividends and uses
operating profit subtotal as the single starting point for the indirect method of reporting cash flows from
operating activities.
The Group is currently reviewing the impact of the new standard to its financial statements and to the
disclosure the Group provides.
New IFRS Accounting Standards, Amendments to Standards and Interpretations that are not
expected to have a significant impact on the Group’s financial statements:
●
IFRS 19 – Subsidiaries without Public Accountability: Disclosures and Amendments to IFRS
19 Subsidiaries without Public Accountability: Disclosures (Effective for annual reporting
periods beginning on or after 1 January 2027 (not adopted by EU yet));
●
Amendments to IFRS 9 and IFRS 7 – Classification and Measurement of Financial Instruments
(Effective for annual reporting periods beginning on or after 1 January 2026);
●
Annual Improvements to IFRS Accounting Standards – Volume 11 (Effective for annual
reporting periods beginning on or after 1 January 2026);
●
Amendments to IFRS 9 and IFRS 7 - Contracts Referencing Nature-dependent Electricity
(Effective for annual reporting periods beginning on or after 1 January 2026);
●
Amendments to IAS 21 The Effects of Changes in Foreign Exchange Rates: Translation to a
Hyperinflationary Presentation Currency (Effective for annual reporting periods beginning on
or after 1 January 2027 (not adopted by EU yet)).
The Group has not early adopted any new standard and amendments to IFRS Accounting Standards where
adoption is not mandatory at the reporting date. Where transition provisions in adopted IFRS give an entity
the choice of whether to apply new standards prospectively or retrospectively, the Group elects to apply
the Standards prospectively from the date of transition.
Annual Financial Report for the year 2025 – Section V.
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2025
11
3. Material accounting policies
The EPIF Group has consistently applied the accounting policies set out below to all periods presented in
these consolidated financial statements, except as described in note 2(f) and 3(a).
(a
)
Changes in accounting policies
i.
Presentation of unbilled energy supplies
The Group adjusted presentation of unbilled but already delivered energy supplies in consolidated statement
of financial position. Such items previously presented within line item Contract asset have been reclassified
to line item Trade receivables and other assets. Adjusted presentation reflects more appropriately the
transactions as the amount to be billed to customers is only dependent on passage of time.
Comparative information has been adjusted accordingly.
(b) Basis of consolidation
i. Subsidiaries
Subsidiaries are entities controlled by the Parent Company. Control exists when the Parent Company has
power over the investee, exposure to variable returns from its involvement with the investee and is able to
use its power over the investee to affect the amount of its returns. The existence and effect of potential
voting rights that are substantive is considered when assessing whether the Group controls another entity.
The consolidated financial statements include the Group’s interests in other entities based on the Group’s
ability to control such entities regardless of whether control is actually exercised or not. The financial
statements of subsidiaries are included in the consolidated financial statements from the date that control
commences until the date that control ceases.
ii. Equity accounted investees
Associates are enterprises in which the Group has significant influence, but not control, over financial and
operating policies. Investments in associates are accounted for under the equity method and are initially
recognised at cost (Goodwill relating to an associate or a joint venture is included in the carrying amount
of the investment), any excess of the Group’s share of the net fair value of the identifiable assets and
liabilities over the cost of the investment, after reassessment, is recognised immediately in profit or loss in
the period in which the investment is acquired. The consolidated financial statements include the Group’s
share of the total profit or loss and other comprehensive income of associates from the date that the
significant influence commences until the date that the significant influence ceases. When the Group’s
share of losses exceeds the carrying amount of the associate, the carrying amount is reduced to nil and the
recognition of further losses is discontinued, except to the extent that the Group has incurred obligations in
respect of or has made payments on behalf of the associate.
iii. Accounting for business combinations
The Group acquired its subsidiaries in two ways:
●
As a business combination transaction within the scope of IFRS 3 which requires initial
measurement of assets and liabilities at fair value.
●
As a business combination under common control which is a business combination in which all
of the combining entities or businesses are ultimately controlled by the same party or parties both
before and after the business combination, and that control is not transitory. Such acquisitions are
excluded from the scope of IFRS 3. The assets and liabilities acquired were recognised at the
carrying amounts recognised previously in the Group’s controlling shareholder’s consolidated
financial statements (i.e. value at cost as at the date of acquisition less accumulated depreciation
and/or potential impairment). No new goodwill or bargain purchase gain was recognised on these
acquisitions.
Acquisition method and purchase price allocation
As at the acquisition date the Group measures identifiable assets acquired and the liabilities assumed at fair
value, except for deferred tax assets and liabilities, assets or liabilities related to employee benefits and
Annual Financial Report for the year 2025 – Section V.
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2025
12
assets/disposal groups classified as held for sale under IFRS 5, which are recognized and measured in
accordance with the respective standards.
Purchase price or any form of consideration transferred in a business combination is also measured at fair
value. Contingent consideration is measured at fair value at the date of acquisition and subsequently
remeasured at fair value at each reporting date, with changes in fair value recognized in profit or loss.
Acquisition related costs are recognized in profit or loss as incurred.
iv. Non-controlling interests
Acquisitions of non-controlling interest are accounted for as transactions with equity holders in their
capacity as equity holders and therefore no goodwill and no gain or loss is recognised as a result of such
transactions.
Non-controlling interests are measured at their proportionate share of the acquiree’s identifiable net assets
at acquisition date.
Changes in the Group’s interest in subsidiary that do not result in a loss of control are accounted for as
equity transactions.
v. Transactions eliminated on consolidation
Intra-group balances and transactions, and any unrealised income and expenses arising from intra-group
transactions, are eliminated in preparing the consolidated financial statements. Unrealised gains arising
from transactions with associates and jointly controlled entities are eliminated against the investment to the
extent of the Group’s interest in the enterprise. Unrealised losses are eliminated in the same way as
unrealised gains, but only to the extent that there is no evidence of impairment.
vi. Unification of accounting policies
The accounting policies and procedures applied by the consolidated companies in their financial statements
were unified in the consolidation and are aligned with the accounting policies applied by the Parent
Company.
vii. Pricing differences
The Group accounted for pricing differences which arose from the acquisition of subsidiaries from
Energetický a průmyslový holding, a.s. or subsidiaries contributed to the share capital of the Company by
Energetický a průmyslový holding, a.s. As these acquired or contributed entities were under common
control of Energetický a průmyslový holding, a.s., they were therefore excluded from scope of IFRS 3,
which defines recognition of goodwill raised from business combination as the excess of the cost of an
acquisition over the fair value of the Group’s share of the net identifiable assets, liabilities and contingent
liabilities of the acquired subsidiary. Acquirees under common control are treated under the net book value
presented in the consolidated financial statements of Energetický a průmyslový holding, a.s. (i.e. including
historical goodwill less potential impairment) as at the date these entities were acquired by Energetický a
průmyslový holding, a.s. (acquisition date). The difference between the cost of acquisition and carrying
values of net assets of the acquiree and original goodwill carried forward as at the acquisition date were
recorded to consolidated equity as pricing differences. Pricing differences are presented in Other capital
reserves in Equity. “Note 6 – Acquisitions and disposals of subsidiaries, joint-ventures and associates”
summarises the effects of all common control transactions in both periods.
viii. Disposal of subsidiaries and equity accounted investees
Gain or loss from the sale of investments in subsidiaries and equity accounted investees is recognised in
profit or loss when the significant risks and rewards of ownership have been transferred to the buyer.
If the assets and liabilities are sold by selling the interest in a subsidiary or an associate the profit or loss on
sale is recognised in total under Gain (loss) on disposal of subsidiaries and associates in the statement of
comprehensive income.
If the Group disposes of a subsidiary that was acquired under a common control transaction and pricing
differences were recognised on acquisition (refer to Note 3(b) vii – Pricing differences), pricing differences
are reclassified from other capital reserves to retained earnings at the date of the subsidiary’s disposal.
Annual Financial Report for the year 2025 – Section V.
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2025
13
(c) Foreign currency
i.
Foreign currency transactions
Items included in the financial statements of each of the Group’s entities are measured using the currency
of the primary economic environment in which the entity operates (the functional currency). Company’s
functional currency is Euro. Transactions in foreign currencies are translated to the respective functional
currencies of Group entities at the foreign exchange rate at the transaction date. The consolidated financial
statements are prepared and presented in Euro, which is both the functional and presentation currency.
Monetary assets and liabilities denominated in foreign currencies are retranslated to the respective
functional currencies of Group entities at the exchange rate at the reporting date.
Non-monetary assets and liabilities denominated in foreign currencies, which are stated at historical cost,
are translated to the respective functional currencies of Group entities at the foreign exchange rate at the
date of the transaction. Non-monetary assets and liabilities denominated in foreign currencies that are stated
at fair value are translated to the respective functional currencies at the foreign exchange rates at the dates
the fair values are determined.
Foreign exchange differences arising on retranslation are recognised in profit or loss, except for differences
arising on the retranslation of FVOCI equity instruments or qualifying cash flow hedges to the extent that
the hedge is effective, in which case foreign exchange differences arising on retranslation are recognised
in other comprehensive income.
A summary of the main foreign exchange rates applicable for the reporting period is presented in Note 30
– Risk management.
ii.
Translation to presentation currency
These consolidated financial statements are prepared in Euro. The assets and liabilities of foreign
operations, including goodwill and fair value adjustments arising on consolidation, are translated into Euro
at foreign exchange rates at the reporting date. The income and expenses of foreign operations are translated
into Euro using average exchange rate for the period. For significant transactions the exact foreign exchange
rate is used.
Foreign exchange differences arising on translation of foreign operations are recognised in other
comprehensive income and presented in the translation reserve in equity. However, if the foreign operation
is a non-wholly owned subsidiary, then the relevant proportion of the translation difference is allocated to
non-controlling interests. At disposal, relevant part of translation reserve is recycled to income statement
and included in gain/(loss) from disposal of subsidiaries in the consolidated statement of comprehensive
income.
(d) Non-derivative financial assets
i.
Classification
On initial recognition, a financial asset is classified as measured at amortised cost, fair value through other
comprehensive income – debt instrument, fair value through other comprehensive income – equity
instrument or fair value through profit or loss. The classification of financial asset is generally based on the
business model in which a financial asset is managed and its contractual cash flow characteristics.
A financial asset is measured at
amortized cost
●
the financial asset is held within a business model whose objective is to hold financial assets in
order to collect contractual cash flows; and
●
the contractual terms of the financial asset give rise on specified dates to cash flows that are solely
payments of principal and interest on the principal amount outstanding (“SPPI test”).
Principal is the fair value of the financial asset at initial recognition. Interest consists of consideration for
the time value of money, for the credit risk associated with the principal amount outstanding during a
particular period of time and for other basic lending risks and costs, as well as a profit margin. Loans and
receivables which meet SPPI test and business model test are classified by the Group as financial asset at
amortised cost.
Annual Financial Report for the year 2025 – Section V.
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2025
14
A
debt instruments
at fair value through other comprehensive income
conditions are met:
●
the financial asset is held within a business model whose objective is achieved by both collection
contractual cash flows and selling financial assets; and
●
the contractual terms of the financial asset give rise on specified dates to cash flows that are solely
payments of principal and interest on the principal amount outstanding (“SPPI test”).
The Group may make an irrevocable election at initial recognition for particular investments in
equity
instruments
are not held for trading to present subsequent changes in fair value in other comprehensive income. The
Group has equity securities classified as financial assets
at fair value through other comprehensive income
.
These investments are not held for trading, but rather for long-term purposes and thus the Group has elected
not to present the changes in the fair value of these investments in profit or loss.
All investments in equity instruments and contracts on those instruments are measured at fair value.
However, in limited circumstances, cost may be an appropriate estimate of fair value. That may be the case
if insufficient recent information is available to measure fair value, or if there is a wide range of possible
fair value measurements and cost represent the best estimate of fair value within that range. The Group uses
all information about the performance and operations of the investee that becomes available after the date
of initial recognition. To the extent that any such relevant factors exist, they may indicate that cost might
not be representative of fair value. In such cases, the Group uses fair value. Cost is never the best estimate
of fair value for investments in quoted instruments.
A financial asset is measured at fair value through profit or loss unless it is measured at amortised cost or
at fair value through other comprehensive income. The key type of financial assets measured at fair value
through profit or loss by the Group are derivatives.
ii.
Recognition
Financial assets are recognised on the date the Group becomes party to the contractual provision of the
instrument.
iii.
Measurement
Upon initial recognition, financial assets are measured at fair value plus, in the case of a financial instrument
not at fair value through profit or loss, transaction costs directly attributable to the acquisition of the
financial instrument. Attributable transaction costs relating to financial assets measured at fair value
through profit or loss are recognised in profit or loss as incurred. For the methods used to estimate fair
value, refer to Note 4 – Determination of fair values.
Financial assets at FVtPL are subsequently measured at fair value, with net gains and losses, including any
dividend income, recognised in profit or loss.
Debt instruments at FVOCI are subsequently measured at fair value. Interest income calculated using
effective interest rate method, foreign exchange gains and losses and impairment are recognised in profit
or loss. Other gains and losses are recognised in other comprehensive income and reclassified to profit or
loss upon derecognition of the asset.
Equity instruments at FVOCI are subsequently measured at fair value. Dividends are recognised in profit
or loss in finance income. Other gains and losses are recognised in other comprehensive income and are
never reclassified to profit or loss.
Financial assets at amortized cost are subsequently measured at amortized cost using effective interest rate
method. Effective interest rate is the rate that exactly discounts estimated future cash payments or receipts
through the expected life of the financial asset or liability to the gross carrying amount of a financial asset
or to the amortized cost of a financial liability. Interest income, foreign exchange gains and losses,
impairment and any gain or loss on derecognition are recognised in profit or loss.
Annual Financial Report for the year 2025 – Section V.
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2025
15
iv. De-recognition
A financial asset is derecognised when the contractual rights to the cash flows from the asset expire, or
when the rights to receive the contractual cash flows are transferred in a transaction in which substantially
all the risks and rewards of ownership of the financial asset are transferred. Any interest in transferred
financial assets that is created or retained by the Group is recognised as a separate asset or liability.
v. Offsetting of financial assets and liabilities
Financial assets and liabilities are offset and the net amount is reported in the statement of financial position
when the Group has a legally enforceable right to offset the recognised amounts and the transactions are
intended to be settled on a net basis.
(e) Non-derivative financial liabilities
The Group has the following non-derivative financial liabilities: loans and borrowings, debt securities
issued, bank overdrafts, and trade and other payables. Such financial liabilities are initially recognised at
the settlement date at fair value plus any directly attributable transaction costs except for financial liabilities
at fair value through profit and loss, where transaction costs are recognised in profit or loss as incurred.
Financial liabilities are subsequently measured at amortised cost using the effective interest rate, except for
financial liabilities at fair value through profit or loss. For the methods used to estimate fair value, refer to
Note 4 – Determination of fair values.
The Group derecognises a financial liability when its contractual obligations are discharged, cancelled or
expire.
(f) Derivative financial instruments
The Group holds derivative financial instruments to hedge its foreign currency, interest rate and commodity
risk exposures.
Derivatives are recognised initially at fair value, with attributable transaction costs recognised in profit or
loss as incurred. Subsequent to initial recognition, derivatives are measured at fair value, and changes
therein are accounted for as described below.
Trading derivatives
When a derivative financial instrument is held for trading i.e. is not designated in a qualifying hedge
relationship, all changes in its fair value are recognised immediately in profit or loss.
Cash flow hedges and fair value hedges
The Group has adopted hedge accounting requirements as per IFRS 9. The financial derivatives, which do
not meet the criteria for hedge accounting as stated by IFRS 9 are classified as for trading and related profit
and loss from changes in fair value is recognised in profit and loss.
Hedging instruments which consist of derivatives associated with a currency risk are classified either as
cash-flow hedges or fair value hedges.
From the inception of the hedge, the Group maintains a formal documentation of the hedging relationship
and the Group’s risk management objective and strategy for undertaking the hedge. The Group also
periodically assesses the hedging instrument’s effectiveness in offsetting exposure to changes in the hedged
item’s fair value or cash flows attributable to the hedged risk.
In the case of a cash flow hedge, the portion of the gain or loss on the hedging instrument that is determined
to be an effective hedge is recognised in other comprehensive income and the ineffective portion of the
gain or loss on the hedging instrument is recognised in profit or loss. If the hedging instrument no longer
meets the criteria for hedge accounting, expires or is sold, terminated or exercised, then the hedge
accounting is discontinued prospectively. If the forecast transaction is no longer expected to occur, then the
balance in equity is reclassified to profit or loss. In case the future transaction is still expected to occur then
the balance remains in equity and is recycled to profit or loss when the hedged transaction impacts profit
or loss.
Annual Financial Report for the year 2025 – Section V.
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2025
16
In the case of a fair value hedge, the hedged item is remeasured for changes in fair value attributable to the
hedged risk during the period of the hedging relationship. Any resulting adjustment to the carrying amount
of the hedged item related to the hedged risk is recognised in profit or loss, except for the financial asset –
equity instrument at FVOCI, for which the gain or loss is recognised in other comprehensive income.
In the case of a fair value hedge, the gain or loss from re-measuring the hedging instrument at fair value is
recognised in profit or loss.
Transactions with emission rights and energy
According to IFRS 9, certain contracts for emission rights and energy fall into the scope of the standard.
Purchase and sales contracts entered into by the Group provide for physical delivery of quantities intended
for consumption or sale as part of its ordinary business. Such contracts are thus excluded from the scope of
IFRS 9.
In particular, forward purchases and sales settled by delivery of the underlying are considered to fall outside
the scope of application of IFRS 9, when the contract concerned is considered to have been entered into as
a part of the Group’s normal business activity. This is demonstrated to be the case when all the following
conditions are fulfilled:
●
delivery of the underlying takes place under such contracts;
●
the volumes purchased or sold under the contracts correspond to the Group’s operating
requirements;
●
the Group does not have a practice of settling similar contracts net in cash or another financial
instrument or by exchanging financial instrument;
●
the Group does not have a practice of taking delivery of the underlying and selling it within a
short period after delivery for the purpose of generating a profit from short-term fluctuation in
price or dealer’s margin.
Contracts, which does not meet above mentioned conditions, fall under the scope of IFRS 9 and are
accounted for in line with the requirements of IFRS 9.
For each contract where own-use exemption applies, the Group determines whether the contract leads to
physical settlement in accordance with Group’s expected purchase, sale or usage requirements. The Group
considers all relevant factors including the quantities delivered under the contract and the corresponding
requirements of the entity, the delivery locations, the duration between contract signing and delivery and
the existing procedure followed by the entity with respect to contracts of this kind.
Contracts which fall under the scope of IFRS 9 are carried at fair value with changes in the fair value
recognised in profit or loss.
(g) Cash and cash equivalents
Cash and cash equivalents comprise cash balances on hand and in banks, and short-term highly liquid
investments with original maturities of three months or less.
(h) Inventories
Inventories are measured at the lower of cost and net realisable value. Net realisable value is the estimated
selling price in the ordinary course of business, less the estimated cost of completion and selling expenses.
Purchased inventory and inventory in transit are initially stated at cost, which includes the purchase price
and other directly attributable expenses incurred in acquiring the inventories and bringing them to their
current location and condition. Inventories of a similar nature are valued using the weighted average method
except for the energy production segment, where the first-in, first-out principle is used.
Internally manufactured inventory and work in progress are initially stated at production costs. Production
costs include direct costs (direct material, direct labour and other direct costs) and part of overhead directly
attributable to inventory production (production overhead). The valuation is written down to net realisable
value if the net realisable value is lower than production costs.
Annual Financial Report for the year 2025 – Section V.
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2025
17
(i) Impairment
i. Non-financial assets
The carrying amounts of the Group’s assets, other than inventories (refer to accounting policy (h) –
Inventories) and deferred tax assets (refer to accounting policy (o) – Income taxes) are reviewed at each
reporting date to determine whether there is an objective evidence of impairment. If any such indication
exists, the asset’s recoverable amount is estimated. For goodwill and intangible assets that have an
indefinite useful life or that are not yet available for use, the recoverable amount is estimated at least each
year at the same time.
The recoverable amount of an asset or cash-generating unit (CGU) is the greater of its fair value less costs
to sell and value-in-use. In assessing value-in-use, the estimated future cash flows are discounted to their
present value using a pre-tax discount rate that reflects current market assessment of the time value of
money and the risks specific to the asset or CGU.
For the purpose of impairment testing, assets that cannot be tested individually are grouped together into
the smallest group of assets that generates cash inflows from continuing use that are largely independent of
the cash inflows of other assets or groups of assets (the “cash-generating unit”, or “CGU”). For the purposes
of goodwill impairment testing, CGUs to which goodwill has been allocated are aggregated so that the level
at which impairment is tested reflects the lowest level at which goodwill is monitored for internal reporting
purposes and is not larger than operating segment before aggregation. Goodwill acquired in a business
combination is allocated to groups of CGUs that are expected to benefit from the synergies of the
combination.
An impairment loss is recognised whenever the carrying amount of an asset or its cash generating unit
exceeds its recoverable amount. Impairment losses are recognised in profit or loss.
Impairment losses recognised in respect of CGUs are allocated first to reduce the carrying amount of any
goodwill allocated to the CGU or CGUs, and then to reduce the carrying amounts of the other assets in the
CGU (or group of CGUs) on a
pro rata
An impairment loss in respect of goodwill is not reversed. In respect of other assets, impairment losses
recognised in prior periods are assessed at each reporting date for any indications that the loss has decreased
or no longer exists. An impairment loss is reversed if there has been a change in the estimates used to
determine the recoverable amount. An impairment loss is reversed only to the extent that the asset’s
carrying amount does not exceed the carrying amount that would have been determined, net of depreciation
or amortisation, if no impairment loss had been recognised.
Goodwill that forms part of the carrying amount of an investment in an associate is not recognised
separately and therefore is not tested for impairment separately. Instead, the entire amount of the investment
in an associate is tested for impairment as a single asset when there is objective evidence that the investment
in an associate may be impaired.
ii. Financial assets (including trade and other receivables and contract assets)
The Group measures loss allowances using expected credit loss (“ECL”) model for financial assets at
amortized cost, debt instruments at FVOCI and contract assets. Loss allowances are measured on either of
the following bases:
• 12-month ECLs: ECLs that result from possible default events within the 12 months after the reporting
date;
• lifetime ECLs: ECLs that result from all possible default events over the expected life of a financial
instrument.
The Group measures loss allowances at an amount equal to lifetime ECLs except for those financial assets
for which credit risk has not increased significantly since initial recognition. For trade receivables and
contract assets, the Group measures loss allowances at an amount equal to lifetime ECLs.
Financial assets are allocated to three stages (Stage I – III) or to a group of financial assets that are impaired
at the date of the first recognition purchased or originated credit-impaired financial assets (“POCI”). At the
date of the initial recognition, the financial asset is included in Stage I or POCI. Subsequent to initial
Annual Financial Report for the year 2025 – Section V.
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2025
18
recognition, financial asset is allocated to Stage II if there was a significant increase in credit risk since
initial recognition or to Stage III of the financial asset has been credit impaired.
The Group assumes that the credit risk on a financial asset has increased significantly if:
(a) a financial asset or its significant portion is overdue for more than 30 days;
(b) the Group negotiates with the debtor in a financial difficulty about debt’s restructuring;
(c) the probability of default of the debtor increases by 20%; or
(d) other material events occur which require individual assessment (e.g., development of external ratings
of sovereign credit risk).
A financial asset is credit impaired when one or more events that have a detrimental impact on the estimated
future cash flows of the financial asset have occurred (e.g. a financial asset is overdue for more than 90
days, insolvency or similar proceedings have been initiated with the debtor, the probability of default of the
borrower increases by 100% compared to the previous rating).
For the purposes of ECL calculation, the Group uses components needed for the calculation, namely
probability of default (“PD”), loss given default (“LGD”) and exposure at default (“EAD”). Forward-
looking information means any macroeconomic factor projected for future, which has a significant impact
on the development of credit losses ECLs are present values of probability-weighted estimate of credit
losses. The Group considers mainly expected growth of gross domestic product, reference interest rates,
stock exchange indices or unemployment rates.
Presentation of loss allowances
Loss allowances for financial assets measured at amortised cost are deducted from the gross carrying
amount of the assets. For debt securities at FVOCI, the loss allowance is recognised in OCI, instead of
reducing the carrying amount of the asset.
iii. Equity accounted investees
An impairment loss in respect of an equity accounted investee is measured by comparing the recoverable
amount of the investment with its carrying amount. An impairment loss is recognised in profit or loss and
is reversed if there has been a favourable change in the estimates used to determine the recoverable amount.
(j) Property, plant and equipment
i.
Owned assets – cost model
Items of property, plant and equipment are stated at cost less accumulated depreciation (see below) and
impairment losses (refer to accounting policy (i) – Impairment). Opening balances are presented at net book
values, which include adjustments from revaluation within the Purchase Price Allocation process (refer to
accounting policy (b) iii – Basis of consolidation – Accounting for business combinations).
Cost includes expenditures that are directly attributable to the acquisition of the asset. The cost of self-
constructed assets includes the cost of materials and direct labour, any other costs directly attributable to
bringing the asset to a working condition for its intended use, and capitalised borrowing costs (refer to
accounting policy (p) – Finance income and costs). The cost also includes costs of dismantling and
removing the items and restoring the site on which they are located.
When parts of an item of property, plant and equipment have different useful lives, those components are
accounted for as separate items (major components) of property, plant and equipment.
ii.
Owned assets – revaluation model
The gas transmission pipelines of eustream, a.s. and the gas distribution pipelines in SPP – distribúcia, a.s.
are held under revaluation model (IAS 16). The assets are carried at revalued amount, which is fair value
at the date of revaluation less accumulated subsequent depreciation and impairment. Revaluation is made
with sufficient regularity, at least every 5 years. Revaluation is always applied to the entire class of property,
plant and equipment the revalued asset belongs to.
Initial revaluation as at the date of initial application of revaluation model, the difference between carrying
amount and revalued amount is recognized as revaluation surplus directly in equity if revalued amount is
Annual Financial Report for the year 2025 – Section V.
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2025
19
higher than carrying amount. Difference is recognized in profit or loss if revalued amount is lower than
carrying amount.
On subsequent revaluation, increase in revalued amount is recognized in other comprehensive income or
in profit or loss to the extend it reverses a revaluation decrease of the same asset previously recognized in
profit or loss. The decrease in revalued amount primarily decreases amount accumulated as revaluation
surplus in equity, eventual remaining part of decrease in revalued amount is recognized in profit or loss.
Accumulated depreciation is eliminated against gross carrying amount of the asset.
Deferred tax asset or liability is recognized in equity or in profit or loss in the same manner as the
revaluation itself.
When asset under revaluation model is depreciated, revaluation surplus is released to retained earnings as
the asset is depreciated. When the revalued asset is derecognized or sold, the revaluation surplus as a whole
is transferred to retained earnings.
iii.
Free-of-charge received property
Several items of gas and electricity equipment (typically connection terminals) were obtained “free of
charge” from developers and from local authorities (this does not represent a grant, because in such cases
the local authorities act in the role of a developer). This equipment was recorded as property, plant, and
equipment at the costs incurred by the developers and local authorities with a corresponding amount
recorded as contract liability (before 1 January 2018 as deferred income) as receipt of the free of charge
property is related to obligation to connect the customers to the grid. These costs approximate the fair value
of the obtained assets. This contract liability is released in the income statement on a straight-line basis in
the amount of depreciation charges of non-current tangible assets acquired free of charge.
iv. Subsequent costs
Subsequent costs incurred to add to, replace part of, or service a previously recognized item of property,
plant and equipment are capitalized and recognized as part of the item of property, plant and equipment
only if it is probable that the future economic benefits associated with these costs will flow to the entity and
they can be measured reliably. All other expenditures, including the costs of the day-to-day servicing of
property, plant and equipment, are recognised in profit or loss as incurred.
v. Depreciation
Depreciation is recognised in profit or loss on a straight-line basis over the estimated useful lives of items
of property, plant and equipment. Land is not depreciated. Leased assets are depreciated over the shorter of
the lease term and their useful lives unless it is reasonably certain that the Group will obtain ownership by
the end of the lease term in which case the right-of-use asset should be depreciated from the commencement
date to the end of the useful life of the underlying asset.
The estimated useful lives are as follows:
●
Power plant buildings and structures 50 – 100 years
●
Buildings and structures 20 – 50 years
●
Gas transmission and distribution pipelines 30 – 70 years
●
Machinery, electric generators, gas producers, turbines and drums 20 – 30 years
●
Heat and electricity distribution networks 10 – 30 years
●
Machinery and equipment 4 – 20 years
●
Fixtures, fittings and other 3 – 20 years
Depreciation methods and useful lives, as well as residual values, are reassessed annually at the reporting
date. For companies acquired under IFRS 3 for which a purchase price allocation was prepared, the useful
lives are reassessed based on the purchase price allocation process.
(k) Intangible assets
i. Goodwill and intangible assets acquired in a business combination
Goodwill represents the excess of the consideration transferred, amount of any non-controlling interest in
the acquired entity and acquisition-date fair value of any previous equity interest in the acquired entity over
Annual Financial Report for the year 2025 – Section V.
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2025
20
the fair value of the net identifiable assets of the acquired subsidiary/associate/joint-venture at the date of
acquisition. Goodwill on acquisitions of subsidiaries is included under intangible assets. Goodwill on
acquisitions of associates/joint ventures is included in the carrying amount of investments in associates/joint
ventures.
If the Group’s share in the fair value of identifiable assets and liabilities of a subsidiary or equity accounted
investees as at the acquisition date exceeds the acquisition cost, the Group reconsiders identification and
measurement of identifiable assets and liabilities, and the acquisition cost. Any excess arising on the re-
measurement (bargain purchase gain) is recognised in profit and loss account in the period of acquisition.
Upon acquisition of non-controlling interests (while maintaining control), no goodwill is recognised.
Subsequent to initial recognition, goodwill is measured at cost less accumulated impairment losses (refer
to accounting policy (i) – Impairment) and is tested for impairment annually.
Gains and losses on disposal of an entity include the carrying amount of goodwill relating to the entity sold.
Intangible assets acquired in a business combination are recorded at fair value on the acquisition date if the
intangible asset is separable or arises from contractual or other legal rights. Intangible assets with an
indefinite useful life are not subject to amortisation and are recorded at cost less any impairment losses
(refer to accounting policy (i) – Impairment). Intangible assets with a definite useful life are amortised over
their useful lives and are recorded at cost less accumulated amortisation (see below) and impairment losses
(refer to accounting policy (i) – Impairment).
ii. Research and development
Expenditure on research activities, undertaken with the prospect of gaining new scientific or technical
knowledge and understanding, is recognised in profit or loss as incurred.
Development activities involve a plan or design for the production of new or substantially improved
products and processes. Development expenditure is capitalised only if development costs can be measured
reliably, the product or process is technically and commercially feasible, future economic benefits are
probable, and the Group intends to and has sufficient resources to complete the development and to use or
sell the asset.
In 2025 and 2024, expenditures incurred by the Group did not meet these recognition criteria. Development
expenditure has thus been recognised in profit or loss.
iii. Emission rights
Recognition and measurement
Emission rights issued by a government are initially recognised at fair values. Where an active market
exists, fair value is based on the market price. The fair value for allocated emission rights is determined as
the price at the date of allocation. Emission rights that are purchased are initially recognised at cost.
Subsequently, emission rights are accounted for under the cost method under intangible assets.
The Group’s accounting policy is to use the first-in, first-out principle (“FIFO”) for emission rights disposal
(consumption or sale).
Impairment of emission rights
At each reporting date, the Group assesses whether there is any indication that emission rights may be
impaired.
Where an impairment indicator exists, the Group reviews the recoverable amounts of the cash generating
unit, to which the emission rights were allocated, to determine whether such amounts continue to exceed
the assets’ carrying values. In case the carrying value of a cash generating unit is greater than its recoverable
value, impairment exists.
Any identified emission rights impairment is recognised directly as a debit to a profit or loss account and a
credit to a valuation adjustment.
Recognition of grants
Annual Financial Report for the year 2025 – Section V.
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2025
21
A grant is initially recognised as deferred income and recognised in profit on a systematic basis over the
compliance period, which is the relevant calendar year, regardless of whether the allowance received
continues to be held by the entity. The pattern for the systematic recognition of the deferred income in profit
is assessed based on estimated pollutants emitted in the current month, taking into account the estimated
coverage of the estimated total annually emitted pollutants by allocated emission rights. The release of
deferred income to a profit and loss account is performed on a quarterly basis; any subsequent update to
the estimate of total annual pollutants is taken into account during the following monthly or quarterly
assessment. Any disposals of certificates or changes in their carrying amount do not affect the manner in
which grant income is recognised.
Recognition, measurement of provision
A provision is recognised regularly during the year based on the estimated number of tonnes of CO2
emitted.
It is measured at the best estimate of the expenditure required to settle the present obligation at the end of
the reporting period. It means that the provision is measured based on the current carrying amount of the
certificates on hand if sufficient certificates are owned to settle the current obligation, by using a FIFO
method. The group companies identify (in each provision measurement period) which of the certificates
are “marked for settling” the provision and this allocation is consistently applied.
Otherwise, if a shortfall of emission rights on hand as compared to the estimated need exists at the reporting
date, then the provision for the shortfall is recorded based on the current market value of the emission
certificates at the end of the reporting period.
iv. Software and other intangible assets
Software and other intangible assets acquired by the Group that have definite useful lives are stated at cost
less accumulated amortisation (see below) and impairment losses (refer to accounting policy (i) –
Impairment).
Intangible assets that have an indefinite useful life are not amortised and are instead tested annually for
impairment. Their useful life is reviewed at each period-end to assess whether events and circumstances
continue to support an indefinite useful life.
v. Amortisation
Amortisation is recognised in profit or loss on a straight-line basis over the estimated useful lives of
intangible assets other than goodwill, from the date the asset is available for use. The estimated useful lives
are as follows:
●
Software 2 – 7 years
●
Customer relationship and other contracts 2 – 20 years
●
Other intangible assets 2 – 20 years
Amortisation methods, useful lives and residual values are reviewed at each financial year-end and adjusted
if appropriate.
(l) Provisions
A provision is recognised in the statement of financial position when the Group has a present legal or
constructive obligation as a result of a past event, when it is probable that an outflow of economic benefits
will be required to settle the obligation and when a reliable estimate of the amount can be made.
Provisions are recognised at the expected settlement amount. Long-term obligations are reported as
liabilities at the present value of their expected settlement amounts, if the effect of discount is material,
using as a discount rate the pre-tax rate that reflects current market assessments of the time value of money
and the risks specific to the liability. The periodic unwinding of the discount is recognised in profit or loss
in finance costs.
The effects of changes in interest rates, inflation rates and other factors are recognised in profit or loss in
operating income or expenses. Changes in estimates of provisions can arise in particular from deviations
from originally estimated costs, from changes in the settlement date or in the scope of the relevant
Annual Financial Report for the year 2025 – Section V.
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2025
22
obligation. Changes in estimates are generally recognised in profit or loss at the date of the change in
estimate (see below).
i. Employee benefits
Long-term employee benefits
Liability relating to long-term employee benefits and service awards excluding pension plans is defined as
an amount of the future payments, to which employees will be entitled in return for their service in the
current and prior periods. Future liability which is calculated using the projected unit credit method is
discounted to its present value. The discount rate used is based on yields of high-quality corporate bonds
as at the end of the reporting period, which maturity approximately corresponds with the maturity of the
future obligation. The revaluation of the net liability from long-term employee benefits and service awards
(including actuarial gains and losses) is recognised in full immediately in other comprehensive income.
Contributions for pension insurance resulting from Collective agreement are expensed when incurred.
Pension plans
In accordance with IAS 19, the projected unit credit method is the only permitted actuarial method. The
benchmark (target value) applied to measure defined benefit pension obligations is the present value of
vested pension rights of active and former employees and beneficiaries (present value of the defined benefit
obligation). In general it is assumed that each partial benefit of the pension commitment is earned evenly
from commencement of service until the respective due date.
If specific plan assets are established to cover the pension payments, these plan assets can be netted against
the pension obligations and only the net liability is shown. The valuation of existing plan assets is based on
the fair value at the balance sheet date in accordance with IAS 19.
Assets used to cover pension obligations that do not fully meet the requirement of plan assets have to be
carried as assets on the balance sheet. Any netting off against the liability to be covered will not apply in
this respect.
The Group recognises all actuarial gains and losses arising from benefit plans immediately in other
comprehensive income and all expenses related to the defined benefit plan in profit or loss.
The Group recognises gains and losses on the curtailment or settlement of a benefit plan when the
curtailment or settlement occurs. The gain or loss on curtailment or settlement comprises any resulting
change in the fair value of plan assets, any change in the present value of the defined benefit obligation,
any related actuarial gains and losses and past service costs that had not been previously recognised.
Short-term employee benefits
Short-term employee benefit obligations are measured on an undiscounted basis and are expensed as the
related service is provided. A provision is recognised for the amount expected to be paid under short-term
cash bonus or profit-sharing plans if the Group has a present legal or constructive obligation to pay this
amount as a result of past service provided by the employee and the obligation can be estimated reliably.
ii. Provision for lawsuits and litigations
Settlement of a lawsuit represents an individual potential obligation. Determining the best estimate either
involves expected value calculations, where possible outcomes, stated based on a legal study, are weighted
by their likely probabilities or it is the single most likely outcome, adjusted as appropriate to consider risk
and uncertainty.
iii. Provision for emission rights
A provision for emission rights is recognised regularly during the year based on the estimated number of
tonnes of CO2 emitted. It is measured at the best estimate of the expenditure required to settle the present
obligation at the reporting date.
Annual Financial Report for the year 2025 – Section V.
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2025
23
iv. Restructuring
A provision for restructuring is recognised when the Group has approved a detailed and formal restructuring
plan, and the restructuring either has commenced or has been announced publicly. Future operating costs
are not provided for.
v. Asset retirement obligation and provision for environmental remediation
Certain property, plant and equipment of conventional and renewable power plants and gas storage facilities
have to be dismantled and related sites have to be restored at the end of their operational lives. These
obligations are the result of prevailing environmental regulations in the countries concerned, contractual
agreements, or an implicit Group commitment.
Obligations arising from the decommissioning or dismantling of property, plant and equipment are
recognised in connection with the initial recognition of the related assets, provided that the obligation can
be reliably estimated. The carrying amounts of the related items of property, plant and equipment are
increased by the same amount that is subsequently amortised as part of the depreciation process of the
related assets.
A change in the estimate of a provision for the decommissioning and restoration of property, plant and
equipment is generally recognised against a corresponding adjustment to the related assets, with no effect
on profit or loss. If the related items of property, plant and equipment have already been fully depreciated,
changes in the estimate are recognised in profit or loss.
No provisions are recognised for contingent asset retirement obligations where the type, scope, timing and
associated probabilities cannot be determined reliably.
Provisions for environmental remediation in respect of contaminated sites are recognised when the site is
contaminated and when there is a legal or constructive obligation to remediate the related site.
Provisions are recognised for the following restoration activities:
●
dismantling and removing structures;
●
abandonment of production, exploration and storage wells;
●
dismantling operating facilities;
●
closure of plant and waste sites; and
●
restoration and reclamation of affected areas.
The entity records the present value of the provision in the period in which the obligation is incurred. The
obligation generally arises when the asset is installed or the environment is disturbed at the production
location. When the liability is initially recognised, the present value of the estimated costs is capitalised by
increasing the carrying amount of the related assets. Over time, the discounted liability is increased to
reflect the change in the present value based on the discount rates that reflect current market assessments
and the risks specific to the liability. The periodic unwinding of the discount is recognised in profit or loss
as a finance cost.
All the provisions for environmental remediation and asset retirement obligation are presented under
Provision for restoration and decommissioning.
vi. Onerous contracts
A provision for onerous contracts is recognised when the expected benefits to be derived by the Group from
a contract are lower than the unavoidable costs of meeting its obligations under the contract. The provision
is measured at the present value of the lower of the expected cost of terminating the contract and the
expected net cost of continuing with the contract. Before a provision is established, the Group recognises
any impairment loss on the assets associated with that contract.
Annual Financial Report for the year 2025 – Section V.
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2025
24
(m) Leases
Definition of a lease
An agreement is or contains a leasing arrangement if it gives the customer the right to control the use of an
identified asset in a time period in exchange for consideration. Control exists if the customer has the right
to obtain substantially all economic benefits from the use of the asset and also the right to direct its use.
Lessor accounting
Lessor classifies leasing as either financial or operating. Lease is classified as a finance lease if it transfers
substantially all the risks and rewards incidental to ownership of an underlying asset. A lease is classified
as an operating lease if it does not transfer substantially all the risks and rewards incidental to ownership of
an underlying asset.
In the case of financial leasing the lessor reports in its statement of financial position a receivable in an
amount equal to the net financial investment in the leasing. In the statement of comprehensive income then
during the leasing term it reports financial revenues.
In the case of operating leasing the lessor recognises an underlying asset in the report on financial position.
In the income statement then during the leasing term it reports leasing payments as revenues on a straight-
line basis over the lease term and depreciation of the underlying asset as an expense.
Lessee accounting
Upon the commencement of a leasing arrangement, the lessee recognises a right-of-use asset against a lease
liability, which is valued at the current value of the leasing payments that are not paid at the commencement
date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the
Group’s incremental borrowing rate. Incremental borrowing rate is determined based on interest rates from
selected external financial sources and adjustments made to reflect the terms of the lease.
Exception option applies for short-term leases (lease term 12 months or shorter) and leases of low value
assets (lower than 5 thousand EUR). The Group has elected not to recognize right-of-use assets for these
leases. Lease payments are recognised as an expense on a straight-line basis over lease period.
The lease liability is subsequently measured at amortized cost under the effective interest rate method.
Lease liability is remeasured if there is a change in:
●
future lease payments arising from change in an index or rate;
●
estimated future amounts payable under a residual guaranteed value;
●
the assessment of the exercise of purchase, extension or termination option;
●
in-substance fixed lease payments; or
●
in the scope of a lease or consideration for a lease (lease modification) that is not accounted as a
separate lease.
When the lease liability is remeasured, a corresponding adjustment is made to the carrying amount of the
right-of-use assets. In case the right-of-use assets has been reduced to zero, the adjustment is recognized in
profit or loss.
The Group presents right-of-use assets in property, plant and equipment, the same line item as it presents
underlying assets of the same nature that it owns. The right-of-use assets is initially measured at cost and
subsequently at cost less any accumulated depreciation and impairment losses and adjusted for certain
remeasurements of the lease liability.
In a statement of comprehensive income, the lessee reports interest expense and (straight-line) depreciation
of a right-of-use asset. A company (lessee) depreciates an asset in accordance with the requirements of the
IAS 16. The asset is depreciated from the commencement date to the end of the lease term. If the underlying
asset is transferred to the Group at the end of the lease term, the right-of-use asset is depreciated over the
useful life of the underlying asset.
Service part of a lease payment
Companies within the Group accounting for leases of vehicles do not separate the service fee from the lease
payments. Total lease payments are used to calculate the lease liability. For other leasing contracts the
Annual Financial Report for the year 2025 – Section V.
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2025
25
service fee is separated from the lease payments. Service fee is recognised as a current expense in statement
o
f comprehensive income, remaining part is used to calculate the leasing liability.
Lease term
The lease term is determined at the lease commencement date as the non-cancellable period together with
periods covered by an extension (or by a termination) option if the Group is reasonably certain to exercise
such option.
Where the lease contract is concluded for an indefinite period with option to terminate the lease available
both to the lessor and the lessee, the Group assesses the lease term as the longer of (i) notice period to
terminate the lease and, (ii) period over which there are present significant economic penalties that
disincentives the Group from terminating the lease. In case the assessed lease term is for a period below 12
months, the Group applies the short-term recognition exemption.
Renewal options
The Group has applied judgement to determine the lease term for some lease contracts in which it is a lessee
that include renewal options. The assessment of whether the Group is reasonably certain to exercise such
options impacts the lease term, which significantly affects the amount of lease liabilities and right-of-use
assets recognised.
(n) Revenue
i. Revenues from contracts with customers
The Group applies a five-step model to determine when to recognise revenue, and at what amount. The
model specifies that revenue should be recognised when (or as) an entity transfers control of goods or
services to a customer at the amount to which the entity expects to be entitled. Depending on the criteria
for meeting the performance obligation, the revenue is recognised:
●
over time, in a manner that depicts the entity’s performance; or
●
at a point in time, when control of the goods or services is transferred to the customer.
Sales transactions usually contain variable consideration and usually do not contain significant financing
component. Certain sales transactions contain also non-cash consideration.
The Group has identified following main sources of Revenue in scope of IFRS 15 (for complete source of
Group’s revenues refer to Note 7 – Revenues, for more information on contracts with customers refer to
Note 5 – Operating segments):
●
Revenues from sale of gas, electricity, heat or other energy products (energy products)
Revenues from power production (wholesale) are recognized based on the volume of power delivered to
the grid and price per contract or as of the market price on the energy exchange.
The Group recognises the revenue upon delivery of the energy products to the customer. The moment of
the transfer of the control over the products is considered at the moment of delivery, i.e. when the customer
gains the benefits and the Group fulfils the performance obligation.
Revenues from energy supply to end consumers are measured using transaction prices allocated to those
goods transferred, reflecting the volume of energy supplied, including the estimated volume supplied
between last invoice date and end of the period. For retail customers advance payments are required in
general based on historical consumption, those are settled when the actual supplied volumes are known.
While commercial customers are usually invoiced with higher frequency based on actually volumes
supplied.
Where the Group acts as energy provider it was analysed if the distribution service invoiced is recognised
as revenue from customers under IFRS 15. Judgement may be required to determine whether the Group
acts as principal or agent in those cases. It has been concluded that the Group acts as a principal because it
has the inventory risk for distribution services, and therefore materially all distribution services which are
billed to its customers as part of the revenues from energy delivery are presented gross in the statement of
comprehensive income.
Annual Financial Report for the year 2025 – Section V.
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2025
26
●
Gas and electricity infrastructure services
The Group provides services connected with the infrastructure by providing transmission or distribution
of energy products or by providing storage capacities. Some of these services include ship-or-pay clauses
(at gas transmission business) and store-or-pay clauses (at gas storage business), which reserve daily or
monthly capacity for the customer with corresponding billing. The revenues from all these contracts are
recognised over the time of contract. As the Group fulfils the performance obligation arisen from those
contracts over the time of the contract, the revenues are recognised based on reserved capacity (gas
transmission, gas distribution and gas storage) or distributed volume of energy (electricity and heat
distribution).
The transaction price comprises of fix consideration (nominated capacity fees) and variable consideration
(fee adjustments based on transmitted/distributed volume, and fee adjustment based on difference in
quality of transmitted gas on input and output). The variable consideration is recognized as incurred as it
is constrained by uncertainty related to factors outside the Group’s influence (such as energy demand
volatility and weather conditions). The services are generally billed on monthly basis.
In case of transmission services part of the remuneration might be collected in the form of non-cash
consideration provided in the form of natural gas (payment for gas transmission services). The Group
measures the non-cash consideration received at fair value at the date of transaction.
The Group has evaluated that the several items of gas and electricity equipment (typically connection
terminals) obtained “free of charge” from developers and from local authorities does not represent a grant
(because in such cases the local authorities act in the role of a developer) and do not constitute a distinct
performance obligation. This equipment is recorded as property, plant, and equipment at the costs incurred
by the developers and local authorities with a corresponding amount recorded as contract liability as receipt
of the free of charge property is related to obligation to distribute energy to the customers (a non-cash
consideration). These costs approximate the fair value of the obtained assets.
ii. Derivatives where the underlying asset is a commodity
Cash-settled contracts and contracts that do not qualify for the application of the own-use exemption are
regarded as trading derivatives.
The following procedure applies to other commodity and financial derivatives that are not designated as
hedging derivatives and are not intended for the sale of electricity from the Group’s sources, for delivery
to end customers or for consumption as a part of the Group’s ordinary business (the own-use exemption is
not applied).
At the date of the financial statements, trading derivatives are measured at fair value. The change in fair
value is recognised in profit or loss. The measurement effect for commodity derivatives with emission
rights is included in line item “Emission rights, net”.
iii. Rental income
Rental income from investment property is recognised in profit or loss on a straight-line basis over the term
of the lease.
(o) Government grants
Government grants are recognised initially at fair value as deferred income when there is reasonable
assurance that they will be received and that the Company will comply with the conditions associated with
the grant. Grants that compensate the Company for expenses incurred are recognised in profit or loss on a
systematic basis in the same periods in which the expenses the grant is intended to compensate are
recognised. Grants that compensate the Company for the cost of an asset are recognised in profit or loss on
a systematic basis over the useful life of the asset.
(p) Finance income and costs
i. Finance income
Finance income comprises interest income on funds invested, dividend income, changes in the fair value
of financial assets at fair value through profit or loss, foreign currency gains, gains on sale of investments
Annual Financial Report for the year 2025 – Section V.
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2025
27
in securities and gains on hedging instruments that are recognised in profit or loss. Interest income is
recognised in profit or loss as it accrues, using the effective interest method. Dividend income is recognised
in profit or loss on the date that the Group’s right to receive payment is established.
ii. Finance costs
Finance costs comprise interest expense on borrowings, unwinding of the discount on provisions, foreign
currency losses, changes in the fair value of financial assets at fair value through profit or loss, fees and
commissions expense for payment transactions and guarantees, impairment losses recognised on financial
assets, and losses on hedging instruments that are recognised in profit or loss.
iii. Borrowing costs
Borrowing costs that arise in connection with the acquisition, construction or production of a qualifying
asset, from the time of acquisition or from the beginning of construction or production until entry into
service, are capitalised and subsequently amortised alongside the related asset. In the case of a specific
financing arrangement, the respective borrowing costs for that arrangement are used. For non-specific
financing arrangements, borrowing costs to be capitalised are determined based on a weighted average of
the borrowing costs.
(q) Income taxes
Income taxes comprise current and deferred tax. Income taxes are recognised in profit or loss, except to the
extent that they relate to a business combination or to items recognised directly in equity or in other
comprehensive income.
Current tax is the expected tax payable or receivable on the taxable income or loss for the reporting period,
using tax rates enacted at the reporting date, and any adjustment to tax payable in respect of previous years.
Deferred tax is measured using the balance sheet method, providing for temporary differences between the
carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation
purposes. No deferred tax is recognised on the following temporary differences: temporary differences
arising from the initial recognition of assets or liabilities that is not a business combination and that affects
neither accounting nor taxable profit or loss, and temporary differences relating to investments in
subsidiaries and jointly controlled entities to the extent that it is probable that they will not reverse in the
foreseeable future. No deferred tax is recognised on the initial recognition of goodwill.
The amount of deferred tax is based on the expected manner of realisation or settlement of the temporary
differences, using tax rates enacted or substantively enacted at the reporting date.
Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax
liabilities and assets, and they relate to income taxes levied by the same tax authority on the same taxable
entity, or on different tax entities, but there is an intention to settle current tax liabilities and assets on a net
basis, or the tax assets and liabilities will be realised simultaneously.
A deferred tax asset is recognised only to the extent that it is probable that future taxable profits will be
available against which the unused tax losses, tax credits and deductible temporary differences can be
utilised. Deferred tax assets are reduced to the extent that it is no longer probable that the related tax benefit
will be realised.
(r) Dividends
Dividends are recognised as distributions within equity upon approval by the Company’s shareholders.
(s) Segment reporting
Due to the fact that the Group has issued debentures (Senior Secured Notes) listed on the Stock Exchange,
the Group reports segmental information in accordance with IFRS 8.
Segment results that are reported to the Group’s board of directors (the chief operating decision maker)
include items directly attributable to the segment as well as those that can be allocated on a reasonable
basis.
Annual Financial Report for the year 2025 – Section V.
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2025
28
4. Determination of fair values
Several of the Group’s accounting policies and disclosures require the determination of fair value, for both
financial and non-financial assets and liabilities. Fair values have been determined for measurement and/or
disclosure purposes based on the following methods. When applicable, further information about the
assumptions made in determining fair values is disclosed in the notes specific to that asset or liability.
(a)
Property, plant and equipment
The fair value of property, plant and equipment recognised as a result of a business combination is based
on three different approaches which may be employed to determine the fair value:
Market approach
identical or comparable (i.e. similar) assets, liabilities or a group of assets and liabilities, such as a business.
For example, valuation techniques consistent with the market approach often use market multiples derived
from a set of comparables.
Income approach
discounted) amount. When the income approach is used, the fair value measurement reflects current market
expectations about those future amounts.
Cost approach
replacement or reproduction cost. The depreciated replacement cost approach involves establishing the
gross current replacement cost of the asset, and then depreciating this value to reflect the anticipated
effective working life of the asset from new, the age of the asset, the estimated residual value at the end of
the asset's working life and the loss in service potential
IFRS 13 requires fair value measurements of assets to assume the highest and best use of the asset by market
participants, provided that the use is physically possible, financially feasible and not illegal. Highest and
best use might differ from the intended use by an individual acquirer. Although all three valuation
approaches should be considered in the valuation analysis, the fact pattern surrounding each business
combination, the purpose of valuation, the nature of the assets, and the availability of data dictate which
approach or approaches including accounting-oriented approaches are ultimately utilized to calculate the
value of each tangible asset.
Selected items of property, plant and equipment – the gas transmission pipeline owned and operated by
eustream, a.s. (“Eustream”) and the gas distribution pipelines owned and operated by SPP – distribúcia, a.s.
(“SPPD”) – are recognized in revalued amount in accordance with IAS 16 since 1 January 2019 and 1
January 2020, respectively. The revalued amount represents the fair value as at the date of the most recent
revaluation, net of any subsequent accumulated depreciation and subsequent accumulated impairment. The
most recent revaluation was prepared as at 30 June 2024 for Eustream and as at 1 January 2023 for SPPD
by an independent expert and will be carried out regularly (at least every five years), so that the carrying
amount does not differ materially from the amount recognised on the balance sheet date using fair values.
Each revaluation was conducted by an independent expert who used mainly the depreciated replacement
cost approach supported by the market approach for some types of assets. In general, the replacement cost
method was used and the indexed historical cost method for assets where reproductive rates were not
available. By determining the fair value of individual assets with the cost approach, physical deterioration,
plus technological and economic obsolescence of assets was acknowledged.
The assumptions used in the revaluation model are based on the reports of the independent appraisers. The
resulting reported amounts of these assets and the related revaluation surplus of assets do not necessarily
represent the value in which these assets could or will be sold. There are uncertainties about future economic
conditions, geopolitics, changes in technology, trends and preferences in terms of environmental
sustainability and the competitive environment within the industry, which could potentially result in future
adjustments to estimated revaluations and useful lives of assets that can significantly modify the reported
financial position and profit. For further information, refer to Note 15 – Property, plant and equipment.
(b)
Intangible assets
The fair value of intangible assets recognised as a result of a business combination is based on the
discounted cash flows expected to be derived from the use or eventual sale of the assets.
Annual Financial Report for the year 2025 – Section V.
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2025
29
(c)
Inventories
The fair value of inventories acquired in a business combination is determined based on the estimated
selling price in the ordinary course of business less the estimated costs of completion and sale, and a
reasonable profit margin based on the effort required to complete and sell the inventories.
(d)
Non-derivative financial assets
The fair value of financial assets at fair value through profit or loss, debt and equity instruments at FVOCI
and financial assets at amortized cost is based on their quoted market price at the reporting date without
any deduction for transaction costs. If a quoted market price is not available, the fair value of the instrument
is estimated by management using pricing models or discounted cash flows techniques.
Where discounted cash flow techniques are used, estimated future cash flows are based on management’s
best estimates and the discount rate is a market-related rate at the reporting date for an instrument with
similar terms and conditions. Where pricing models are used, inputs are based on market-related measures
at the reporting date.
The fair value of trade and other receivables is estimated as the present value of future cash flows,
discounted at the market rate of interest at the reporting date.
The fair value of trade and other receivables and of financial assets at amortized cost is determined for
disclosure purposes only.
(e)
Non-derivative financial liabilities
Fair value, which is determined for disclosure purposes, is calculated based on the present value of future
principal and interest cash flows, discounted at the market rate of interest at the reporting date. For finance
leases the market rate of interest is determined by reference to similar lease agreements.
(f)
Derivatives
The fair value of forward electricity and gas contracts is based on their listed market price, if available. If
a listed market price is not available, then fair value is estimated by discounting the difference between the
contractual forward price and the current forward price for the residual maturity of the contract using a risk-
free interest rate (based on zero coupon rates).
The fair value of interest rate swaps is based on broker quotes or internal valuations based on market prices.
Those quotes or valuations are tested for reasonableness by discounting estimated future cash flows based
on the terms and maturity of each contract and using market interest rates for a similar instrument at the
measurement date.
The fair value of other derivatives (exchange rate, commodity, foreign CPI indices) embedded in a contract
is estimated by discounting the difference between the forward values and the current values for the residual
maturity of the contract using a risk-free interest rate (based on zero coupon rates).
Fair values reflect the credit risk of the instrument and include adjustments to take account of the credit risk
of the Group entity and counterparty when appropriate.
Annual Financial Report for the year 2025 – Section V.
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2025
30
5. Operating segments
The Group operates in four reportable segments under IFRS 8: Gas transmission, Gas and power
distribution, Gas storage and Heat Infra.
The Group identifies its operating segments at the level of each legal entity, with Group management
monitoring the performance of each entity through monthly management reporting. Operating segments
are aggregated into four reportable segments mainly based on the nature of the services provided. A
description of each segment is provided in the following paragraphs. Each reportable segment aggregates
entities with similar economic characteristics (type of services provided, commodities involved and
regulatory environment), except for the Gas transmission segment, which includes only a single entity.
Internal reports used by the EPIF’s “chief operating decision maker” (Board of Directors) to allocate
resources and assess performance are aligned with these reportable segments. Major indicators used by the
Board of Directors to measure these segments’ performance are Underlying EBITDA and CAPEX.
Transfer prices between operating segments are on an arm’s-length basis in a manner similar to transactions
with third parties.
i.
The Gas and power distribution segment consists of the Power distribution division, the Gas distribution
division and the Supply division. The Power distribution division distributes electricity in the central region
of Slovakia, while the Gas distribution division is responsible for the distribution of natural gas, covering
almost the entire gas distribution network in Slovakia. The Supply division primarily supplies power and
natural gas to end-consumers in the Czech Republic and Slovakia. This segment is mainly represented by
Stredoslovenská energetika Holding, a.s. (further “SSE”), Stredoslovenská distribučná, a.s. (further
“SSD”), SPP – distribúcia, a.s. (further “SPPD”), EP ENERGY TRADING, a.s. (further “EPET”), and
Dobrá Energie s.r.o.
The companies SPPD and SSD, which provide the distribution of natural gas and power, respectively, are
required by law to provide non-discriminatory access to the distribution network. Prices are subject to
review and approval by the Regulatory Office for Network Industries (“RONI”). Both entities operate under
regulatory framework where allowed revenues are based primarily on the Regulated Asset Base (“RAB”)
multiplied by the allowed regulatory WACC plus eligible operating expenditures and allowed depreciation
in line with regulatory frameworks in other Western European countries. All key tariff parameters are set
for a given regulatory period of five years, with the current regulatory period having started in January
2023.
Revenue from sales of electricity and gas is recognised when the electricity and gas are delivered to the
customer. With respect to SSE, RONI regulates certain aspects of SSE’s relationships with its customers
including the pricing of electricity, gas and services provided to certain SSE customers. Prices of electricity
and gas for households and small business are regulated by RONI, while prices for wholesale customers
are not regulated. In the Czech Republic, prices for end-consumers in supply activities are typically not
regulated.
EPET and SSE are involved in buying and selling power. Selling includes transactions in the wholesale
electricity market for power generated by the Group within its Heat Infra Business. Buying involves the
procurement of electricity and natural gas to meet customer demand as part of the division’s supply
activities. Most of the Group's transactions are conducted on a back-to-back basis.
ii.
Gas transmission
The Group’s Gas Transmission Business is operated through Eustream, which is the owner and operator of
one of the main European gas pipelines and is the only gas transmission system operator in the Slovak
Republic. The transmission network of Eustream has a unique position, supplying gas to Central European
2
Underlying EBITDA represents the profit (loss) for the year before income tax expenses, finance expense, finance income, change in impairment losses on
financial instruments and other financial assets, share of profit (loss) of equity accounted investees, net of tax, gain (loss) on disposal of subsidiaries,
bargain purchase gain and depreciation, amortisation and impairment
3
statement of cash flows of the Group
Annual Financial Report for the year 2025 – Section V.
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2025
31
and Southern European gas markets, irrespective of the gas source and flow patterns. It is also the largest
and historically most used natural gas import route to Ukraine from Western Europe.
Eustream generates revenue primarily by charging tariffs for the transmission of gas through its pipelines.
Shippers are obliged to pay the capacity fees for the booked capacity irrespective of whether such capacity
is utilised by the shipper as all contracts, regardless of duration, are based on a 100 per cent. ship-or-pay
principle.
The transmission fees are based on a floating tariff for all entry and exit points, enabling tariff adjustments
in the event of significant changes in economic parameters, even for existing contracts (this change will not
apply to existing long-term contracts that have a fixed operating schedule). In addition to the transmission
fees, network users are required to provide gas in-kind for operational needs, predominantly as a fixed
percentage of commercial gas transmission volume at each entry and exit point. The network users may
agree with Eustream to provide gas in-kind in a financial form. Gas for operational needs covers, among
other things, the energy needs for the operation of compressors and the gas balance differences related to
the measurement of gas flows. As Eustream is legally responsible for network balance, it sells any gas in-
kind it has received that is not consumed. Since the volume of gas in-kind is variable, any revenue from
this mandatory sale of residual gas in-kind is also variable.
iii.
Gas storage
The Gas storage segment is represented by NAFTA a.s., POZAGAS a.s., NAFTA Germany GmbH and its
subsidiaries and SPP Storage, s.r.o., which store natural gas primarily under long-term contracts in
underground storage facilities located in
.
The Group stores natural gas at two locations in Slovakia and the
, and at three locations in
Germany. Additionally, NAFTA a.s. and POZAGAS a.s. sell a part of their storage capacity at the Austrian
Virtual Trading Point and pay entry-exit fees related to access to the Austrian market. Storage facilities
play a pivotal role in ensuring the security of gas supply by accommodating injection, withdrawal, and
storage of natural gas based on seasonal demand, in compliance with relevant legislation. Capacities are
also utilized to capitalize on short-term market volatility in gas prices, allowing for effective management
and optimization in response to fluctuations. The bulk of storage capacity is reserved through long-term
contracts. The pricing mechanisms differ, incorporating either adjustments for inflation along with standard
price revision clauses, or formulas based on actual market spreads. All contracts are subject to a store-or-
pay obligation.
iv.
Heat Infra
The Heat Infra segment comprises entities engaged in the production and distribution of heat in the Czech
Republic. The segment includes Plzeňská teplárenská, a.s. (“PLTEP”), EOP Distribuce, a.s. (“EOP HN”),
and Severočeská teplárenská, a.s. (“ST”), which continue to operate within the Group as key district heating
and combined heat and power providers.
Until 31 March 2025, the segment also included Elektrárny Opatovice, a.s., United Energy, a.s., EP
Sourcing, a.s. and EP Cargo a.s. These entities were divested on that date as part of the Group’s strategic
refocusing on regulated and long-term contracted infrastructure assets. Accordingly, their financial
performance is reflected within segment disclosures only for the period up to the date of disposal (see Note
6).
Other
The Other operations mainly represent three solar power plants and one wind farm in the Czech Republic
and two solar power plants and a biogas facility in Slovakia. Other entities included in the segment are EP
Infrastructure, a.s., EP Energy, a.s., Slovak Gas Holding B.V., SPP Infrastructure, a.s. and Czech Gas
Holding Investment B.V.
Annual Financial Report for the year 2025 – Section V.
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2025
32
Profit or loss | ||||||||
For the year ended 31 December 2025 | ||||||||
In millions of EUR | Gas and power distribution | Gas transmission | Gas storage | Heat Infra | Total segments | Other | Inter-segment eliminations | Consolidated financial information |
Revenues: Energy and related services | 2,345 | 244 | 270 | 318 | 3,177 | 2 | (131) | 3,048 |
external revenues | 2,335 | 244 | 234 | 233 | 3,046 | 2 | - | 3,048 |
of which: Electricity | 1,574 | - | - | 23 | 1,597 | 2 | - | 1,599 |
761 | 244 | 234 | - | 1,239 | - | - | 1,239 | |
- | - | - | 210 | 210 | - | - | 210 | |
inter-segment revenues | 10 | - | 36 | 85 | 131 | - | (131) | - |
Revenues: Logistics and freight services | - | - | - | 7 | 7 | - | - | 7 |
external revenues | - | - | - | 7 | 7 | - | - | 7 |
inter-segment revenues | - | - | - | - | - | - | - | - |
Revenues: Other | 20 | - | 4 | 29 | 53 | 11 | - | 64 |
external revenues | 20 | - | 4 | 29 | 53 | 11 | - | 64 |
inter-segment revenues | - | - | - | - | - | - | - | - |
Gain (loss) from commodity derivatives net | (4) | - | - | - | (4) | - | - | (4) |
Total revenues | 2,361 | 244 | 274 | 354 | 3,233 | 13 | (131) | 3,115 |
Purchases and consumables: Energy and related | (1,543) | (35) | (9) | (139) | (1,726) | (3) | 95 | (1,634) |
external Purchases and consumables | (1,457) | (33) | (8) | (133) | (1,631) | (3) | - | (1,634) |
inter-segment Purchases and consumables | (86) | (2) | (1) | (6) | (95) | - | 95 | - |
Total Purchases and consumables | (1,543) | (35) | (9) | (139) | (1,726) | (3) | 95 | (1,634) |
Services | (127) | (8) | (39) | (40) | (214) | (5) | 36 | (183) |
Personnel expenses | (156) | (31) | (43) | (33) | (263) | (8) | - | (271) |
Depreciation, amortisation and impairment | (252) | (115) | (35) | (31) | (433) | (3) | - | (436) |
Emission rights, net | - | - | (1) | (58) | (59) | - | - | (59) |
Operating work capitalized to fixed assets | 31 | 1 | 6 | 1 | 39 | - | - | 39 |
Other operating income (expense), net | 6 | - | 3 | 3 | 12 | (1) | - | 11 |
Profit (loss) from operations | 320 | 56 | 156 | 57 | 589 | (7) | - | 582 |
Finance income | 19 | 9 | 7 | 7 | 42 | * 437 | * (451) | 28 |
external finance income | 12 | 9 | 4 | - | 25 | 3 | - | 28 |
inter-segment finance income | 7 | - | 3 | 7 | 17 | * 434 | * (451) | - |
Finance expense | (13) | (20) | (6) | (4) | (43) | (69) | 22 | (90) |
Net finance income (expense) | 6 | (11) | 1 | 3 | (1) | 368 | (429) | (62) |
Gain (loss) on disposal of subsidiaries | - | - | - | - | - | 103 | - | 103 |
Profit (loss) before income tax | 326 | 45 | 157 | 60 | 588 | * 464 | * (429) | 623 |
Income tax expenses | (82) | (11) | (41) | (11) | (145) | (3) | - | (148) |
Profit (loss) for the year | 244 | 34 | 116 | 49 | 443 | * 461 | * (429) | 475 |
* | ||||||||
Other financial information: | ||||||||
Underlying EBITDA (1) | 572 | 171 | 191 | 88 | 1,022 | (4) | - | 1,018 |
(1) accounted investees, net of tax, gain (loss) |
Annual Financial Report for the year 2025 – Section V.
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2025
33
For the year ended 31 December 2024 | ||||||||
In millions of EUR | Gas and power distribution | Gas transmission | Gas storage | Heat Infra | Total segments | Other | Inter-segment eliminations | Consolidated financial information |
Revenues: Energy and related services | 2,429 | 483 | 347 | 418 | 3,677 | 5 | (252) | 3,430 |
external revenues | 2,398 | 483 | 312 | 232 | 3,425 | 5 | - | 3,430 |
of which: Electricity | 1,632 | - | - | 44 | 1,676 | 5 | - | 1,681 |
766 | 483 | 312 | - | 1,561 | - | - | 1,561 | |
- | - | - | 188 | 188 | - | - | 188 | |
inter-segment revenues | 31 | - | 35 | 186 | 252 | - | (252) | - |
Revenues: Logistics and freight services | - | - | - | 46 | 46 | - | - | 46 |
external revenues | - | - | - | 46 | 46 | - | - | 46 |
inter-segment revenues | - | - | - | - | - | - | - | - |
Revenues: Other | 19 | - | 8 | 22 | 49 | 8 | (1) | 56 |
external revenues | 19 | - | 8 | 22 | 49 | 8 | (2) | 55 |
inter-segment revenues | - | - | - | - | - | - | 1 | 1 |
Gain (loss) from commodity and freight | 49 | - | - | - | 49 | - | - | 49 |
Total revenues | 2,497 | 483 | 355 | 486 | 3,821 | 13 | (253) | 3,581 |
Purchases and consumables: Energy and related | (1,663) | (31) | (12) | (143) | (1,849) | (3) | 217 | (1,635) |
external Purchases and consumables | (1,477) | (16) | (10) | (129) | (1,632) | (3) | - | (1,635) |
inter-segment Purchases and consumables | (186) | (15) | (2) | (14) | (217) | - | 217 | - |
Total Purchases and consumables | (1,663) | (31) | (12) | (143) | (1,849) | (3) | 217 | (1,635) |
Services | (126) | (9) | (31) | (81) | (247) | (6) | 37 | (216) |
Personnel expenses | (149) | (31) | (39) | (54) | (273) | (7) | - | (280) |
Depreciation, amortisation and impairment | (245) | (112) | (28) | (53) | (438) | (3) | - | (441) |
Emission rights, net | - | - | (1) | (115) | (116) | - | - | (116) |
Operating work capitalized to fixed assets | 28 | 1 | 2 | 2 | 33 | - | - | 33 |
Other operating income (expense), net | 10 | - | 4 | - | 14 | (1) | (1) | 12 |
Profit (loss) from operations | 352 | 301 | 250 | 42 | 945 | (7) | - | 938 |
Finance income | 29 | 19 | 15 | 11 | 74 | * 546 | * (542) | 78 |
external finance income | 21 | 19 | 7 | 4 | 51 | 27 | - | 78 |
inter-segment finance income | 8 | - | 8 | 7 | 23 | * 519 | * (542) | - |
Change in impairment losses on financial instruments assets | 2 | - | (1) | - | 1 | - | - | 1 |
Finance expense | (15) | (35) | (7) | (5) | (62) | (91) | 45 | (108) |
Net finance income (expense) | 16 | (16) | 7 | 6 | 13 | 455 | (497) | (29) |
Profit (loss) before income tax | 368 | 285 | 257 | 48 | 958 | * 448 | * (497) | 909 |
Income tax expenses | (145) | (117) | (68) | (12) | (342) | (12) | - | (354) |
Profit (loss) for the year | 223 | 168 | 189 | 36 | 616 | * 436 | * (497) | 555 |
* | ||||||||
Other financial information: | ||||||||
Underlying EBITDA (1) | 597 | 413 | 278 | 95 | 1,383 | (4) | - | 1,379 |
(1) accounted investees, net of tax, gain (loss) |
Annual Financial Report for the year 2025 – Section V.
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2025
34
Underlying EBITDA reconciliation to the closest IFRS measure
The underlying EBITDA reconciles to the profit as follows:
For the year ended 31 December 2025 | ||||||||
In millions of EUR | Gas and power distribution | Gas transmission | Gas storage | Heat Infra | Total segments | Other | Inter-segment eliminations | Consolidated financial information |
Underlying EBITDA | 572 | 171 | 191 | 88 | 1,022 | (4) | - | 1,018 |
Depreciation, amortisations and impairment* | (252) | (115) | (35) | (31) | (433) | (3) | - | (436) |
Finance income | 19 | 9 | 7 | 7 | 42 | 437 | (451) | 28 |
Change in impairment losses on financial instruments assets | - | - | - | - | - | - | - | - |
Finance expense | (13) | (20) | (6) | (4) | (43) | (69) | 22 | (90) |
Gain (loss) on disposal of subsidiaries | - | - | - | - | - | 103 | - | 103 |
Income tax | (82) | (11) | (41) | (11) | (145) | (3) | - | (148) |
Profit (loss) for the year | 244 | 34 | 116 | 49 | 443 | 461 | (429) | 475 |
* | ||||||||
For the year ended 31 December 2024 | ||||||||
In millions of EUR | Gas and power distribution | Gas transmission | Gas storage | Heat Infra | Total segments | Other | Inter-segment eliminations | Consolidated financial information |
Underlying EBITDA | 597 | 413 | 278 | 95 | 1,383 | (4) | - | 1,379 |
Depreciation, amortisations and impairment* | (245) | (112) | (28) | (53) | (438) | (3) | - | (441) |
Finance income | 29 | 19 | 15 | 11 | 74 | 546 | (542) | 78 |
Change in impairment losses on financial instruments assets | 2 | - | (1) | - | 1 | - | - | 1 |
Finance expense | (15) | (35) | (7) | (5) | (62) | (91) | 45 | (108) |
Income tax | (145) | (117) | (68) | (12) | (342) | (12) | - | (354) |
Profit (loss) for the year | 223 | 168 | 189 | 36 | 616 | 436 | (497) | 555 |
* million. |
Annual Financial Report for the year 2025 – Section V.
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2025
35
Segment assets and liabilities | ||||||||
For the year ended 31 December 2025 | ||||||||
In millions of EUR | Gas and power distribution | Gas transmission | Gas storage | Heat Infra | Total reportable segments | Other | Inter- segment eliminations | Consolidated financial information |
Reportable segment assets | 6,039 | 3,983 | 919 | 544 | 11,485 | 767 | (448) | 11,804 |
Reportable segment liabilities | (2,189) | (1,559) | (329) | (123) | (4,200) | (3,102) | 448 | (6,854) |
Additions to tangible and intangible assets (1) | 169 | 3 | 27 | 90 | 289 | 7 | - | 296 |
Acquisition of property, plant and equipment, investment property and intangible assets (excl. emission rights, right-of- use assets and goodwill) | 143 | 2 | 25 | 64 | 234 | 7 | - | 241 |
Equity accounted investees | 1 | - | - | - | 1 | - | - | 1 |
(1) | ||||||||
For the year ended 31 December 2024 | ||||||||
In millions of EUR | Gas and power distribution | Gas transmission | Gas storage | Heat Infra | Total reportable segments | Other | Inter-segment eliminations | Consolidated financial information |
Reportable segment assets | 6,204 | 4,529 | 992 | 980 | 12,705 | 1,059 | (1,168) | 12,596 |
Reportable segment liabilities | (2,294) | (2,146) | (350) | (361) | (5,151) | (3,092) | 1,168 | (7,075) |
Additions to tangible and intangible assets (1) | 151 | 4 | 24 | 194 | 373 | 2 | - | 375 |
Acquisition of property, plant and equipment, investment property and intangible assets (excl. emission rights and goodwill) | 130 | 3 | 20 | 89 | 242 | 2 | - | 244 |
Equity accounted investees | 1 | - | - | - | 1 | - | - | 1 |
(1) |
Annual Financial Report for the year 2025 – Section V.
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2025
36
Information about geographical areas
In presenting information based on geography, segment revenue is based on the geographical location of
delivery of goods and services and segment assets are based on the geographical location of the assets.
As of the year ended 31 December 2025 | |||||||
In millions of EUR | Czech Republic | Slovakia | Germany | Total | |||
Property, plant and equipment | 342 | 8,763 | 137 | 9,242 | |||
Intangible assets and goodwill | 125 | 49 | 1 | 175 | |||
Total | 467 | 8,812 | 138 | 9,417 | |||
For the year ended 31 December 2025 | |||||||
In millions of EUR | Czech Republic | Slovakia | Germany | Other* | Total | ||
Revenues: Electricity | 634 | 962 | - | 3 | 1,599 | ||
Revenues: Gas | 199 | 732 | 55 | 253 | 1,239 | ||
Revenues: Heat | 210 | - | - | - | 210 | ||
Revenues: Logistics and freight services | 3 | - | 3 | 1 | 7 | ||
Revenues: Other | 39 | 25 | - | - | 64 | ||
Gain (loss) from commodity derivatives for trading with electricity and gas, net | (4) | - | - | - | (4) | ||
Total | 1,081 | 1,719 | 58 | 257 | 3,115 | ||
* France and the United Kingdom. | |||||||
As of the year ended 31 December 2024 | |||||||
In millions of EUR | Czech Republic | Slovakia | Germany | Total | |||
Property, plant and equipment | 605 | 8,961 | 154 | 9,720 | |||
Intangible assets and goodwill | 236 | 46 | 2 | 284 | |||
Total | 841 | 9,007 | 156 | 10,004 | |||
For the year ended 31 December 2024 | |||||||
In millions of EUR | Czech Republic | Slovakia | Germany | Other* | Total | ||
Revenues: Electricity | 659 | 972 | - | 50 | 1,681 | ||
Revenues: Gas | 200 | 983 | 67 | 311 | 1,561 | ||
Revenues: Heat | 188 | - | - | - | 188 | ||
Revenues: Logistics and freight services | 16 | 1 | 22 | 7 | 46 | ||
Revenues: Other | 31 | 22 | 2 | 1 | 56 | ||
Gain (loss) from commodity derivatives for trading with electricity and gas, net | 49 | - | - | - | 49 | ||
Total | 1,143 | 1,978 | 91 | 369 | 3,581 | ||
* United Kingdom. | |||||||
Annual Financial Report for the year 2025 – Section V.
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2025
37
6. Acquisitions and disposals of subsidiaries, joint-ventures and associates
(a)
Acquisitions and step-acquisitions
i.
31 December 2025 and 2024
There were no significant acquisitions or step-acquisitions in 2025 and in 2024.
(b
)
Disposal of investments
i.
31 December 2025
On 31 March 2025, the Group disposed 100% interest in Elektrárny Opatovice, a.s., United Energy, a.s.,
EP Sourcing, a.s. and EP Cargo a.s. This strategic disposal allows EPIF to concentrate on its core
infrastructure activities, with the majority of its revenue being regulated and/or long term contracted. In
particular, the Heat Infra segment of EPIF will now mainly focus on delivering heat to its customers,
procured from the disposed assets based on long-term heat delivery contracts.
In millions of EUR | Date of disposal | Equity interest disposed | Equity interest after disposal | |
% | % | |||
Subsidiaries disposed | ||||
Elektrárny Opatovice, a.s. | 31/3/2025 | 100 | - | |
United Energy, a.s. | 31/3/2025 | 100 | - | |
EP Sourcing, a.s. | 31/3/2025 | 100 | - | |
EP Cargo a.s. | 31/3/2025 | 100 | - |
There were no other significant disposals during the period.
The effect of disposal is provided in the following table, with disposed assets presented as negative
amounts and liabilities as positive amounts:
In millions of EUR | Net assets sold in the year ended 31 December 2025 | |
Property, plant and equipment | (307) | |
Intangible assets | (96) | |
Trade receivables and other assets | (40) | |
Inventories | (23) | |
Cash and cash equivalents | (113) | |
Current income tax receivable | (2) | |
Deferred tax asset | (1) | |
Provisions | 126 | |
Deferred tax liabilities | 16 | |
Loans and borrowings | 15 | |
Trade payables and other liabilities | 49 | |
Deferred income | 20 | |
Current income tax payable | 2 | |
Net identifiable assets and liabilities | (354) | |
GW not yet written off | (13) | |
Translation difference recycled to OCI | (3) | |
Net assets value disposed (A) | (370) | |
Total consideration | 473 | |
of which settled in cash (C) | 17 | |
Cash and cash equivalents disposed of (D) | (113) | |
Net cash inflows/(outflows) (C+D) | (96) | |
Gain (loss) on disposal (A+B) | 103 | |
The Group assessed whether the disposal of Elektrárny Opatovice, a.s., United Energy, a.s., EP Sourcing,
a.s. and EP Cargo a.s. on 31 March 2025 met the criteria for classification as a disposal group or
discontinued operation under IFRS 5. The disposal does not represent a separate major line of business or
Annual Financial Report for the year 2025 – Section V.
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2025
38
geographical area of operations, as the Group continues to operate its Heat Infra activities through other
significant subsidiaries. In addition, the assets and liabilities of the entities were not available for immediate
sale in their present condition nor marketed as a disposal group. Accordingly, the disposal was not classified
as a disposal group held for sale or as a discontinued operation under IFRS 5.
ii.
31 December 2024
There were no disposals in 2024.
7
.
Revenues
In millions of EUR | 2025 | 2024 | ||
Revenues: Energy and related services | ||||
1,599 | 1,681 | |||
1,239 | 1,561 | |||
210 | 188 | |||
Total Energy | 3,048 | 3,430 | ||
Revenues: Logistics and freight services | 7 | 46 | ||
Revenues: Other | 64 | 56 | ||
Total revenues | 3,119 | 3,532 | ||
Gain (loss) from commodity derivatives for trading with electricity and gas, net | (4) | 49 | ||
Total | 3,115 | 3,581 |
For disaggregation of revenue based on type of service and based on geographical area refer to Note 5 –
Operating segments.
Revenues from contracts with customers are recognised in accordance with IFRS 15 when control of the
promised goods or services is transferred to the customer.
Revenues Energy and related services: Gas consists primarily of revenue from gas transmission of EUR
244 million (2024: EUR 483 million), from distribution of gas of EUR 518 million (2024: EUR 512 million)
and gas storage of EUR 234 million (2024: EUR 312 million).
Revenues Energy and related services: Electricity consists primarily of sale of electricity of EUR 1,236
million (2024: EUR 1,286 million) and distribution of electricity of EUR 338 million (2024: EUR 377
million).
In 2025 and 2024 no revenue was recognised from performance obligations satisfied (or partially satisfied)
in previous periods.
Total revenues less total purchase and consumables are presented in line “Subtotal” in the statement of
comprehensive income.
Deferred income related to grid connection fees collected and free-of-charge non-current assets transferred
from customers.
Several items of gas equipment (typically connection terminals) were obtained “free of charge” from
developers and from local authorities (this does not represent a grant, because in such cases the local
authorities act in the role of a developer). This equipment was recorded as property, plant, and equipment
at the costs incurred by the developers and local authorities with a corresponding amount recorded as
contract liability as receipt of the free of charge property is related to obligation to provide services to the
customers in the future periods. These costs approximate the fair value of the obtained assets. This contract
Annual Financial Report for the year 2025 – Section V.
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2025
39
liability is released in the statement of comprehensive income on a straight-line basis in the amount of
depreciation charges of non-current tangible assets acquired free of charge.
Contract liabilities
Contract liabilities primarily relate to not invoiced part of fulfilled performance obligation, received
payments for services and goods where control over the assets was not transferred to customer. The whole
amount of EUR 108 million recognised in current contract liabilities at the beginning of the period has been
recognised as revenue during the year 2025.
8. Purchases and consumables
In millions of EUR | 2025 | 2024 | ||
Purchase cost of sold electricity | 1,204 | 1,207 | ||
Purchase cost of sold gas and other energy products | 249 | 218 | ||
Consumption of fuel and other material | 153 | 143 | ||
Other purchase costs | 20 | 54 | ||
Consumption of energy | 6 | 9 | ||
Changes in WIP, | (1) | 1 | ||
Other | 3 | 3 | ||
Total Purchases | 1,634 | 1,635 |
Purchases and consumables presented in the above table contains only cost of purchased energy and
purchased materials consumed in the course of the Group´s operations, while it does not contain directly
attributable overhead (particularly personnel expenses, depreciation and amortisation, repairs and
maintenance, emission rights, taxes and charges etc.), which are presented separately.
9. Services
In millions of EUR | 2025 | 2024 | ||
Repairs and maintenance | 46 | 51 | ||
Outsourcing and other administration fees | 33 | 37 | ||
Information technologies costs | 16 | 15 | ||
Network fees | 15 | 6 | ||
Advertising expenses | 13 | 14 | ||
Consulting expenses | 12 | 17 | ||
Transport expenses | 10 | 32 | ||
Rent expenses | 9 | 18 | ||
Industrial waste | 4 | 5 | ||
Insurance expenses | 4 | 4 | ||
Communication expenses | 4 | 3 | ||
Training, courses, conferences | 1 | 1 | ||
Security services | 1 | 1 | ||
Other | 15 | 12 | ||
Total | 183 | 216 |
The year-on-year decrease in services was driven primarily by lower transport and rental expenses,
reflecting the disposal of certain Heat Infra entities during the year (for more information see Note – 6).
Fees payable to statutory auditors
In millions of EUR | 2025 | 2024 | ||
Statutory audits | 2 | 2 | ||
Total | 2 | 2 |
The overview is based on an aggregation of fees paid or payable to statutory auditors by the Group. The
fees are recorded in 100% amount by all subsidiaries, associates and joint-ventures. Statutory audits include
Annual Financial Report for the year 2025 – Section V.
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2025
40
fees payable for statutory audits of financial statements. Services in addition to the Statutory audit include
primarily the following services:
●
Review of the condensed interim consolidated financial statements;
●
CSRD assurance service;
●
Expert opinion on R&D allowance;
●
Provision of Comfort letter
●
Other special reports (AUP over Slovak FS, Review report).
10. Personnel expenses
In millions of EUR | 2025 | 2024 | ||
Wages and salaries | 184 | 191 | ||
Compulsory social security contributions | 67 | 69 | ||
Board members’ remuneration (including boards of subsidiaries and joint- ventures) | 4 | 4 | ||
Expenses and revenues related to employee benefits (IAS 19) | 2 | 2 | ||
Other social expenses | 14 | 14 | ||
Total | 271 | 280 |
The average number of employees during 2025 was 5,342 (2024: 5,800), of which 69 were executives
(2024: 76).
11. Emission rights
In millions of EUR | 2025 | 2024 | ||
Deferred income (grant) released to profit and loss | (6) | (9) | ||
Creation and release of provision for emission rights | 65 | 125 | ||
Use of provision for emission rights | 37 | 178 | ||
Consumption of emission rights | (37) | (178) | ||
Total | 59 | 116 |
The decrease of emission rights cost is caused primarily by the disposal of United Energy a.s. and
Elektrárny Opatovice a.s. during 2025. The average market price of 1 piece of emission allowance changed
from 70.09 EUR/piece in 2024 to 71.71 EUR/piece in 2025.
4
Annual Financial Report for the year 2025 – Section V.
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2025
41
12. Other operating income (expense), net
In millions of EUR | 2025 | 2024 | ||
Property acquired free-of-charge and fees from customers | 6 | 6 | ||
Rental income | 9 | 7 | ||
Compensation from insurance and other companies | 2 | 4 | ||
Profit on disposal of tangible and intangible assets | 5 | 4 | ||
Consulting fees | 4 | 2 | ||
Contractual penalties | 2 | 3 | ||
Other* | 9 | 11 | ||
Other operating income | 37 | 37 | ||
Impairment losses | (1) | 4 | ||
Of which relates to: | (1) | 4 | ||
Office equipment and other material | (10) | (9) | ||
Taxes and charges | (6) | (6) | ||
Consulting expenses | (3) | (3) | ||
Shortages and damages | (1) | (1) | ||
Gifts and sponsorship | (2) | (2) | ||
Creation, reversal of provision | 3 | - | ||
Contractual penalties | - | (2) | ||
Other* | (6) | (6) | ||
Other operating expense | (26) | (25) | ||
Other operating income (expense), net | 11 | 12 | ||
* Other consists of miscellaneous items. No individual value exceeds EUR 1 million. | ||||
No material research and development expenses were recognised in profit and loss for the year ended
31 December 2025 and 31 December 2024.
13. Net finance income (expense)
Recognised in profit or loss | ||||
In millions of EUR | 2025 | 2024 | ||
Interest income | 28 | 62 | ||
Dividend income | 5 | 3 | ||
Profit from trading derivatives | 1 | 8 | ||
Profit (loss) from hedging derivatives | - | 2 | ||
Profit (loss) from sale of financial assets | 1 | (3) | ||
Net foreign exchange profit (loss) | (7) | 6 | ||
Total finance | 28 | 78 | ||
Change in impairment on financial assets | - | 1 | ||
Total change in impairment on financial assets | - | 1 | ||
Interest expense | (77) | (95) | ||
Interest expense from unwind of provision discounting | (6) | (6) | ||
Fees and commissions expense for other services | (7) | (7) | ||
Total finance | (90) | (108) | ||
Net finance income (expense) | (62) | (29) | ||
(1) While all derivatives are for risk management purposes, a portion of them does not meet accounting criteria for recognition as hedging instruments under IFRS 9 as further described under Note 3f. | ||||
Annual Financial Report for the year 2025 – Section V.
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2025
42
14. Income tax expenses
Income taxes recognized in profit or loss | ||||
In millions of EUR | 2025 | 2024 | ||
Current taxes: | ||||
Current year | (200) | (280) | ||
Adjustment for prior periods | 1 | (3) | ||
Withholding tax | (2) | (4) | ||
Total current | (201) | (287) | ||
Deferred taxes: | ||||
Origination and reversal of temporary differences | 53 | (67) | ||
Total deferred | 53 | (67) | ||
Total income | (148) | (354) | ||
(1) For details refer to Note 17 – Deferred tax assets and liabilities |
Balance of current income tax liability in amount of EUR 37 million (2024: EUR 107 million) is mainly
represented by SPP – distribúcia, a.s of EUR 11 million (2024: EUR 8 million), eustream, a.s. of EUR 9
million (2024: EUR 56 million), NAFTA a.s. of EUR 6 million (2024: EUR 0 million), NAFTA Germany
GmbH of EUR 4 million (2024: EUR 15 million), Dobrá Energie s.r.o. of EUR 3 million (2024: EUR 4
million), Stredoslovenská energetika Holding, a.s. of EUR 1 million (2024: EUR 7 million), EP ENERGY
TRADING, a.s. of EUR 1 million (2024: EUR 4 million) and EP Infrastructure, a.s. of EUR 0 million
(2024: EUR 8 million).
Deferred taxes are calculated using currently enacted tax rates expected to apply when the asset is realised
or the liability settled. According to Czech legislation the corporate income tax rate is 21% for fiscal year
2025 (21% for 2024). The Slovak corporate income tax rate is 24% for fiscal year 2025 (24% for 2024).
The German federal income tax rate is 27% for fiscal year 2025 (27% for 2024). Current year income tax
line includes also a special sector tax effective in Slovakia.
Top-up tax
The Group is within the scope of the OECD Pillar Two model rules starting from and including 2024.
In a nutshell, the Pillar Two rules provide that, if in certain jurisdictions where the Group operates the
effective tax rate (given by the ratio between adjusted accounting result and adjusted corporate income
taxes in the jurisdiction) falls below 15%, the Group will be required to pay an additional tax (so-called
top-up tax) to reach the 15% tax rate threshold.
The relevant set of rules also provides for a transition period in which the in-scope groups may avoid
undergoing the complex effective tax rate calculation required by the new piece of legislation. In particular,
the Pillar Two legislation provides for a transitional safe harbor (“TSH”) that is available for the 2025
period. TSH relies on simplified calculations, mainly based on data extracted from the Country-by-Country
Reporting under BEPS Action 13 and three types of alternative tests. In any jurisdiction where the Group
operates and the TSH test is satisfied, the top-up tax due for such jurisdiction will be deemed to be zero.
The Group has performed an assessment of its potential exposure for Pillar Two top-up taxes in 2025. The
assessment relies on the most recent information available regarding the financial performance of the
Group’s entities. This includes the 2024 Country-by-Country Reporting and available preliminary financial
data for 2025.
Based on the assessment performed, most jurisdictions where the Group has operations should benefit from
the TSH. For countries where the Group might not benefit from the TSH, the Group has provisionally
calculated the potential top-up tax exposure. Based on the provisional calculation, the Group would not be
subject to top-up tax in any jurisdiction where it operates.
The above analysis has to be considered as an estimated exposure as the indicative calculation is based on
complex regulations that have only recently been enacted (and are still subject to amendments in various
Annual Financial Report for the year 2025 – Section V.
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2025
43
jurisdictions) with limited guidelines and not all relevant data available to perform the full Pillar Two
calculation.
In relation to deferred taxes, the Group continues to apply a temporary mandatory exemption from deferred
tax accounting impact and neither recognizes nor discloses information about deferred tax related to Pillar
Two income taxes. The Group at the same time continues to monitor developments in the Pillar Two
legislation.
Income tax recognised in other comprehensive income | ||||
In millions of EUR | 2025 | |||
Gross | Income tax | Net of income tax | ||
Items that are or may be reclassified subsequently to profit or loss | ||||
Foreign currency translation differences for foreign operations | 31 | - | 31 | |
Effective portion of changes in fair value of cash-flow hedges (1) | 14 | (1) | 13 | |
Total | 45 | (1) | 44 | |
(1) as it is not relevant to the financial statements of the Group. | ||||
In millions of EUR | 2024 | |||
Gross | Income tax | Net of income tax | ||
Items that are not reclassified subsequently to profit or loss | ||||
Revaluation reserve included in other comprehensive income | (35) | (104) | (139) | |
Items that are or may be reclassified subsequently to profit or loss | ||||
Foreign currency translation differences for foreign operations | (19) | - | (19) | |
Effective portion of changes in fair value of cash-flow hedges (1) | 11 | (21) | (10) | |
Total | (43) | (125) | (168) | |
(1) as it is not relevant to the financial statements of the Group. | ||||
The foreign currency translation differences related to non-controlling interest are other comprehensive income attributable to non-controlling | ||||
Annual Financial Report for the year 2025 – Section V.
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2025
44
Reconciliation of the effective tax rate | ||||||
In millions of EUR | 2025 | 2024 | ||||
% | % | |||||
Profit before tax | 623 | 909 | ||||
Income tax using the Company’s domestic rate (21%) | 21.00% | 131 | 21.00% | 191 | ||
Regulated industry tax (1) | 3.37% | 21 | 3.41% | 31 | ||
Effect of tax rates in foreign jurisdictions | 2.41% | 15 | 0.22% | 2 | ||
Change in tax rate (2) | (1.12%) | (7) | 11.99% | 109 | ||
Non-deductible expenses (3) | 2.57% | 16 | 2.64% | 24 | ||
Non-taxable income (4) | (4.65%) | (29) | (0.55%) | (5) | ||
Withholding tax, income tax adjustment for prior period | 0.32% | 2 | 0.88% | 8 | ||
Current period adjustment for deferred tax recognition in prior period | (0.16%) | (1) | - | - | ||
Recognition of previously unrecognized tax losses | - | - | (0.22%) | (2) | ||
Current year losses for which no deferred tax asset was recognized | - | - | 0.11% | 1 | ||
Change in temporary differences for which no deferred tax asset is recorded | - | - | (0.55%) | (5) | ||
Income taxes recognised in profit or loss for continuing operations | 23.74% | 148 | 38.93% | 354 | ||
(1) EUR 2 million (2024: EUR 10 million), SPP - distribúcia, (2024: EUR 5 million), Stredoslovenská distribučná, a.s. of EUR 3 million (2024: EUR 2 million). | ||||||
(2) | ||||||
(3) | ||||||
(4) EUR 103 million. | ||||||
Annual Financial Report for the year 2025 – Section V.
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2025
45
15. Property, plant and equipment
In millions of EUR | Land and buildings (1) | Gas transmission pipelines - fair value model | Gas distribution pipelines - fair value model | Technical equipment, plant and machinery (1) | Other equipment, fixtures and fittings | Under construction | Advanced payments | Total | |
Cost or revaluation | Level 3 | Level 3 | |||||||
Balance at 1 January 2025 | 2,258 | 3,453 | 4,152 | 2,155 | 16 | 167 | 47 | 12,248 | |
Effects of movements in foreign exchange | 17 | - | - | 16 | - | 2 | - | 35 | |
Additions | 57 | - | 14 | 32 | - | 133 | 21 | 257 | |
Disposals | (7) | - | (12) | (40) | - | - | (1) | (60) | |
Disposed entities | (202) | - | - | (475) | - | (79) | (35) | (791) | |
Transfers | 32 | 3 | 31 | 38 | - | (78) | (26) | - | |
Change in provision recorded in PP&E | (15) | - | - | - | - | - | - | (15) | |
Balance at 31 December 2025 | 2,140 | 3,456 | 4,185 | 1,726 | 16 | 145 | 6 | 11,674 | |
Depreciation and impairment losses | |||||||||
Balance at 1 January 2025 | (929) | (38) | (330) | (1,209) | (6) | (16) | - | (2,528) | |
Effects of movements in foreign exchange | (8) | - | - | (12) | - | - | - | (20) | |
Depreciation charge for the year | (67) | (93) | (171) | (87) | - | - | - | (418) | |
Disposals | 6 | - | 12 | 39 | - | - | - | 57 | |
Disposed entities | 138 | - | - | 343 | - | 3 | - | 484 | |
Impairment losses recognized in profit or loss | (4) | - | - | (4) | - | 1 | - | (7) | |
Transfer | 2 | - | - | (2) | - | - | - | - | |
Balance at 31 December 2025 | (862) | (131) | (489) | (932) | (6) | (12) | - | (2,432) | |
Carrying amounts | |||||||||
At 1 January 2025 | 1,329 | 3,415 | 3,822 | 946 | 10 | 151 | 47 | 9,720 | |
At 31 December 2025 | 1,278 | 3,325 | 3,696 | 794 | 10 | 133 | 6 | 9,242 | |
(1) Including right-of-use assets | |||||||||
Annual Financial Report for the year 2025 – Section V.
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2025
46
In millions of EUR | Land and buildings (1) | Gas transmission pipelines - fair value model | Gas distribution pipelines - fair value model | Technical equipment, plant and machinery (1) | Other equipment, fixtures and fittings | Under construction | Advanced payments | Total | |
Cost or revaluation | Level 3 | Level 3 | |||||||
Balance at 1 January 2024 | 2,196 | 3,919 | 4,100 | 2,113 | 16 | 151 | 8 | 12,503 | |
Effects of movements in foreign exchange | 1 | - | - | (14) | - | (2) | - | (15) | |
Additions | 38 | - | 52 | 38 | - | 85 | 44 | 257 | |
Revaluation | - | (466) | - | - | - | - | - | (466) | |
Disposals | (13) | - | (6) | (22) | - | (1) | (2) | (44) | |
Transfers | 23 | - | 6 | 40 | - | (66) | (3) | - | |
Change in provision recorded in PP&E | 13 | - | - | - | - | - | - | 13 | |
Balance at 31 December 2024 | 2,258 | 3,453 | 4,152 | 2,155 | 16 | 167 | 47 | 12,248 | |
Depreciation and impairment losses | |||||||||
Balance at 1 January 2024 | (866) | (381) | (168) | (1,139) | (3) | (14) | - | (2,571) | |
Effects of movements in foreign exchange | (6) | - | - | 10 | - | - | - | 4 | |
Depreciation charge for the year | (68) | (89) | (168) | (101) | (3) | - | - | (429) | |
Disposals | 13 | - | 6 | 21 | - | - | - | 40 | |
Revaluation | - | 431 | - | - | - | - | - | 431 | |
Impairment losses recognized in profit or loss | (2) | 1 | - | - | - | (2) | - | (3) | |
Balance at 31 December 2024 | (929) | (38) | (330) | (1,209) | (6) | (16) | - | (2,528) | |
Carrying amounts | |||||||||
At 1 January 2024 | 1,330 | 3,538 | 3,932 | 974 | 13 | 137 | 8 | 9,932 | |
At 31 December 2024 | 1,329 | 3,415 | 3,822 | 946 | 10 | 151 | 47 | 9,720 | |
Annual Financial Report for the year 2025 – Section V.
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2025
47
Revaluation of gas pipelines
The gas distribution pipeline owned and operated by SPP – distribúcia, a.s. and the gas transmission
pipeline owned and operated by eustream a.s. are recognised at revalued amount, primarily using the cost
approach, especially the replacement cost method. Replacement costs are based on the acquisition cost of
equivalent assets (EA) and are the estimated net book value of the assets from the acquisition cost of EA,
useful lives and age of existing assets (replacement cost less depreciation methodology). For more details
on revaluation, refer to Note 2 (d) and Note 4 (a).
Revalued asset is depreciated on a straight-line basis, revaluation surplus is released to retained earnings as
the asset is depreciated. If the revalued asset is derecognised or sold, the revaluation surplus as a whole is
transferred to retained earnings. These transfers are made directly in equity and do not affect other
comprehensive income.
If the pipelines were accounted for using the cost model, the net book value of the asset as at 31 December
2025 would be EUR 3,402 million (2024: EUR 3,471 million) of which net book value of Eustream’s assets
EUR 1,538 million (2024: EUR 1,575 million) and net book value of SPPD’s assets EUR 1,864 million
(2024: EUR 1,896 million).
Impairment testing of Property, Plant and Equipment
The Group evaluates its property, plant and equipment for indicators of impairment in accordance with
Note 3(i) – Impairment. This assessment requires management to consider, at each reporting date, whether
events or changes in circumstances indicate that the carrying amount of an asset or cash-generating unit
(“CGU”) may not be recoverable.
As at 31 December 2025, management considered all relevant geopolitical, regulatory and market
developments that already existed at the reporting date. These included the ongoing military conflict in
Ukraine, the continued interruption of gas transit flows, energy-market volatility, and developments under
the EU’s REPowerEU initiative. These conditions formed part of the Group’s operating environment
throughout 2025 and were therefore appropriately reflected in financial budgets and value-in-use models
used for impairment testing. Consistent with the analysis presented in Note 2(c) – Going concern,
management concluded that these existing developments did not give rise to impairment indicators for the
Group’s assets. After the reporting date, a geopolitical escalation involving Iran occurred. As this
development did not exist at 31 December 2025, it is treated as a non-adjusting post-balance-sheet event
and therefore did not affect the impairment assessment for property, plant and equipment. Based on
information currently available, management does not expect the event to have direct negative impacts on
the Group.
As part of the year-end review, the Parent Company performed a detailed impairment assessment of
Eustream’s gas transmission network, evaluating a range of potential future utilization scenarios in light of
evolving regional gas flows and the broader geopolitical and regulatory context. The analysis considered
expected gas supply needs in Central and Eastern Europe, the configuration and capacity of available
transmission infrastructure, and the implications of a structurally reoriented European supply landscape.
Management assessed several plausible developments, including scenarios in which Russian gas supplies
remain suspended and gas transit through Ukraine does not resume, with REPowerEU objectives reflected
through a gradual reorientation of supply routes. The assessment also took into account expected
west-to-east flow patterns, the continued strategic importance of the network for Slovak supply security,
and its role in supporting sourcing routes for Ukraine.
The recoverable amounts of all CGUs tested were determined using the value-in-use method, based on
discounted future cash flows derived from the Group’s mid-term business plans and long-term perpetuity
assumptions. These valuation principles were applied consistently across all CGUs subject to impairment
testing. The projections reflect expected asset utilization under a reconfigured European gas market and
incorporate assumptions relevant to each CGU’s operating context.
Across the Group’s broader impairment testing, the following underlying assumptions were commonly
applied:
Annual Financial Report for the year 2025 – Section V.
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2025
48
●
commodity price assumptions based on prevailing forward curves at the time of the assessment;
●
regulatory parameters and tariffs reflecting the latest applicable frameworks and available regulatory
guidance, which assumes an increase in tariffs for gas transmission;
●
short-term continuation of certain current regional supply patterns, namely continuation of flows via
Turkish Stream II, while Ukrainian transit remains halted;
●
long-term evolution of gas flow patterns consistent with REPowerEU objectives and the EU policy
goal of reducing dependency on Russian gas;
●
expectations that natural gas demand in Slovakia and neighbouring countries will remain broadly
aligned with historical consumption levels;
●
continued long-term use of natural gas reflected in the terminal value, as no defined timeline exists for
the Group’s transition away from natural gas;
●
the Group’s strategic intention to support a future transition toward hydrogen, which represents
long-term optionality and is not included in the impairment model assumptions.
Discount rates applied across CGUs were determined based on their respective WACCs, with the cost of
equity calculated using the Capital Asset Pricing Model and incorporating external market data, relevant
peer-group benchmarks and a risk premium reflecting recent market developments.
Based on the above analyses, and consistent with the conclusions in Note 2(c) – Going concern,
management concluded that the recoverable amounts of the Group’s property, plant and equipment
exceeded their carrying amounts as at 31 December 2025. Accordingly, no impairment was recognised for
the Group’s property, plant and equipment. Minor impairment charges recorded in the year relate solely to
specific technical assets and reflect asset-specific operational matters, not broader geopolitical or regulatory
trends.
Idle assets
As at 31 December 2025 and 31 December 2024 the Group had no significant idle assets.
Security
At 31 December 2025 and 2024 no property, plant and equipment is subject to pledges to secure bank loans
or issued debentures.
16. Intangible assets and goodwill
In millions of EUR | Goodwill | Software | Emission rights | Customer relationship and other contracts | Other intangible assets | Total | |
Cost | |||||||
Balance at 1 January 2025 | 116 | 92 | 152 | 41 | 31 | 432 | |
Effect of movements in foreign exchange rates | 3 | - | 3 | 1 | 1 | 8 | |
Additions | - | 4 | 25 | - | 11 | 40 | |
Disposals | - | (3) | (37) | - | - | (40) | |
Disposed entities | (20) | (4) | (90) | - | (6) | (120) | |
Transfers | - | 3 | - | - | (3) | - | |
Balance at 31 December 2025 | 99 | 92 | 53 | 42 | 34 | 320 | |
Amortisation and impairment losses | |||||||
Balance at 1 January 2025 | (44) | (74) | - | (18) | (12) | (148) | |
Effect of movements in foreign exchange rates | - | - | - | (1) | 1 | - | |
Amortisation for the year | - | (6) | - | (2) | (3) | (11) | |
Disposals | - | 3 | - | - | - | 3 | |
Disposed entities | 7 | 4 | - | - | - | 11 | |
Balance at 31 December 2025 | (37) | (73) | - | (21) | (14) | (145) | |
Annual Financial Report for the year 2025 – Section V.
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2025
49
Carrying amount | |||||||
At 1 January 2025 | 72 | 18 | 152 | 23 | 19 | 284 | |
At 31 December 2025 | 62 | 19 | 53 | 21 | 20 | 175 |
Annual Financial Report for the year 2025 – Section V.
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2025
50
In millions of EUR | Goodwill | Software | Emission rights | Customer relationship and other contracts | Other intangible assets | Total | |
Cost | |||||||
Balance at 1 January 2024 | 117 | 89 | 224 | 42 | 27 | 499 | |
Effect of movements in foreign exchange rates | (1) | (1) | (3) | (1) | - | (6) | |
Additions | - | 4 | 109 | - | 6 | 119 | |
Disposals | - | (2) | (178) | - | - | (180) | |
Transfers | - | 2 | - | - | (2) | - | |
Balance at 31 December 2024 | 116 | 92 | 152 | 41 | 31 | 432 | |
Amortisation and impairment losses | |||||||
Balance at 1 January 2024 | (45) | (71) | - | (17) | (10) | (143) | |
Effect of movements in foreign exchange rates | 1 | - | - | 1 | - | 2 | |
Amortisation for the year | - | (5) | - | (2) | (2) | (9) | |
Disposals | - | 2 | - | - | - | 2 | |
Balance at 31 December 2024 | (44) | (74) | - | (18) | (12) | (148) | |
Carrying amount | |||||||
At 1 January 2024 | 72 | 18 | 224 | 25 | 17 | 356 | |
At 31 December 2024 | 72 | 18 | 152 | 23 | 19 | 284 |
In 2025, the Group purchased emission allowances of EUR 18 million (2024: EUR 102 million). The
remaining part of EUR 7 million (2024: EUR 7 million) was allocated to the Group by the authorities and
counterparties.
Amortisation of intangible assets is included in the row Depreciation, amortisation and impairment in the
consolidated statement of comprehensive income.
Other intangible assets comprise valuable rights and intangible assets under construction.
All intangible assets, excluding goodwill, were recognised as assets with definite useful life.
The Group did not capitalise any development costs in 2025 and 2024.
The Group has also carried out research activities reflected in these consolidated financial statements.
Research costs are recognised as operating expenses in the income statement immediately when incurred.
However, no significant research costs were incurred during 2025 and 2024.
Impairment testing for cash-generating units containing goodwill
For the purpose of impairment testing, goodwill is allocated to the Group’s cash-generating units which
represent the lowest level within the Group at which goodwill is monitored for internal management
purposes.
The aggregate carrying amounts of goodwill allocated to single cash generating units are as follows:
In millions of EUR | 31 December 2025 | 31 December 2024 | ||
EOP Distribuce, a.s. | 55 | 52 | ||
Elektrárny Opatovice, a.s. | - | 8 | ||
Other CGU's | 7 | 12 | ||
Total goodwill | 62 | 72 |
Goodwill and impairment testing
In compliance with IAS 36, the Group annually conducts impairment testing of goodwill. The Group also
conducts impairment testing of cash generating units (CGUs) where a trigger for impairment testing is
identified. As at the acquisition date goodwill acquired is allocated to each of the cash-generating units
expected to benefit from the combination’s synergies. Impairment is determined by assessing the
recoverable amount of the CGU, to which the goodwill relates, on the basis of a value-in-use that reflects
Annual Financial Report for the year 2025 – Section V.
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2025
51
estimated future discounted cash flows. Value-in-use is derived from management forecasts of future cash
flows updated since the date of acquisition. Impairment tests were performed in a similar manner as
described in Note 15.
No impairment of Goodwill was recognized in 2025 and in 2024.
Annual Financial Report for the year 2025 – Section V.
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2025
52
17. Deferred tax assets and liabilities
Deferred tax assets and liabilities arise from temporary differences between the carrying amounts of assets and liabilities in the consolidated financial statements
and the amounts used for taxation purposes. Major sources of deferred taxes include:
●
revaluation of gas transmission and distribution pipelines (IAS 16 revaluation model),
●
differences between tax and accounting depreciation,
●
financial instruments measured at fair value,
●
provisions and employee benefit obligations,
●
tax losses carried forward (to the extent recognised).
The Heat Infra disposals completed on 31 March 2025 resulted in the derecognition of deferred tax liabilities and assets associated with the disposed entities (for
more information see Note - 6).
Recognised deferred tax assets and liabilities | |||||||
The following deferred tax assets and (liabilities) have been recognised: | |||||||
In millions of EUR | 31 December 2025 | 31 December 2024 | |||||
Temporary | Assets | Liabilities | Net | Assets | Liabilities | Net | |
Property, plant and equipment | 8 | (1,964) | (1,956) | 8 | (2,021) | (2,013) | |
Intangible assets | - | (20) | (20) | - | (20) | (20) | |
Inventories | 5 | - | 5 | 11 | - | 11 | |
Trade receivables and other assets | 6 | - | 6 | 6 | - | 6 | |
Provisions | 43 | - | 43 | 48 | - | 48 | |
Employees benefits (IAS 19) | 7 | - | 7 | 7 | - | 7 | |
Loans and borrowings | - | (11) | (11) | - | (11) | (11) | |
Derivatives | 17 | (9) | 8 | 18 | (9) | 9 | |
Other items | 20 | (5) | 15 | 9 | (15) | (6) | |
Subtotal | 106 | (2,009) | (1,903) | 107 | (2,076) | (1,969) | |
Set-off tax | (98) | 98 | - | (100) | 100 | - | |
Total | 8 | (1,911) | (1,903) | 7 | (1,976) | (1,969) | |
Annual Financial Report for the year 2025 – Section V.
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2025
53
Movements in deferred tax during the year | ||||||||
In millions EUR | ||||||||
Balances related to: | Balance at 1 January 2025 | Recognised in profit or loss | Recognised in other comprehensive income | Transfer | Outgoing entities | Effect of movements in foreign exchange rate | Balance at 31 December 2025 | |
Property, plant and equipment | (2,013) | 60 | - | (5) | 3 | (1) | (1,956) | |
Intangible assets | (20) | - | - | - | - | - | (20) | |
Inventories | 11 | (6) | - | - | - | - | 5 | |
Trade receivables and other assets | 6 | - | - | - | - | - | 6 | |
Provisions | 48 | (5) | - | - | - | - | 43 | |
Employee benefits (IAS 19) | 7 | 1 | - | - | - | (1) | 7 | |
Loans and borrowings | (11) | - | - | - | - | - | (11) | |
Derivatives | 9 | - | (1) | - | - | - | 8 | |
Other | (6) | 3 | - | 5 | 12 | 1 | 15 | |
Total | (1,969) | 53 | (1) | - | 15 | (1) | (1,903) | |
In millions EUR | ||||||
Balances related to: | Balance at 1 January 2024 | Recognised in profit or loss | Recognised in other comprehensive income | Effect of movements in foreign exchange rate | Balance at 31 December 2024 | |
Property, plant and equipment | (1,836) | (71) | (108) | 2 | (2,013) | |
Intangible assets | (20) | - | - | - | (20) | |
Inventories | 10 | 1 | - | - | 11 | |
Trade receivables and other assets | 5 | 2 | - | (1) | 6 | |
Provisions | 55 | (7) | - | - | 48 | |
Employee benefits (IAS 19) | 7 | - | - | - | 7 | |
Loans and borrowings | (11) | - | - | - | (11) | |
Derivatives | 30 | - | (21) | - | 9 | |
Other | (18) | 8 | 4 | - | (6) | |
Total | (1,778) | (67) | (125) | 1 | (1,969) | |
Annual Financial Report for the year 2025 – Section V.
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2025
54
Unrecognised deferred tax assets | ||||
A deferred tax asset has not been recognised in respect of the following tax losses that are available for carry forward by certain EPIF Group entities | ||||
In millions of EUR | 31 December 2025 | 31 December 2024 | ||
Tax losses carried forward | 424 | 421 | ||
Total | 424 | 421 | ||
A following entities: | ||||
In millions of EUR | 31 December 2025 | 31 December 2024 | ||
Slovak Gas Holding B.V. | 388 | 388 | ||
SPP Infrastructure, a.s. | 23 | 20 | ||
Czech Gas Holding Investment B.V. | 13 | 13 | ||
Total | 424 | 421 | ||
The entities in the table represent holding companies with insignificant operating activities. The Group
does not expect significant taxable profit growth on these entities, so no deferred tax was recognized. If
sufficient taxable profits were to be achieved in 2025, then the associated tax income (savings) would be
up to EUR 89 million (2024: EUR 88 million).
A deferred tax asset is recognised for the carry-forward of unused tax losses only to the extent that it is
probable that future taxable profit will be available against which the unused tax losses can be utilised. An
estimate of the expiry of tax losses is shown below:
In millions of EUR | 2026 | 2027 | 2028 | 2029 | After 2029 | Total | |
Tax | 6 | 6 | 6 | 4 | 402 | 424 |
Tax losses expire over a period of 5 years in the Czech Republic, 4 years in Slovakia and 6 years (9 years
for losses up to 2018) in the Netherlands for standard tax losses. Under current tax legislation, some
deductible temporary differences do not expire. Deferred tax assets have not been recognised in respect of
these items because, due to the varying nature of the sources of these profits, it is not probable that future
taxable profit against which the Group can utilise the benefits from the deferred tax assets will be available.
18. Inventories
In millions of EUR | 31 December 2025 | 31 December 2024 | ||
Natural gas | 180 | 214 | ||
Other fossil fuel | 2 | 27 | ||
Raw materials and supplies | 15 | 19 | ||
Spare parts | 9 | 13 | ||
Work in progress | - | 1 | ||
Total | 206 | 274 | ||
As at 31 December 2025 and 2024 no inventories were subject to pledges. | ||||
Annual Financial Report for the year 2025 – Section V.
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2025
55
19. Trade receivables and other assets
In millions of EUR | 31 December 2025 | 31 December 2024 | ||
Trade receivables | 212 | 219 | ||
Uninvoiced supplies | 98 | 136 | ||
Advance payments | 83 | 82 | ||
Other receivables and assets | 16 | 24 | ||
Accrued income | 8 | 13 | ||
Margin deposit relating to derivatives | 2 | 15 | ||
Value | 2 | 5 | ||
Estimated receivables | 2 | 2 | ||
Allowance for bad debts | (32) | (34) | ||
Total | 391 | 462 | ||
Non-current | 11 | 5 | ||
Current | 380 | 457 | ||
Total | 391 | 462 | ||
1) | ||||
In 2025 receivables of EUR 1 million were written-off through profit or loss (2024: EUR 4 million).
As at 31 December 2025 and 2024 no receivables are subject to pledges.
As at 31 December 2025 trade receivables and other assets amounting EUR 380 million are not past due
(2024: EUR 293 million), remaining net balance of EUR 11 million is overdue (2024: EUR 34 million).
For more detailed aging analysis refer to Note 30 (a)(ii) – Risk management – credit risk (impairment
losses).
As at 31 December 2025 and 2024 the fair value of trade receivables and other assets equals to its carrying
amount.
The Group’s exposure to credit and currency risks and impairment losses related to trade and other
receivables is disclosed in Note 30 – Risk management policies and disclosures.
20. Cash and cash equivalents
In millions of EUR | 31 December 2025 | 31 December 2024 | ||
Current accounts with banks | 782 | 945 | ||
Term deposits | 926 | 759 | ||
Bills of exchange | - | 50 | ||
Total | 1,708 | 1,754 |
Term deposits with original maturity of up to three months are classified as cash equivalents.
As at 31 December 2025 and 2024 no cash equivalents are subject to pledges.
Annual Financial Report for the year 2025 – Section V.
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2025
56
21. Equity
Share capital and share premium
The authorised, issued and fully paid share capital as at 31 December 2025 consisted of 222,870,000
ordinary shares with a par value of CZK 250 each (2024: 222,870,000 ordinary shares) (“Shares A”) and
100,130,000 shares (with which special rights relating to profit distribution are connected as specified in
the Articles of Incorporation) with a par value of CZK 250 each (2024: 100,130,000 shares) (“Shares B”).
The shareholder is entitled to receive dividends and to cast 1 vote per 1 share of nominal value CZK 250 at
meetings of the Company’s shareholders.
In 2025 the Company declared dividends in amount of EUR 878 million (EUR
300 million (EUR
In 2025 and 2024 the Group paid dividends as follows:
in millions of EUR | 31 December 2025 | 31 December 2024 | ||
Shareholders of the Company | 320 | 300 | ||
NCI* | 244 | 181 | ||
Total | 564 | 481 | ||
* Slovak Republic and City of Pilsen | ||||
31 December 2025 | Number of shares | Ownership | Voting rights | ||
In thousands of pieces | 250 CZK | % | % | ||
Shares A | Shares B | ||||
EPIF Investments a.s. | 222,870 | - | 69 | 69 | |
CEI Investments S.à r.l. | - | 100,130 | 31 | 31 | |
Total | 222,870 | 100,130 | 100 | 100 | |
31 December 2024 | Number of shares | Ownership | Voting rights | ||
In thousands of pieces | 250 CZK | % | % | ||
Shares A | Shares B | ||||
EPIF Investments a.s. | 222,870 | - | 69 | 69 | |
CEI Investments S.à r.l. | - | 100,130 | 31 | 31 | |
Total | 222,870 | 100,130 | 100 | 100 | |
Reserves recognised in equity comprise the following items: | ||||
In millions of EUR | 31 December 2025 | 31 December 2024 | ||
Non-distributable reserves | 1 | 1 | ||
Revaluation reserve | 1,208 | 1,359 | ||
Hedging reserve | 3 | (6) | ||
Translation reserve | 51 | 27 | ||
Other capital reserves | (4,182) | (4,182) | ||
Total | (2,919) | (2,801) | ||
Other capital reserves
As stated in section 3 (a) vii – Pricing differences, the Group accounted for pricing differences which arose
from the acquisition of subsidiaries from Energetický a průmyslový holding, a.s. or subsidiaries contributed
to the share capital of the Company by Energetický a průmyslový holding, a.s. As these acquired or
contributed entities were under common control of Energetický a průmyslový holding, a.s., they were
therefore excluded from the scope of IFRS 3, which defines recognition of goodwill raised from business
Annual Financial Report for the year 2025 – Section V.
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2025
57
combination as the excess of the cost of an acquisition over the fair value of the Group’s share of the net
identifiable assets, liabilities and contingent liabilities of the acquired subsidiary. Acquirees under common
control are treated under the net book value presented in the consolidated financial statements of
Energetický a průmyslový holding, a.s. (i.e. including historical goodwill less potential impairment). The
difference between the cost of acquisition and carrying values of net assets of the acquiree and original
goodwill carried forward as at the acquisition date were recorded to consolidated equity as pricing
differences. Pricing differences are presented in Other capital reserves in Equity. “Note 6 – Acquisitions
and disposals of subsidiaries, joint-ventures and associates” summarises the effects of all common control
transactions in both periods.
Translation reserve
The translation reserve comprises all foreign exchange differences arising from the translation of the
financial statements of foreign operations of the Group and translation of the consolidated financial
statements to presentation currency.
Revaluation reserve
For more details on revaluation, refer to Note 2 (e) and Note 4 (a).
Hedging reserves
The effective portion of fair value changes in derivatives (financial and commodity) designated as cash
flow hedges are recognised in equity (for more details please refer to Note 26 – Financial instruments and
Note 30 – Risk management policies and disclosure).
During 2025 the Group reclassified EUR 4 million as income from Hedging reserves to Profit or loss (2024:
EUR 28 million as expense).
Annual Financial Report for the year 2025 – Section V.
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2025
58
22. Non-controlling interest
31 December 2025 | eustream, a.s. | SPP - distribúcia, a.s. and its subsidiaries | Stredoslovenská energetika Holding, a.s. and its subsidiaries (including SSD) | NAFTA a.s. and its subsidiaries | POZAGAS a.s. | Plzeňská teplárenská, a.s. | SPP Infrastructure, a.s. and its subsidiaries | Other individually immaterial subsidiaries | Total | |
In millions of EUR | ||||||||||
Non-controlling percentage | (6) 51.00% | (6) 51.00% | (6) 51.00% | 31.01% | 38.01% | (6) 65.00% | (6) 51.00% | |||
Business activity | Transmission of gas | Distribution of gas | Distribution of electricity | Gas storage | Gas storage | Production and distribution of heat | Holding entity | |||
Country (1) | Slovakia | Slovakia | Slovakia | Slovakia, Germany | Slovakia | Czech Republic | Slovakia | |||
Carrying amount of NCI at 31 December 2025 | 1,236 | 1,561 | 365 | 149 | 28 | 198 | (272) | 34 | 3,299 | |
Profit controlling interest for the period | 17 | 75 | 46 | 26 | 4 | 15 | (3) | 10 | 190 | |
Dividends declared | - | - | (68) | (2) | - | - | (7) (142) | - | (212) | |
Statement of financial position information (2) | ||||||||||
Total assets | 3,983 | 4,653 | 1,102 | 767 | 97 | 392 | 4,975 | |||
of which: | 3,646 | 3,878 | 904 | 538 | 41 | 242 | (4) 4,949 | |||
337 | 775 | 198 | 229 | 56 | 150 | 26 | ||||
Total liabilities | 1,560 | 1,592 | 386 | 286 | 24 | 87 | 414 | |||
of which: | 1,432 | 1,507 | 220 | 236 | 19 | 31 | 1 | |||
128 | 85 | 166 | 50 | 5 | 56 | 413 | ||||
Net assets | 2,423 | 3,061 | 716 | 481 | 73 | 305 | 4,561 | - | - | |
Statement of comprehensive income information (2) | ||||||||||
Total revenues | 259 | 554 | 1,090 | 262 | 44 | 183 | 289 | |||
of which: | - | - | - | 32 | - | - | (5) 285 | |||
Profit after tax | 34 | 148 | 157 | 117 | 10 | 23 | 279 | |||
Total other comprehensive income for the period, net of tax | 7 | - | - | 1 | - | - | - | |||
Total comprehensive income for the year (2) | 41 | 148 | 157 | 118 | 10 | 23 | 279 | - | - | |
Net cash inflows (outflows) (2) | (419) | 114 | (76) | (33) | 20 | - | (83) | |||
(1) | ||||||||||
(2) | ||||||||||
(3) entities after elimination of investment in subsidiaries is | ||||||||||
(4) | ||||||||||
(5) | ||||||||||
(6) agreement provides the Group | ||||||||||
(7) | ||||||||||
Annual Financial Report for the year 2025 – Section V.
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2025
59
31 December 2024 | eustream, a.s. | SPP - distribúcia, a.s. and its subsidiaries | Stredoslovenská energetika Holding, a.s. and its subsidiaries (including SSD) | NAFTA a.s. and its subsidiaries | POZAGAS a.s. | Plzeňská teplárenská, a.s. | SPP Infrastructure, a.s. and its subsidiaries | Other individually immaterial subsidiaries | Total | |
In millions of EUR | ||||||||||
Non-controlling percentage | (6) 51.00% | (6) 51.00% | (6) 51.00% | 31.01% | 38.01% | (6) 65.00% | (6) 51.00% | |||
Business activity | Transmission of gas | Distribution of gas | Distribution of electricity | Gas storage | Gas storage | Production and distribution of heat | Holding entity | |||
Country (1) | Slovakia | Slovakia | Slovakia | Slovakia, Germany | Slovakia | Czech Republic | Slovakia | |||
Carrying amount of NCI at 31 December 2024 | 1,216 | 1,573 | 387 | 153 | 43 | 176 | (272) | 32 | 3,308 | |
Profit controlling interest for the period | 85 | 53 | 55 | 42 | 11 | 18 | (6) | 13 | 271 | |
Dividends declared | - | - | (33) | (4) | - | (5) | (7) (175) | - | (217) | |
Statement of financial position information (2) | ||||||||||
Total assets | 4,529 | 4,696 | 1,156 | 798 | 139 | 358 | 5,596 | |||
of which: | 3,761 | 3,995 | 869 | 555 | 43 | 240 | (4) 4,942 | |||
768 | 701 | 287 | 243 | 96 | 118 | 654 | ||||
Total liabilities | 2,145 | 1,612 | 399 | 304 | 26 | 89 | 1,036 | |||
of which: | 1,462 | 1,532 | 207 | 253 | 22 | 29 | 1 | |||
683 | 80 | 192 | 51 | 4 | 60 | 1,035 | ||||
Net assets | 2,384 | 3,084 | 757 | 494 | 113 | 269 | 4,560 | - | - | |
Statement of comprehensive income information (2) | ||||||||||
Total revenues | 504 | 550 | 1,120 | 321 | 61 | 193 | 370 | |||
of which: | - | - | - | 23 | - | - | (5) 353 | |||
Profit after tax | 167 | 105 | 109 | 158 | 30 | 27 | 342 | |||
Total other comprehensive income for the period, net of tax | (73) | (61) | (1) | - | - | - | - | |||
Total comprehensive income for the year (2) | 94 | 44 | 108 | 158 | 30 | 27 | 342 | - | - | |
Net cash inflows (outflows) (2) | 376 | (60) | (20) | 50 | (16) | (70) | 72 | |||
(1) | ||||||||||
(2) | ||||||||||
(3) entities after elimination of investment in subsidiaries is | ||||||||||
(4) | ||||||||||
(5) | ||||||||||
(6) agreement provides the | ||||||||||
(7) | ||||||||||
Annual Financial Report for the year 2025 – Section V.
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2025
60
23. Loans and borrowings
In millions of EUR | 31 December 2025 | 31 December 2024 | ||
Issued notes at amortised costs | 3,211 | 3,124 | ||
Loans payable to credit institutions | 274 | 379 | ||
Lease liabilities | 49 | 66 | ||
Total | 3,534 | 3,569 | ||
Non-current | 2,894 | 3,004 | ||
Current | 640 | 565 | ||
Total | 3,534 | 3,569 | ||
The weighted average interest rate on loans and borrowings (excl. notes) 5.65%). | ||||
Issued notes at amortised costs | ||||||||
Details about notes issued as at 31 December 2025 are presented in | ||||||||
In millions of EUR | Principal | Accrued interest | Unamortised transactions cost/premium /discounts | Total | Maturity | Interest rate (%) | Effective interest rate (%) | |
EP Infrastructure 2026 notes | 600 | 4 | - | 604 | 30/7/2026 | 1.698 | 1.795 | |
EP Infrastructure 2028 notes | 500 | 2 | (1) | 501 | 9/10/2028 | 2.045 | 2.117 | |
EP Infrastructure 2031 notes | 500 | 8 | (2) | 506 | 2/3/2031 | 1.816 | 1.888 | |
EP Infrastructure 2033 notes | 600 | 3 | (5) | 598 | 27/2/2033 | 4.125 | 4.297 | |
Eustream notes | 500 | 4 | (1) | 503 | 25/6/2027 | 1.625 | 1.759 | |
SPP - distribúcia notes | 500 | 3 | (4) | 499 | 9/6/2031 | 1.000 | 1.079 | |
Total | 3,200 | 24 | (13) | 3,211 | - | - | - | |
Details about notes issued as at 31 December 2024 are presented in | ||||||||
In millions of EUR | Principal | Accrued interest | Unamortised transactions cost/premium /discounts | Total | Maturity | Interest rate (%) | Effective interest rate (%) | |
EP Infrastructure 2026 notes | 600 | 4 | (1) | 603 | 30/7/2026 | 1.698 | 1.795 | |
EP Infrastructure 2028 notes | 500 | 2 | (1) | 501 | 9/10/2028 | 2.045 | 2.117 | |
EP Infrastructure 2031 notes | 500 | 8 | (2) | 506 | 2/3/2031 | 1.816 | 1.888 | |
Eustream notes | 500 | 4 | (2) | 502 | 25/6/2027 | 1.625 | 1.759 | |
SPP Infrastructure Financing notes | 500 | 12 | - | 512 | 12/2/2025 | 2.625 | 2.685 | |
SPP - distribúcia notes | 500 | 4 | (4) | 500 | 9/6/2031 | 1.000 | 1.079 | |
Total | 3,100 | 34 | (10) | 3,124 | - | - | - | |
Annual Financial Report for the year 2025 – Section V.
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2025
61
EP Infrastructure standalone notes (2026, 2028 and 2031 Notes)
The EPIF 2026, 2028 and 2031 Notes (the „Standalone notes“) contain a covenant limiting certain types
of distributions to EPIF’s shareholders in certain circumstances. The EPIF Group has to monitor the ratio
of total amount of Group’s net debt to Group’s EBITDA (i.e. net leverage) before certain types of
distributions are carried out.
In addition, the Standalone notes contain a change of control provision the triggering of which coupled
with a ratings decline may result in the Company’s obligation to redeem, or at its option, to procure the
purchase of all or part of the notes. Further, the Standalone notes contain customary events of defaults,
including, among other things, non-payment of principal or interest, breach of other obligations, cross-
acceleration/cross-default of the Company or material subsidiary, unsatisfied judgment, security enforced,
insolvency, winding-up and other customary events of default. Some of the events of default are subject
to a threshold in the amount of EUR 75 million. If any of such event of default occurs, the Standalone
notes may be declared immediately due and payable.
EP Infrastructure EMTN programme
In November 2025, EPIF established a Euro Medium Term Note (EMTN) programme. This framework
provides a standardised platform for the Group's future debt issuances, offering greater structural
flexibility. Under this programme, the Group has issued the following notes:
EP Infrastructure notes (2033 Notes)
On 27 November 2025, EPIF placed its debut offering of green EUR 600 million 4.125% fixed-rate
unsecured notes due in February 2033 in the denomination of EUR 100,000 each (“2033 Notes”), under
its EMTN Programme. The 2033 Notes are listed on Irish Stock Exchange (Euronext Dublin). Unless
previously redeemed or cancelled, the 2033 Notes will be redeemed at their principal amount on 27
February 2033. The net proceeds were allocated to finance or refinance eligible green projects in line with
EPIF’s Green Finance Framework.
The 2033 Notes are stated net of debt issue costs of EUR 4 million. These costs are amortised to the profit
and loss over the term of the 2033 Notes using an effective interest rate of 4.297%.
The terms and conditions of the EMTN programme contain a change-of-control provision, the triggering
of which, coupled with a ratings decline, may result in the Company’s obligation to redeem, or, at its
option, to procure the purchase of, all or part of the notes. Further, the conditions contain customary events
of default, including, among other things, non-payment of principal or interest, breach of other obligations,
cross-acceleration/cross-default of the Company or a material subsidiary, unsatisfied judgment,
enforcement of security, insolvency, winding-up and other customary events of default. Some of the events
of default are subject to a threshold of EUR 100 million. If any such event of default occurs, the notes may
be declared immediately due and payable.
Eustream notes (2027 Notes) and SPP – distribúcia notes (SPPD 2031 Notes)
The SPPD 2031 Notes and the Eustream 2027 Notes are subject to the following contractual provisions.
Upon the occurrence of a certain change of control events, holders of the SPPD 2031 Notes and the
Eustream 2027 Notes may require the respective issuer to redeem, or at its option, to purchase or procure
the purchase of, the notes prematurely at 100% of the principal amount, plus accrued and unpaid interest
and additional amounts, if any. In addition, the SPPD 2031 Notes and the Eustream 2027 Notes contain
customary events of defaults, including, among other things, non-payment of principal or interest, breach
of other obligations, cross-acceleration/cross-default of the respective issuer, unsatisfied judgment,
security enforced, insolvency, winding-up and other customary events of default. Some of the events of
default are subject to thresholds in the amount of EUR 75 million. If any of such event of default occurs,
the notes may be declared immediately due and payable.
SPP Infrastructure Financing notes (2025 Notes)
On 12 February 2025, SPP Infrastructure Financing B.V. redeemed all its outstanding EUR 500 million
2.625 per cent. Notes due 2025, issued on 12 February 2015. The outstanding amount redeemed was EUR
500 million.
Annual Financial Report for the year 2025 – Section V.
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2025
62
Other loans and borrowings | ||||||||
Terms and debt | ||||||||
Terms and conditions of outstanding loans as at 31 December 2025 were as follows: | ||||||||
In millions of EUR | Cur- rency | Nominal interest rate | Year maturity (up to) | Balance at 31/12/2025 | Due within 1 year | Due in 1–5 years | Due in following years | |
Unsecured bank loan | EUR | variable* | 2027 | 137 | 2 | 135 | - | |
Unsecured bank loan | EUR | variable* | 2029 | 137 | 2 | 135 | - | |
Liabilities from finance leases | EUR | 49 | 13 | 36 | - | |||
Total interest | 323 | 17 | 306 | - | ||||
* | ||||||||
Terms and conditions of outstanding loans as at 31 December 2024 were as follows: | ||||||||
In millions of EUR | Cur- rency | Nominal interest rate | Year maturity (up to) | Balance at 31/12/2024 | Due within 1 year | Due in 1–5 years | Due in following years | |
Unsecured bank loan | EUR | variable* | 2027 | 242 | 17 | 225 | - | |
Unsecured bank loan | EUR | variable* | 2029 | 137 | 2 | 135 | - | |
Liabilities from finance leases | EUR | 66 | 15 | 48 | 3 | |||
Total interest | 445 | 34 | 408 | 3 | ||||
* | ||||||||
EPIF Schuldschein loan agreements
On 5 March 2024, EPIF has raised EUR 285 million through Schuldschein loan agreements under German
law issued in line with EPIF’s green principles (so called “green Schuldschein”). The floating rate
Schuldschein loan agreements have durations of three and five years, with corresponding margins of
2.50% p.a. and 2.90% p.a., respectively.
On 18 December 2025, EPIF made a voluntary early repayment in the amount of EUR 75 million.
The debts of EPIF under the Schuldschein loan agreements are general, senior unsecured debts of the EPIF
and rank equally in right of payment with EPIF’s existing and future indebtedness that is not subordinated
in right of payment. The Schuldschein loan agreements contain certain restrictive provisions and also a
change of control provision the triggering of which may result in mandatory prepayment.
EPIF Facilities Agreement
On 8 November 2024, EPIF signed a up to EUR 400 million revolving facility agreement (the “EPIF’s
Facility Agreement”), which provides EPIF with an unsecured revolving facility until 8 November 2027.
The debts of EPIF under the EPIF’s Facility Agreement are general, senior unsecured debts of the EPIF
and rank equally in right of payment with the EPIF’s existing and future indebtedness that is not
subordinated in right of payment.
Further, the EPIF’s Facility Agreement contain customary events of defaults, including, among other
things, non-payment, other obligations, misrepresentation, cross-default, insolvency, insolvency
proceedings, preventive restructuring, creditors’ process, unlawfulness and invalidity, cessation of
business, repudiation and rescission of agreements and material adverse change. If any of such event of
default occurs, the EPIF’s Facility Agreement may be cancelled and declared immediately due and payable
or payable on demand.
SPPD Finance Contract
SPPD is a party to the finance contract with EIB dated 25 September 2018, as amended and/or restated
from time to time (“SPPD Finance Contract”). The SPPD Finance Contract is Luxembourg law governed
Annual Financial Report for the year 2025 – Section V.
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2025
63
and provides for a term loan in the aggregate amount of EUR 60 million due 23 September 2029 (with
EUR 60 million outstanding as of 31 December 2024) for the financing of the gas distribution networks
upgrade project in the Slovak Republic for the period between 2019 and 2022.
The SPPD Finance Contract contains a financial covenant ensuring that at the end of each measurement
period (being a period of 12 months ending on 31 January and 31 July of any year), the SPPD group’s net
debt to SPPD group’s EBITDA ratio (i.e. net leverage) is not more than 2.65 to 1.
In addition, the SPPD Finance Contract contains customary events of defaults, including, among other
things, non-payment, misrepresentation, cross-default of SPPD or its subsidiaries, insolvency, insolvency
proceedings, litigation and administrative proceedings, other obligations, creditors’ process, material
adverse change and unlawfulness. If any of such event of default occurs, the SPPD Finance Contract may
be declared immediately due and payable on demand.
SSE Finance Contract
SSEH, SSE and SSD are parties to the facilities agreement dated 30 June 2022, as amended and/or restated
from time to time (the “SSE Finance Contract”) with Slovenská sporiteľňa, a.s., pursuant to which SSEH,
SSE and SSD were provided with a revolving facility in the amount of 100 million due 30 June 2027 with
no amount outstanding as of 31 December 2025.
Fair value information
The fair value of interest-bearing instruments held at amortised costs is shown in the table below:
Annual Financial Report for the year 2025 – Section V.
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2025
64
In millions of EUR | 31 December 2025 | 31 December 2024 | |||
Carrying amount | Fair Value | Carrying amount | Fair Value | ||
Loans payable to credit institutions | 274 | 265 | 379 | 366 | |
Issued notes at amortised costs | 3,211 | 3,047 | 3,124 | 2,874 | |
Liabilities from financial leases | 49 | 49 | 66 | 66 | |
Total | 3,534 | 3,361 | 3,569 | 3,306 | |
Issued notes are categorised within Level 1 or 2 of the fair value hierarchy. Bank loans are categorised
within Level 2 or 3 of the fair value hierarchy (for detail of valuation methods refer to Note 2 (e) i –
Assumption and estimation uncertainties).
Significant investing and financing activities not requiring cash:
For the year 2025 and 2024 there were no non-cash financing activities.
Annual Financial Report for the year 2025 – Section V.
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2025
65
Reconciliation of movement of liabilities to cash flows arising | ||||||||
Liabilities | Equity | |||||||
Loans from credit institutions | Issued notes | Finance lease liabilities | Share capital / premium | Reserves | Retained earnings | NCI | Total | |
Balance as at 1 January 2025 | 379 | 3,124 | 66 | 3,257 | (2,801) | 1,757 | 3,308 | 9,090 |
Changes from financing cash flows | ||||||||
Proceeds from loans and borrowings | - | 597 | - | - | - | - | - | 597 |
Repayment of loans and borrowings | (104) | (500) | - | - | - | - | - | (604) |
Transaction cost related to loans and borrowings | - | (2) | - | - | - | - | - | (2) |
Payment of finance lease liabilities | - | - | (13) | - | - | - | - | (13) |
Dividend paid | - | - | - | - | - | (320) | (244) | (564) |
Total change from financing cash flows | (104) | 95 | (13) | - | - | (320) | (244) | (586) |
Changes arising from obtaining or losing of control of subsidiaries | - | - | (15) | - | (99) | 99 | - | (15) |
Total effect of changes in foreign exchange rates | (1) | (6) | (2) | - | 22 | - | 9 | 22 |
Other changes | ||||||||
Liability related | ||||||||
Interest expense | 18 | 57 | 2 | - | - | - | - | 77 |
Interest paid | (18) | (59) | (2) | - | - | - | - | (79) |
Lease liability (impact of IFRS 16) | - | - | 13 | - | - | - | - | 13 |
Total liability-related other changes | - | (2) | 13 | - | - | - | - | 11 |
Total equity-related other changes | - | - | - | (41) | (223) | 226 | (38) | |
Balance at 31 December 2025 | 274 | 3,211 | 49 | 3,257 | (2,919) | 1,313 | 3,299 | 8,484 |
Annual Financial Report for the year 2025 – Section V.
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2025
66
Reconciliation of movement of liabilities to cash flows arising | ||||||||
Liabilities | Equity | |||||||
Loans from credit institutions | Issued notes | Finance lease liabilities | Share capital / premium | Reserves | Retained earnings | NCI | Total | |
Balance as at 1 January 2024 | 128 | 3,674 | 69 | 3,257 | (2,654) | 1,721 | 3,327 | 9,522 |
Changes from financing cash flows | ||||||||
Proceeds from loans and borrowings | 285 | - | - | - | - | - | - | 285 |
Repayment of loans and borrowings | (38) | - | - | - | - | - | - | (38) |
Purchase of own bonds | - | (547) | - | - | - | - | - | (547) |
Payment of finance lease liabilities | - | - | (15) | - | - | - | - | (15) |
Dividend paid | - | - | - | - | - | (300) | (181) | (481) |
Total change from financing cash flows | 247 | (547) | (15) | - | - | (300) | (181) | (796) |
Changes arising from obtaining or losing of control of subsidiaries | - | - | - | - | - | - | - | |
Total effect of changes in foreign exchange rates | (3) | (2) | 1 | - | (15) | - | (4) | (23) |
Other changes | ||||||||
Liability related | ||||||||
Interest expense | 21 | 70 | 2 | - | - | - | - | 93 |
Interest paid | (14) | (71) | (2) | - | - | - | - | (87) |
Lease liability (impact of IFRS 16) | - | - | 11 | - | - | - | - | 11 |
Total liability-related other changes | 7 | (1) | 11 | - | - | - | - | 17 |
Total equity-related other changes | - | - | - | (132) | 336 | 166 | 370 | |
Balance at 31 December 2024 | 379 | 3,124 | 66 | 3,257 | (2,801) | 1,757 | 3,308 | 9,090 |
Annual Financial Report for the year 2025 – Section V.
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2025
67
24. Provisions
In millions of EUR | Employee benefits | Provision for emission rights | Provision for lawsuits and litigations | Provision for restoration and decommi- ssioning | Other | Total | |
Balance at 1 January 2025 | 35 | 126 | 4 | 228 | 23 | 416 | |
Provisions made during the period | 2 | 65 | 1 | 1 | - | 69 | |
Provisions used during the period | (1) | (37) | - | (2) | (2) | (42) | |
Provisions released during the period | (1) | - | - | (5) | (1) | (7) | |
Change in provision recorded in property, plant and equipment | - | - | - | (15) | - | (15) | |
Actuarial gains/losses | (2) | - | - | - | - | (2) | |
Disposed entities | (1) | (125) | - | - | - | (126) | |
Unwind of discount | 1 | - | - | 5 | - | 6 | |
Effect of movements in foreign exchange rates | - | 4 | 1 | - | - | 5 | |
Balance at 31 December 2025 | 33 | 33 | 6 | 212 | 20 | 304 | |
Non-current | 32 | - | 1 | 206 | 19 | 258 | |
Current | 1 | 33 | 5 | 6 | 1 | 46 |
In millions of EUR | Employee benefits | Provision for emission rights | Provision for lawsuits and litigations | Provision for restoration and decommi- ssioning | Other | Total | |
Balance at 1 January 2024 | 35 | 182 | 4 | 212 | 23 | 456 | |
Provisions made during the period | 4 | 125 | - | - | 1 | 130 | |
Provisions used during the period | (1) | (178) | - | (1) | (1) | (181) | |
Provisions released during the period | (2) | - | - | (1) | - | (3) | |
Change in provision recorded in property, plant and equipment | - | - | - | 13 | - | 13 | |
Actuarial gains/losses | (1) | - | - | - | - | (1) | |
Unwind of discount | - | - | - | 6 | - | 6 | |
Effect of movements in foreign exchange rates | - | (3) | - | (1) | - | (4) | |
Balance at 31 December 2024 | 35 | 126 | 4 | 228 | 23 | 416 | |
Non-current | 34 | - | 1 | 223 | 20 | 278 | |
Current | 1 | 126 | 3 | 5 | 3 | 138 |
Accounting for provisions involves frequent use of estimates, such as probability of occurrence of uncertain
events or calculation of the expected outcome. Such estimates are based on past experience, statistical
models and professional judgement.
Employee benefits
The Group recorded a provision for long-term employee benefits related to its employees. Valuations of
these provisions are sensitive to assumptions used in the calculations, such as future salary and benefit
levels, discount rates, employee leaving rate, late retirement rate, mortality and life expectancy. The
management considered various estimated factors and how these estimates would impact the recognised
provision. As a result of this analysis, no significant variances to the recorded provision are expected.
The most significant provisions in the amount of EUR 13 million (2024: EUR 9 million) were recorded by
Stredoslovenská energetika Holding, and its subsidiaries, EUR 9 million (2024: EUR 10 million) by
Annual Financial Report for the year 2025 – Section V.
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2025
68
NAFTA Germany and its subsidiaries, EUR 4 million (2024: EUR 4 million) by SPP – distribúcia, a.s.,
EUR 4 million (2024: EUR 4 million) by NAFTA a.s and EUR 3 million (2024: EUR 3 million) by
eustream, a.s.
i.
NAFTA Germany and its subsidiaries
Through employer-funded company pension scheme the Group makes a contribution to employees’
retirement provision and support them in the event of invalidity or bereavement. The Group pension scheme
provides for a personal pension to be paid to each employee of the Group once the waiting period has
elapsed. The extent of this company pension depends on the years of service and remuneration paid. In
supplementation of the employer-funded pension scheme, employees also have the option of providing for
retirement themselves by means of a remuneration conversion, thus additionally securing their standard of
living after retirement.
ii.
SSE Holding Group
Pension Plans
This program has a defined contribution pension plan under which the Group pays fixed contributions to
third parties or government. The Group has no legal or constructive obligation to pay further funds, if the
amount of plan assets is insufficient to pay all the performance of employees who are eligible for the current
and prior periods.
The amount of benefits depends on several factors, such as age, years of service and salary.
Unfunded pension plan with defined benefit
From 2022, the companies within the SSE Holding Group signed individual collective agreements for the
period 2023 – 2025, the Companies are obliged to pay its employees upon age pension or disability pension,
depending on seniority, the following multiples of the average monthly salary.
Other benefits
The Companies in the SSE Holding Group also pays benefits for work and life anniversaries. The
Companies had created expectations on the part of its employees that it will continue to provide the benefits
and it is management’s judgement that it is not probable that the Group will cease to provide them.
iii.
Other companies
The long-term employee benefits program at the Companies (NAFTA, SPPD and Eustream) is a defined
benefit program, under which employees are entitled to a lump-sum payment upon old age or disability
retirement as a multiple of the employee’s average salary and, subject to vesting conditions. To date it has
been an unfunded program, with no separately allocated assets to cover the program’s liabilities. The
Companies also pays benefits for work and life anniversaries.
The Companies had created expectations on the part of its employees that it will continue to provide the
benefits and it is management’s judgement that it is not probable that the Group will cease to provide them.
Provision for emission rights
Provision for emission rights is recognised regularly during the year based on the estimated number of
tonnes of CO2 emitted. It is measured at the best estimate of the expenditure required to settle the present
obligation at the end of the reporting period.
Provision for restoration and decommissioning
The major part of the provision was primarily recorded by NAFTA a.s. EUR 100 million (2024: EUR 105
million), NAFTA Germany GmbH EUR 83 million (2024: EUR 91 million), POZAGAS a.s. EUR 13
million (2024: EUR 16 million) and SPP Storage, s.r.o. EUR 9 million (2024: EUR 9 million).
NAFTA a.s. together with NAFTA Production s.r.o. and NAFTA Germany GmbH (through its
subsidiaries) have 112 production wells and 282 storage wells. Production wells that are currently in
production or are being used for other purposes are expected to be abandoned after reserves have been fully
produced or when it has been determined that the wells will not be used for any other purposes. Storage
wells are expected to be abandoned after the end of their useful lives. Companies have the obligation to
Annual Financial Report for the year 2025 – Section V.
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2025
69
dismantle the production and storage wells, decontaminate contaminated soil, restore the area, and restore
the site to its original condition to the extent as stipulated by law. These costs are expected to be incurred
between 2026 and 2094.
The average discount rate applied to calculate present value of the provision was 3.17% (2024: 2.34%) and
the average escalation rate was 1.81% (2024: 1.77%).
At the reporting date, a decrease of escalation rate by 1% would reduce the present value of the provisions
by EUR 32 million (2024: EUR 29 million), while an increase of 1% would increase the present value of
the provisions by EUR 23 million (2023: EUR 43 million).
An increase of discount rate by 1% would reduce the present value of the provisions by EUR 32 million
(2024: EUR 22 million), while a decrease of 1% would increase the present value of the provisions by EUR
39 million (2024: EUR 54 million). These analyses assume that all other variables remain constant.
25. Deferred income
In millions of EUR | 31 December 2025 | 31 December 2024 | ||
Government grants | 69 | 85 | ||
Other deferred income | 4 | 13 | ||
Total | 73 | 98 | ||
Non-current | 61 | 78 | ||
Current | 12 | 20 | ||
Total | 73 | 98 |
Balance of government grants in amount of EUR 69 million (2024: EUR 85 million) is mainly represented
by eustream, a.s. of EUR 52 million (2024: EUR 54 million), EOP Distribuce, a.s. of EUR 4 million (2024:
EUR 5 million), Severočeská teplárenská, a.s. of EUR 6 million (2024: EUR 7 million) and Plzeňská
teplárenská, a.s. of EUR 4 million (2024: EUR 4 million).
Balance of government grants recognised by Eustream are primarily represented by subsidies from the
European Commission relating to projects such as interconnection pipelines between Poland and Slovakia
or Hungary and Slovakia.
EOP Distribuce, a.s., Severočeská teplárenská, a.s. and Plzeňská teplárenská, a.s. were provided with
government grants to reduce emission pollutions. Deferred income is released in the income statement on
a straight-line basis in the amount of depreciation charges of non-current tangible assets constructed and is
recognised as other operating income.
Annual Financial Report for the year 2025 – Section V.
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2025
70
26. Financial instruments
Financial instruments and other financial assets | ||||
In millions of EUR | 31 December 2025 | 31 December 2024 | ||
Assets carried at amortized cost | ||||
Loans to other than credit institutions | 2 | 2 | ||
Total | 2 | 2 | ||
Assets carried at fair value | ||||
Hedging: of which | 8 | 10 | ||
Commodity derivatives cash flow hedge | 8 | 10 | ||
Equity instruments at fair value through OCI: of which | 25 | 21 | ||
Shares and interim certificates at fair value through | 25 | 21 | ||
Total | 33 | 31 | ||
Non-current | 30 | 24 | ||
Current | 5 | 9 | ||
Total | 35 | 33 | ||
Financial instruments and other financial liabilities | ||||
In millions of EUR | 31 December 2025 | 31 December 2024 | ||
Liabilities carried at fair value | ||||
Hedging: of which | 3 | 13 | ||
Commodity derivatives cash flow hedge | 3 | 13 | ||
Non-hedging: of which | 5 | 1 | ||
Commodity derivates reported as trading | 1 | 1 | ||
Currency derivatives reported as trading | 4 | - | ||
Total | 8 | 14 | ||
Non-current | 2 | 2 | ||
Current | 6 | 12 | ||
Total | 8 | 14 |
(1) Commodity derivatives designated as cash flow hedges primarily relate to forwards or other type of derivative contract for
sale/purchase of electricity and gas EP ENERGY TRADING, a.s. hedges cash flows arising from purchase and from sale of
electricity, as part of its activities as supplier of electricity to final customers. The effectiveness is measured by comparing the
change in fair value of the hedging instruments to the change in fair value of a hypothetical derivative that represents the hedged
item.
Annual Financial Report for the year 2025 – Section V.
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2025
71
Fair values and respective nominal amounts of derivatives are disclosed | |||||
In millions of EUR | 31 December 2025 | 31 December 2025 | 31 December 2025 | 31 December 2025 | |
Notional amount buy | Notional amount sell | Positive fair value | Negative fair value | ||
Hedging: of which | 238 | (233) | 8 | (3) | |
Commodity derivatives cash flow hedge | 238 | (233) | 8 | (3) | |
Non-hedging: of which | 175 | (180) | - | (5) | |
Commodity derivatives reported as trading | 1 | (2) | - | (1) | |
Currency derivatives reported as trading | 174 | (178) | - | (4) | |
Total | 413 | (413) | 8 | (8) | |
In millions of EUR | 31 December 2024 | 31 December 2024 | 31 December 2024 | 31 December 2024 | |
Notional amount buy | Notional amount sell | Positive fair value | Negative fair value | ||
Hedging: of which | 153 | (157) | 10 | (13) | |
Commodity derivatives cash flow hedge | 153 | (157) | 10 | (13) | |
Non-hedging: of which | 123 | (124) | - | (1) | |
Commodity derivatives reported as trading | 1 | (2) | - | (1) | |
Currency derivatives reported as trading | 122 | (122) | - | - | |
Total | 276 | (281) | 10 | (14) | |
Commodity derivatives are recognised in respect of contracts for purchase and sale of electricity and gas,
which are denominated in CZK and EUR with maturity up and over one year and where the contractual
condition of derivatives does not meet the “own use exemption” as noted in IFRS 9.
Sensitivity analysis relating to the fair values of financial instruments is included in the Note 30 – Risk
management.
Fair value hierarchy for financial instruments carried at fair value
In general, financial instruments carried at fair value are measured based on quoted market prices at the
reporting date. If the market for a financial instrument is not active, fair value is established using valuation
techniques. In applying valuation techniques, management uses estimates and assumptions that are
consistent with available information that market participants would use in setting a price for the financial
instrument.
The table below analyses financial instruments carried at fair value, by valuation method. The different
levels have been defined as follows:
●
Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities;
●
Level 2: are observable on the market for the asset or liability, either directly (i.e. as prices) or
indirectly (i.e. derived from prices);
●
Level 3: inputs for the asset or liability that are not based on observable market data (unobservable
inputs).
Annual Financial Report for the year 2025 – Section V.
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2025
72
31 December 2025 | |||||
In millions of EUR | Level 1 | Level 2 | Level 3 | Total | |
Financial assets carried at fair value: | |||||
Hedging: of which | - | 8 | - | 8 | |
Commodity derivatives cash flow hedge | - | 8 | - | 8 | |
Equity instruments at fair value through OCI: of which | - | - | 25 | 25 | |
Shares and interim certificates at fair value through OCI | - | - | 25 | 25 | |
Total | - | 8 | 25 | 33 | |
Financial liabilities carried at fair value: | |||||
Hedging: of which | - | 3 | - | 3 | |
Commodity derivatives cash flow hedge | - | 3 | - | 3 | |
Non-hedging: of which | - | 5 | - | 5 | |
Commodity derivates reported as trading | - | 1 | - | 1 | |
Currency derivatives reported as trading | 4 | 4 | |||
Total | - | 8 | - | 8 | |
31 December 2024 | |||||
In millions of EUR | Level 1 | Level 2 | Level 3 | Total | |
Financial assets carried at fair value: | |||||
Hedging: of which | - | 10 | - | 10 | |
Commodity derivatives cash flow hedge | - | 10 | - | 10 | |
Equity instruments at fair value through OCI : of which | - | - | 21 | 21 | |
Shares and interim certificates at fair value through OCI | - | - | 21 | 21 | |
Total | - | 10 | 21 | 31 | |
Financial liabilities carried at fair value: | |||||
Hedging: | - | 13 | - | 13 | |
Commodity derivatives cash flow hedge | - | 13 | - | 13 | |
Non-hedging: of which | - | 1 | - | 1 | |
Commodity derivates reported as trading | - | 1 | - | 1 | |
Total | - | 14 | - | 14 | |
There were no transfers between fair value levels in either 2025 or 2024. | |||||
All financial instruments held at amortised costs are categorised within Level 2 of the fair value hierarchy
(for detail of valuation methods refer to Note 2 (d) i – Assumption and estimation uncertainties).
Transactions with emission rights
The following information pertains to contracts on delivery or sale of emission rights. These contracts do
not meet the IFRS 9 criteria for derivatives (refer to Note 3(f) – Derivative financial instruments –
Transactions with emission rights and energy) and are reported as off-balance sheet items, not derivatives.
The management carefully assessed conditions of the contracts and concluded that all contracts are intended
to be settled via physical delivery needed for consumption or physically delivered quantities shall be sold
as part of its ordinary business, therefore the contracts are not reported as derivatives.
Forward operations
As at 31 December 2025 the Group is contractually obliged to forward purchase 68,000 pieces (2024:
1,391,000 pieces) of emission rights at an average price 71.71 EUR/piece (2024: 70.09 EUR/piece) with
delivery predominantly in 2026.
Annual Financial Report for the year 2025 – Section V.
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2025
73
27. Trade payables and other liabilities
In millions of EUR | 31 December 2025 | 31 December 2024 | ||
Trade payables | 148 | 198 | ||
Liabilities from dividends * | 244 | 176 | ||
Estimated payables | 133 | 109 | ||
Payroll liabilities | 49 | 56 | ||
Other tax liabilities | 28 | 28 | ||
Uninvoiced supplies | 24 | 20 | ||
Accrued expenses | 1 | - | ||
Advance payments received | 23 | 3 | ||
Other liabilities | 97 | 60 | ||
Total | 747 | 650 | ||
Non-current | 4 | 2 | ||
Current | 743 | 648 | ||
Total | 747 | 650 | ||
* non-controlling shareholder and to dividend payable in a.s. to both of its shareholders. | ||||
Trade payables and other liabilities have not been secured as at 31 December 2025 and 31 December 2024.
As at 31 December 2025 and 2024 the fair value of trade payables and other liabilities equal to its carrying
amount.
The Group’s exposure to currency and liquidity risk related to trade payables and other liabilities is
disclosed in Note 30 – Risk management.
28. Commitments and contingencies
Off balance sheet liabilities | ||||
In millions of EUR | 31 December 2025 | 31 December 2024 | ||
Commitments for future purchases | 220 | 535 | ||
Total | 220 | 535 |
Commitments
Commitments are represented by contracts for purchase of non-current assets of EUR 159 million (2024:
EUR 431 million) related mostly to SPP - distribúcia, a.s. of EUR 78 million (2024: EUR 0 million),
NAFTA a.s. of EUR 26 million (2024: EUR 5 million) and to ongoing decarbonization projects Plzeňská
teplárenská, a.s. of EUR 49 million. Remaining EUR 61 million (2024: EUR 104 million) arise from
different type of service contracts.
Off balance sheet asset | ||||
In millions of EUR | 31 December 2025 | 31 December 2024 | ||
Received loan commitments | 642 | 877 | ||
Other received commitments | 104 | 392 | ||
Other received guarantees and warranties | 504 | 317 | ||
Total | 1,250 | 1,586 |
Annual Financial Report for the year 2025 – Section V.
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2025
74
Other received guarantees and warranties mainly consist of third party parent company guarantees in the
amount of EUR 270 million (2024: EUR 274 million) recognised by eustream, a.s. and SPP - distribúcia,
a.s. and bank guarantees of EUR 235 million (2024: EUR 43 million) recognised by NAFTA a.s.
Other received commitments represent investment subsidies for future capital expenditures. As at 31
December 2025, they include a subsidy for Plzeňská teplárenská, a.s. of EUR 104 million (2024:
EUR 100 million). In 2024, the balance also included subsidies for United Energy, a.s. and Elektrárny
Opatovice, a.s., which were disposed during 2025.
29. Leases
(a)
Leases as a lessee
The Group leases namely buildings, pipelines and personal cars. The leases have various lease terms and
run under various period of time. For some leases, the Group has an option to renew the lease after the end
of the lease term.
The Group has elected not to recognise right-of-use assets and lease liabilities for some leases of low-value
assets and short-term leases (lease term 12 months or shorter). The Group recognises the lease payments
associated with these leases as an expense.
Right-of-use assets
Right-of-use assets related to leased land and buildings and technical equipment, plant and machinery that
do not meet the definition of investment property are presented as property, plant and equipment (refer to
Note 16).
In millions of EUR | Land and buildings | Technical equipment, plant and machinery | Total | |
Balance at 1 January 2025 | 30 | 32 | 62 | |
Depreciation charge for the year | (6) | (9) | (15) | |
Additions to right-of-use assets | 8 | 5 | 13 | |
Disposed entities | (1) | (14) | (15) | |
Balance at 31 December 2025 | 31 | 14 | 45 | |
Balance at 1 January 2024 | 29 | 37 | 66 | |
Depreciation charge for the year | (5) | (11) | (16) | |
Additions to right-of-use assets | 5 | 6 | 11 | |
Disposals | 1 | - | 1 | |
Balance at 31 December 2024 | 30 | 32 | 62 |
Maturity analysis of lease liabilities | ||||
In millions of EUR | 31 December 2025 | 31 December 2024 | ||
Undiscounted contractual cash flows by maturity | ||||
Up to 3 months | 1 | 2 | ||
3 months to 1 year | 12 | 13 | ||
1–5 years | 44 | 44 | ||
Over 5 years | 4 | 7 | ||
Total undiscounted | 61 | 66 | ||
Carrying amount | 49 | 66 | ||
Amounts recognized in profit or loss | ||||
In millions of EUR | 2025 | 2024 | ||
Depreciation charge for the year | (15) | (16) | ||
Interest on lease liabilities | (2) | (2) | ||
Expenses related to short-term leases | (5) | (13) | ||
Annual Financial Report for the year 2025 – Section V.
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2025
75
Amounts recognized in statement of cash flows | ||||
In millions of EUR | 2025 | 2024 | ||
Total cash outflow for leases | (13) | (15) |
(b) Leases as a lessor
During the year ended 31 December 2025, EUR 9 million (2024: EUR 7 million) was recognised as income
in profit or loss in respect of operating leases.
Annual Financial Report for the year 2025 – Section V.
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2025
76
30. Risk management
This section provides details of the Group’s exposure to financial and operational risks and the way it
manages such risks. The most important types of financial risks to which the Group is exposed are credit
risk, liquidity risk, interest rate risk, commodity price risk, foreign exchange risk and concentration risk.
As part of its operations, the Group is exposed to different market risks, notably the risk of changes in
interest rates, exchange rates and commodity prices. To minimise this exposure, the Group enters into
derivatives contracts to mitigate or manage the risks associated with individual transactions and overall
exposures, using instruments available on the market.
(a
)
Credit risk
i.
Exposure to credit risk
Credit risk is the risk of financial loss to the Group if a customer or counterparty to a financial instrument
fails to meet its contractual obligations, and arises principally from the Group’s receivables from customers
and loans and advances.
The Group has established a credit policy under which each new customer requesting products/services
over a certain limit (which is based on the size and nature of the particular business) is analysed individually
for creditworthiness before the Group’s standard payment and delivery terms and conditions are offered.
The Group uses credit databases for analysis of creditworthiness of new customers and after deemed
creditworthy they are also subject to Risk committee approval. The Group’s policy is also to require suitable
collateral to be provided by customers such as a bank guarantee or a parent company guarantee. The
exposure to credit risk is monitored on an ongoing basis.
Additional aspects mitigating credit risk
The Group primarily operates as an energy utility in a specific customer structure. The distribution
companies represent comparatively low credit risk. Large clients depend heavily on gas and electricity
supplies which significantly mitigates credit risks. In addition, bank guarantees and/or advance payments
are required before active operation with traders. Past experience indicates that these measures are highly
effective in terms of credit risk mitigation. Additionally, customers of distribution and supply subsegments,
as well as the Heat Infra segment are required to make prepayments further reducing credit risk.
The carrying amount of financial assets (plus guarantees issued) represents the maximum credit exposure
if counterparties fail to carry out completely their contractual obligations and any collateral or security
proves to be of no value. The maximum credit exposure amounts disclosed below therefore greatly exceed
expected losses, which are included in the allowance for impairment.
The Group establishes an allowance for impairment that represents its estimate of expected credit losses.
The Group measures loss allowances at an amount equal to lifetime ECLs except for those financial assets
for which credit risk has not increased significantly since initial recognition. For trade receivables and
contract assets, the Group has elected to measure loss allowances at an amount equal to lifetime ECLs.
At the reporting date, the maximum exposure to credit risk by the type of counterparty and by geographic
region is provided in the following tables.
Annual Financial Report for the year 2025 – Section V.
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2025
77
Credit risk by type of counterparty | |||||||
As at 31 December 2025 | |||||||
In millions of EUR | Corporate (non- financial institutions) | State, government | Financial institutions | Banks | Other | Total | |
Assets | |||||||
Cash and cash equivalents | - | - | 20 | 1,688 | - | 1,708 | |
Restricted cash | - | - | - | 1 | - | 1 | |
Trade receivables and other assets | 334 | 4 | - | - | 53 | 391 | |
Financial instruments and other financial assets | 35 | - | - | - | - | 35 | |
Total | 369 | 4 | 20 | 1,689 | 53 | 2,135 | |
As at 31 December 2024 | |||||||
In millions of EUR | Corporate (non- financial institutions) | State, government | Financial institutions | Banks | Other | Total | |
Assets | |||||||
Cash and cash equivalents | - | - | 50 | 1,704 | - | 1,754 | |
Restricted cash | - | - | - | 2 | - | 2 | |
Trade receivables and other assets | 339 | 8 | - | 3 | 112 | 462 | |
Financial instruments and other financial assets | 33 | - | - | - | - | 33 | |
Total | 372 | 8 | 50 | 1,709 | 112 | 2,251 | |
Annual Financial Report for the year 2025 – Section V.
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2025
78
Credit risk by location of debtor | |||||||||
As at 31 December 2025 | |||||||||
In millions of EUR | Slovakia | Czech Republic | United Kingdom | Netherlands | Germany | Poland | Hungary | Other | Total |
Assets | |||||||||
Cash and cash equivalents | 994 | 659 | - | - | 55 | - | - | - | 1,708 |
Restricted cash | - | 1 | - | - | - | - | - | - | 1 |
Trade receivables and other assets | 186 | 175 | 2 | - | 2 | 7 | 4 | 15 | 391 |
Financial instruments and other financial assets | 2 | 20 | - | 2 | 5 | - | - | 6 | 35 |
Total | 1,182 | 855 | 2 | 2 | 62 | 7 | 4 | 21 | 2,135 |
As at 31 December 2024 | |||||||||
In millions of EUR | Slovakia | Czech Republic | United Kingdom | Netherlands | Germany | Poland | Hungary | Other | Total |
Assets | |||||||||
Cash and cash equivalents | 1,434 | 163 | - | 1 | 121 | - | - | 35 | 1,754 |
Restricted cash | - | 2 | - | - | - | - | - | - | 2 |
Trade receivables and other assets | 200 | 225 | 3 | - | 4 | - | 4 | 26 | 462 |
Financial instruments and other financial assets | 2 | 24 | - | - | - | - | - | 7 | 33 |
Total | 1,636 | 414 | 3 | 1 | 125 | - | 4 | 68 | 2,251 |
Annual Financial Report for the year 2025 – Section V.
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2025
79
ii. Impairment losses
Loss allowances are measured on either of the following bases:
●
12-month ECLs: these are ECLs that result from possible default events within the 12 months after
the reporting date
●
Lifetime ECLs: these are ECLs that result from all possible default events over the expected life of
a financial instrument.
The Group measures loss allowances at an amount equal to lifetime ECLs except for those financial assets
for which credit risk has not increased significantly since initial recognition.
The ECL model is based on the principle of expected credit losses. For the purposes of designing the ECL
model, the portfolio of financial assets is split into segments. Financial assets within each segment are
allocated to three stages (Stage I – III) or to a group of financial assets that are impaired at the date of the
first recognition purchase or originated credit-impaired financial assets (“POCI”). At the date of the initial
recognition, the assets are included in Stage I or POCI. Subsequent allocation to stages is as follows: assets
with significant increase in credit risk (SICR) since initial recognition (Stage II), respectively credit
impaired assets (Stage III).
The Group has elected to measure loss allowances for trade receivables and contract assets at an amount
equal to lifetime ECLs. For more details see note 3(d).
Credit risk – impairment of financial assets
The following table provides information about the changes in the loss allowance during the period.
In millions of EUR | 12-month ECL | Lifetime ECL not credit- impaired | Lifetime ECL credit- impaired | Purchased credit- impaired | Total | |
Balance at 1 January 2025 | (6) | (7) | (33) | - | (46) | |
Impairment losses recognised during the year | - | - | (2) | - | (2) | |
Reversal of impairment losses recognised during the year | 1 | - | 1 | - | 2 | |
Write-offs | - | 1 | - | - | 1 | |
Change in credit risk | - | - | - | - | - | |
Balance at 31 December 2025 | (5) | (6) | (34) | - | (45) | |
In millions of EUR | 12-month ECL | Lifetime ECL not credit- impaired | Lifetime ECL credit- impaired | Purchased credit- impaired | Total | |
Balance at 1 January 2024 | (7) | (5) | (36) | - | (48) | |
Impairment losses recognised during the year | - | (2) | - | - | (2) | |
Reversal of impairment losses recognised during the year | 1 | - | 3 | - | 4 | |
Write-offs | - | - | 1 | - | 1 | |
Change in credit risk | - | - | (1) | - | (1) | |
Balance at 31 December 2024 | (6) | (7) | (33) | - | (46) |
The most significant changes that contributed to the change in the loss allowance during the period were
the write-off of financial assets and changes in the gross carrying amount of trade receivables
The movements in the allowance for impairment in respect of financial assets during the year ended 31
December 2025 and 2024 were as follows:
Annual Financial Report for the year 2025 – Section V.
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2025
80
In millions of EUR | Loans to other than credit institutions | Trade receivables and other assets | Total | |
Balance at 1 January 2025 | (12) | (34) | (46) | |
Impairment losses recognised during the year | (1) | (1) | (2) | |
Reversals of impairment losses recognised during the year | - | 2 | 2 | |
Write-offs | - | 1 | 1 | |
Change in credit risk | - | - | - | |
Balance at 31 December 2025 | (13) | (32) | (45) | |
In millions of EUR | Loans to other than credit institutions | Trade receivables and other assets | Total | |
Balance at 1 January 2024 | (11) | (37) | (48) | |
Impairment losses recognised during the year | - | (2) | (2) | |
Reversals of impairment losses recognised during the year | - | 4 | 4 | |
Write-offs | - | 1 | 1 | |
Change in credit risk | (1) | - | (1) | |
Balance at 31 December 2024 | (12) | (34) | (46) |
Credit risk – impairment of financial assets | ||||
As at 31 December 2025 | ||||
In millions of EUR | Loans to other than credit institutions | Trade receivables and other assets | Total | |
Before maturity (net) | 2 | 380 | 382 | |
After maturity (net) | - | 11 | 11 | |
Total | 2 | 391 | 393 | |
A – Assets (gross) | ||||
2 | 386 | 388 | ||
- | 9 | 9 | ||
- | 3 | 3 | ||
- | 1 | 1 | ||
13 | 24 | 37 | ||
Total assets (gross) | 15 | 423 | 438 | |
B – Loss allowances for assets | ||||
- | (6) | (6) | ||
- | - | - | ||
- | (1) | (1) | ||
- | (1) | (1) | ||
(13) | (24) | (37) | ||
Total loss | (13) | (32) | (45) | |
Total assets (net) | 2 | 391 | 393 |
Annual Financial Report for the year 2025 – Section V.
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2025
81
Credit risk – impairment of financial assets | ||||
As at 31 December 2024 | ||||
In millions of EUR | Loans to other than credit institutions | Trade receivables and other assets | Total | |
Before maturity (net) | 2 | 404 | 406 | |
After maturity (net) | - | 58 | 58 | |
Total | 2 | 462 | 464 | |
A – Assets (gross) | ||||
2 | 416 | 418 | ||
- | 55 | 55 | ||
- | 3 | 3 | ||
- | 2 | 2 | ||
12 | 20 | 32 | ||
Total assets (gross) | 14 | 496 | 510 | |
B – Loss allowances for assets | ||||
- | (11) | (11) | ||
- | (1) | (1) | ||
- | (1) | (1) | ||
- | (1) | (1) | ||
(12) | (20) | (32) | ||
Total loss | (12) | (34) | (46) | |
Total assets (net) | 2 | 462 | 464 |
Impairment losses on financial assets at amortized cost are calculated based on a 3-stage model. Impairment
losses from credit impaired financial assets relate either to trade receivables due from several customers
which have already been impaired at the date of the application of a 3-stage model or to receivables where
events that have a detrimental impact on the estimated future cash flows of the asset have occurred.
Remaining amount of impairment losses represents loss allowances at an amount equal to expected credit
losses.
Group calculates a collective loss allowance for trade receivables on the basis of a simplified approach
based on historical provision matrix. Probability of default is taken from a historical provision matrix (set
up separately by each component) with element of forward-looking information (the group incorporates the
following forward-looking information: GDP growth, unemployment rate, interest rates, change in stock
market index). The resulting collective loss allowance was not significant as at 31 December 2025.
The allowance for impairment in respect of financial assets is used to record impairment losses unless the
Group is satisfied that no recovery of the amount owed is possible; at that point the amounts are considered
irrecoverable and are written off against the financial asset directly.
The Group assessed the need to create a credit loss allowance for receivables due from banks (included in
the item cash and cash equivalents) and concluded that the resulting provision would be negligible.
Annual Financial Report for the year 2025 – Section V.
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2025
82
(b) Liquidity risk
Liquidity risk is the risk that the Group will encounter difficulties in meeting the obligations associated
with its financial liabilities that are settled by delivering cash or another financial asset. Various methods
of managing liquidity risk are used by individual companies in the Group.
The Group’s management focuses on methods used by financial institutions, i.e. diversification of sources
of funds. This diversification makes the Group flexible and limits its dependency on one financing source.
Liquidity risk is evaluated in particular by monitoring changes in the structure of financing and comparing
these changes with the Group’s liquidity risk management strategy. The Group also holds, as a part of its
liquidity risk management strategy, a portion of its assets in highly liquid funds. As of 31 December 2025
and 31 December 2024, the Group had available undrawn committed revolving credit and overdraft
facilities in the amount of EUR 642 million and EUR 877 million, respectively, providing additional
liquidity to the Group.
In addition to the strong liquidity position at the reporting date, liquidity risk has been further reduced by
refinancing transactions completed after the balance sheet date, which extended the Group’s debt maturity
profile and secured long-term funding at favorable terms. These post-balance sheet refinancing activities
materially strengthen the Group’s liquidity and reduce the volume of short-term refinancing required in
2026.
Typically the Group ensures that it has sufficient cash on demand and assets within short maturity to meet
expected operational expenses for a period of 90 days, including servicing financial obligations; this
excludes the potential impact of extreme circumstances that cannot reasonably be predicted, such as natural
disasters.
The table below provides an analysis of financial liabilities by relevant maturity groupings based on the
remaining period from the reporting date to the contractual maturity date. It is presented under the most
prudent consideration of maturity dates where options or repayment schedules allow for early repayment
possibilities. Therefore, in the case of liabilities, the earliest required repayment date is shown while for
assets the latest possible repayment date is disclosed. Those liabilities that do not have a contractual
maturity date are grouped together in the “undefined maturity” category.
Annual Financial Report for the year 2025 – Section V.
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2025
83
Maturities of financial liabilities | ||||||
As at 31 December 2025 | ||||||
In millions of EUR | Carrying amount | Contractual cash flows (1) | Up to 3 months | 3 months to 1 year | 1–5 years | Over 5 years |
Liabilities | ||||||
Loans and borrowings | (2) 3,534 | 3,870 | 21 | 638 | 1,528 | 1,683 |
Trade payables and other liabilities | (3) 724 | 724 | 704 | 16 | 4 | - |
Financial instruments and financial liabilities | 8 | 8 | 3 | 3 | 2 | - |
Total | 4,266 | 4,602 | 728 | 657 | 1,534 | 1,683 |
Net liquidity risk position (4),(5) | (2,254) | (2,589) | 733 | (113) | (1,528) | (1,681) |
* | ||||||
(1) | ||||||
(2) | ||||||
(3) | ||||||
(4) operating and financing cash flows, which will address items reported under Loans and borrowings. The principles for maintaining 30(h) | ||||||
(5) payments in amount of EUR 82 million as these items | ||||||
As at 31 December 2024 | ||||||
In millions of EUR | Carrying amount | Contractual cash flows (1) | Up to 3 months | 3 months to 1 year | 1–5 years | Over 5 years |
Liabilities | ||||||
Loans and borrowings | (2) 3,569 | 3,727 | 526 | 73 | 2,114 | 1,014 |
Trade payables and other liabilities | (3) 647 | 647 | 625 | 20 | 2 | - |
Financial instruments and financial liabilities | 14 | 14 | 12 | - | 2 | - |
Total | 4,230 | 4,388 | 1,163 | 93 | 2,118 | 1,014 |
Net liquidity risk position (4),(5) | (2,219) | (2,377) | 821 | (73) | (2,114) | (1,011) |
* | ||||||
(1) | ||||||
(2) | ||||||
(3) | ||||||
(4) operating and financing cash flows, which will address items reported under Loans and borrowings. The principles for maintaining 30(h) | ||||||
(5) payments in amount of EUR 84 million as these items |
Annual Financial Report for the year 2025 – Section V.
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2025
84
(c) Interest rate risk
The Group’s operations are subject to the risk of interest rate fluctuations to the extent that interest-earning
assets (including investments) and interest-bearing liabilities mature or re-price at different times or in
differing amounts. The length of time for which the rate of interest is fixed on a financial instrument
therefore indicates to what extent it is exposed to interest rate risk. The table below provides information
on the extent of the Group’s interest rate exposure based either on the contractual maturity date of its
financial instruments or, in the case of instruments that re-price to a market rate of interest before maturity,
the next re-pricing date. Those assets and liabilities that do not have a contractual maturity date or are not
interest-bearing are grouped together in the “maturity undefined” category.
Various types of derivatives are used to reduce the amount of debt exposed to interest rate fluctuations and
to reduce borrowing costs and include mainly interest rate swaps.
These contracts are normally agreed with a notional amount lower than or equal to that of the underlying
financial liability and expiry date, so that any change in the fair value and/or expected future cash flows of
these contracts is offset by a corresponding change in the fair value and/or the expected future cash flows
from the underlying position.
Financial information relating to interest bearing and non-interest bearing assets and liabilities and their
contractual maturity or re-pricing dates as at 31 December 2025 is as follows:
In millions of EUR | Up to 1 year | 1 year to 5 years | Over 5 years | Undefined maturity (or non-interest bearing) | Total | |
Assets | ||||||
Cash and cash equivalents | 1,702 | - | - | 6 | 1,708 | |
Restricted cash | - | - | - | 1 | 1 | |
Trade receivables and other assets | 17 | - | - | 374 | 391 | |
Financial instruments and other financial assets | 1 | 1 | - | 33 | 35 | |
Total | 1,720 | 1 | - | 414 | 2,135 | |
Liabilities | ||||||
Loans and borrowings | 681 | 1,247 | 1,606 | - | 3,534 | |
Trade payables and other liabilities | 2 | - | - | 745 | 747 | |
Financial instruments and financial liabilities | 3 | 1 | 1 | 3 | 8 | |
Total | 686 | 1,248 | 1,607 | 748 | 4,289 | |
Net interest rate risk position | 1,034 | (1,247) | (1,607) | (334) | (2,154) | |
Effect of interest rate swaps | - | - | - | - | - | |
Net interest rate risk position (incl. IRS) | 1,034 | (1,247) | (1,607) | (334) | (2,154) |
(1) Disregarding agreed interest rate swaps.
Notional amounts of financial instruments are included in Note 26 – Financial instruments.
Annual Financial Report for the year 2025 – Section V.
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2025
85
Interest rate risk exposure as at 31 December 2024 was as follows: | ||||||
In millions of EUR | Up to 1 year | 1 year to 5 years | Over 5 years | Undefined maturity (or non-interest bearing) | Total | |
Assets | ||||||
Cash and cash equivalents | 1,750 | - | - | 4 | 1,754 | |
Restricted cash | - | 1 | - | 1 | 2 | |
Trade receivables and other assets | 3 | - | - | 459 | 462 | |
Financial instruments and other financial assets | 11 | 1 | 1 | 20 | 33 | |
Total | 1,764 | 2 | 1 | 484 | 2,251 | |
Liabilities | ||||||
Loans and borrowings | 642 | 1,923 | 1,004 | - | 3,569 | |
Trade payables and other liabilities | 3 | - | - | 647 | 650 | |
Financial instruments and financial liabilities | 14 | - | - | - | 14 | |
Total | 659 | 1,923 | 1,004 | 647 | 4,233 | |
Net interest rate risk position | 1,105 | (1,921) | (1,003) | (163) | (1,982) | |
Effect of interest rate swaps | - | - | - | - | - | |
Net interest rate risk position (incl. IRS) | 1,105 | (1,921) | (1,003) | (163) | (1,982) | |
(1) The Group contractually agreed to swap float interest rate for a fixed rate (at some of its bank loans).
(2) Disregarding agreed interest rate swaps.
Notional amounts of financial instruments are included in Note 26 – Financial instruments.
Sensitivity analysis
The Group performs stress testing using a standardised interest rate shock, for financial assets and liabilities
to be repriced in up to 1 year time, i.e. an immediate decrease/increase in interest rates by 1% along the
whole yield curve is applied to the interest rate positions of the portfolio.
At the reporting date, a change of 1% in interest rates would have increased or decreased profit by the
amounts shown in the table below. This analysis assumes that all other variables, in particular foreign
currency rates, remain constant.
In millions of EUR | 2025 | 2024 | |
Profit (loss) | Profit (loss) | ||
Decrease in interest rates by 1pp | 4 | (4) | |
Increase in interest rates by 1pp | (8) | 4 |
(d) Foreign exchange risk
The Group takes on exposure to the effects of fluctuations in the prevailing foreign currency exchange rates
on its financial position and cash flows.
The Group is exposed to a currency risk on sales, purchases and services that are denominated in currency
other that the respective functional currencies of Group entities, primarily EUR.
Various types of derivatives are used to reduce the exchange rate risk on foreign currency assets, liabilities
and expected future cash flows. These include forward exchange contracts, most with a maturity of less
than one year.
These contracts are also normally agreed with a notional amount and expiry date equal to that of the
underlying financial liability or the expected future cash flows, so that any change in the fair value and/or
future cash flows of these contracts stemming from a potential appreciation or depreciation of the functional
currency against the foreign currencies is fully offset by a corresponding change in the fair value and/or the
expected future cash flows of the underlying position.
Annual Financial Report for the year 2025 – Section V.
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2025
86
In respect of monetary assets and liabilities denominated in foreign currencies, the Group ensures that its
net exposure is kept to an acceptable level by buying or selling foreign currencies at spot rates when
necessary to address short-term imbalances on the individual companies level.
As of 31 December 2025 the Group is exposed to foreign exchange risk when financial assets and liabilities
are denominated in a currency other than the functional currency in which they are measured (e.g. Slovak
entities holding CZKs). Assets and liabilities denominated in a currency different from the functional
currency in which they are measured are presented in the table below:
In millions of EUR | CZK | USD | EUR | Other | Total | |
Assets | ||||||
Cash and cash equivalents | 57 | - | 7 | - | 64 | |
Trade receivables and other assets | 2 | - | 45 | - | 47 | |
Financial instruments and other financial assets | 3 | - | 106 | - | 109 | |
Total (A) | 62 | - | 158 | - | 220 | |
Off balance sheet assets (B) | ||||||
Receivables from derivative operations | - | - | 173 | - | 173 | |
- | - | 173 | - | 173 | ||
Liabilities | ||||||
Loans and borrowings | - | - | - | - | - | |
Trade payables and other liabilities | 1 | 1 | 52 | - | 54 | |
Financial instruments and financial liabilities | 242 | - | 22 | - | 264 | |
Total (C) | 243 | 1 | 74 | - | 318 | |
Off balance sheet liabilities (D) | ||||||
Payables related to derivative operations | - | - | 179 | - | 179 | |
- | - | 179 | - | 179 | ||
Net FX risk position (E) = (A - C) | (181) | (1) | 84 | - | (98) | |
Effect of forward exchange contracts (F) = (B - D) | - | - | (6) | - | (6) | |
Net FX risk position (incl. forward exchange contracts and CF hedges on FX risk) (G) = (E + F) | (181) | (1) | 78 | - | (104) | |
(1) The amount relates to a cash flow hedge recognized by the Group’s | ||||||
Annual Financial Report for the year 2025 – Section V.
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2025
87
Foreign currency denominated intercompany receivables and payables are included in sensitivity analysis
for foreign exchange risk. These balances are eliminated in consolidated balance sheet but their effect on
profit or loss of their currency revaluation is not fully eliminated. Therefore, the total amounts of exposure
to foreign exchange risk do not equal to respective items reported on consolidated balance sheet.
As of 31 December 2024 the Group is exposed to foreign exchange risk when financial assets and liabilities
are denominated in a currency other than the functional currency in which they are measured. Assets and
liabilities denominated in a currency different from the functional currency in which they are measured are
presented in the table below:
In millions of EUR | CZK | USD | EUR | Other | Total | |
Assets | ||||||
Cash and cash equivalents | 98 | - | 13 | - | 111 | |
Trade receivables and other assets | 3 | - | 89 | 1 | 93 | |
Financial instruments and other financial assets | 121 | - | 120 | - | 241 | |
Total (A) | 222 | - | 222 | 1 | 445 | |
Off balance sheet assets (B) | ||||||
Receivables from derivative operations | - | - | 106 | - | 106 | |
- | - | 106 | - | 106 | ||
Liabilities | ||||||
Loans and borrowings | - | - | 85 | - | 85 | |
Trade payables and other liabilities | 1 | 1 | 73 | - | 75 | |
Financial instruments and financial liabilities | 247 | - | 51 | - | 298 | |
Total (C) | 248 | 1 | 209 | - | 458 | |
Off balance sheet liabilities (D) | ||||||
Payables related to derivative operations | - | - | 105 | - | 105 | |
- | - | 105 | - | 105 | ||
Net FX risk position (E) = (A - C) | (26) | (1) | 13 | 1 | (13) | |
Effect of forward exchange contracts (F) = (B - D) | - | - | 1 | - | 1 | |
Net FX risk position (incl. forward exchange contracts and CF hedges on FX risk) (G) = (E + F) | (26) | (1) | 14 | 1 | (12) | |
(1) The amount relates to a cash flow hedge recognized by the Group’s | ||||||
Foreign currency denominated intercompany receivables and payables are included in sensitivity analysis
for foreign exchange risk. These balances are eliminated in consolidated balance sheet but their effect on
profit or loss of their currency revaluation is not fully eliminated. Therefore, the total amounts of exposure
to foreign exchange risk do not equal to respective items reported on consolidated balance sheet.
Off-balance sheet assets and liabilities include payables and receivables from forward exchange contracts
(refer to Note 26 – Financial instruments for more details).
The following significant exchange rates applied during the period:
31 December 2025 | 31 December 2024 | ||||
EUR | Average rate | Reporting date spot rate | Average rate | Reporting date spot rate | |
CZK 1 | 0.04051 | 0.04126 | 0.03981 | 0.03971 | |
Annual Financial Report for the year 2025 – Section V.
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2025
88
Sensitivity analysis
A strengthening (weakening) of the currency other than the functional currency in which financial assets
and liabilities are measured, as indicated below, against the functional currency at the reporting date would
have increased (decreased) net assets by the amounts shown in the following table. This analysis is based
on foreign currency exchange rate variances that the Group considered to be reasonably likely at the end of
the reporting period. The analysis assumes that all other variables, in particular interest rates, remain
constant.
Effect in millions of EUR | 2025 | 2024 | |
Profit (loss) | Profit (loss) | ||
CZK (5% strengthening of CZK) | 9 | (5) | |
EUR (5% strengthening of EUR) | (4) | - | |
A weakening of the currency other than the functional currency in which financial assets and liabilities are
measured at the reporting date would have had the equal but opposite effect on the above currencies to the
amounts shown above, on the basis that all other variables remain constant.
(e) Commodity risk
The Group’s exposure to commodity risk principally consists of exposure to fluctuations in the prices of
commodities, especially electricity, gas and emission allowances, both on the supply and the demand side.
The Group’s primary exposure to commodity price risks arises from the nature of its physical assets, namely
power plants and to a lesser extent from proprietary trading activities.
In case of favourable power prices, the Group manages the natural commodity risk connected with its
electricity generation by selling the power it expects to produce in the cogeneration power plants and in
ancillary services on an up to three-year forward basis. In case of low power prices, instead of entering into
such forward contracts, the Group uses the flexibility of its own power generating capacities to react to
current power prices with the aim to achieve better average selling price.
In addition, the Group purchases emission allowances on a forward basis.
The Group aims to reduce exposure to fluctuations in commodity prices through the use of swaps and
various other types of derivatives.
The Group manages the commodity price risks associated with its proprietary trading activities by generally
trading on a back-to-back basis, i.e., purchasing from the market where it has a customer in place to
purchase the commodity.
Commodity derivatives primarily represents forwards on purchase or sale of electricity and gas (for more
details refer to Note 26 – Financial instruments).
Sensitivity analysis
A 5% change in the market price of the natural gas would have impact on the fair value of cash flow hedging
derivatives of EUR 0 million (2024: EUR 1 million).
A
change in the market price of the electricity of 1 EUR/MWh would have impact on the fair value of cash
flow hedging derivatives of EUR 2 million (2024: negative EUR 3 million).
(f)
Regulatory risk
The Group is exposed to risks resulting from the regulation of electricity and gas industries in the countries
in which it undertakes business activities, primarily in the Slovak Republic and the Czech Republic.
Changes to existing regulations or the adoption of new regulations may have an adverse effect on the
Group’s business, financial condition, results of operations, cash flows and prospects.
The price regulation in the Slovak Republic is carried out by the Slovak Regulatory Office for Network
Industries (“RONI”) in accordance with Act No. 250/2012 Coll., on Regulation in Network Industries,
Annual Financial Report for the year 2025 – Section V.
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2025
89
and the implementing legislation issued by RONI for the current regulatory period started on 1 January
2023 and ending on 31 December 2027.
Electricity industry price regulation is regulated by RONI’s Decrees No. 154/2024 Coll. and No. 402/2024
Coll. The maximum price for access to the distribution network and electricity distribution reflects
electricity distribution and electricity transmission, including losses incurred during electricity
transmission, and is denominated in euro per unit of electricity distributed to end consumers in the relevant
year. Electricity prices for vulnerable customers, including households and small enterprises, are regulated
by providing a capped profit margin per MWh.
Slovak law provides for the designation of a supplier of last resort in the electricity sector that must supply
electricity to a customer whose original electricity supplier has lost its ability to supply electricity. The
supply of electricity by the supplier of last resort is subject to price regulation and the supplier of last resort
is designated by RONI on the basis of a tender published by RONI. SSE is currently designated as a
supplier of last resort for the area of central Slovak Republic.
Gas price regulation is regulated by RONI’s Decree No. 147/2024 Coll. The regulated prices for access to
the distribution system and gas distribution are charged by the gas DSO to gas suppliers who then pass the
prices to their end-customers. Gas prices for vulnerable customers, including households and small
enterprises, are regulated by providing a capped profit margin per MWh.
The gas transmission tariffs applicable to Eustream are primarily regulated by Commission Regulation
2017/460 of 16 March 2017 establishing a network code on harmonised transmission tariff structures for
gas (network code on harmonised tariffs), in combination with national legislation. RONI issued a decision
implementing the rules of the network code, setting the reference price methodology including reference
prices applicable for entry/exit points with EU Member States. Benchmarking of tariffs is used as the
secondary adjustment of the reference prices calculated on the cost base principles. On 5 June 2024, RONI
published a price decision regarding the transmission tariffs. The new tariffs, effective from the beginning
of 2025 until the end of the current regulatory period in 2027, are set at EUR 1.0/MWh/day for all entry
and exit points, except for the domestic point, which is set at EUR 0.9/MWh/day for both entry and exit
points. The new tariff structure is more transparent, providing a unified rate for all connection points, with
a discount only for the domestic point. Additionally, the price decision introduced a floating tariff for all
entry and exit points, enabling tariff adjustments in the event of significant changes in economic
parameters, even for existing contracts. This change will not apply to existing long-term contracts that
have a fixed operating schedule.
(g)
Concentration risk
Major part of gas transmission, gas and power distribution and gas storage revenues, which are primarily
recognized by SPPI Group and Stredoslovenská distribučná, a.s., are concentrated to a small number of
customers. This is caused by the nature of business which has high barriers of entry. At the same time,
majority of these revenues is subject to regulation as well as recognized under long-term contracts, often
under ‚take or pay‘ schemes which limit the volatility of revenues year-on-year. From the credit risk
perspectives, the counterparties are typically high-profile entities which are dependent on the supplied
service which naturally limits the present credit risk.
Annual Financial Report for the year 2025 – Section V.
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2025
90
(h)
Capital management
The Group’s policy is to maintain a strong capital base so as to maintain investor, creditor and market
confidence and to sustain future development of its business.
The Group manages its capital to ensure that entities in the Group will be able to continue as a going concern
while maximising the return to shareholders through the optimisation of the debt and equity balance.
Neither the Company nor any of its subsidiaries are subject to externally imposed capital requirements.
In millions of EUR | 31 December 2025 | 31 December 2024 | ||
Proportionate Gross Debt* | 2,956 | 2,706 | ||
Less: Proportionate cash and cash equivalents* | 1,206 | 1,013 | ||
Proportionate net debt | 1,750 | 1,693 | ||
Proportionate EBITDA* | 552 | 749 | ||
Proportionate net debt to proportionate EBITDA* | 3.17 | 2.26 | ||
* Proportionate net debt documentation of the EPIF Group. Proportionate values are calculated as values eliminations and consolidation adjustments) multiplied by effective shareholding of the Company in | ||||
(i
)
Hedge accounting
The Group applies hedge accounting for derivative instruments used to hedge commodity price risk and
foreign-currency risk. These hedging relationships primarily relate to electricity and gas commodity
derivatives and foreign-exchange derivatives for cash-flows arising from the Group’s power production
and commodity supply activities. The effective portion of fair value changes in these cash-flow hedges is
recognised in equity (hedging reserve).
In addition to these active hedging relationships, the balance at 31 December 2025 also includes the residual
fair value effects of historical interest-rate swap hedging instruments. The Group no longer uses derivatives
to hedge interest rate risk, and all interest-rate swaps were fully settled in prior periods; the remaining
balance therefore reflects only the unwind of these legacy hedge relationships in accordance with IFRS 9.
During the period the Group reclassified EUR 4 million (positive impact on profit or loss) including non-
controlling interest from the hedging reserves to profit or loss (2024: EUR 28 million negative impact on
profit or loss).
The following table provides a reconciliation of amounts recorded in equity attributable to owners of the
Company by category of hedging instrument:
In millions of EUR | Commodity derivatives – cash flow hedge (1) | Interest rate swaps – cash flow hedge | Total | |
Balance at 1 January 2025 | 4 | (10) | (6) | |
Effect of change in functional currency | - | - | - | |
Cash flow hedges reclassified to profit or loss | (4) | - | (4) | |
Deferred tax – cash flow hedges reclassified to profit or loss | 2 | - | 2 | |
Revaluation of cash flow hedges | 8 | 4 | 12 | |
Deferred tax – cash flow hedges revaluation | - | (1) | (1) | |
Balance at 31 December 2025 | 10 | (7) | 3 | |
(1) Including also hedge for foreign currency risk | ||||
Annual Financial Report for the year 2025 – Section V.
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2025
91
In millions of EUR | Commodity derivatives – cash flow hedge (1) | Interest rate swaps – cash flow hedge | Total | |
Balance at 1 January 2024 | 14 | (8) | 6 | |
Effect of change in functional currency | - | - | - | |
Cash flow hedges reclassified to profit or loss | 50 | - | 50 | |
Deferred tax – cash flow hedges reclassified to profit or loss | (10) | - | (10) | |
Revaluation of cash flow hedges | (39) | (2) | (41) | |
Deferred tax – cash flow hedges revaluation | (11) | - | (11) | |
Balance at 31 December 2024 | 4 - | (10) | (6) | |
Cash flow hedges – hedge of foreign currency risk and commodity price risk of revenues of power
production with financial derivatives
The Group applies hedge accounting for hedging instruments designed to hedge the commodity price risk
and the foreign currency risk of cash-flows from Group’s power production sold to or commodities
purchased from the third parties. This includes commodity derivatives with net settlement for commodity
risk. As a result of the hedge relationship on the Group level, the Group recorded a change in a foreign
currency cash flow hedge reserve of positive EUR 5 million (2024: negative EUR 14 million). For risk
management policies, refer to Note 30 (d) and (e) – Risk management policies and disclosures.
Cash flow hedges – hedge of commodity price risk of gas
In past, the Group had been applying hedge accounting for commodity hedging instruments designed to
hedge cash flow from sales of gas. Then existing hedging instruments were commodity swaps to hedge
selling price for surplus of gas in-kind. In 2024, this hedge relationship expired and no further hedging
arrangements were entered into, which effectively concluded the hedge accounting. As a result of the hedge
relationship on the Group level, the Group recorded no change in a cash flow hedge reserve (2024: positive
EUR 3 million). For risk management policies, refer to Note 30 (d) and (e) – Risk management policies
and disclosures.
The commodity price risk recorded by the Group as at 31 December 2025 and | |||||
In millions of EUR | 31 December 2025 | 31 December 2025 | 31 December 2025 | 31 December 2025 | |
Positive fair value | Negative fair value | Nominal amount hedged (buy) | Nominal amount hedged (sell) | ||
Up to 3 months | - | - | - | - | |
3 months to 1 year | 4 | 3 | 149 | 149 | |
1–5 years | 4 | - | 88 | 84 | |
Over 5 years | - | - | - | - | |
Total | 8 | 3 | 237 | 233 | |
In millions of EUR | 31 December 2024 | 31 December 2024 | 31 December 2024 | 31 December 2024 | |
Positive fair value | Negative fair value | Nominal amount hedged (buy) | Nominal amount hedged (sell) | ||
Up to 3 months | - | - | - | - | |
3 months to 1 year | 8 | 12 | 128 | 133 | |
1–5 years | 2 | 1 | 25 | 24 | |
Over 5 years | - | - | - | - | |
Total | 10 | 13 | 153 | 157 | |
Annual Financial Report for the year 2025 – Section V.
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2025
92
31. Related parties
The Group has a related party relationship with its shareholders and other parties, as identified in the
following table:
(a) | The summary of transactions with related parties during the period ended 31 and 31 December 2024 was as follows: | ||||
In millions of EUR | Accounts receivable and other financial assets | Accounts payable and other financial liabilities | Accounts receivable and other financial assets | Accounts payable and other financial liabilities | |
31 December 2025 | 31 December 2025 | 31 December 2024 | 31 December 2024 | ||
Ultimate shareholder (1) | - | - | - | - | |
Companies controlled by ultimate shareholders | 13 | 129 | 23 | 47 | |
Companies under significant influence by ultimate shareholders | - | - | - | - | |
Associates | 5 | - | - | 16 | |
Other Related party | - | 2 | - | 1 | |
Total | 18 | 131 | 23 | 64 | |
(1) Daniel Křetínský represents the ultimate shareholder | |||||
(b) | The summary of transactions with related parties during the period ended 31 and 31 December 2024 was as follows: | ||||
In millions of EUR | Revenues | Expenses | Revenues | Expenses | |
31 December 2025 | 31 December 2025 | 31 December 2024 | 31 December 2024 | ||
Ultimate shareholder (1) | - | - | - | - | |
Companies controlled by ultimate shareholders | 53 | (451) | 109 | (350) | |
Companies under significant influence by ultimate shareholders | - | - | - | - | |
Associates | 7 | (132) | - | (159) | |
Other Related party | 1 | (2) | 1 | (3) | |
Total | 61 | (585) | 110 | (512) | |
(1) Daniel Křetínský represents the ultimate shareholder | |||||
Transactions with the key management personnel
For the financial years ended 31 December 2025 and 2024 the EPIF Group’s key management personnel is
represented by members of the Board of Directors of the following major entities: EP Infrastructure, a.s.,
Stredoslovenská energetika Holding, a.s. and its major subsidiaries, SPP Infrastructure, a.s., eustream, a.s.,
SPP – distribúcia, a.s., NAFTA a.s., NAFTA Germany GmbH, POZAGAS a.s., Elektrárny Opatovice, a.s.
and EOP Distribuce, a.s., United Energy, a.s., Plzeňská teplárenská a.s., SPP Storage, s.r.o. and EP
ENERGY TRADING, a.s.
Total compensation and related social and health insurance charges incurred by the respective entities were
as follows:
In millions of EUR | 2025 | 2024 | |
Nr. of personnel | 61 | 83 | |
Compensation, fees and rewards | 4 | 4 | |
Compulsory social security contributions | 1 | 1 | |
Total | 5 | 5 |
Other remuneration of Group management (management of all components within the Group) is included
in Note 10 – Personnel expenses. All transactions were performed under the arm’s length principle.
Annual Financial Report for the year 2025 – Section V.
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2025
93
32. Subsequent events
On 23 January 2026, the Company paid a EUR 100 million dividend that had been declared in December
2025.
On 29 January 2026, the Company successfully completed the issuance of EUR 500 million 4.375% senior
unsecured green notes (the “2034 Notes”) under its EMTN Programme. The 2034 Notes were issued at a
price of 99.630% and mature on 29 January 2034.
On 12 February 2026, the Company voluntarily repaid in full the remaining outstanding amounts under its
Schuldschein loan agreements, totalling EUR 210 million. This repayment fully discharged the Company’s
obligations under the Schuldschein financing.
Except for the matters described above and elsewhere in the Notes, the Company’s management is not
aware of any other material subsequent events that could have an effect on the consolidated financial
statements as at 31 December 2025.
Appendix*:
Appendix to the Notes to the Consolidated financial statements – Group entities
* Information contained in the appendices form part of the complete set of these consolidated
financial statements.
Signature of the authorised representative on 19 March 2026
Annual Financial Report for the year 2025 – Section V.
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2025
94
Appendix to the Notes to the Consolidated financial statements - Group entities
The list of the Group entities as at 31 December 2025 and 31 December 2024 | |||||||||
31 December 2025 | 31 December 2024 | 2025 | 2024 | ||||||
Country of incorporation | Segment | Ownership % | Ownership interest | Ownership % | Ownership interest | Measurement | Measurement | ||
EP Infrastructure, a.s. * | Czech Republic | Other operations | |||||||
EP Energy, a.s. * | Czech Republic | Other operations | 100 | Direct | 100 | Direct | Consolidated | Consolidated | |
AISE, s.r.o. | Czech Republic | Other operations | 80 | Direct | 80 | Direct | Consolidated | Consolidated | |
MARKON PCE s.r.o. | Czech Republic | Other operations | 100 | Direct | 100 | Direct | At cost | At cost | |
PT měření, a.s. | Czech Republic | Heat Infra | 100 | Direct | 100 | Direct | Consolidated | Consolidated | |
United Energy, a.s. | Czech Republic | Heat Infra | - | - | 100 | Direct | - | Consolidated | |
EVO - Komořany, a.s. | Czech Republic | Heat Infra | - | - | 100 | Direct | - | Consolidated | |
United Energy Moldova, s.r.o. | Czech Republic | Heat Infra | - | - | 100 | Direct | - | Consolidated | |
United Energy Invest, a.s. | Czech Republic | Heat Infra | - | - | 100 | Direct | - | Consolidated | |
Nadační fond pro rozvoj vzdělávání | Czech Republic | Heat Infra | - | - | 100 | Direct | - | At cost | |
EP Sourcing, a.s. | Czech Republic | Heat Infra | - | - | 100 | Direct | - | Consolidated | |
EP ENERGY TRADING, a.s. | Czech Republic | Gas and power distribution | 100 | Direct | 100 | Direct | Consolidated | Consolidated | |
Dobrá Energie s.r.o. | Czech Republic | Gas and power distribution | 100 | Direct | 100 | Direct | Consolidated | Consolidated | |
Gazela Energy, a.s. (1) | Czech Republic | Gas and power distribution | - | - | 100 | Direct | - | Consolidated | |
Elektrárny Opatovice, a.s. | Czech Republic | Heat Infra | - | - | 100 | Direct | - | Consolidated | |
V A H O s.r.o. | Czech Republic | Heat Infra | - | - | 100 | Direct | - | At cost | |
Farma Lístek, s.r.o. | Czech Republic | Heat Infra | - | - | 100 | Direct | - | At cost | |
MR TRUST s.r.o.* | Czech Republic | Other operations | 100 | Direct | 100 | Direct | Consolidated | Consolidated | |
ARISUN, s.r.o. | Slovakia | Other operations | 100 | Direct | 100 | Direct | Consolidated | Consolidated | |
POWERSUN a.s. | Czech Republic | Other operations | 100 | Direct | 100 | Direct | Consolidated | Consolidated | |
Triskata, s.r.o. | Slovakia | Other operations | 100 | Direct | 100 | Direct | Consolidated | Consolidated | |
VTE Pchery, s.r.o. | Czech Republic | Other operations | 100 | Direct | 100 | Direct | Consolidated | Consolidated | |
Alternative Energy, s.r.o. | Slovakia | Other operations | 99 | Direct | 99 | Direct | Consolidated | Consolidated | |
Severočeská teplárenská, a.s. | Czech Republic | Heat Infra | 100 | Direct | 100 | Direct | Consolidated | Consolidated | |
GABIT spol. s r.o. | Czech Republic | Heat Infra | 100 | Direct | 100 | Direct | At cost | At cost | |
DOTERM Správa, s.r.o. | Czech Republic | Heat Infra | 100 | Direct | - | - | At cost | - | |
EOP Distribuce, a.s. | Czech Republic | Heat infra | 100 | Direct | 100 | Direct | Consolidated | Consolidated | |
Stredoslovenská energetika Holding, a.s. | Slovakia | Gas and power distribution | 49 | Direct | 49 | Direct | Consolidated | Consolidated | |
Kinet s.r.o. | Slovakia | Gas and power distribution | 100 | Direct | 100 | Direct | Consolidated | Consolidated | |
Kinet Inštal s.r.o. (3) | Slovakia | Gas and power distribution | - | - | 100 | Direct | - | Consolidated | |
Stredoslovenská distribučná, a.s. | Slovakia | Gas and power distribution | 100 | Direct | 100 | Direct | Consolidated | Consolidated | |
Elektroenergetické montáže, s.r.o. | Slovakia | Gas and power distribution | 100 | Direct | 100 | Direct | Consolidated | Consolidated | |
SSE - Metrológia s.r.o. | Slovakia | Gas and power distribution | 100 | Direct | 100 | Direct | Consolidated | Consolidated | |
Stredoslovenská energetika - Project Development, s.r.o. | Slovakia | Gas and power distribution | 100 | Direct | 100 | Direct | Consolidated | Consolidated | |
SSE-Solar, s.r.o. | Slovakia | Gas and power distribution | 100 | Direct | 100 | Direct | Consolidated | Consolidated | |
SPX, s.r.o. | Slovakia | Gas and power distribution | 33.33 | Direct | 33.33 | Direct | Equity | Equity | |
Energotel, a.s. | Slovakia | Gas and power distribution | 20 | Direct | 20 | Direct | Equity | Equity | |
SSE CZ, s.r.o. v likvidaci (2) | Czech Republic | Gas and power distribution | - | - | 100 | Direct | - | Consolidated | |
SSE-TelcoHub, s.r.o. (5) | Slovakia | Gas and power distribution | 100 | Direct | 100 | Direct | Consolidated | Consolidated | |
SSE - MVE, s.r.o. | Slovakia | Gas and power distribution | 100 | Direct | 100 | Direct | Consolidated | Consolidated | |
Annual Financial Report for the year 2025 – Section V.
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2025
95
31 December 2025 | 31 December 2024 | 2025 | 2024 | ||||||
Country of incorporation | Segment | Ownership % | Ownership interest | Ownership % | Ownership interest | Measurement | Measurement | ||
Stredoslovenská energetika, a.s. | Slovakia | Gas and power distribution | 100 | Direct | 100 | Direct | Consolidated | Consolidated | |
PW geoenergy a.s. | Slovakia | Gas and power distribution | 51 | Direct | 51 | Direct | Consolidated | Consolidated | |
EP ENERGY HR d.o.o. | Croatia | Other operations | 100 | Direct | 100 | Direct | At cost | At cost | |
EP Cargo a.s. | Czech Republic | Heat Infra | - | - | 100 | Direct | - | Consolidated | |
Patamon a.s. | Czech Republic | Other operations | - | - | 100 | Direct | - | At cost | |
Plzeňská teplárenská, a.s. | Czech Republic | Heat Infra | 35 | Direct | 35 | Direct | Consolidated | Consolidated | |
Plzeňská teplárenská SERVIS IN | Czech Republic | Heat Infra | 100 | Direct | 100 | Direct | At cost | At cost | |
fa Tříska top s.r.o. | Czech Republic | Heat Infra | 100 | Direct | - | - | At cost | - | |
Plzeňská teplárenská Energetiské služby s.r.o. | Czech Republic | Heat Infra | 100 | Direct | 100 | Direct | At cost | At cost | |
TRAXELL s.r.o. | Czech Republic | Heat Infra | 100 | Direct | 100 | Direct | At cost | At cost | |
EPIF BidCo I s.r.o. | Czech Republic | Other operations | - | - | 100 | Direct | - | At cost | |
Czech Gas Holding Investment B.V.* | Netherlands | Other operations | 100 | Direct | 100 | Direct | Consolidated | Consolidated | |
NAFTA a.s. | Slovakia | Gas storage | 40.45 | Direct | 40.45 | Direct | Consolidated | Consolidated | |
NAFTA Well | Slovakia | Gas storage | 100 | Direct | - | - | Consolidated | - | |
Karotáž a cementace, s.r.o. | Czech Republic | Gas storage | 100 | Direct | 100 | Direct | At cost | At cost | |
POZAGAS a.s. | Slovakia | Gas storage | 65 | Direct | 65 | Direct | Consolidated | Consolidated | |
NAFTA Services, s.r.o. (4) | Czech Republic | Gas storage | - | - | 100 | Direct | - | Consolidated | |
EP Lower Saxony GmbH | Germany | Gas storage | 10 | Direct | 10 | Direct | At cost | At cost | |
EP Ukraine B.V. | Netherlands | Gas storage | 10 | Direct | 10 | Direct | Consolidated | Consolidated | |
Slovakian Horizon Energy, s.r.o. | Slovakia | Gas storage | 100 | Direct | 100 | Direct | Equity | Equity | |
NAFTA E&P Holding Company | Slovakia | Gas storage | 100 | Direct | 100 | Direct | Consolidated | Consolidated | |
EP Hungary s.r.o. | Czech Republic | Gas storage | 10 | Direct | 10 | Direct | At cost | At cost | |
HHE Group Ventures | Hungary | Gas storage | 50 | Direct | 50 | Direct | At cost | At cost | |
Pusztaszer Koncessziós Kft. | Hungary | Gas storage | 100 | Direct | 100 | Direct | At cost | At cost | |
Darany Energy Kft. | Hungary | Gas storage | 100 | Direct | 100 | Direct | At cost | At cost | |
HHE DrávaP Koncessziós Kft. | Hungary | Gas storage | 100 | Direct | 100 | Direct | At cost | At cost | |
NAFTA Production s.r.o. | Slovakia | Gas storage | 100 | Direct | 100 | Direct | Consolidated | Consolidated | |
NAFTA International B.V. | Netherlands | Gas storage | 100 | Direct | 100 | Direct | Consolidated | Consolidated | |
NAFTA Germany GmbH | Germany | Gas storage | 100 | Direct | 100 | Direct | Consolidated | Consolidated | |
NAFTA Speicher Management | Germany | Gas storage | 100 | Direct | 100 | Direct | Consolidated | Consolidated | |
NAFTA Speicher GmbH&Co. | Germany | Gas storage | 100 | Direct | 100 | Direct | Consolidated | Consolidated | |
NAFTA Speicher Inzenham GmbH | Germany | Gas storage | 100 | Direct | 100 | Direct | Consolidated | Consolidated | |
NAFTA RV | Ukraine | Gas storage | 100 | Direct | 100 | Direct | Consolidated | Consolidated | |
CNG Holdings Netherlands B.V. | Netherlands | Gas storage | 100 | Direct | 100 | Direct | At cost | At cost | |
CNG LLC | Ukraine | Gas storage | 100 | Direct | 100 | Direct | At cost | At cost | |
Slovak Gas Holding B.V. | Netherlands | Other operations | 100 | Direct | 100 | Direct | Consolidated | Consolidated | |
SPP Infrastructure, a.s. | Slovakia | Other operations | 49 | Direct | 49 | Direct | Consolidated | Consolidated | |
eustream, a.s. | Slovakia | Gas transmission | 100 | Direct | 100 | Direct | Consolidated | Consolidated | |
Central European Gas HUB AG | Austria | Gas transmission | 15 | Direct | 15 | Direct | At cost | At cost | |
eastring B.V. | Netherlands | Gas transmission | - | - | 100 | Direct | - | At cost | |
Plynárenská metrológia, s.r.o. | Slovakia | Other operations | 100 | Direct | 100 | Direct | At cost | At cost | |
SPP - distribúcia, a.s. | Slovakia | Gas and power distribution | 100 | Direct | 100 | Direct | Consolidated | Consolidated | |
SPP - distribúcia Servis, s.r.o. | Slovakia | Gas and power distribution | 100 | Direct | 100 | Direct | At cost | At cost | |
Annual Financial Report for the year 2025 – Section V.
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2025
96
31 December 2025 | 31 December 2024 | 2025 | 2024 | ||||||
Country of incorporation | Segment | Ownership % | Ownership interest | Ownership % | Ownership interest | Measurement | Measurement | ||
NAFTA a.s. | Slovakia | Gas storage | 56.15 | Direct | 56.15 | Direct | Consolidated | Consolidated | |
NAFTA Well | Slovakia | Gas storage | 100 | Direct | - | - | Consolidated | - | |
Karotáž a cementace, s.r.o. | Czech Republic | Gas storage | 100 | Direct | 100 | Direct | At cost | At cost | |
POZAGAS a.s. | Slovakia | Gas storage | 65 | Direct | 65 | Direct | Consolidated | Consolidated | |
NAFTA Services, s.r.o. (5) | Czech Republic | Gas storage | - | - | 100 | Direct | - | Consolidated | |
EP Lower Saxony GmbH | Germany | Gas storage | 10 | Direct | - | - | At cost | - | |
EP Ukraine B.V. | Netherlands | Gas storage | 10 | Direct | 10 | Direct | Consolidated | Consolidated | |
Slovakian Horizon Energy, s.r.o. | Slovakia | Gas storage | 100 | Direct | 100 | Direct | Equity | Equity | |
NAFTA E&P Holding Company | Slovakia | Gas storage | 100 | Direct | - | - | Consolidated | - | |
EP Hungary s.r.o. | Czech Republic | Gas storage | 10 | Direct | 10 | Direct | At cost | At cost | |
HHE Group Ventures | Hungary | Gas storage | 50 | Direct | 50 | Direct | At cost | At cost | |
Pusztaszer Koncessziós Kft. | Hungary | Gas storage | 100 | Direct | 100 | Direct | At cost | At cost | |
Darany Energy Kft. | Hungary | Gas storage | 100 | Direct | 100 | Direct | At cost | At cost | |
HHE DrávaP Koncessziós Kft. | Hungary | Gas storage | 100 | Direct | 100 | Direct | At cost | At cost | |
NAFTA Production s.r.o. | Slovakia | Gas storage | 100 | Direct | - | - | Consolidated | - | |
NAFTA International B.V.* | Netherlands | Gas storage | 100 | Direct | 100 | Direct | Consolidated | Consolidated | |
NAFTA Germany GmbH | Germany | Gas storage | 100 | Direct | 100 | Direct | Consolidated | Consolidated | |
NAFTA Speicher Management | Germany | Gas storage | 100 | Direct | 100 | Direct | Consolidated | Consolidated | |
NAFTA Speicher GmbH&Co. | Germany | Gas storage | 100 | Direct | 100 | Direct | Consolidated | Consolidated | |
NAFTA Speicher Inzenham GmbH | Germany | Gas storage | 100 | Direct | 100 | Direct | Consolidated | Consolidated | |
NAFTA RV | Ukraine | Gas storage | 100 | Direct | 100 | Direct | Consolidated | Consolidated | |
CNG Holdings Netherlands B.V. | Netherlands | Gas storage | 100 | Direct | 100 | Direct | At cost | At cost | |
CNG LLC | Ukraine | Gas storage | 100 | Direct | 100 | Direct | At cost | At cost | |
GEOTERM KOŠICE, a.s. | Slovakia | Other operations | 95.82 | Direct | 95.82 | Direct | Consolidated | Consolidated | |
SPP Storage, s.r.o. | Czech Republic | Gas storage | 100 | Direct | 100 | Direct | Consolidated | Consolidated | |
POZAGAS a.s. | Slovakia | Gas storage | 35 | Direct | 35 | Direct | Consolidated | Consolidated | |
SLOVGEOTERM a.s. | Slovakia | Other operations | 50 | Direct | 50 | Direct | Equity | Equity | |
GEOTERM KOŠICE, a.s. | Slovakia | Other operations | 0.08 | Direct | 0.08 | Direct | Consolidated | Consolidated | |
GALANTATERM | Slovakia | Other operations | 0.5 | Direct | 0.5 | Direct | At cost | At cost | |
GALANTATERM | Slovakia | Other operations | 17.5 | Direct | 17.5 | Direct | At cost | At cost | |
SPP Infrastructure Financing B.V. | Netherlands | Other operations | 100 | Direct | 100 | Direct | Consolidated | Consolidated | |
* Holding entity
(1)
On 1 January 2025, Gazel Energy, a.s. merged with Dobrá Energie s.r.o. (successor company)
(2)
On 15 October 2025, SSE CZ, s.r.o. v likvidaci was deleted from Commercial Register
(3)
On 5 November 2025, Kinet Inštal s.r.o. was deleted from Commercial Register
(4)
On 9 December 2024, Nafta Services, s.r.o. was deleted from Commercial Register
(5)
On 9 December 2024, SPV100, s.r.o. was renamed to SSE-TelcoHub, s.r.o.
The structure above is listed by ownership of companies at the different levels within the Group
VI. Independent Auditor´s Report to the Statutory Financial
Statements
EP Infrastructure, a.s. FINANCIAL STATEMENTS IN ACCORDANCE WITH IFRS AND INDEPENDENT AUDITOR’S REPORT AS OF 31 DECEMBER 2025 |
Deloitte Audit s.r.o. Churchill I Italská 2581/67 120 00 Prague 2 – Vinohrady Czech Republic Tel: +420 246 042 500 DeloitteCZ@deloitteCE.com www.deloitte.cz Registered by the Municipal Court in Prague, Section C, File 24349 ID. No.:49620592 Tax ID. No.: CZ49620592 | |
INDEPENDENT AUDITOR’S To EP Infrastructure, |
Having its registered office at: Pařížská 130/26, Josefov, 110 00 Prague 1
REPORT ON THE AUDIT OF THE FINANCIAL STATEMENTS
Opinion
We have audited the accompanying financial statements of EP Infrastructure , a.s. (hereinafter also the “Company”)
prepared on the basis of International Financial Reporting Standards (IFRS® Accounting Standards) as adopted by
the European Union, which comprise the statement of financial position as of 31 December 2025, statement
of comprehensive income, statement of changes in equity and statement of cash flows for the year then ended, and
notes to the financial statements, including material accounting policy information.
In our opinion, the accompanying financial statements give a true and fair view of the financial position
of EP Infrastructure, a.s. as of 31 December 2025, and of its financial performance and its cash flows for the year then
ended in accordance with IFRS Accounting Standards as adopted by the European Union.
Basis for Opinion
We conducted our audit in accordance with the Act on Auditors, Regulation (EU) No. 537/2014 of the European
Parliament and the Council, and Auditing Standards of the Chamber of Auditors of the Czech Republic, which are
International Standards on Auditing (ISAs), as amended by the related application guidelines. Our responsibilities
under this law and regulation are further described in the Auditor’s Responsibilities for the Audit of the Financial
Statements section of our report. We are independent of the Company in accordance with the Act on Auditors and
the Code of Ethics adopted by the Chamber of Auditors of the Czech Republic, as applicable to audits of financial
statements of public interest entities. We have also fulfilled our other ethical responsibilities in accordance with
these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide
a basis for our opinion.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit
of the financial statements of the current period. These matters were addressed in the context of our audit
of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion
on these matters.
EP Infrastructure, a.s. is a holding company that holds equity investments in controlled entities and associates.
As of the balance sheet date, these investments in entities are valued at cost and tested for impairment.
The valuation depends on assumptions and estimates of future developments, including the impact
of the sustainability concept, financial performance of the investments, future of the energy sector in Europe –
including the development of the military conflict of Russian Federation in Ukraine and related sanctions –
and the use of discounts. These assumptions and estimates are associated with a significant degree of uncertainty
and are described in Notes to the financial statements in Note 2d and 6.
In the aforementioned area, our audit procedures included assessment of the valuation method and testing
of the measurement of carrying amounts of financial investments through assets impairment models. Our procedures
also included inquiries of the management concerning year-to-year changes in the equity investments, assessment
of the impact of changes and expected changes in the sustainability concept, potential impact of the military Conflict
between Russian Federation in Ukraine and reading management meeting minutes. We evaluated
the appropriateness of management’s identification of the Company’s CGUs. We obtained an understanding
of the budget preparation and impairment assessment process, including indicators of impairment. We used the work
of an internal specialist for the assessment of asset impairment testing models made by the Company’s
management, their assumptions and the reliability of these assumptions.
Other Information in the Annual Financial Report
In compliance with Section 2(b) of the Act on Auditors, the other information comprises the information included in
the Annual Financial Report other than the financial statements, consolidated financial statements and auditor’s
reports thereon. The Board of Directors is responsible for the other information.
Our opinion on the financial statements does not cover the other information. In connection with our audit
of the financial statements, our responsibility is to read the other information and, in doing so, consider whether
the other information with the exception of the sustainability report
is materially inconsistent with the financial
statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. In addition, we
assess whether the other information with the exception of the sustainability report
has been prepared, in all material
respects, in accordance with applicable law or regulation, in particular, whether the other information complies with
law or regulation in terms of formal requirements and procedure for preparing the other information in the context
of materiality, i.e. whether any non-compliance with these requirements could influence judgments made on
the basis of the other information.
Based on the procedures performed, to the extent we are able to assess it, we report that:
●
The other information describing the facts that are also presented in the financial statements is, in all material
respects, consistent with the financial statements; and
●
The other information with the exception of the sustainability report
is prepared in compliance with applicable law
or regulation.
In addition, our responsibility is to report, based on the knowledge and understanding of the Company obtained in
the audit, on whether the other information contains any material misstatement of fact. Based on the procedures we
have performed on the other information obtained, we have not identified any material misstatement of fact.
Responsibilities of the Company’s Board of Directors and Supervisory Board for the Financial Statements
The Board of Directors is responsible for the preparation and fair presentation of the financial statements in
accordance with IFRS Accounting Standards as adopted by the European Union and for such internal control as
the Board of Directors determines is necessary to enable the preparation of financial statements that are free from
material misstatement, whether due to fraud or error.
In preparing the financial statements, the Board of Directors is responsible for assessing the Company’s ability
to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going
concern basis of accounting unless the Board of Directors either intends to liquidate the Company or to cease
operations, or has no realistic alternative but to do so.
The Supervisory Board is responsible for overseeing the Company’s financial reporting process.
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from
material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with
ISAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are
considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic
decisions of users taken on the basis of these financial statements.
As part of an audit in accordance with the above law or regulation, we exercise professional judgment and maintain
professional scepticism throughout the audit. We also:
●
Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error,
design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and
appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from
fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control.
●
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness
of the Company’s internal control.
●
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and
related disclosures made by the Board of Directors.
●
Conclude on the appropriateness of the Board of Directors’ use of the going concern basis of accounting and,
based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that
may cast significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material
uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in
the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based
on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may
cause the Company to cease to continue as a going concern.
●
Evaluate the overall presentation, structure and content of the financial statements, including the disclosures,
and whether the financial statements represent the underlying transactions and events in a manner that achieves
fair presentation.
We communicate with the Board of Directors, the Supervisory Board and the Audit Committee regarding, among
other matters, the planned scope and timing of the audit and significant audit findings, including any significant
deficiencies in internal control that we identify during our audit.
We also provide the Audit Committee with a statement that we have complied with relevant ethical requirements
regarding independence, and to communicate with them all relationships and other matters that may reasonably be
thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with the Board of Directors, the Supervisory Board and the Audit Committee, we
determine those matters that were of most significance in the audit of the financial statements of the current period
and are therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation
precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter
should not be communicated in our report because the adverse consequences of doing so would reasonably
be expected to outweigh the public interest benefits of such communication.
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
Information required by Regulation (EU) No 537/2014 of the European Parliament and of the Council
In compliance with Article 10 (2) of Regulation (EU) No. 537/2014 of the European Parliament and the Council, we
provide the following information in our independent auditor’s report, which is required in addition to
the requirements of International Standards on Auditing:
Appointment of the Auditor and the Period of Engagement
We were appointed as the auditors of the Company by the General Meeting of Shareholders on 5 March 2020 and our
uninterrupted engagement has lasted for 6 years.
Consistence with the Additional Report to the Audit Committee
We confirm that our audit opinion on the financial statements expressed herein is consistent with the additional
report to the Audit Committee of the Company, which we issued on 19 March 2026 in accordance with Article 11
of Regulation (EU) No. 537/2014 of the European Parliament and the Council.
Provision of Non-audit Services
We declare that no prohibited non-audit services referred to in Article 5 of Regulation (EU) No. 537/2014
of the European Parliament and the Council were provided. In addition, there are no other non-audit services which
were provided by us to the Company, and which have not been disclosed in the financial statements.
In Prague on
19 March 2026
Audit firm: | Statutory auditor: |
Deloitte Audit s.r.o. registration no. 079 | David Batal registration no. 2147 |
VII. Statutory Financial Statements and Notes to the Statutory Financial
Statements
SEPARATE FINANCIAL STATEMENTS PREPARED IN ACCORDANCE
WITH INTERNATIONAL FINANCIAL REPORTING STANDARDS AS ADOPTED
BY THE EUROPEAN UNION FOR THE YEAR ENDED 31 DECEMBER 2025
Name of the Company: EP Infrastructure, a.s.
Registered Office: Pařížská 130/26, Josefov, 110 00 Prague 1
Legal Status: Joint Stock Company
Corporate ID: 024 13 507
Components of the Separate Financial Statements Prepared in Accordance with
International Financial Reporting Standards as Adopted by the European Union:
Statement of Financial Position
Statement of Comprehensive Income
Statement of Changes in Equity
Statement of Cash Flows
Notes to the Financial Statements
These separate financial statements prepared in accordance with International
Financial Reporting Standards as adopted by the European Union were prepared
on 19 March 2026.
Statement of financial position | |||
As at 31 December 2025 | |||
In millions of EUR | |||
Note | 31.12.2025 | 31.12.2024 | |
Assets | |||
Equity investments | 6 | 6,925 | 6,831 |
Loans at amortised cost | 7 | - | 67 |
Total non-current assets | 6,925 | 6,898 | |
Trade receivables and other assets | 8 | 2 | 169 |
Loans at amortised cost | 7 | 9 | 154 |
Current tax receivable | 8 | 5 | - |
Cash and cash equivalents | 5 | 653 | 214 |
Total current assets | 669 | 537 | |
Total assets | 7,594 | 7,435 | |
Equity | |||
Share capital | 9 | 3,248 | 3,248 |
Share premium | 9 | 9 | 9 |
Other capital contributions | 9 | 771 | 771 |
Retained earnings | 674 | 1,116 | |
Valuation | 10 | 23 | 26 |
Total equity attributable to equity holders | 4,725 | 5,170 | |
Liabilities | |||
Loans and borrowings | 11 | 1,800 | 1,879 |
Deferred tax liability | 16 | 7 | 8 |
Total non-current | 1,807 | 1,887 | |
Trade payables and other liabilities | 12 | 102 | 1 |
Loans and borrowings | 11 | 960 | 377 |
Total current | 1,062 | 378 | |
Total liabilities | 2,869 | 2,265 | |
Total equity and liabilities | 7,594 | 7,435 |
Annual Financial Report for the year 2025 – Section VII.
Statutory financial statements and Notes to the Statutory financial statements of EP Infrastructure, a.s. as of and for the year ended 31
December 2025
2
Statement of comprehensive income
For the year ended 31 December 2025 | |||
In millions of EUR | Note | 2025 | 2024 |
Sales: Services | 18 | 1 | 1 |
Total sales | 1 | 1 | |
Cost of sales: Services | - | - | |
Total cost of sales | - | - | |
Subtotal | 1 | 1 | |
Personnel expenses | 13 | (4) | (3) |
Taxes and charges | - | - | |
Other operating | 18 | - | - |
Other operating expenses | 18 | (3) | (3) |
Profit (loss) from operations | (6) | (5) | |
Dividend income | 14 | 494 | 463 |
Interest income under | 14 | 13 | 25 |
Interest expense | 14 | (57) | (67) |
Foreign currency | 14 | (1) | 3 |
Profit /(loss) from | 14 | - | 8 |
Other finance expense Other finance income | 14 14 | (117) 113 | (8) - |
Net finance income | 445 | 424 | |
Profit before income tax | 439 | 419 | |
Income tax | 15 | (3) | (10) |
Profit from continuing operations | 436 | 409 | |
Profit for the year | 436 | 409 | |
Other comprehensive | |||
Items that are or may be reclassified | |||
Effective portion of changes net of tax | 15 | (3) | (3) |
Total other comprehensive income | (3) | (3) | |
Total comprehensive income for the year | 433 | 406 |
Annual Financial Report for the year 2025 – Section VII.
Statutory financial statements and Notes to the Statutory financial statements of EP Infrastructure, a.s. as of and for the year ended 31
December 2025
3
Statement of changes in equity
In millions of EUR | |||||||
Share capital | Share premium | Other capital contributions | Retained earnings | Valuation differences on cash flow hedges | Total equity | ||
Balance as at 1 January 2024 | 3,248 | 9 | 771 | 1,007 | 29 | 5,064 | |
Comprehensive income for the period | |||||||
Profit for the period | - | - | - | 409 | - | 409 | |
Other comprehensive income for the period | |||||||
Effective portion of changes in fair value of cash flow hedges, net of tax | - | - | - | - | (3) | (3) | |
Total comprehensive income for the period | 409 | (3) | 406 | ||||
Contributions by and distributions to owners | |||||||
Dividends declared | - | - | - | (300) | - | (300) | |
Balance as at 31 December 2024 | 3,248 | 9 | 771 | 1,116 | 26 | 5,170 | |
Comprehensive income for the period | |||||||
Profit for the period | - | - | - | 436 | 436 | ||
Other comprehensive income for the period | |||||||
Effective portion of changes in fair value of cash flow hedges, net of tax | - | - | - | - | (3) | (3) | |
Total comprehensive income for the period | 436 | (3) | 433 | ||||
Contributions by and distributions to owners | |||||||
Dividends declared | - | - | - | (878) | (878) | ||
Balance as at 31 December 2025 | 3,248 | 9 | 771 | 674 | 23 | 4,725 | |
Annual Financial Report for the year 2025 – Section VII.
Statutory financial statements and Notes to the Statutory financial statements of EP Infrastructure, a.s. as of and for the year ended 31
December 2025
4
Cash flow statement
For the year ended 31 December 2025 | ||||
In millions of EUR | ||||
Note | 2025 | 2024 | ||
OPERATING ACTIVITIES | ||||
Profit for the | 436 | 409 | ||
Adjustments for: | ||||
Income tax | 15 | 3 | 10 | |
Change in adjustments receivables | 14 | - | - | |
Interest income | 14 | 44 | 42 | |
Other finance (income)/expenses | 14 | 4 | 8 | |
Dividend income | 14 | (494) | (463) | |
(Profit)/loss on | 14 | - | (8) | |
Foreign exchange (gains)/losses, net | 14 | 1 | (3) | |
Other non-monetary transactions | 9, 14 | (6) | (2) | |
Operating profit before changes in working capital | (12) | (7) | ||
Change in trade receivables and other assets | (1) | - | ||
Change in trade payables and other liabilities | 1 | (1) | ||
Cash generated from (used in) operations | (12) | (8) | ||
Interest paid | 5 | (51) | (51) | |
Income taxes | (8) | (9) | ||
Cash flows | (71) | (68) | ||
INVESTING | ||||
Profit shares received and other capital contributions | 222 | 213 | ||
Interest received | 11 | 45 | ||
Loans to related | - | - | ||
Repayments from | 79 | 130 | ||
Cash flows from (used in) investing activities | 312 | 388 | ||
FINANCING | ||||
Proceeds from | 5 | - | 285 | |
Repayment of | 5 | (75) | - | |
Proceeds from | 5 | 597 | - | |
Debentures paid | 5 | - | (547) | |
Finance fees, | (2) | (6) | ||
Dividends paid | 5, 9 | (320) | (300) | |
Cash flows from (used | 200 | (568) | ||
Net increase (decrease) in cash and cash equivalents | 441 | (248) | |
Cash and cash equivalents at beginning of the year | 214 | 461 | |
Effect of exchange rate fluctuations on cash held | (2) | 1 | |
Cash and cash equivalents at end of the year | 653 | 214 |
Annual Financial Report for the year 2025 – Section VII.
Statutory financial statements and Notes to the Statutory financial statements of EP Infrastructure, a.s. as of and for the year ended 31
December 2025
5
Notes to financial statements
1.
Background
EP Infrastructure, a.s. (the “Company” or “EPIF”) was registered on 6 December 2013 by subscription
of share capital in form of a monetary contribution of CZK 2 million.
The Company’s main activity is the management of its own assets. The primary mission of the Company
is the strategic management and development of companies directly or indirectly controlled
by the Company, coordination of their activities, and management, acquisition and disposing
of the Company’s ownership interests and other assets.
The financial year is identical with the calendar year. The financial statements were prepared
for the period from 1 January 2025 to 31 December 2025 (“2025”). The comparable period (“2024”) is
the financial year from 1 January 2024 to 31 December 2024.
Registered office
Pařížská 130/26
Josefov
110 00 Prague 1
Czech Republic
The shareholders of the Company as at 31 December 2025 were:
Interest in share capital | Voting rights | |||||||
In millions | % | % | ||||||
EPIF Investments | 2,241 | 69% | 69% | |||||
CEI INVESTMENTS | 1,007 | 31% | 31% | |||||
Total | 3,248 | 100% | 100% | |||||
The shareholders of the Company as at 31 December 2024 were:
Interest in share capital | Voting rights | |||||||
In millions | % | % | ||||||
EPIF Investments | 2,241 | 69% | 69% | |||||
CEI INVESTMENTS | 1,007 | 31% | 31% | |||||
Total | 3,248 | 100% | 100% | |||||
The shareholders of Energetický a průmyslový holding, a.s., the 100% owner of EPIF Investments a.s. as
at 31 December 2025 and 31 December 2024 were:
Interest in share capital | Voting rights | |||
% | % | |||
EP Group, a.s. | 56% + 1 share | 56% + 1 share | ||
J&T ENERGY HOLDING, a.s | 44% - 1 share | |||
Total | 100% | 100% |
The consolidated financial statements of the widest group of entities for 2025 will be prepared by
EP Investment S.á r.l. with its registered office at 2 Place de Paris, 2314 Luxembourg.
Annual Financial Report for the year 2025 – Section VII.
Statutory financial statements and Notes to the Statutory financial statements of EP Infrastructure, a.s. as of and for the year ended 31
December 2025
6
The Company prepares its consolidated financial statements in accordance with International Financial
Reporting Standards (IFRS® Accounting Standards) adopted by the European Union (“EU”).
The Czech version of the consolidated financial statements along with the standalone financial
statements will form the annual
financial
report, which will be published in the Commercial Register.
Members of the Board of Directors and Supervisory Board as at 31 December 2025 were:
Members of the Board of Directors Members of the Supervisory Board
Daniel Křetínský
(
chairman
)
Jan Špringl
(
chairman
)
Stéphane Brimont
(
vice-chairman
)
Martin Gebauer
(
vice-chairman
)
Gary Wheatley Mazzotti
(
vice-chairman
)
Petr Sekanina
(
member
)
Marek Spurný
(
member
)
Jiří Feist
(
member
)
Pavel Horský
(
member
)
Jan Stříteský
(
member
)
Milan Jalový
(
member
)
Viktor Schuh (member)
William David George Price
(
member
)
On 8 December 2025, Ms. Rose Marie Villalobos Rodriquez ceased to be a member of the Supervisory
Board, and Mr. Viktor Schuh became a new member of the Supervisory Board on 9 December 2025.
2.
Basis of preparation
(a)
Statement of compliance
The financial statements have been prepared in accordance with IFRS Accounting Standards adopted
by the European Union (“IFRS”).
The financial statements were approved by the Board of Directors of the Company on 19 March 2026.
These financial statements are non-consolidated.
(b)
Valuation method
The financial statements have been prepared on a going-concern basis using the historical cost method,
except for the following material items in the statement of financial position, which are measured at
fair value:
●
derivative financial instruments.
The Company has been consistently applying the following accounting policies to all periods presented
in these financial statements.
(c)
Functional and presentation currency
The Company’s functional and presentation currency is the Euro (“EUR”).
(d)
Use of estimates and judgments
The preparation of financial statements in accordance with IFRS Accounting Standards requires
the use of certain critical accounting estimates that affect the reported amounts of assets, liabilities,
income and expenses. It also requires management to exercise judgement in the process of applying
the Company’s accounting policies. The resulting accounting estimates, by definition, will not always
be equal to the actual related values.
Estimates and assumptions are reviewed on an ongoing basis. Revisions to accounting estimates
are recognised in the period in which the estimate is revised (if the revision affects only that period),
or in the period of the revision and future periods (if the revision affects the current period as well as
future periods).
Annual Financial Report for the year 2025 – Section VII.
Statutory financial statements and Notes to the Statutory financial statements of EP Infrastructure, a.s. as of and for the year ended 31
December 2025
7
i.
Assumption and estimation uncertainties
Determination of fair values
A number of the Company’s accounting policies and disclosures require the measurement of fair values,
for both financial and non-financial assets and liabilities.
The Group, of which the Company is a component, has an established control framework with respect
to the measurement of fair values. This includes a valuation team that has general responsibility for
overseeing all significant fair value measurements, including Level 3 fair values.
The valuation team regularly reviews significant market unobservable inputs and valuation adjustments.
If third party information, such as broker quotes or pricing services, is used to measure fair values, then
the valuation team assesses the evidence obtained. The evidence
has to
meet the requirements
of IFRS, including the level in the fair value hierarchy in which such valuation should be classified.
When measuring the fair value of an asset or a liability, the Company uses market observable inputs to
the fullest extent possible. Fair values are categorised into different levels in a fair value hierarchy based
on the inputs used in the valuation techniques as follows:
Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities
Level 2: inputs other than quoted prices included in Level 1 that are observable for the asset or
liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices)
Level 3: inputs for the asset or liability that are not based on observable market data (unobservable
inputs).
If the inputs used to measure the fair value of an asset or a liability might be categorised in different
levels of the fair value hierarchy, then the fair value measurement as a whole is categorised in the same
level of the fair value hierarchy as the lowest level input that is significant in relation to the entire
measurement.
The Company recognises transfers between levels of the fair value hierarchy at the end
of the reporting period during which the change has occurred.
(e)
Segment reporting
The Company’s activities represent one segment, i.e. holding of ownership interests and related
activities. Most of the Company’s income represents financial income and is described in detail in note
14 to these financial statements. An insignificant part of the Company’s revenues is represented by
revenues from services provided in the Czech Republic to companies belonging to Energetický a
průmyslový holding, a.s. (the “EPH Group”).
(f)
Recently issued accounting standards
i.
Newly adopted IFRS Accounting Standards and amendments to standards and interpretations
effective for the period ended 31 December 2025 that have been applied in the preparation
of the Company’s financial statements
The following paragraphs provide a summary of the key requirements of IFRS Accounting Standards
effective for annual periods beginning on or after 1 January 2025 and that have therefore been applied
by the Company for the first time.
Newly adopted IFRS Accounting Standards, amendments to standards and interpretations that
do not have a material impact on the Company’s financial statements:
•
Amendments to IAS 21 – Lack of Exchangeability.
ii.
IFRS Accounting Standards not yet effective
As of the date of approval of these separate financial statements, the following significant amendments
to IFRS Accounting Standards and interpretations had been issued but were not yet effective for
the period ended 31 December 2025:
Annual Financial Report for the year 2025 – Section VII.
Statutory financial statements and Notes to the Statutory financial statements of EP Infrastructure, a.s. as of and for the year ended 31
December 2025
8
IFRS 18 – Presentation and Disclosures in Financial Statements (effective for annual periods
beginning on or after 1 January 2027)
IFRS 18 Presentation and Disclosures in Financial Statements applies to all financial statements
prepared and presented in accordance with IFRS Accounting Standards and will replace IAS 1
Presentation of Financial Statements. The new standard introduces three sets of new requirements to
improve companies’ reporting of financial performance and to provide investors with a better basis for
analysis and comparison:
(a) Categories for the classification of income and expenses in profit or loss
Entities are required to classify items of income and expenses recognised in profit or loss into one
of the following categories: operating, investing, financing, income tax and discontinued operations.
Modifications to the classification requirements are permitted for entities with specific business
activities (banks, investment entities and entities investing in real estate). The standard also requires
the disclosure of specified subtotals in profit or loss.
(b) Management-defined performance measures (“MPMs”)
MPMs are defined as subtotals of income and expenses that the Company uses in public communications
with users of financial statements. They communicate management’s view of a particular aspect
of financial performance and supplement totals or subtotals required by IFRS 18. Entities are required
to disclose information about their MPMs in a separate note to the financial statements, and the standard
specifies disclosure requirements for each measure.
(c) Aggregation and disaggregation of information
The standard introduces requirements focusing on the aggregation and disaggregation of information
and on whether information is presented in the primary financial statements or in the notes.
IFRS 18 also includes amendments to other IFRS Accounting Standards, including amendments to IAS
7 Statement of Cash Flows, which remove alternatives for the presentation of interest and dividends and
require the use of operating profit as the single starting point when applying the indirect method for
reporting cash flows from operating activities.
The Company is currently assessing the impact of the new standard on the financial statements and
related disclosures.
Newly issued IFRS Accounting Standards, amendments to standards and interpretations for
which the Company does not expect a material impact on the Company’s financial statements:
•
IFRS 19 – Subsidiaries without Public Accountability: Disclosures and Amendments to IFRS 19 –
Subsidiaries without Public Accountability: Disclosures (effective for annual periods beginning on
or after 1 January 2027 (not yet endorsed by the EU));
•
Amendments to IFRS 9 and IFRS 7 – Amendments to the Classification and Measurement
of Financial Instruments (effective for annual periods beginning on or after 1 January 2026);
•
Annual Improvements to IFRS Accounting Standards – Volume 11 (effective for annual periods
beginning on or after 1 January 2026);
•
Amendments to IFRS 9 and IFRS 7 – Contracts Referencing Nature-dependent Electricity (effective
for annual periods beginning on or after 1 January 2026);
•
Amendments to IAS 21 – Translation to a Hyperinflationary Presentation Currency (effective for
annual periods beginning on or after 1 January 2027 (not yet endorsed by the EU)).
Annual Financial Report for the year 2025 – Section VII.
Statutory financial statements and Notes to the Statutory financial statements of EP Infrastructure, a.s. as of and for the year ended 31
December 2025
9
The Company has not early adopted any amendments to IFRS Accounting Standards where adoption
was not mandatory at the reporting date. Where transition provisions in an adopted IFRS Accounting
Standard permit either prospective or retrospective application, the Company generally elects to apply
the new standard prospectively from the date of initial application.
(g)
Going concern assumption
These financial statements have been prepared on a going concern basis, which the Company regularly
evaluates in light of developments affecting its operating environment. In performing this assessment,
Company’s management considered the ongoing military conflict in Ukraine, the continued interruption
of gas transit through Ukraine to Slovakia, the European Union’s REPowerEU initiative aimed at
reducing dependency on Russian fossil fuels, as well as other relevant geopolitical, regulatory and
market developments affecting the European energy sector.
Management also assessed the Company’s liquidity position, expected operating cash flows, availability
of committed credit facilities and the Company’s recent refinancing activities, including the successful
issuance new debt instruments and repayments of certain borrowings completed after the reporting date.
These factors, together with predominantly regulated and contracted nature of a substantial part of the
business of the companies in the EPIF Group, support the Company’s ability to meet its obligations as
they fall due for at least 12 months from the date of approval of these financial statements, as required
by IAS1.
Management has also taken note of the military escalation involving Iran, which occurred after the
reporting date. Given its timing and the absence of direct operational or financial exposure for the
Company and the companies in the EPIF Group, Company’s management concluded that this
development does not affect conditions existing at the reporting date and therefore does not impact the
going concern assessment for 2026.
Based on the information available, management has concluded that these events and conditions do not
currently have a material impact on these financial statements or on the Company’s ability to continue
as a going concern. Nevertheless, further adverse developments in geopolitical, regulatory or market
conditions cannot be ruled out and could, in the future, have a material negative impact on the
Company’s business, financial position, results of operations, cash flows or overall outlook.
3.
Significant accounting policies
The Company has consistently applied the following accounting policies to all periods as presented in
these financial statements.
(a)
Cash and cash equivalents
Cash and cash equivalents comprise cash balances on hand and in banks, and short-term highly
liquid investments with original maturities of three months or less.
(b)
Equity investments
As required by IAS 27, the Company has applied measurement at cost for investments in
subsidiaries, associates, and jointly controlled entities. In accordance with IFRS 9, cost is increased by
a possible discount on provided interest-free loans. Equity investments are tested for impairment yearly
(see Note 3(d)).
(c)
Non-derivative financial assets
i.
Classification
On initial recognition, a financial asset is classified as measured at amortised cost, fair value through
other comprehensive income – debt instrument (FVOCI), fair value through other comprehensive
income – equity instrument or fair value through profit, or loss (FVTPL). The classification of financial
asset is based on the business model in which a financial asset is managed and its contractual cash flow
characteristics.
A financial asset shall be measured at amortised cost if both of the following conditions are met:
Annual Financial Report for the year 2025 – Section VII.
Statutory financial statements and Notes to the Statutory financial statements of EP Infrastructure, a.s. as of and for the year ended 31
December 2025
10
●
the financial asset is held within a business model whose objective is to hold financial assets in
order to collect contractual cash flows; and
●
the contractual terms of the financial asset give rise on specified dates to cash flows that are solely
payments of principal and interest on the principal amount outstanding (“SPPI test”).
Principal is the fair value of the financial asset at initial recognition. Interest consists of consideration
for the time value of money, for the credit risk associated with the principal amount outstanding
during a particular period of time and for other basic lending risks and costs, as well as a profit margin.
Loans and receivables which meet the SPPI test and business model test are normally classified as
financial asset at amortised cost.
A debt instruments shall be measured at fair value through other comprehensive income if both
of the following conditions are met:
●
the financial asset is held within a business model whose objective is achieved by both collection
contractual cash flows and selling financial assets; and
●
the contractual terms of the financial asset give rise on specified dates to cash flows that are solely
payments of principal and interest on the principal amount outstanding (“SPPI test”).
The Company may make an irrevocable election at initial recognition for particular investments
in equity instruments (except equity investments as described in Note 3 (b)), that would otherwise be
measured at fair value through profit or loss (as described below) and that are not held for trading, to
present subsequent changes in fair value in other comprehensive income.
All investments in equity instruments and contracts concerning those instruments must be measured at
fair value. However, in limited circumstances, cost may be an appropriate estimate of fair value. That
may be the case if there is not available any sufficient recent information to measure fair value, or if
there is a wide range of possible fair value measurements and cost represents the best estimate of fair
value within that range. The Company uses all information about the performance and operations
of the investee that becomes available after the date of initial recognition. As long as any such relevant
factors exist, they may indicate that cost might not be representative of fair value. In such cases,
the Company must use fair value. Cost is never the best estimate of fair value for investments in quoted
instruments.
A financial asset shall be measured at fair value through profit or loss unless it is measured at amortised
cost or at fair value through other comprehensive income. The key type of financial assets measured at
fair value through profit or loss by the Company are derivatives.
The Company may, at initial recognition, irrevocably designate a financial asset, which would be
measured at amortised cost or at fair value through other comprehensive income (“FVOCI”), as
measured at fair value through profit or loss. This applies if doing so eliminates or significantly
reduces a measurement or recognition inconsistency (sometimes referred to as an “accounting
mismatch”) that would otherwise arise from measuring assets or liabilities or recognising the gains
and losses on them on different bases.
ii.
Recognition
Financial assets are recognised on the date the Company becomes party to the contractual provision
of the instrument.
iii.
Measurement
Upon initial recognition, financial assets are measured at fair value plus, in the case of a financial
instrument not at fair value through profit or loss, transaction costs directly attributable to
the acquisition of the financial instrument. Attributable transaction costs relating to financial assets
measured at fair value through profit or loss are recognised in profit or loss as incurred. For
the methods used to estimate fair value, refer to Note 4 – Determination of fair value.
Financial assets at FVTPL are subsequently measured at fair value, with net gains and losses, including
any dividend income, recognised in profit or loss.
Debt instruments at fair value through other comprehensive income (FVOCI) are subsequently
Annual Financial Report for the year 2025 – Section VII.
Statutory financial statements and Notes to the Statutory financial statements of EP Infrastructure, a.s. as of and for the year ended 31
December 2025
11
measured at fair value. Interest income calculated using
the
effective interest rate method, foreign
exchange gains and losses and impairment are recognised in profit or loss. Other gains and losses
are recognised in other comprehensive income and reclassified to profit or loss upon derecognition
of the asset.
Equity instruments at fair value through other comprehensive income (FVOCI) are subsequently
measured at fair value. Dividends are recognised in profit or loss. Other gains and losses are
recognised in other comprehensive income and are never reclassified to profit or loss.
Financial assets at amortised cost are subsequently measured at amortised cost using effective interest
rate method. Interest income, foreign exchange gains and losses, impairment and any gain or loss on
derecognition are recognised in profit or loss.
iv.
De-recognition
A financial asset is derecognised when the contractual rights to the cash flows from the asset expire,
or when the rights to receive the contractual cash flows are transferred in a transaction in which
substantially all the risks and rewards of ownership of the financial asset are transferred. Any
interest in transferred financial assets that is created or retained by the Company is recognised as
a separate asset or liability.
v.
Offsetting of financial assets and liabilities
Financial assets and liabilities are offset, and the net amount is reported in the statement of financial
position, when the Company has a legally enforceable right to offset the recognised amounts, and
the transactions are intended to be settled on a net basis.
(d)
Impairment
i.
Non-financial assets
The carrying amounts of the Company’s assets, except for deferred tax assets, (refer to Note 4 (a) –
Income taxes) are reviewed at each reporting date to determine any objective evidence
of impairment. If any such indication exists, the asset’s recoverable amount is estimated. For
intangible assets that have an indefinite useful life or that are not yet available for use, the recoverable
amount is estimated at least once every year at the same time.
The recoverable amount of an asset or cash-generating unit (CGU) is the greater of its fair value less
costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted
to their present value using a pre-tax discount rate that reflects current market assessment of the time
value of money and the risks specific to the asset.
For the purpose of impairment testing, assets that cannot be tested individually are grouped together
into the smallest identifiable group of assets that generates cash inflows from continuing use that are
largely independent from the cash inflows of other assets or groups of assets (the “cash-generating
unit”, or “CGU”).
An impairment loss is recognised whenever the carrying amount of an asset or its cash generating
unit exceeds its recoverable amount. Impairment losses are recognised in profit or loss.
Impairment losses recognised in prior periods are assessed at each reporting date for any indications
that the loss has decreased or no longer exists. An impairment loss is reversed if there has been a change
in the estimates used to determine the recoverable amount. An impairment loss is reversed only to
the extent that the asset’s carrying amount does not exceed the carrying amount that would have been
determined, net of depreciation or amortisation, if no impairment loss had been recognised.
ii.
Financial assets (including trade and other receivables and contract assets)
The
Company
measures loss allowances using expected credit loss (“ECL”) model for financial assets
at amortised cost, debt instruments at FVOCI and contract assets. Loss allowances are measured on
either of the following bases:
●
12-month ECLs: ECLs that result from possible default events within the 12 months after the reporting
Annual Financial Report for the year 2025 – Section VII.
Statutory financial statements and Notes to the Statutory financial statements of EP Infrastructure, a.s. as of and for the year ended 31
December 2025
12
date;
●
lifetime ECLs: ECLs that result from all possible default events over the expected life of a financial
instrument.
The Company measures loss allowances at an amount equal to lifetime ECLs except for those
financial assets for which credit risk has not increased significantly since initial recognition. For trade
receivables and contract assets, the Company has elected to measure loss allowances at an amount
equal to lifetime ECLs in simplified mode.
The ECL model is based on the principle of expected credit losses. For the purposes of designing
the ECL model, the portfolio of financial assets is split into segments. Financial assets within each
segment are allocated to three stages (Stage I – III) or to a group of financial assets that are impaired
at the date of the first recognition of purchased or originated credit-impaired financial assets (“POCI”).
At the date of the initial recognition, the financial asset is included in Stage I or POCI. Subsequent
to initial recognition, a financial asset is allocated to Stage II if there was a significant increase in credit
risk since initial recognition or to Stage III if the financial asset has been credit-impaired.
The Company assumes that the credit risk on a financial asset has increased significantly if:
(a) a financial asset or its significant portion is overdue for more than 30 days (if a financial asset
or its significant portion is overdue for more than 30 days but less than 90 days, and the delay
does not indicate an increase in counterparty credit risk, the individual approach shall be used,
and the financial asset shall be classified in Stage I); or
(b) the Company negotiates debt restructuring with a debtor in financial difficulties (at the request
of the debtor or the Company); or
(c)
the probability of default (PD) of the debtor increases by 20%; or
(d)
other material events have occurred which require individual assessment (e.g., development
of external ratings of sovereign credit risk).
At each reporting date, the Company assesses whether financial assets carried at amortised cost
and investments to equity instrument are credit impaired. A financial asset is credit impaired when one
or more events that have a detrimental impact on the estimated future cash flows of the financial asset
have occurred. The Company considers financial asset to be credit-impaired if:
(a)
a financial asset or its significant part is overdue for more than 90 days; or
(b)
legal action has been taken in relation to the debtor, whose outcome or the actual process may
have an impact on the debtor’s ability to repay the debt; or
(c)
insolvency proceedings or similar proceedings under foreign legislation have been initiated in
respect of the debtor, which may lead to a declaration of bankruptcy and the application for
the opening of such proceedings has not been refused or rejected or the proceedings have not
been discontinued within 30 days of initiation ((b) and (c) are considered as “Default event”);
or
(d)
the probability of default of the borrower increases by 100% compared to the previous rating
(which is not a relevant condition in the ECL model for intra-group loans and receivables); or
(e)
other material events have occurred which require individual assessment (e.g. development
of external ratings of sovereign credit risk).
For the purposes of ECL calculation, the Company uses components needed for the calculation,
namely probability of default (“PD”), loss given default (“LGD”) and exposure at default (“EAD”).
Forward-looking information means any future projected macroeconomic factor which has a significant
impact on the development of credit losses. ECLs are present values of probability-weighted estimate
of credit losses. The Company considers mainly expected gross domestic product growth, reference
interest rates, stock exchange indices or unemployment rates.
Presentation of loss allowances
Annual Financial Report for the year 2025 – Section VII.
Statutory financial statements and Notes to the Statutory financial statements of EP Infrastructure, a.s. as of and for the year ended 31
December 2025
13
Loss allowances for financial assets measured at amortised cost are deducted from the gross
carrying amount of the assets and the year-on-year change is recognised in profit or loss. For debt
securities at FVOCI, the loss allowance is recognised in OCI.
(e)
Non-derivative financial liabilities
The Company has the following non-derivative financial liabilities:
●
loans and borrowings, debt security issues, bank overdrafts, and trade and other payables.
Such financial liabilities are initially recognised at the settlement date at fair value plus any
directly attributable transaction costs except for financial liabilities at fair value through profit or loss.
Attributable transaction costs relating to financial assets measured at fair value through profit or loss
are recognised in profit or loss as incurred. Financial liabilities are subsequently measured at
amortised cost using the effective interest rate, except for financial liabilities at fair value through
profit or loss. For the methods used to estimate fair value, refer to Note 4 –
Determination of fair
value
.
The Company derecognises a financial liability when its contractual obligations are discharged,
cancelled or expire.
(f)
Derivative financial assets and liabilities
The Company holds derivative financial instruments. Throughout its history, the Company has also held
derivatives to hedge against interest rate and currency risk – see details in Note 19g Hedge Accounting.
Derivatives are recognised initially at fair value, with attributable transaction costs recognised in profit
or loss as incurred. Subsequent to initial recognition, derivatives are measured at fair value, and changes
are accounted for as described below.
Trading derivatives
When a derivative financial instrument is not designated in a qualifying hedge relationship, all changes
in its fair value are recognised immediately in profit or loss.
Separable embedded derivatives
Financial and non-financial contracts (where they have not already been measured at fair value through
profit or loss) are assessed to determine whether they contain any embedded derivatives.
Embedded derivatives are separated from the host contract and accounted for separately if the economic
characteristics and risks of the host contract and the embedded derivative are not closely related. A separate
instrument with the same terms as the embedded derivative would meet the definition of a derivative,
and the combined instrument is not measured at fair value through profit or loss.
Changes in the fair value of separable embedded derivatives are recognised immediately in profit or loss.
Cash flow hedges and fair value hedges
The majority of financial derivatives are held for hedging purposes, but
some
do not meet the criteria
for hedge accounting as stated by IFRS 9. These derivatives are designated for trading, and related
profit and loss from changes in fair value is recognised in profit and loss.
Hedging instruments consisting of derivatives associated with currency or interest rate risks are classified
either as cash-flow hedges or fair value hedges.
From the inception of the hedge, the Company maintains formal documentation of the hedging
relationship and the Company’s risk management objective and strategy for undertaking the hedge.
The Company also periodically assesses the hedging instrument’s effectiveness in offsetting exposure to
changes in the hedged item’s fair value or cash flows attributable to the hedged risk.
In the case of a cash flow hedge, the portion of the gain or loss on the hedging instrument that is determined
to be an effective hedge is recognised in other comprehensive income and the ineffective portion
of the gain or loss on the hedging instrument is recognised in profit or loss. If the hedging instrument
no longer meets the criteria for hedge accounting, expires or is sold, terminated or exercised, then
Annual Financial Report for the year 2025 – Section VII.
Statutory financial statements and Notes to the Statutory financial statements of EP Infrastructure, a.s. as of and for the year ended 31
December 2025
14
the hedge accounting is discontinued prospectively. If the intended transaction is no longer expected
to occur, then the balance in equity is reclassified to profit or loss. In case the future intended transaction
is still expected to occur then the balance remains in equity and is transferred to profit or loss when
the hedged transaction affects profit or loss.
In the case of a fair value hedge, the hedged item is remeasured for changes in fair value attributable to
the hedged risk during the period of the hedging relationship. Any resulting adjustment to the carrying
amount of the hedged item related to the hedged risk is recognised in profit or loss, except for
the financial asset – equity instrument at FVOCI, for which the gain or loss is recognised in other
comprehensive income.
In the case of a fair value hedge, the gain or loss from re-measuring the hedging instrument at fair value
is recognised in profit or loss.
(g)
Provisions
A provision is recognised in the statement of financial position when the Company has a present legal
or constructive obligation as a result of a past event, when (i) it is probable that an outflow
of economic benefits will be required to settle the obligation and when (ii) a reliable estimate
of the amount can be made.
Provisions are recognised at the expected settlement amount. Long-term obligations are reported
as liabilities at the present value of their expected settlement amounts, if the effect of discount is
material, using as a discount rate the pre-tax rate that reflects current market assessments of the time
value of money and the risks specific to the liability. The periodic unwinding of the discount is
recognised in profit or loss in finance costs.
The effects of changes in interest rates, inflation rates and other factors are recognised in profit or loss
in operating income or expenses. Changes in estimates of provisions can arise in particular from
deviations from originally estimated costs, from changes in the settlement date or in the scope
of the relevant obligation. Changes in estimates are generally recognised in profit or loss at the date
of the change in estimate (see below).
(h)
Sales
Sales of services
The Company applies IFRS 15 to recognise sales from contracts with customers.
Sales of services are recognised in profit or loss in proportion to the stage of completion
of the transaction at the reporting date. The stage of completion is assessed by reference to surveys
of work performed. No sales are recognised if there are significant uncertainties regarding
the recovery of the consideration due and the associated costs.
(i)
Finance income and costs
i.
Finance income
Finance income comprises interest income on funds invested, dividend income, changes in the fair value
of financial assets at fair value through profit or loss, foreign currency gains, gains on sale
of investments in securities, gains recognised on financial assets and gains on hedging instruments
that are recognised in profit or loss. Interest income is recognised in profit or loss as it accrues,
using the effective interest method.
ii.
Finance costs
Finance costs comprise interest expense on borrowings, unwinding of the discount on provisions,
foreign currency losses, changes in the fair value of financial assets at fair value through profit or
loss, fees and commissions expense for payment transactions and guarantees, cost of operating the
cash pool, impairment losses recognised on financial assets, and losses on hedging instruments that are
recognised in profit or loss.
Annual Financial Report for the year 2025 – Section VII.
Statutory financial statements and Notes to the Statutory financial statements of EP Infrastructure, a.s. as of and for the year ended 31
December 2025
15
(j)
Dividends
Dividends are recognised in the statement of comprehensive income as of the date when the Company’s
right to receive the relevant income was established. Received shares on profit are recognised in current
profit or loss, i.e. in the period when the payment of the profit share was declared.
4.
Determination of fair values
A number of the Company’s accounting policies and disclosures require the determination of fair value,
for both financial and non-financial assets and liabilities. Fair values have been determined for
measurement and/or disclosure purposes based on the following methods. When applicable, further
information about the assumptions made in determining fair values is disclosed in the notes specific to
that asset or liability.
(a)
Income taxes
Income taxes comprise current and deferred tax. Income taxes are recognised in profit or loss, except
to the extent that they relate to items recognised directly in equity or in other comprehensive income.
Current tax consists of estimated income tax (tax payable or receivable) on the taxable income or loss
for the reporting period, using tax rates enacted at the reporting date, and any adjustment to tax
payable in respect of previous years.
Deferred tax is measured using the balance sheet method, providing for temporary differences between
the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for
taxation purposes. No deferred tax is recognised on the following temporary differences:
●
temporary differences arising from the initial recognition of assets or liabilities that affects neither
accounting nor taxable profit or loss, and
●
temporary differences relating to investments in subsidiaries to the extent that it is probable that
they will not be reversed in the foreseeable future.
The amount of deferred tax is based on the expected manner of realisation or settlement
of the temporary differences, using tax rates enacted or substantively enacted at the reporting date.
Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current
tax liabilities and assets, and they relate to income taxes levied by the same tax authority on the same
taxable entity, or on different tax entities, but there is an intention to settle current tax liabilities and
assets on a net basis, or the tax assets and liabilities will be realised simultaneously.
A deferred tax asset is recognised only to the extent that it is probable that future taxable profits will
be available against which the unused tax losses and deductible temporary differences can be
utilised. Deferred tax assets are reduced to the extent that it is no longer probable that the unused tax
losses or temporary differences will be realised.
(b)
Non-derivative financial assets
The fair value of financial assets at fair value through profit or loss, debt and equity instruments at
fair value through other comprehensive income and financial assets at amortised cost is based on their
quoted market price at the reporting date without any deduction for transaction costs. If a quoted
market price is not available, the fair value of the instrument is estimated by the management
of the Company, using pricing models or discounted cash flows techniques.
Where discounted cash flow techniques are used, estimated future cash flows are based on the best
estimates of the management of the Company and the discount rate is a market-related rate at
the reporting date for an instrument with similar terms and conditions. Where pricing models are
used, inputs are based on market-related measures at the reporting date.
The fair value of trade and other receivables is estimated as the present value of future cash flows,
discounted at the market rate of interest at the reporting date.
Annual Financial Report for the year 2025 – Section VII.
Statutory financial statements and Notes to the Statutory financial statements of EP Infrastructure, a.s. as of and for the year ended 31
December 2025
16
The fair value of trade and other receivables and of financial assets held at amortised cost is determined
for disclosure purposes only.
(c)
Non-derivative financial liabilities
Fair value, which is determined for disclosure purposes, is calculated based on the present value
of future principal and interest cash flows, discounted at the market rate of interest at the reporting date.
(d)
Derivatives
The fair value of interest rate swaps is based on internal measurements arising from market prices.
Those quotes are tested for reasonableness by discounting estimated future cash flows based on
the terms and maturity of each contract and using market interest rates for a similar instrument at the
measurement date.
The fair value of other derivatives (currency) is estimated by discounting the difference between
the forward values and the current values till maturity of the contract using a risk-free interest rate
(based on zero-coupon rates).
Fair values reflect the credit risk of the instrument and include adjustments to take account of the credit
risk of the Company and the credit risk of the counterparty when appropriate.
Annual Financial Report for the year 2025 – Section VII.
Statutory financial statements and Notes to the Statutory financial statements of EP Infrastructure, a.s. as of and for the year ended 31
December 2025
17
5.
Cash and cash equivalents
In millions | 31 December | 31 December | |
Current accounts with banks Promissory notes | 653 - | 164 50 | |
Total cash and cash equivalents |
Reconciliation of movement of liabilities and cash flows arising from financing activities:
Loans from credit institution s | Loans from other than credit institutions | Issued debentur es | Retained earnings | Total liabilities and retained earnings | ||
Balance as at 1 January 2025 | 290 | 356 | 1,610 | 1,116 | 3,372 | |
Changes from financing cash flows | ||||||
Received loans and borrowings and issued debentures | - | 5 | 597 | - | 602 | |
Repaid borrowings and debentures | (75) | - | - | - | (75) | |
Interest paid | (17) | (4) | (30) | - | (51) | |
Dividends paid | - | - | - | (320) | (320) | |
Total change from financing cash flows | (92) | 1 | 567 | (320) | ||
Other liability changes | ||||||
Transaction costs related to loans and borrowings (net) | - | - | (3) | - | (3) | |
Interest expense | 15 | 9 | 33 | - | 57 | |
Offset against a receivable | - | (26) | - | - | (26) | |
Dividends declared | - | - | - | (558) | (558) | |
Total liability-related | 15 | (17) | 30 | (558) | (530) | |
Profit for the year | - | - | - | 436 | 436 | |
Balance at 31 December 2025 | 213 | 340 | 2,207 | 674 | 3,434 | |
A newly issued bond with a nominal value of EUR 600 million was issued at a discount (99.580%) due
to market-based pricing of the 4.125% coupon, resulting in proceeds of EUR 597 million.
Loans from credit institutions | Loans from other than credit institutions | Issued debentures | Retained earnings | Total liabilities and retained earnings | |
Balance as at 1 January 2024 | - | 370 | 2,161 | 1,007 | 3,539 |
Changes from financing cash flows | |||||
Received loans and borrowings and issued debentures | 285 | 59 | - | - | 344 |
Repayment of borrowings and purchase of debentures | - | - | (547) | - | (547) |
Interest paid | (9) | (2) | (40) | - | (51) |
Dividends paid | - | - | - | (300) | (300) |
Total change from financing cash flows | 276 | 57 | (587) | (300) | (554) |
Other liability changes | |||||
Transaction costs related to loans and borrowings (net) | (2) | - | 1 | - | (1) |
Interest expense | 16 | 15 | 35 | - | 67 |
Offset against a dividend receivable | - | (250) | - | - | (250) |
Acceptance of cash pool liability | - | 165 | - | - | 165 |
Total liability-related | 14 | (70) | 36 | - | (20) |
Profit for the year | - | - | - | 409 | 409 |
Balance at 31 December 2024 | 290 | 356 | 1,610 | 1,116 | 3,372 |
Annual Financial Report for the year 2025 – Section VII.
Statutory financial statements and Notes to the Statutory financial statements of EP Infrastructure, a.s. as of and for the year ended 31
December 2025
18
6.
Equity investments
Equity investment | ||||
Company name | Total profit for the period 01/1/2025-31/12/2025 (in millions of EUR) | Equity at 31/12/2025 (in millions of EUR) | Net value of equity investment at 31/12/2025 (in millions of EUR) | Net value of equity investment at 31/12/2024 (in millions of EUR) |
EP Energy, a.s. („EPE“)* | 98 | 890 | 1,508 | 1,414 |
Czech Gas Holding Investment B.V.* | 54 | 156 | 387 | 387 |
Slovak Gas Holding B.V.* | 154 | 1,617 | 4,963 | 4,963 |
Plzeňská teplárenská, a.s.* | 67 | 67 | ||
Total equity investments | 6,925 | 6,831 |
* Data from unaudited financial statements as at 31 December 2025.
All equity investments are fully owned by the Company, with the exception of Plzeňská teplárenská, a.s.
(35% with managerial control).
In accordance with the accounting policy described in 3(b) Equity investments, the value of the equity
investments was tested for impairment. The Company monitors the financial performance of its
subsidiaries on a regular basis and evaluates scenarios for the performance of key subsidiaries. For
the purpose of preparing the financial statements, the Company has evaluated scenarios of possible future
developments based primarily on the utilisation of the respective gas transmission networks, on
the development of the regulatory environment and gas and electricity consumption in Slovakia, on
the overall demand for the provision of transportation capacity and gas storage services in the region and
on the development of heat and electricity consumption and prices, which may have an impact on
the value of the equity investments. The Company has used various scenarios of future developments.
However, future developments cannot be reliably predicted and therefore the need for adjustments to
the values of the equity investments in future periods cannot be excluded. As part of the impairment
testing performed, the Company did not identify any impairment of its equity investments as
of 31 December 2025 that would require a valuation adjustment in the financial statements under
applicable accounting regulations.
As at 31 December 2025, the registered offices of the companies were as follows:
EP Energy, a.s. | Pařížská 130/26, |
Czech Gas Holding | Schiphol Boulevard |
Slovak Gas Holding B. V. | Schiphol Boulevard |
Plzeňská teplárenská, | Doubravecká 2760/1, Východní |
In 2025, there were the following changes in equity investments:
On 28 March 2025, a 100% equity investment in EPIF BidCo I s.r.o. was disposed of.
On 31 March 2025, a provision of the contribution outside the registered capital amounting to EUR 94
million was made to EP Energy, a.s.
Annual Financial Report for the year 2025 – Section VII.
Statutory financial statements and Notes to the Statutory financial statements of EP Infrastructure, a.s. as of and for the year ended 31
December 2025
19
7.
Loans at amortised cost
In millions of EUR | 31 December | 31 December 2024 | |
Loans to other than credit institutions: | |||
Elektrárny Opatovice, a.s. (“EOP”) | - | 69 | |
Cash pool receivables: Subsidiaries and related parties | 9 | 152 | |
Total | 9 | 221 | |
Non-current | - | 67 | |
Current | 9 | 154 | |
Total | 9 | 221 |
Relevant accounting policy for impairment arising from expected losses is described in Note 3(d).
On 31 March, a partial repayment of a loan granted to EOP amounting to EUR 33 million, including
accrued interest, was received. The remaining portion of this receivable was assigned to EPE.
Fair value information
Fair values and the respective loans carried at amortised costs are disclosed in the following table:
In millions of EUR | 31 December 2025 | 31 December 2024 | |||
Carrying amount | Fair value | Carrying amount | Fair value | ||
Loan EOP | - | - | 69 | 68 | |
Cash pool receivables | 9 | 9 | 152 | 152 | |
Total | 9 | 9 | 221 | 220 | |
The fair value hierarchy of loans provided to non-financial institutions is based on Level 3 inputs (for detail
of valuation methods refer to Note 2 (d) i
– Assumption and estimation uncertainties
).
8.
Trade Receivables and Other Assets
In millions of EUR | 31 December | 31 December 2024 | |
Trade receivables | 1 | 1 | |
Other receivables | 1 | 168 | |
Current tax receivable | 5 | - | |
Total | 7 | 169 | |
Current | 7 | 169 | |
Total | 7 | 169 |
At 31 December 2025 and at 31 December 2024, no trade receivables and other assets were past due.
On 2 December 2024, the share capital and the share premium amounting to EUR 168 million of Slovak
Gas Holding B.V. were reduced.
The Company’s exposure to credit and currency risks and risk of impairment losses related to trade
receivables and other assets is disclosed in Note 19 –
Risk management policies and disclosures
.
9.
Equity
Share capital and share premium
The authorised, issued and fully paid share capital of the Company as at 31 December 2025
and 31 December 2024 consisted of 222,870,000 ordinary shares with a par value of CZK 250 each
(“Shares A”) and 100,130,000 shares, to which special rights are attached as specified in the Articles
of Incorporation, with a par value of CZK 250 each (“Shares B”).
Annual Financial Report for the year 2025 – Section VII.
Statutory financial statements and Notes to the Statutory financial statements of EP Infrastructure, a.s. as of and for the year ended 31
December 2025
20
Each shareholder is entitled to receive dividends and to cast 1 vote per 1 share with a nominal value
CZK 250 at meetings of the Company’s shareholders.
31 December 2025 | Number of shares | Ownership interest | Voting rights | |||
In thousands | 250 CZK | % | % | |||
Shares A | Shares B | |||||
EPIF Investments a.s. | 22 2,870 | - | 69 | 69 | ||
CEI INVESTMENTS S.à r.l. | - | 10 0,130 | 31 | 31 | ||
Total | 22 2,870 | 10 0,130 | 100 | 100 | ||
Other capital reserves
As of 31 December 2025 and 31 December 2024, other capital reserves consist of a payment over and
above the share capital balance in the form of loan capitalisation.
Retained earnings
In 2025, dividends amounting to EUR 878 million were declared, of which EUR 320 million were paid
in 2025.
10.
Valuation differences on cash flow hedges
Cash flow hedges – hedge of foreign currency risk with non-derivative financial liability
Due to the change in the functional currency on 1 January 2022 and the fact that the Company will no
longer be exposed to risk related to changes in FX rates, the dividend cash flow hedge has been
terminated. At the date of termination, the balance in equity was translated at (CZK to EUR) 24.86 and
a release table was set in EUR; the balance will be released against future dividends (the original hedged
item) between 2022 and 2034 in line with the Company’s hedging policy.
Cash flow hedges risk) | Cash flow hedges (currency risk) – deferred tax | Interest rate swap (hedging) | Interest rate swap (hedging) – deferred tax | Effect from hedge accounting | |||||||
Balance at 1. 1. 2024 | 34 | (7) | 2 | - | 29 | ||||||
Revaluation of cash | - | - | - | - | - | ||||||
Deferred tax – cash flow | - | - | - | - | - | ||||||
Reclassified to profit | (3) | - | - | - | (3) | ||||||
Deferred tax – interest | - | - | - | - | - | ||||||
Balance at 31. 12. 2024 | 31 | (7) | 2 | - | 26 | ||||||
Revaluation of cash | - | ||||||||||
Deferred tax – cash flow | - | - | - | - | |||||||
Reclassified to profit | (3) | 1 | (1) | - | - | ||||||
Deferred tax – interest | |||||||||||
Balance at 31. 12. 2025 | 28 | (6) | 1 | - | 23 | ||||||
11.
Loans and borrowings
In millions | 31 December | 31 December | |
Issued debentures | 2,207 | 1,610 | |
Loans from credit institutions | 213 | 290 | |
Cash pool liabilities | 340 | 356 | |
Total | 2,760 | 2,256 | |
Non-current | 1,800 | 1,879 | |
Current | 960 | 377 | |
Total | 2,760 | 2,256 |
Annual Financial Report for the year 2025 – Section VII.
Statutory financial statements and Notes to the Statutory financial statements of EP Infrastructure, a.s. as of and for the year ended 31
December 2025
21
The weighted average interest rate on financial liabilities without the effect of cash pool liabilities was
2.9% as at 31 December 2025 (31 December 2024: 2.6%).
Issued debentures at amortised cost
Details about debentures issued as at 31 December 2025 are presented in the following table:
In millions of EUR | Principal | Accrued interest | Unamortised transaction costs | Total | Maturity | Interest rate (%) | Effective interest rate (%) | |
2026 Notes | 600 | 4 | (0) | 604 | 30/07/2026 | 1,698 | 1,795 | |
2028 Notes | 500 | 2 | (1) | 501 | 09/10/2028 | 2,045 | 2,117 | |
2031 Notes | 500 | 8 | (2) | 506 | 02/03/2031 | 1,816 | 1,888 | |
2033 Notes | 600 | 2 | (6) | 596 | 27/02/2033 | 4,125 | 4,297 | |
Total | 2 200 | 16 | (9) | 2 207 |
Annual Financial Report for the year 2025 – Section VII.
Statutory financial statements and Notes to the Statutory financial statements of EP Infrastructure, a.s. as of and for the year ended 31
December 2025
22
EP Infrastructure standalone notes (2026, 2028 and 2031 Notes)
The EPIF 2026, 2028 and 2031 Notes (the „Standalone notes“) contain a covenant limiting certain types
of distributions to EPIF’s shareholders in certain circumstances. The Company has to monitor the ratio
of total amount of net debt of entities in EP Infrastructure, a.s. (the “Group”) to the Group’s EBITDA (i.e.
net leverage) before certain types of distributions are carried out.
In addition, the Standalone notes contain a change of control provision the triggering of which coupled
with a ratings decline may result in the Company’s obligation to redeem, or at its option, to procure the
purchase of all or part of the notes. Further, the Standalone notes contain customary events of defaults,
including, among other things, non-payment of principal or interest, breach of other obligations, cross-
acceleration/cross-default of the Company or material subsidiary, unsatisfied judgment, security
enforced, insolvency, winding-up and other customary events of default. Some of the events of default
are subject to a threshold in the amount of EUR 75 million. If any of such event of default occurs, the
Standalone notes may be declared immediately due and payable.
EP Infrastructure EMTN programme
In November 2025, EPIF established a Euro Medium Term Note (EMTN) programme. This framework
provides a standardised platform for the EPIF´s future debt issuances, offering greater structural
flexibility. Under this programme, EPIF has issued the following notes:
EP Infrastructure notes (2033 Notes)
On 27 November 2025, EPIF placed its debut offering of green EUR 600 million 4.125% fixed-rate
unsecured notes due in February 2033 in the denomination of EUR 100,000 each (“2033 Notes”), under
its EMTN Programme. The 2033 Notes are listed on Irish Stock Exchange (Euronext Dublin). Unless
previously redeemed or cancelled, the 2033 Notes will be redeemed at their principal amount on 27
February 2033. The net proceeds were allocated to finance or refinance eligible green projects in line with
EPIF’s Green Finance Framework.
The 2033 Notes are stated net of debt issue costs of EUR 4 million. These costs are amortised to the profit
and loss over the term of the 2033 Notes using an effective interest rate of 4.297%.
The terms and conditions of the EMTN programme contain a change of control provision, the triggering
of which, coupled with a ratings decline, may result in the Company’s obligation to redeem, or, at its
option, to procure the purchase of, all or part of the notes. Further, the conditions contain customary
events of default, including, among other things, non payment of principal or interest, breach of other
obligations, cross acceleration/cross default of the Company or a material subsidiary, unsatisfied
judgment, enforcement of security, insolvency, winding up and other customary events of default. Some
of the events of default are subject to a threshold of EUR 100 million. If any such event of default occurs,
the notes may be declared immediately due and payable.
Annual Financial Report for the year 2025 – Section VII.
Statutory financial statements and Notes to the Statutory financial statements of EP Infrastructure, a.s. as of and for the year ended 31
December 2025
23
Loans at amortised cost
The following table shows detailed information on loans as of 31 December 2025:
In millions of EUR | Principal | Accrued interest | Unamortised fee | Due date | Nominal interest rate | |
Schuldschein loan I | 105 | 2 | - | 12/02/2027 | Variable* | |
Schuldschein loan II | 75 | 1 | - | 12/02/2029 | Variable* | |
Schuldschein loan III | 30 | 0 | - | 12/02/2027 | Variable* | |
Total | 210 | 3 | - | - |
Schuldschein loans
On 5 March 2024, the Company has raised EUR 285 million through Schuldschein loan agreements
under German law issued in line with EPIF’s green principles (so called “green Schuldschein”).
The floating rate Schuldschein loan agreements have durations of three and five years, with
corresponding margins of 2.50% p.a. and 2.90% p.a., respectively.
On 18 December 2025, EPIF made a voluntary early repayment in the amount of EUR 75 million.
The Company’s debts under the Schuldschein loan agreements are general, senior unsecured debts
of the EPIF and rank equally in right of payment with EPIF’s existing and future indebtedness that is
not subordinated in right of payment. The Schuldschein loan agreements contain certain restrictive
provisions and also a change of control provision the triggering of which may result in mandatory
prepayment.
EPIF Facilities Agreement
On 8 November 2024, EPIF signed a up to EUR 400 million revolving facility agreement (the “EPIF’s
Facility Agreement”), which provides EPIF with an unsecured revolving facility until 8 November 2027.
The debts of EPIF under the EPIF’s Facility Agreement are general, senior unsecured debts of the EPIF
and rank equally in right of payment with the EPIF’s existing and future indebtedness that is not
subordinated in right of payment.
Further, the EPIF’s Facility Agreement contain customary events of defaults, including, among other
things, non-payment, other obligations, misrepresentation, cross-default, insolvency, insolvency
proceedings, preventive restructuring, creditors’ process, unlawfulness and invalidity, cessation of
business, repudiation and rescission of agreements and material adverse change. If any of such event of
default occurs, the EPIF’s Facility Agreement may be cancelled and declared immediately due and
payable or payable on demand.
Annual Financial Report for the year 2025 – Section VII.
Statutory financial statements and Notes to the Statutory financial statements of EP Infrastructure, a.s. as of and for the year ended 31
December 2025
24
Fair value information:
The fair value of interest-bearing instruments held at amortised cost is shown in the table below:
In millions | 31 December | 31 December | |||
Carrying amount | Fair value | Carrying amount | Fair value | ||
Loans from credit institutions | 213 | 209 | 290 | 282 | |
Issued debentures | 2,207 | 2,125 | 1,610 | 1,491 | |
Cash pool | 340 | 340 | 356 | 356 | |
Total | 2,760 | 2,256 | 2,129 | ||
Issued debentures are categorised within Level 1 of the fair value hierarchy. Loans from credit
institutions are categorised within Level 3 of the fair value hierarchy (for details of valuation methods
refer to Note 2 (d) i –
Assumption and estimation uncertainties
).
12.
Trade Payables and Other Payables
In millions | 31 December 2025 | 31 December 2024 | |
Trade payables | 2 | 1 | |
Payable arising from dividends | 100 | - | |
Total | 102 | 1 | |
Current | 102 | 1 | |
Total | 102 | 1 |
The estimate of liabilities is based on contractual conditions or on invoices received after the balance
sheet date, still before the sign-off of the financial statements.
Trade payables and other liabilities have not been secured as at 31 December 2025 and
31 December 2024.
As at 31 December 2025 and 31 December 2024, no liabilities to tax authorities were overdue.
13.
Personnel expenses
In millions | 2025 | 2024 | ||
Wages and salaries | 3 | 2 | ||
Compulsory social | 1 | 1 | ||
Total | 4 | 3 |
The average number of employees in full time equivalent units during 2025 was 18.9 (2024: 18.9),
of which 7 (2024: 7) were executives.
Annual Financial Report for the year 2025 – Section VII.
Statutory financial statements and Notes to the Statutory financial statements of EP Infrastructure, a.s. as of and for the year ended 31
December 2025
25
14.
Finance income and expense, profit (loss) from financial instruments
Recognised in profit In millions | 2025 | 2024 | |
Dividend income | 494 | 463 | |
Interest income Net foreign exchange | 13 - | 25 3 | |
Other income | 113 | - | |
Finance income | 620 | 491 | |
Interest expense | (57) | (67) | |
Fees and commissions Finance expense from assigned receivables | (6) (111) | (8) - | |
Net foreign exchange | (1) | ||
Finance expense | (175) | ( 75) | |
Profit /(loss) | - | 8 | |
Profit /(loss) | - | 8 | |
Net finance income | 445 | 424 |
On 31 March 2025, a dividend receivable amounting to EUR 440 million from EPE was fully offset
against a liability arising from the assignment of a receivables related to the disposal of equity interests
from EPE.
15.
Income tax expenses
Income tax recognised in profit or loss
In millions | 2025 | 2024 | ||
Current taxes: | ||||
Current year | (3) | (8) | ||
Adjustment for | - | (2) | ||
Total current taxes | ( 3) | ( 10) | ||
Deferred taxes: | ||||
Origination and reversal | - | - | ||
Total deferred taxes | - | - | ||
Total income taxes (expense) of comprehensive income | ( 3) | ( 10) |
(1) For details refer to Note 16 - Deferred tax assets and liabilities.
Deferred tax was calculated using the currently enacted tax rate expected to apply when the asset is
realised, or the liability settled, i.e. 21%. According to Czech legislation, the corporate income tax
rate was 21% for the fiscal year 2025 and the following years (21% for 2024).
Top-up tax
The Company is part of a multinational group of companies (“Group”) subject to new 15% minimum taxation
rules introduced based on the Pillar Two rules of the BEPS 2.0 initiative since 2024.
Pillar Two rules provide that if in certain jurisdictions where the Group operates the effective tax rate (“ETR”)
(given by the ratio between adjusted accounting result and adjusted corporate income taxes in the jurisdiction)
falls below 15%, the Group will be required to pay an additional tax (“top-up tax”) to reach the 15% tax rate
threshold.
The Company has, in cooperation with the Group’s Pillar Two team, performed an assessment of its potential
exposure for Pillar Two top-up taxes in 2025. The assessment relies on the most recent information available
regarding the financial performance of the Group’s entities. This includes the 2024 Country-by-Country
Reporting and available preliminary financial data for 2025.
Annual Financial Report for the year 2025 – Section VII.
Statutory financial statements and Notes to the Statutory financial statements of EP Infrastructure, a.s. as of and for the year ended 31
December 2025
26
The potential top-up tax exposure was provisionally calculated based on the preliminary 2025 accounting data
revised for material Pillar Two rules adjustment (if and where applicable). Based on the provisional calculation,
the Company would not be subject to top-up tax.
The above analysis must be considered as an estimate, as the indicative calculation is based on complex
regulations that have only recently been enacted (and are still subject to amendments in various jurisdictions)
with limited guidelines and not all relevant data available to perform the full Pillar Two calculation.
Income tax recognised in other comprehensive income
In millions | 2025 | ||
Before tax (gross) | Income tax | Net of income tax | |
Effective portion of changes in fair value of hedging instruments (currency risk) | (3) | - | (3) |
Effective portion of changes in fair value of hedging instruments (interest rate risk) | - | - | - |
Total | (3) | - | (3) |
In millions | 2024 | ||
Before tax (gross) | Income tax | Net of income tax | |
Effective portion of changes in fair value of hedging instruments (currency risk) | (3) | - | (3) |
Effective portion of changes in fair value of hedging instruments (interest rate risk) | - | - | - |
Total | (3) | - | (3) |
Reconciliation of effective tax rate
In millions of EUR | 2025 | 2024 | |||
% | % | ||||
Profit before tax | 439 | 419 | |||
Income tax using the Czech domestic rate (21%) | 21.0 | (92) | 21.0 | (88) | |
Non-taxable income - dividends | (23.7) | 104 | (23.2) | 97 | |
Other non-taxable income | - | - | - | - | |
Non-deductible expenses/non-taxable income – interest | 2.7 | (12) | 3.1 | (14) | |
Non-deductible expenses – other financial expenses | 0.7 | (3) | 0.5 | (2) | |
Non-deductible expenses/non-taxable income – provisions and allowances | - | - | - | - | |
Non-deductible expenses - other | - | - | 0.3 | (1) | |
Income tax – corrections of prior years | - | - | 0.5 | (2) | |
Other effects on profit or loss | - | - | - | - | |
Income taxes recognised in the comprehensive income statement | 0.7 | (3) | 2.4 | (10) |
Annual Financial Report for the year 2025 – Section VII.
Statutory financial statements and Notes to the Statutory financial statements of EP Infrastructure, a.s. as of and for the year ended 31
December 2025
27
16.
Deferred tax assets and liabilities
The following deferred tax assets and liabilities have been recognised:
In millions of EUR | 31 December 2025 | 31 December 2025 | 31 December 2024 | 31 December 2024 | |
Temporary difference related to: | Assets | Liabilities | Assets | Liabilities | |
Financial instruments | - | (2) | - | (2) | |
Cash flow hedges | - | (5) | - | (6) | |
Total | - | (7) | - | (8) | |
Total (net) | - | (7) | - | (8) |
Movements in deferred tax during the year:
In millions of EUR | |||||
Balances related to: | Balance at 1 January 2025 | Recognised profit or loss | Recognised in equity | Balance at 31 December 2025 | |
Financial instruments | (2) | - | - | (2) | |
Cash flow hedges | (6) | - | 1 | (5) | |
Total | (8) | - | 1 | (7) |
Movements in deferred tax during the prior period:
In millions of EUR Balance related to: | Balance at 1 January 2024 | Recognised profit or loss | Recognised in equity | Balance at 31 December 2024 |
Financial instruments | (2) | - | - | (2) |
Cash flow hedges | (7) | - | 1 | (6) |
Total | (9) | - | 1 | (8) |
17.
Off-balance sheet assets and liabilities
The Company recognised receivables in the amount of EUR 0 million (31 December 2024: EUR 20
million) and payables in the amount of EUR 0 million (31 December 2024: EUR 20 million) each in its
off-balance sheet records, which represented the nominal value of existing derivatives.
The Company recognised a receivable arising from guarantees granted to companies within the EPIF
Group in the total amount of EUR 324 million (31 December 2024: EUR 49 million) and a liability from
the guarantees granted within the Group in the total amount of EUR 50 million (31 December 2024: EUR
50 million) each in its off-balance sheet records.
The Company also recognised undrawn revolving credit facilities in the amount of EUR 502 million
(31 December 2024: EUR 500 million) of which part amounting to EUR 22 million (2024: EUR 25
million) is allocated as collateral of liabilities in the form of provided guarantees to entities in the EPIF
Group.
Annual Financial Report for the year 2025 – Section VII.
Statutory financial statements and Notes to the Statutory financial statements of EP Infrastructure, a.s. as of and for the year ended 31
December 2025
28
18.
Operating expenses and income
Sales and operating income
Sales and operating income of the Company comprise provided support and consulting services.
Other operating expenses
In millions | 2025 | 2024 | |
Audit, accounting, | 1 | 1 | |
Tax, legal and other advisory | 1 | 1 | |
Other | 1 | 1 | |
Total for continuing | 3 | 3 |
Information on remuneration to statutory auditors will be provided in the notes to the
consolidated
financial statements of the Company. Services in addition to the statutory audit include primarily
the following services:
• Review of the condensed interim consolidated financial statements as at 30 June 2025;
• Limited assurance on Sustainability report as at 31 December 2025
• Provision of Comfort letter
No significant research and development expenses were recognised in the statement
of comprehensive income for the years ended 31 December 2025 and 31 December 2024.
19.
Risk management policies and disclosures
This section provides details of the Company’s exposure to financial and operational risks and
the way it manages such risk. Credit risk, liquidity risk and market risk are the most important types
of financial risks to which the Company is exposed.
As part of its operations, the Company is exposed to different market risks, notably the risk of changes
in interest rates and exchange rates. To minimise this exposure, the Company enters into derivatives
contracts to mitigate or manage the risks associated with individual transactions and overall
exposures, using instruments available on the market.
(a)
Credit risk
Credit risk is the risk of financial loss to the Company if a counterparty to a financial instrument
fails to meet its contractual obligations, and arises principally from loans and advances. The Company
is exposed to credit risk mainly in connection with loans provided to subsidiaries and other related
parties; other significant receivables predominantly include other receivables and trade receivables.
The Company regularly monitors the ability of debtors to pay their receivables through the analysis
of the financial reporting of these entities.
Additional aspects mitigating credit risk
The Company establishes an allowance for impairment that represents its estimate of incurred
losses in respect of trade and other receivables.
At the reporting date, the maximum exposure to credit risk by type of counterparty and by geographic
region is provided in the following tables.
Annual Financial Report for the year 2025 – Section VII.
Statutory financial statements and Notes to the Statutory financial statements of EP Infrastructure, a.s. as of and for the year ended 31
December 2025
29
Credit risk by type of counterparty
In millions of EUR | Corporate (non-financial institutions) | State, government | Banks | Total |
Assets | ||||
Cash and cash equivalents | - | - | 653 | 653 |
Other receivables | 2 | - | - | 2 |
Loans at amortised cost | 9 | - | - | 9 |
Current tax receivable | - | 5 | - | 5 |
Total | 11 | 5 | 653 | 669 |
In millions of EUR | Corporate (non-financial institutions) | State, government | Banks | Total |
Assets | ||||
Cash and cash equivalents | - | - | 214 | 214 |
Other receivables | 169 | - | - | 169 |
Loans at amortised cost | 221 | - | - | 221 |
Total | 390 | - | 214 | 604 |
Credit risk by location of debtor
As at 31 December 2025 | ||||||
In millions of EUR | Czech Republic | Slovakia | Germany | Netherlands | Other | Total |
Assets | ||||||
Cash and cash equivalents | 484 | 19 | 150 | - | - | 653 |
Other receivables | 2 | - | - | - | - | 2 |
Loans at amortised cost | 9 | - | - | - | - | 9 |
Current tax receivable | 5 | - | - | - | - | 5 |
Total | 669 | 19 | 150 | - | - | 669 |
As at 31 December 2024 | ||||||
In millions of EUR | Czech Republic | Slovakia | Germany | Netherlands | Other | Total |
Assets | ||||||
Cash and cash equivalents | 149 | 30 | 35 | - | - | 214 |
Other receivables | 1 | - | - | 168 | - | 169 |
Loans at amortised cost | 220 | - | - | 1 | - | 221 |
Total | 435 | 30 | 35 | 169 | - | 604 |
i. Impairment losses
The Company establishes an allowance for all expected future losses arising from the asset over
the course of the asset’s useful life. Allowances are established predominantly on an individual basis for
loans provided. All financial assets of the Company were classified at Stage 1.
The ageing of financial assets, excluding cash and cash equivalents and derivatives at the reporting date
was as follows:
Annual Financial Report for the year 2025 – Section VII.
Statutory financial statements and Notes to the Statutory financial statements of EP Infrastructure, a.s. as of and for the year ended 31
December 2025
30
Credit risk – impairment of financial assets
As at 31 December 2025 | |||||
In millions of EUR | Other receivables and current tax | Loans to other than credit institutions | Total | ||
Before maturity (net) | 7 | 9 | 16 | ||
After maturity (net) | - | - | - | ||
Total | 7 | 9 | 16 | ||
- | - | - | |||
- | - | - | |||
Net | 7 | 9 | 16 | ||
Total | 7 | 9 | 16 | ||
The movements in the allowance for impairment in respect of financial assets during
the year ended 31 December 2025 were as follows:
In millions of EUR | Loans to other than credit institutions | Total |
Balance at 1 January 2025 | - | - |
Impairment losses | - | - |
Reversals (release) | - | - |
Balance at 31 December 2025 | - | - |
Credit risk – impairment of financial assets
As at 31 December 2024 | |||||
In millions of CZK | Other receivables | Loans to other than credit institutions | Total | ||
Before maturity (net) | 169 | 221 | 390 | ||
After maturity (net) | - | - | - | ||
Total | 169 | 221 | 390 | ||
- | - | - | |||
- | - | - | |||
- | - | - | |||
Net | 169 | 221 | 390 | ||
Total | 169 | 221 | 390 | ||
The movements in the allowance for impairment in respect of financial assets during the year ended
31 December 2024 were as follows:
In millions of CZK | Loans to other than credit institutions | Total | |
Balance at 1 January 2024 | - | - | |
Impairment losses | - | - | |
Reversals (release) | - | - | |
Balance at 31 December 2024 | - | - | |
(b)
Liquidity risk
Liquidity risk is the risk that the Company will encounter difficulties in meeting the obligations associated
with its financial liabilities that are settled by delivering cash or another financial asset.
The Company’s management focuses on methods used by financial institutions, i.e. diversification
of sources of funds. This diversification makes the Company flexible and limits its dependency on
Annual Financial Report for the year 2025 – Section VII.
Statutory financial statements and Notes to the Statutory financial statements of EP Infrastructure, a.s. as of and for the year ended 31
December 2025
31
one financing source. Liquidity risk is evaluated by monitoring changes in the structure of financing
and comparing these changes with the Company’s liquidity risk management strategy.
Typically, the Company ensures that it has sufficient cash on demand and assets within short maturity
to meet expected operational expenses for a period of 90 days, including servicing financial obligations;
this excludes the potential impact of extreme circumstances that cannot reasonably be predicted, such as
natural disasters.
The overview below provides an analysis of the Company’s financial liabilities by relevant maturity
groupings based on the remaining period from the reporting date to the contractual maturity date. It
is presented under the most prudent consideration of maturity dates where options or repayment
schedules allow for early repayment possibilities. Therefore, in the case of liabilities, the earliest required
repayment date is disclosed.
As of the date of preparation of the financial statements, the Company records undrawn credit
facilities described in Note 17, which guarantee sufficient additional liquidity, also with respect to
the value of current assets and current liabilities as at 31 December 2025.
Maturities of financial liabilities
As at 31 December In millions of EUR | Carrying amount | Contractual cash flows (1) | Up to 3 months | 3 months to 1 year | 1–5 years | Over 5 years |
Liabilities | ||||||
Loans and | 2,760 | 3,035 | 360 | 625 | 876 | 1,174 |
Other liabilities | 102 | 102 | 102 | - | - | - |
Total | 3,137 | 462 | 625 | 876 | 1,174 |
(1) Contractual cash flows disregard discounting to net present value and include potential future interest.
As at 31 December In millions of EUR | Carrying amount | Contractual cash flows (1) | Up to 3 months | 3 months to 1 year | 1–5 years | Over 5 years |
Liabilities | ||||||
Loans and | 2,256 | 2,292 | 372 | 14 | 1,408 | 498 |
Other liabilities | 1 | 1 | 1 | - | - | - |
Total | 2,257 | 2,293 | 373 | 14 | 1,408 | 498 |
It is not expected that the cash flows included in the maturity analysis would occur significantly earlier
or in significantly different amounts.
Annual Financial Report for the year 2025 – Section VII.
Statutory financial statements and Notes to the Statutory financial statements of EP Infrastructure, a.s. as of and for the year ended 31
December 2025
32
(c)
Interest rate risk
The Company’s operations are subject to the risk of interest rate fluctuations to the extent that
interest- earning assets and interest-bearing liabilities mature or re-price at different times or in
differing amounts. The length of time for which the rate of interest is fixed on a financial instrument
therefore indicates to what extent it is exposed to interest rate risk. The table below provides
information on the extent of the Company’s interest rate exposure based either on the contractual
maturity date of its financial instruments or, in the case of instruments that re-price to a market rate
of interest before maturity, the next re-pricing date. Those assets and liabilities that do not have
a contractual maturity date or are not interest-bearing are grouped together in the “maturity undefined”
category.
Various types of derivatives are used to reduce the amount of debt exposed to interest rate fluctuations
and to reduce borrowing costs and include mainly interest rate swaps.
These contracts are normally agreed with a notional amount lower than or equal to that
of the underlying financial liability, so that any change in the fair value and/or expected future cash
flows of these contracts is offset by a corresponding change in the fair value and/or the expected future
cash flows from the underlying position.
Financial information relating to interest bearing and non-interest bearing assets and liabilities and
their contractual maturity or re-pricing dates as at 31 December 2025 is as follows:
In millions of EUR | Up to 1 year | 1-5 years | Over 5 years | Undefined maturity | Total | ||
Assets | |||||||
Cash and cash equivalents | 653 | - | - | - | 653 | ||
Other receivables | - | - | - | 2 | 2 | ||
Loans at amortised cost | 9 | - | - | - | 9 | ||
Current tax receivable | - | - | - | 5 | 5 | ||
Total | 662 | - | - | 7 | 669 | ||
Liabilities | |||||||
Loans and | 569 | 1,099 | 1,092 | - | 2,760 | ||
Other liabilities | - | - | - | 102 | 102 | ||
Total | 569 | 1,099 | 1,092 | 102 | 2,862 | ||
Net interest rate risk | 93 | (1,099) | (1,092) | (95) | (2,193) | ||
Net interest rate risk IRS) | 93 | (1,099) | (1,092) | (95) | (2,193) | ||
Financial information relating to interest bearing and non-interest bearing assets and liabilities and
their contractual maturity or re-pricing dates as at 31 December 2024 is as follows:
In millions of EUR | Up to 1 year | 1-5 years | Over 5 years | Undefined maturity | Total | ||
Assets | |||||||
Cash and cash equivalents | 214 | - | - | - | 214 | ||
Other receivables | 168 | - | - | 1 | 169 | ||
Loans at amortised cost | 221 | - | - | - | 221 | ||
Total | 603 | - | - | 1 | 604 | ||
Liabilities | |||||||
Loans and (1) | 661 | 1,097 | 498 | - | 2,256 | ||
Other liabilities | - | - | - | 1 | 1 | ||
Total | 661 | 1,097 | 498 | 1 | 2,257 | ||
Net interest rate risk | (58) | (1,097) | (498) | 0 | (1,653) | ||
Net interest rate risk IRS) | (58) | (1,097) | (498) | 0 | (1,653) | ||
(1) Disregarding agreed interest rate swaps
Sensitivity analysis
Annual Financial Report for the year 2025 – Section VII.
Statutory financial statements and Notes to the Statutory financial statements of EP Infrastructure, a.s. as of and for the year ended 31
December 2025
33
The Company performs stress testing using a standardised interest rate shock, i.e. an immediate
decrease/increase in interest rates by 1% along the whole yield curve is applied to the interest rate
positions of the portfolio.
At the reporting date, a change of 1% in interest rates would have increased or decreased Company’s
profit by the amounts shown in the table below. This analysis assumes that all other variables,
in particular foreign currency rates, remain constant.
In millions of CZK | 31. 12. 2025 | 31. 12. 2024 |
Profit (loss) | Profit (loss) | |
Decrease in interest rates | (1) | 1 |
Increase in interest rates | 1 | (1) |
(d)
Foreign exchange risk
The Company takes on exposure to the effects of fluctuations in the prevailing foreign currency
exchange rates on its financial position and cash flows.
The Company is exposed to a currency risk on sales, purchases and borrowings that are denominated
in a currency other that the Company’s functional currency (EUR), primarily CZK.
Various types of derivatives are used to reduce the exchange rate risk on foreign currency assets,
liabilities and expected future cash flows. These include currency swaps, most with a maturity of less
than one year.
These contracts are also normally agreed with a nominal amount and expiry date equal to that
of the underlying financial liability or the expected future cash flows, so that any change in the fair
value and/or future cash flows of these contracts stemming from a potential appreciation or
depreciation of the functional currency against the foreign currencies is fully offset by a corresponding
change in the fair value and/or the expected future cash flows of the underlying position.
Annual Financial Report for the year 2025 – Section VII.
Statutory financial statements and Notes to the Statutory financial statements of EP Infrastructure, a.s. as of and for the year ended 31
December 2025
34
As of 31 December 2025, the Company’s financial assets and liabilities based on denomination
were as follows:
In millions of EUR | CZK | EUR | Other | Total | |
Assets | |||||
Cash and cash equivalents | 56 | 597 | - | 653 | |
Other receivables | 7 | - | - | 7 | |
Loans at amortised cost | 9 | - | - | 9 | |
72 | 597 | - | 669 | ||
Off-balance sheet | 52 | 500 | - | 552 | |
Liabilities | |||||
Loans and borrowings | 242 | 2,518 | - | 2,760 | |
Other liabilities | - | 102 | - | 102 | |
242 | 2,620 | - | 2,862 | ||
Off-balance | 320 | 4 | - | 324 | |
Net FX risk | (438) | (1,527) | (1,965) | ||
Effect of currency | - | - | - | - | |
Net FX risk position | (438) | (1,527) | - | (1,965) | |
Off-balance sheet assets are described in more detail in Note 17 – Off-balance sheet assets and liabilities.
As of 31 December 2024, the Company’s financial assets and liabilities based on denomination were as
follows:
In millions of EUR | CZK | EUR | Other | Total |
Assets | ||||
Cash and cash equivalents | 97 | 117 | - | 214 |
Other receivables | 1 | 168 | - | 169 |
Loans at amortised cost | 118 | 103 | - | 221 |
216 | 388 | - | 604 | |
Off-balance sheet | 60 | 510 | - | 570 |
Liabilities | ||||
Loans and borrowings | 247 | 2,009 | - | 2,256 |
Other liabilities | - | 1 | - | 1 |
247 | 2,010 | - | 2,257 | |
Off-balance | 52 | 17 | - | 69 |
Net FX risk | (23) | (1,129) | - | (1,152) |
Effect of currency | - | - | - | - |
Net FX risk position | (23) | (1,129) | - | (1,152) |
Off-balance sheet assets are described in more detail in Note 17 – Off-balance sheet assets and liabilities.
The following significant exchange rates applied during the reporting period:
2025 | 2024 | ||||
CZK | Average rate | Reporting date | Average rate | Reporting date | |
EUR | 24.688 | 24.237 | 25.120 | 25.185 | |
Sensitivity analysis
A strengthening (weakening) of
the
EUR, as indicated below, against the CZK at the reporting date would
have an impact on profit or loss and other comprehensive income for the accounting period due to
a positive (negative) revaluation of net assets by the amounts shown in the following table. This analysis
is based on foreign currency exchange rate variances that the Company considered to be reasonably
likely at the end of the reporting period. The analysis assumes that all other variables, in particular
interest rates, remain constant.
Effect in millions | 31/12/2025 | 31/12/2024 | |
Profit (loss) | Profit (loss) | ||
5% strengthening | (22) | (4) | |
Effect in millions | 31/12/2025 | 31/12/2024 | |
Other comprehensive income | Other comprehensive income | ||
5% strengthening | (22) | (4) | |
Annual Financial Report for the year 2025 – Section VII.
Statutory financial statements and Notes to the Statutory financial statements of EP Infrastructure, a.s. as of and for the year ended 31
December 2025
35
A weakening of the EUR against the above currency at the reporting date would have had equal but
opposite effect, on the basis that all other variables remain constant.
(e)
Operational risk
Operational risk is the risk of loss arising from fraud, unauthorised activities, error, omission, inefficiency
or system failure. It arises from all activities and is faced by all business organisations. Operational
risk includes legal risk.
The primary responsibility for the implementation of controls to address operational risk is assigned to
the Company’s management. General standards applied cover the following areas:
●
requirements for the reconciliation and monitoring of transactions
●
identification of operational risk within the control system,
●
this overview of the operational risk events allows the Company to specify the direction of the
steps and process to take in order to limit these risks, as well as to make decisions regarding:
-
accepting the individual risks that are faced;
-
initiating processes leading to limitation of possible impacts; or
-
decreasing the scope of the relevant activity or discontinuing it entirely.
(f)
Capital management
The Company’s policy is to maintain a strong capital base to maintain investor, creditor and market
confidence and to sustain future development of its business.
The Company manages its capital to ensure that it will be able to continue as a going concern
while maximising the return to shareholders through the optimisation of the debt and equity balance.
The Company is not subject to externally imposed capital requirements.
The Company also monitors its debt to adjusted capital ratio. At the end of the reporting period, the ratio
was as follows:
In millions of | 31 December | 31 December | |
Total liabilities bearing | 2,760 | 2,256 | |
Less: cash and cash | 653 | 214 | |
Net debt | 2,107 | 2,042 | |
Total equity attributable to | 4,725 | 5,170 | |
Less: amounts | 23 | 26 | |
Adjusted capital | 4,702 | 5,144 | |
Debt to adjusted | 0.45 | 0.40 |
Annual Financial Report for the year 2025 – Section VII.
Statutory financial statements and Notes to the Statutory financial statements of EP Infrastructure, a.s. as of and for the year ended 31
December 2025
36
(g)
Hedge accounting
Cash flow hedges – hedge of foreign currency risk with non-derivative financial liability
Due to the change in the functional currency on 1 January 2022, the dividend cash flow hedge was
discontinued as the Company assessed that it would no longer be exposed to material risk related to
changes in FX rates. As such, the dividend cash flow hedge has been terminated. At the date
of termination, the balance in equity was translated at (CZK to EUR) 24.86 and a release table was set
in EUR, the balance will be released against future dividends (the original hedged item) between 2022
and 2034.
Cash flow hedges – hedge of interest rate risk
The Company applied hedge accounting for hedging instruments designed to hedge the interest rate risk
of its debt financing before 2 March 2021. The hedging instruments included interest rate swaps used
to hedge the risk related to the repricing of interest rates on debt financing. Due to refinancing of loans
with a variable interest rate by a debenture with a fixed rate, the hedge accounting was discontinued. As
at 2 March 2021, a hedge effectiveness test was performed, and the relationship was assessed as
ineffective. As a result of the discontinued hedge relationship, the Company recognised a cash flow hedge
reserve from interest in equity in the amount of CZK 2,609 million (equivalent of EUR 100 million).
The revaluation of interest swaps used as hedging between 31 December 2020 and 2 March 2021 was
derecognised in the profit or loss for 2021 and concurrently the relevant release was set for 2021 – 2026.
This hedging should have been gradually derecognised together with the future interest (hedged item) in
the profit or loss.
From 26 April 2022, the Company applied hedge accounting for hedging instruments designed to hedge
interest rate risk of debt financing. Hedging instruments were interest rate swaps used to hedge the risk
associated with changes in interest rates on debt financing. In total, the Company had entered into interest
rate swaps with a nominal amount of EUR 710 million maturing between 2028 and 2029 with fixed rates
ranging from 1.551% to 1.671%. In April 2023, the funding requirement of the Company was reassessed,
and the hedging instrument (interest rate swaps) was reduced to a nominal value of EUR 500 million.
The effect of the termination of part of the hedging relationship of EUR 26 million was derecognised in
a lump sum to the profit for 2023. As at 31 December 2023, the Company assessed the probability that
the Company’s note due in April 2024 will be refinanced. Given the relatively low probability that
previously intended future interest payments (hedged item) under the hedging documentation will occur,
the corresponding amount of EUR 46 million has been on one-off basis charged to profit or loss in 2023.
The valuation differences on cash flow hedges in equity for interest rate risk at 31 December 2025 amount
to EUR 1 million (2024: EUR 2 million).
Annual Financial Report for the year 2025 – Section VII.
Statutory financial statements and Notes to the Statutory financial statements of EP Infrastructure, a.s. as of and for the year ended 31
December 2025
37
19.
Related parties
Identity of related parties
The Company has a related party relationship with its shareholders and other parties, as identified in
the following table.
(a)
The summary of outstanding balances with related parties as at 31 December 2025 and
31 December 2024:
The Company had transactions with related parties, its parent company, and other related parties,
as follows:
In millions of EUR | Accounts receivable and other financial assets | Accounts payable and other financial liabilities | Accounts receivable and other financial assets | Accounts payable and other financial liabilities |
31/12/2025 | 31/12/2025 | 31/12/2024 | 31/12/2024 | |
Subsidiaries | - | 155 | 286 | 136 |
Other * | 11 | 185 | 104 | 221 |
Shareholders | - | 100 | - | - |
Total | 11 | 440 | 390 | 357 |
* Entities under Energetický a průmyslový holding a.s.
Daniel Křetínský is the ultimate beneficial owner.
(b)
The summary of transactions with related parties during the year ended
31 December 2025 and 31 December 2024 was as follows:
In millions of EUR | Revenues | Expenses | Revenues | Expenses | |
2025 | 2025 | 2024 | 2024 | ||
Subsidiaries | 494 | 6 | 468 | 11 | |
Other * | 4 | 7 | 8 | 11 | |
Shareholders | - | - | - | - | |
Total | 498 | 13 | 476 | 22 |
* Entities under Energetický a průmyslový holding a.s.
Daniel Křetínský is the ultimate beneficial owner.
All transactions were performed under the arm’s length principle.
Transactions with the key management personnel
The members of the Board of Directors and the Supervisory Board of the Company did not receive
any other significant monetary or non-monetary performance for 2025 and 2024. At the same time,
members nominated by EPIF Investment a.s. (shareholder of EPIF) were also employed by other
companies of the EPH Group.
Social security and health insurance liabilities were not overdue.
Annual Financial Report for the year 2025 – Section VII.
Statutory financial statements and Notes to the Statutory financial statements of EP Infrastructure, a.s. as of and for the year ended 31
December 2025
38
20.
Subsequent events
On 23 January 2026, the Company paid a EUR 100 million dividend that had been declared in December
2025.
On 29 January 2026, the Company successfully completed the issuance of EUR 500 million 4.375%
senior unsecured green notes (the “2034 Notes”) under its EMTN Programme. The 2034 Notes were
issued at a price of 99.630% and mature on 29 January 2034.
On 12 February 2026, the Company voluntarily repaid in full the remaining outstanding amounts under
its Schuldschein loan agreements, totalling EUR 210 million. This repayment fully discharged the
Company’s obligations under the Schuldschein financing.
Between the balance sheet date and the date of the financial statements preparation, no further events
have occurred that would materially affect the assessment of the Company's financial position and
results of operations for the year 2025.
VIII. Sustainability – Management Review
Sustainability – Management Review
Annual Financial Report for the year 2025 – Section VIII.
Sustainability – Management Review
1
Contents
1. Management review ................................ ................................................................ ................................................ 2
1.1 Year 2025 in review ................................................................ ................................................................ ......2
1.2 Key performance indicators ................................................................ .......................................................... 4
1.3 Role of EPIF assets in the energy transition ................................ ................................................................ .5
2. EPIF and its business ................................ ................................................................ .............................................. 8
2.1 Timeline ................................................................ ................................................................ ........................8
2.2 Group structure and geographical presence ................................................................ ..................................9
2.3 Value chain ................................................................ ................................................................ ................. 10
2.4 Business segments overview................................ ................................................................ ....................... 11
Gas transmission ................................................................ ................................................................ ............... 11
Gas and power distribution ................................................................................................ ............................... 11
Gas storage ................................................................ ................................................................ ....................... 11
Heat infrastructure ................................................................ ................................................................ ............ 12
Annual Financial Report for the year 2025 – Section VIII.
Sustainability – Management Review
2
Management review
1.1
Year 2025 in review
In 2025, Europe’s energy infrastructure landscape continued to undergo profound change as new
regulations took hold, market conditions shifted, and decarbonization objectives remained ambitious. For
EP Infrastructure (EPIF), this rapidly evolving environment brought both strategic opportunities and
operational challenges, underscoring the essential function of energy infrastructure in supporting a secure,
adaptable, and low-carbon energy system.
Across its gas midstream and downstream infrastructure, EPIF continued to advance its preparedness for
hydrogen transmission, storage, and distribution. Its subsidiary eustream, a Slovak gas transmission
operator, pursues a project to refurbish one of its pipelines to enable the international transport of green
hydrogen, which has been granted the status of an Important Project of Common European Interest (IPCEI).
The Slovak hydrogen backbone has the potential to become part of several emerging hydrogen corridors
including the Central European Hydrogen Corridor or the South-East European Hydrogen Corridor linking
prospective green hydrogen production areas with industrial clusters primarily in Germany. Thanks to its
strategic position and connections to all neighboring countries, eustream is well placed to support both
domestic hydrogen supply in Slovakia and international transit, helping connect hydrogen producers with
demand centers, particularly in Germany.
In the gas distribution segment, following the certification completed in 2024 allowing the distribution of
hydrogen blends of up to 10% in the local network and 5% in high-pressure pipelines, EPIF’s subsidiary
SPP-distribúcia (“SPPD”) launched the H2Demo project. As part of this initiative, the company developed
a dedicated test polygon in an isolated section of the network to simulate the distribution of pure hydrogen.
SPPD also continued modernizing its infrastructure by replacing older steel pipelines with hydrogen-
compatible polyethylene pipes. In addition, SPPD, together with eustream and other partners, have
established Slovakia’s first hydrogen valley - EASTGATEH2V in the Košice region - bringing together
clean hydrogen production, transport, and industrial use to stimulate regional economic development.
Besides hydrogen, SPPD plays a critical role in expanding the use of biomethane. In 2025, second
biomethane station was connected to the SPPD network, while further ten stations have already secured
investment subsidies for conversion to biomethane production. Slovakia’s biomethane potential is
estimated at approximately 400-500 million cubic metres per year, representing more 10% of the country’s
current gas consumption.
In the gas storage segment, EPIF’s subsidiary Nafta progressed with Project Henri, which has also received
IPCEI status. The main objective of the project is to develop and implement a pilot underground porous
gas storage facility for hydrogen, either in pure form or blended with natural gas at the highest feasible
hydrogen concentration, based on the outcomes of the research and development phase. The project is
currently in the final stage of the R&D phase, and the results obtained so far have not ruled out the
possibility of storing hydrogen at high concentrations or even in its pure form. In the second phase, selected
geological structures considered suitable will undergo physical testing for hydrogen storage.
As a major district heating operator in the Czech Republic, EPIF has been actively transitioning its portfolio
of cogeneration heating plants away from lignite toward a more diversified energy mix centered on
hydrogen-ready combined-cycle gas turbine (CCGT) units, waste-to-energy facilities, while utilizing
existing biomass assets. In March 2025, EPIF divested two cogeneration heating plants operated via its
subsidiaries Elektrárny Opatovice and United Energy to EP Heat & Power within the broader EP Group
and will now focus exclusively on heat distribution in the respective regions. The decarbonization initiatives
previously launched by EPIF remain unaffected by this transfer, and all projects continue to progress
Annual Financial Report for the year 2025 – Section VIII.
Sustainability – Management Review
3
according to plan. EPIF also continues to operate cogeneration heating plants in the city of Pilsen. To
support the decarbonization strategy of its Czech district heating operations, EPIF has secured investment
subsidies from the Modernization Fund, as well as 15-year operating support for cogeneration capacity
awarded through a competitive auction. This conversion will enable EPIF to meet its commitment to phase
out coal by 2030, while striving to complete the conversion already by 2028/2029.
Given its exposure to natural gas operations, EPIF’s ability to adapt its infrastructure for renewable or low-
carbon gases is critical. While ensuring technical readiness remains a key priority, the transition away from
natural gas will also depend on the broader development of a functioning renewable gas market - an area
in which EPIF’s role is more peripheral. Despite widespread development of clean energy, the hydrogen
market has been evolving more slowly than initially anticipated with limited tangible demand or supply of
green hydrogen. Nevertheless, policymakers continue to advance initiatives designed to stimulate industrial
demand and support investment in the necessary infrastructure. Together, these efforts demonstrate the
EU’s ongoing commitment to building a cleaner, more resilient, and secure energy system. As a major
operator of gas infrastructure and a developer of gas-fired cogeneration heating assets, EPIF remains
committed to the long-term replacement of natural gas.
In its electricity distribution segment, operated through its subsidiary Stredoslovenská distribučná (SSD) in
central Slovakia, EPIF continued investing in the network to support widespread electrification,
accommodate new connections, and adapt to increasing volatility in the energy system. The continuous
deployment of smart meters enables end customers to manage their energy consumption more efficiently
and achieve energy savings.
In its retail supply business in the Czech Republic and Slovakia, EPIF continued to acquire new customers
by offering reliable electricity and gas supply at competitive prices. The company also provides innovative
solutions such as turnkey installation of solar panels and heat pumps, as well as a virtual battery service
that allows customers to better match their energy consumption with electricity generated from their own
solar installations.
Through its subsidiary Geoterm Košice, EPIF has commenced drilling several geothermal wells near the
city of Košice in Slovakia to supply heat to the city’s district heating network. The hot water extracted from
underground will help replace coal, which is still partially used for district heating. Harnessing existing
geothermal energy demonstrates how clean energy solutions can also strengthen independence from
imported fossil fuels.
In November 2025, EPIF issued its inaugural EUR 600 million green bond, followed by another EUR500m
green bond issued in January 2026, leveraging the Green Finance Framework established in 2023 and
providing additional depth to the Group’s sustainable finance structure. Green finance instruments enable
EPIF to align its financial strategy with its sustainability objectives. These efforts confirm the Group’s
credibility in sustainable capital markets and reinforce its commitment to continuous improvement in
environmental performance and disclosure standards.
These regulatory and market developments underscore the strategic importance of EPIF’s infrastructure in
supporting Europe’s energy transition.
Annual Financial Report for the year 2025 – Section VIII.
Sustainability – Management Review
4
1.2
Key performance indicators
Annual Financial Report for the year 2025 – Section VIII.
Sustainability – Management Review
5
1.3
Role of EPIF assets in the energy transition
Role of gas in the energy transition
EPIF recognizes that natural gas is a transitional fuel that will ultimately need to be replaced by renewable
energy sources. Nevertheless, gaseous fuels will remain essential not only during the transition period but
also in the long term. While natural gas is expected to serve as a bridging fuel in the near and medium term,
biomethane and hydrogen are anticipated to gradually assume this role in the future. At present and over
the medium term, natural gas offers several clear advantages: it provides a reliable backup for intermittent
renewable sources such as wind and solar, supports the rapid phase-out of coal in both the energy sector
and various industries, and contributes to energy security and system reliability - factors that are particularly
critical during the transition to a new energy system. Looking ahead, existing gas infrastructure and demand
can be adapted to accommodate low-carbon gases, including biomethane and hydrogen, enabling a gradual
transition toward renewable and low-emission energy carriers. Even in a net-zero context, fossil methane
may retain a limited role, potentially in combination with carbon capture, utilization, and storage (CCUS)
technologies.
Providing adequate infrastructure for the distribution and storage of a diversified gas mix will require
refurbishing existing assets wherever possible, alongside selective investment in new infrastructure to close
remaining gaps. EPIF’s assets are well positioned to support the future transit, distribution and potentially
storage of hydrogen. Several projects are already underway to assess compatibility with hydrogen and other
renewable gases. The transition pathways for individual segments are described in the following section.
Gas distribution
As the monopoly distributor of natural gas in Slovakia, our company plays a pivotal role in ensuring a
reliable gas supply. Natural gas serves as an important transitional fuel, supporting the energy system while
renewable and low-carbon energy sources are being deployed. Recognizing the need to eventually replace
natural gas with low-carbon alternatives, our decarbonization efforts are focused on two key areas: (i)
reducing methane leakage and (ii) preparing for the distribution of hydrogen. Distribution of hydrogen can
be instrumental in decarbonizing various hard-to-abate sectors such as steel manufacturing,
dispatchable power generation, or fertilizer production.
A crucial step in achieving both goals is the ongoing replacement of older steel pipes with those made of
polyethylene. This material possesses superior permeability characteristics, making it suitable for the
potential distribution of pure hydrogen. In the interim period, when fossil natural gas is still being
distributed, polyethylene pipes serve as a reliable barrier against methane leakage.
Apart from hydrogen, biomethane offers a viable long-term solution. In Slovakia, the first biomethane
station was connected to the grid in 2022, with numerous projects set to follow in the coming years.
Biomethane is a sustainable alternative that can be locally produced from biowaste, manure, and
agricultural residues. Since it shares the same properties as natural gas, it can be integrated into the existing
infrastructure without modifications.
Gas midstream – transit and storage
In order to address significant disparities between projected hydrogen production and consumption across
various regions in Europe, the establishment of a robust hydrogen transit and storage infrastructure
is imperative. This infrastructure should not only connect regions within Europe but also neighboring
regions with abundant hydrogen potential, such as North Africa or Ukraine. A robust gas infrastructure will
Annual Financial Report for the year 2025 – Section VIII.
Sustainability – Management Review
6
ensure the security of supply for future hydrogen off-takers, as well as the security of demand for potential
investors in hydrogen production. The cost of refurbishment of existing infrastructure is relatively modest
compared to the development of a new dedicated pipeline. Therefore, the utilization of existing gas
infrastructure will be crucial to ensure the interconnectedness of the energy markets at acceptable costs.
Eustream is preparing its infrastructure for hydrogen integration in line with EU regulations, which require
gas transmission operators to accept flows with up to 2% hydrogen at interconnection points. Necessary
adjustments consist of upgrading metering equipment and other network components. With its strategic
pipeline system, eustream is well positioned to facilitate pure hydrogen transit alongside methane in the
future, ensuring safe and efficient transport. Recognized as an Important Project of Common European
Interest (IPCEI) in February 2024, eustream’s hydrogen transmission initiative aims to support European
clean hydrogen supply and Slovak industry decarbonization, with IPCEI status unlocking access to national
and EU funding. In the gas storage sector, Nafta’s Project Henri, also an IPCEI initiative, is focused on
identifying suitable sites for hydrogen storage and assessing the maximum achievable concentration within
porous geological structures.
To support EPIF’s carbon neutrality goals, gas compressors are planned to be partially electrified, replacing
natural gas. Within both segments, EPIF subsidiaries have made significant progress in reducing methane
leakage, implementing best practices such as minimizing gas venting during maintenance, using mobile
pumping compressors for gas transfer, and adopting robust Leak Detection and Repair (LDAR) program to
identify and eliminate methane leaks.
District heating
As an operator of critical district heating infrastructure in the Czech Republic, EPIF enables the distribution
of heat produced in highly efficient combined heat and power (CHP) mode. Cogeneration allows the
adjacent heating plants not only to provide reliable heat supplies for more than 150,000 end consumers in
major regional cities, but also to deliver dispatchable electricity generation that contributes significantly to
grid stability. The plants (two of which were divested by EPIF in March 2025 but remain within the wider
EP Group) are primarily lignite-based, being supplemented by biomass and municipal waste as
complementary sources. In an increasingly decarbonised world, we anticipate that the flexibility and
reliability of these assets will become even more vital for grid stability, owing to the rising share of
intermittent renewable sources in the European energy mix. During the transitional period, we envision that
the plants will primarily rely on natural gas, while concurrently ensuring that the technology is suitably
equipped to combust a proportion of renewable gases. This proportion is projected to progressively
increase, with the potential to ultimately reach 100%. EPIF is committed to using solely renewable gases
in the gas turbines for heat and power generation by 2035, in line with the EU Taxonomy criteria, subject
to commercial availability of these gases (hydrogen, biomethane, synthetic methane) and adequate
infrastructure in place for their distribution. As EPIF’s influence on the development of the market with
renewable gases is peripheral, EPIF’s commitment needs to be perceived as a commitment to technical
readiness to combust renewable gases. EPIF has contracted technologies readily available to combust a
certain proportion of hydrogen from the outset (ca 15% by volume), with the optionality the contracts with
gas turbine manufacturers to increase the share up to 100%.
Power distribution
EPIF, through its subsidiary Stredoslovenská distribučná a.s. (SSD), operates the electricity distribution
network in central Slovakia. This network is an integral part of the European interconnected system, which
aligns with the EU Taxonomy's substantial contribution criteria. The sustainability aspect of this operation
is further supported by the significant presence of low-carbon sources connected to the network. By
Annual Financial Report for the year 2025 – Section VIII.
Sustainability – Management Review
7
facilitating the expansion of renewable power generation sources, SSD plays a vital role in helping the EU
achieve its decarbonization goals.
Annual Financial Report for the year 2025 – Section VIII.
Sustainability – Management Review
8
EPIF and its business
1.4
Timeline
Annual Financial Report for the year 2025 – Section VIII.
Sustainability – Management Review
9
1.5
Group structure and geographical presence
Annual Financial Report for the year 2025 – Section VIII.
Sustainability – Management Review
10
1.6
Value chain
Annual Financial Report for the year 2025 – Section VIII.
Sustainability – Management Review
11
1.7
Business segments overview
EPIF has principal operations in the Slovak Republic and the Czech Republic, while being also present in
Germany.
We
focus on four main business segments: gas transmission, gas and power distribution
(including their retail supply), gas storage, and heat infrastructure.
Gas transmission
EPIF’s subsidiary eustream operates a gas transit pipeline in Slovakia. Although the transported volumes
of gas have declined in recent years, eustream continues to play a critical role in ensuring regional security
of supply. The corridor’s strategic location allows it to deliver gas to both Central and Southern European
markets, regardless of the gas source or flow pattern, thanks to its connections with all neighboring
countries. Eustream is currently adapting its network to align with the EU’s 2% hydrogen blend requirement
for gas TSOs. With four to five parallel pipelines in operation, the system is well-equipped to transport
methane and pure hydrogen simultaneously in dedicated lines. As a member of initiatives such as the
European Clean Hydrogen Alliance and the European Hydrogen Backbone, eustream actively supports
Europe-wide hydrogen adoption.
Gas and power distribution
EPIF operates the gas distribution network in Slovakia via its subsidiary SPP – distribúcia (“SPPD”)
delivering gas to more than 1.5 million offtake points, accounting for over 98% of the gas volume
distributed in the country. Over 94% of all inhabitants of the Slovak Republic have access to natural gas,
making Slovakia second in Europe in terms of gas network density. SPPD also plays a crucial role in
transitioning from natural gas to hydrogen, preparing the network gradually for hydrogen distribution
through the replacement of the older steel pipes with hydrogen-ready polyethylene material. Concurrently,
SPPD facilitates the connection of the first biomethane stations into its network and operates a registry of
renewable gases to connect biomethane producers and offtakers.
EPIF’s subsidiary Stredoslovenská distribučná (“SSD”) operates the power distribution network in central
Slovakia, delivering electricity to nearly 800 thousand offtake points. More than 90% of the capacity
connected to our distribution network in recent years have been renewable energy sources, mainly solar
installations. To accommodate an increasing share of intermittent decentralized renewables, SSD needs to
continuously invest to enhance the resilience of the network. SSD also enables end consumers to actively
influence their consumption and achieve energy savings through the installation of smart meters.
Besides operating physical infrastructure, EPIF subsidiaries are also engaged in retail supply of electricity
and gas to end consumers.
Czech Republic,
EP Energy Trading and Dobrá Energie serve more than
125,000 electricity customers and 50,000 gas customers. In Slovakia, Slovenská energetika supplies
electricity to nearly 700,000 customers and gas to nearly 60,000 customers.
Gas storage
EPIF operates more than 61.5 TWh of gas storage capacities in Slovakia, Czech Republic, and Germany.
EPIF subsidiaries have extensive experience in underground gas storage, with limited involvement in the
exploration and production of hydrocarbons. The storage facilities in Slovakia and the Czech Republic are
connected to the Slovak distribution grid, the gas transit system of eustream and the Virtual Trading Point
in Austria. Via its subsidiary Nafta, EPIF is exploring the feasibility of storing hydrogen blended with
natural gas. Project Henri by Nafta is one of the first Important Projects of Common European Interest
Annual Financial Report for the year 2025 – Section VIII.
Sustainability – Management Review
12
(IPCEI) in the hydrogen area. Nafta seeks to identify appropriate locations for storing hydrogen mixed with
natural gas and the maximum possible concentration that could be stored in a porous geological structure.
Heat infrastructure
EPIF is an important operator of district heating infrastructure supplying heat to more than 150,000 end
consumers in three regions in the Czech Republic. Heat delivered to the heat networks is produced by
adjacent cogeneration heating plants which are operated - or until recently were operated - by EPIF. In
March 2025, EPIF divested two heating plants operated by its subsidiaries Elektrárny Opatovice and United
Energy to EP Heat & Power within the broader EP Group. Following this transaction, EPIF will focus
exclusively on heat distribution in the respective regions. EPIF continues to operate cogeneration heating
plants in Pilsen. EPIF has been actively transitioning its heating plants away from lignite toward a more
diversified energy mix centered on hydrogen-ready combined-cycle gas turbine (CCGT) units, waste-to-
energy facilities, and existing biomass assets, with the potential addition of other technologies such as
electric boilers or heat pumps.
IX. Independent Auditor´s Report to the Sustainability Statement
Deloitte Audit s.r.o. Churchill I Italská 2581/67 120 00 Prague 2 – Vinohrady Czech Republic Tel: +420 246 042 500 DeloitteCZ@deloitteCE.com www.deloitte.cz Registered by the Municipal Court in Prague, Section C, File 24349 ID. No.:49620592 Tax ID. No.: CZ49620592 | |
INDEPENDENT AUDITOR’S LIMITED ASSURANCE REPORT ON THE
CONSOLIDATED SUSTAINABILITY STATEMENT OF
EP INFRASTRUCTURE, A.S.
To the Shareholders of
EP Infrastructure, a.s.
Having its registered office at: Pařížská 130/26, Josefov, 110 00 Prague 1
We have conducted a limited assurance engagement on the Consolidated Sustainability Statement
of EP Infrastructure, a.s.
(the “Company”) and its subsidiaries (the “Group”) included in section Consolidated sustainability
statement of the Consolidated annual report including the information incorporated in the Consolidated Sustainability
Statement by reference, as disclosed in section BP-2 – Disclosures in relation to specific circumstances
(the “Consolidated
Sustainability Statement”) as at 31 December 2025 and for the year then ended.
Identification of Applicable Criteria
The Consolidated Sustainability Statement was prepared by the Board of Directors of the Company in order to satisfy the
requirements of Section 32k of the Czech Accounting Act implementing 29a of the EU Directive 2013/34/EU, including:
●
Compliance with the European Sustainability Reporting Standards introduced by Commission Delegated
Regulation (EU) of 31 July 2023 supplementing Directive 2013/34/EU of the European Parliament and of the
Council (“ESRS”), including that the process carried out by the Company to identify the information reported in
the Consolidated Sustainability Statement (the “Process”) is in accordance with the description set out in note
IRO-1 – Description of the processes to identify and assess material IROs ; and
●
Compliance of the disclosures in subsection EU Taxonomy assessment within Environmental section
of the
Consolidated Sustainability Statement with Article 8 of EU Regulation 2020/852 (the “Taxonomy Regulation”).
Inherent Limitations in Preparing the Consolidated Sustainability Statement
The criteria, nature of the Consolidated Sustainability Statement, and absence of long-standing established authoritative
guidance, standard applications and reporting practices allow for different, but acceptable, measurement methodologies to
be adopted which may result in variances between entities. The adopted measurement methodologies may also impact the
comparability of sustainability matters reported by different organizations and from year to year within an organization as
methodologies evolve.
In reporting forward looking information in accordance with ESRS, management of the Group is required to prepare the
forward-looking information on the basis of disclosed assumptions about events that may occur in the future and possible
future actions by the Group. Actual outcome is likely to be different since anticipated events frequently do not occur as
expected.
In determining the disclosures in the Consolidated Sustainability Statement, management of the Group interprets undefined
legal and other terms. Undefined legal and other terms may be interpreted differently, including the legal conformity of their
interpretation and, accordingly, are subject to uncertainties.
We draw your attention to the following specific limitations discussed in section ESRS 2 – General disclosures of the
Consolidated Sustainability statement:
●
Environmental reporting as applied by all companies includes information based on climate-related scenarios that are
subject to inherent uncertainty because of incomplete scientific and economic knowledge about the likelihood, timing,
or effect of possible future physical and transitional climate-related impacts. Consolidated Sustainability Statement
contains also forward-looking statements on strategy, investment plans and future management performance. Such
statements are, by their nature, subject to risk and uncertainty as they depend on whether future events and
developments take place. Actual results could therefore differ from those announced due to various factors, including:
the market outlook, supply and prices, overall macroeconomic conditions, geopolitical factors such as international
tensions and socio-political instability, the impact of energy and environmental legislation, successful development and
implementation of new technologies, changes in stakeholder expectations and other changes in business conditions. For
the avoidance of doubt, the scope of our engagement and our responsibilities will not include performing work necessary
for any assurance on the reliability, proper compilation, or accuracy of the prospective information.
●
Any supply chain emissions metrics listed in the Consolidated Sustainability Statement may include information provided
by suppliers and third-party sources. Our procedures do not include obtaining assurance over the information provided
by suppliers or third parties.
Responsibility of the Company’s Board of Directors and Supervisory Board for the Consolidated Sustainability
Statement
The
Board of Directors is responsible for designing and implementing a process to identify the information reported in the
Consolidated Sustainability Statement in accordance with the ESRS and for disclosing this process in
note IRO-1 –
Description of the processes to identify and assess material IROs of the Consolidated Sustainability Statement. This
responsibility includes:
●
Understanding the context in which the Group’s activities and business relationships take place and developing an
understanding of its affected stakeholders;
●
The identification of the actual and potential impacts (both negative and positive) related to sustainability matters, as well
as risks and opportunities that affect, or could reasonably be expected to affect, the entity’s financial position, financial
performance, cash flows, access to finance or cost of capital over the short-, medium-, or long-term;
●
The assessment of the materiality of the identified impacts, risks and opportunities related to sustainability matters by
selecting and applying appropriate thresholds; and
●
Making assumptions that are reasonable in the circumstances.
The
Board of Directors is further responsible for the preparation of the Consolidated Sustainability Statement, in accordance
with Section 32k of the Czech Accounting Act implementing 29(a) of the EU Directive 2013/34/EU, including:
●
Compliance with the ESRS;
●
Preparing the disclosures in subsection EU Taxonomy assessment within Environmental section
of the Consolidated
Sustainability Statement, in compliance with Article 8 of Taxonomy Regulation;
●
Designing, implementing and maintaining such internal controls that management determines are necessary to enable
the preparation of the Consolidated Sustainability Statement that is free from material misstatement, whether due to
fraud or error; and
●
The selection and application of appropriate sustainability reporting methods and making assumptions and estimates
about individual sustainability disclosures that are reasonable in the circumstances.
The Supervisory Board is responsible for overseeing the Group’s sustainability reporting process.
Our Responsibility
We conducted our limited assurance engagement in accordance with International Standard on Assurance Engagements
(ISAE) 3000 (Revised), Assurance Engagements other than Audits or Reviews of Historical Financial Information.
The procedures performed in a limited assurance engagement vary in nature and timing from, and are less in extent than for,
a reasonable assurance engagement. Consequently, the level of assurance obtained in a limited assurance engagement is
substantially lower than the assurance that would have been obtained had a reasonable assurance engagement been
performed.
Our objectives are to plan and perform the assurance engagement to obtain limited assurance about whether the
Consolidated Sustainability Statement is free from material misstatement, whether due to fraud or error, and to issue a
limited assurance report that includes our conclusion. Misstatements can arise from fraud or error and are considered
material if, individually or in the aggregate, they could reasonably be expected to influence decisions of users taken on the
basis of the Consolidated Sustainability Statement as a whole.
As part of a limited assurance engagement in accordance with ISAE 3000 (Revised) we exercise professional judgment and
maintain professional skepticism throughout the engagement.
Our responsibilities in respect of the Consolidated Sustainability Statement, in relation to the Process, include:
●
Obtaining an understanding of the Process but not for the purpose of providing a conclusion on the effectiveness of the Process,
including the outcome of the Process;
●
Designing and performing procedures to evaluate whether the Process is consistent with the Group’s description of its Process,
as disclosed in note IRO-1 – Description of the processes to identify and assess material IROs.
Our other responsibilities in respect of the Consolidated Sustainability Statement include:
●
Obtaining an understanding of the entity’s control environment, processes and information systems relevant to the preparation
of the Consolidated Sustainability Statement but not evaluating the design of particular control activities, obtaining evidence
about their implementation or testing their operating effectiveness;
●
Identifying disclosures where material misstatements are likely to arise, whether due to fraud or error.
●
Designing and performing procedures responsive to disclosures in the Consolidated Sustainability Statement where material
misstatements are likely to arise, whether due to fraud or error. The risk of not detecting a material misstatement resulting from
fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control.
Our Independence and Quality Management
We complied with the applicable independence and other ethical requirements of the Act on Auditors and the Code of Ethics
adopted by the Chamber of Auditors of the Czech Republic (the “Code”). The Code is founded on fundamental principles of
integrity, objectivity, professional competence and due care, confidentiality and professional behaviour.
We applied International Standard on Quality Management (ISQM) 1, Quality Management for Firms that Perform Audits or
Reviews of Financial Statements, or Other Assurance or Related Services Engagements, and accordingly maintain a
comprehensive system of quality control including documented policies and procedures regarding compliance with ethical
requirements, professional standards and applicable legal and regulatory requirements.
Summary of Work Performed
A limited assurance engagement involves performing procedures to obtain evidence about the Consolidated Sustainability
Statement.
The nature, timing and extent of procedures selected depend on professional judgement, including the identification of
disclosures where material misstatements are likely to arise, whether due to fraud or error, in the Consolidated Sustainability
Statement.
In conducting our limited assurance engagement, with respect to the Process, we:
●
Obtained an understanding of the Process by:
o
performing inquiries to understand the sources of the information used by management; and
o
reviewing the Group’s internal documentation of its Process;
●
Evaluated whether the evidence obtained from our procedures about the Process implemented by the Group was consistent
with the description of the Process set out in note IRO-1 – Description of the processes to identify and assess material IROs.
In conducting our limited assurance engagement, with respect to the Consolidated Sustainability Statement, we:
●
Obtained an understanding of the Group’s reporting processes relevant to the preparation of its Consolidated Sustainability
Statement by performing inquiries to understand the Group’s control environment, processes and information systems relevant
to the preparation of the consolidated sustainability statements;
●
Evaluated whether material information identified by the Process to identify the information reported in the Consolidated
Sustainability Statement is included in the Consolidated Sustainability Statement;
●
Evaluated whether the structure and the presentation of the Consolidated Sustainability Statement is in accordance with the
ESRS;
●
Performed inquires of relevant personnel and analytical procedures on selected disclosures in the Consolidated Sustainability
Statement;
●
Performed substantive assurance procedures based on a sample basis on selected disclosures in the Consolidated Sustainability
Statement;
●
Obtained evidence on the methods for developing material estimates and forward-looking information and on how these
methods were applied;
●
Obtained an understanding of the process to identify taxonomy-eligible and taxonomy-aligned economic activities and the
corresponding disclosures in the Consolidated Sustainability Statement;
●
Conducted site visits at selected locations to test the application of the Company's reporting procedures.
We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our conclusion.
Limited Assurance Conclusion
Based on the procedures we have performed and the evidence we have obtained, nothing has come to our attention that
causes us to believe that the Consolidated Sustainability Statement is not prepared, in all material respects, in accordance
with Section 32k of the Czech Accounting Act implementing 29(a) of the EU Directive 2013/34/EU, including:
●
Compliance with the European Sustainability Reporting Standards (ESRS), including that the process carried out by the
Group to identify the information reported in the Consolidated Sustainability Statement is in accordance with the
description set out in note IRO-1 – Description of the processes to identify and assess material IROs ; and
●
Compliance of the disclosures in
subsection EU Taxonomy assessment within Environmental section
of the
Consolidated Sustainability Statement with Article 8 of the Taxonomy Regulation.
Other Matter
Our assurance engagement does not extend to information in respect of periods before year 2024 presented in the
Consolidated Sustainability Statement.
In Prague on 19 March 2026
Audit firm: | Statutory auditor: |
Deloitte Audit s.r.o. registration no. 079 | David Batal registration no. 2147 |
X. Consolidated Sustainability Statement
1
Consolidated Sustainability Statement
2
Table of Contents
1 ESRS 2 – General disclosures ................................................................ ............................................... 7
BP-1 – General basis for preparation of sustainability statement ................................................................ ....... 8
BP-2 – Disclosures in relation to specific circumstances ................................ ................................................. 11
Information about indirect metric sources ................................................................ .............................. 12
Reporting errors from prior reports ................................................................ ........................................ 13
Incorporation by reference ................................................................ ..................................................... 13
GOV-1 – The role of the administrative, management and supervisory bodies ................................ ............... 14
Governance of sustainability reporting ................................ ................................................................ .. 14
Identity and composition of the Board ................................................................ ................................... 16
GOV-2 – Information provided to, and sustainability matters addressed by, our administrative, management
and supervisory bodies ................................................................ ........................................................... 17
GOV-3 – Integration of sustainability-related performance in incentive schemes ................................ ........... 17
GOV-4 – Statement on due diligence ................................................................ ............................................... 18
Our due diligence process and approach to preparing for CSDDD ........................................................ 18
Embedding due diligence in governance, strategy and business model ................................................. 18
Engaging with affected stakeholders in all key steps of the due diligence process ................................ 19
Identifying and assessing adverse impacts ................................................................ ............................. 19
Taking actions to address adverse impacts ................................................................ ............................. 20
Tracking the effectiveness of measures put in place and communicating them ..................................... 20
GOV-5 – Risk management and internal controls over sustainability reporting ................................ .............. 21
SBM-1 – Strategy, business model and value chain ......................................................................................... 21
The resilience of our strategy ................................................................ ................................................. 23
Explanation of our value chain ................................................................ ............................................... 24
SBM-2 – Interests and views of stakeholders in strategy and business model ................................ ................. 27
Integration of stakeholder engagement into company strategy and business model .............................. 30
Value creation for stakeholders ................................................................ .............................................. 30
SBM-3 – Material IROs and their interaction with strategy and business model ............................................. 31
IRO-1 – Description of the processes to identify and assess material IROs ..................................................... 41
Our DMA approach ................................................................ ................................................................ 41
Scoring methodology ................................................................ ............................................................. 43
Integration of impact and risk assessment into EPIFs overall risk management process, and general
management process: ................................................................................................ ............... 45
Current effects on the business model ................................................................ .................................... 45
Resilience against material IROs ................................ ................................................................ ........... 45
IRO-2 – Disclosure Requirements in ESRS covered by the undertaking’s sustainability statement ................ 46
Policies MDR-P – Policies adopted to manage material sustainability matters ................................................ 46
Current policy objectives ................................ ................................................................ ....................... 46
Implementation and monitoring ................................................................ ............................................. 46
Policy Overview ................................................................ ................................................................ ..... 48
Commitment to policy refinement ................................ ................................................................ ......... 55
Policy review and update process ................................ ................................................................ .......... 55
Commitment to continuous improvement ................................................................ .............................. 56
3
Actions MDR-
A
– Actions and resources in relation to material sustainability matters ................................ .. 56
Expected outcomes ................................................................ ................................................................ . 56
Metrics MDR-M – Metrics in relation to sustainability matters ................................................................ ....... 56
Targets MDR-T – Tracking effectiveness of policies and actions through targets ........................................... 57
Key targets related to sustainability ................................ ................................................................ ....... 57
2 ESRS E1- Climate change ................................................................ ................................................... 60
E1.GOV-3 - Integration of sustainability-related performance in incentive schemes ...................................... 60
E1-1 – EPIF’s Climate transition Plan ................................................................ .............................................. 60
EPIF’s exposure to locked-in GHGs and decarbonization measures ................................................................ 62
Coal-fired generation................................ ................................................................ .............................. 62
Gas-fired generation ................................................................ ............................................................... 62
Gas infrastructure ................................................................................................ ................................... 62
EU Taxonomy-aligned activities and Capex related to fossil fuels ........................................................ 62
Green finance framework ................................................................ ....................................................... 63
Governance of the climate transition plan ................................................................ .............................. 64
EPIF’s progress update in implementing the transition plan ................................................................ .. 64
E1.SBM-3 Material R&Os and their interaction with strategy and business model ......................................... 65
Resilience analysis methodology ................................................................ ........................................... 65
Implications of prioritized R&Os for EPIF’s strategy and business model................................ ............ 66
E1.IRO-1 Description of the processes to identify and assess material climate-related IROs. ......................... 75
Impacts identification and assessment................................ ................................................................ .... 75
Risk and opportunities identification and assessment ................................................................ ............ 75
E1-2 – Climate-related policies ................................ ................................................................ ........................ 80
E1-3 – Climate-related actions................................ ................................................................ .......................... 80
Conversion of lignite-based combined heat and power plants ............................................................... 81
Gas infrastructure GHG emissions reduction ................................................................ ......................... 82
Other direct Scope 1 and/or Scope 2 emissions reduction ................................ ..................................... 83
Renewable gas adoption ................................................................ ......................................................... 83
E1-4 – Climate-related targets ................................................................ .......................................................... 84
CO2 emissions reduction target (Scope 1 & 2) ................................................................ ...................... 86
Methane reduction target ................................................................ ........................................................ 86
Carbon neutrality target (Scope 1 &2) ................................ ................................................................ ... 86
Net zero target ................................................................................................ ........................................ 86
Basis for target setting ................................................................ ............................................................ 87
E1-5 – Energy consumption and mix ................................................................ ................................................ 87
E1-6 – Gross Scopes 1, 2, 3 and total GHG emissions ................................................................ ..................... 88
E1-9 – Financial effects from climate-related risks and opportunities ............................................................. 92
Methods 92
Results 99
3 EU Taxonomy assessment ................................................................ ................................................. 104
Application by EPIF ................................................................ ................................................................ ....... 105
Minimum safeguards ................................................................ ................................................................ ...... 105
EU Taxonomy alignment assessment ................................................................ ............................................. 107
4
Eligible activities ................................................................ ................................................................ .. 107
Calculation methodology ................................................................ ................................................................ 118
Results of the Taxonomy assessment for 2025 ................................................................ ............................... 120
Commentary on the results of the Taxonomy assessment ................................................................ .............. 131
4 ESRS E2 – Pollution ................................................................ .......................................................... 132
E2.IRO-1 Identifying Pollution-related IROs ................................................................ ................................. 132
E2-1 – Pollution-related policies ................................ ................................................................ .................... 132
E2-2 – Pollution-related actions ................................................................ ...................................................... 133
E2-3 – Pollution-related targets ................................................................ ...................................................... 134
E2-4 – Pollution of air ................................ ................................................................ .................................... 134
5 ESRS E3 - Water resources ................................................................ ............................................... 136
E3.IRO-1 Identifying Water -related IROs ................................................................ ...................................... 136
E3-1 – Water-related policies ................................................................ ......................................................... 136
E3-2 – Water-related actions ................................................................ .......................................................... 137
Monitoring water risks and impacts ................................................................ ..................................... 137
Water management ................................................................ ............................................................... 138
E3-3 – Water-related targets ................................................................................................ ........................... 138
E3-4 – Water consumption ................................ ................................................................ ............................. 138
6 ESRS E4 - Biodiversity and ecosystems ................................................................ ........................... 140
E4-1 –Transition plan and consideration of biodiversity and ecosystems in strategy and business model .... 140
E4.SBM-3 Material IROs and their interaction with strategy and business model ......................................... 140
E4.IRO-1 Identifying biodiversity and ecosystem-related IROs ................................ .................................... 140
E4-2 – Biodiversity-related policies ................................ ................................................................ ............... 142
E4-3 – Biodiversity-related actions ................................ ................................................................ ................ 142
Reclamation and restoration of EPIF sites ................................ ........................................................... 142
Biodiversity actions ................................................................ .............................................................. 142
E4-4 – Biodiversity-related targets and metrics ................................................................ .............................. 143
7 ESRS E5 - Waste and by-products ................................................................ ................................... 144
E5.IRO-1 Identifying waste and by-products-related IROs ............................................................................ 144
E5-1 – Waste and by-products-related Policies ................................................................ .............................. 144
E5-2 – Waste and by-products-related Actions ................................ .............................................................. 145
Tackling waste management ................................ ................................................................ ................ 145
By-product management ................................................................ ...................................................... 146
E5-3 – Waste and by-products-related targets ................................................................ ................................ 146
E5-5 – Waste and by-products metrics ................................................................ ........................................... 147
8 ESRS S1 - Own workforce ................................................................ ................................................ 150
S1.SBM-2 Interests and views of stakeholders ................................................................ ............................... 150
S1.SBM-3 Material IROs and their interaction with strategy and business model ......................................... 150
S1-1 – Own workforce-related policies ................................................................ .......................................... 151
S1-2 – Processes for engaging with own workforce and workers’ representatives about impacts ................. 152
S1-3 – Processes to remediate negative impacts and channels for own workforce to raise concerns ............. 153
S1-4 – Own workforce-related actions ................................................................ ........................................... 153
5
Actions related to diversity ................................ ................................................................ .................. 153
Actions related to training and skills development ................................ .............................................. 154
Actions related to social dialogue, freedom of association and collective bargaining ......................... 155
Actions related to secure employment ................................ ................................................................ . 156
Actions related to measures against violence and harassment in the workplace .................................. 156
Actions related to health and safety ................................ ................................................................ ..... 156
S1-5 – Own workforce-related targets ................................................................ ............................................ 157
S1-6 – Characteristics of EPIF’s employees ................................................................ ................................... 157
S1-7 – Characteristics of EPIF’s non-employee workers ................................................................ ............... 160
S1-8 – Collective bargaining coverage and social dialogue ................................ ........................................... 160
S1-9 – Diversity metrics ................................................................ ................................................................ . 160
S1-13 – Training and skills development metrics ................................................................ ........................... 161
S1-14 – Health and safety metrics ................................................................ .................................................. 162
S1-17 – Incidents, complaints and severe human rights impacts ................................................................ .... 163
9 ESRS S2 - Workers in the value chain ................................................................ ............................. 164
S2.SBM-2 Interests and views of stakeholders ................................................................ ............................... 164
S2.SBM-3 Material IROs and their interaction with strategy and business model ......................................... 164
S2-1 – Value -chain workers-related policies ................................................................ .................................. 165
S2-2 – Engaging with value chain workers about impacts ................................ ............................................. 166
S2-3 – Processes to remediate negative impacts and channels for value chain workers to raise concerns ..... 166
S2-4 – Value -chain workers-related actions ................................................................ ................................... 166
S2-5 – Value -chain workers-related targets ................................................................ .................................... 167
10 ESRS S3 - Affected communities ................................................................ ...................................... 168
S3.SBM-2 Interests and views of stakeholders ................................................................ ............................... 168
S3.SBM-3 Material IROs and their interaction with strategy and business model ......................................... 168
S3-1 – Affected community-related policies ................................ ................................................................ .. 169
S3-2 – Engaging with affected communities about impacts ................................................................ ........... 170
S3-3 – Processes to remediate negative impacts and channels for affected communities to raise concerns ... 170
S3-4 – Affected community-related actions ................................ ................................................................ ... 170
Ensuring affected communities are able to freely express concerns ................................ .................... 170
S3-5 – Affected community-related targets ................................................................ .................................... 173
11 ESRS S4 - Consumers and end-users ............................................................................................... 174
S4.SBM-2 Interests and views of stakeholders ................................................................ ............................... 174
S4.SBM-3 Material IROs and their interaction with strategy and business model ......................................... 175
S4-1 – Consumer-related policies ................................................................ ................................................... 175
S4-2 – Engaging with consumers about impacts ................................ ............................................................ 176
S4-3 – Processes to remediate negative impacts and channels for consumers to raise concerns .................... 176
S4-4 – Consumer-related actions ................................................................ .................................................... 177
S4-5 – Consumer-related targets ................................................................ ..................................................... 179
12 ESRS G1 - Business conduct ................................................................ ............................................. 181
G1.GOV-1 The role of the administrative, supervisory and management bodies .......................................... 181
G1.IRO-1 Identifying business conduct related IROs ................................ .................................................... 182
6
G1-1 – Business conduct policies and corporate culture ................................ ................................................ 182
Corporate Culture ................................................................ ................................................................ . 182
Reporting of serious concerns and whistleblowers ................................ .............................................. 183
G1-2 – Management of relationships with suppliers ................................ ...................................................... 183
G1-3 – Procedures to address corruption or bribery ................................................................ ....................... 184
G1-4 – Incidents of corruption or bribery ................................................................................................ ....... 185
G1-5 – Political influence and lobbying activities .......................................................................................... 186
13 Annex ................................................................ ................................................................ .................. 187
ESRS INDEX ................................................................ ................................................................ ................. 187
ESRS 2 IRO-2 Disclosure Requirements complied with in preparing the sustainability statement,
following the outcome of the materiality assessment. ................................ ........................... 187
ESRS 2 IRO-2 - List of datapoints in cross-cutting and topical standards that derive from other EU
legislation ................................................................ ............................................................... 193
Glossary of terms ................................................................ ................................................................ ............ 197
Supplementary tables ................................................................ ................................................................ ...... 199
ESRS Environment ................................................................ .............................................................. 199
ESRS Social ................................................................ ................................................................ ......... 201
EPIF specific metrics ................................................................ ........................................................... 204
7
1 ESRS 2 – General disclosures
In this report, we provide sustainability-related disclosures aligned with regulatory reporting requirements,
including the
Corporate Sustainability Reporting Directive (CSRD).
To ensure clarity and manage
expectations, the following interpretive context disclaimers apply:
1.
The Consolidated Sustainability Statement contains forward-looking statements on strategy,
investment plans and future management performance. Such statements are, by their nature, subject
to risk and uncertainty as they depend on whether future events and developments take place.
Actual results could therefore differ from those announced due to various factors, including: the
market outlook, supply and prices, overall macroeconomic conditions, geopolitical factors such as
international tensions and socio-political instability, the impact of energy and environmental
legislation, successful development and implementation of new technologies, changes in
stakeholder expectations and other changes in business conditions.
2.
While the term "material" is used in various contexts throughout this report, it should not be
assumed that every topic, disclosure, or statement has been assessed and confirmed as material to
the company through our materiality assessment framework.
3.
Some CSRD-related disclosure topics inherently involve elements of uncertainty. Factors such as
evolving regulatory interpretations, incomplete data, and assumptions used in assessments may
impact the accuracy or completeness of some statements.
4.
Achieving deep insight into our value chain is an ongoing effort. Due to its complexity, certain
information, particularly regarding upstream and downstream activities, is partly based on
estimations.
5.
Any supply chain emissions metrics listed in the Consolidated Sustainability Statement may
include information provided by suppliers and third-party sources.
6.
As a holding company, we respect the operational independence of our subsidiaries and operating
companies. While group-level expectations are set, some disclosures may reflect the diverse
contexts, capabilities, and approaches of individual entities.
7.
Whilst the data included in this report has been prepared with due care; it is subject to potential
inaccuracies or gaps due to data collection complexities. Should any flaws or errors come to our
attention, we will take appropriate corrective action and update disclosures as necessary.
8.
Many of the assessments and disclosures provided in this report are qualitative in nature and are
based on our existing knowledge and information available at the time of reporting.
9.
Mandatory sustainability reporting is an evolving discipline. We are committed to enhancing our
reporting practices in response to emerging standards, stakeholder feedback, improved
methodologies, and emerging best practice.
This statement may require updates or revision of disclosures as new information becomes available or as
sustainability standards, requirements, and disclosures by companies in our value chain and sector mature.
8
BP-1 – General basis for preparation of sustainability statement
Despite the evolving regulatory landscape and increasing complexity and uncertainty of sustainability
reporting requirements, EPIF remains focused on the issues most critical to our business resilience and
stakeholder value. Our sustainability strategy is anchored in materiality, ensuring that our efforts and
disclosures reflect the most significant impacts, risks, and opportunities.
This is the eighth annual sustainability statement (hereinafter referred to as the "Report") published by the
EPIF Group. EPIF prepared its sustainability reports for the years 2018-2023 on a voluntary basis in
accordance with the GRI Standards
European Sustainability Reporting Standards (“ESRS”). The aim of this report is to highlight and address
the material environmental, social, and governance aspects of our operations as determined in our double
materiality assessment (“DMA”). This report covers period from 1st January 2025 to 31st December 2025
(FY25).
EPIF's scope of consolidation for the sustainability statement aligns with the scope used for the preparation
of financial statements for consistent reporting across financial and non-financial disclosures. This
consolidated report is prepared to satisfy the requirements of Article 32k of the Czech Accounting Act
implementing
Article 29a
Directive 2013/34/EU
(the
Accounting Directive
), and the amendments made
to this directive detailed under
Directive (EU) 2022/2464
the Corporate Sustainability Reporting Directive
(CSRD))
. EPIF Group constitutes a large undertaking which has its bonds admitted to trading on a regulated
market in the European Union, thereby making the Company subject to the CSRD. The sustainability
statement provides broader information than the financial statements by including information about
impacts, risks, and opportunities (IROs) arising from our own operations and our upstream and downstream
value chain. EPIF has not made use of the exemption provided under
Article 29a (3) of Directive
2013/34/EU
Directive (EU) 2022/2464
to omit information relating to impending developments or matters in the course of negotiation.
In February 2025, the European Commission released a new package of proposals to ease the regulatory
burden and streamline the reporting requirements (Omnibus I package). In July 2025, the European
Commission adopted a “quick fix” delegated act extending the possibility for Wave one reporting entities
to omit certain information that was originally permitted under phase-in provisions only for the 2024
reporting year, also to the reporting years 2025 and 2026. These phase-in provisions primarily related to
anticipated financial effects of certain sustainability‑related risks. The delegated act also extends to all
Wave one companies the phase-in provisions under
ESRS S2
(Workers in the value chain),
ESRS S3
ESRS S4
which previously applied only to companies with up to 750 employees. Similarly to last year, we opted to
use the relevant phase-in provisions listed in ESRS 1 Appendix C which were extended to the reporting
years 2025 and 2026 by the “quick fix” delegated act. The data points omitted due to the phase-in provisions
are labelled accordingly in the ESRS Index under
For purposes of this report, “
own operations
” refers to entities and activities within our control. In alignment
with the International Financial Reporting Standards (IFRS) requirements for the preparation and
presentation of consolidated financial statements, and to ensure the alignment with our own financial
statements, operational control is where EPIF has power over the investee, exposure to variable returns
from its involvement with the investee and is able to use its power over the investee to affect the amount of
5
6
7
9
its returns. This approach has been taken when considering all topics except for those relating to climate
change, where we have instead aligned with the Greenhouse Gas (GHG) Protocol. Under the GHG protocol,
operational control is where we have ‘
the ability to direct the operational activities and relationships of the
entity, site, operation or asset
’ and where we have the full authority to introduce and implement the
operating policies. No operations or ventures under the direct control of EPIF have been excluded. We have
not opted to omit information corresponding to intellectual property, know-how, results of innovation,
impending developments or matters in the course of negotiation. All voluntary disclosures that we consider
required for a fair representation have been included.
We have performed a DMA to enable us to evaluate our own operations as well as our upstream and
downstream value chain to identify where material IROs may arise or be concentrated. We evaluated the
environmental and social impacts of our value chain to identify where value chain operations, or services
contribute to significant effects. EPIF cannot account for all possible impacts of a value chain actor under
Application Requirements (AR) 16 of the ESRS sub-sub-topics but instead focused on considering our
contribution to those impacts, and influence to limit or mitigate those impacts directly or indirectly. This
includes determining the extent to which our actions enable, exacerbate, or mitigate the identified impacts
within our value chain.
Our sustainability statement includes disclosures that relate to the upstream and downstream segments of
our value chain, with the extent of coverage based on the materiality of the identified impacts. In cases
where value chain information was potentially material but not readily available, we have made efforts to
obtain it from the corresponding value chain actors or relied on reasonable and supportable information that
was available to us at the time of reporting. Management discretion has been applied to determine the
granularity and materiality of information provided to satisfy the ESRS disclosure requirements.
The disclosures integrate relevant reporting requirements from the EU Taxonomy Regulation, components
of the Corporate Sustainability Due Diligence Directive (CSDDD), and elements of the Global Reporting
Initiative (GRI) where applicable.
The sustainability statement follows the structure set forth in the original version of the ESRS, which applies
to reporting for the year 2025. We acknowledge that the ESRS have been materially revised to simplify the
reporting requirements. EPIF will reflect these amendments in its sustainability statement once they take
effect. Disclosures align with the applicable Disclosure Requirement (DRs) headings of these standards,
detailed within the respective sections of this statement.
All statements on strategies, policies, actions, metrics and targets refer to the consolidated group unless
indicated separately. This is the second year of EPIF reporting based on the ESRS standards. Our reporting
approach is consistent with last year’s report. Where material metrics have been reported previously,
comparative information is presented.
EPIF recognizes that the CSRD and the ESRS are not mere regulatory requirements, but useful tools for
refining our strategic priorities and business model over time. EPIF aims to leverage the insights from our
analysis and reporting to achieve greater alignment between sustainability objectives and corporate strategy,
resilience, competitiveness, and value creation in a rapidly evolving energy landscape in the ways
summarized in the table below.
The contents of this sustainability statement are subject to assurance work performed by an external auditor
providing limited assurance in accordance with International Standard on Assurance Engagements (“ISAE
3000 (Revised)”). The assurance report can be found in section Independent Auditor´s Report to the
Sustainability Statement.
10
Table 1 Sustainability IRO assessment and reporting contributions to strategic and operational business
enablers
Business enablers | Sustainability IRO assessment and reporting contribution |
Enhanced risk management | ● CSRD’s emphasis on double materiality helps us assess the external impacts of our operations (impact materiality) and the financial risks posed by environmental, social, and governance (ESG) factors (financial materiality). |
Opportunity identification | ● Through ESRS-aligned reporting, we can uncover opportunities to expand our portfolio and improve operational efficiencies. |
● Better insights into stakeholder expectations and regulatory trends further enable us to tailor our offerings to meet emerging demands. | |
Performance benchmarking | ● By reporting metrics such as emissions intensity, renewable energy capacity, and diversity in our workforce, we can benchmark our performance against peers and industry standards. |
Driving innovation in our business model | ● Our ESRS-aligned reporting tracks progress toward our net-zero targets, providing actionable insights into the effectiveness of our decarbonization strategies. |
● Enhanced transparency is an enabler for green financing, such as through the Green Finance Framework, which directly supports our initiatives. | |
Value chain optimization | ● The value chain disclosures and insights required under CSRD will help us optimize our operations by identifying inefficiencies and potential risks and impacts in our value chain and to enhance existing measures through a risk-based approach to due diligence of our supply chain. |
Strengthening stakeholder relationships | ● Detailed sustainability reporting fosters stronger relationships with stakeholders by ensuring that our actions align with their expectations through transparency, accountability, and collaboration. |
Informing strategic decisions and policies | ● CSRD and ESRS reporting deliver actionable insights that impact our strategic decisions including capital allocation toward higher impact projects which support the energy transformation of the broader energy system. |
● Insights from our preparatory efforts for disclosures shape internal policies, ensuring alignment with regulatory requirements and global expectations and sustainability standards. | |
Creating long-term value | ● Our ongoing and iterative assessment of sustainability-related impacts, risks, and opportunities ensures that sustainability reporting is not only a compliance exercise but a driver of long- term value creation to pursue improved financial performance, resilience, and competitiveness. |
● Transparent reporting builds confidence among investors and other users of our sustainability statements, including regulators, safeguarding our social license to operate. | |
Monitoring and continuous improvement | ● Continuous monitoring of ESG performance, and annual reporting, allows us to adapt our strategy in response to evolving risks and opportunities and to refine our business model. |
11
Table 2 Disclosures related to non-material topics
Table 3 ESRS Time Horizons
Inclusion of non-material disclosures
In our commitment to transparency and providing meaningful information to our stakeholders, this
sustainability statement includes certain disclosures on topics that, while not assessed as material at the
group level, offer valuable context and insight into our sustainability practices. These disclosures help
provide a more comprehensive understanding of our approach to responsible business conduct, risk
management, and our broader social and environmental impacts. Additionally, some of these disclosures
reflect key performance indicators (KPIs) that we already track as part of our ongoing business operations
and performance management. These non-material KPIs were not subject to external assurance.
Sustainability topic | Reference in sustainability statement | Comment |
Responsible marketing practices and access to quality information for end consumers | S4-4 | EPIF’s direct interaction with end consumers is of predominantly prioritizes techniques importance, although the matters are not treated as material from EPIF Group perspective. |
Management relationships with suppliers including payment practices | G1-2 | Due treatment important management of risks related to workers in the value chain. |
Presentation of historical information not subject to external assurance
This sustainability statement presents historical non-financial indicators (mainly for the period 2021-2023)
which were not subject to assurance at the time of their collection and were prepared in accordance with
the GRI Standards on a voluntary basis. To provide comparative information, EPIF includes this historical
information in the tables along with ESRS-aligned metrics collected for 2024 and 2025. The limited
assurance was performed by the independent auditor solely in respect of the metrics collected for the
financial years 2024 and 2025, while the non-financial indicators for the financial years preceding 2024
were not part of the assurance procedures.
BP-2 – Disclosures in relation to specific circumstances
To facilitate connectivity between sustainability and financial reporting, the time horizons used for all the
assessments within this report follow the ESRS 1 definition of short (One year from the end of the reporting
period), medium (end of the short-term up to 5 years), and long term (more than 5 years), unless indicated
otherwise.
Time horizon | Year | Description |
Short-term | 2026 | One year from the end of the reporting period |
Medium-term | 2027 | End of the short-term up to 5 years |
Long-term | 2032 | More than 5 years |
12
Table 4 Metrics that include value chain data estimated using indirect sources:
The scope of the EPIF Group materially changed in the reporting period. Two subsidiaries engaged in the
operation of cogeneration heating plants, Elektrárny Opatovice and United Energy, one subsidiary sourcing
fuels for these entities, EP Sourcing, and one subsidiary engaged in railway logistics, EP Cargo, were
divested at the end of March 2025. The EPIF report includes figures only for January to March 2025 of
Elektrárny Opatovice and United Energy, while non-financial figures of EP Cargo and EP Sourcing are
omitted due to low materiality. As the cogeneration heating plants materially contributed to the GHG
emissions of EPIF Group, their divestment necessitated a restatement of the base year for the purpose of
GHG emission reduction target.
The calculation approach in respect of these entities was as follows:
●
For employee-related data which are reported as full-year average, full-year KPIs were multiplied
by the proportion of time the companies remained in the Group. Injuries were reported accurately
as actual number of incidents recorded during the respective reporting period.
●
For operating and environmental data, we differentiated between seasonal and non-seasonal KPIs.
For non-seasonal KPIs (e.g. waste), annual data were multiplied by the proportion of months
during which the company was part of the group. For scope 3, category 1, 2, 4 – 7, and 9 (other
categories are not relevant), the approach is in line with this for the non-seasonal KPIs. For
seasonal KPIs (heat and power production and associated fuel consumption, CO
2
emissions, cooling water withdrawn and discharged, by-products from energy production), two
methods were applied. When KPIs were reliably reported on a monthly basis, the values for the
relevant months were used directly. When accurate monthly data were not available, the values
were estimated using the proportion of heat or electricity production during the relevant months as
a proxy to reflect the seasonal production pattern. This proxy method was applied to KPIs such as
cooling water withdrawn and discharged. The same approach as for the seasonal KPIs was used
also for scope 3 categories 3 and 11.
Information about indirect metric sources
All metrics disclosed relate to our own operations and not our value chain unless otherwise stated. The
identification of IROs in our value chain focused on where in the value chain they are most likely to
materialize, and indirect data sources were used to support the process where direct data was unavailable.
The metrics and estimates that utilize value chain data from indirect sources were developed using proxy
data, modeling techniques, and assumptions that align with best practices in the sector where available. The
level of accuracy for the metrics based on value chain data from indirect sources is considered to be within
acceptable margins, given the methodologies applied. Nevertheless, inherent uncertainty remains,
stemming primarily from limitations in data availability, especially regarding value chain impacts, as well
as the need for assumptions in the absence of primary data. There are currently no future planned actions in
place to improve accuracy of metrics that include value chain data estimated using indirect sources.
The following table discloses metrics that include value chain data estimated using indirect sources:
Metrics | Factor | Source | Comments |
Scope 2 emissions – location-based method | Grid emission factors | European Environment Agency (EEA) | Average grid factors reflecting the national fuel mix were used |
13
Table 5: Incorporation by reference
Scope 2 emissions – market-based method | Residual electricity mix factors | Association of Issuing Bodies (AIB) | Residual grid factors reflecting the electricity supply not covered with Guarantees of Origin |
Scope 3 emissions | Well-to-tank factors, cradle-to-gate factors | DEFRA, US Environmental Protection Agency (EPA), Exiobase, GHG Protocol | All assumptions used are summarized in detail under |
Whilst estimates are a fundamental part of forward-looking disclosures, we know that measurement
techniques, dependence on future events, and the quality or availability of data from the value chain are all
contributors to this uncertainty. We have applied reasonable assumptions and estimates to maintain the
usefulness of information that is subject to high levels of uncertainty.
Non-financial KPIs may carry a degree of uncertainty due to the unavailability of final figures at the time
of reporting. This uncertainty can affect metrics such as waste generation, by-product disposal, and other
environmental KPIs. In such cases, preliminary data or estimates informed by expert assessments from
operating companies are used.
Monetary amounts used for historical periods are primarily based on final information supported by audited
financials. No monetary amounts to quantify financial effects from other than climate-related IROs are
presented in the report. The level of uncertainty related to using monetary amounts is therefore limited.
Reporting errors from prior reports
As part of our commitment to transparency and accuracy in sustainability reporting, we have conducted a
review of our reported sustainability-related information for the prior reporting cycles and have performed
the following corrections regardless of the materiality of the topic:
●
Worked hours of own employees (2024):
to a consolidation error. Following the correction the total worked hours changed from 10.0 to 9.3
million and the injury frequency rate from 1.5 to 1.6.
●
Revenue breakdown of fossil fuel-related activities (2024)
: Revenues from supply and trading of
natural gas were overstated due to calculation duplication. Following the correction the revenues
changed from EUR 385 million to EUR 234 million.
Should any additional errors be identified in future reporting cycles, we will disclose them in accordance
with ESRS requirements or EU Taxonomy requirements.
Incorporation by reference
We have incorporated the following by reference from other publicly available reports and documents:
Disclosure covered | Reference |
SBM-1 – Strategy, business model and value chain | Management Review - Business segments overview |
14
This approach ensures consistency and alignment with our broader corporate reporting while avoiding
unnecessary duplication. References to these documents are clearly indicated within the relevant sections
of this sustainability statement, and they remain accessible in their original format.
GOV-1 – The role of the administrative, management and supervisory bodies
Governance of sustainability reporting
The EPIF
sustainability-related issues. This policy defines the overarching sustainability objectives and principles
that guide all our operations, setting a clear direction for sustainable development, within the communities
and the environment in which we operate, and creating value within the economies in which we operate,
while maintaining economic feasibility of the EPIF Group’s businesses.
The Board of Directors (“the Board”) is responsible for the overall management of the company’s business,
which includes ensuring compliance with regulatory reporting obligations, including mandatory
sustainability-related disclosures. The Board of Directors’ record-keeping and accounting mandate includes
the responsibility to ensure that all information required by laws and regulations, including sustainability-
related disclosures, is appropriately prepared and made available to relevant stakeholders.
The administrative, management, and supervisory bodies of EPIF include members with extensive
experience in the energy sector, covering both traditional and renewable energy sources. The Supervisory
Board oversees the activities of the Board, ensuring that the company conducts its business in accordance
with applicable legislation. As part of its supervisory role, the Supervisory Board has the authority to review
all relevant documents and records to verify compliance with legal and regulatory requirements.
Since August 2021, Garry Mazzotti has held the position of the CEO and ESG Officer within the Group.
The ESG Officer holds the ultimate responsibility for ESG matters and directly oversees the work of the
ESG team and reviews key sustainability-related decisions, ensuring alignment with corporate strategy.
Sustainability-related impacts, risks and opportunities are monitored through an internal management
system, with periodic reporting to the Board.
Management is responsible for implementing the sustainability strategy and ensuring compliance with
sustainability regulations. The Sustainability Manager is a single point of coordination and management
for all Group operating companies (“OpCos”). The ESG Officer together with the Sustainability Manager
control overall ESG focus areas in the Group and regularly inform and report to the Board. They also closely
cooperate with the EPIF’s Health, Safety & Environmental (HSE) Committee.
EPIF is a sub-holding of EPH that was created as a result of reorganization in 2016. In 2017, EPH completed
the sale of a 31% stake in EPIF, which was agreed upon with a consortium of global institutional investors
led by Macquarie Asset Management (“MAM”). The remaining 69% of EPIF remains with EPH, which
holds management control over EPIF. Robust corporate governance is reinforced by MAM’s strong
minority shareholder rights in the Shareholder’s Agreement. MAM’s infrastructure experience
complements the regional industry expertise of EPH.
Board of Directors and oversight
The Board is equipped with diverse expertise, including environmental, legal, and financial disciplines,
ensuring holistic oversight over sustainability matters. The Board consists of individuals with backgrounds
in electric and gas utilities, as well as sustainability-related fields, including climate risk, environmental
policy, health & safety, and corporate responsibility.
15
The Board’s sustainability-related skills are aligned with our most material sustainability topics, energy
transition and decarbonization. Where skill or knowledge gaps are identified, targeted training or external
advisory support is utilized to enhance knowledge in emerging and complex sustainability topics. This
approach supports strategic decision-making and ensures effective oversight of key sustainability
initiatives.
In addition to financial statements, the Board must also ensure that EPIF provides appropriate annual
reporting, which includes impacts, risks, and opportunities related to sustainability. This responsibility is
embedded within the company’s governance framework to support transparency and regulatory
compliance. The Board also oversees the setting of targets related to material sustainability IROs, and
monitors progress towards achieving those targets on an annual basis.
In 2025, the Board continued to monitor the implementation of EPIF’s transition plan, the issuance of an
inaugural green bond under its Green Finance Framework (GFF), and the alignment of its operations with
the European Union’s climate targets. The Board was updated on the amendments to the reporting
requirements stemming from the Omnibus I package and the outcomes of the DMA.
Specialized Committees
The EPIF Board and executive leadership are supported by the following committees and structures to
enable integration of sustainability matters into operations:
A.
The EPIF Health, Safety, and Environmental (HSE) committee
meets at least quarterly, and oversees the Group management of IROs and the associated
policies, actions, and targets for:
1.
Health and safety of own workforce, including external contractors working on EPIF sites
2.
Climate change adaptation and mitigation
3.
Energy use
4.
Pollution
5.
Water
6.
Biodiversity
7.
Circular economy and waste
B.
The EPH Compliance committee
represents a shared function for its sub-holdings and provides all necessary expertise to EPIF
regarding compliance matters. It meets regularly, and oversees the Group management of IROs
and the associated policies, actions, and targets for the following matters:
1.
For the EPIF workforce:
a.
Business conduct-related matters (including anti-bribery and corruption (ABC)
and whistleblower protection)
b.
Work-related rights (equal treatment and opportunities for all)
16
c.
Training in relevant policies
2.
For the supply chain:
a.
Matters related to KYC and due diligence on counterparties engaged in business
with EPIF companies
3.
For affected communities:
a.
Rights of indigenous peoples
b.
Communities’ civil and political rights
c.
Communities’ economic, social and cultural rights
C.
The
EPIF Risk committee
Group management of financial risks such as commodity exposure, hedging, liquidity risk, or
counterparty credit risk.
D.
The
EPIF ESG team
and support to these governance structures and facilitates the implementation of group policy
objectives, actions, targets and the collection and internal controls over metrics and
sustainability reporting across group entities.
Oversight of sustainability matters at the Group level is complemented by functions at the OpCo level who
have ESG as part of their agenda and who are responsible for implementing ESG initiatives within their
respective businesses. Interaction between these functions and the Group is facilitated by the EPIF ESG
team, facilitating alignment and better consistency in sustainability efforts. Additionally, OpCo
representatives participate in the HSE committee, providing a structured forum for collaboration,
knowledge sharing, and integration of sustainability priorities across the organization.
Integration of ESG into strategy
EPIF’s governance framework ensures that sustainability is not treated as a standalone initiative but is
integrated into the Group’s broader strategy, decision-making processes, and stakeholder engagements. It
establishes shared objectives that enable consistency in addressing global sustainability challenges, such as
climate change, resource efficiency, social equity, and ethical governance, while allowing subsidiaries to
tailor implementation based on local contexts and sector-specific requirements.
In addition to this, EPIF employs data analytics to track performance indicators and progress against
sustainability targets, including greenhouse gas emissions, energy efficiency, and employee metrics.
Identity and composition of the Board
The Board has seven members, where the role of Chairman of the Board is separated from the Group’s
Chief Executive Officer (CEO). The Board of Directors is the EPIF Group’s statutory body, which directs
operations and acts on behalf of the Group. The Supervisory Board of EPIF has six members elected by the
General Meeting of Shareholders, responsible for reviewing the activities of the Group and of the Board in
its management of the Group, as well as resolving matters defined in the Czech Corporations Act and the
Articles of Association. The Board does not have specific employee representatives. No members of the
17
Table 6 Number of administrative, management, and supervisory body members
Table 7 Governance functions
Table 8 Key sustainability matters discussed by the Board
Board of Directors or the Supervisory Board are considered independent as they are either representatives
of shareholders with control or significant influence or are members of EPIF’s executive management.
Entity | Male | Female | Total | Female ratio | Link | |||
Board of Directors | 7 | 0 | 7 | 0% | https://www.epinfrastructure.cz/en/ab out-us/management-board/ | |||
Supervisory board | 5 | 1 | 6 | 17% | https://www.epinfrastructure.cz/en/ab out-us/supervisory-board/ | |||
GOV-2 – Information provided to, and sustainability matters addressed by,
our administrative, management and supervisory bodies
The Board of Directors and relevant committees of EPIF are regularly informed about material
sustainability matters and actively consider these when overseeing company strategy, key decisions, and
major transactions. The Board members responsible for ESG matters are updated on a bi-weekly basis.
Sustainability matters are included in board materials for approval as needed. The Compliance Committee
provides a detailed report to the Board of Directors on an annual basis. The HSE Committee receives regular
updates from operating companies on a quarterly basis. This is primarily achieved through the exercise of
the following functions:
Governance function | Integration with business model and strategy |
Strategic oversight | Material sustainability IROs are integrated into the annual strategy review process, ensuring that long-term goals and operational plans reflect sustainability priorities. |
Risk-driven decision-making | Governing bodies evaluate IROs during decisions such as market entry or exit, divestments, or acquisitions. |
Alignment with sustainability goals | Material IROs are a standing agenda item in Board or relevant committee meetings, ensuring that they are embedded in discussions about financial and operational performance. |
In the reporting period, the Board was informed, among other matters, about the following key
sustainability matters:
Sustainability matter | Content |
DMA debrief and update | Governing bodies have been briefed and updated on any subsequent changes to all material IROs identified in the materiality section of this report. |
Procurement roadmap | The Board has approved the amendments to the Procurement Policy to enhance and unify the due diligence procedure related to the supply chain across the Group. |
Transition plan | The Board has approved the emission reduction targets and strategy to achieve them. |
Green financing | The Board has approved the issuance of an inaugural green bond. |
GOV-3 – Integration of sustainability-related performance in incentive
schemes
EPIF has integrated sustainability-related performance into incentive schemes for selected executives
across the Group. The development and implementation of any incentive schemes related to sustainability
18
performance, including climate considerations, require approval by the Board of Directors ensuring
alignment with corporate governance principles and the Group’s overarching sustainability strategy.
The EPIF CEO, who also holds the position of the ESG Officer, receives an incentive linked to the
achievement of sustainability goals. The remuneration has a variable portion comprising 50% of the total
remuneration which is linked to meeting financial targets (40%), maintenance of an investment-grade credit
rating (15%), ensuring robust risk management (15%), health & safety considerations (15%), and other
ESG considerations (15%). At present, sustainability-related incentives are not consistently integrated into
remuneration policies across the Group for other roles.
We remain committed to advancing our sustainability performance and will re-evaluate the potential role
of incentive schemes in supporting these objectives. This process will consider stakeholder input,
benchmarking against industry best practices, and alignment with the Group’s governance framework.
GOV-4 – Statement on due diligence
We
understand the importance of effective due diligence processes and ensuring its integration into business
operations. The following section presents the core elements of our due diligence process.
Our due diligence process and approach to preparing for CSDDD
We are committed to embedding due diligence into our governance, strategy, and operations to effectively
identify, assess, and address adverse sustainability impacts and risks. This process is being structured
around the five core elements of due diligence as outlined in the international instruments of the United
Nations Guiding Principles (UNGP) on Business and Human Rights (BHR) and the OECD Guidelines for
Multinational Enterprises (MNE Guidelines).
We have recently amended our
Procurement Policy
subsidiaries that focuses on supplier due diligence to identify, assess, and mitigate impacts and risks across
our operations and supply chain. The amendments support the anticipated requirements of the
Sustainability Due Diligence Directive (CSDDD),
sustainability risks and opportunities. EPIF subsidiaries are required to implement these principles in the
course of the financial year 2026.
Embedding due diligence in governance, strategy and business model
EPIF acknowledges the need to integrate due diligence into its governance, strategy, and business model in
order to effectively manage sustainability-related IROs. The gaps identified during its inaugural DMA have
been addressed and incorporated as amendments to its policies.
8
19
State described in the
previous sustainability
statement:
Governance
: Responsibility for due diligence was distributed between the ESG and Compliance
teams at the group level and procurement teams at the OpCo level. However, formal structures to
monitor and report on due diligence were not yet established.
Strategy
: While material IROs have been identified through a double materiality assessment, their
integration into business strategy was yet consistent across the group.
Policies
: The EPIFProcurement Policy set minimum supplier standards and serves as a basic Code
of Conduct. The Know Your Customer (KYC) Policy mandated screening of business partners but
did not include a clear mandate to assess human rights or other ESG considerations.
Actions implemented
in the reporting
period:
1. Formal governance responsibilities for due diligence oversight assigned to the Compliance team
(supported by the ESG Team) with annual reporting to the Board.
2.ProcurementPolicyprinciplesarerequiredtobeembeddedintoallcontractsacrossOpCos.
3
.
The
KYC
questionnaire
for
suppliers
was
expanded
to
include
certain
high
-
risk
ESG
considerations,particularlyhumanrights.
State described in the
previous sustainability
statement
:
Stakeholder
engagement
was
primarily
re
-
active
and
limited
to
informal
interactions
and
participationininitiatives.
Thewhistleblowingchannelwasaccessibletosuppliersincludingemployeesinthesupplychain.
Theexistenceofsuchachannelmightnothavebeenclearlyandeffectivelycommunicatedtothese
stakeholders.
Actions implemented
in the reporting
period:
1
.
Stakeholder
engagement
has
been
formalized
and
supported
by
the
formal
DMA
process
.
MaterialareasareaddressedbytargetedamendmentsoftheEPIFpoliciesortermsofreferenceof
selectedcommitteesresponsibleforoversightovertheseareas.
2
.
Employees
of
EP
IF
suppliers
are
explicitly
offered
as
a
separate
category
in
the
EP
IF
whistleblowingchannel.TheapplicabilityisalsomentionedintheSustainabilitystatement.
Engaging with affected stakeholders in all key steps of the due diligence process
Engaging with affected stakeholders to ensure their perspectives are considered in identifying and
addressing adverse impacts is critical to effective due diligence. We have formalized the stakeholder
engagement practices and apply these processes consistently across the Group. Following the full
stakeholder engagement process performed during the year 2024, we have performed limited deep dives
with operating companies during the year 2025 to ensure that the conclusions remain relevant.
Identifying and assessing adverse impacts
Our processes for identifying and assessing adverse human rights and environmental impacts throughout
the value chain are gradually evolving. After our DMA outcome has enabled an initial view of some high-
risk areas, we have formalized a supply-chain risk assessment process which will be gradually implemented
across operating companies.
20
State described in the
previous sustainability
statement
:
The
double
materiality
assessment
has
identified
material
IROs
across
the
value
chain
.
However,
supplierriskassessmentswerenotyetformalizedorconsistentlyappliedacrosstheGroup.
The
KYC
questionnaire
was
focused
on
key
business
risks
such
sanctions
or
anti
-
money
laundering,lackinginsightfulquestionsrelatedtohumanrightsandenvironmentalimpacts.
Actions implemented
in the reporting
period:
1
.
A
practical
supplier
risk
scoring
system
implemented
to
categorize
suppliers
based
on
geography,industry, andotherriskdimensions.
2
.
The
KYC
questionnaire
expanded
to
include
ESG
considerations,
allowing
OpCos
to
tailor
the
questionstotheirspecificneeds.
3
.
Formal
processes
developed
for
assessing
supplier
risks
and
conducting
systematic
evaluations
ofadverseimpacts.
State described in the
previous
sustainability
statement:
Actions
to
address
adverse
impacts
were
reactive
and
inconsistent
.
Focused
efforts
were
limited
to
specific
areas,
such
as
health
and
safety
reviews
and
environmental
audits,
without
a
comprehensiveframeworkforaddressinghumanrightsrisks.
Actions implemented
in the reporting
period:
Atieredduediligenceapproachbasedonsupplierrisklevelsdevelopedtofocushigh-riskareas,
whilelimitingburdenforsmalllow-risksuppliers.
State described in the
previous
sustainability
statement:
Monitoring
and
evaluation
of
due
diligence
efforts
were
not
formalized
or
consistently
tracked
across
the
G
roup
.
Reporting
on
these
efforts
was
limited
to
high
-
level
summaries
in
sustainability
reports.
Actions implemented
in the reporting
period:
1
.
Monitoring
to
track
the
effectiveness
of
due
diligence
processes
is
the
agenda
of
the
EPH
ComplianceCommittee(supportedbytheESGTeam).
2
.
Training
guidance
for
subsidiaries
provided
to
train
employees
responsible
for
implementing
duediligence,withafocusonmanagementofadverserisksandimpactsinprocurement.
3
.
Transparency
enhanced
by
reporting
on
due
diligence
efforts
and
outcomes
in
the
G
roup’s
sustainabilityreports.
Taking actions to address adverse impacts
We are committed to improving our ability to address adverse impacts effectively. After recognizing the
need to develop a structured approach, we have implemented a tiered due diligence process, and proactive
monitoring system, to manage risks consistently.
Tracking the effectiveness of measures put in place and communicating them
We are in the early stages of developing mechanisms to track the effectiveness of our actions to address
adverse impacts and implementing adequate measures. While some progress has been made, there is a clear
need for robust monitoring frameworks and enhanced visibility and reporting to ensure accountability and
alignment with stakeholder and regulatory expectations.
21
The amendments to EPIF policies described above will be gradually implemented by EPIF subsidiaries in
their internal procedures. EPIF will continue to monitor developments in the regulatory landscape with
regards to due diligence requirements.
GOV-5 – Risk management and internal controls over sustainability reporting
Sustainability reporting related controls and procedures are embedded into our governance and operational
framework and cascaded to all operating companies. Whilst we have not yet established an Enterprise Risk
Management framework at the Group level, the sustainability risk assessment process is aligned and
integrated with our current risk management approach. Reporting on risks is focused on the needs of
financing banks and bondholders to assist them in their decision making related to capital allocation.
Our risk management includes continuous monitoring of key risks through data analytics and regular
reviews. We integrate findings into detailed annual reports for transparency and accountability. This
approach not only protects the Group’s operational integrity but also supports stakeholder confidence in
our ability to manage complex risks.
The main risks related to sustainability reporting pertain to the completeness and integrity of reported data,
uncertainty in regulatory shifts of mandatory reporting elements, accuracy of data or estimations,
availability of upstream and/or downstream value chain data and timing of data collection.
To mitigate these risks, we maintain and continuously improve a well-defined collection and centralized
KPI management database. This allows the ESG team to view and verify data inputs, perform trend analysis,
and rectify inconsistencies or errors in data provided by our OpCos.
Comprehensive non-financial KPIs are collected annually, and critical performance indicators (such as
health & safety KPIs) are collected on a monthly basis. The collection process distinguishes between flow
KPIs, aligned with profit and loss (P&L) reporting periods, and point-in-time KPIs, synchronized with
balance sheet dates. This helps ensure consistency with financial reporting cycles and enhances data
availability.
SBM-1 – Strategy, business model and value chain
EPIF’s core strategy is to operate critical infrastructure, safeguard security of supply, and contribute to
affordability of essential commodities. At the heart of EPIF’s strategy is its transition plan, which outlines
our goal to achieve net zero operations by 2050.
Adaptation of gas infrastructure for hydrogen plays a critical role in our strategic ambitions. We are placing
significant emphasis on hydrogen readiness of our facilities to enable integration of renewable gases into
the wider energy mix. EPIF’s leadership in hydrogen projects has been recognized through designation of
its projects as Important Projects of Common European Interest (IPCEI), advancing the repurposing of
transit networks and storage facilities to adopt hydrogen. This positions EPIF as a pioneer in adopting
technologies that will shape Europe’s future energy system.
To address its exposure to lignite in the district heating operations, EPIF has commenced decarbonization
of the Czech lignite heating plants, replacing them with flexible hydrogen-ready CCGT units and waste-to-
energy plants, contributing to the coal phase out in the Czech Republic. Two cogeneration heating plants
in the Czech Republic (Elektrárny Opatovice, United Energy) were transferred to an affiliated company EP
Heat & Power in March 2025 where the decarbonization projects commenced by EPIF shall be completed
as planned. In addition to our decarbonization efforts, we remain focused on enabling energy security and
22
Table 9 Strateg ic pillars
affordability. Recognizing the challenges posed by energy transition, we have invested in modernizing grid
infrastructure to maintain reliability and stability.
To finance our strategic goals, we established the inaugural Green Finance Framework in 2023, allowing
the company to align its financial strategy with its sustainability objectives. EPIF issued its inaugural EUR
600 million green bond in November 2025, followed by a EUR 500 million green bond issued in January
2026, providing additional depth to the Group’s sustainable finance structure across all major business lines.
These combined efforts confirm the Group’s credibility in sustainable capital markets and reinforce its
commitment to continuous improvement in environmental performance and disclosure standards.
Innovation and modernization remain critical to executing EPIF’s strategy. Initiatives such as hydrogen-
ready heating plants, transmission systems and storage solutions are expected to play a pivotal role in
enabling large-scale adoption of renewable gases.
Geographically, EPIF maintains its operations concentrated in Slovakia and the Czech Republic, while
being also present in Germany, specifically:
a)
Gas transmission network in Slovakia
b)
Gas storage facilities in Slovakia, the Czech Republic, and Germany
c)
Gas and power distribution networks in Slovakia
d)
District heating assets in the Czech Republic
e)
Power and gas supply businesses in Slovakia, and the Czech Republic
EPIF does not have any products or services which are banned in any markets.
Strategic pillar | Achievement target for pillar | Challenge being addressed |
Enabling development of markets with green gases such as hydrogen or biomethane | For our gas infrastructure, we aim to gradually achieve hydrogen-readiness across our midstream and downstream gas infrastructure. | Uptake of green hydrogen market being slower than anticipated. As a facilitator of gas transit and distribution, EPIF depends on broader hydrogen adoption. |
Reduction of emissions from existing gas infrastructure | While natural gas still dominates the gas market, we aim to minimize the carbon footprint by reducing methane leakage or electrification of compressors. | Methane leakage inherently linked to gas pipeline operations. Compressor electrification is only partial, ensuring gas compressors remain available for diversification in case of grid disruptions. |
Reinforcing the power distribution network to enable electrification of the wider system | Increased electrification and decentralization of energy production require adaptation of the network for increased volatility. | Grid management is more challenging due to the growing number of small, decentralized sources in the network. |
Replacing coal in district heating | We aim to phase out lignite in district heating operations by 2030, while striving for 2028/2029. | Ensuring affordability and security of supply in district heating in the Czech Republic which is still reliant on lignite. |
23
Table 10 ESRS Sectors significant to EPIF and associated revenue
Table 11 Revenue breakdown of fossil fuel-related activities
The following table presents a breakdown of total revenue of EUR 3,115 million reported by EPIF Group
for the year 2025 into ESRS sectors (derived from the disclosure on Operating segments under IFRS 8 in
the
EP Infrastructure Consolidated Financial Statements as of and for the year ended 2025
):
ESRS Sector Group | ESRS Sector | Revenue 2024 (EUR million) | Revenue 2025 (EUR million) |
Utilities | Power Production and Energy Utilities | ||
Mining | Oil and Gas | ||
Transportation | Other Transportation | ||
Other and intersegment eliminations | |||
Consolidated revenue | |||
EPIF is engaged in the fossil fuel sector, primarily through its ownership and operation of key natural gas
infrastructure. This includes extensive gas pipelines and storage facilities, playing a crucial role in the
transportation and storage of natural gas across Central and Eastern Europe. EPIF also operates
predominantly lignite-based cogeneration heating plants (exposure significantly reduced through
divestment of two heating plants in March 2025). Additionally, EPIF is engaged in retail gas supply to end
consumers. EPIF is also engaged in limited extraction of oil and gas in Slovakia as part of its gas storage
operations.
The breakdown of revenue related to fossil fuels is as follows:
Sector | Revenue 2024 (EUR million) | Revenue 2025 (EUR million) |
Gas transmission | ||
Gas distribution | ||
Gas storage | ||
Gas trading and supply | ||
Coal-fired power generation | ||
Oil and gas extraction | ||
Total revenue related |
For full details on EPIF's EU Taxonomy activities, please see section
EU Taxonomy assessment.
The resilience of our strategy
A central theme in the European energy market is the commitment to achieving climate neutrality by 2050,
as outlined in the European Green Deal and written into law by the European Climate Law. This regulatory
environment
supports our strategic ambitions to facilitate the development of green gases such as hydrogen
or biomethane, phase out coal, and enhance the resilience of our electricity network infrastructure to support
higher penetration of renewables in the energy system. However, we also recognize the challenges posed
by this transition, including the need to balance decarbonization efforts with the demand for reliable and
affordable energy.
24
Geopolitical developments have underscored the importance of energy security. Disruptions in energy
supply chains and fluctuations in commodity prices have heightened the need for robust infrastructure and
diversified energy sources. Our integrated business model, which spans gas transmission and storage, gas
distribution, power distribution, and district heating positions us well to navigate these challenges.
In the
turbulent developments in energy markets in the last few years, we have contributed to mitigating market
volatility and ensuring energy availability during periods of uncertainty. At the same time, we have not
compromised on our continuous efforts to decarbonize our operations and ensure we are on track to meet
our emission reduction targets.
In addition to regulatory and geopolitical factors, technological innovation is reshaping our landscape.
Advances in renewable energy, energy storage, and hydrogen technologies are opening new opportunities
for us to lead in the transition to a sustainable energy future. EPIF has embraced this trend by advancing
hydrogen readiness across its gas operations midstream and downstream infrastructure and being a
frontrunner in replacing its Czech lignite-based district heating plants with alternative sources.
Despite these opportunities, the market remains competitive, with increasing expectations from customers,
investors, and regulators. EPIF addresses these challenges by maintaining a diversified portfolio, leveraging
its operational expertise, and aligning its business strategy with sustainability goals. By staying ahead of
market trends and adapting to external pressures, EPIF continues to strengthen its position as a reliable and
innovative energy infrastructure utility.
Explanation of our value chain
EPIF is a leading European energy infrastructure utility focused on gas transmission, gas and power
distribution, district heating, and gas storage. EPIF has its principal operations in Slovakia and the Czech
Republic, while being also present in Germany. EPIF holds a large and diverse infrastructure asset base.
25
◾
Natural gas
production
:
Extraction of natural
gas from fields by
external producers
that enter EPIF’s
pipelines and storage
facilities.
◾
Energy generation
:
Production of
electricity and other
energy sources that
enter EPIF’s
distribution networks.
◾
Fuel supply
:
Extraction of lignite
and biomass for
energy generation.
Upstream
◾
Gas transmission
: EPIF owns and operates
extensive high-pressure gas pipelines,
transporting natural gas to the Slovak
market but also enabling transit across
Central and Eastern Europe. This
midstream activity ensures stable supply
across regions.
◾
Gas storage
: Through its underground
storage facilities, EPIF balances supply and
demand, especially during peak seasons or
supply disruptions.
◾
Gas and power distribution
: EPIF’s
subsidiaries manage local distribution
networks, delivering natural gas and
electricity to end-users like households,
businesses, and industrial clients.
◾
Heat infrastructure
: EPIF operates district
heating systems (including adjacent
heating plants at certain locations),
distributing heat energy to residential and
commercial customers, ensuring reliable
heat supply.
Own operations
◾
Energy retailers
:
Purchase and resell
natural gas,
electricity, and heat
supplied via EPIF’s
infrastructure.
◾
Industrial and
commercial users
:
Use distributed
energy for
manufacturing,
services, and
operations.
◾
Residential
consumers
:
Households that rely
on natural gas,
electricity, and heat
provided through
EPIF’s networks.
Downstream
Upstream activities
Our upstream operations include the procurement and development of energy resources. We source
primarily fuels for heat generation such as lignite, biomass, or municipal waste while actively transitioning
toward alternative resources. Upstream activities are guided by stringent environmental and ethical
standards, ensuring compliance with international regulations on human rights, labor practices, and
environmental protection.
Own
operations
We operate gas and power distribution networks, gas storage facilities, a gas transit corridor, and district
heating networks (at some locations including the adjacent heating plants). Our assets play a key role in
ensuring energy security, especially during periods of market volatility. EPIF assets provide a buffer against
supply disruptions and seasonal demand fluctuations, stabilizing energy markets for both its own operations
and the broader European energy system. Our gas infrastructure is well positioned to secure transit, storage,
and distribution of alternative gases such as hydrogen, ensuring energy system stability in a zero-carbon
future. Beyond the physical infrastructure, EPIF is engaged in retail supply of power and gas to the end
consumers. Our direct involvement in the extraction segment is limited to relatively minor oil & gas
extraction in Slovakia by our subsidiary Nafta.
26
Table 12 Value creation and business activities
Table 13 Key stakeholders
Table 14 Key challenges and opportunities
Downstream activities
EPIF's direct contractual relationships with end consumers are primarily limited to the retail supply of
power and gas, as well as heat distribution through its own district heating networks. Electricity generated
by EPIF’s combined heat and power plants is sold on the market via energy exchanges, without direct
customer contracts. In the gas midstream sector, EPIF's infrastructure supports gas transit and storage for
shippers and traders. Within the gas and power distribution segments, EPIF operates the infrastructure
including the final offtake points.
Value creation
Business activity | Description |
Economic value | Consistent revenue generation from operation of existing energy infrastructure is complemented by investments in long-term sustainable projects to ensure resilience in fluctuating energy markets. As the energy markets are increasingly regulated, EPIF expects that a significant share of its economic value will continue to be derived from regulated tariffs, long-term contracts, various subsidy schemes, or be otherwise supported by regulatory frameworks. |
Environmental value | Reduction in greenhouse gas emissions through replacing most emission-intensive assets, facilitating wide-spread adoption of renewable gases, and efficiency upgrades. |
Social value | Providing stable energy access to communities, fostering economic growth in operating regions with a commitment to workforce development, safety, and fair labor practices. |
Stakeholder integration
We align our business model with stakeholder interests, including:
Stakeholder | Description |
Governments and regulators | Ensuring compliance with EU climate and energy directives. |
Investors | Delivering financial returns while maintaining transparency on sustainability performance. |
Employees | Upholding safety and development opportunities across the workforce. |
Communities | Providing security of supply, contributing to the affordability of basic commodities, while reducing the environmental and social impacts of our operations. |
Key challenges and opportunities
EPIF’s business model combines traditional gas transmission, gas and power distribution, heat distribution,
and gas storage with forward-looking sustainability goals, leveraging its existing strengths while
proactively addressing future challenges. This approach ensures EPIF remains a key player in Europe’s
energy landscape while contributing to global climate objectives.
Our key opportunities and challenges exist in enabling system flexibility and security of supply, investing
in renewable and low-carbon infrastructure, supporting infrastructure readiness for hydrogen adoption and
ensuring long-term energy security.
Key challenges | Key opportunities |
Regulatory pressures to phase out most emission- intensive sources. | Growing demand for renewable and low-carbon energy. |
Market volatility in energy pricing and resource availability. | Technological advancements in energy efficiency and storage. |
27
Table 15
Stakeholder expectations for rapid energy transition. | Potential for strategic acquisitions to strengthen market position. |
SBM-2 – Interests and views of stakeholders in strategy and business model
We value the role that stakeholder engagement plays in shaping and achieving our sustainability objectives
and aligning our business practices with the expectations of society, regulators, and communities on
material sustainability topics. Stakeholder engagement is recognized in our
Operational Policy
aspect of our business operations and we are committed to monitoring our stakeholders throughout the year,
ensuring that we regularly engage with them through a range of channels as summarized in the table below.
Our approach to stakeholder engagement also varies depending on the stakeholder group, and we utilize a
mix of informal and formal channels and methods to maintain dialogue. The interests and views of our key
stakeholders vary due to the nature of the relationship.
We
engage with internal subject-matter experts, with responsibilities and insights into specific parts of our
business model and operations, to understand IROs. In relation to complex sustainability matters, we utilize
external advisors with in-depth domain knowledge to edify our integration of these considerations into our
business model. Selected external stakeholders are also interviewed and their concerns and inputs are
documented. The stakeholder engagement forms a key part of the DMA carried out by EPIF to pinpoint
our material IROs. The Board receives stakeholder feedback through multiple channels, including investor
briefings, updates from the HSE, Compliance, and Risk committees, and debriefs on the Group’s DMA
process, insights, and outcome.
While we have taken steps to engage with key stakeholder groups, our current stakeholder engagement
process has not yet been systematized across all operating entities and does not capture the full range of
stakeholder concerns and expectations which may result in gaps in understanding stakeholder priorities.
As part of our ongoing efforts to integrate stakeholder interests into our strategic and business model
development, we are taking targeted steps in the next reporting cycle to strengthen our understanding of
key stakeholder perspectives, particularly within our supply chain. A key initiative in this regard is the
implementation of our Procurement Roadmap, which will enable us to enhance supply chain transparency,
improve collaboration, and align procurement practices with sustainability objectives, ultimately fostering
more resilient and responsible business relationships.
In addition, we will continue our ongoing engagement in industry forums and the regions where we operate,
ensuring that we maintain a dynamic understanding of evolving stakeholder expectations. By actively
participating in these discussions as a group and via our OpCos, we can integrate industry’s best practices,
regional considerations, and emerging sustainability trends into our business strategy.
Stakeholders | Purpose of engagement | Current engagement mechanisms | Planned engagement initiatives for the next reporting cycle |
Employees | These stakeholders are engaged in day-to-day business activities. Employees are essential to the operations and growth of our business. ● Promote workplace safety, health, and satisfaction. | ● Performance and development dialogue ● Employee surveys ● Social events | ● Raising awareness on sustainability and ethics. |
28
Stakeholders
Purpose of engagement
Current engagement
mechanisms
Planned
engagement
initiatives for the
next reporting cycle
●
Ensure alignment with corporate ESG
objectives.
●
Foster talent retention and development.
●
Identify and validate IROs for DMA.
Local
Communities
These stakeholders have varying interests in EPIF’s
sustainability activities based on their origins. EPIF
often interacts with these stakeholders during local
consultation, as their concerns tend to be legislation-
based (e.g. building permits and Environmental Impact
Assessments (EIA)). The location of these stakeholders
determines the level of their interest in EPIF’s
sustainability activities.
●
Mitigate environmental and social impacts of
operations.
●
Support community development and
sustainability initiatives.
●
Enhance social acceptance.
●
Identify and validate IROs for DMA
●
Local
partnerships and
outreach
programs funded
by Group
Foundation
(established at
parent level).
●
Consultations on
new projects that
have direct
impacts on
communities.
●
Continuing
current practice.
Customers and
end consumers
These stakeholders are very important for EPIF’s
business, as their decisions determine the Group’s
success.
●
Provide reliable, affordable energy while
promoting renewable options.
●
Address customer needs related to energy
transition.
●
Identify and validate IROs for DMA
●
Transparent
reporting on
pricing, energy
mix, and
renewable
offerings.
●
Satisfaction
surveys.
●
OpCos websites.
●
Continuing
current practice.
Regulators and
Governments
These stakeholders consist of various national and
transnational institutions, making their interest in
EPIF’s sustainability commitments quite broad.
Therefore, both policy decisions and social change
strongly influence EPIF’s business activities. For
example, local groups are concerned with the
performance of individual EPIF entities, while
European institutions are concerned with EPIF’s
business from a transverse perspective.
●
Ensure compliance with environmental,
social, and corporate governance laws.
●
Influence policy development for climate and
energy goals.
●
Identify and validate IROs for DMA.
●
Regulatory
filings and
compliance
reviews.
●
Collaboration
during policy
consultation
processes.
●
Continuing
current practice.
Investors
These stakeholders are predominantly banks,
bondholders and financial institutions whose capital is
crucial for EPIF’s successful development. Their
interest in EPIF’s sustainability performance is
demonstrated at both the EPIF level and local level,
depending on their involvement in financing within the
Group.
●
Provide transparency on financial and
sustainability performance.
●
Strengthen alignment of operations with ESG
priorities.
●
Identify and validate IROs for DMA
●
Annual
sustainability and
financial reports.
●
Green finance
disclosures and
frameworks.
●
Ongoing
collaboration.
Suppliers and
Contractors
These stakeholders can have both a local and global
reach (social and economic performance), which can
●
Engagement via
curent due
●
Establish a risk-
based due
29
Stakeholders
Purpose of engagement
Current engagement
mechanisms
Planned
engagement
initiatives for the
next reporting cycle
affect EPIF at the Group or subsidiary level. This holds
especially true for contractors who are engaged in
centralized processes (e.g. large tenders, Information
Technology (IT) procurement and construction or
maintenance works).
●
Ensure adherence to human rights and
environmental standards.
●
Implement ethical procurement practices.
●
Identify and validate IROs for DMA.
diligence process
and KYC
process.
diligence
approach to
identify high-
risk areas.
●
Supplier
screening
processes
focused on
human rights
and
environmental
stewardship.
Non-
Governmental
Organizations
(NGOs)
These stakeholders are predominantly environmental
NGOs, therefore significant emphasis is placed on
environmental activities at both local and global level.
These stakeholders provide valuable information
regarding the concerns and expectations of the general
public.
●
Partner for biodiversity conservation and
sustainable development.
●
Address societal concerns regarding
environmental impacts.
●
Identify and validate IROs for DMA.
●
Ad hoc
●
Continuing
current practice.
Media and
Public
These stakeholders are active at both a local and global
level (particularly in the Czech Republic, where EPIF is
headquartered).
●
Communicate progress on ESG initiatives.
●
Foster corporate transparency and public
trust.
●
Press releases,
media briefings,
and online public
engagements.
●
Continuing
current practice.
Annual Financial Report for the year 2025 – Section X.
Consolidated Sustainability Statement
30
Table 16 Integration of stakeholder engagement
Communities
•Benefit from stable energy
access, job creation, and
infrastructure development.
Investors
•Gain from long-term
profitability driven by
sustainable practices and market
adaptation.
Employees
•Experience improved working
conditions, training, and career
growth opportunities.
Integration of stakeholder engagement into company strategy and business model
Driver | Integration |
Materiality assessments | EPIF conducts regular double materiality assessments to identify and prioritize the most significant sustainability IROs affecting our stakeholders. These assessments are informed by direct engagement with stakeholders or suitable proxies, including employees, investors, regulators, communities, and NGOs. The insights gathered help shape the Group’s strategic focus areas. |
Risk management and resilience | Engaging stakeholders helps EPIF anticipate and address potential risks that could impact its operations or reputation. For instance, dialogues with representatives of affected communities help identify and mitigate risks related to land use and environmental degradation, while interactions with regulators ensure proactive compliance with emerging energy policies. |
Resource allocation | Stakeholder engagement highlights key areas for investment and resource allocation. For example, requirements from banks and investors regarding GHG emission reductions have reinforced EPIF’s commitment to accelerated coal exit and increased focus on alternative solutions, driving the Group’s transition to a low-carbon business model. |
Operational enhancements | EPIF integrates stakeholder concerns into operational practices to ensure efficiency and sustainability. For example, input from stakeholders led to increased central oversight over biomass sourcing practices. |
Value
creation for stakeholders
Our business model is designed to create shared value for stakeholders in the following ways:
Annual Financial Report for the year 2025 – Section X.
Consolidated Sustainability Statement
31
In the reporting year, the primary financial effects of material IROs were associated with capital expenditures to replace lignite in district heating
(the future financial effects were significantly reduced by divestment of two heating plants), to reduce methane leakage in the gas infrastructure, to
retrofit the gas distribution network to enable integration of renewable gases, and to invest in the electricity distribution network to increase its
resilience and adapt it to growing share of intermittent renewable sources. The gradual reduction in EPIF’s exposure to lignite (accelerated by
disposal of certain heating plants in the reporting year), adaptation of gas and power networks, and elimination of methane leakage is expected to
enhance the resilience of EPIF’s business model under future scenarios. As EPIF largely reflects these developments in the financial statements (e.g.
depreciation periods of coal-related technologies are aligned with the coal phase out year), there is no significant risk of a material adjustment within
the next annual reporting period to the carrying amounts of assets and liabilities reported in the related financial statements stemming from these
financial effects.
SBM-3 – Material IROs and their interaction with strategy and business model
We conducted our first CSRD-aligned double materiality assessment for 2024 reporting year, whilst prior assessments provided a robust foundation
for understanding our IROs. Through the double materiality assessment process, we identified the sustainability related IROs that are material to
EPIF. Priority has been given to negative impacts and financial risks. As a result, there are fewer opportunities presented, and we have concluded
that positive impacts created by EPIF are inherently embedded in its core business which consists in providing basic commodities to wider society
and are therefore not presented as material positive impacts from the DMA perspective. Throughout the report, there are case studies to illustrate the
positive benefits that EPIF’s actions are having, although these are in addition to addressing the impacts as reported.
As part of our DMA review for 2025 reporting year, we discussed development in the Group during 2025, namely the divestment of EPIF’s
cogeneration units, Elektrárny Opatovice and United Energy, and we concluded that there is no need to add or remove any material topic or change
narratives to the current IROs.
In 2025, we did not conduct any DMA-related stakeholder dialogue. As we remain in regular contact with our stakeholders and have not observed
any change in our positions or mutual relationships, we do not consider it necessary to conduct a new full stakeholder dialogue after only one year.
EPIF actively monitors the material risks and opportunities associated with climate change, due to the nature of EPIF’s business and partial reliance
on the fossil fuel sector. Our investors also consider this to be their number one priority when engaging with EPIF and our efforts to address our
climate change-related impacts and risks therefore reflect this leading theme. Full details on our climate change impact, risk and opportunity analysis,
and the associated resilience of our business, can be found under
ESRS E1 - Climate change.
Annual Financial Report for the year 2025 – Section X.
Consolidated Sustainability Statement
32
Table 17 EPIF's Material IROs
Sustainability Matter | Current effect | Impact Statement | Risk Statement | Actual/ potential | Value Chain location | Time horizon | ||||
Environmental | ||||||||||
E1 Climate Change | ||||||||||
Climate adaptation | Climate change is a central challenge for the energy sector, directly impacting EPIF’s operations, value chain, and strategic direction. EPIF’s greenhouse gas emissions contribute to global warming, posing regulatory, reputational, and financial risks. Addressing climate change through decarbonization and transitioning to renewable energy aligns with EPIF’s long-term business strategy to remain competitive, comply with global climate commitments, and meet stakeholder expectations | Climate resilience is vital for EPIF, as physical climate impacts, such as extreme weather, can disrupt operations and affect energy supply stability. EPIF relies on infrastructure that may not be fully adapted to withstand increasing extreme weather events. Insufficient adaptation measures increase the vulnerability of communities dependent on energy services, posing a risk of outages and service instability during extreme weather. | Without adequate adaptation, physical climate events can disrupt energy supply, causing operational downtime and increased costs for repairs. The risk includes potential legal liabilities if disruptions affect critical services for communities | Actual | Own operations | Short | ||||
Climate mitigation | Climate change is a central challenge for the energy sector, directly impacting EPIF’s operations, value chain, and strategic direction. EPIF’s greenhouse gas emissions contribute to global warming, posing regulatory, reputational, and financial risks. Addressing climate change through decarbonization and transitioning to renewable energy aligns with EPIF’s long-term business strategy to remain competitive, comply with global climate commitments, and meet stakeholder expectations. | Reducing greenhouse gas emissions is essential for EPIF to align with global climate targets, avoid reputational damage, and meet evolving regulatory and market requirements. EPIF’s current direct or indirect reliance on fossil fuels contributes significantly to carbon emissions. High emissions contribute to global warming, amplifying climate impacts that affect ecosystems, communities, and economic stability. | Failing to mitigate emissions exposes EPIF to stricter regulations, carbon pricing, and market demand for low- emission energy, potentially reducing competitiveness and profitability. | Actual | Own operations | Short | ||||
Energy | EPIF's reliance on energy- intensive processes affects both costs and emissions, impacting profitability and regulatory compliance. Optimizing energy use through efficiency measures and integrating renewable energy sources supports EPIF’s strategy | Energy intensity and efficiency in operations are directly related to cost management and environmental impact, especially for energy companies with high power requirements. EPIF’s operations involve high levels of energy use, particularly in heat and power production. This energy demand amplifies emissions and resource depletion, impacting | High energy demand increases operating costs and intensifies carbon emissions, posing financial and environmental regulatory risks. Inefficiency can lead to higher energy costs and potential non-compliance | Actual | Own operations | Short | ||||
Annual Financial Report for the year 2025 – Section X.
Consolidated Sustainability Statement
33
to enhance operational resilience,
reduce costs, and align with the
global energy transition.
the company’s carbon footprint. Inefficient
energy use increases environmental strain
and raises operational costs, potentially
impacting regulatory compliance.
with energy efficiency
standards.
E2 Pollution | ||||||
Pollution of Air | Release of air pollutants in the environment is an inherent part of operating combined heating and power plants, and gas compressor stations. Core operations of EPIF contribute to this and can have lasting impacts on human health and ecosystems. Furthermore, this is seen as an area where EPIF can have influence, and high effort has been put already into remediation work/ minimizing it. | Emissions from EPIFs core and upstream activities (e.g. coal mining) contribute to air quality deterioration by releasing pollutants like NOx, SO 2 , mercury, methane, CO, and particulate matter into the air. These emissions can cause long-term and irreversible harm to human health and ecosystems. | Not Material | Actual | All | Short |
E3 Water Resources | ||||||
Water Withdrawal | High withdrawals for cooling in district heating plants. Significant water withdrawals from rivers for cooling processes can lower water levels, affecting local water supply for agriculture, drinking, and ecosystem services. Over- extraction in already stressed water bodies can lead to severe ecological consequences, including habitat loss and species decline. | Not Material | Reliance on water withdrawals in water-scarce regions can expose EPIF to operational disruptions, increased costs, and reputational damage. Regulatory limits on water use or community resistance may hinder operations. | Potential | Own operations | Short |
Water Discharges | High risk of thermal pollution and contaminant discharge from district heating plants. Discharge of heated water and effluents from cooling systems into rivers can raise water temperatures, disrupt aquatic ecosystems, and lead to oxygen depletion, causing fish kills and reducing biodiversity. Chemical discharges can further contaminate water, impacting both flora and fauna. | Not Material | Improper water discharge practices can result in legal penalties, stricter environmental regulations, and reputational harm. Contaminated water bodies may also lead to community pushback, impacting EPIF’s social license to operate. | Potential | Own operations | Short |
E4 Biodiversity and Ecosystems |
Annual Financial Report for the year 2025 – Section X.
Consolidated Sustainability Statement
34
Biodiversity loss from Climate Change | Impact from GHG emissions from district heating plants and methane leakage contribute significantly to global warming. These contribute heavily to the greenhouse effect, accelerating climate change and affecting global and local ecosystems. | GHG emissions from fossil-fueled power sources contribute to global warming, affecting climate patterns and leading to habitat loss and species extinction. The loss of biodiversity weakens ecosystem resilience, which can harm resource availability and operational stability. | Biodiversity loss due to climate change increases regulatory scrutiny and stakeholder pressure while amplifying the physical risks of ecosystem degradation, which can affect raw material supply and operational stability. | Actual | Own operations and upstream | Short |
Land Degradation | Impact from infrastructure development, which can degrade soil quality and lead to erosion. These activities can strip land of vegetation, increase susceptibility to desertification, and reduce agricultural productivity, causing long-term ecological and economic damage. | EPIF’s processes linked to extraction of resources in its upstream value chain including lignite mining and biomass sourcing contributes to land degradation. Land degradation supports fewer species, reduces agricultural productivity, and disrupts ecosystem services essential for human livelihoods and climate regulation. | Not Material | Actual | Upstream | Short |
Land-use and freshwater- use change | Impact from infrastructure expansion, which requires extensive land clearance, potentially contributing to deforestation, habitat fragmentation, and soil erosion. This destruction of natural habitats displaces wildlife and alters freshwater systems, leading to reduced biodiversity and changes in local ecosystem dynamics. | EPIF’s operations and dependency on resource extraction for energy production alter land, and freshwater ecosystems. These changes may fragment habitats, reduce biodiversity, and disrupt critical ecosystem services such as carbon sequestration, flood regulation, and water purification, impacting local communities and global ecological stability. | Not Material | Actual | All | Short |
Direct Exploitation | High impact from exploitation of lignite, biomass and other resources. Extensive mining activities result in the direct exploitation of natural resources, degrading habitats, and reducing biodiversity. The removal of large quantities of earth and rock for access can destroy ecosystems and alter the natural landscape, leading to long-term ecological impacts. | EPIF’s reliance on raw materials from its upstream value chain involves direct exploitation of natural ecosystems which degrades habitats, reduces biodiversity, and causing long-term (and sometimes irreparable) ecological damage | Not Material | Actual | Upstream | Short |
E5 | ||||||
Waste | Impact due to presence of hazardous waste related to electrical and gas infrastructure operations. Also, coal byproducts from power generation contain toxic substances that need careful | EPIF generates industrial waste, including coal ash, slag, and hazardous materials, during energy production. Improper waste disposal may contaminate soil, water, and air, harming ecosystems and human health. Accumulation | Not Material | Actual | Own operations | Short |
Annual Financial Report for the year 2025 – Section X.
Consolidated Sustainability Statement
35
management. Improper disposal
or management of these wastes
can contaminate soil and water,
posing long-term environmental
and health risks and necessitating
extensive remediation efforts.
of waste also increases landfill use and
undermines circular economy efforts.
Social
S1 Own Workforce
Training and
Skills
Development
Equipping EPIF’s workforce with
the necessary skills to adapt to
technological advancements and
the energy transition is integral to
operational success. Training and
skills development improve
employee performance, foster
innovation, and ensure alignment
with EPIF’s strategic focus on
sustainable growth, workforce
satisfaction, and competitiveness
in a rapidly evolving sector.
A lack of targeted training for workers in
EPIFs workforce can result in significant
safety risks and accidents, potentially leading
to injuries or fatalities. Failing to develop
people or not providing opportunities to
upskill them, especially in areas such as
renewable energy technologies reduces
workforce adaptability to industry shifts,
potentially leading to job losses and reduced
innovation.
Failure to have targeted training
programs in place that pro-actively
address reskilling and use of new
technologies could contribute to
slower adaptation to industry
changes, potentially affecting
compliance and competitive
positioning. The risk associated with
being unable to attract a new, young
workforce to replace retiring
employees is already being felt by
EPIF.
Actual
Own
operations
Short
Health &
Safety
Risks stemming from operation
of gas pipelines, power
distribution network and
combined heat and power plants.
Workers in cogeneration plants
and compressor stations face risks
from machinery, high-pressure
systems, and exposure to toxic
substances, which could lead to
accidents and long-term health
issues.
EPIF’s workforce is exposed to high-risk
environments, including exposure to high
voltage electricity networks or equipment
which could lead to workplace incidents and
harming employees’ physical and mental
health.
Failure to adequately address health
and safety risks in areas such as gas
and power distribution infrastructure
or heating plant operations can result
in increased workplace accidents,
leading to legal liabilities, regulatory
fines and reputational damage
Actual
Own
operations
Short
Diversity
There is a need to consider
diversity in the workforce,
particularly in technical and
operational roles. The energy
sector often lacks diversity,
especially in senior and technical
positions. Initiatives to attract a
more diverse workforce, attract
new talent, and create an
inclusive culture are essential for
fostering innovation and
improving operational
performance. Additionally, EU
directives in the future will likely
focus on diversity, gender parity,
and equal pay, this can be an
opportunity to further inclusive
activities. There must also be
A lack of diversity in leadership and technical
roles at EPIF can lead to exclusionary
practices, and ultimately can enable a culture
where discrimination is allowed to continue
and thrive. This may foster conflict, and
promote a dangerous singular perspective that
marginalizes others, causing employees to feel
unsafe at work.
Not Material
Actual
Own
operations
Short
Annual Financial Report for the year 2025 – Section X.
Consolidated Sustainability Statement
36
consideration for the aging
workforce and how to transition
while still building new talent
pipelines.
Social Dialogue
There is a need for a robust
workforce engagement. In high-
risk sectors like energy, there is
often a limited opportunity for
workers to engage in decision-
making or participate in
collective bargaining. Enhancing
these rights can improve worker
satisfaction, safety, and overall
productivity. It is understood that
this topic will vary greatly by
country, and that will be
incorporated into the assessments.
Inconsistent engagement across the EPIF
group workforce on critical issues like job
security and the energy transition could lead
to weakened trust and reduced morale.
Failing to establish effective social
dialogue can result in operational
disruptions, increased absenteeism,
and higher turnover rates due to
employee dissatisfaction. Conflicts
may escalate, leading to costly
strikes, legal disputes, and regulatory
risks. These disruptions can cause
project delays, increasing
operational costs and impacting
EPIF’s performance and stability.
Potential
Own
operations
Medium, Long
Secure
Employment
As EPIF transitions away from
certain activities (e.g. lignite-
based heating plants), it can affect
job security of affected people.
Ensuring job stability and
security is vital to maintaining
workforce morale, especially as
the industry faces transitions due
to environmental regulations and
market shifts. Additionally, EPIF
should incorporate alternative
projects to enable the shifting
workforce to have new
opportunities through initiatives
like retraining.
As the industry faces transition due to
environmental regulations and market shifts,
employees may feel that their roles are at risk.
This could result in anxiety, lower morale and
financial instability for employees, reducing
job satisfaction and long-term workforce
loyalty.
Not Material
Actual
Own
operations
Short
Freedom of
Association
and Collective
Bargaining
There is a need for robust
workforce engagement. In high-
risk sectors like energy, there is
often limited opportunity for
workers to engage in decision-
making or participate in
collective bargaining. Enhancing
these rights can improve worker
satisfaction, safety, and overall
productivity. It is understood that
this topic will vary greatly by
country, and that will be
incorporated into the assessments.
Limited opportunities and support for the
EPIF workforce to engage meaningfully in
decision-making for processes that impact
them can lead to feelings of exclusion and
disempowerment, lowering their job
satisfaction.
Limited opportunities for workers to
engage in decision-making or
effective collective bargaining can
lead to increased turnover rates and
absenteeism, increasing recruitment,
training, and operational cost.
Potential
Own
operations
Medium, Long
Annual Financial Report for the year 2025 – Section X.
Consolidated Sustainability Statement
37
Measures
against
harassment
and violence
Clear reporting mechanisms and a
zero-tolerance approach are
necessary to prevent incidents
and ensure a supportive work
environment. Regulated
environments with formal
employment practices may work
as a deterrent to this risk.
Instances of workplace harassment or violence
may arise from inadequate prevention
measures, poor reporting systems or cultural
norms that contribute to such behaviour. This
could lead to a hostile work environment,
mental health issues and a reduced level of job
satisfaction.
Not Material
Potential
Own
operations
Short, Medium,
Long
S2 Workers in the Value Chain
Health and
Safety
Inadequate health and safety
protocols in high-risk operations
like plant maintenance, or heavy
manufacturing can lead to
accidents, injuries, or fatalities,
which could further result in
shutdowns, and legal liabilities
for suppliers which may further
impact production and service
offering. EPIF must ensure that
its suppliers are committed to
robust health and safety programs
to prevent accidents and
occupational hazards.
Some of EPIF's suppliers and contractors
operate in hazardous environments, such as
mining and logistics, either upstream or
directly at the EPIF sites. Poor safety
standards can lead to workplace accidents,
illnesses, and fatalities, negatively impacting
workers and their families while increasing
disruptions in EPIF’s supply chain.
If EPIF fails to secure proper health
and safety standards across its value
chain (for activities such as the use
of contractors for construction,
maintenance, transportation, or other
high-risk projects), workers facing
hazardous working conditions may
be injured seriously or fatally or
develop long-term health issues.
Actual
Upstream
and
downstream
Short
Training and
Skills
Development
A lack of adequate training for
workers in the value chain, for
e.g. those involved in energy
production, especially in the
adoption of new technologies or
safety procedures, can lead to
operational inefficiencies and
safety risks
Not Material
Training and skills development for
value chain workers ensures a
capable and efficient workforce,
improves productivity, and reduces
operational risks. Failure to ensure
adequate training for value chain
workers can lead to safety breaches,
project delays, higher operational
costs, and reputational damage for
EPIF.
Potential
Upstream
and
downstream
Medium, Long
Forced Labour
The presence of forced labor in
EPIF’s supply chain could lead to
immediate regulatory action,
legal liabilities, and significant
reputational harm, especially in
regions with poor labor oversight.
This is more significant for
suppliers in developing regions
(e.g., parts of Asia or Africa). In
these areas, forced labor practices
might go unnoticed, and a failure
to properly vet suppliers could
expose EPIF to serious legal
risks, including sanctions or
boycotts from international
partners.
Limited visibility and oversight in EPIF’s
value chain, particularly in upstream resource
extraction, increases the risk of undetected
cases of forced labor which exploits
vulnerable individuals, undermines human
rights, and damages communities.
Not Material
Potential
Upstream
Medium, Long
Annual Financial Report for the year 2025 – Section X.
Consolidated Sustainability Statement
38
Child Labour
The presence of child labor in
EPIF’s value chain, especially in
lower-tier suppliers or contractors
involved in raw material
extraction, can result in severe
legal, financial, and reputational
consequences. e.g. There is a
higher risk of child labor in the
supply chain where raw materials
or metals are sourced from
regions with weaker labor
regulations. Discovery of child
labor could halt supply chains
and lead to regulatory sanctions.
Certain upstream value chain activities (such
as resource extraction) may be more prone to
involve child labor due to weak labor
protections. Child labor denies children
education and endangers their physical and
mental health, creating reputational,
regulatory, and operational risks for EPIF.
Not Material
Potential
Upstream
Medium, Long
S3 Affected Communities
Freedom of
Expression
EPIF's business activities may
have implications on the local
communities which are located
near operations and facilities. If
EPIF does not have sufficient
mechanisms for these
communities to raise concerns,
and incorporate them where
feasible into future business
model and strategy decisions,
local communities are negatively
impacted and could have their
fundamental human right to
freedom of expression infringed
upon.
Denying freedom of expression can
significantly erode trust between communities
and EPIF, as individuals may feel that their
concerns and voices are dismissed or ignored.
This suppression not only stifles community
engagement and dialogue but also worsens
feelings of marginalization, ultimately
hindering social cohesion and jeopardizing
relationships with these communities,
increasing tensions and causing conflicts.
Not Material
Potential
Upstream
and
downstream
Medium, Long
S4 Consumers and End Users
Access to
products and
services
(Energy
reliability and
security)
Access to energy products and
services is critical for EPIF due to
its role in providing reliable,
affordable, and sustainable
energy. Ensuring equitable access
supports societal development,
meets regulatory and stakeholder
expectations, and strengthens
EPIF's position in the energy
transition while mitigating social
and reputational risks.
EPIF’s energy supply reliability and
affordability directly impact residential,
industrial, and governmental users. Any
interruptions in energy production or
distribution can directly impact consumers’
access to electricity, heating, or cooling,
particularly in regions heavily dependent on
EPIF’s infrastructure.
Not Material
Potential
Downstream
Short, Medium,
Long
Governance
G1 Business Conduct
Annual Financial Report for the year 2025 – Section X.
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Incidents,
prevention and
detection of
corruption and
bribery
including
training
(Anti-bribery
and
Corruption)
Corruption can severely damage
the company’s reputation, lead to
legal penalties, and disrupt
operations. Inadequate anti-
corruption measures could lead to
violations of international anti-
bribery laws, resulting in
substantial fines and legal
challenges. Corrupt practices
could result in unethical business
dealings, compromising the
integrity and sustainability of
operations.
Not Material
Without continuous and targeted
training programs, especially in
relation to procurement,
partnerships, and permitting
processes, there is a risk for EPIF of
corruption and bribery in its
operations. This can result in
reputational risks, leading to legal
penalties, substantial fines and legal
challenges affecting day-to-day
operations and profitability
especially in regions heavily affected
by corruption.
Potential
Own
operations
and
upstream
Medium, Long
Political
Engagement
EPIF’s operations require
engagement with regulatory
bodies and government entities,
necessitating transparent and
ethical political engagement
practices to avoid undue
influence and ensure compliance
with legal standards. Close
monitoring of political activities
is essential to maintain integrity.
EPIF is exposed to the risk that it
will be seen as advocating
(through its direct political
interactions or indirect via trade
initiatives) for fossil fuel lock-in
rather than credible contributor to
the energy transition. This can
jeopardize access to financing
from Tier 1 banks and investors
Not Material
If EPIF can be seen as advocating
(through its direct political
interactions or indirect via trade
initiatives) for fossil fuel lock-in
rather than credible contributor to
the energy transition, this can
jeopardize access to financing from
Tier 1 banks and investors, as well
as undermining public trust and
credibility of EPIF commitments.
Potential
Downstream
Short, Medium,
Long
Protection of
whistle-
blowers
EPIF needs to establish strong
protections for employees who
report safety violations,
environmental hazards, or
unethical behaviour. Effective
whistle-blower protection policies
can prevent incidents from
escalating and ensure compliance
with laws and ethical standards.
Without effective whistle-blower
protections, there is a risk of
underreporting issues, leading to
undetected safety violations,
environmental damage, or
compliance breaches that could
escalate into major incidents.
Failure to protect whistle-blowers
or address reported concerns
Ineffective whistle-blower protection
mechanisms for employees and external
parties could result in whistle-blowers facing
severe backlash, causing emotional distress,
and potentially leading to a culture of fear and
intimidation.
Not Material
Potential
Own
operations
Short, Medium,
Long
Annual Financial Report for the year 2025 – Section X.
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effectively can lead to
reputational damage and loss of
employee trust. Due to regulatory
requirements to implement a
Whistleblowing system according
to national requirements of EU
countries, a whistleblowing
system that does not fulfil the
regulatory requirements can lead
to financial penalties.
Annual Financial Report for the year 2025 – Section X.
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IRO-1 – Description of the processes to identify and assess material IROs
Our DMA has been performed to identify and assess sustainability matters that are material from either an
impact perspective (“inside-out”) or a financial perspective (“outside-in”). In 2024, we performed our first
ESRS-aligned double materiality assessment and we captured learnings that may be considered in future
methodological refinements. We screened all topics, sub-topics and sub-sub-topics (sustainability matters)
presented in the
Application Requirement (AR) 16 in ESRS 1
, distilled them down to a long list of potential
impact, risk and opportunity statements through stakeholder engagement sessions, and scored these
statements for materiality from the impact as well as financial perspective. We also considered whether
there were any sustainability matters specific to EPIF which were not covered in
AR 16.
This year, our DMA assessment continues to build on the Group’s ESRS-aligned approach and incorporates
updates relevant for 2025. The objective of our approach was to ensure that we identify the key
environmental, social, and governance (ESG) factors that we affect and that affect our operations, our value
chain, and our stakeholders.
In 2025, no additional new topics were identified and no change was needed in connection to the
divestments that occurred in 2025.
In 2024, we purposefully prioritized the consideration of negative impacts and risks over positive impacts
and opportunities. The same approach was followed for 2025.
Our DMA approach
Understanding the value chain
The DMA process started by mapping the value chain, which includes EPIF's own operations as well as the
upstream and downstream activities on which EPIF depends. We know there are limitations to the extent
of visibility we have into our end-to-end value chain and for purposes of this initial DMA exercise, we
primarily used existing sources, secondary data, as well as EPIF’s internal knowledge and experience
informed by the insights from the due diligence and other business processes of our operating companies.
This was especially true when identifying and assessing impacts related to “
S2 Workers in the Value
Chain”.
The impact on, and risks deriving from, key actors in the value chain was interrogated when identifying
IROs, with a particular emphasis on the areas where there could be a concentration of IROs with particularly
grave impacts (so-called “hot spots”), as well as the business dependencies EPIF has on various aspects
throughout the value chain.
IRO identification process
The DMA was performed at the Group level to create a more holistic and consolidated understanding of
material sustainability matters, ensuring that the most important issues are captured across the entire
organization. Where we identified unique IROs that are very specific or concentrated to a subsidiary or
portion of our business, these have been disclosed separately.
Our internal experience and understanding of our business and how we interact with people and planet
formed the basis of our DMA. Recognizing that sole reliance on internal knowledge could lead to bias and
potentially miss impacts which had not previously been considered, we supplemented internal stakeholder
Annual Financial Report for the year 2025 – Section X.
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engagement with external data sources to inform our understanding of impacts
provided useful insights into environmental dependencies, social impacts, and industry trends given that
the extent of potential impacts at points in the value chain outside of EPIF’s direct purview was not always
clear.
Stakeholder engagement:
We identified subject-matter experts in the business and group functions with insights into the topics and
deep knowledge of our day-to-day work for each of the ten ESRS topics. Care was taken to engage a diverse
and representative group of internal stakeholders across our operating companies. Several onboarding
sessions helped to gain a common understanding of the regulation and the objectives of the DMA exercise.
EPIF employed a three-phased engagement approach to ensure comprehensive input:
Core team assessment:
EPIF, with the support of an external consultant, facilitated several rounds of discussions with the EPIF
core ESG team and top management (including ESG Officer, CFO of EPIF and various other functional
representatives) to identify and interpret the AR16 sustainability matters and their relevance for EPIF and
the value chain, and to solicit any entity-specific IROs. These preliminary views were summarized in topical
presentations and represented the “long list” of potential IROs used to guide wider internal stakeholder
engagement.
Internal expert consultation
We
organized interactive materiality assessment workshops for every ESRS topic to receive feedback from
relevant internal subject-matter experts within the EPIF Group. Internal stakeholders were chosen for their
expertise, group responsibilities and proximity to the ESRS sustainability matters, as well as their ability to
provide value chain insights across the ESRS topical areas, ensuring no potentially material themes were
overlooked.
As certain stakeholder groups could not be directly reached or sampled in an unbiased way, proxies were
identified to represent them based on several criteria, such as their role in EPIF, their expertise in a certain
field, their understanding of operational processes and their relation to a certain stakeholder group (for e.g.
including HR function leads in operating companies as a proxy and informed voice representing the own
workforce EPIF employee base). We used our insights from the value chain mapping process we performed
to identify key internal proxies.
The outcome of these engagement sessions was used during the IRO scoring sessions that followed to
validate the alignment of the scoring against stakeholder views. The survey questionnaires also included
open-ended questions designed to identify any sustainability matters not identified in the long list.
We know that not all affected stakeholders can be identified or engaged in any single process and that
stakeholder identification and engagement is an iterative process. For example, nuances in regional
community concerns or supplier-specific risks may not be fully captured by internal proxies. As we
continue to review our DMA outcomes and perform further assessments to understand how these may
change over time, we will enhance this process as appropriate.
9
Water Risk Atlas; Climate Risk Data; Peer benchmarking of IROs; Previous impact materiality exercise outcomes and GRI; and external market
and regulatory reports.
Annual Financial Report for the year 2025 – Section X.
Consolidated Sustainability Statement
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External stakeholder validation
As part of the DMA, we engaged with upstream financial partners as well as non-profit organizations to
develop a more comprehensive understanding of the IROs across EPIF’s value chain and to invite additional
perspectives on the insights from our internal analysis. Engagement with upstream financial partners
allowed us to assess their sustainability expectations, risk tolerance, and alignment with environmental,
social, and governance priorities, particularly in relation to financing energy projects and supply chain
activities. These engagements strengthened our ability to address and score upstream impacts and ensure
alignment with best practices and stakeholder expectations.
Board approval
After the DMA results were aligned and validated with the internal and external stakeholders, they were
presented to the Board for acknowledgement. The DMA results are approved alongside the full
Sustainability Statement as part of the overall approval process.
Regular annual DMA review
To keep our DMA up to date, we run an internal dialogue each year to consider annual development in the
Group and other events and its impact on the identified IROs. The Board of EPIF is then updated on the
DMA outcome.
Scoring methodology
EPIF developed a quantitative scoring system for the identified IROs, aligned to the ESRS requirements,
to evaluate impact and financial materiality separately. All the IROs were scored at a gross level, and a
sustainability topic was deemed material if any of the IROs crossed the threshold from either a financial or
impact perspective. The first scoring of the IROs was carried out by the ESG core team within EPIF, in
collaboration with our external advisors in 2024.
Impact Materiality
Based on the ESRS requirements and implementation guidance, impact materiality was assessed based on
severity and likelihood of the impact. Severity was assigned a score on a scale of 1-5, with 1 representing
a minimal impact and 5 representing an absolute impact. The severity score was determined based on the
following parameters:
◾
Scale
◾
Scope
number of individuals that are or will be affected;
◾
Irremediability
the ability to restore the individuals or environment affected to a situation equivalent to their
situation before the negative impact (there is no irremediability for positive impacts).
For actual negative impacts, materiality is based on the severity of the impact, while for potential negative
impacts it is based on the severity and likelihood of the impact. Impact materiality was assessed over short,
medium, and long-term horizons, with actual negative impacts always being recognized as short-term and
potential negative impacts as medium or long-term.
Annual Financial Report for the year 2025 – Section X.
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Financial Materiality
Based on the ESRS requirements and implementation guidance, financial materiality was assessed based
on magnitude and likelihood of the risk. Magnitude was assigned a score on a scale of 1-5, with 1
representing an insignificant financial impact, and 5 representing a significant financial impact.
Magnitude was assessed across five risk dimensions: Strategic Risk, Operational Risk, Reputational or
Legal Risk, Client Risk, and Employee Risk. The risk dimension with the highest score was used to
determine the final magnitude of the IRO statement. The assessment of risk was performed primarily from
a qualitative perspective due to the immaturity of quantifiable sustainability thresholds. Where appropriate,
we also identified sustainability-related opportunities that could have a positive financial impact on our
business, although much of this exercise is captured in our climate transition plan in more practical terms.
With climate change being our most material topic, we performed a more in-depth climate risk
assessment. Following the identification of a long list of climate risks and opportunities, stakeholder
engagement with our operating companies, and scenario analysis, we qualitatively scored the risks and
opportunities on magnitude and likelihood. For magnitude, we considered exposure (the proportion of the
business impacted by the risk or opportunity), sensitivity (severity of the impact on the affected portion of
the business), and adaptive capacity (expected developments or measures taken by others (e.g.
governments) that lower the exposure and/or sensitivity for EPIF).
Thresholds and internal controls:
We
considered all sustainability matters (with the exception of climate change) with an impact or financial
materiality score of 3 and higher as material. For climate change, risks and opportunities the threshold was
a magnitude score over 2.5 and a likelihood score of more than 2.5 or a magnitude score above 3.5 and a
likelihood score above 1.5.
Our DMA process incorporates systematic controls to ensure completeness and reliability. These include:
Annual Financial Report for the year 2025 – Section X.
Consolidated Sustainability Statement
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Process Controls:
●
Initial Screening and validation by core ESG team
●
Cross-referencing with AR-16 sub-topics to ensure completeness
●
Secondary alignment with internal stakeholders, and subject matter
experts
●
Validation by external stakeholders including supply chain experts
and financial institutions
●
Board-level approval of materiality outcome and results
Documentation controls:
●
Clear audit trail for the materiality assessment
●
Documentation of each step followed and outcomes
●
Detailed records of scoring decisions and rationales in a centralized
DMA methodology and scoring document
Limited calibration across topics, with rationale, took place before finalizing the assessment.
Integration of impact and risk assessment into EPIF’s overall risk management process, and general
management process:
In 2024, EPIF carried out its first DMA for purposes of its sustainability reporting. Starting in 2025 and
going forward, we will evaluate the results of the DMA and review them on at least an annual basis to
ensure we actively capture the most relevant and material issues. The results of the assessment influence
EPIF’s strategic priorities, ensuring alignment between material topics and the Group’s sustainability goals.
Current effects on the business model
EPIF recognizes the significant effects of its material IROs across various domains of sustainability and
our business model as articulated in our IRO table.
Resilience against material IROs
EP
IF
risk management, and strategic investment. We have implemented sustainability initiatives that align with
international standards and prioritize the mitigation of climate-related risks and the efficient use of
resources. Investments in renewable energy infrastructure, emissions control technologies, and water
efficiency measures enhance our ability to adapt to changing regulatory environments and market
dynamics. Additionally, EP
IF
’s governance framework provides oversight of IRO-related risks by senior
leadership, embedding resilience into its operational and strategic decision-making processes.
Financial resilience is further supported by our focus on diversifying our energy portfolio and optimizing
operational efficiency. While the transition to low-carbon solutions requires substantial upfront investment,
EP
IF
reduces exposure to external risks over time. Moreover, our commitment to workplace safety, diversity,
Annual Financial Report for the year 2025 – Section X.
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and stakeholder engagement fosters strong stakeholder relationships, reducing the likelihood of disruptions
and ensuring a stable operational environment.
Despite these strengths, EP
IF
resilience by identifying location-specific action plans to mitigate risks where appropriate and continuing
to invest in innovative technologies and partnerships. Similarly, EP
IF
integration of sustainability metrics into financial planning and risk assessments to better address emerging
IROs. These ongoing efforts, coupled with our adaptive capacity and forward-looking approach,
underscores our commitment to building resilience against IROs while maintaining sustainable growth.
IRO-2 – Disclosure Requirements in ESRS covered by the undertaking’s
sustainability statement
For the full list of data points derived from other EU legislation, please see
ESRS 2 IRO-2
– List of
datapoints in cross-cutting and topical standards
ESRS Disclosure Requirements complied with in preparing this sustainability statement, please
see ESRS
2 IRO-2 Disclosure Requirements
outcome of the materiality assessment, following the outcome of the materiality assessment.
Policies MDR-
P
– Policies adopted to manage material sustainability matters
EPIF maintains a suite of policies governing our material sustainability topics, reflecting our strategic
objectives and guiding our actions to identify, manage, and mitigate material risks, impacts, and
opportunities. As part of our preparatory work under the CSRD and the DMA process, we have gained a
deeper understanding of the effectiveness, depth of coverage, and implementation maturity of our existing
policy framework across our OpCos as well as the areas where additional refinements are required. ESRS
datapoints not specifically addressed in this report are subject to ongoing assessment and may be
incorporated in future enhancements of the reporting framework.
Current policy objectives
The
EPIF
Master Sustainability Policy
outlines several core objectives, including:
1.
Decarbonization:
emissions and transitioning to renewable energy sources.
2.
Ethical practices:
behavior across the organization.
3.
Stakeholder engagement
: Fostering strong relationships with employees, communities, and business
partners through open dialogue and collaborative initiatives.
Implementation and monitoring
We implement the EPIF
Master Sustainability Policy
●
Operating company alignment
: All operating companies are required to integrate the policy into
their local operations and adapt it to comply with national regulations and cultural contexts.
●
Performance tracking
: EPIF employs KPIs to measure progress against policy objectives,
including metrics for emissions intensity, employee matters, and health and safety.
Annual Financial Report for the year 2025 – Section X.
Consolidated Sustainability Statement
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●
Reviews and reporting
: Internal and external reviews validate adherence to policy objectives and
data collection processes.
Annual Financial Report for the year 2025 – Section X.
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Table 18 Sustainability-related policies
Policy Overview
The following table provides an overview of our current sustainability-related policies.
Key content | General objective | Related sustainability matters | Monitoring process | Scope of policy | Accountable role for implementation | Relevant third- party standards/initiatives | ||
Master Policy | ||||||||
The ESG Master policy comprehensive policy framework and basic guidelines for the EPIF Group as well as defining the core principles for sustainability related policies within the EPIF Group and its subsidiaries. | EPIF is conscious of its important economic, social and environmental impact. Along with proven business results, EPIF strives to respond to its key stakeholders’ priorities facing main challenges by providing the highest quality in its operations. | E1 Climate change adaptation E1 Climate change mitigation E1 Energy E2 Air pollution E2 Pollution of living organisms E5 Waste S1 Training and skills development S1 Health and safety S1 Diversity S1 Secure employment S1 Freedom of association and collective bargaining S1 Measures against violence and harassment in the workplace S2 Health and safety S2 Forced labor S2 Child labor S3 Freedom of expression S4 Access to products and services (Energy reliability and security) | *EPIF and its subsidiaries ensure the implementation and monitoring of the appropriate environmental standards and certifications (if required by law) relevant to their operations in the territories in which they manage their assets. * EPIF will monitor all resources usage and placing appropriate programs to improve their efficiency. | EPIF, their subsidiaries and companies controlled by EPIF Group on all operational levels | EPIF board and executive leadership. | Paris Agreement GHG Protocol Regulation Techniques (BAT) Council Directive 2011/70/Euratom EU waste hierarchy Local conservation goals. UN Global Compact | ||
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Environmental policy | |||||||||
Environmental policy principles that EPIF follows in terms of climate change and carbon footprint reduction, protection of biodiversity, Environmental Management System, environmental impacts of the product portfolio, customer efficiency, regulatory compliance, renewable and clean energy promotion, resource and energy efficiency, waste management and end cycle management. | EPIF is committed to conducting its business activities in an environmentally safe and responsible manner. To make sure that we uphold this commitment to the environment, all the impacts, whether positive or negative, are monitored and managed with the aims to decrease negative impacts and to improve positive imprint on the environment. | E1 Climate change adaptation E1 Climate change mitigation E1 Energy E2 Air pollution E2 Pollution of living organisms E3 Water discharges E5 Waste | * EPIF ensures this policy is upheld through continuously monitoring and modernizing its operations * Potential risks in planning and operations are monitored and evaluated on a regular basis * EPIF monitors resources used to improve its resource efficiency | EPIF, their subsidiaries and companies controlled by EPIF Group on all operational levels | EPIF board and executive leadership | Paris Agreement GHG Protocol (BAT) Council Directve 2011/70/Euratom EU waste hierarchy Local conservation goals. | |||
Biodiversity Policy | |||||||||
Biodiversity policy ensures that potential risks in planning and operations are monitored and evaluated on a regular basis. These activities are complemented by consultations with experts and communication with local communities, which leads to a mitigation of potential negative impacts. The Policy also specifies the EPIF goal not only to minimise the negative impact, but also to play an active role in supporting and protecting ecosystems and endangered species. Encouragement of economic and social development, respect for the environment and promotion of biodiversity are paramount corporate values for EPIF, | Encouragement of economic and social development, respect for the environment and promotion of biodiversity are paramount corporate values for the EPIF, informing all of its actions. | E4 Biodiversity loss as a result of Climate Change E4 Land degradation E4 Land-use change, fresh water-use change and sea-use change E4 Direct exploitation E5 Waste S3 Freedom of expression | *EPIF Group Companies ensure implementation and monitoring of the appropriate environmental standards and certifications (if required by law) relevant to their operations in the territories in which they manage their assets. *Integrates the preservation of biodiversity into the strategy of the EPIF Group, including consideration thereof in decisions on the construction, operation and decommissioning phases of infrastructure projects. * EPIF incorporates this preventive approach into the environmental and social impact assessments of new infrastructure projects, particularly in natural areas that are sensitive, biologically diverse or protected. * Integrating Biodiversity into the Environmental Management Systems (EMS) to identify risks and to ensure that the environmental performance meets the requirements of the regulation. | EPIF, their subsidiaries and companies controlled by EPIF Group on all operational levels | EPIF board and executive leadership | Convention for Biological Diversity (CBD) Nagoya Protocol | |||
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Operational policy | |||||||||
Operational Policy commitments in regard to the behavior that has a direct or indirect impact on the safety and efficiency. This Policy concerns the basic principles we follow in matters of the access to basic services to our customers in the form of affordable, high quality and reliable electricity, gas and heat supply, health and safety management of our employees, contractors, customers and all stakeholders, reliable, quality and environmentally safe operation of facilities, social impacts of our products, innovation and modernization in all our business areas of generation, transmission and distribution, emergency management, stakeholder engagement and responsible marketing. | Operational policy the basic principles we follow in matters of the access to basic services, health and safety management, environmentally safe operation of facilities, social impacts of our products, innovation and modernization, emergency management, stakeholder engagement and responsible marketing. | S1 Health and safety | * EPIF Group aims for maintaining or obtaining its certification standards at minimum meeting the regulatory requirements, if feasible also on par with international levels at major group companies. * Updating information on the safety risks associated with its services and operations. * Renovates its transmission and distribution networks in compliance with legal requirements and regulation * Developing business models that contribute to local social development and improve people’s quality of life * Updating and improving EPIF’s emergency plans * Setting an open constructive dialogue with its key stakeholders to understand expectations to EPIF's business decisions | EPIF, their subsidiaries and companies controlled by EPIF Group on all operational levels (The subsidiary companies follow at minimum these main principles and implement them in their own binding internal policies in their country) | EPIF board and executive leadership | |SO 145001 OSHA standard | |||
Procurement policy | |||||||||
Procurement policy the EPIF Group upholds its commitment, thorough screening of a material supplier is carried out, to make sure that the supplier is conscious of the stated principles and we encourage the suppliers to share our commitments to law and regulation, ethical business conduct, human rights and working conditions, health and safety, and environmental protection. In addition, the EPIF Group expects its suppliers to uphold the eight fundamental Conventions of the International Labor Organization | Procurement policy committed to conducting its business activities in a transparent and operationally excellent manner and expects the same of its suppliers. | S2 Health and safety S2 Training and skills development S2 Forced labor S2 Child labor | * EPIF Group monitors compliance with local external regulations on procurement processes, thorough screening of a material supplier will be carried out * Suppliers will ensure that worker's working environment complies with all health and safety standards required by the legislation and where feasible to permanently monitor the safety and health of employees, business partners and the communities surrounding it. * In 2025, guidance on policy implementation for operating companies was included. | EPIF, their subsidiaries and companies controlled by EPIF Group on all operational levels | EPIF board and executive leadership | Conventions of the International Labor Organization ISO 45001 certifications | |||
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Code of conduct | |||||||||
The Code of Conduct defines EPIF's standards of behavior, managed as a practical value for our day-to-day business and making all employees personally responsible for the performance and reputation of the Group, ensuring a good relationship with all our stakeholders. | The EPIF Group Code of Conduct contains standards of behavior to be upheld by employees and is designed to ensure good relationships with all stakeholders. | S1 Health and safety S1 Secure employment S1 Diversity S1 Freedom of association and collective bargaining S2 Health and safety S2 Forced labor S2 Child labor S3 Freedom of expression S4 Access to products and services (Energy reliability and security) | * EPIF Group ensures that all working facilities and assets are fully covered at the minimum by the quality standards given by the respective laws and regulations, and where feasible permanently monitors the safety and health of employees | EPIF, their subsidiaries and companies controlled by EPIF Group on all operational levels | EPIF board and executive leadership | Ten Principles of the United Nations Global Compact ISO 45001 certifications | |||
Tax Governance Policy | |||||||||
The Tax Governance policy compliance with all applicable tax laws and regulations within the framework of fulfilling the corporate interest and supporting a long-term business strategy that avoids tax risks and inefficiencies in the implementation of business decisions. To address the risk of tax non-compliance, as well as other identified tax risks, material transactions are assessed by approved tax experts. The purpose of the Policy is to ensure compliance with tax rules in various countries and territories in which the Group operates, prevention and reduction of significant tax risks and strengthening of the relationships with tax authorities. | Tax Governance Policy ensures compliance with tax rules in various countries which the Group operates, prevention and reduction of significant tax risks and strengthening of the relationships with tax authorities. | N/A | N/A | EPIF, their subsidiaries and companies controlled by EPIF Group on all operational levels, within the countries and territories of operation. | EPIF board and executive leadership | N/A | |||
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Equity, diversity and inclusion policy | |||||||||
Equity, diversity and inclusion policy is to provide equality, fairness and respect for all in our employment; not unlawfully discriminate because of the characteristics of age, disability, gender reassignment, marriage and civil partnership, pregnancy and maternity, race, colour, nationality, ethnic or national origin, religion or belief, sex and sexual orientation; oppose and avoid all forms of unlawful discrimination, and Promote equal opportunity amongst all company employees. | Equity, diversity and inclusion policy provide equality, fairness and respect for all in our employment and to oppose and avoid all forms of unlawful discrimination. | S1 Training and skills development S1 Diversity S1 Secure employment S1 Measures against violence and harassment in the workplace S2 Training and development | *EPIF monitors the make-up of the workforce in encouraging equality, diversity and inclusion, and in meeting the aims and commitments set out in the Policy. | EPIF, their subsidiaries and companies controlled by EPIF Group on all operational levels | EPIF board and executive leadership | Ten Principles of the United Nations Global Compact ISO 45001 certifications | |||
Asset Integrity Policy | |||||||||
Asset Integrity Policy principles and practices that govern decisions on asset management at EPIF to ensure that EPIF responsibly manages asset integrity risks across all facilities that we design, construct or operate and thus accomplishes its mission of providing high-quality products and services in a sustainable and safe environment. | Asset integrity policy outlines the principles and practices that govern decisions on asset management at EPIF to ensure that EPIF responsibly manages asset integrity risks across all facilities that we design, construct or operate. | E1 Climate change adaptation E1 Climate change mitigation E1 Energy E3 Water withdrawals E3 Water discharges | *Monitor and review the effectiveness of asset management processes and the wider asset management system in supporting the delivery of strategic objectives. | All assets owned by EPIF and all aspects of each asset, including design, construction, operation, maintenance and disposal. EPIF may rely on natural assets or other assets it does not own. Where operations are supported by these assets, EPIF will work collaboratively with the asset owners. | EPIF board and executive leadership | N/A | |||
Anti-corruption and anti-bribery Policy | |||||||||
Anti-corruption and anti-bribery policy all applicable Anti-Corruption and Anti-Bribery laws and regulations of all the countries in which we do or intend to do business, and to ensure our business is conducted in a socially responsible manner. | Anti-corruption and anti- bribery policy that the acceptance of gifts and donations including charitable donations is regulated. Receipt or payment of bribes including facilitation payments is strictly prohibited. | G1 Incidents, prevention and detection of corruption and bribery including training | * EPIF Group Company ensures that a regular review of the implementation of this Policy is conducted, considering its suitability, adequacy and effectiveness, and that any identified improvements are made as soon as possible. * EPIF Group Company ensures that internal control systems and procedures are subject to regular audits to provide assurance that they are effective in countering Bribery and Corruption. | EPIF, their subsidiaries and companies controlled by EPIF Group on all operational levels | EPIF board and executive leadership | EU anti-money laundering directives | |||
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KYC Directive | |||||||||
KYC Directive that seeks to verify and validate the business partner’s identity and suitability in order to support EPIF’s actionable decisions to mitigate financial, regulatory and reputational risk and ensure regulatory compliance. It also sets basic principles for division of powers and responsibilities concerning the performance of the KYC procedure according to the KYC Directive among EPIF Group Company’s departments and bodies including the four eyes principle. | KYC Directive EPIF Group Company to implement measures and processes concerning business partner’s identification and suitability that are necessary and appropriate with regard to the respective EPIF Group Company’s profile and character of its activities and business relationships into its internal processes and rules of operations. | S2 – Workers in the value chain | *EPIF Group Company collects information and data from public and other reliable sources or completion of a KYC Questionnaire by a prospective business partner and provision of necessary documentation * EPIF Group Company evaluates and verifies the information and data, checks whether the business partner is subject to sanctions * In 2025, the KYC Questionnaire was extended, enabling operating companies to tailor its extent to the respective supplier | N/A | N/A | N/A | |||
Sanctions Policy | |||||||||
Sanctions Policy compliance of EPIF with sanctions, i. e. to ensure that EPIF and/or its employees does not establish or maintain business relations or process any transactions for/on behalf of sanctioned persons, entities or countries. | EPIF is committed to avoiding trade with sanctioned parties or anyone in sanctioned countries. | N/A | N/A | *EPIF Group Company ensures that internal control systems and procedures are subject to regular audits to provide assurance that they are effective in preventing a breach of Sanctions | EPIF, their subsidiaries and companies controlled by EPIF Group on all operational levels | EPIF board and executive leadership | |||
Anti-trust law Policy | |||||||||
Anti-trust law policy compliance with all applicable Anti- Trust Law of all the countries in which we do or intend to do business, and to ensure our business is conducted in a socially responsible manner. The Policy aims to ensure that all employees observe Anti- Trust law and are aware of serious consequences that any infringement of Anti-Trust law may have. | All employees and directors are obliged to observe anti- trust laws and are aware of serious consequences that any infringement of anti- trust laws may have. | N/A | N/A | *EPIF Group Company ensures that internal control systems and procedures are subject to regular audits to provide assurance that they are effective in preventing an infringement of Anti- Trust Law | EPIF, their subsidiaries and companies controlled by EPIF Group on all operational levels | EPIF board and executive leadership | |||
Annual Financial Report for the year 2025 – Section X.
Consolidated Sustainability Statement
54
Whistleblower Policy | |||||||||
The Policy’s purpose is to provide employees the means of reporting compliance concerns and compliance violations without fear of retaliation or retribution, and to set out the way in which any serious concerns that they have may be raised and how these concerns are dealt with including a model procedure to be followed. | EPIF believes that speaking out and reporting serious concerns is essential for safety, legal and financial compliance and ultimately a successful business. | G1 Protection of whistle blowers | *Adoption of a detailed procedure for investigating of concerns. A model Procedure attached in the policy (Annex 1) which may be appropriately adapted to reflect the EPIF Group Company structure. | All Employees in all countries and territories that EPIF Group operates in and relates to reporting in Good Faith of a serious concern about any suspected, actual or potential violation of law, regulations or EPIF Group Policies. | EPIF board and executive leadership | N/A | |||
Anti-financial crime policy | |||||||||
Anti-financial crime policy principles for preventing financial crime, including the KYC procedure, the “four-eyes” principle and limits on cash payments and highlights the importance of business partner due diligence. The Policy also covers communication, training, concern raising, monitoring and review, as well as sanctions. | Anti-Financial Crime Policy our employees and our business partners from being exposed to financial crime covering money laundering and terrorist financing. | N/A | N/A | * EPIF Group Company ensures that internal control systems and procedures are subject to regular audits to provide assurance that they are effective in countering Financial Crime activities | EPIF, their subsidiaries and companies controlled by EPIF Group on all operational levels | EPIF board and executive leadership | |||
Annual Financial Report for the year 2025 – Section X.
Consolidated Sustainability Statement
55
Commitment to policy refinement
EPIF recognizes the need for continuous improvement of our policy framework, taking into account a
dynamic regulatory environment, shifting stakeholder expectations, and maturing governance and
operational context within EPIF.
We
ensure that policies are aligned with the disclosure principles set out
under ESRS and already consider other relevant upcoming regulatory requirements such as the CSDDD. In
2025,
we amended our
Procurement Policy
KYC Directive
subsidiaries that focuses on supplier due diligence to identify, assess, and mitigate impacts and risks across
our operations and supply chain.
Policy review and update process
To refine and enhance our policy framework, we follow a structured process, comprising at least the
following steps:
Gap analysis and benchmarking
We conduct a comprehensive review of existing policies against the topical MDR-P requirements to
identify gaps in content, alignment, and implementation mechanisms and include policy narratives to
address other sustainability regulatory imperatives as appropriate (e.g. stemming from CSDDD, the
Omnibus regulation, or otherwise). We also benchmark policies against peer organizations and industry
standards to identify best practices.
Stakeholder engagement
We engage with operating companies to gather detailed feedback on current policies and areas for
improvement, incorporating insights from the DMA process to ensure alignment with their priorities and
expectations and making sure the Group sustainability objectives are consistently interpreted.
Drafting and alignment
The work we have done to identify our material impacts, risks and opportunities and the stakeholder insights
we gather guides the extent of updates we make to our existing policy framework, in alignment with the
requirements articulated in the MDR-P topical standard requirements and our operational needs.
Review and approval
Should we make substantial changes to our policy framework and content, we subject the updated policies
to review by the governance bodies, including the HSE committee, Compliance committee, and the Board,
to ensure they meet strategic and compliance objectives.
Implementation and monitoring
We communicate updated policies to all relevant stakeholders, including employees, suppliers, and
operating companies through appropriate channels and as appropriate to the policy coverage. We also
monitor the effectiveness of the updated policies through regular reviews, stakeholder feedback, and
sustainability reporting metrics. We support effective implementation of updated policies through targeted
training interventions with appropriate process and data owners.
Annual Financial Report for the year 2025 – Section X.
Consolidated Sustainability Statement
56
Disclosure and transparency
EPIF reports on the progress of policy refinements and its implementation in its Sustainability statement.
Commitment to continuous improvement
EPIF is committed to maintaining a policy framework that reflects our sustainability priorities and evolving
regulatory requirements. The integration of insights from the CSRD reporting and our DMA process into
the refinement of policies strengthens our ability to address material topics effectively and transparently.
Actions MDR-
A
– Actions and resources in relation to material sustainability
matters
The focus of our Minimum Disclosure Requirements of Actions (MDR-A) is on significant actions that
support the achievement of sustainability objectives. As such, the specific actions that address material
topics are included as part of the topical disclosures below. These actions do not generally cover routine
operational activities we pursue to further our progress against these topics. Where no actions are described,
there are currently no action plans implemented in line with the ESRS disclosure requirements.
The actions we have articulated are designed to
either address potential adverse impacts, manage identified
sustainability-related risks, or build resilience and capitalize on opportunities to enhance sustainable
practices.
Expected outcomes
Our key actions are determined to deliver measurable benefits, including reduced environmental impacts,
enhanced social outcomes, and improved governance practices. Outcomes will be linked to performance
indicators.
Estimates of the operational expenditure (Opex) and capital expenditure (Capex) required to implement
actions are provided where the actions require significant resources to be implemented. We will review,
and update where required, our related KPIs to track the effectiveness of these actions.
Metrics MDR-M – Metrics in relation to sustainability matters
Our approach to disclosure of key metrics integrates topic-specific ESRS requirements to provide a
comprehensive view of our performance in managing sustainability matters. Specific metrics are disclosed
alongside the topical disclosures. By monitoring these metrics, we can evaluate progress, identify areas for
improvement, and ensure accountability in our sustainability practices.
To ensure the effectiveness and relevance of our sustainability initiatives, we apply metrics that are carefully
selected based on an assessment of the materiality of the information. This assessment evaluates the
significance of each metric in terms of its relevance and importance for decision-making by our
stakeholders, as well as its ability to reflect our performance on critical environmental, social, and
governance issues.
The metrics we employ are designed to demonstrate alignment with goals, provide measurable evidence of
how our actions support the achievement of our strategic sustainability objectives and enable clear
communication of our performance to stakeholders, ensuring transparency and trust. We are committed to
refining and evolving our metrics as necessary to maintain alignment with regulatory requirements, industry
best practices, and the evolving expectations of our stakeholders.
Annual Financial Report for the year 2025 – Section X.
Consolidated Sustainability Statement
57
Certain metrics disclosed in this report are submitted by operating companies to national authorities and
may be subject to external verification. These include mainly:
●
CO
2
surrender of emission allowances in the emissions trading registry
●
Methane emissions – as major methane-emitting companies are voluntary members of the Oil &
Gas Methane Partnership (OGMP), they adhere to the OGMP 2.0 reporting framework and report
their methane emissions annually
●
Stationary combustion sources (e.g. heating plants, compressor stations) are required to report air
emissions, water withdrawals and discharges, or produced and disposed waste to national
authorities
Other metrics are typically not subject to external verification.
Targets MDR-T – Tracking effectiveness of policies and actions through targets
Key targets related to sustainability
We have already embedded a structured approach to performance management, ensuring that our current
sustainability efforts are tracked. This reporting year enabled a deeper understanding of our material
sustainability-related impacts, risks, and opportunities through our DMA and we see the value of our
continued efforts to define clear objectives and key performance indicators (KPIs) to guide our progress.
EPIF understands that of all the material impacts which have been identified through the CSRD-aligned
DMA process, the greatest is climate change. As an energy provider, not only does EPIF have a
responsibility to ensure the provision of an essential utility service remains stable and viable for all, but
there is an expectation of accountability to reduce fossil fuel reliance and support the transition to net zero.
EPIF has already introduced the following decarbonization targets:
1.
Reduce CO
2
2.
Phase out coal by 2030
3.
Achieve carbon neutrality in respect of Scope 1 & 2 emissions by 2040
4.
Achieve net zero operations in respect of Scope 1 & 2 emissions by 2050
5.
Reduce methane emissions in line with the Global Methane Pledge, i.e. by 30% between 2020 and
2030
To date we have achieved the following reductions:
-
For the current EPIF scope (which considers the impact of entities divested in the reporting year),
the total Scope 1&2 CO
2
emissions were reduced from 1,024 thousand tonnes CO
2
year) to 505 thousand tonnes CO
2
Annual Financial Report for the year 2025 – Section X.
Consolidated Sustainability Statement
58
-
Methane emissions were already reduced by 47% between 2020 (base year) and 2025. EPIF has
therefore already met its reduction target and will continue to implement best practices to reduce
methane leakage.
We
continuously review whether setting specific Group-level targets for additional material topics would
be useful to progress our related impact, risks, and opportunity management efforts. We perform this review
by engaging with internal stakeholders, assessing data availability and reporting capabilities, and
benchmarking against industry peers. In the absence of specific Group-level targets for certain topics, we
monitor and assess the effectiveness of existing measures and actions through established operational
metrics. For full details on EPIF's targets, please see
Annual Financial Report for the year 2025 – Section X.
Consolidated Sustainability Statement
59
Environmental section
Annual Financial Report for the year 2025 – Section X.
Consolidated Sustainability Statement
60
2 ESRS E1- Climate change
EPIF acknowledges its crucial role in reducing emissions in our industry. We have concentrated our efforts
on enhancing energy efficiency, developing internal policies, and implementing programs within our
Group's operations.
EPIF continues to understand the extent to which climate change threatens the wellbeing of people and the
environment. The reality of climate change and the associated transitional and physical risks have been the
leading driver in increasing the intensity of our efforts to reduce GHG emissions and increase operational
efficiencies across the Group.
E1.GOV-3 - Integration of sustainability-related performance in incentive
schemes
As outlined in section
ESRS 2
, the CEO of EP Infrastructure who also holds the position of ESG Officer
receives an incentive linked to the achievement of sustainability goals. The remuneration has a variable
portion comprising 50% of the total remuneration which is linked to meeting financial targets (40%),
maintenance of an investment-grade credit rating (15%), ensuring robust risk management (15%), health &
safety considerations (15%) and ESG considerations (15%), where emission reduction efforts are
considered. There is no explicit percentage of the remuneration linked to climate related considerations.
E1-1 – EPIF’s Climate transition Plan
EPIF’s core strategy is to operate critical infrastructure, safeguard security of supply, and contribute to the
affordability of essential commodities, while concurrently reducing its GHG footprint and ensuring
readiness for renewable gases in the medium to long term. EPIF’s transition plan ensures that each asset
has a clearly defined role in a net zero energy system. Capital expenditures (Capex) are primarily directed
towards the replacement of emission-intensive assets such as lignite-fired heating plants, enhancement of
the power distribution network, gradual retrofit of gas distribution infrastructure with hydrogen-compatible
pipes, or reduction of methane leakage. In instances where the path to decarbonization is still developing,
Capex is limited to maintenance to ensure safe and reliable operation. No material Capex is spent on
expansion of infrastructure dedicated to fossil fuels without considering the subsequent transition away
from natural gas to renewable gases.
In April 2023, the Board of Directors of EPIF approved a comprehensive set of new decarbonization targets.
These targets are accompanied by long-term emission reduction pathways that have been developed for
each individual segment within the EPIF Group. The approval of these targets followed extensive
discussions with key management personnel of each subsidiary, to ensure that the emission pathways are
aligned with the business plans at the subsidiary level.
The primary objective when developing the Group’s decarbonization goals and emission reduction
pathways was to ensure alignment with scientific principles and the Paris Agreement’s aim to limit global
warming to no more than 1.5°C. To achieve this, EPIF aimed to align its pathway with the Science Based
Targets initiative (SBTi), which is widely regarded as the gold standard for science-based target setting.
However, EPIF is classified as an Oil & Gas Group by SBTi, which means it cannot currently seek
verification of its targets from SBTi. Nevertheless, EPIF endeavored to align the pace of its GHG emission
reductions with the SBTi’s absolute target criteria, which involves a target of reducing emissions by at least
42% by 2030 relative to the 2022 level. EPIF aims to surpass this requirement by targeting a 60% reduction
in emissions during the same period. Regarding its long-term objective, EPIF complies entirely with the
Annual Financial Report for the year 2025 – Section X.
Consolidated Sustainability Statement
61
Figure 1 Projected GHG emissions
SBTi’s requirement and is committed to achieving net zero emissions by 2050. The restatement and
calculation of GHG targets take into account structural changes within the Group.
The segmental pathways have been consolidated into a comprehensive pathway for the EPIF Group,
as depicted in the chart below. Furthermore, a detailed action plan has been formulated for each segment,
outlining the specific measures and strategies to be implemented to achieve the decarbonization targets.
These plans also include specific decarbonization levers.
The chart shows a major gradual decrease in GHG emissions between 2022, used as the baseline year, to
2025. This decline was primarily due to the reduced activity of lignite heating plants in response to
normalization of power spreads, lower utilization of gas compressors in the gas transit network driven by
lower gas flows following the halt of Russian gas transit via Ukraine, as well as reduced methane leakage.
Achieving the 2030 goal mainly depends on the successful transition of the remaining heating plants from
lignite to hydrogen-ready gas units and reduction of methane leakage which is supported by EU regulation
related methane.
The performance of each segment in meeting these targets is monitored by the respective segmental
directors, as well as the EPIF Board. Regular oversight and review mechanisms are in place to ensure that
progress is tracked, and necessary actions are taken to achieve the decarbonization goals set forth by EPIF.
Annual Financial Report for the year 2025 – Section X.
Consolidated Sustainability Statement
62
EPIF’s exposure to locked-in GHGs and decarbonization measures
All
EPIF
assets
related to
fossil
fuel emissions
are potentially
exposed to
locked
-
in GHG emissions
.
EPIF
addresses all key fossil asset groups in its transition plan.
Coal-fired generation
EPIF has commenced conversion of its lignite-fired combined heat and power plants in the Czech Republic
into a balanced mix of hydrogen-ready CCGT units, waste-to-energy plants, which will be complemented
by existing biomass units. In March 2025, EPIF divested two heating plants, significantly reducing its
exposure to coal. The projects will ensure that EPIF will phase out coal by 2030, while striving to complete
the phase out already in 2028/2029.
Gas-fired generation
Following the coal phase out in district heating, natural gas shall constitute the main fuel with a crucial role
for heat and power generation. EPIF acknowledges that natural gas shall have a temporary role and
ultimately be replaced with renewable gases. EPIF conducts efforts to stimulate the market adoption of
renewable gases such as hydrogen or biomethane. Nevertheless, a potential delayed availability and
affordability of green gases could make the transition of EPIF's assets to low carbon power generation not
economically feasible in the coming years.
Gas infrastructure
EPIF currently advances hydrogen readiness across its midstream and downstream gas infrastructure. EPIF
aims to primarily repurpose existing infrastructure to the extent possible to minimize Capex requirements
and limit development of additional infrastructure. We are exploring establishment of two parallel systems:
one dedicated hydrogen grid shaped around the initial industrial adopters in key clusters, and a natural gas
grid to meet the continued demand from consumers transitioning more gradually away from natural gas. In
addition, the natural gas in the network is projected to be gradually replaced by biomethane, further
contributing to decarbonization of the gas mix. Successful execution of this transformation relies on the
development of a large-scale market for renewable gases, where EPIF aims to facilitate the connection
between producers and consumers. However, development of the planned hydrogen infrastructure might
face delays due to an absence of market incentives, regulatory uncertainties, or a lack of commitment from
broader stakeholder groups to renewable gases.
E1-3 section
projected GHG emissions reductions per lever. EPIF’s direct decarbonization levers align with EPIF’s
target to reduce Scope 1 & 2 CO
2
energy in the wider energy system. Furthermore, the table includes planned Capex to realize the GHG
emission reduction.
EU Taxonomy-aligned activities and Capex related to fossil fuels
In the reporting period, EPIF’s EU Taxonomy-aligned activities included the operation of the power
distribution network, district heating networks, heat and power generation from biomass and other smaller
renewable generation sources. Capex aligned with the EU Taxonomy includes the same activities and also
10
EPIF’s strategy and business model.
Annual Financial Report for the year 2025 – Section X.
Consolidated Sustainability Statement
63
investments into the gas distribution and transit networks aligned with hydrogen adoption and development
of hydrogen-ready cogeneration heating plants.
In 2025, 66% of Capex was spent on Taxonomy-eligible activities, while 53% was fully aligned. Based on
the Capex plan of EPIF communicated in section
E1-3 Climate-related actions
, the share of eligible Capex
is anticipated to remain above 60% in the medium term.
In 2025, coal-related Capex was limited to necessary maintenance and amounted to EUR 13 million (5%
of total Capex), gas-related Capex represented mainly gas cogeneration heating plants (EUR 23 million,
8% of total Capex) and gas midstream and downstream infrastructure (EUR 102 million, 38% of total
Capex). Gas-related Capex was spent largely on assets where future alignment with renewable gases is
envisaged. No material Capex has been allocated to oil-related economic activities.
Green finance framework
In August 2023, EPIF issued its inaugural Green Finance Framework to link future financing to execution
of its transition plan. Establishing a framework for green financing represented a logical step for EPIF to
increase its transparency and accountability towards investors and financing banks. We believe this step
was helpful for all stakeholders to better understand our ESG ambitions and will contribute to the
diversification of our investor base. The framework received second party opinions (“SPO”) from Shades
of Green, now a part of S&P Global which assigned a Light Green shading to the framework and
Sustainable Fitch which assigned a score of “Good” to the framework. Both SPO providers consider the
framework as aligned with the ICMA Green Bond Principles. In March 2024, EPIF issued its first green
instruments, green Schuldschein loans. Strong interest from the investor community indicated acceptance
of EPIF’s approach to energy transition and consequently also increased the original minimum volume of
EUR 100 million to the final amount of EUR 285 million. The proceeds were allocated to projects aligned
with the green financing criteria in the framework.
In November 2025, EPIF established a Euro Medium Term Note (EMTN) Programme, under which it
issued its inaugural green bond of EUR 600 million, followed by another EUR 500 million green bond
issuance in January 2026. Proceeds will be allocated to eligible green projects in accordance with EPIF’s
Green Finance Framework.
EPIF meets all requirements for non-exclusion from the EU Paris-aligned Benchmarks in accordance with
the exclusion criteria of
Commission Delegated Regulation (EU) 2020/1818
Standards Regulation), specifically:
●
Group is not involved in any activities related to controversial weapons.
●
Group is not involved in the cultivation and production of tobacco.
●
Group has not been found in violation of the United Nations Global Compact (UNGC) principles
or the OECD Guidelines for Multinational Enterprises by benchmark administrators.
●
Group does not derive any revenues from exploration, mining, extraction, distribution or refining
of hard coal and lignite.
●
Group derives marginal revenues (< 0.1%) from the exploration, extraction, distribution or refining
of oil fuels (as part of gas storage operations), i.e. significantly less than 10%.
Annual Financial Report for the year 2025 – Section X.
Consolidated Sustainability Statement
64
●
Group derives 35% of its revenues from the exploration, extraction, manufacturing or distribution
of gaseous fuels (specifically from gas transit, storage and distribution), i.e. less than 50%.
●
Group derives 2% of its revenues from electricity generation with a GHG intensity of more than
100 gCO
2
eq/kWh (specifically power produced from lignite at its heating plants), i.e. less than
50%.
Governance of the climate transition plan
EPIF’s Board of directors approves sustainability reports with the decarbonization targets (including the
transition plan), the underlying decarbonization strategy and Capex plans that underpin the emission
reduction goals, with each segment’s directors responsible for preparing their respective Capex plans.
EPIF’s progress update in implementing the transition plan
In the reporting year, EPIF achieved significant progress in converting its lignite-fired heating plants in the
Czech Republic. The decarbonization of two heating plants operated by Elektrárny Opatovice and United
Energy will be completed outside EPIF under a new parent company that is an affiliated entity. While
within EPIF, PLTEP continued progressing the development of new CCGT technology, which will support
the transition from coal-based generation to lower-emission energy sources and enhance the flexibility of
the energy system. EPIF remains a frontrunner in delivering decarbonization projects in the Czech
Republic.
In the gas transit and storage segments, EPIF continued advancing hydrogen-readiness initiatives, which
have been granted IPCEI status, recognizing their economic and societal importance. Within the gas
distribution network, the retrofit of older steel pipelines with polyethylene pipes progressed further,
enhancing hydrogen compatibility while reducing methane leakage. In the electricity distribution network,
EPIF continued investing in resilience and in the capacity to integrate an increasing share of intermittent
renewable energy sources.
11
the heat generation. The heat distribution networks are fuel-neutral and distribute heat from more sources (including biomass or municipal waste).
The revenues are also reported as aligned with the EU Taxonomy. These revenues are therefore not included in the calculation.
Annual Financial Report for the year 2025 – Section X.
Consolidated Sustainability Statement
65
E1.SBM-3 Material R&Os and their interaction with strategy and business
model
EPIF acknowledges the importance of understanding its climate-related risks and opportunities (R&Os) as
they could affect EPIF’s strategy and business model. Therefore, EPIF reviews climate-related risks for its
activities and assets continuously with formal regular reporting to the HSE committee and Board of
Directors, and reviews what response measures, such as climate mitigation and adaptation actions, are
appropriate to address these risks. Furthermore, EPIF continuously scouts for opportunities that may arise
from the transition to a low carbon economy.
EPIF
conducted
a resilience analysis
against the
climate
R&Os
prioritized
in the
R&O assessment
.
EPIF
uses the outcome of the resilience analysis to increase its resilience against these climate R&Os, and to
inform stakeholders about how EPIF manages its prioritized R&Os. Section
provides the results of the resilience analysis.
Resilience analysis methodology
As part of preparing its inaugural 2024 ESRS-complaint Sustainability Statement, EPIF conducted a
resilience analysis to assess whether its prioritized climate-related risks and opportunities - and the
associated adaptation and mitigation measures - are aligned with its overall strategy and business model
(SBM). EPIF analyzed climate scenarios over EPIF’s defined time horizons to assess the implications of
each R&O to EPIF's SBM. EPIF’s resilience analysis is based on financial effects resulting from climate
R&Os. EPIF assessed these financial effects quantitatively and qualitatively:
●
Quantitative assessment
: EPIF assessed exposure of assets and net revenues to two types of
physical risks
and one transition risk
,
for
which the uncertainties and limitations are noted in
the
E1-9 method sections
●
Qualitative assessment
: Several transition R&Os are assessed qualitatively, as these R&Os could
not be assessed quantitatively due to their complexity and the high uncertainty of related key
variables underpinning these risks.
EPIF incorporated planned mitigation and adaptation actions in the resilience analysis. These climate
actions, together with EPIF’s other risk response measures, inform the overall ability of the EPIF to adjust
or adapt its strategy and business model to the R&Os. Risk response measures are described for each
prioritized R&O in the resilience analysis results (section
).
The scope of the resilience analysis includes all subsidiaries within EPIF that can experience noteworthy
effects from physical risks and transition risks/opportunities to EPIF.
●
Regarding physical risk, EPIF assessed the risks affecting EPIF’s own operations, with the
upstream/downstream value chain being excluded from the analysis as EPIF deprioritized these
12
13
14
15
16
E1-9 – Financial effects from climate-related risks and
17
E1-3 – Climate-related actions
lists the climate mitigation and adaptation actions
Annual Financial Report for the year 2025 – Section X.
Consolidated Sustainability Statement
66
risks in the IRO assessment
. The deprioritization is supported by a diversified supply chain with
limited dependence of EPIF on specific physical infrastructure within its supply chain where
damage would materially impact EPIF business. Within EPIF’s own operations, the scope of
assessment is further described in
E1-9 section
●
Regarding transition risk, the scope includes EPIF’s subsidiaries.
The resilience analysis covers the short- (FY2026), medium- (2027-2031) and long-term (2032-2060) time
horizons
risks/opportunities that could impact both EPIF's own operations (physical/transition) and/or value chain
(transition). EPIF used the “shared socioeconomic pathway” (SSP) scenarios
SSP3-7.0 “Regional rivalry”, and SSP5-8.5 “Fossil fueled development” to capture the range of transition
and physical R&O extremes within scenario analysis. The compatibility of climate scenarios used in the
scenario analysis with critical climate-related assumptions in EPIF’s financial statements has not been
assessed, as such critical climate-related assumptions are not yet present in EPIF’s reporting.
While the aforementioned SSP scenarios are widely adopted in the climate community to plan for climate
change mitigation and adaptation, the SSPs
have their limitations
.
EPIF
is aware of the scenario
limitations and uses the SSP scenarios as a tool to envision different futures, rather than to assume that the
scenario will exactly happen as projected. EPIF chooses three out of five SSP scenarios to cover the full
range of possible R&Os regarding transition and physical R&Os. Moreover, EPIF used information from
additional scenarios from other sources, such as the International Energy Agency (IEA), in alignment with
the SSP scenarios.
Implications of prioritized R&Os for EPIF’s strategy and business model
This section provides the results of the resilience analysis of EPIF’s strategy and business model concerning
its prioritized climate-related R&Os. EPIF considers its assets and business activities at risk when defining
or reviewing its strategy and planned adaptation/mitigation actions. EPIF also reviews the R&Os when
making investment decisions.
●
EPIF addresses assets/activities affected by physical risks through adaptation actions such as
increasing the resilience of our electricity distribution grid against extreme weather events, and
contingency plans for critical infrastructure affected by extreme weather events.
●
EPIF addresses assets/activities affected by transition risks through mitigation actions such as
phasing out coal to reduce EPIF’s GHG emissions or focusing on operating activities vital for the
energy sector transition which are often supported by regulatory frameworks or government
funding in the form of investment or operating subsidies.
●
EPIF includes transition opportunities in EPIF’s decision-making, as successful implementation of
opportunities causes benefits for both EPIF’s market competitiveness as well as our sustainability
goals.
18
19
O’Neill et al. (2020)
20
from physical and transition R&Os from these scenarios to be within the range of the other SSP scenarios.
21
See E1-3 Table 25
22
See E1-3 Table 24
for the list of mitigation actions
Annual Financial Report for the year 2025 – Section X.
Consolidated Sustainability Statement
67
Table 19 Acute physical climate risk
EPIF's current strategy and business model already integrate climate-related risks and opportunities, and
EPIF remains flexible to further adapt to climate change across the short-, medium-, and long-term time
horizons. EPIF’s strategy considers various climate scenario narratives that capture the extremes from
physical and transition risk, ensuring resilience to transition and physical climate developments.
●
EPIF is continuously seeking to improve its ability to adapt to climate-related R&Os, including
securing ongoing access to finance at an affordable cost of capital; redeploying, upgrading or
decommissioning EPIF’s existing assets; and shifting EPIF’s products and services portfolio.
●
EPIF created its Green Financing Framework (GFF) to present EPIF’s sustainability ambitions
transparently to investors to aid their decision-making. The GFF is verified by reputable external
rating agencies. Upon issuance of a green finance instrument, the allocation of proceeds is subject
to limited assurance from an audit company.
Risk | Increased operational impacts from acute physical climate events | |||
Type, subtype | Physical risk, acute | |||
Cause | Global warming increases frequency and severity of climate-related acute extreme weather events (e.g. floods, etc., see below) | |||
Effects | Increased impacts to assets that are exposed the following acute hazards ◾ Flooding, e.g., buildings inundated ◾ High wind speeds, e.g., electricity poles blown over ◾ Cold waves, e.g., power lines failing after ice-forming ◾ Wildfires, e.g., electricity poles catching fire ◾ Lightning, e.g., electricity poles struck by thunder ◾ Increased expenses due to asset damage, higher insurance premiums, fines from outages ◾ Decreased revenues due to operational downtime ◾ Asset devaluation | |||
Scope | All physical assets | |||
Value chain | Operational | |||
Time horizons | Short-term (FY2026) | Medium-term (2027-2031) | Long-term (2032-2060) | |
Current and anticipated effects | Orderly transition scenario (SSP1- 2.6) | ◾ SSD’s electricity grid is exposed to cold waves and wind risks. ◾ A small share of critical assets exposed to flood risk. ◾ EPIF found no exposure to other risks related to the hazards included in the physical risk assessment scope. | ◾ Similar as in short- term. | ◾ SSD’s electricity grid is less affected by cold waves due to increased temperatures but experiences a slight increase in high wind speeds. ◾ Regarding the critical assets exposed to flood risk higher flood depths increase the severity of negative financial effects. |
23
24
once in a 100 years) in a given year and climate scenario. Further details in
25
Table 39
the hazards excluded from the scope.
26
E1-9 – Financial effects from climate-related risks and opportunities
financial flows and hazards included in scope for physical risk exposure.
27
power plants in Italy.
28
flood depth causes worse impacts (increase in severity).
Annual Financial Report for the year 2025 – Section X.
Consolidated Sustainability Statement
68
Table 20 Chronic physical climate risk
High carbon scenario (SSP5- 8.5) | ◾ Same as in orderly transition scenario | ◾ Similar as in short- term. | ◾ SSD’s electricity grid exposure to: ◾ Cold wave risk reduces significantly due to intensified global warming ◾ Wind speed risk increases more than in the orderly transition scenario ◾ Assets exposed to flood risk are more severely affected, as they experience higher flood depths compared to the orderly transition scenario. | |
Response measures | Current | ◾ EPIF scans critical assets against climate projections to identify assets exposed to acute physical climate impacts. EPIF’s infrastructure subsidiaries have contingency plans to respond effectively to acute physical climate impacts. ◾ EPIF’s subsidiary SSD implements adaptation actions resilient to extreme weather events. | ||
Planned | ◾ EPIF will evaluate whether any additional adaptation actions for assets exposed to acute risk are appropriate. | |||
Risk | Increased operational impacts from chronic physical climate events | |||||
Type, subtype | Physical risk, chronic | |||||
Cause | Global warming causes more severe chronic events such as higher temperatures and more frequent and severe droughts | |||||
Effects | Increased impacts to assets that are exposed following chronic hazards ◾ Water stress, e.g., plants not able to operate due to their cooling water requirements being constrained by low river levels ◾ Higher temperatures, e.g., plants have lower energy efficiency due to higher temperatures ◾ Increased expenses due to asset damage, higher insurance premiums, higher fuel costs due to lower plant efficiencies, unplanned outages due to cooling water shortage, increased water prices, fines from accidentally breaching water temperature limits ◾ Decreased revenues due to operational downtime ◾ Asset devaluation | |||||
Scope | All physical assets | |||||
Value chain | Operational | |||||
Time horizons | Short-term (FY2026) | Medium-term (2027-2031) | Long-term (2032-2060) | |||
29
E1-3
30
climate scenario. Further details in
E1-9.
31
Table 34
for the material hazards out of scope.
32
See E1-9
risk exposure
Annual Financial Report for the year 2025 – Section X.
Consolidated Sustainability Statement
69
Table 21 Withdrawal/delay of regulatory incentives for low carbon projects
Current and anticipated effects | Orderly transition scenario (SSP1-2.6) | ◾ All heating plants can have their energy efficiency impacted by higher air temperatures, leaving them exposed to this risk. ◾ Certain plants might be exposed to water stress risk due to cooling water constraints. | ◾ Similar as in short- term. | ◾ Air temperatures rise further, and water scarce areas become more water stressed. ◾ Lignite plants are not exposed to abovementioned hazard risks, as they are phased out. ◾ New gas-fired units will be exposed to abovementioned hazard risks. The increased severity stressed areas is partly mitigated by alternative cooling solutions such as air-based cooling used for new technologies | ||
High carbon scenario (SSP5-8.5) | ◾ Similar as in orderly transition scenario. | ◾ Similar as in orderly transition scenario. | ◾ Higher increase in air temperatures and water stressed areas compared to the orderly transition scenario. This increases the severity of the assets exposed to these hazard risks (the orderly transition describes how each asset group is exposed). | |||
Response measures | Current | ◾ EPIF scans critical assets against climate modelling data to identify assets exposed to chronic physical climate impacts. ◾ EPIF’s subsidiary SSD implements adaptation actions higher temperatures. | ||||
Planned | ◾ EPIF to investigate whether any additional adaptation actions for high-risk exposed assets are appropriate. ◾ EPIF plans to use alternative cooling systems in the new CHP units, increasing the resilience of assets exposed to water stress risk and/or eliminating their exposure to this risk. | |||||
Risk | Withdrawal/delay of regulatory incentives for low carbon projects | |||
Type, subtype | Transition risk, policy and legal | |||
Cause | Withdrawal/delay of government funding reserved for low carbon projects due to regional differences in the disorderly transition. | |||
Effects | Lack of regulatory incentives or uncertain regulatory environment may jeopardize economic viability of decarbonization projects, leading to the inability of EPIF to reach final investment decisions and execute its transition plan. | |||
Scope | All of EPIF’s subsidiaries | |||
Value chain | All of the value chain | |||
Time horizons | Short-term (FY2026) | Medium-term (2027-2031) | Long-term (2032-2060) | |
Current and anticipated effects | Orderly transition scenario (SSP1- 2.6) | ◾ Same as in disorderly transition scenario. | ◾ The orderly transition scenario does not project delays in low carbon projects, as governments prioritize these projects. | ◾ Same as in medium term. |
33
but extremely high air temperatures cause the efficiency reduction to be worse, increasing the severity of the impact.
34
See E1-3
information.
Annual Financial Report for the year 2025 – Section X.
Consolidated Sustainability Statement
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Table 22 Reduced customer demand, leading to lower capacity requirements
Disorderly transition scenario (SSP3- 7.0) | ◾ Regulatory frameworks are gradually adapted to ensure viability of decarbonization projects, albeit at a slower pace than optimal to ensure smooth planning and implementation | ◾ EPIF could face lack of regulatory incentives regarding EPIF’s planned GHG mitigation actions in regions that pursue sustainability-averse policies. ◾ Nevertheless, funding is often provided at EU-scale, derisking the potential of differences between countries. | ◾ Same as in medium term. | |
Response measures | Current | ◾ EPIF carefully monitors market/geopolitical developments and is in close discussions with policymakers and regulators to ensure that the regulatory environment is conducive to execution of decarbonization projects | ||
Planned | ◾ No additional measures planned on top of current measures | |||
Risk | Withdrawal/delay of regulatory incentives for low carbon projects | |||
Type, subtype | Transition risk, policy and legal | |||
Cause | Withdrawal/delay of government funding reserved for low carbon projects due to regional differences in the disorderly transition. | |||
Effects | Lack of regulatory incentives or uncertain regulatory environment may jeopardize economic viability of decarbonization projects, leading to the inability of EPIF to reach final investment decisions and execute its transition plan. | |||
Scope | All subsidiaries | |||
Value chain | All of the value chain | |||
Time horizons | Short-term (FY2026) | Medium-term (2027-2031) | Long-term (2032-2060) | |
Current and anticipated effects | Orderly transition scenario (SSP1- 2.6) | ◾ Same as in disorderly transition scenario. | ◾ The orderly transition scenario does not project delays in low carbon projects, as governments prioritize these projects. | ◾ Same as in medium term. |
Disorderly transition scenario (SSP3- 7.0) | ◾ Regulatory frameworks are gradually adapted to ensure viability of decarbonization projects, albeit at a slower pace than optimal to ensure smooth planning and implementation | ◾ EPIF could face lack of regulatory incentives regarding EPIF’s planned GHG mitigation actions in regions that pursue sustainability-averse policies. ◾ Nevertheless, funding is often provided at EU-scale, derisking the potential of differences between countries. | ◾ Same as in medium term. | |
Response measures | Current | ◾ EPIF carefully monitors market/geopolitical developments and is in close discussions with policymakers and regulators to ensure that the regulatory environment is conducive to execution of decarbonization projects | ||
Planned | ◾ No additional measures planned on top of current measures | |||
Annual Financial Report for the year 2025 – Section X.
Consolidated Sustainability Statement
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Table 23 Increased costs for low carbon products and services (other than fuel)
Risk | Increased costs for low carbon products and services (other than fuel) | |||
Type, subtype | Transition risk, market | |||
Cause | Increased competition such as increased demand for plant equipment, low carbon raw materials such as steel/plastics, and skilled labor. | |||
Effects | ◾ Higher than anticipated increase in costs of products and services required for EPIF's decarbonization goals. ◾ Difficulty in finding skilled labor and external contractors for realizing EPIF’s sustainability goals. This results in higher CAPEX (products) and OPEX (products/services) | |||
Scope | All of EPIF’s subsidiaries | |||
Value chain | Operational | |||
Time horizons | Short-term (FY2026) | Medium-term (2027-2031) | Long-term (2032- 2060) | |
Current and anticipated effects | Orderly transition scenario (SSP1-2.6) | ◾ While the scarce labor market presents challenges to find skilled staff to facilitate EPIF’s sustainability ambitions, the risk is currently manageable and not a limiting factor to achieve EPIF’s low carbon ambitions. ◾ Higher than usual inflation is impacting all products and services (including technologies needed for decarbonization). | ◾ EPIF could experience increased prices due to increased competition for low carbon products and services. ◾ Demand for low-carbon technologies could rapidly increase while supply has not ramped up to meet this increased demand. | ◾ While the effects of the medium term continue, the effect of increased costs of products is reduced due to economies of scale for low carbon products. ◾ The increase of costs of services remains uncertain due to other non- climate related effects |
Disorderly transition scenario (SSP3-7.0) | ◾ Same as in orderly transition scenario. | ◾ There would be a lower (if at all) price increase effect from increased competition than in the orderly transition, as low carbon products/services demand experience a slower growth. ◾ Nevertheless, inflation is higher than in the orderly transition due to trade barriers, resulting in cost increases for low carbon products and services. | ◾ Similar as in the medium term. ◾ The increase in costs of services remains uncertain due to other non- climate related effects | |
Response measures | Current | ◾ Any future costs increases are partially mitigated by timely implementing low carbon solutions in existing maintenance upgrade procedures (e.g., the replacement of regular gas pipes with H 2 -friendly pipes as part of standard maintenance). | ||
Planned | ◾ EPIF’s sustainability ambitions can potentially further attract skilled labor required for low carbon services. | |||
35
36
Annual Financial Report for the year 2025 – Section X.
Consolidated Sustainability Statement
72
Table 24 Not meeting investors’ sustainability expectations
Risk | Not meeting investors’ sustainability expectations | |||
Type, subtype | Transition risk, reputation | |||
Cause | EPIF’s GHG mitigation strategies might not be perceived ambitious enough by green finance investors | |||
Effects | Increased pressure from green finance investors and/or no willingness of these investors to invest in EPIF. This can result in: ◾ Increased expenses: higher reporting and compliance costs ◾ Increased interest expenses: less opportunities for new capital, leading to an increased cost of capital ◾ Reduced reputation | |||
Scope | EPIF Group | |||
Value chain | Upstream, operational | |||
Time horizons | Short-term (FY2026) | Medium-term (2027-2031) | Long-term (2032-2060) | |
Current and anticipated effects | Orderly transition scenario (SSP1- 2.6) | ◾ EPIF has managed to attract and maintain a significant investor base owing to its sustainability credentials and commitment to real energy transition. This was reinforced by establishment of the green finance framework and issuance of its inaugural green instruments in 2024. Maintaining this investor base secures a competitive cost of capital for EPIF. | ◾ Both the gap between green and regular interest rates, and the share of green versus regular finance investors increase, limiting the options for securing regular finance. While the orderly transition enables EPIF to complete mitigation actions on time, critical investors may want to see successful showcases (e.g., phasing out coal according to the transition plan, investment in low-carbon solutions) before providing green finance, which could impact EPIF’s access to competitive cost of capital rates. | ◾ The interest rate gap and share of green finance investors increase further. ◾ Successful showcases (e.g., gradual integration of renewable gases in heating plants or gas infrastructure) strengthen the credibility of EPIF’s strategy. ◾ As a result, more critical green finance investors are willing to invest in EPIF, reducing the magnitude of this risk in the long term. |
Disorderly transition scenario (SSP3- 7.0) | ◾ Same as in orderly transition scenario. | ◾ Both the gap between green and regular interest rates, and the share of green versus regular finance investors increase, albeit at a slower pace than in the orderly transition scenario. ◾ While EPIF would experience more difficulties to secure green finance than in the orderly transition scenario (due to infrastructure delays postponing completion of mitigation actions), the costs are lower than in the orderly transition due to the lower overall growth of green finance. | ◾ The interest rate gap and share of green finance investors increase but remain lower than in the orderly transition scenario. ◾ EPIF would experience difficulties to secure green financing if delayed key low carbon infrastructure (e.g., H 2 ) restricts the timely completion of EPIF’s low carbon dispatchable load mitigation actions. This results in an increase in magnitude of the risk due to less willingness to invest from green finance investors. Nevertheless, this increasing magnitude is suppressed by the availability of competitive regular investment rates. | |
Response measures | Current | ◾ EPIF implemented the Green Financing Framework (GFF) to address this risk. This framework is verified by external rating agencies. The GFF presents EPIF’s sustainability ambitions transparently to investors to help their decision making. The GFF explains EPIF’s approach to energy transformation and defines role of each asset in a decarbonized world | ||
Planned | ◾ EPIF to assess which green finance instruments are suiting EPIF’s investment needs. EPIF can leverage the GFF, along with investor stakeholder engagement, to inform green finance investors. This aids EPIF in issuing the appropriate green finance instruments. | |||
Annual Financial Report for the year 2025 – Section X.
Consolidated Sustainability Statement
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Table 25 Increase in demand for electric dispatch capacity
Opportunity | Increase in demand for electric dispatch capacity | ||||
Type, subtype | Transition opportunity, products & services | ||||
Cause | Increased demand for dispatchable load as the effect of electrification exceeds the impact from customers switching to decentralized energy sources | ||||
Effects | Increased revenues, by providing low carbon dispatch solutions to meet the increased demand | ||||
Scope | SSD electricity DSO, potentially also gas infrastructure | ||||
Value chain | All of the value chain | ||||
Time horizons | Short-term (FY2026) | Medium-term (2027-2031) | Long-term (2032-2060) | ||
Current and anticipated effects | Orderly transition scenario (SSP1- 2.6) | ◾ Increasing penetration of renewables manifests in more volatile electricity prices which turn negative more frequently. This increases the need for dispatch capacity where natural is likely to play an important role in the short to medium term | ◾ It is likely that demand for dispatch capacity increases, as electrification is expected to increase. The IEA net-zero scenario transition scenario) projects that the rate of electrification increases electricity demand more than that energy efficiency improvements would reduce it. ◾ All of EPIF’s generation, storage and distribution assets can contribute to increased dispatchable load from electrification. As the dispatchable load will be partly provided by gas power plants, the gas infrastructure might benefit as well. | ◾ At the start of the long term, a similar as in the medium term would continue. ◾ Towards the end of the long term, large-scale storage solutions and other efficiency innovations may reduce this opportunity for EPIF, while opening new options in the storage segment. | |
Disorderly transition scenario (SSP3- 7.0) | ◾ Same as in orderly transition scenario. | ◾ Not possible to assess | ◾ Not possible to assess | ||
Response measures | Current | ◾ EPIF replaces emission-intensive sources with alternative dispatchable capacities and advances hydrogen readiness across its gas infrastructure | |||
Planned | ◾ Ensure that the plants and gas infrastructure are able to accommodate renewable gases | ||||
37
38
Annual Financial Report for the year 2025 – Section X.
Consolidated Sustainability Statement
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Table 26 Using EPIF’s existing infrastructure to build new low carbon solutions
Opportunity | Using EPIF’s existing infrastructure to build new low carbon solutions | |||
Type, subtype | Transition opportunity, products & services | |||
Cause | The demand for low carbon solutions will grow, at a fast pace in the orderly transition scenario and at a relatively lower pace in the disorderly transition scenario. EPIF owns land and infrastructure suitable to meet the increased demand for low carbon solutions (see response measures below to view solution examples). | |||
Effects | ◾ Increased revenues: New revenue streams from distribution and storage of new low-carbon fuels (green gases) ◾ Enhanced credibility: Implementing low carbon solutions provides credibility for EPIF's decarbonization strategy | |||
Scope | All EPIF’s subsidiaries | |||
Value chain | Operational, downstream | |||
Time horizons | Short-term (FY2026) | Medium-term (2027-2031) | Long-term (2032-2060) | |
Current and anticipated effects | Orderly transition scenario (SSP1- 2.6) | ◾ EPIF is already leveraging this opportunity by looking at potential new projects at existing sites. While most EPIF locations are related to this opportunity, conditions must be suitable for installing new low carbon capacity. | ◾ It is likely that EPIF can use owned land and infrastructure to install low carbon technologies as this scenario stimulates development of such solutions. | ◾ The opportunity increases in the long term when renewable gases are expected to become commercially available on the market, enabling decarbonization of gas heating plants and infrastructure. |
Disorderly transition scenario (SSP3- 7.0) | ◾ Same as in orderly transition scenario. | ◾ Similar as in the orderly transition scenario, although the opportunity is smaller due to relative lower demand for low carbon solutions. | ◾ Similar as in the orderly transition scenario, although the opportunity is smaller (see rationale in medium term). | |
Response measures | Current | ◾ Assessment of low carbon solutions for sites with suitable conditions ◾ Stakeholder engagement with regulators, and local communities. | ||
Planned | ◾ The abovementioned current low carbon solutions are planned to be advanced where appropriate. ◾ Additionally, examples of planned response measures to install low carbon solutions are presented in the Capex plan in section E1-3: | |||
39
(“Not in my backyard” (NIMBY)), regulators delaying permits.
40
E1-3.
Annual Financial Report for the year 2025 – Section X.
Consolidated Sustainability Statement
75
E1.IRO-1 Description of the processes to identify and assess material climate-
related IROs.
EPIF identified and assessed climate-related IROs informed by input from stakeholders (including key
OpCos) and climate experts. The methods are specified in the subsequent sections; first for impacts and
then for risks and opportunities and the outcomes have been integrated into our DMA.
Impacts identification and assessment
The identification and assessment of impacts was performed as in the general DMA described in
ESRS 2
IRO-1
●
EPIF is conscious of its vital role in energy transition. Global warming has a considerable impact
on the climate with increasing frequency and severity of acute and chronic climate events, and
impacts are expected to worsen. GHG emissions related to EPIF’s operations drive anthropogenic
global warming and climate change. EPIF is currently reliant on fossil fuels as part of its business
model and expects to remain operating with fossil fuels to supply the energy demand forecasted in
all IEA energy outlook scenarios (including the IEA net-zero scenario aligned to a 1.5°C
pathway
)
.
EPIF
expects to eliminate
lignite in its
district
heat
ing operations
by
2028
/2029
, in line
with its commitment to phase out coal by 2030. EPIF’s gas infrastructure will continue to facilitate
transit, storage, and distribution of natural gas until low carbon and renewable gas alternatives, or
other substitutes become economically available.
●
Total scope 1 & 2 GHG emissions are being monitored and reduced in line with EPIF’s
decarbonization targets. EPIF disclosed its Scope 3 emissions for the first time in the report for the
year 2024 and EPIF disclosed its scope 3 target in this report.
Risk and opportunities identification and assessment
EPIF identified and assessed climate-related risks and opportunities (R&Os) to determine which R&Os are
material. Material R&Os are included in
EPIF
’s climate change resilience analysis
. The next section
explains what R&Os are, and what scenarios and time horizons are used in the R&O identification and
assessment.
Defining risks and opportunities, climate scenarios, and time horizons
EPIF defines climate-related risks and opportunities (R&Os) as follows:
A
risk
related to the transition to a low-carbon economy or physical climate change), given the probability of that
event happening in the future.
An
opportunity
the transition to a low-carbon economy, given the probability of that event happening in the future.
R&Os vary between climate scenarios and time horizons. EPIF used the “Shared Socioeconomic Pathway”
(SSP)
climate scenarios
41
” for further details
42
IEA (2024)
43
Annual Financial Report for the year 2025 – Section X.
Consolidated Sustainability Statement
76
SSPs are among the standard scenarios used in the Coupled Model Intercomparison Project (CMIP6) from
the Intergovernmental Panel on Climate Change (IPCC)
.
EPIF
used three SSP scenarios to identify and
assess its physical and transition R&Os:
●
SSP1-2.6 “Sustainability” is used for the orderly transition scenario which emphasizes transitional R&Os
from a fast, orderly transition.
●
SSP3-7.0 “Regional rivalry” is used for the disorderly transition scenario which emphasizes transitional
R&Os from a fragmented, disorderly transition.
●
SSP5-8.5 “Fossil fueled development” is used for the high carbon scenario which emphasizes physical
climate risks.
IPCC scenarios contain the main drivers for R&O identification, additional scenarios (e.g., IEA) were used
along (aligned) SSP scenarios to provide further detail when required for an R&O.
44
(IPCC, 2024)
.
45
(IPCC, 2024)
.
Annual Financial Report for the year 2025 – Section X.
Consolidated Sustainability Statement
77
Table 27 – Use of SSP scenarios for Climate R&O identification
SSP scenario | Physical / Transition analysis | Description |
SSP1-2.6 “Sustainability” | Physical & Transition | Taking the Green Road “The world shifts gradually, but pervasively, more inclusive development that respects perceived environmental boundaries. Management of the global commons slowly improves, educational and health investments accelerate the demographic transition, and the emphasis on economic growth shifts toward a broader emphasis on human well-being. Driven by an increasing commitment to achieving development goals, inequality is reduced both across and within countries. Consumption is oriented toward low material growth and lower resource and energy intensity.” |
SSP3-7.0 “Regional Rivalry” | Transition | A Rocky Road “A resurgent nationalism, concerns about competitiveness and security, and regional conflicts push countries to increasingly focus on domestic or, at most, regional issues. Policies shift over time to become increasingly oriented toward national and regional security issues. Countries focus on achieving energy and food security goals within their own regions at the expense of broader-based development. Investments in education and technological development decline. Economic development is slow, consumption is material-intensive, and inequalities persist or worsen over time. Population growth is low in industrialized and high in developing countries. A low international priority for addressing environmental concerns leads to strong environmental degradation in some regions.” |
SSP5-8.5 “Fossil fueled development” | Physical | Taking the Highway “This world places increasing faith in competitive markets, innovation, and participatory societies to produce rapid technological progress and development of human capital as the path to sustainable development. Global markets are increasingly integrated. There are also strong investments in health, education, and institutions to enhance human and social capital. At the same time, the push for economic and social development is coupled with the exploitation of abundant fossil fuel resources and the adoption of resource and energy intensive lifestyles around the world. All these factors lead to rapid growth of the global economy, while global population peaks and declines in the 21st century. environmental problems like air pollution are successfully managed. There is faith in the ability to effectively manage social and ecological systems, including by geo-engineering if necessary.” |
IEA Net Zero Emissions by 2050 Scenario | Transition | A scenario which maps out a pragmatic but ambitious global pathway for the energy sector to achieve net zero CO 2 limiting the rise in global average temperatures to 1.5 °C (with a 50% probability). In contrast with previous editions of the World Energy Outlook, the NZE Scenario is no longer a limited-overshoot scenario, as warming peaks above 1.6 °C and exceeds 1.5 °C for several decades before returning below 1.5 °C by 2100. These changes in the scenario trajectory reflect the reality of persistently high emissions in recent years and slow or uneven momentum behind the deployment of some policies and technologies. In addition to very rapid progress with the transformation of the energy sector, bringing the temperature rise back down below 1.5 °C by 2100 also requires widespread deployment of CO 2 technologies that are currently unproven at large scale. |
46
.
Drivers behind every SSP scenario are documented in the supplementary
documentation of
Riahi et al. (2017)
.
Annual Financial Report for the year 2025 – Section X.
Consolidated Sustainability Statement
78
Table 28 Short-, medium- and long-term time horizons
Time horizon | Year (ESRS- aligned) | ESRS minimum requirement | Rationale |
Short-term | 2026 | One year from the end of the reporting period | ESRS prescribes that the short term should be aligned with the financial year |
Medium-term | 2027 | End of the short-term up to 5 years | 5 years after short-term, closest to EU “Fit for 55” target by 2030 |
Long-term | 2032 | More than 5 years | Aligned with EPIF’s long-term strategic planning horizons and capital allocation plans |
EPIF used a two-staged approach for the risk & opportunity identification and assessment, with scenario
analysis using time horizons and climate scenarios featured in both stages. Below, we describe these stages
in more detail.
Stage 1: R&O identification
R&Os were identified based on inputs from previous risk assessments, historical damages, and relevant
R&Os derived from industry peer reports. Subcompany representatives from EPIF were interviewed to
align on any potential climate risks & opportunities. Interviewers first explained the scenario pathways
(
) and asked interviewees to identify R&Os that could occur within these scenarios and R&O
subcategories
and transition R&Os with the stakeholders:
1.
When considering physical risks, EPIF identified which climate-related hazards are potentially
material, by assessing per hazard whether assets and business activities might be exposed and/or
sensitive to these hazards.
2.
When considering transition R&Os, EPIF identified which climate-related R&Os are potentially
material regarding the TCFD transition risk/opportunity categories
After the interviews, the climate R&O longlist was finalized, and individual R&Os were mapped to
applicable climate scenarios
(
)
and time horizons (
). Potential overlap with other business
risks was assessed by cross
-
comparing to
EPIF
risk practices
.
Stage 2: R&O scoring
47
Table 34
E1-9 section 3.10.1
48
Table 31
in E1-9 section 3.10.1
49
Efficiency, Energy Source, Products & Services, Markets, Resilience.
(
TCFDhub, 2017)
50
management process and use them to evaluate the undertaking’s overall risk profile and risk management processes.
Annual Financial Report for the year 2025 – Section X.
Consolidated Sustainability Statement
79
EPIF qualitatively scored longlisted R&Os on likelihood and magnitude:
●
Likelihood
●
Magnitude
is defined as the financial effect of the event on EPIF when it occurs, and for climate-
related IROs is scored based on a more detailed qualitative assessment of exposure, sensitivity,
and adaptive capacity.
●
Exposure:
assessed using geospatial coordinates for the particular location (in case of heating plants or
compressor stations) or sample of coordinates for extensive distribution networks. The
locations and their respective territory classified under NUTS are presented in
●
Sensitivity:
●
Adaptive capacity:
that lower the exposure and/or sensitivity for EPIF.
EPIF qualitatively scored each R&O on a 5-point scale for EPIF’s subsidiaries, with the most relevant
time horizon and scenario determining the score of each R&O. EPIF scores were aggregated at EPIF level
to form the total EPIF score. R&Os are prioritized if one of the following conditions apply:
1.
Magnitude ≥ 2.5 and likelihood ≥ 2.5, or
2.
Magnitude ≥ 3.5 and likelihood ≥ 1.5
R&Os with magnitude scores below or equal to 2.5 are not considered material regardless of the likelihood
score, as EPIF stakeholders confirmed that these magnitudes are accepted within the risk appetite of
business operations. High-magnitude (3.5 or higher) R&Os are considered material even with low
likelihood (1.5 or higher), whereas events with such low likelihood and lower magnitude are not considered
material. Representatives of EPIF’s main OpCos within EPIF validated scores and rationales.
Figure 2 Prioritization matrix
, a R&O is considered prioritized within the red marked area. A red dot
indicates a risk, a green dot indicates an opportunity.
The list of R&Os and their position in the prioritization matrix were validated with key company
stakeholders. After this process, EPIF decision-makers decided which of the prioritized R&Os are material.
51
economic territory of the EU
52
magnitude.
Annual Financial Report for the year 2025 – Section X.
Consolidated Sustainability Statement
80
Most of the prioritized R&Os were determined to be material, with some R&Os excluded from materiality
(e.g. to account for factors not captured in the scoring methodology).
E1-2 – Climate-related policies
EPIF Group understands that envisaged climate change poses a severe risk and thus respecting and
following the European decarbonization goals and GHG emissions reduction targets is of the utmost
importance. The Group strives to achieve its GHG emissions reduction in line with these targets by
continuously adapting its operations to maintain a portfolio of assets consistent with this objective. As part
of the planned continuous improvement of our policy framework, taking into account a dynamic regulatory
environment, shifting stakeholder expectations, and a maturing governance and operational context, EPIF
is prioritizing a continuous refinement of its climate policies to facilitate more targeted stakeholder
engagement on policy implementation and integration within our operating companies, greater specificity
in addressing material sustainability topics and ensure that policies are aligned with the disclosure principles
set out under ESRS and other relevant upcoming regulatory requirements such as the CSDDD.
Within our existing
Environmental Policy
, we guide our OpCos to address climate change and carbon
footprint reduction. The objective is to minimize the negative impact of our operations on the environment,
to comply with the applicable local and international environmental laws and to increase climate resilience.
EPIF's operational activities are driven by the policy and our responsibility to adhere to national energy
legislation and local operational regulations, which provide us with further efficiency guidance. Our
Asset
integrity policy
facilities, and ensure they are striving for high levels of efficiency to lessen environmental impacts.
E1-3 – Climate-related actions
To address our material climate change IROs, we have established the following actions, listed below in
saved or expected to be saved through these actions. The reduction in GHG emissions covers Scope 1 & 2
emissions, i.e. emissions covered by the reduction targets.
The successful completion of these mitigation/adaptation actions is dependent on various factors, of which
important ones are EPIF’s access to capital and external market/infrastructure developments. These factors
have been analyzed over the orderly and disorderly transition scenarios.
1.
Ongoing access to finance at an affordable cost of capital is critical for the implementation of the
EPIF mitigation and adaptation actions. Finance is not only relevant for constructing new projects,
but also relevant for any low carbon acquisitions and R&D costs to create new projects.
2.
Sufficient supply and demand of hydrogen and biomethane are critical for achieving EPIF's long-
term climate mitigation goals, as widespread green gas adoption is a prerequisite for
decarbonization of the gas-fired heat and power generation and gas midstream and downstream
infrastructure.
3.
The execution of the Capex plan also depends on the existence of stable regulatory frameworks and
incentives to provide certainty for investors and support the transformation of the broader energy
system.
53
in E1-IRO Table 22
54
E1-IRO Table 22
Annual Financial Report for the year 2025 – Section X.
Consolidated Sustainability Statement
81
4.
The Capex plan only includes actions where the projects have a reasonable likelihood of realization.
It does not include any other potential projects which might be realized.
5.
The Capex plan shall not be perceived as Capex projections, but rather indicative financial
resources needed to enable us to execute the communicated transition plan.
Table 29 Mitigation actions to reduce carbon emissions
Mitigation actions (decarbonization levers) | Example measures | Achieved GHG reduction (kt CO 2 eq) | Expected GHG reduction (kt CO 2 eq) | Current Capex (2025) (EUR million) | Planned Capex (up to 2030) (EUR million) |
1. Conversion of lignite-based combined heat and power plants | Construction of H2-ready CCGT cogeneration units | 449 | 177 | 7 | 150-200 |
2. Gas infrastructure GHG emissions reduction | Reducing methane leakage Electrification of compressor fleet | 118 | 15 | 8 | ~100 |
3. Green gas adoption | Preparing the gas midstream and downstream infrastructure for H2 (can also be related to R&D) | N/A | N/A | 51 | 350-450 |
4. Renewable and energy storage projects | Developing renewable (geothermal, rooftop solar) and energy storage projects | N/A | N/A | 11 | 50-100 |
5. Preparing electricity grid for increased intermittency | Investments to reduce grid congestion and/or other intermittency issues | N/A | N/A | 30 | ~150 |
Adaptation actions | Example measures | Current Capex (2025) (EUR million) | Planned Capex (up to 2030) (EUR million) |
Increasing grid resilience to reduce physical risk | Investments in electricity grid resilience to reduce physical risk | 10 | ~50 |
Other adaptation actions | Installing air-cooling systems to reduce exposure to water stress | 0 | Not quantified |
Conversion of lignite-based combined heat and power plants
EPIF has initiated a conversion program to transition its predominantly lignite-based heating plants to a
diversified energy mix well suited for the ongoing transformation of the energy system. This transformation
includes the deployment of hydrogen-ready combined cycle gas turbine (CCGT) units and waste-to-energy
plants, supplemented by existing biomass facilities and potentially other technologies such as electric
55
Consolidated Financial Statements as of and for the year ended 31 December 2025
Annual Financial Report for the year 2025 – Section X.
Consolidated Sustainability Statement
82
boilers and heat pumps. EPIF remains committed to phasing out lignite by 2030, with the goal of completing
these conversions as early as 2028/2029. CCGT units and waste-to-energy plants have secured investment
subsidies from the Modernization Fund. The presented Capex represents the net Capex after deduction of
investment subsidies. CCGT technologies are also supported by a 15-year cogeneration bonus awarded
through auction.
In March 2025, EPIF significantly reduced its exposure to lignite after two heating plants operated by
Elektrárny Opatovice and United Energy were divested. The remaining heating plants operated by EPIF’s
subsidiary Plzeňská teplárenská partly rely on lignite to provide vital heat supplies to the district heating
network in the city of Pilsen. Over time, the company has diversified its fuel mix to include biomass and
municipal waste, reducing the share of lignite below 50%.
Gas infrastructure GHG emissions reduction
The direct carbon footprint of gas transit and storage operations primarily stems from methane leakage and
CO
₂
the transit network or inject it into underground storage facilities. EPIF’s subsidiaries are implementing
measures to minimize methane leakage, including the gradual elimination of natural gas venting through
investments in mobile gas repumping compressors. To reduce CO
₂
electrification of its compressor fleet, replacing the current compressors driven by gas turbines. In 2025,
the primary measure related to methane reduction was the acquisition of additional mobile repumping
compressors. The remaining planned investments are intended to be largely completed within the next 5
years.
Gas storage segment
●
Replacement of natural gas actuating systems with compressed air for remote-controlled devices.
●
Leak Detection and Repair (LDAR) program, aimed at locating, immediately repairing, and
quantifying gas leaks.
●
Pilot installation of non-purging systems for turbo compressors, with proven applicability to other
compressors.
●
Seal gas recompression for compressor units.
●
Implementation of a gathering system to capture vented emissions from maintenance and
investment works, utilizing them at the central station.
●
Replacement of injection pumps with electric-powered alternatives.
●
Development of a well recovery concept for post-workover operations.
Gas Transit Segment
●
Minimizing venting during operations through the use of mobile pumping compressors, enabling
gas transfer from closed pipeline sections to active parts of the transmission network during
maintenance.
●
Implementing an advanced LDAR program, employing detailed methodologies to detect and
quantify gas leaks, ensuring targeted maintenance.
Annual Financial Report for the year 2025 – Section X.
Consolidated Sustainability Statement
83
●
Modernizing the network, with a particular focus on compressor station efficiency by phasing out
obsolete and less efficient technologies.
Gas Distribution Segment
●
LDAR program, conducting surveys on foot and by vehicle based on asset condition assessments.
●
Utilization of drones for leak detection in hard-to-reach areas.
●
Remote monitoring of corrosion protection effectiveness for buried steel pipelines.
●
Internal pipeline inspections of strategic high-pressure pipelines using in-line sensors.
●
Non-destructive surface-based detection of coating defects in steel pipelines.
Other direct Scope 1 and/or Scope 2 emissions reduction
EPIF plans to pursue other complementary technologies such as electric boilers or industrial heat pumps in
its district heating business. The feasibility of these technologies will be evaluated in the context of market
development, especially the seasonal and intra-day development of electricity prices.
Such project is already in place at Plzeňská teplárenská, where a 30 MWe steam electrode boiler has been
installed and commissioned in trial operation at the Teplárna heating plant. The unit, equipped with a
superheater, produces steam at 240 °C and 11 bar with efficiency of 99%, and is fully integrated into the
existing steam infrastructure. The electric boiler provides grid balancing services, enables the use of surplus
or low-price electricity for heat production, and ensures backup steam supply for a key industrial customer,
Plzeňský Prazdroj, as well as for the district heating network.
By combining flexibility, efficiency and system integration, the project supports the decarbonization of heat
production, strengthens energy system stability and helps reduce the overall operating costs of heat
generation.
Renewable gas adoption
EPIF’s existing gas transmission and distribution infrastructure can be retrofitted to support hydrogen,
while the gas storage assets are also evaluated to assess its hydrogen compatibility. To this end, EPIF has
already launched hydrogen-dedicated research and development projects. The unique, geographically
strategic position for future hydrogen transmission further positions EPIF to be a major player in hydrogen
adoption. To address significant disparities between projected hydrogen production and consumption across
various regions in Europe, the establishment of a robust hydrogen transit and storage infrastructure is
imperative. This infrastructure should not only connect regions within Europe but also neighboring regions
with abundant hydrogen potential, such as North Africa or Ukraine. A robust infrastructure shall ensure the
security of supply for future hydrogen offtakers, as well as the security of demand for potential investors in
hydrogen generation. EPIF is involved in several projects across its midstream and downstream gas
infrastructure to enable adoption of hydrogen.
EPIF’s subsidiary SPP – distribúcia (“SPPD”) is gradually adapting its gas distribution network to
accommodate renewable gases, ensuring that both producers and offtakers of these gases can be connected
through adequate infrastructure. SPPD has already integrated two biomethane stations into its network
Annual Financial Report for the year 2025 – Section X.
Consolidated Sustainability Statement
84
(producing approximately 7 million cubic meters annually
biogas stations to its network in the medium term after their conversion to biomethane. The company also
operates a registry of renewable gases to connect biomethane producers with end users. According to
Slovakia’s latest National Energy and Climate Plan, total biomethane potential could reach up to 400
million cubic meters in the medium term. SPPD is also preparing its network for hydrogen distribution by
replacing older steel pipes with hydrogen-ready polyethylene. Following a successful pilot project in which
a 10% hydrogen blend was distributed in a Slovak village, SPPD certified its network to carry a 10% blend
in local distribution grids and a 5% blend in high-pressure pipelines. In 2025, SPPD launched the H2Demo
project, establishing a dedicated hydrogen test polygon to simulate pure hydrogen distribution in an isolated
network segment. The company is also identifying industrial clusters where hydrogen demand is expected
to emerge first and is prioritizing network upgrades in those areas to ensure cost-effective deployment.
EPIF’s transmission arm, eustream, is strategically positioned to accommodate hydrogen transport, where
its project aimed to refurbish one pipe for pure hydrogen transit has been granted Important Project of
Common European Interest (IPCEI) status. Obtaining IPCEI status opens a realistic way for securing grants
from national or EU sources, moving the whole project closer to realization. The new hydrogen
infrastructure is intended to connect production regions adjacent to the EU - such as Ukraine and North
Africa - with major industrial clusters in Europe, particularly in Germany. In parallel, the company is
adapting its network to meet requirements for gas transmission system operators to accommodate a 2%
hydrogen blend. These upgrades primarily involve adjustments to metering equipment and selected
modifications at compressor stations.
In the gas storage segment, EPIF’s subsidiary Nafta is exploring the feasibility of storing hydrogen blended
with natural gas, launching project Henri to identify suitable storage sites which has been assigned IPCEI
status as well. In the R&D phase of the project, criteria are defined for selecting geological structures
suitable for large-scale hydrogen storage. Preselected structures will then undergo laboratory testing to
assess their ability to store hydrogen - either in pure form or at a defined maximum concentration. Research
focuses on the effects of hydrogen on reservoir and cap rock, as well as potential microbiological and
geochemical interactions. The findings will be used to develop models simulating reservoir behavior,
enabling confirmation of pure hydrogen storage potential or determination of the maximum feasible
hydrogen concentration. In the second phase, informed by R&D results, a pilot plant - including electrolysis,
metering, gas treatment, and compression - will be designed and built. Pure hydrogen or its mixture with
natural gas blend will then be injected and withdrawn in several cycles to gather real-world data on storage
performance. During withdrawal, deblending technology for separating hydrogen from natural gas will be
tested, and the resulting mixture will be used in a nearby distribution grid to demonstrate operational
feasibility. At project completion, reservoir data from the pilot phase will be compared with R&D findings
to determine the viability of scaling up the project.
E1-4 – Climate-related targets
EPIF
recognizes that across its business segments, it emits greenhouse gases (GHGs)
. As a result,
EPIF
is committed to tracking and reducing its emissions as outlined in our decarbonization roadmap to be
aligned with the targets set at the EU as well as national levels and our own GHG emission targets. EPIF
implements and plans decarbonization levers to achieve its GHG reduction targets. Furthermore, EPIF
considered a diverse range of climate scenarios to detect transition developments relevant to these
decarbonization levers. EPIF monitors its progress continuously with public reporting on an annual basis.
56
57
section
58
Table
24
3.6
E1-3 d
escribes the decarbonization levers and their contributions towards reaching the GHG reduction targets.
59
Table 22 in E1.IRO-1 section 3.4.2.1
E1.SBM-3
includes an analysis of how prioritized risks and
opportunities impact EPIF's strategy and business model, including decarbonization levers.
Annual Financial Report for the year 2025 – Section X.
Consolidated Sustainability Statement
85
To manage the negative impact of fossil fuel GHG emissions from EPIF's business activities, and the
transition risk of locked-in GHG emissions, the following targets have been set. The key stakeholders
involved in the target setting process were representatives of operating companies. The targets also take
into account the perceived expectations of core EPIF investors and their investment policies.
●
CO
2
●
Methane reduction target
●
Carbon neutrality target (Scope 1&2)
●
Net zero target (Scope 1&2)
Following divestment of two combined heat and power plants in the Czech Republic in March 2025, EPIF
restated the baseline year 2022 accordingly (see in
. The methane reduction target baseline year
was not restated as the divested entities report no methane leakage.
Table 31 CO
2
thsnd. tonnes 2 | 2022 | 2023 | 2024 | 2025 |
Scope 1&2 CO 2 | 3,414 | 2,251 | 1,673 | 959 |
Czech CHPs (excluded) | (2,390) | (1,467) | (1,111) | (454) |
Scope 1&2 CO 2 emissions - adjusted | 1,024 | 784 | 562 | 505 |
●
target projections that correspond to these targets. The targets are further described in the target-specific
sections below.
Table 32 EPIF GHG reduction targets
Target | Unit | 2020 base year | 2022 base year | 2024 base year | 2025 current year | 2030 target | 2035 target | 2040 target | 2050 target |
CO 2 (Scope 1&2) | thsnd. tonnes CO 2 eq | N/A | 1,024 | N/A | 505 | 410 | N/A | 0 | 0 |
Methane reduction target | thsnd. tonnes of CO 2 eq | 295 | N/A | N/A | 155 | 133 | N/A | N/A | 0 |
Net zero GHG emissions (Scope 1 & 2 | thsnd. tonnes of CO 2 eq | N/A | 1,257 | N/A | 661 | N/A | N/A | N/A | 0 |
CO
2
The primary driver to achieve the 60% reduction in CO
2
replacement of lignite in the district heating. This will be further supported by reduction in CO
2
from combustion of natural gas in gas compressors as the compressor fleet will be partly electrified. Scope
2 emissions included in the targets are calculated using the location-based method in line with the GHG
60
original target
61
Annual Financial Report for the year 2025 – Section X.
Consolidated Sustainability Statement
86
Protocol Scope 2 Guidance. Within the combined Scope 1 and Scope 2 CO
2
targets, Scope 1 emissions
represent the predominant share of emissions (94% CO
2
emissions are from Scope 1 as for 2022 base year),
consistent with the Group’s GHG inventory boundaries disclosed in
section E1-6
. The targets are set as
gross emission reduction targets and do not include GHG removals, carbon credits or avoided emissions.
Methane reduction target
This target aligns with the commitment made by over 80 countries at the 2021 United Nations Climate
Change Conference (COP26) to reduce methane emissions by 30% by 2030. The target is an absolute
reduction of 30% emissions from a 2020 baseline (295 thousand tonnes CO
2
-eq). These emissions cover all
of EPIF’s own operations. There are no interim targets, but EPIF aims to reduce these emissions gradually
over time. The target is aligned with the established scientific understanding presented at COP26. This
target continues to be measured through the monitoring protocols described. In 2025, EPIF already
overperformed the target by reducing its methane emissions by 47%, achieving a reduction of 140 thousand
tonnes CO
2
-eq. EPIF will continue to implement best practices to further reduce its methane emissions.
Carbon neutrality target (Scope 1 &2)
To achieve carbon neutral operations, EPIF intends to offset the remaining CO
2
realized internally or financed through carbon credits. These may include afforestation, or the development
of our own renewable generation sources, where additionality can be demonstrated. As we approach the
year 2040, EPIF envisions a gradual increase in the share of renewable gases to replace natural gas as the
dominant fuel in its operations. The attainment of full carbon neutrality is contingent upon the availability
of sufficient volumes of renewable gases, such as biomethane, synthetic methane, and hydrogen, by 2040,
along with the necessary transit and distribution infrastructure in place. EPIF acknowledges that achieving
100% combustion of renewable gases by 2040 may necessitate accelerated upgrades of turbine technologies
to ensure readiness for this transition.
Net zero target
EPIF’s GHG emission reduction targets are designed to be compatible with limiting global warming to
1.5°C as described in
E1-1 climate transition plan
. The targets are informed by publicly available climate
scenarios consistent with a 1.5°C trajectory, including the IEA Net Zero Emissions by 2050 scenario and
relevant EU decarbonization pathways. EPIF might need to utilize carbon neutralization measures to
compensate for any remaining GHG emissions in 2050 such as remaining methane leakage in the gas
infrastructure (or other gases covered under the Kyoto Protocol). For this purpose, EPIF will explore
internal projects to generate negative emissions.
E1-3
targets.
Basis for target setting
For the purpose of target setting, the year 2022 was used as a baseline year for CO
2
the most recent year at the time of setting the target (April 2023). For methane emission reduction, the year
2020 was selected to align with the Global Methane Pledge initiative.
Annual Financial Report for the year 2025 – Section X.
Consolidated Sustainability Statement
87
E1-5 – Energy consumption and mix
In 2025, EPIF’s total energy consumption decreased by 35% compared to last year, which was driven by
the divestment of two heating plants which represented major consumers of lignite. EPIF reported an overall
energy production efficiency of 51% which was broadly comparable to 2024.
As an energy production company, all of EPIF's business activities are classified as high climate impact
sectors as they all belong to NACE sections A to H or L as defined in the ESRS. EPIF bases its primary
energy efficiency metric on segments engaged in energy production, i.e “NACE sector “
D.35.3: Electricity,
gas, steam and air conditioning supply
”. This metric covers activities which are responsible for nearly
100% total EPIF GHG emissions based on 2025 figures.
Energy consumption by fuel type | ||||||
GWh | 2021 | 2022 | 2023 | 2024 | 2025 | % 25/24 |
Lignite | 10,356 | 10,043 | 6,578 | 4,982 | 2,750 | (45%) |
Natural Gas | 1,063 | 533 | 426 | 361 | 242 | (33%) |
Oil | 6 | 5 | 6 | 3 | 2 | (29%) |
Diesel | 1 | 2 | 6 | 9 | 38 | >100% |
Petrol | – | – | – | 2 | 3 | 99% |
Purchased Electricity | 96 | 491 | 555 | 579 | 492 | (15%) |
Purchased Heat | – | 0 | – | – | 5 | |
Biomass | 1,140 | 1,374 | 1,041 | 1,526 | 1,218 | (20%) |
Other | 284 | 277 | 289 | 285 | 316 | 11% |
Total | 12,945 | 12,726 | 8,901 | 7,746 | 5,065 | (35%) |
Fossil fuels consumption | 11,522 | 11,075 | 7,571 | 5,935 | 3,532 | (40%) |
Renewable consumption | 1,140 | 1,374 | 1,041 | 1,526 | 1,218 | (20%) |
Renewable share % | 8.8% | 10.8% | 11.7% | 19.7% | 24.0% | 22% |
Energy intensity (GWh/EURm) | 4.6 | 2.7 | 2.1 | 2.2 | 1.6 | (25%) |
Energy efficiency (%) | 44.8% | 43.6% | 47.5% | 49.8% | 50.7% | 2% |
Accounting Principles:
Total energy mix
across all operational activities. The mix includes fossil as well as renewable sources.
Energy intensity (GWh/EURm)
: full energy consumption is divided by Revenues as reported in the EP
Infrastructure Consolidated Financial Statements as of and for the year ended 2025
Energy efficiency (%
): power and heat production of relevant companies is divided by their energy
consumption
E1-6 – Gross Scopes 1, 2, 3 and total GHG emissions
As illustrated by the actions that EPIF has committed to, reducing GHG emissions across Scopes 1, 2 and
3 is a key priority to achieve EPIF’s GHG emissions reduction targets and reduce the impact of human-
induced global warming.
disclosed per each significant Scope 3 category.
Table 33 Energy consumption and mix
Annual Financial Report for the year 2025 – Section X.
Consolidated Sustainability Statement
88
Table 34 EPIF’s full scope GHG emissions
EPIF has gradually improved the accuracy and coverage of its disclosed GHG emissions. EPIF has reported
the full Scope 1 & 2 emissions since 2023, when it had its GHG emissions externally assured in line with
the ISAE 3410 for the first time. Prior to 2023, CO
2
reported (e.g. emissions from a company car fleet or small back-up generation sources). However, the share
of these emissions has been 1-2% of total GHG emissions.
EPIF has disclosed its Scope 3 emissions since 2024 when it performed its inaugural full data collection.
The share of Scope 3 emissions on total GHG emissions in 2025 was 75 % of total GHG emissions.
thsnd. tonnes CO 2 | 2021 | 2022 | 2023 | 2024 | 2025 | % 25/24 |
Scope 1 CO 2 | 3,459 | 3,351 | 2,181 | 1,617 | 920 | (43%) |
CO 2 | 3,459 | 3,273 | 2,107 | 1,544 | 842 | (45%) |
CO 2 | – | 78 | 74 | 73 | 78 | 6% |
Other Scope 1 GHG emissions | 257 | 232 | 234 | 162 | 156 | (4%) |
Methane emissions | 257 | 232 | 234 | 161 | 155 | (4%) |
Other GHG emissions | – | – | 0 | 1 | 0 | (50%) |
Scope 1 GHG emissions | 3,717 | 3,583 | 2,415 | 1,779 | 1,075 | (40%) |
Scope 1 covered by ETS in % | 93% | 91% | 87% | 87% | 78% | (10%) |
Scope 2 GHG emissions (location-based) | 19 | 63 | 70 | 56 | 40 | (22%) |
Scope 2 GHG emissions (market-based) | N/A | N/A | N/A | 214 | 179 | (16%) |
Scope 3 GHG emissions | N/A | N/A | N/A | 4,119 | 3,400 | (20%) |
Fuel and energy-related (Cat. 3) | 2,347 | (14%) | ||||
Use of sold products (Cat. 11) | 1,690 | 987 | (33%) | |||
Other Scope 3 emissions | 82 | 118 | 44% | |||
Total GHG emissions (location-based) | 3,735 | 3,646 | 2,485 | 5,955 | 4,515 | (26%) |
Total GHG emissions (market-based) | N/A | N/A | N/A | 6,113 | 4,654 | (26%) |
Annual Financial Report for the year 2025 – Section X.
Consolidated Sustainability Statement
89
Accounting Principles:
GHG Protocol and associated standards and guidance (Corporate Standard, Scope 2 Guidance, Corporate
Value Chain (Scope 3) Standard) are followed to report the GHG Scope 1-3 emissions. All 7 GHG emissions
defined in the Kyoto protocol are considered. To convert non-CO
2
2
-equivalent, Global
Warming Potential (GWP) factors from the latest IPCC Sixth Assessment Report (AR6) are applied
Scope 1 GHG emissions:
CO
2
– typically to produce power and heat, to power gas compressor
stations, or to operate company vehicles. The emissions from power and heat production and gas compressors
are measured for EU ETS purposes. Emissions from company vehicles and combustion of fuel in smaller
installations (below the EU ETS threshold) are calculated centrally based on volume of fuel consumed using
emission factors.
Methane emissions
- these typically result from natural gas leaks, with its CO₂-equivalent (CO₂-eq.) emissions
calculated using a Global Warming Potential (GWP) factor of 29.8 from the latest IPCC Sixth Assessment
Report (AR6)
Other Scope 1 emissions
2
7 GHG emissions defined in the Kyoto protocol, which are, as a result, all under scope 1.
Scope 2 GHG emissions:
from energy consumption and central emission factors.
EPIF applies 2 methods to calculate Scope 2 emissions:
(i) location-based method where the average emission factor of the country grid is applied on power and heat
consumption in each country.
(ii)market-based method where specific factors are used for directly sourced power (e.g. based on PPA), while
residual emission factors (i.e. excluding energy consumption supported by energy attribute certificates) are
applied to the remaining portion with unknown origin). _
Scope 3 GHG emissions:
Protocol, which divides the Scope 3 inventory into 15 categories (C1- C15)
Emission factors (EFs):
EFs for scope 1 are primarily sourced from GHG Protocol or DEFRA 2025.
EFs for scope 2 are primarily sourced from European Environment Agency (EEA) and Association of issuing
bodies. For non-EU countries, emission factors are sourced from the UK National Energy System Operator
or Electricity Maps.
EFs for Scope 3 are sourced from publicly available databases, including DEFRA 2025, EEA, EEA 27,
Ecoinvent 3.10, EPA, EXIOBASE, and BEIS.
EPIF applies the most recent available emission factors applicable at the time of reporting, which are
reviewed and updated annually to reflect methodological and data updates.
Annual Financial Report for the year 2025 – Section X.
Consolidated Sustainability Statement
90
Further contextual information about Scope 3
The most significant categories, the categories 3 and 11, accounted for approximately 97% of total Scope
3 emissions in 2025. These are calculated by accurately collecting data on electricity/fuel consumption and
the volume of final products sold, then multiplied by the relevant emission factor. For less material
categories, estimations are involved in certain calculations. In 2025, 10 % of Scope 3 GHG emissions was
calculated using primary data obtained from value chain partners. This was primarily represented by
sourcing of biomass where this information is provided by suppliers on a mandatory basis.
Emission factors are sourced from publicly available databases, including DEFRA 2025, EEA, EEA 27,
Ecoinvent 3.10, EPA, EXIOBASE, and BEIS.
C1 (Purchased goods and services):
subcategories in EUR by the relevant emission factor assigned to the corresponding subcategory.
C2 (Capital goods):
by the relevant emission factor assigned to the corresponding subcategory.
C3 (Fuel- and energy-related activities):
relevant emission factor assigned to that specific fuel type. This is EPIF’s most material scope 3 category
(2,295 million tonnes of CO
2
●
Combustion of fuel by third parties to produce electricity which is then purchased by EPIF supply
companies and sold to its retail customers (1.698 million tonnes of CO
2
●
Emission associated with production of heat sold which was purchased by EPIF district heating
network operators from the disposed CHPs (0.326 million tonnes of CO
2
●
In this category we include also 0.126 million tonnes of CO
2
production and transportation which is reported voluntarily, it is not a requirement of the GHG
Protocol.
C4 (Upstream transportation and distribution):
by the total distance traveled and the corresponding emission factor. When precise data are unavailable,
average transport weight estimates are used (e.g., cargo ship: 20,000 tonnes; rail: 12,500 tonnes; truck: 30
tonnes; sea tanker: 20,000 tonnes; van: 3.5 tonnes). As an alternative, if not all operational data are
available, we are calculating emissions by multiplying cost of transport by emission factors for particular
type of transport. This only applies to small number of companies.
C5 (Waste generated in operations):
or EPA waste type) and the appropriate emission factor to the waste type.
C6 (Business travel):
vehicle type) by the emission factor based on the fuel used. Additionally, if employees stay in hotels, the
number of nights is multiplied by the country-specific rooms’ emission footprint.
C7 (Employee commuting):
round-trip commuting distance and then applying the emission factor corresponding to their mode of
transport and fuel type.
C8 (Upstream leased assets):
by the appropriate emission factor, which is selected based on the type of leased item and its energy or fuel
source.
C9 (Downstream transportation and distribution):
shipment by the total distance traveled and the corresponding emission factor. When precise data are
Annual Financial Report for the year 2025 – Section X.
Consolidated Sustainability Statement
91
Table 35 CO
2
unavailable, average transport weight estimates are used (e.g., cargo ship: 20,000 tonnes; rail: 12,500
tonnes; truck: 30 tonnes; sea tanker: 20,000 tonnes; van: 3.5 tonnes).
C10 (Processing of sold products):
the specific product sold, and then applying the emission factor based on the product’s processing type.
C11 (Use of sold products):
relevant emission factor selected according to the specific final product type. This is EPIF’s second most
material scope 3 category (0.987 million tonnes of CO
2
with sales of:
●
Gas sold to EPIF retail customers (0.763 million tonnes of CO
2
●
Gas sold across other segments (0.221 million tonnes of CO
2
C12 (End-of-life treatment of sold products):
the emission factor that corresponds to the waste treatment method employed.
C13 (Downstream leased assets):
specific leased item by the relevant emission factor, selected based on the item’s type and its energy or fuel
source.
C14 (Franchises):
C15 (Investments):
EPIF did not incur significant changes regarding the upstream and downstream value chain in the reporting
period.
EPIF also emitted biogenic GHG emissions from combustion of biomass which are not presented in the
table above. Combustion of biomass is treated as carbon neutral in line with the EU
Renewable Energy
Directive (RED).
the Scope 1 biogenic emissions amounted to 492 thousand tonnes CO
2
eq.
Scope 2 biogenic emissions result from purchase of electricity for own consumption where a portion of the
electricity was produced from biomass. EPIF considers these emissions immaterial.
In the reporting period, EPIF did not use material Scope 2 related contractual instruments for the purchase
of electricity used for own consumption.
EPIF bases its emission intensity metric on power and heat generation activities. EPIF measures its emission
intensity in respect of its energy production as well as in respect of the net revenue.
g CO 2 | 2022 | 2023 | 2024 | 2025 |
Scope 1 CO 2 | 3,259 | 2,105 | 1,560 | 869 |
Czech CHPs (divested) | (2,390) | (1,467) | (1,111) | (454) |
Scope 1 CO 2 | 868 | 638 | 449 | 415 |
Energy produced - reported | 5,041 | 3,932 | 3,629 | 2,419 |
Czech CHPs (divested) | (3,388) | (2,491) | (2,189) | (927) |
Energy produced - adjusted | 1,653 | 1,441 | 1,440 | 1,492 |
CO 2 | 646 | 535 | 430 | 359 |
CO 2 | 525 | 442 | 312 | 278 |
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tonnes 2 | 2021 | 2022 | 2023 | 2024 | 2025 | % 25/24 |
Net revenue (EUR million) | 2,789 | 4,695 | 4,268 | 3,581 | 3,115 | (13%) |
GHG emission intensity (location-based) | 1,339 | 777 | 582 | 1,663 | 1,449 | (13%) |
GHG emission intensity (market-based) | N/A | N/A | N/A | 1,707 | 1,494 | (12%) |
Accounting Principles:
-
CO
2
2
2
companies divided by total energy production.
-
GHG emissions intensity (tonnes CO
2
: Total GHG emissions (Scope 1, 2 and
3), both market-based and location-based divided by total net revenue.
-
Net revenue (EUR million):
Revenues as presented in
the
Consolidated statement of
comprehensive income in the EP Infrastructure Consolidated Financial Statements as of and for
the year ended 2025.
E1-9 – Financial effects from climate-related risks and opportunities
This chapter presents anticipated financial effects from climate-related risks and opportunities (R&Os) to
EPIF. First, the approach and methodology are described, and then the results are presented.
Methods
Physical and transition climate risks cause negative financial effects to assets (carrying amount) and net
revenues. EPIF assessed financial effects for its assets and business activities subject to these climate risks.
EPIF has not yet identified any liabilities stemming from climate-related risks which would have to be
recognized in the financial statements.
For physical risks we assess whether assets are subject to acute and chronic climate hazards.
For transition risks we assess assets at risk of becoming stranded due to locked-in GHG emissions. Although
this is not directly quantifying transition risks, it is easily calculated, and it drives most transition risks.
Therefore, we consider it a good proxy for our stakeholders.
The methodology to quantify financial effects of physical/transition risks is detailed in the following
subsections:
●
Scope
●
Time horizons and scenarios
●
Calculation methods
●
Critical assumptions and parameters
●
Limitations
Table 36 GHG emission intensity based on net revenue
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Scope
This section describes how we scoped the financial effects assessment in terms of subsidiaries, asset and
revenue categories, and climate hazards (for physical risks). The risks were assessed for the operational
part of the value chain
Subsidiaries
EPIF subsidiaries with primary activities that can be notably affected by physical/transition risk (
see
climate-related hazard (physical risk) or to have locked-in GHGs (transition risk). “Energy trading”-related
and “holding company” activities are not notably impacted, as these activities do not depend on physical
assets related to transition or physical risks
. “Energy services” activities are of marginal size compared to
the other activities and can therefore not result in notable impacts at EPIF level.
Table 37 Primary activities included in scope for physical/transition risk financial effects assessment
Primary activity categories (each EPIF activity category) | Included in physical exposure scope? | Included in transition exposure scope? |
By-products trading | ||
Combined heat and power generation from coal, gas, biomass, and municipal waste | ✔ | ✔ |
District heating/cooling distribution | ✔ | ✔ |
Electricity generation from hydropower | ✔ | ✔ |
Electricity generation from wind power | ✔ | ✔ |
Electricity generation using solar photovoltaic technology | ✔ | ✔ |
Energy related services | ||
Gas storage | ✔ | ✔ |
Holding companies | ||
Supply and trading | ||
Transmission and distribution of natural gas | ✔ | ✔ |
Transmission and distribution of electricity | ✔ | ✔ |
Asset and revenue categories
For the in-scope subsidiaries, only certain asset categories were determined to be potentially at risk, while
the non-physical asset categories were excluded. The asset categories were sourced from the
Consolidated
Financial Statements as of and for the year ended 2025
●
For physical risk exposure, the value of Property, plant and equipment, Investment property, and
Inventories was considered to assess the assets at risk.
62
value chain are excluded from the assessment as EPIF found those immaterial (see E1.IRO-1).
63
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●
For transition risk exposure, the value of Property, plant and equipment, Investment property,
Inventories, and Intangible assets and Goodwill was considered.
From the revenue perspective, all revenue categories reported under Revenues in the
Consolidated
Financial Statements as of and for the year ended 31 December 2025
Climate hazards
process
. The analysis excluded certain relevant hazards (grey in
the
table), as existing climate modelling
data could not project these hazards.
Table 38 Hazards in scope for the physical risk financial effects assessment
Type | Temperature-related | Wind-related | Water-related | Solid mass-related |
Chronic | Changing temperature (air) | Changing wind patterns | Changing precipitation patterns and types (rain, hail, snow/ice) | Coastal erosion |
Changing temperature freshwater | Precipitation or hydrological variability | Soil degradation | ||
Changing temperature marine water | Ocean acidification | Soil erosion | ||
Heat stress | Saline intrusion | Solifluction | ||
Temperature variability | Sea level rise | |||
Permafrost thawing | Water stress | |||
Acute | Heat wave | Extratropical cyclone | Drought | Avalanche |
Cold wave/frost | Storm (including blizzards, dust and sandstorms) | Heavy precipitation (rain, hail, snow/ice) | Landslide | |
Wildfire | Tornado | Flood (coastal, fluvial, pluvial, ground water) | Subsidence | |
Glacial lake outburst |
Relevant,
excluded
assessment of financial
effects
Time horizons
EPIF applies the short, medium, and long-time horizons for three Shared Socioeconomic Pathways (SSP)
climate scenarios to assess financial effects related to the physical/transition risks.
64
65
Relevant,
included
assessment of financial effects
Not applicable
66
See Table 23
67
E1.IRO-1
section for the relevant climate scenarios
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Regarding physical risk, climate data providers project hazards for multi-year intervals. EPIF mainly used
data from Jupiter Intelligence (Jupiter) and the World Resources Institute (WRI). EPIF matched its time
horizons with the closest time intervals available from Jupiter and WRI data to project hazards.
Regarding transition risk, the long-term horizon end-year is set to 2050 instead of 2060, as EPIF's exposure
to locked-in GHGs is expected to be close to zero by 2050. When EPIF’s net-zero GHG target is achieved,
no notable financial effects related to this transition risk are expected.
Type of assessment | Time horizons | Climate scenarios |
Physical | Climate data providers project hazards for multi-year intervals. EPIF mainly used data from Jupiter Intelligence (Jupiter) World Resources Institute (WRI) . EPIF matched its time horizons with the closest time intervals available from Jupiter WRI | EPIF uses SSP1-2.6 and SSP5-8.5 scenarios to assess physical climate risks, as these scenarios project the lower and upper levels of global warming (and resulting climate effects), respectively. |
Transition | The long-term horizon end-year is set to 2050 instead of 2060, as EPIF's exposure to locked- in GHGs is expected to be close to zero 2050. When EPIF’s net-zero GHG target is achieved, no exposure to this material risk remains. | EPIF uses the SSP1-2.6 climate scenario to assess transition climate risks, as this scenario considers the most ambitious and strict climate policies, translating in the highest risks from exposure to locked-in GHGs. |
Calculation methods
Physical climate risk
Physical climate risks are assessed by comparing hazard probabilities from climate projections to asset-
hazard failure thresholds. Climate data providers (see below), determine the probability of the hazard
occurring per climate scenario and year. Asset-hazard failure thresholds can differ per asset and hazard, as
the robustness of each asset type towards climate hazards varies.
When hazards are projected to exceed the thresholds, they are considered to create a notable risk of negative
financial effects such as increased costs from damages, less revenues from downtime and/or asset
devaluation. For example, an electric substation is exposed when the expected flood depth reaches the
failure threshold.
For critical assets such as combined heat and power plants and gas compressor stations, highly granular
location-specific climate projections are used provided by Jupiter Intelligence. For SSD's electricity grid
and SPPD's gas grid Jupiter Intelligence data is used for a sample of coordinates in infrastructure-dense
parts of the operating areas to represent the distributed grid assets. Other assets are not assessed using
Jupiter Intelligence data, but they are scanned for floods and water stress in Aqueduct climate projection
68
69
70
71
exception holds for Aqueduct flood risk (no future time horizons are available for floods, therefore only the current flood risk could be used and
is assumed to be equal across scenarios and time horizons in the future)
72
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data. Renewables and logistics assets are deemed exposed to both acute and chronic physical risk across all
climate scenarios and time horizons based on literature
to be exposed to heat risk across all climate scenarios and time horizons, as all scenarios and time horizons
project significant temperature increases.
Transition risk (exposure to locked-in GHG emissions)
The transition risk assessment determines the exposure to locked-in GHG emissions. Locked-in emissions
are defined by ESRS as fossil emissions from active or firmly planned key assets in the remainder of their
operating lifetime. This is quantified in terms of carrying amount of exposed assets and net revenues of
exposed EPIF operations.
The exposure to locked-in GHG emissions is assessed on a subsidiary level for each time horizon. Due to
its scheduled coal-phaseout, EPIF will no longer be exposed to locked-in coal emissions after 2030. For
other activities, we assume (for unmitigated exposure) that the operational lifetime will be extended.
For mitigated exposure, we take into consideration how EPIF is planning to decarbonize its activities in
line with the mitigation actions listed in the transition plan. If a mitigation action fully decarbonizes the
activity, the activity is considered no longer exposed. When a mitigation action only partially decarbonizes
the activity, the activity is still considered fully exposed (to be conservative and transparently reflect the
presence of remaining locked-in GHG emissions).
73
(Juhola, 2023
;
UNEF PI, 2024
)
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Critical assumptions and parameters
risks.
Table 39 Critical assumptions/parameters regarding transition/physical exposure assessment
# | Physical/ Transition risk | Assumptions/ parameters | Description/reference |
1 | Physical | Assets affected by higher temperatures (chronic risk) | All thermal cogeneration heating plants, and electricity grid assets are considered at risk to higher temperatures regardless of a threshold, due to notable global temperature increase in both the orderly transition and high carbon scenario. |
2 | Physical | Setting of failure thresholds | Failure thresholds that determine whether an asset is subject to notable physical risk (exposed), are not based on engineering studies but are based on expert judgments. |
3 | Physical & transition | Exclusion of asset decommissioning | No asset decommissioning is considered in the exposure assessment to be conservative, as asset lifetimes may be extended (i.e., when an asset reaches its planned decommissioning year, exposure will not be reduced by removing the asset from the portfolio). EPIF made an exception for coal assets , which are assumed to be decommissioned in the long-term time horizon. |
4 | Transition | Extrapolation of current mitigation actions into the long term | The long-term planning horizon for mitigation actions is derived from the extrapolation of currently identified measures. Thus, mitigation actions planned until 2030 are projected to extend into the long term. |
74
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Limitations
limitations to increase robustness of results.
Table 40 Limitations regarding transition/physical exposure assessment
# | Physical/ Transition risk | Limitation | Description/reference |
1 | Physical & transition | Financial effects not quantified, but merely proxies | ESRS does not provide an unambiguous definition for quantifying financial effects from locked-in GHG emissions (transition risk) and climate hazards (physical risk). The financial effects’ results are proxies showing the exposure of current asset values and net revenues to climate risk. These effects are not quantitative, and do not project effects on EPIF’s balance sheet and profit/loss sheet as a margin erosion assessment would. |
2 | Physical | Limited data at subcompany level to assess exposure to physical risk | The coarse granularity of asset/revenue and location data reduces the accuracy of physical risk exposure assessments. Subcompany data often included a single coordinate per subcompany for climate exposure scans. While most subcompanies had one critical asset location, some did have multiple locations that may have been excluded due to lack of data. |
3 | Physical | Thresholds are defined for asset groups and not differentiated by individual assets. | EPIF classified each subcompany into a broad asset group based on its primary activity, unless individual asset data was provided. Standard hazard-specific failure thresholds were applied to these groups, though actual thresholds likely vary among specific assets within the groups. |
4 | Physical | Variation exposure assessment methods | EPIF had to implement multiple climate data methods (see section ) to assess EPIF’s exposure to physical risk. The variation in these climate data methods decreases consistency of results, as each climate data provider or literature source has their own assumptions. |
5 | Physical | No revenue data for standalone assets | Revenue data was only available at the subcompany level, not at the asset level. To estimate individual asset revenue contributions, we proportionally allocated revenues based on each asset's value relative to the total asset value. |
6 | Physical | Not all relevant hazards could be assessed | The climate projection data could not assess all hazards that could notably affect EPIF, such as landslides. included in the physical risk financial effects assessment scope. |
6 | Transition | Use of subcompany- activity mapping to assess exposure to locked-in GHGs | EPIF assessed subcompanies' transition risk exposure based on their primary activity's relation to locked-in GHG emissions. This approach reduces accuracy, as it overlooks alternative activities that subcompanies may engage in alongside their primary activity. Also, when the activity label contained both fossil and non-fossil operations, the activity was classified as ‘’exposed to locked-in GHGs’’ to be conservative. |
7 | Transition | Unknown long term mitigation actions | Current mitigation actions planned until 2030 are assumed to extend into the long term. However, it is uncertain if these actions alone will achieve EPIF’s decarbonization, as new mitigation efforts that are not yet identified may also contribute. |
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Results
Financial effects physical risk
climate risks in each scenario and for each time horizon. Assets are expressed in terms of carrying amount.
The table also depicts how many assets (again in terms of carrying amount) are addressed by planned risk
adaptation actions
. The two climate scenarios show similar results, as chronic risk exposure stays constant
and acute risk exposure shows slight differences between scenarios and time horizons.
EPIF’s exposure to chronic hazards is mostly explained by EPIF’s thermal generation and electricity grid
assets that are exposed to higher air temperatures and/or water stress. Exposure to these chronic hazards
decreases in the long term compared to the short/medium term, because exposed coal assets are phased out
by 2030.
EPIF’s exposure to acute risk remains largely stable across time horizons and scenarios. Most of EPIF’s
exposure to acute hazards is related to floods, with a smaller amount of EPIF assets exposed to cold and
wind hazards. Between scenarios and time horizons, the minor variations in acute risk exposure are due to
cold and wind hazards affecting EPIF’s electricity distribution grid in Slovakia. SSP5-8.5 projects a
reduction in cold waves and increase in high wind speeds compared to SSP1-2.6 in the long-term, which
affects SSD’s exposure to these risks.
describes the implications
of the financial effects highlighted in the table below on EPIF’s strategy and business model and describes
how the assets exposed to physical risk are addressed by adaptation actions.
75
Table 25
E1-3 section 3.6
.
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Table 41 EPIF’s exposure to material physical risk, and share of exposure addressed
Parameter | Unit | Risk type | ssp126 | ssp585 | ||||
Short (FY2026) | Medium (2027-2031) | Long (2032-2060) | Short (FY2026) | Medium (2027-2031) | Long (2032-2060) | |||
Exposed assets | Carrying amount (EUR million) | Acute | ||||||
Chronic | ||||||||
Total | ||||||||
% of total carrying amount | Acute | 10% | 10% | 10% | 10% | 10% | 10% | |
Chronic | 8% | 8% | 7% | 8% | 8% | 7% | ||
Total | 16% | 16% | 14% | 16% | 16% | 14% | ||
Exposed assets addressed by adaptation actions | Carrying amount (EUR million) | Acute | ||||||
Chronic | ||||||||
Total | ||||||||
% of exposed carrying amount | Acute | 25% | 27% | 25% | 27% | 25% | 23% | |
Chronic | 99% | 99% | 99% | 99% | 99% | 99% | ||
Total | 52% | 52% | 47% | 52% | 52% | 47% | ||
Exposed revenues | EUR million | Acute | ||||||
Chronic | ||||||||
Total | ||||||||
% of total revenue | Acute | 6% | 6% | 6% | 6% | 6% | 6% | |
Chronic | 11% | 11% | 7% | 11% | 11% | 7% | ||
Total | 15% | 15% | 10% | 15% | 15% | 10% | ||
76
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Table 42 Reconciliation of asset values and revenues used for physical risk assessment to the financial statements
Type of risk | ESRS | Financial statements relevant to carrying amount exposure | Rationale | Do not include | Rationale |
Physical chronic events) | E1-9 68a | equipment minerals and mineral products | related to physical assets affected by acute and chronic events | assets | not affected by acute and chronic events |
Transition (stranded assets from locked in emissions) | E1-9 68b | equipment minerals and mineral products goodwill investees | Investment property and inventories can be potentially stranded if having locked in emissions can be stranded (or ‘’impaired’’) by reputation/regulation related to locked in emissions | assets | trade/tax receivables, contracts and prepayments not impacted by locked in emissions and cash equivalents'' can be used for all purposes, not related to locked in emissions |
Physical chronic events) | E1-9 68a | - Electricity services | -All revenue streams from physical assets can be affected by chronic and acute physical events. | - Other revenues for trading - Revenues from waste management | - Derivative and similar revenues assumed not affected by physical acute and chronic events - EPIF states that waste management and ''other revenues'' are not material to physical climate risk |
Transition (affected revenues from locked in emissions) | E1-9 68b | - Electricity services | - All revenue streams from key carbon assets are potentially affected | - Other revenues for trading - Revenues from waste management | - Derivative and similar revenues assumed not affected by transition events - EPIF states that waste management and ''other revenues'' are not material to physical climate risk |
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Table 43 Locations exposed to material physical risk
Primary activity | Company name | Asset | Exposed to | NUTS3 region | |
Acute | Chronic | ||||
Combined heat and power generation from coal and biomass | Plzeňská teplárenská, a.s. | Heating plant | N | Y | CZ032 |
Electricity generation from bioenergy | Alternative Energy, s.r.o. | Biogas plant | Y | Y | SK010 |
Electricity generation from wind | VTE Pchery, s.r.o. | Wind park | Y | Y | CZ010 |
Electricity generation using solar photovoltaic technology | ARISUN, s.r.o. | Solar park | Y | Y | SK010 |
POWERSUN a.s. | Solar park | Y | Y | CZ010 | |
Triskata, s.r.o. | Solar park | Y | Y | SK010 | |
Gas storage | Nafta Speicher | Gas storage facility | Y | N | DE21K |
Transmission and distribution networks for renewable and low-carbon gases | eustream, a.s. | Gas compressor Kapusany | Y | N | SK010 |
SPP - distribucia | Gas distribution network | Y | N | SK021,SK010,SK023,SK03 2,SK042,SK041,SK031,SK 022 | |
Transmission and distribution of electricity | Stredoslovenská distribučná, a.s. (“SSD”) | SSD poles&lines | Y | Y | SK021,SK031,SK032 |
SSD | SSD transformers | Y | Y | SK021,SK031,SK032 | |
SSD | SSD other | Y | Y | SK021,SK031,SK032 | |
SSD | All remaining assets | Y | Y | SK021,SK031,SK032 | |
77
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emissions for each time horizon. Only the orderly transition scenario (SSP1-2.6) is considered relevant for this metric.
Assets are expressed in terms of carrying amount. The table also depicts how many assets (again in terms of carrying
amount) are addressed by planned risk mitigation actions.
Table 44 Exposure of carrying amount of assets and net revenues to locked in GHGs
Exposure to locked-in GHG emissions
Overall, asset exposure to locked-in GHG emissions reduces over time. Coal phaseout by 2030 reduces exposed assets
in the long-term compared to the medium term. Besides the coal phaseout, gas-fired generation and gas infrastructure
assets and revenues remain exposed to locked-in GHGs, but this exposure is projected to be fully addressed in the
long term. Fossil combined heat and power plants are planned to be either retrofitted or replaced to be hydrogen-
ready, or decommissioned. For gas infrastructure EPIF is planning to reduce methane leakage and to prepare gas grids
for hydrogen adoption.
Section
E1.SBM-3
on EPIF’s strategy and business model.
Parameter | Unit | Risk type | ssp126 | ||
Short-term (FY2026) | Medium-term (2027-2031) | Long-term (2032-2050) | |||
Exposed assets | Carrying amount (EUR million) | Transition | |||
% of total carrying amount | Transition | 71% | 71% | 69% | |
Exposed assets addressed by mitigation actions | Carrying amount (EUR million) | Transition | |||
% of exposed carrying amount | Transition | 3% | 100% | ||
Exposed revenues | EUR million | Transition | |||
% of total revenue | Transition | 32% | 32% | 28% | |
Effects of climate related opportunities
While EPIF prioritizes disclosure of climate-related risks to demonstrate the resilience of its business model under
potential future scenarios, the Group also recognizes material opportunities arising from the energy transition. The
energy sector is undergoing a fundamental transformation, creating significant market disruption as regulatory
frameworks and political decisions play an increasingly decisive role.
EPIF’s strategy is aligned with these structural shifts. The Group focuses on operation of critical gas midstream and
downstream infrastructure which is expected to continue to play a crucial role in the transitional period, while being
adaptable to hydrogen to continue to fulfil its role in the decarbonized energy system.
Supported by its diversified portfolio, EPIF remains well positioned to adapt to evolving market conditions and
respond flexibly to regulatory developments and market signals.
In general, EPIF expects to achieve material cost savings through its climate mitigation and adaptation actions.
Climate mitigation is expected to significantly reduce exposure to carbon pricing, while climate adaptation measures
are intended to limit physical damage from extreme weather events. These cost savings constitute an important input
into EPIF’s decision-making processes.
78
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3 EU Taxonomy assessment
In July 2020, the European Commission adopted the Taxonomy Regulation (“EU Taxonomy” or “Regulation”), a
classification system establishing a list of environmentally sustainable economic activities which is supposed to direct
investments towards sustainable projects. The EU Taxonomy establishes 6 environmental objectives:
1.
Climate change mitigation
2.
Climate change adaptation
3.
The sustainable use and protection of water and marine resources
4.
The transition to a circular economy
5.
Pollution prevention and control
6.
The protection and restoration of biodiversity and ecosystems
The list of individual environmentally sustainable activities was subsequently published in the first Climate Delegated
Act and is applicable from January 2022. The decision on classification of gas and nuclear power and heat generation
was postponed until March 2022, when the Complementary Climate Delegated Act was adopted by the European
Commission, giving gas and nuclear energy generation a status of transitional activities. The complementary
delegated act applies from January 2023 and is expected to accelerate the shift from emission-intensive fossil fuels.
On 27 June 2023, the Commission adopted a Taxonomy Environmental Delegated Act, including a new set of EU
Taxonomy criteria for economic activities making a substantial contribution to one or more of the non-climate
environmental objectives, namely: sustainable use and protection of water and marine resources, transition to a
circular economy, pollution prevention and control and protection and restoration of biodiversity and ecosystems.
These delegated acts establish technical screening criteria to assess alignment with the EU Taxonomy. The technical
screening criteria include:
●
Substantial contribution criteria – to determine whether the economic activity substantially contributes to any
of the six environmental objectives above
●
Do no significant harm (“DNSH”) criteria – to determine whether the economic activity does no significant
harm to any of the other environmental objectives
The EU Taxonomy requires companies to disclose share of their turnover, operating expenditures (“Opex”) and
capital expenditures (“Capex”) which are associated with environmentally sustainable activities as defined in the EU
Taxonomy and the delegated acts. The activity is considered as taxonomy-eligible if it is listed and described in the
delegated acts irrespective of whether that economic activity meets any or all the technical screening criteria laid
down in those delegated acts. The activity is considered as taxonomy-aligned if it meets all substantial contribution
criteria, all do no significant harm (“DNSH”) criteria and complies with the minimum social safeguards stated in
article 18 of the Regulation.
EPIF fully supports the goals of the EU Taxonomy which provides definitions of which economic activities can be
considered as environmentally sustainable and protect private investors from greenwashing. The increased clarity
shall enable the private sector to direct investments to sectors with substantial contribution to sustainable
development.
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Application by EPIF
In its first disclosure for the financial year 2021, EPIF used the option to report only on the taxonomy eligibility and
not on the taxonomy alignment of its economic activities. Since 2022, EPIF has regularly performed a full assessment
of the taxonomy alignment of its activities. As a first step, taxonomy-eligible economic activities were identified
across the EPIF Group, based on their inclusion in the delegated acts. The second step included an assessment of
whether any portion of the activity contributes to any of the six environmental objectives which are described by the
EU Taxonomy. For this purpose, the substantial contribution criteria in Annex 1 and Annex 2 of the Climate Delegated
Act and the Environmental Delegated Act were assessed. The third step was to ensure that the activity does no
significant harm to other environmental objectives based on assessment of the DNSH criteria. The last step was to
assess compliance of the activity with minimum safeguards. Assessment of compliance with minimum safeguards
has been performed for all activities at once as EPIF Group standards are implemented across the entire Group.
The economic activities below have been identified by EPIF as potentially contributing to the climate change
mitigation and were subsequently assessed for taxonomy eligibility and alignment. EPIF has assessed its activities
also for potential contribution to the other environmental objectives and concluded that the contribution of EPIF
activities is solely limited to climate change mitigation. This conclusion is based on the nature of EPIF's operations,
where the primary focus is reducing greenhouse gas emissions.
Activity code | Taxonomy-eligible activity | |
4.1. | Electricity generation using solar photovoltaic technology | |
4.3. | Electricity generation from wind power | |
4.5. | Electricity generation from hydropower | |
4.8. | Electricity generation from bioenergy | |
4.9. | Transmission and distribution of electricity | |
4.10. | Storage of electricity | |
4.14. | Transmission and distribution networks for renewable and low-carbon gases | |
4.15. | District heating/cooling distribution | |
4.20. | Cogeneration of heat/cool and power from bioenergy | |
4.22. | Production of heat/cool from geothermal energy | |
4.30. | High-efficiency co-generation of heat/cool and power from fossil gaseous fuels | |
6.2. | Freight rail transport |
Minimum safeguards
The EU Taxonomy establishes a set of minimum safeguards that provide guidelines to ensure companies classifying
their activities as sustainable and taxonomy-aligned adhere to essential standards related to human rights, bribery and
corruption, taxation, and fair competition. These safeguards serve as a protective measure to prevent companies
engaged in green investments from being recognized as sustainable if they violate human rights or engage in corrupt
or unethical practices. The minimum safeguards require companies to align with the OECD Guidelines for
Multinational Enterprises and the UN Guiding Principles on Business and Human Rights.
a.
Human rights
In the area of human rights, EPIF has implemented processes to safeguard the rights of its employees and those within
its supply chain. Within its own operations - exclusively located in EU countries - EPIF has assessed the risk of human
rights violations, such as child labor or forced labor, to be minimal. However, the company remains cautious by
maintaining robust safeguards, including a grievance mechanism that allows employees to report human rights-related
concerns.
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Within its supply chain, EPIF follows a
Procurement Policy
embedded in EPIF’s own policies. Furthermore, EPIF expects its suppliers to uphold the eight fundamental
Conventions of the International Labour Organization (ILO). To ensure compliance, the company conducts supplier
screenings in accordance with its
Know Your Customer (KYC) Directive,
and assesses potential human rights risks before initiating a business relationship. EPIF is in the process of formalizing
and standardizing its KYC process across the Group while integrating a risk-based classification of its supply chain.
A comprehensive action plan outlining these efforts is detailed in the
Procurement Roadmap
Statement on Due Diligence.
b.
Bribery and corruption
EPIF has established comprehensive policies and procedures across the Group to uphold high ethical standards and
ensure zero tolerance for corruption or any form of inappropriate behavior. The
Anti-Corruption and Anti-Bribery
Policy
is designed to ensure full compliance with all applicable anti-corruption and anti-bribery laws and regulations
in the countries where EPIF operates or plans to conduct business. It also reinforces the company’s commitment to
conducting business in a socially responsible and ethical manner. The policy clearly outlines that the acceptance of
gifts and donations, including charitable contributions, is regulated, and that the receipt or payment of bribes,
including facilitation payments, is strictly prohibited. To maintain the integrity and effectiveness of this policy, EPIF
Group conducts regular reviews to assess its suitability, adequacy, and effectiveness.
c.
Tax transparency
The Tax Governance Policy
company's corporate interests and long-term business strategy. It is designed to minimize tax risks and inefficiencies
in business decision-making. To mitigate the risk of tax non-compliance and other identified tax risks, material
transactions are thoroughly assessed by approved tax experts. The policy's primary objectives include ensuring
compliance with tax regulations across all countries and territories where the Group operates, preventing and
minimizing significant tax risks, and strengthening relationships with tax authorities through transparency and
responsible tax practices. By adhering to this policy, EPIF maintains a robust tax governance framework that supports
sustainable business operations while upholding regulatory obligations.
d.
Fair competition
Compliance with all applicable anti-trust laws in the countries where EPIF operates or plans to conduct business is
ensured by the
Anti-Trust Law Policy.
It is designed to uphold fair competition, open markets, and ethical business
practices while aligning with socially responsible corporate conduct. The policy mandates that all employees and
directors strictly adhere to anti-trust regulations and fully understand the serious consequences of any violations. EPIF
is committed to ethical business operations and actively supports a culture of compliance through well-defined
measures and procedures that help prevent anti-trust infringements. As part of its compliance strategy, EPIF focuses
on raising awareness of potential conflicts with EU competition law and ensuring that employees, middle
management, and top executives are equipped with the necessary knowledge to identify and avoid such risks. This
proactive approach reinforces EPIF’s dedication to maintaining fair and competitive market practices.
e.
Conclusion
The policies governing matters described above are publicly available on EPIF website
https://www.epinfrastructure.cz/en/esg-policies/
.
Principles of the United Nations Global Compact or eight fundamental Conventions of the International Labour
Organization. There have been no instances of breaches of any of the defined standards based on regular
communication and reporting from EPIF subsidiaries. EPIF ensures that principles embedded in our policies are
regularly shared with employees across the Group. Therefore, EPIF believes that its activities comply with the
Annual Financial Report for the year 2025 – Section X.
Consolidated Sustainability Statement
107
minimum safeguards. When assessing eligible activities, we have concluded that all activities meeting the DNSH
criteria fulfil also minimum safeguards.
EU Taxonomy alignment assessment
Eligible activities
Electricity generation using solar photovoltaic technology (4.1.)
EPIF operates a portfolio of photovoltaic power generation sources in Czech Republic and Slovakia with the total
installed capacity of 15 MWe. Full revenues, Opex and Capex related to this activity were further considered for
taxonomy alignment as the activity corresponds to the definition “
The activity generates electricity using solar PV
technology
”.
The operations of renewable generation sources have been assessed in respect of the following do no significant harm
(“DNSH”) criteria:
●
Climate change adaptation
parks are considered as being at low risk of direct damage from more extreme weather events. There have been
no historical events causing material damage to solar parks operated by EPIF.
●
Circular economy
reach the end of their useful lives. This practice is commonly mandated by relevant laws and can involve an
obligation for companies to allocate funds for the associated decommissioning costs.
●
Biodiversity
assessments are commonly a vital part of the permitting procedures, ensuring that facilities are not located near
biodiversity-sensitive areas or do not pose any threat to these areas.
As a result of the assessment above, the full revenues, Opex and Capex related to electricity generation from
photovoltaic sources were classified as aligned.
Electricity generation from wind power (4.3.)
EPIF operates a wind park in Czech Republic with the installed capacity of 6 MWe . Full revenues, Opex and Capex
related to this activity were further considered for taxonomy alignment as the activity corresponds to the definition
“
The activity generates electricity from wind power
”.
The operations of renewable generation sources have been assessed in respect of the following do no significant harm
(“DNSH”) criteria:
●
Climate change adaptation
parks are considered as being at low risk of direct damage from more extreme weather events. The turbines can
be switched off in case of extremely strong winds with the potential to damage the turbines.
●
Circular economy
their useful lives. Specifically for the wind turbines operated by EPIF, the facility will either continue to be
operated if it remains financially viable, or the technology will be dismantled and sold, with the foundation
subsequently remediated. Another option is the complete dismantling and disposal of the technology, followed
by the remediation of the foundations. Alternatively, repowering may be carried out, which essentially involves
the same process as the previous two options but includes the installation of new technology.
Annual Financial Report for the year 2025 – Section X.
Consolidated Sustainability Statement
108
●
Biodiversity
assessments are commonly a vital part of the permitting procedures, ensuring that facilities are not located near
biodiversity-sensitive areas or do not pose any threat to these areas.
As a result of the assessment above, the full revenues, Opex and Capex related to electricity generation from wind
power were classified as aligned.
Electricity generation from hydropower (4.5.)
EPIF operates a small portfolio of hydroelectric power plants in Slovakia with total installed capacity of 3 MWe. Full
revenues, Opex and Capex related to these activities were further considered for taxonomy alignment as these
activities correspond with definitions in the substantial contribution criteria, specifically “
The electricity generation
facility is a run-of-river plant and does not have an artificial reservoir
”. The plants operated by EPIF are of a small
scale with limited impact on surrounding ecosystems.
The operations of renewable generation sources have been assessed in respect of the following do no significant harm
(“DNSH”) criteria:
●
Climate change adaptation
hydroelectric plants are considered as being at low risk of direct damage from more extreme weather events
resulting from the climate change.
●
Water
●
Biodiversity
part of the permitting procedures, ensuring that facilities are not located near biodiversity-sensitive areas or do
not pose any threat to these areas.
As a result of the assessment above, the full revenues, Opex and Capex reported by renewable generation sources
were classified as aligned.
Electricity generation from bioenergy (4.8.)
EPIF operates a biogas plant in Slovakia through its subsidiary Alternative Energy s.r.o. The activity is classified as
taxonomy-eligible as it corresponds to the taxonomy definition “
Construction and operation of electricity generation
installations that produce electricity exclusively from biomass, biogas or bioliquids
”. The activity also meets the
substantial contribution criterion #3 as the facility uses anaerobic digestion of organic material, where the biogas
production further meets the criteria of activity “Anaerobic digestion of bio-waste”, specifically:
●
The facility has a monitoring system in place to minimize methane leakage.
●
The produced biogas is directly used to generate electricity.
●
The bio-waste that is used for anaerobic digestion is segregated and collected separately.
●
The produced digestate is used as a fertilizer.
●
The share of food and feed crops as defined in
Article 2, point (40), of Directive (EU) 2018/2001
, on total
processed waste is less than 10%.
As the activity currently exceeds the emission limit values set out in
Annex II, part 2, to Directive (EU) 2015/2193,
it does not meet the DNSH criteria related to Pollution prevention.
Annual Financial Report for the year 2025 – Section X.
Consolidated Sustainability Statement
109
As a result of the assessment above, the full revenues, Opex and Capex were classified as eligible but not as aligned.
Transmission and distribution of electricity (4.9.)
EPIF operates the electricity distribution network in central Slovakia via its subsidiary Stredoslovenská distribučná
a.s. (“SSD”). This activity is associated with NACE code D35.13 (Distribution of electricity). Full revenues, Opex
and Capex reported from this activity were classified as taxonomy-eligible as the activity corresponds to the
description “
Construction and operation of distribution systems that transport electricity on high-voltage, medium-
voltage and low-voltage distribution systems
”.
Operation of SSD’s electricity distribution network was further considered for taxonomy alignment as it meets one
of the three substantial contribution criteria in Annex I, specifically “
the system is the interconnected European
system, i.e., the interconnected control areas of Member States, Norway, Switzerland and the United Kingdom, and
its subordinated systems
”. The sustainability aspect of this operation is further supported by the significant presence
of low-carbon sources connected to the network. In 2020-2024, 94% of the newly connected capacity have been
renewable energy sources, mainly solar installations. By facilitating the expansion of renewable power generation
sources, SSD plays a vital role in helping the EU achieve its decarbonization goals. In addition, the overall emission
intensity of the power generation sources in Slovakia (75 kg/MWh in 2024) is significantly below the average
intensity of the EU countries (187 kg/MWh in 2024). The fuel mix in Slovakia is dominated by nuclear plants and
hydroelectric power stations.
The activity of SSD has been assessed in respect of the following do no significant harm (“DNSH”) criteria:
●
Climate change adaptation
frequent and severe weather events, including storms, high winds, and wildfires. Based on the EPIF physical
climate risk assessment performed centrally at the Group level, the main physical risks for SSD are higher wind
speeds and more frequent storms. SSD has observed an increasing number of calamities with incremental costs
incurred. As part of increasing the resilience of the network against extreme weather events, SSD regularly
evaluates and identifies critical parts of the network that need to be reconstructed to enhance their resilience. To
reduce risks, preventive and corrective maintenance activities are regularly carried out, especially patrols, drone
monitoring, and vegetation management operations in the most exposed areas. Additionally, in the forestry area,
SSD conducts line relocations and burying previously overhead lines underground. By installing smart grid
elements, SSD increases the volume and quality of data used for system monitoring. In 2025, SSD incurred Capex
of EUR 10 million aimed at increasing resilience against adverse weather events. There is adequate insurance
coverage in place for the high voltage lines. When expanding the network into new areas, resilience to weather
impacts is a primary factor considered, and the technical solution is designed accordingly. As a critical
infrastructure operator, SSD has a business continuity plan in place to ensure timely resolution of all issues,
regardless of their cause.
●
Circular economy
regulation. SSD has dedicated internal guidelines in place on the treatment of hazardous and non-hazardous waste.
The produced waste results largely from maintenance and reconstruction works at the distribution network which
is vital to ensure reliable operation and security of supply. It includes construction waste (concrete, soil), ferrous
and non-ferrous metals, and hazardous waste such as electrical waste or oil-polluted parts. In line with internal
directives, SSD always follows the waste hierarchy, preferring recycling over landfilling where it is safe and
possible. Disposal of hazardous waste is performed through certified third parties.
●
Pollution prevention
management system (“EMS”) which is certified to ISO 14001 and is currently valid until October 2026. The EMS
is subject to an annual external audit, where no misalignment of SSD’s system with ISO 14001 has been identified
to date. SSD’s internal policies are also aligned with EPIF group-wide
Environmental Policy
. In line with the EU
regulation, SSD has replaced all technology which was contaminated with polychlorinated biphenyls (“PCBs”)
Annual Financial Report for the year 2025 – Section X.
Consolidated Sustainability Statement
110
which were widely used within the industry as coolants in electrical equipment. SSD also focuses specifically on
the disposal of waste containing asbestos, a material commonly utilized in construction for insulation purposes.
Further environmental risks stem from the operation of electrical substations containing oils. The operation of
such equipment presents a risk of water and soil contamination in case of technical failure and oil leakage due to
leaks. Any leaks, whether large or small, are reported immediately to the environmental team, which subsequently
ensures and manages remediation works to remove contamination and restore the area to its original condition.
For all these substations, the environmental team has developed emergency plans approved by the Slovak
Environmental Inspection, which oversees compliance. Each emergency plan is specifically tailored for each
individual substation with a thorough description of risks and a system set up for their elimination. Regular tests
of the impermeability of containment and emergency tanks in the facilities are carried out, including the pumping
of captured water and cleaning. Regular emergency preparedness training courses are organized for employees
every year to ensure their thorough preparation in case of an emergency event.
All products and components of the distribution system are designed and operated in accordance with the EU and
Slovak standards and regulations. If a specific element requires it, it is also in line with those concerning
electromagnetic radiation. Each construction is permitted by the relevant competent authorities, which in most
cases require opinions from relevant bodies responsible for assessing any adverse impact of our equipment on the
public. SSD is not aware of any objections regarding the assessment of the impact of electromagnetic fields on
the public.
●
Biodiversity
network cannot entirely avoid areas with higher prevalence of vulnerable species. In cooperation with the State
Nature Conservation of the Slovak Republic, SSD regularly takes part in activities that help assess and prevent
serious bird injuries that often occur along distribution networks. As a result, SSD is continuously installing
protective and diverting elements to prevent collisions of birds with high-voltage power lines. Additionally, in
cooperation with both the nature conservation and municipal authorities, SSD performs relocations of stork nests
within our distribution network to areas within southern Slovakia. The frequency of such relocations has increased
significantly in recent years, as storks have begun nesting in higher-altitude areas of Slovakia, where SSD assets
are largely situated, in response to rising temperatures associated with climate change.
As a result of the assessment above, the full revenues and Opex reported by SSD were classified as aligned as they
are related to power distribution as the sole business activity of SSD. In respect of Capex, the EU Taxonomy does not
allow the investments in non-smart metering equipment to be treated as aligned. This Capex portion was therefore
classified as non-aligned.
Storage of electricity (4.10.)
While development of battery energy storage systems (BESS) is not its major area of focus, EPIF is exploring
investments into BESS to complement its existing activities. Its subsidiary Stredoslovenská energetika has historically
provided grid-balancing services to the Slovak transmission system operator and is now developing a BESS system
to expand this service. The Capex associated with the BESS system is treated as taxonomy-eligible as it corresponds
to description “
Construction and operation of facilities that store electricity and return it at a later time in the form
of electricity
.”
The Revenues, Opex, and Capex have been assessed in respect of the following do no significant harm (“DNSH”)
criteria:
●
Climate change adaptation
of the site of the existing battery storage and other sites where further BESS systems might be developed was
assessed as low and mainly related to general increase in temperatures. This chronic risk is not expected to
significantly influence the functionality of the BESS systems.
Annual Financial Report for the year 2025 – Section X.
Consolidated Sustainability Statement
111
●
Circular economy
Environmental Policy
, EPIF is committed
to upholding the highest standards of battery recycling. With the commissioning of the first BESS systems, battery
recycling is expected to become a key focus in the medium to longer term, as these systems begin to reach the
end of their operational life.
●
Biodiversity
Biodiversity considerations, including Environmental Impact Assessments, play a crucial role in permitting
procedures, ensuring that facilities are not located near sensitive biodiversity areas or pose any risk to them.
Transmission and distribution networks for renewable and low-carbon gases (4.14.)
EPIF operates critical gas transit and distribution infrastructure in Slovakia via its subsidiaries eustream, a.s. (“EUS”)
and SPP - distribúcia, a.s. (“SPPD”). These activities are primarily associated with NACE codes D35.22 (Distribution
of gaseous fuels through mains) or H49.50 (Transport via pipeline). Both network systems are well positioned to
transit and distribute hydrogen or other renewable or low-carbon gases in the future. The gas networks can already
accommodate biomethane or synthetic methane, i.e. gases with the same characteristics as natural gas. EUS and SPPD
have already introduced projects to retrofit its gas infrastructure for large-scale transit and distribution of hydrogen.
According to the EU Regulation on renewable and natural gases and hydrogen, all gas transmission system operators
will be required to accept gas flows with a hydrogen content of up to 2% by volume at interconnection points between
Union Member States. The adjustments should primarily consist of replacing the metering equipment and other
network components. Eustream’s pipeline system is well positioned for transit of pure hydrogen as it consists of four
to five parallel pipelines, making it suitable for potential simultaneous transport of natural gas and pure hydrogen in
a dedicated line in the future. The hydrogen related Capex of eustream is currently limited and mainly includes
replacements of metering equipment and other minor adjustments to comply with the obligation for TSOs to accept
2% hydrogen blends.
SPPD has successfully completed a pilot project where it blended 10% of hydrogen into the gas distribution network
in a small village in Slovakia and tested interaction of the networks as well as appliances at households and
commercial customers (boilers, cookers). In 2024, SPPD was able to certify the network to distribute a 10% hydrogen
blend in the local networks and a 5% blend in the high-pressure pipeline. In 2025, SPPD launched the H2Demo
project, which involves a dedicated hydrogen polygon to simulate the distribution of pure hydrogen in an isolated
network section. The network of SPPD is relatively modern and a high share of polyethylene pipes (nearly 60% of
local networks) with superior permeability characteristics makes the network ideally positioned to accommodate
hydrogen in the future. In the case of SPPD, all newly laid pipelines at local networks are made of polyethylene which
is proven to be compatible with 100% hydrogen.
As of now, the share of renewable gases in the networks is marginal and limited to small volumes of biomethane. To
assess taxonomy alignment of activities which currently transit and distribute almost solely natural gas but are
undergoing a gradual retrofit to adopt hydrogen, EPIF followed the notice of the European Commission on the
interpretation of certain provisions of the EU Taxonomy and related delegated acts approved in principle on 29
November 2024. For activity 4.14., this guidance specifies that such companies should report only their Capex related
to retrofit of their existing infrastructure to enable transit and distribution of a hydrogen blend as eligible, while
Turnover and Opex need to be reported as non-eligible. In addition, the eligible Capex needs to be instrumental for
the adoption of renewable gases in the broader system.
In respect of Capex, we have identified investments which make the networks ready for future accommodation of
hydrogen and which comply with the substantial contribution criteria, specifically “
retrofit of gas transmission and
distribution networks that enables the integration of hydrogen and other low-carbon gases in the network, including
any gas transmission or distribution network activity that enables the increase of the blend of hydrogen or other low
carbon gasses in the gas system
”. Both SPPD and eustream have distribution and transit of purely renewable gases
as a cornerstone of their long-term transition strategy. In the transitional period, the networks are expected to be used
Annual Financial Report for the year 2025 – Section X.
Consolidated Sustainability Statement
112
for transport of natural gas, while all necessary adjustments to the networks and blending trials are performed, with
the ultimate goal to dedicate the pipelines to 100% renewable gases in the future.
Based on the assessment above indicating that the identified hydrogen-compatible Capex is part of a long-term
transition plan, the Capex was further considered for taxonomy alignment, subject to the assessment of DNSH criteria
below. We also note that the hydrogen-compatible Capex identified at eustream was rather immaterial.
The Capex incurred as part of the transmission and distribution network operations has been assessed in respect of
the following DNSH criteria:
●
Climate change adaptation
more extreme weather events resulting from the climate change as the gas pipelines are predominantly laid down
under the ground, providing significant protection. The gas distribution network is particularly resilient against
severe weather conditions such as extreme winds. However, a more tangible risk arises from extreme local rainfall
and subsequent floods, which could potentially lead to damage through landslides and erosion. SPPD conducts
regular monitoring of geological factors, including landslides, erosion, and waterlogging resulting from
groundwater rise after floods. Based on this monitoring, the high-pressure network is segmented into 10 risk
levels according to the likelihood of potential damage. The higher the risk assessment, the more frequent physical
visits are conducted on-site for monitoring purposes. Over the past two decades, the incidence of damages caused
by geological factors has remained stable.
●
Water
– Operation of existing gas transmission and distribution networks does not pose direct risk for any water
bodies and both entities have complied with local regulation and internal environmental policies. At the gas
transmission network, each compressor station has a preventive plan to avoid discharge of pollutants into the
environment in line with
Act no. 364/2004 Coll
., on Waters. The expansion of the networks leading to potential
harm to waters during the construction phase is relatively limited. The exception was a construction of the Poland-
Slovakia gas interconnector completed by EUS in October 2022, for which an Environmental Impact Assessment
(EIA) had been carried out and the environmental permit had been issued by the competent authority. At the gas
distribution network, SPPD has implemented an Integrated Management System, which integrates occupational
health and safety, environment, and quality processes. Additionally, the Methodological Guideline for
Environmental Management contains specific guidelines for water pollution prevention. All individuals involved
in the transportation of hazardous goods undergo regular training, and their activities are monitored. At locations
where handling of more than 1,000 litres of dangerous substances occurs, emergency plans are developed and
approved, and emergency drills are conducted annually.
●
Pollution prevention
(environmental management). Both entities further hold the certification ISO 3834 (welding quality), and ISO
9001 (quality management), while EUS also holds certification ISO 50001 (energy management). EUS and SPPD
ensure compliance with EU requirements regarding efficiency and other parameters in the technology used (such
as compressors operated by EUS and regulation stations operated by SPPD) through their procurement process.
●
Biodiversity
the international Ramsar Convention on Wetlands. For all development and reconstruction works which were
performed in the respective areas, all required permits were obtained. Impact on biodiversity is a primary
consideration in the decision-making process on the development and subsequent operation of the networks. In
line with its biodiversity policy, SPPD generally strives not to interfere with areas of the highest biological
diversity through its activities. SPPD continues its efforts to preserve biodiversity after the construction of a
facility, both during operation and when decommissioning facilities. The goal of SPPD is to restore the landscape
affected by its activities to a state that is as natural as possible for the given locality, creating viable habitats for
original species in that area.
Annual Financial Report for the year 2025 – Section X.
Consolidated Sustainability Statement
113
As a result of the assessment above, the identified hydrogen-compatible Capex reported by SPPD and EUS was
classified as taxonomy-aligned. We note that turnover and Opex related to these activities are treated as not eligible
as the networks currently transit marginal volumes of renewable gases (currently represented solely by biomethane).
District heating/cooling distribution (4.15.)
EPIF operates district heating networks in major regional cities in the Czech Republic, associated with NACE code
D35.30 (Steam and air conditioning supply). The full turnover, Opex and Capex reported from this activity was
classified as taxonomy eligible as the activity corresponds to the description “
Construction, refurbishment and
operation of pipelines and associated infrastructure for distribution of heating and cooling, ending at the sub-station
or heat exchanger
”.
Operation of EPIF’s district heating networks was further considered for full taxonomy alignment as it meets one of
the two criteria in Annex I, specifically “
the system meets the definition of efficient district heating and cooling
systems laid down in Article 2, point 41, of Directive 2012/27/EU
”. This criterium requires the district heating or
cooling system to use at least 50 % renewable energy, 50 % waste heat, 75 % cogenerated heat or 50 % of a
combination of such energy and heat. EPIF operations are aligned with the requirement as the heat distributed through
its network is produced solely in cogeneration mode by the adjacent cogeneration heating plants which are also in
ownership of EPIF. The exceptions are occasional short periods during winter when the peak heat demand needs to
be partly covered by back-up hot water boilers.
The district heating operations have been assessed in respect of the following DNSH criteria:
●
Climate change adaptation
damage from more extreme weather events resulting from the climate change. The pipes are predominantly laid
down under the ground. The lines located above the ground might be partly located in forest areas and exposed
to falling trees. However, the network mainly consists of large-diameter pipes with a wall thickness of 10mm,
and no damage has been historically caused by falling trees on the pipeline. Moreover, a protective zone of 2.5
meters from the edge of the pipeline is maintained along the route.
●
Water
– The district heating networks represent closed systems where water is circulated from the main heat
exchanger at the heat generation source to the heat exchange station in the proximity of the end consumers and
subsequently returned to the heat generation source for re-heating. Water in the network is regularly resupplied
to compensate for water lost through evaporation. However, no water is discharged to the water bodies.
●
Pollution prevention
already for manufacturers of this technology, from whom EPIF entities source the equipment.
●
Biodiversity
areas.
As a result of the assessment above, the full third-party revenues, Opex and Capex related to operation and
maintenance of district heating networks were classified as taxonomy-aligned. Where the entities operating heating
networks also own and operate the adjacent heating plants, the financials of these entities were split into the generation
business and heat distribution business mainly based on internal cost centers.
Cogeneration of heat/cool and power from bioenergy (4.20.)
EPIF combusts biomass in some of its heating plants which operate in cogeneration mode. Biomass is combusted in
dedicated biomass units as well as co-combusted with lignite. The EU Taxonomy considers only heat and power
generation exclusively from biomass as taxonomy-eligible, specifically “
Construction and operation of installations
used for cogeneration of heat/cool and power exclusively from biomass, biogas or bioliquids, and excluding
Annual Financial Report for the year 2025 – Section X.
Consolidated Sustainability Statement
114
cogeneration from blending of renewable fuels with biogas or bioliquids
”. Therefore, we have classified only a
dedicated biomass cogeneration unit operated by Plzeňská teplárenská, a.s. („PLTEP“) as taxonomy-eligible.
Operation of the biomass unit was further considered for taxonomy alignment as it meets the substantial contribution
criteria in Annex I related to the source of biomass and the transport distance:
●
Biomass combusted by PLTEP is sourced locally within the Czech Republic, predominantly from the Plzeň
Region. Owing to the limited transport distance (< 500km), the saving of greenhouse gases compared to a fossil
fuel alternative exceeds the threshold required by the Taxonomy Regulation of 80% (based on the typical values
of greenhouse gas savings as indicated in
Annex VI to Directive (EU) 2018/2001).
potential supplier of biomass, PLTEP strongly prefers railway transport over road transport where feasible.
●
Taxonomy regulation allows forest and agricultural biomass to be considered as taxonomy-aligned provided that
some conditions are fulfilled such as legality of harvesting, forest regeneration of harvested areas and other criteria
ensuring sustainability of biomass production. This is ensured through certification which is required by PLTEP
from each supplier including declaration that the biomass complies with the regulation specifying criteria on
sustainability and greenhouse gas savings. The suppliers are also obliged to provide evidence that they are entitled
to harvest wood from the land based on direct ownership or the agreement with the landowner.
The cogeneration of heat and power from biomass by PLTEP has been assessed in respect of the following DNSH
criteria:
●
Climate change adaptation
of the biomass unit is mainly related to general increase in temperatures in the long term which might negatively
affect the production efficiency. This risk is not anticipated to materially affect biomass unit operations.
●
Water
river and discharge it back. The amount of water discharged from our plants is not materially different from the
amount of water withdrawn, i.e. vast majority of water is returned back to the source. The cooling flow-based
systems in the cogeneration heating plants represent closed systems, whereby the water discharged is of the same
or better quality and similar temperature, at which it was withdrawn from the source.
●
Pollution prevention
available techniques (BAT) conclusions, under
Directive 2010/75/EU
Council, for large combustion plants.
●
Biodiversity
As a result of the assessment above, the full revenues, Opex and Capex related to operation and maintenance of the
biomass unit were classified as aligned. The financials of the biomass unit were derived based on internal cost centres
used by PLTEP.
Production of heat/cool from geothermal energy (4.22.)
In 2025, EPIF’s subsidiary SPP Infrastructure commenced drilling of several geothermal wells near the city of Košice
in Slovakia to provide heat for the district heating network in Košice. The construction and operation of geothermal
wells falls under the category of taxonomy-eligible activities, specifically described as “
Construction or operation of
facilities that produce heat/cool from geothermal energy
”. The associated Capex is therefore treated as taxonomy-
eligible. The activity was not further considered for taxonomy alignment as its life-cycle GHG footprint was not
verified by an independent third party as required by the substantial contribution criteria.
Annual Financial Report for the year 2025 – Section X.
Consolidated Sustainability Statement
115
High-efficiency co-generation of heat/cool and power from fossil gaseous fuels (4.30.)
EPIF operates cogeneration heating plants in the Czech Republic, supplying heat to adjacent district heating networks,
while contributing to power grid stability by providing dispatchable power capacity. Following the disposal of two
heating plants operated by EOP and UE in March 2025, this activity is limited to the city of Pilsen, where lignite units
are used along with biomass boilers and a waste-to-energy plant. EPIF aims to replace the remaining lignite units with
cogeneration CCGT technology which is ideally positioned not only to cover the needed heat demand but also as
highly flexible power generation sources which shall complement and support the increased share of intermittent
renewable generation sources.
EPIF is in advanced stage of development of these technologies. In the financial year 2025, EPIF commenced
development of its CCGT units at EOP and UE (the associated Capex only includes period January-March 2025 when
these entities were still owned by EPIF). The technologies are expected to be gradually commissioned in 2027-2028.
While material Capex was incurred in 2025, no revenues and Opex have been therefore reported yet.
The construction and operation of CCGT cogeneration units falls under the category of taxonomy-eligible activities,
specifically described as “
Construction, refurbishment, and operation of combined heat/cool and power generation
facilities using fossil gaseous fuels
.” The activity was therefore further assessed for taxonomy alignment based on the
following substantial contribution criteria which apply to facilities for which the construction permit is granted by 31
December 2030:
(i)
The activity achieves primary energy savings of at least 10% compared with the references to separate
production of heat and electricity; the primary energy savings are calculated on the basis of formula provided
in Directive 2012/27/EU.
Based on the expected cogeneration efficiency of the heating plants in the range of 85-90% and assumed split
of 50:50 between heat and power, the cogeneration plants create primary energy savings of ca 21-25%
compared to separate heat and power production, using harmonized efficiency reference values for separate
production of electricity and heat as per Regulation (EU) 2015/2402. The calculation was based on the
formula provided in the
Directive 2012/27/EU
(
https://eur-lex.europa.eu/legal-
content/EN/TXT/?uri=CELEX%3A32012L0027
).
(ii)
Direct GHG emissions of the activity are lower than 270 g CO
2
e/kWh of the output energy.
EPIF cogeneration plants are planned to achieve an overall efficiency (i.e. including cogeneration and
condensation generation) of at least 75%, resulting in the emission intensity of ca 264 g CO
2
e/kWh. This
assumes sole combustion of natural gas. As the turbines shall be ready for partial hydrogen combustion (share
of ca 15% is indicated in the initial stage) with envisaged gradual increase, the emission intensity is expected
to be further reduced upon adoption of green gas blends.
(iii)
The power and/or heat/cool to be replaced cannot be generated from renewable energy sources, based on a
comparative assessment with the most cost-effective and technically feasible renewable alternative for the
same capacity identified; the result of this comparative assessment is published and is subject to a stakeholder
consultation.
1) Power production: the CCGT units represent highly flexible generation sources ideally positioned to
support the ramp up of intermittent renewable generation sources. The Czech power generation is still
significantly dependent on coal (37% share in 2024). According to the Resource Adequacy assessment of the
power grid of the Czech Republic until 2040 prepared by ČEPS
, role of gas in power generation will grow
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in all considered scenarios. Accelerated phase out of lignite further necessitates adequate capacities of flexible
gas-fired plants.
2) Heat production: EPIF has performed an internal assessment of three potential viable renewable
alternatives to generate the heat needed for the residential and commercial customers currently supplied by
EPIF. The alternative solutions considered are (i) retrofitting existing lignite boilers to enable sole biomass
combustion, (ii) heat pumps powered by renewable energy sources and (iii) geothermal energy.
Biomass boilers
While biomass is a suitable complementary fuel which can be sustainably locally sourced at limited volumes,
EPIF is of the view that using biomass on a mass scale would be detrimental to the EU decarbonization goals
and not aligned with the sustainability criteria. Reliance on biomass at the required scale to replace all lignite
and provide sufficient heat volumes would dramatically increase usage of biomass, where its availability
would be uncertain, and its sustainability characteristics would likely be compromised. EPIF is currently able
to source sufficient biomass volumes from local sources with limited transport distance. The biomass is
certified and aligned with EU Taxonomy criteria. We consider as not feasible to substantially increase
biomass usage, while maintaining these standards.
Heat pumps
Heat pumps are generally considered as a viable solution to decarbonize heating. However, their large-scale
deployment depends on three key factors: (i) a sufficient supply of renewable or low-carbon electricity in the
grid, aligned with the seasonal variations in heating demand, (ii) reinforcement of transmission network
capacity to accommodate fluctuations caused by heating needs, and (iii) an accelerated rollout of heat pumps.
EPIF entities provide heat to major regional cities, including densely populated apartment blocks where the
demand for reserved capacity could exceed the current grid limits. Renewable electricity is expected to come
primarily from solar panels, which have limited output during the heating season. Additionally, many older
apartment buildings and houses have radiator systems designed for higher water temperatures that heat pumps
cannot efficiently supply. Regarding the accelerated deployment of heat pumps, even the most progressive
scenarios in the Resource Adequacy assessment of the Czech Republic’s power grid, prepared by ČEPS
,
project a gradual increase in heat pump adoption. By 2040, penetration is expected to reach approximately
1.5 million units, covering about 30% of the country’s current households.
Geothermal energy
Utilization of geothermal energy in the Czech Republic is limited, there are only a handful of existing projects.
Geothermal might be a suitable complement and EPIF is in the process to explore potential of geothermal
energy in its areas of operation. However, geothermal energy is not likely to serve as the flexible source
reflecting major seasonal fluctuations in heat offtake. The capacities of the geothermal source need to be
designed to cover the peak heat demand during winter which might not be utilized during summer. The
solution might not be therefore cost-effective if not complemented by other flexible heat sources.
Conclusion
While heat pumps and geothermal energy represent zero carbon alternatives in the long term when it is
conceivable to deploy these technologies on a large scale, a rapid reduction in emissions which is vitally
needed in the short term, will be more reliably achieved through replacement of the lignite plants with highly
efficient CCGT units. The crucial aspect is the envisaged adaptation of the CCGT units for renewable gases,
making these assets fully compatible with net zero energy system and preventing the emissions from natural
gas from being locked in. In addition, these dispatchable sources do not only supply heat but are also vital
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contributors to grid stability, enabling the ramp up of renewable generation sources and accelerated coal
phase-out. We therefore consider the CCGT units best positioned to contribute to the energy transition.
As part of the EU Taxonomy disclosure, EPIF would like to encourage stakeholders to provide feedback on
the EPIF position. EPIF already engages in regular open discussions with banks, investors, local communities,
or non-governmental organizations, offering explanations for its strategic choices.
(iv)
The activity replaces an existing high emitting combined heat/cool and power generation activity, a separate
heat/cool generation activity, or a separate power generation activity that uses solid or liquid fossil fuels.
CCGT technologies at all sites operated by EPIF represent a replacement of existing technologies reliant on
lignite. The emission intensity of the CCGT units is substantially lower than for the lignite-based
technologies.
(v)
The newly installed production capacity does not exceed the capacity of the replaced facility
.
The installed thermal capacity of the CCGT units is below the capacity of the replaced units at all plants.
(vi)
The facility is designed and constructed to use renewable and/or low-carbon gaseous fuels and the switch to
full use of renewable and/or low-carbon gaseous fuels takes place by 31 December 2035, with a commitment
and verifiable plan approved by the management body of the undertaking
.
The gas turbines at all facilities shall be ready for partial hydrogen combustion from the outset with 15%
currently guaranteed by suppliers of the technology with optionality to increase the share up to 100% once
such technology is commercially deployed by the turbine manufacturers. This shall enable EPIF combust
either sole hydrogen or a combination of hydrogen and biomethane. The pace of increasing the share of
renewable gases in the mixture will largely depend on commercial availability of hydrogen or biomethane.
EPIF is committed to using solely renewable gases in the gas turbines in the cogeneration heating plants for
heat and power generation by 2035, in line with the EU Taxonomy criteria, subject to sufficient commercial
availability of these gases (hydrogen, biomethane, synthetic methane) and adequate infrastructure in place
for their distribution. As EPIF’s influence on the development of the market with renewable gases is
peripheral, EPIF’s commitment needs to be perceived as a commitment to technical readiness to combust
renewable gases.
(vii)
The replacement leads to a reduction in emissions of at least 55% GHG per kWh of output energy
.
The emission intensity of existing lignite units is in the range of 600-900 g/kWh, depending on share of
cogeneration and condensation production. The new CCGT units are planned to have emission intensity
below the threshold of 270 gCO
2
/kWh, achieving emission reduction of at least 55%.
(viii)
The refurbishment of the facility does not increase production capacity of the facility
.
The thermal installed capacity of the CCGT units is below the capacity of the replaced units at all plants,
reducing the thermal energy generation potential.
(ix)
Where the activity takes place on the territory of a Member State in which coal is used for energy generation,
that Member State has committed to phase-out the use of energy generation from coal and has reported this
in its integrated national energy and climate plan referred to in Article 3 of Regulation (EU) 2018/1999 or
in another instrument
.
The Czech government has communicated its intention to phase out coal in energy generation by 2033 in the
National Energy and Climate Plan (NECP) approved in December 2024.
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The EU Taxonomy criteria also require verification from an independent third party, specifically to certify the
level of direct GHG emissions referred to in point (ii) above and credibility of the trajectory to renewable gases
as referred to in point (vi) above. EPIF intends to seek such verification to present the Capex related to
development of these CCGT heating plants as aligned. As such verification is currently not in place, the Capex is
presented only as eligible. However, EPIF performed full assessment of all technical screening criteria including
all DNSH criteria further below and, except the one requirement mentioned above, EPIF considers the activity as
aligned.
The activity also needs to meet the following additional criteria related to methane leakage:
(a) at construction, measurement equipment for monitoring of physical emissions, including those from methane
leakage, is installed or a leak detection and repair program is introduced;
(b) at operation, physical measurement of emissions is reported and any leak is eliminated
EPIF aims to implement all measures to prevent gas leaks, including a leak detection and repair program across
all sites.
Capex associated with construction of gas-fired heating plants was further assessed against the following DNSH
criteria below:
●
Climate change adaptation
potential scarcity of cooling water. Periods of droughts might completely cut off the plants from a vitally needed
medium. EPIF monitors these risks centrally as part of its formal physical risk assessment as well as regularly
updated water stress analysis to monitor which locations are most vulnerable to water shortages. The existing
lignite heating plants have been able to operate despite occasional water shortages in the adjacent water bodies.
Resilience to potential drought will further increase after transitioning to CCGT units, where the gas turbines and
its electric generators are air-cooled and do not require water. However, the existing steam turbines will still
require cooling water.
●
Water
river and discharge it back. The amount of water discharged from our plants is not materially different from
amount of water withdrawn, i.e. vast majority of water is returned to the source. The cooling flow-based systems
in the cogeneration heating plants represent closed systems, whereby the water discharged is of the same or better
quality and similar temperature, at which it was withdrawn from the source.
●
Pollution prevention
techniques (BAT) conclusions.
●
Biodiversity
Non-eligible activities
Activities not eligible under the EU Taxonomy of EPIF are mainly represented by the categories below:
●
Cogeneration of heat and power from lignite or municipal waste.
●
Gas storage - this activity will be continuously evaluated in the future to determine its potential taxonomy
eligibility or full alignment. Further research and trials need to be carried out to have improved visibility on the
steps needed to convert existing gas storage facilities to accommodate hydrogen.
●
Supply and trading of power and gas – supply and trading activity is not addressed by the Taxonomy Regulation.
This activity is considered neutral from a sustainability perspective. As the supply and trading business reports
Annual Financial Report for the year 2025 – Section X.
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relatively high turnover from resale of power and gas, the percentage share of the taxonomy-eligible activities for
the entire Group is significantly affected by this segment which is relatively minor in terms of operating profit
contribution.
Calculation methodology
The KPIs to assess eligibility and alignment have been calculated as a portion of Turnover, Opex and Capex associated
with the taxonomy-eligible and taxonomy-aligned activities listed above (numerator) divided by the Turnover, Opex
and Capex for the EPIF Group (denominator).
In the determination of turnover, Opex and Capex according to the Taxonomy Regulation, the same accounting and
valuation methods have been applied as in the notes to
EPIF Group Consolidated Financial Statements as of and for
the year ended 2025
; see Note 7 − Revenues, Note 15 − Property, plant and equipment and Note 16 − Intangible
assets and goodwill.
Turnover, Opex and Capex were sourced from the same sets of financial data used for the preparation of the EPIF
Group’s consolidated financial statements in accordance with IFRS. Underlying data included consolidated financial
data after intercompany eliminations as well as stand-alone financial data of individual companies before
intercompany eliminations. The stand-alone financial data before intercompany eliminations were used in instances
where revenues from a taxonomy-aligned activity are realized via another subsidiary with non-aligned activities. This
included (i) delivery of power produced by an aligned entity to the energy exchange through a non-aligned trading
entity which only serves as an intermediary and (ii) revenues from electricity distribution which are realized through
a non-aligned Group entity which operates as a supplier of electricity and the distribution tariffs are ultimately charged
by this supplier. As one of these entities was always treated as taxonomy-non-aligned, there was no risk of double
counting. In cases where turnover was generated through intra-group arrangements involving multiple legal entities,
turnover was attributed only once, at the level of the entity performing the taxonomy-eligible or taxonomy-aligned
activity. Trading, supply or intermediary entities were treated as taxonomy-non-aligned to prevent double counting
of the same revenue stream within the Group.
Turnover
Numerator: Total revenues that were assigned to taxonomy-eligible or taxonomy-aligned activities listed above.
Taxonomy-aligned revenues
(55%) and sales of heat via district heating networks to end customers (39%).
Denominator:
Revenues
the EPIF Group
Consolidated Financial Statements as of and for the year ended 31 December 2025
. Total revenues of EPIF Group
mainly comprise revenues from sales of power and heat produced by heating plants and the adjacent heat distribution
networks, fees for booked capacities in the gas transit network and the gas storage facilities, fees for distribution of
electricity and gas, revenues from supply and trading of power and gas.
Operating expenses (OpEx)
Numerator: Total OpEx that was assigned to taxonomy-eligible or taxonomy-aligned activities listed above.
Taxonomy-aligned OpEx
of Taxonomy-aligned OpEx) and maintenance of district heating networks (11%).
Denominator: in line with the EU Taxonomy definition of Opex, EPIF calculated Opex as a sum of the following
items from the Consolidated statement of comprehensive income in the
EPIF Group Consolidated Financial
Statements as of and for the year ended 31 December 2025
:
●
Repairs and maintenance –
sourced from the
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●
Rent expenses –
sourced from the
●
Personnel costs related to day-to-day servicing of the operating assets –
these costs were identified by
individual subsidiaries using their internal cost centers
Other Opex categories were assessed as not material, specifically non-capitalized costs related to research and
development, and building renovation measures.
Total Opex incurred by EPIF is mainly related to maintenance and repair of own infrastructure comprising
cogeneration heating plants, gas transmission and distribution networks, gas storage facilities, a power distribution
network and district heating assets. This maintenance and repair are performed internally by own employees as well
externally outsourced.
Capital expenditure (Capex)
Numerator: Total Capex that was associated with taxonomy-eligible or taxonomy-aligned activities listed above. EPIF
did not use Capex plan to demonstrate taxonomy alignment of Capex which is intended to transition taxonomy-
eligible activities to become taxonomy-aligned.
Taxonomy-aligned Capex
capitalized maintenance of the electricity distribution network (57%), replacement of steel pipes in the gas distribution
network by hydrogen-compatible polyethylene pipes (34%), and development or capitalized maintenance of district
heating networks (8%).
Denominator: In line with the EU Taxonomy definition, Capex represents additions to Property, Plant, and
Equipment, Intangible Assets (excluding goodwill, emission allowances and green certificates), and Leases
recognized as right-of-use assets according to IFRS 16. Capex includes also additions resulting from business
combinations. As opposed to prior years, Capex also includes advanced payments for Property, Plant, and Equipment
and Intangible Assets. Total Capex incurred by EPIF is mainly related to reconstruction and development of own
infrastructure comprising cogeneration heating plants, gas transmission and distribution networks, gas storage
facilities, a power distribution network, and district heating assets.
Results of the Taxonomy assessment for 2025
The results of the Taxonomy assessment for the financial year 2025 are presented in the following tables:
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Turnover 2025 – taxonomy alignment
Legend:
CCM - Climate change mitigation
Y – Yes (taxonomy-eligible and taxonomy-aligned activity with the relevant environmental objective)
N – No (taxonomy-eligible but not taxonomy-aligned activity with the relevant environmental objective)
N/EL – Not eligible (taxonomy-non-eligible activity for the relevant environmental objective)
EL – Eligible (taxonomy-eligible activity for the relevant environmental objective)
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Opex 2025 – taxonomy alignment
Legend:
CCM - Climate change mitigation
Y – Yes (taxonomy-eligible and taxonomy-aligned activity with the relevant environmental objective)
N – No (taxonomy-eligible but not taxonomy-aligned activity with the relevant environmental objective)
N/EL – Not eligible (taxonomy-non-eligible activity for the relevant environmental objective)
EL – Eligible (taxonomy-eligible activity for the relevant environmental objective)
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Capex 2025 – taxonomy alignment
Legend:
CCM - Climate change mitigation
Y – Yes (taxonomy-eligible and taxonomy-aligned activity with the relevant environmental objective)
N – No (taxonomy-eligible but not taxonomy-aligned activity with the relevant environmental objective)
N/EL – Not eligible (taxonomy-non-eligible activity for the relevant environmental objective)
EL – Eligible (taxonomy-eligible activity for the relevant environmental objective)
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Disclosure According to Annex 12 of Regulation 2021/2178
The EU Taxonomy imposes an additional obligation to report on newly classified eligible activities – nuclear and
natural gas energy. To meet this obligation, EPIF is presenting an overview and quantification of revenues, Opex and
Capex from activities related to nuclear energy and fossil gas. In 2025, EPIF reported Revenues, Opex, or Capex
related to activity 4.30 (High-efficiency co-generation of heat/cool and power from fossil gaseous fuels).
Annual Financial Report for the year 2025 – Section X.
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Turnover of taxonomy-aligned activities (denominator)
Capex of taxonomy-aligned activities (denominator)
Annual Financial Report for the year 2025 – Section X.
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Opex of taxonomy-aligned activities (denominator)
Turnover of taxonomy-aligned activities (numerator)
Annual Financial Report for the year 2025 – Section X.
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Capex of taxonomy-aligned activities (numerator)
Opex of taxonomy-aligned activities (numerator)
Annual Financial Report for the year 2025 – Section X.
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Turnover of taxonomy-eligible but not taxonomy-aligned activities
Capex of taxonomy-eligible but not taxonomy-aligned activities
Annual Financial Report for the year 2025 – Section X.
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Opex of taxonomy-eligible but not taxonomy-aligned activities
Turnover of taxonomy non-eligible activities
Annual Financial Report for the year 2025 – Section X.
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Capex of taxonomy non-eligible activities
Opex of taxonomy non-eligible activities
Annual Financial Report for the year 2025 – Section X.
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131
Commentary on the results of the Taxonomy assessment
The share of eligible Turnover on the total Turnover reported for 2025 was 18%, while the share of aligned
Turnover was 17%. The Turnover metric is significantly affected by the supply business with a high
turnover from the resale of power and gas which is relatively minor in terms of operating profit contribution.
These shares were very similar to shares calculated for 2024, as there have been no major changes in the
Taxonomy eligible and aligned business activities in 2025.
The share of eligible Capex on the total Capex reported for 2025 was 66%, while the share of aligned Capex
was 53%. The aligned Capex is mainly invested into the power distribution network and hydrogen-
compatible sections of the gas distribution network. Compared to 2024, the share of aligned Capex
decreased (53% in 2025 compared to 59% in 2024) which was partly driven by sizeable investment into
waste-to-energy plant development (the entity developing the plant was divested in March 2025) which is
a non-eligible activity.
The share of eligible Opex on the total Opex reported for 2025 was 32%, while the share of aligned Opex
was 31%. The lower share of alignment compared to Capex reflects the non-eligibility of gas distribution
where only Capex aimed at retrofitting the network is treated as eligible. The share of eligible and aligned
Opex remained broadly comparable between 2024 and 2025 due to the stable nature of Opex of aligned
activities, primarily maintenance of the electricity distribution network.
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4 ESRS E2 – Pollution
EPIF recognizes that, in addition to the effects of our GHG emissions, there are other air pollutants that can
harm air quality and contribute to environmental pollution. We closely monitor the air pollutants related to
our operations and are dedicated to reducing these emissions. Our management approach emphasizes
continual improvement, modernization, and optimization of our business processes.
E2.IRO-1 Identifying Pollution-related IROs
To support the identification of IROs specific to pollution, EPIF also conducted a screening of our full value
chain to identify impact areas. Internal stakeholder engagement sessions were also held to ensure that key
operational areas were thoroughly evaluated. Engagement conducted as part of the DMA can be found in
the
not conducted with potentially affected communities.
For the identification of actual and potential pollution-related IROs, EPIF conducted a structured screening
across relevant plants and entities. The assessment was informed by asset-level emission inventories,
historical performance records, and mandatory reporting under the
Industrial Emissions Directive
applicable national legislation. The screening applied the assumption that activities involving combustion
processes or gas compression inherently possess pollution-generation potential. All locations of operations
where pollution represents a material matter were reviewed in relation to local air-quality conditions, noting
that EPIF does not operate in jurisdictions characterized by significant or persistent air-pollution challenges.
These locations primarily include heating plants and compressor stations in the gas transit and storage
segments where fuels releasing air emissions are combusted. No specialized modelling tools were used; the
assessment was based on regulatory compliance information, routine environmental risk evaluations and
expert judgement provided by environmental and operational specialists. EPIF identified the following
material IRO through this process: emissions from EPIF’s core activities, such as energy production in
heating plants or combustion of natural gas in compressors used in the gas midstream infrastructure
contribute to air quality deterioration by releasing pollutants like sulfur dioxide (SO
2
), nitrogen oxides
(NOx), mercury, carbon monoxide (CO), particulate matter, or methane. These emissions can cause long-
term and irreversible harm to human health and ecosystems.
E2-1 – Pollution-related policies
EPIF has established the
Environmental Policy
outlines our commitment to reducing the negative impacts of our product portfolio and to promoting
renewable and clean energy, as well as to complying with local environmental regulations. EPIF's
operational activities are driven by this policy and by our responsibility to adhere to national legislation and
local operational regulations, which provide us with further guidance.
We are ensuring that the policies are implemented in a way to address the specific pollution related IROs
identified within the DMA process; for full information about this, refer to
The impacts and implementation of mitigation measures
related to air pollution are monitored by the HSE Committee. On an operational level, these pollutants are
addressed through the implementation of environmental management practices and controls across our
facilities. Our primary goal is proactively managing pollution-related impacts across all our group entities,
enhancing environmental quality and protecting community well-being. This includes identifying,
assessing, managing, and remediating pollution impacts throughout our operations and supply chain. This
also includes working to ensure that OpCos for whom hazardous substances are a relevant issue, look to
minimize these substances. Additionally, more specific policies at the level of OpCos are designed to
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133
Table 45 EPIF's management of major air emissions
prevent pollution-related incidents and, in the event of any such incidents, to control and minimize their
impact on both people and the environment.
E2-2 – Pollution-related actions
EPIF’s pollution-related actions are currently focused on our own operations and do not extend to the
upstream or downstream value chain. Therefore, we have implemented the following management
approaches to address pollution-related situations within our direct activities to reflect EPIF’s commitment
to managing and mitigating pollution-related impacts and risks across its entire value chain, enhancing
environmental quality and safeguarding the communities in which we operate.
These actions are closely linked to our climate-related actions (covered under
, as the main sources of air pollution arise from the same combustion processes that generate GHG
emissions. Consequently, measures implemented to reduce greenhouse gas emissions - such as fuel
switching, efficiency improvements, and the gradual phase-out of coal - also contribute significantly to the
reduction of other air pollutants.
As pollution-reduction initiatives largely overlap with GHG-emission reduction measures, no significant
additional resources are allocated exclusively to pollution mitigation. Investments in decarbonization Capex
inherently support reductions in other pollutants.
All EPIF facilities releasing air emissions are located in EU member states, ensuring that they operate in
compliance with the Best Available Techniques (BAT) as outlined in the BAT Reference Documents
(BREF) for Large Combustion Plants. These facilities are obliged to meet the emission limits specified by
the
Industrial Emissions Directive (IED).
A limited number of installations within the EPIF Group operate under temporary exemptions from the IED
limits. These exemptions are granted in cases where compliance would require disproportionate
investments, particularly when the plants are close to decommissioning or replacement in the near future.
At present, these temporary exemptions primarily apply to district heating plants in the Czech Republic
(where Elektrárny Opatovice and United Energy were divested at the end of March 2025
, which are in
the advanced stages of decommissioning lignite units and transitioning to alternative technologies.
Latest significant actions to address air pollution were performed already in the years 2019 and 2020 when
the heating plants operated currently by EPIF underwent major investments in desulphurisation and
denitrification technology to ensure compliance of the lignite units with the emission limits.
Our climate mitigation policies, actions and targets as reported above also form part of the framework for
mitigating our air pollution-related impacts.
Emission | EPIF’s Management Approach |
SO 2 | The combustion of sulfurous coal is the primary source of our SO 2 emissions. EPIF addresses its SO 2 emissions through flue gas desulfurization technologies with high removal efficiency exceeding 95% of SO 2 emissions. Significant reduction in these emissions is also achieved through a gradual coal phase out. Other fuels such as biomass or natural gas produce marginal amounts of SO 2 |
81
Heat Infra segment will mainly focus on delivering heat to its customers, procured from the transferred assets based on long-term heat delivery
contracts.
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NO x | Nitrogen oxides (NOₓ) are primarily generated during the combustion process, as nitrogen in the air reacts with oxygen at high temperatures. EPIF addresses these emissions by optimizing combustion processes and employing advanced denitrification technologies with high removal efficiency. Since NOₓ emissions are a direct result of the combustion process, they are also present in gas combined heat and power plants. However, they are more challenging to reduce compared to SO₂ or particulate matter due to their intrinsic link to combustion dynamics. |
Dust | Dust particles are primarily emitted through our lignite-fired and biomass-fired heating plants. EPIF manages these emissions through highly sophisticated filters. Similarly to SO 2 , significant reduction in dust will be naturally achieved via the planned coal exit. |
Management of air emissions is further strengthened through the implementation of an ISO 14001-certified
Environmental Management System (EMS), which is operational across the majority of EPIF entities
(covering 94% of EBITDA generated in 2025). The ISO-certified EMS plays a key role in air pollution
management by identifying relevant environmental impacts, implementing effective operational controls,
and conducting regular monitoring and measurement. Additionally, it provides enhanced assurance of
compliance with regulatory requirements.
E2-3 – Pollution-related targets
EPIF actively monitors air pollutants associated with our operations and is committed to decreasing these
emissions. Our management approach focuses on the continuous improvement, modernization and
optimization of our business processes. EPIF has not previously established any targets related to the
identified IROs related to air pollution. We will continue to monitor the risks associated with air pollution.
If it becomes necessary to set a target for monitoring potential future actions, this will be communicated in
upcoming reporting cycles. Following the divestment of two heating plants in March 2025, the exposure to
air pollution, especially to SO
2
EPIF acknowledges the negative impact of methane leakage from our gas midstream and downstream
infrastructure, however, we understand that the contributions that methane makes as a GHG are of greater
importance than as potential pollution incidents. Therefore, addressing methods to reduce our overall GHG
footprint, targets and reduction strategies related to methane can be found in more detail under
ESRS E1 -
Climate Change.
E2-4 – Pollution of air
Air pollution emissions are continuously monitored using Continuous Emission Monitoring Systems
(CEMS), which directly measure emission concentrations in flue gases from the generation process. These
emissions are reported to national authorities and are typically included in publicly accessible registers. The
European Environment Agency (EEA) aggregates this data at the EU level and publishes it on a public
portal, ensuring transparency for external stakeholders.
For EPIF reporting purposes, data is collected from all entities operating large industrial facilities or other
equipment with a significant environmental footprint. The aggregated data is then reported at the country
level for the EPIF Group.
tonnes | SO 2 | NOx | Dust | CO |
Czech Republic | 815 | 1,092 | 22 | 394 |
Slovakia | 9 | 38 | 2 | 9 |
Total | 824 | 1,130 | 24 | 403 |
Table 46 Emissions to air by country – 2025
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Overall, EPIF has reported a continuous decrease across all types of air emissions. This was driven by
overall reduction in power generation by the CHPs due to less favorable power spreads on the market. As
a result, the production was limited to a must-run generation driven by the heat offtake needs. In addition,
EPIF CHPs increased the volume of biomass consumed, partly replacing lignite. In 2025 and going forward,
the reduction was also driven by divestment of certain lignite heating plants in the Czech Republic.
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5 ESRS E3 - Water resources
EPIF understands the crucial role that access to clean water plays in our environment and society, be it on
the global or local scale. Therefore, we have recognized that protecting aquatic habitats and other
ecosystems is significant throughout our operations. For EPIF, water is extremely important to its energy
production, and heat distribution activities.
E3.IRO-1 Identifying Water-related IROs
In addition to the DMA process described in
, EPIF continued to conduct a detailed screening of its assets and activities to identify actual
and potential IROs related to water resources across our operations, upstream and downstream value chain.
With a consistent method for 2025, the Group re-ran its water risk screening using the same tools and
methodology (WRI Aqueduct Water Risk Atlas, WWF Water Risk Filter, ENCORE). The updated results
did not materially change the outcomes compared to 2024. Therefore, no adjustments to our water-related
IROs were made this year. We will continue to update this assessment annually to capture any changes in
exposure.
Currently, there are no consultations conducted with affected communities regarding water-related impacts,
although broader stakeholder engagement, which fed into this process, can be found under the
process:
Water withdrawals:
production. In case of water stress, cogeneration heating plants can be affected by unplanned outages.
Alternative cooling technologies and other preventive measures can trigger incremental financial costs to
EPIF. The associated risks also include regulatory actions due to excessive withdrawals impacting
operational continuity.
Water discharges:
water temperature limits given by regulation are exceeded, the thermal pollution from combined heat and
power plants has the potential to disrupt aquatic ecosystems.
E3-1 – Water-related policies
EPIF recognizes water as one of the planet’s most precious resources and has therefore enshrined a
commitment to addressing its water-related impacts within its
EPIF Environmental Policy
. The policy
currently addresses responsible water management by reducing water use, improving water efficiency, and
reducing effluent load in water discharges.
We are ensuring that our policy is implemented in a way to address the specific IROs identified within the
DMA process; for full information about this, refer to
. In the implementation process, we are specifically prioritizing continuous gathering
of high-quality data to understand the impacts, assessment of exposure to water stress, responsible water
management, water treatment requirements, and procedures to actively address the prevention and
abatement of water pollution, at OpCo sites where this has been identified as a material issue. Currently,
our Group policy is intended to provide a broad overview and direction for all OpCos across all regions.
Specific requirements for the individual OpCos are then addressed at the at the level of EPIF HSE
committee which provides directions for OpCo sites which operate in areas at water risk to consider
pursuing alternative cooling solutions to reduce dependency on cooling water from adjacent water bodies.
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E3-2 – Water-related actions
Ultimately, ensuring the best water management practices is a top priority for all EPIF’s operations. Our
aim is to optimize our water consumption throughout our business, as we recognize that climate change
will continue to pose a serious threat to water scarcity. Beyond this, we also continuously monitor our
water-related impacts to guide us in setting the most accurate and appropriate plans.
Resources allocated to reduce water withdrawals partly overlap with the Capex plan presented under
The Czech district heating plants operated by EPIF possess flexibility regarding their cooling processes.
The reliance on flow-based cooling using water withdrawn from adjacent water bodies has been reduced
due to their capability to rely on circular cooling through cooling towers. Offtake is only required to
compensate for the loss of water through evaporation within the circular cooling system and is therefore
limited. The key measure to reduce offtake of surface water is further utilization of discarded concentrated
water from the circular system, as a cooling medium in other technological processes, rather than direct
disposal. Concentrated water that is disposed of is cleaned and discharged back into the river, where there
is constant control and appropriate parameterization of the processes associated with the treatment and use
of water. Following the divestment of Elektrárny Opatovice and United Energy in March 2025, the Group’s
overall exposure to water-intensive power generation significantly decreased, as these assets previously
represented the most material water users within the portfolio.
Monitoring water risks and impacts
The information from the stakeholder engagement and supporting external sources has helped us identify
material risks to our business and expand our understanding of the broader impacts of EPIF’s activities on
water resources. We did not find any of the identified impacts EPIF’s operations have as they relate to water
to be material, but we remain committed to monitoring our impacts to ensure this does not change, and that
we remain in a position to have full oversight of impacts as they materialize.
In 2021, we began analyzing and assessing the water-related risks of our operations, where areas with high
risk were identified through the Water Exploitation Index Plus (WEI+) for river basin districts. According
to the European Environment Agency (EEA), the WEI+ aims to illustrate the threat posed to freshwater
sources of a defined territory (country, river basin, sub-basin etc.) during a specified period (e.g. seasonal,
annual), as a result of water use for supporting human-related activities. In 2022, due to a lack of available
data, we made the decision to switch to WRI’s Aqueduct Water Risk Atlas, where detailed data for the
required period were available. From 2023 on, we started to use Water risk filter tool to gain further insights
into a range of potential risks and impacts, as well as pinpoint our operations, which are at the highest risk
of water stress.
For this year's reporting, we continued to use the WRI Aqueduct Water Risk Atlas, WWF Water risk filter
tool. No new material water-related impacts were identified. We therefore consider the risk profile to be
unchanged compared to 2024.
To complement our overall water management strategy for water stress areas, we will continue to use
external sources to monitor water-related risk operations. To enhance these efforts, we plan to integrate our
climate risk assessment into our water risk assessment framework in future reporting cycles.
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Table 47 Water metrics - 2025
Water management
EPIF aims to ensure that we provide verifiable compliance with the statutory threshold values, as this
ensures that we not only adhere to the local standards in which we operate, but that we also avoid any
potential for negative effects on surrounding communities and natural habitats.
EPIF incorporates mitigation measures to address risks associated with general water stress and extreme
droughts when developing new projects or upgrading existing assets in water-stressed areas. These
measures include exploring alternative cooling technologies such as air-based cooling, closed-circuit
cooling systems utilizing cooling towers, and modifications to water intake systems to maintain sufficient
withdrawals even during periods of lower water levels.
The risk of thermal pollution is managed through regulatory requirements that mandate heating plants to
ensure that discharged water does not exceed specified temperature limits. Additionally, the implementation
of the cooling technologies helps reduce thermal impact on water bodies by dissipating a portion of the heat
into the air.
E3-3 – Water-related targets
EPIF has not previously established any targets related to the identified IROs related to water. We will
continue to monitor the risks associated with water resources. If it becomes necessary to set a target for
monitoring potential future actions, this will be communicated in upcoming reporting cycles. Water
withdrawals are closely linked to power and heat production, as water is primarily used for cooling.
Following the divestment of two heating plants in March 2025, the exposure to water withdrawals was
significantly reduced.
E3-4 – Water consumption
The majority of EPIF’s water withdrawals comes from surface water, with only minimal amounts sourced
from groundwater and municipal supplies. Water is primarily used in the cooling process during power and
heat generation. Most of the water withdrawn by EPIF is returned to water bodies (92% in 2025), resulting
in only a minimal net water consumption by EPIF. Most withdrawals are linked to once-through or closed-
loop cooling systems as for our nature of business, while potable water is only used in minimal quantities.
This breakdown enables stakeholders to assess both the scale of dependence on different water sources and
the effectiveness of our efficiency measures.
million m 3 | Water withdrawn | Water discharged | Water consumed |
Czech Republic | 13 | 12 | 1 |
Slovakia | 0 | 0 | – |
Germany | 0 | 0 | – |
Total | 13 | 12 | 1 |
In 2025, EPIF’s water withdrawal and discharge significantly declined following divestment of two heating
plants which represented the most material water users in the Group. EPIF reported water withdrawal
intensity of energy production of 4.5 thousand m
3
/GWh, declining by 57% compared to the previous year.
In addition, EPIF has enhanced its disclosure by reporting cooling water withdrawals by source
(seawater/freshwater) with greater granularity. However, only freshwater withdrawals are included in
EPIF’s reporting, while seawater withdrawals fall outside the reporting perimeter.
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million m 3 | 2021 | 2022 | 2023 | 2024 | 2025 | % 25/24 |
Surface water | 41 | 94 | 84 | 40 | 13 | (67%) |
Ground water | 0 | 0 | 0 | 0 | 0 | 34% |
Municipal water supplies | 0 | 0 | 0 | 0 | 0 | 9% |
Other | – | – | – | 2 | – | (100%) |
Total | 41 | 94 | 84 | 41 | 13 | (68%) |
million m 3 | 2021 | 2022 | 2023 | 2024 | 2025 | % 25/24 |
Czech Republic | 34 | 88 | 81 | 36 | 12 | (67%) |
Slovakia | 0 | 0 | 0 | 0 | 0 | 2% |
Germany | 0 | 0 | 0 | 0 | 0 | 38% |
Total | 34 | 88 | 81 | 36 | 12 | (67%) |
Table 50 Water intensity of energy production
million m 3 | 2021 | 2022 | 2023 | 2024 | 2025 | % 25/24 |
Cooling water - withdrawal | 39 | 91 | 81 | 38 | 11 | (71%) |
Cooling water - discharge | 32 | 86 | 79 | 35 | 10 | (70%) |
Net energy production (GWh) | 5,295 | 5,041 | 3,932 | 3,629 | 2,419 | (33%) |
Water intensity (000 m3 / GWh) | 7.3 | 18.1 | 20.6 | 10.4 | 4.5 | (57%) |
Table
48 Water withdrawn by type of water
Table 49 Water discharged by country
Accounting Principles:
Total water withdrawal:
surface water
groundwater
rainwater
wastewater
water
supplies
Water intensity (000 m3 / GWh):
calculated as cooling water withdrawal per total energy production.
Total water discharged:
sum of effluents, used water, and unused water released to surface water,
groundwater, seawater, or a third party, for which the organization has no further use, over the course of
the reporting period.
Water consumption:
the portion of withdrawn water that is
not returned
incorporation into products, or transfer off-site. This metric is not material for EPIF.
Annual Financial Report for the year 2025 – Section X.
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6 ESRS E4 - Biodiversity and ecosystems
EPIF is aware of the importance of protecting biodiversity, as we understand the value of ecosystems and
the environmental benefits that they provide, as well as the critical role of biodiversity in maintaining
ecological balance and the potential impact of our operations on local habitats.
E4-1 –Transition plan and consideration of biodiversity and ecosystems in
strategy and business model
EPIF has located and identified sites we operate that can create high pressure on local biodiversity.
Leveraging the WWF Biodiversity Risk Filter (BRF) to conduct a preliminary high-level assessment, we
were able to analyze biodiversity and ecosystems-related risks and dependencies across EPIF’s value chain.
Based on this assessment, land, freshwater use change, and pollution have been identified as key impact
drivers. In 2025, the transition plan assessment was repeated with the same methodology as in 2024. The
outcomes were consistent, and no material changes were identified compared with the prior year. This
stability reflects both the maturity of our existing asset base and the absence of new greenfield projects. In
future reporting cycles,
EPIF will continue regular assessments to understand and quantify impacts and
dependencies on biodiversity and ecosystems.
E4.SBM-3 Material IROs and their interaction with strategy and business
model
Based on this assessment, EPIF has a broad overview of biodiversity-sensitive areas at greatest risk to EPIF
activities and understands that, predominantly, these activities contribute to land degradation. The high-
level biodiversity assessment has provided an indication that species' global extinction risk is not a material
topic to EPIF.
In the upcoming reporting cycle, EPIF will continue to assess its biodiversity impacts. This will enable us
to refine biodiversity-specific materiality thresholds, enabling EPIF to pinpoint the most material sites, and
take action accordingly.
E4.IRO-1 Identifying biodiversity and ecosystem-related IROs
EPIF has conducted a high-level biodiversity assessment consisting of a sector-level and site-level analysis,
identifying sites which are located within or close to biodiversity-sensitive areas, and therefore have greater
potential to cause negative impacts. This has allowed EPIF to understand where these impacts are most
likely to occur, but also which types of operational activities contribute to such impacts. EPIF also
conducted a screening of its value chain to identify impact areas across upstream, downstream, and its own
operations. Internal stakeholder engagement sessions were also held to thoroughly evaluate key operational
areas. As part of the identification process, we looked to understand the full extent of impacts, considering
their size, scale, timeframe of impacts and frequency with which they occur. Full details on this engagement
can be found in
.
Through this process, EPIF identified (1)
climate change
, (2)
land degradation
, (3)
land-use change
, and
(4)
direct exploitation
on biodiversity and ecosystems, and for associated reputational, legal, and financial risks.
ENCORE and the WWF BRF were used to support the process to determine EPIF's actual and potential
impacts on biodiversity. Through the ENCORE tool, we have identified activities with a medium to very
Annual Financial Report for the year 2025 – Section X.
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high impact on biodiversity. The WWF BRF was then used to provide a localized, site-level understanding
of the potential and actual site impacts on biodiversity and ecosystems. This was followed by site-level
enquiries to identify if these impacts might be applicable for EPIF assets. Based on spatial analysis and
stakeholder engagement, the following key impacts and risks have been identified:
●
GHG emissions from conventional sources contribute to global warming, affecting climate patterns
and leading to habitat loss and species extinction. The loss of biodiversity weakens ecosystem
resilience, harming resource availability and operational stability. Biodiversity loss due to climate
change increases regulatory scrutiny and stakeholder pressure while amplifying the physical risks
of ecosystem degradation, which can affect raw material supply and operational stability.
●
EPIF operates extensive gas infrastructure for the transmission, storage, and distribution of natural
gas. Given the scale of the pipeline system, interactions with biodiversity-sensitive areas, including
Ramsar-protected wetlands, are inherent.
●
EPIF operates a power distribution network in central Slovakia which might pose a danger for
wildlife, especially birds, as the network cannot entirely avoid areas with a higher prevalence of
vulnerable species.
●
EPIF operates heating plants with limited direct interaction with biodiversity-sensitive areas. EPIF
will continue to explore if any mitigations are necessary. This will be continuously evaluated in the
next phases of biodiversity and ecosystems-related assessments.
●
EPIF’s cogeneration heating plant fleet depends on resources extracted in the upstream value chain.
EPIF primarily sources lignite and biomass from its suppliers. The extraction process involves
direct exploitation of natural ecosystems which degrades habitats, reduces biodiversity, and can
cause long-term (and sometimes irreparable) ecological damage. The impacts and risks described
above associated with climate change, air pollution, or water resources are covered in greater detail
under
ESRS E1, ESRS E2, and ESRS E3.
When developing a new project, local communities are engaged in the form of focus groups and
consultations to foster transparency of business activities and its impacts, encourage local community
involvement, and manage crisis risk. EPIF is informing on its plans to minimize unavoidable negative
impacts and implement mitigation measures that aim to maintain value and functionality of priority
services.
As part of our approach to biodiversity risk and impact assessment, we utilized the ENCORE biodiversity
modeling tool to identify key activities of concern. This assessment indicated that GHG emissions and
water use are the most significant biodiversity impact drivers across our operations.
To further refine our understanding of site-specific biodiversity risks, we screened our operational locations
using the WWF Risk Filter for Biodiversity. This initial analysis identified sites with the greatest potential
impact on biodiversity and ecosystems in Slovakia.
Whilst we have not concluded on direct contributions to the impact drivers of land-use change, or freshwater
use change, insights from these early risk screenings inform the biodiversity and ecosystem-related IROs
assessed in our DMA for our own operations. We have not identified any material dependencies on
biodiversity and ecosystems or specifically incorporated local and indigenous knowledge and nature-based
solutions into biodiversity and ecosystems-related actions. While this assessment did not specifically
evaluate how biodiversity impacts in our upstream value chain affect local communities, it provides an
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essential first step in our ongoing efforts to assess and mitigate biodiversity-related risks and to confirm the
area in or near protected areas or key biodiversity areas negatively impacted by our operations.
E4-2 – Biodiversity-related policies
The
EPIF Bio-Diversity Policy
concerning biodiversity and ecosystems. This includes specific directions for taking a preventive approach
and looking to ensure that biodiversity is integrated into our Environmental Management Systems. We are
ensuring that our policy is implemented in a way to address the specific IROs identified within the DMA
process; for full information about this, refer to
Biodiversity and ecosystem IROs identified in the DMA such as land use change, land degradation and
direct exploitation are monitored as part of the continuous stakeholder engagement.
Currently, these policy requirements do not relate to dependencies or physical and transition risks and
opportunities, as our assessment required has identified any material dependencies. The policy currently
only prescribes actions to be taken as they relate to EPIF’s own operations and does not extend to the full
extent of our value chain, either through product traceability or sourcing and production. Presently, this
also means the policy does not extend to consider the management of social consequences of biodiversity
and ecosystem impacts.
E4-3 – Biodiversity-related actions
Reclamation and restoration of EPIF sites
EPIF considers reclamation at all stages of its operations, from project implementation or expansion to
decommissioning. We ensure to restore sites to their original state. As a result, EPIF created specific
reclamation measures that are applied across the Group; all entities have updated plans and contingencies
for site closures and other rehabilitation activities. The activities within the reclamation process may
include:
◾
Restoration and reclamation of affected areas
◾
Dismantling and removing structures
◾
Dismantling operating facilities
◾
Closing plant and disposal sites
All OpCos are required to maintain up-to-date reclamation and closure plans. In 2025, no changes were
made to the Group approach to the recultivation and reclamation strategy.
Refer to
Note 24 – Provisions
EP Infrastructure Consolidated Financial Statements as
of and for the year ended 2025
for further details on provisions related to restoration and decommissioning,
including a breakdown by subsidiary.
Biodiversity actions
At the power distribution network, the risk for local species, particularly birds, is mitigated by a set of
measures. These involve installing various technical elements within our distribution network, thereby
reducing exposure to high-voltage power lines. Every year, EPIF’s subsidiary Stredoslovenská distribučná
Annual Financial Report for the year 2025 – Section X.
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(“SSD”) treats several kilometers of sections that can potentially pose a risk to birds. As part of the LIFE
Energy project, where SSD is an unofficial partner, systematic monitoring (from 2014-2016) was carried
out on a range of 6,235 km on distribution lines of 22 kV and 110 kV. Every year, SSD treats several
kilometers of sections that can potentially pose a risk to birds.
The impact of gas transmission and distribution pipelines has been managed via a robust permitting process
throughout the development of this infrastructure. Since no further material expansion of the gas network
is currently envisaged, no new interactions with additional sensitive areas are anticipated.
The entire cogeneration heating plant fleet or compressor units of EPIF are located within EU countries,
where an Integrated Environmental Permit is mandatory for large industrial installations. This integrated
approach ensures comprehensive environmental management, covering air, water, soil, and waste
management, while preventing mitigation efforts in one area from negatively impacting another.
Additionally, new development projects are exclusively carried out at existing sites, with greenfield projects
expected to play only a minor role.
In its supply chain, EPIF strives to understand the impacts stemming from its reliance on biomass for its
operations. In this respect, we work to ensure sustainable sourcing via external certifications which are
mandated by the
Renewable Energy Directive
Our objective for the upcoming years is to further refine our understanding of the links between our key
activities of concern and our site-specific biodiversity risks, enabling prioritization and action plans as well
as overall transition planning and resilience analysis.
E4-4 – Biodiversity-related targets and metrics
At present, EPIF does not have group-wide targets specifically addressing ecosystem health and
biodiversity. We are in the process of utilizing the insights from our DMA to map out where our main
impacts are across our own operations and upstream value chain on ecosystems and biodiversity. We will
continuously assess whether setting group targets related to biodiversity will contribute to the effective
management of this IRO.
As EPIF has not identified any biodiversity sensitive areas being materially impacted by EPIF operations,
EPIF does not collect any metrics related to its impacts.
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7 ESRS E5 - Waste and by-products
EPIF operates critical physical infrastructure where waste generation is an inherent aspect of standard
maintenance and new project development. Much of this is driven by our expansion of gas pipeline
infrastructure, and conversion of our heating plants away from lignite to alternative technologies.
Additionally, EPIF might rely on the availability of critical raw materials to advance new business
opportunities, such as battery energy storage systems. In alignment with these activities, EPIF is committed
to minimizing waste production and promoting circular economy principles.
EPIF prioritizes waste reduction, invests in decommissioning and conversion strategies, and focuses on
waste recovery, reuse, and responsible disposal based on material composition. Notably, by-products from
certain power and heat generation are not classified as waste, as most have a lifecycle extending beyond
EPIF’s operations.
Furthermore, EPIF has strengthened its transparency by disclosing its Scope 3 carbon footprint, which
includes emissions from purchased external materials and components, among other value chain impacts.
As part of maintenance, modernization, and extension of our networks EPIF produces waste primarily by
power and gas distribution system operators. As we further develop our network, thereby working towards
ensuring a reliable supply for all, construction waste will be unavoidable. Therefore, we concentrate our
efforts on maximizing the amount of waste reused and recycled.
E5.IRO-1 Identifying waste and by-products-related IROs
EPIF has screened assets and activities to identify actual and potential IROs in its own operations and its
upstream and downstream value chain. Through this identification process, we determined that EPIF’s
business model does not lend itself to a circular model, and instead we aim to address the waste generated
through our processes and sites. Addressing waste, and where necessary, specifically addressing hazardous
waste, is the most material issue for EPIF within this area. Further detail on the methodology used can be
found under
In addition to applying the DMA methodology, EPIF’s screening of assets and activities relied on a
combination of internal operational expertise and historical waste-generation data across our portfolio. We
used our long-term operational experience with waste streams, site-specific environmental records, and
compliance monitoring results to evaluate reliable basis for identifying actual and potential IROs. No
specialized external tools were used, as the nature of our operations and existing datasets allowed for a
sufficient internal assessment.
EPIF has engaged key stakeholders in matters relating to waste and resource use. Full details of our
stakeholder engagement process can be found under
E5-1 – Waste and by-products-related Policies
EPIF acknowledges the impacts we have as they relate to resource use and waste management and has
therefore enshrined this commitment within our
EPIF Environmental Policy
. The policy focuses on
addressing the impacts of waste and, where applicable to OpCos, specifically addressing hazardous waste.
This includes managing waste in line with the European waste management hierarchy and incorporating
the principles of circular economy. At present, it does not extend to sustainable sourcing or the use of
renewable resources. Our investment in renewable energy and associated actions can be found under our
ESRS E1 - Climate change
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We are ensuring that the policies are implemented in a way to address the specific IROs identified within
the DMA process; for full information about this, refer to
E5-2 – Waste and by-products-related Actions
As directed by the
EPIF Environmental Policy
, our OpCos take appropriate action to reduce overall waste
generation, and reuse their waste based on circular economy principles.
There are no material dedicated resources related to waste management and circularity. In case of by-
products, the costs are an inherent part of the underlying business activities supported by corresponding
revenue streams from utilization of by-products.
Tackling waste management
Our waste disposal strategy prioritizes recycling whenever feasible, with landfill use as a last resort. EPIF
also disposes of its waste through third parties and suppliers (e.g. in cases where a construction supplier is
responsible for disposal of the associated waste), where we have limited oversight of the destination or
further use of the waste. To uphold responsible waste management, EPIF integrates strict waste disposal
requirements into binding supplier contracts, ensuring alignment with the Group’s best practices and
environmental standards.
The following case studies highlight specific actions taken by individual OpCos to tackle waste
management. These actions are ongoing and will continue to be monitored by the OpCos.
Plzeňská teplárenská
ZEVO Plzeň, a part of Plzeňská teplárenská, is a modern waste-to-energy plant producing power and heat
from municipal waste. This waste usage represents an ecological alternative to landfilling and is connected
to limited emissions. Following the waste combustion, there is a process set to separate iron from the
combustion residues and research is ongoing for future separation of non-ferrous metals. The remaining
slag is then landfilled as there is no other usage possible due to possible hazardous particles.
In another facility operated by Plzeňská teplárenská, biomass is burned to produce heat and power, where
the biomass ash is certified to be used in agriculture as fertilizer. Ash produced from lignite combustion is
used in the construction industry as a certified product.
SPP - distribúcia
As one of the largest contributors of waste produced by the EPIF Group (40% in 2025), the gas distribution
operator SPP - distribúcia (“SPP-D”) implements measures to not only reduce its waste, but also to
maximize the share of waste that gets reused or recycled.
The waste is mainly linked to the modernization of the gas distribution network, and it primarily consists
of stone and soil. As we further develop our network, thereby working to ensure a reliable supply for all,
construction waste will be unavoidable.
Therefore, we concentrate our efforts on maximizing the reusing and recycling of waste. As most of our
construction waste is disposed of by our suppliers, who provide the construction services to our network,
we include a binding condition in our supplier contracts. It emphasizes a supplier’s duty to always follow
EPIF’s waste disposal hierarchy and, whenever feasible, to first dispose of waste through methods of
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reusing and recycling over landfilling. The suppliers are obliged to recycle at least 70% of the produced
waste.
By-product management
Our remaining heat and power generation assets produce fly ash, slag, gypsum from the combustion of
lignite and biomass as secondary energy products. Thus, in most cases we can sell it for use in other
industries rather than categorize that as waste. These by-products are commonly used towards land
reclamation and the adjustment of terrains, or they are sold particularly for construction purposes. Our
OpCos ensure that all energy by-products are certified before they continue to explore other options for
their use.
Fly ash
Fly ash is used mainly by construction companies to produce concrete, aerated concrete, bricks, cement,
dry plaster and mortar mixtures, artificial aggregates, and ceramics. Utilization of coal ash in the
construction industry saves the primary materials which would be used instead (limestone, clay, sand). The
major customers sourcing fly ash from our companies include concrete plants and cement plants. Fly ash
can substitute a portion of emission-intensive Portland cement. No significant waste generation is connected
to this activity, similarly for slag, energy gypsum and granulated and granulated and stabilized mixtures.
The ash from pure biomass combustion can be also used by farmers as fertilizer.
Slag
Slag is used to construct road embankments, backfill road support structures, fill and backfill utility network
linear structures (water, sewage and gas pipelines) and as base sand in manufacturing fired bricks. Slag is
an alternative to gravel, eliminating the need for its extraction. Key customers comprise brick plants and
road construction companies.
Energy gypsum
Energy gypsum is used in the production of plasterboard and plaster, as a setting time regulator and activator
in the hardening process of aerated concrete, in cement production, and in the production of plaster mixes.
Additionally, gypsum can be utilized as an agricultural fertilizer, reducing the volume of gypsum that needs
to be mined.
Granulated and stabilized mixtures
Granulated and stabilized mixtures are certified compounds made from energy by-products and binders,
primarily used to reinforce the subgrade in road construction, other linear structures, dams, terrain
modelling, land reclamation, and similar projects.
E5-3 – Waste and by-products-related targets
EPIF has not previously established any targets related to the identified IROs for waste. We will continue
to monitor the impacts and risks associated with resource use and circularity. If it becomes necessary to set
a target for monitoring the effectiveness of potential actions, this will be communicated in upcoming
reporting cycles.
We aim to take a proactive approach and based on our continuous review of sustainability related policies;
we will evaluate the chances to establish meaningful targets in future reports when needed.
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Table 51 Waste disposed by type
Table 52 Byproducts by type
E5-5 – Waste and by-products metrics
In 2025, EPIF disposed 76 thousand tonnes of waste, representing a 79% increase compared to 2024. This
rise was driven by the commencement of conversion projects at Czech combined heat and power plants
transitioning away from lignite, which involved demolition and excavation works that generated additional
waste. In 2025, the largest portions of waste were generated in:
●
Gas and power distribution segment (52% or 41 thsnd. tonnes), where SPP-D was responsible for
32 thsnd. tonnes connected to gas distribution network modernization and SSD produced 9 thsnd.
tonnes mainly as part of maintenance and reconstruction works at the power distribution network.
●
Heat infrastructure segment (38% or 30 thsnd. tonnes) in relation to site preparation for new
projects of Plzeňská teplárenská. The waste is mainly represented by soil which is further utilized
after disposal.
tonnes | 2021 | 2022 | 2023 | 2024 | 2025 | % 25/24 |
Total non-hazardous | 47,272 | 38,811 | 43,214 | 41,597 | 75,263 | 81% |
Recycling | 21,838 | 28,828 | 28,017 | 27,307 | 72,085 | >100% |
Landfill | 3,024 | 2,385 | 1,719 | 4,605 | 973 | (79%) |
Other | 22,410 | 7,598 | 13,479 | 9,686 | 2,205 | (77%) |
Total hazardous | 1,134 | 889 | 1,025 | 996 | 1,088 | 9% |
Recycling | 301 | 129 | 256 | 311 | 180 | (42%) |
Landfill | 210 | 267 | 419 | 273 | 574 | >100% |
Other | 623 | 493 | 350 | 412 | 334 | (19%) |
Total | 48,406 | 39,701 | 44,239 | 42,593 | 76,351 | 79% |
22,139 | 28,957 | 28,273 | 27,617 | 72,265 | >100% | |
% recycled | 46% | 73% | 64% | 65% | 95% | |
non-recycled waste | 26,267 | 10,744 | 15,966 | 14,976 | 4,086 | (73%) |
% non-recycled | 54% | 27% | 36% | 35% | 5% |
thsnd. tonnes | 2021 | 2022 | 2023 | 2024 | 2025 | % 25/24 |
Additised granulate | 326 | 354 | 174 | 122 | 50 | (59%) |
Ash | 522 | 532 | 337 | 280 | 153 | (45%) |
Slag | 185 | 186 | 108 | 103 | 58 | (43%) |
Gypsum | 163 | 192 | 117 | 79 | 45 | (43%) |
Additional material - hydrated lime | 9 | 8 | 3 | 2 | 0 | (87%) |
Additional material - water | 74 | 83 | 48 | 42 | 29 | (31%) |
Other own production | 2 | 3 | 3 | 3 | 3 | 12% |
Other additional material | 7 | 13 | 7 | 2 | 2 | 22% |
Total | 1,288 | 1,370 | 796 | 632 | 341 | (46%) |
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Accounting Principles:
Byproducts
: materials generated as an integral part of the production process that are further used or
sold and therefore do not meet the definition of waste. By-products are reported separately by type (e.g.
ash, slag, gypsum) and are excluded from total waste figures.
Total waste other than byproducts:
include both hazardous and non-hazardous waste,
generated from
operational activities. Waste arising from third -party activities performed on behalf of the Group (e.g.
construction contractors) is included in “others” where data are available.
-The distinction between hazardous and non-hazardous waste is classified in accordance with
the European Waste Catalogue (EWC) and applicable national legislation.
Waste by means of disposal is split into
represents mainly disposal of waste by a third party (e.g. a contractor performing some construction
works) where the exact form of disposal is not tracked.
-Recycled waste
-Non-recycled waste
-Percentage figures (e.g.
% recycled
) are calculated as the share of recycled waste relative to
total waste other than by-products for the respective year.
Annual Financial Report for the year 2025 – Section X.
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Social section
Annual Financial Report for the year 2025 – Section X.
Consolidated Sustainability Statement
150
8 ESRS S1 - Own workforce
EPIF recognizes the value in all our relationships, placing special importance on those with our employees.
We understand that our ability to maintain the high standards we take pride in delivering to our customers
depends on the dedication of each team member. With this in mind, we are committed to fostering strong
connections across the Group, ensuring that together we drive both transformational energy advancements
and lasting, sustainable development.
S1.SBM-2 Interests and views of stakeholders
For full details on EPIF’s stakeholders and the ways in which we engage to understand their interests and
perspectives, refer to
In assessing the ways in which EPIF interacts with our employees, we sought to engage with stakeholders.
This was done through representative views of various departments, including HR and management bodies,
and we intend to perform Group-wide surveys on a regular basis to continually assess these views.
In the process of engagement to understand the perspectives of our employees, we did not find any issues
that were raised which have not already been considered. Therefore, we have not felt it pertinent to amend
our business model in light of these views; EPIF works to ensure that our business model, which relies on
our employees for the operation and ultimately growth, already aligns with their best interests.
S1.SBM-3 Material IROs and their interaction with strategy and business
model
EPIF has identified IROs and associated actions to tackle these for the entirety of our workforce, as outlined
in
employees to be potentially impacted by the IROs found to be material, and this extends to any employee
who works within any OpCo, including any contractors, agency workers, or temporary workers.
These impacts are all agnostic across our OpCos, but may be slightly different given the varying nature of
these entities. For example, we prioritize health and safety and aim to ensure that all our employees have
the right to the highest quality health and safety procedures, but the specific processes to address these will
differ depending on the OpCos and the jobs which employees perform. As EPIF, we have not identified
any highly specific impacts, instead focusing on these broader issues, but we encourage OpCos to assess
their entities individually.
EPIF has not identified any material positive impacts in this current reporting period, as we believe it is
more beneficial to focus on tackling negative impacts. We will continue to monitor any potential positive
impacts as they arise; we also consider how actions to mitigate and remediate negative impacts could result
in potential positive impacts with proper management. Within the IRO identification process, EPIF found
there to be four of the seven material matters to have associated risks and opportunities; EPIF is reliant on
our workforce performing to the best of their ability – something we take pride in supporting – and
addressing these negative impacts will support the mitigation of these risks and the resulting opportunities.
As EPIF shifts away from activities like lignite-based heat and power generation, the required structure and
skillset of our workforce are evolving. We are committed to equipping our employees with the necessary
training and upskilling opportunities, enabling them to apply their expertise in the transition toward a
decarbonized energy system. When closures necessitate workforce reductions, EPIF collaborates with local
governments to ensure that affected employees receive appropriate social protection and support.
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EPIF’s own workforce does not operate in regions which are at significant risk of forced or compulsory
labor, nor of child labor. Our types of operation are also not at risk of these forms of forced labor. These
issues are considered within
When identifying potential IROs relating to our workforce, we took a holistic approach to consider the
broadest spectrum of our workforce rather than focusing on people with particular characteristics or specific
groups of people. This approach extends to our consideration of risks arising from dependencies. As
diversity was identified as a material impact, we will consider how specific groups are affected, and tailor
our recommended actions to accommodate them.
S1-1 – Own workforce-related policies
EPIF looks to manage the impacts, risks and opportunities associated with our employees and workforce
through our suite of policies. As outlined in
identified in the DMA process to more effectively manage these matters, and build upon the foundation we
have already established.
EPIF works to respect our employees’ human rights through the implementation of non-discriminatory
guidelines. EPIF aligns with the
UNGC Principles on Human Rights and Labor
, mandating EPIF and our
suppliers respect human rights as defined by the
UN’s Universal Declaration of Human Rights
. EPIF’s
process to provide and enable remedies for human rights impacts is aligned with the
UNGP on Business
and Human Rights
, which outline actions businesses should take in the event of a negative human rights
impact. EPIF will follow this guidance if a human right incident were to occur. Whilst we have not found
matters relating to forced labor, child labor, or human trafficking to be material, EPIF does not tolerate any
form of human rights violation within our workforce and have taken measures to incorporate such a stance
into our policy. In addition to this, EPIF supports our employee’s labor rights by maintaining a good
standing relationship with trade and labor unions.
We aim to engage with our employees on an ongoing basis and have provided a Group-wide guidance to
OpCos on conducting comprehensive employee satisfaction surveys. Following this, we will consider how
these outcomes could be incorporated into our employee strategy.
EPIF's core values for its own workforce are based on providing a workplace that prioritizes a healthy and
safe environment, where every employee feels included, and is free to express any concerns or grievances
without fear of retaliation. This is achieved through the quality of our health and safety and workplace
accident prevention management, detailed in our
Diversity Policy
,
Operational Policy,
Code of Conduct,
and
Policy on Reporting of Serious Concerns.
We are also committed to promoting diversity, secure employment, providing training and skills
development, and upholding a zero-tolerance policy towards violence and harassment in the workplace.
This is outlined in our
Diversity Policy,
with our OpCos, and echo the expectations set out by the International Labor Organization’s (ILO)
Declaration on Fundamental Principles and Rights at Work
. Within this policy, EPIF sets out the grounds
for discrimination, which include age, disability, gender reassignment, marriage and civil partnership,
pregnancy and maternity, race, color, nationality, ethnic or national origin, religion or belief, sex, and sexual
orientation. Currently the policy does not establish key commitments to include or promote the positive
action of these groups, which we leave up to the discretion of our OpCos.
In addition to this policy, EPIF aligns itself with relevant local labor codes and legal regulations in its
employment processes. This ensures that we promote employment, and recruit and treat talent on the sole
Annual Financial Report for the year 2025 – Section X.
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basis of their qualifications, thereby avoiding discrimination of any kind. Our employment practices and
procedures are reviewed at least once a year and updated to include any internal changes or those imposed
by new legislation. In 2025, oversight of the Compliance Committee (established at the parent company
level) over the implementation of our diversity policy and reporting of serious concerns was formalized.
OpCos have been also equipped with Group-wide guidance on training related to these topics.
S1-2 – Processes for engaging with own workforce and workers’ representatives
about impacts
EPIF recognizes the importance of incorporating workforce perspectives into its decision-making
processes, particularly when addressing actual and potential impacts on employees. Therefore, regular
engagement with our workforce is a core part of EPIF. While feedback channels and surveys have been
used to gather direct insights from our employees, EPIF did not have centralized formal methods for
assessing the effectiveness of our engagement with our own workforce or for evaluating the outcomes of
agreements reached. We have addressed this gap to support a more structured and comparable process by
developing a Group-wide guidance document that will help OpCos design and conduct their surveys more
effectively.
The guidance provides core principles and basic rules for survey design, along with key topical areas that
should be covered. We recognize that our companies operate in diverse markets and industries, and
therefore flexibility was essential to us when designing this guidance. Therefore, the survey should always
reflect the specific risks and opportunities of each company. EPIF’s Board and executive leadership will
have overall operational responsibility for overseeing all employee engagement.
To balance consistency with relevance, the survey consists of two main parts:
●
Part I is standardized across all OpCos, covering general topics such as overall employee
satisfaction, quality and availability of training, and the level of support received from direct
supervisors.
●
Part II includes recommended topical areas that OpCos may choose to explore further, based on
their specific business needs and operational context. The selection and phrasing of these additional
questions is to be considered by each company itself.
This approach will allow us to obtain comparable insights across the Group through the common survey
section, enabling us to identify and address key issues from the employees’ perspective at the Group level
in upcoming reporting periods. In addition to the methodological guidance, we have also provided a sample
satisfaction survey that OpCos may use as inspiration when designing their own questionnaires. By
collecting and analyzing structured feedback from our employees, we aim to continuously improve our
workplace environment and business performance across the Group.
Although not centrally mandated in the previous reporting years, employee satisfaction surveys were widely
conducted across OpCos. These surveys occurred regularly or whenever feedback on a specific topic was
needed. As 93% of employees were covered by collective bargaining agreements in 2025, employee
interests are actively represented, and their voices are heard through labor union representatives. However,
we believe that implementing the aforementioned guidance will foster our efforts even further.
As part of updating this process, EPIF is looking to take a holistic view and understand the broad
perspectives of all employees, rather than specifically targeting potentially vulnerable members of the
workforce. As we mature on this journey, we will look to incorporate these viewpoints with specific
questions and discussion points.
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As EPIF does not operate on a global basis, we have not established a specific Global Framework
Agreement to address human rights of employees.
S1-3 – Processes to remediate negative impacts and channels for own workforce
to raise concerns
EPIF has established grievance mechanisms at OpCo and holding level related to employee matters to
ensure that employees can voice their concerns in a safe, confidential, and transparent manner. This allows
them to report any issues without fear of retaliation and/or retribution, the procedures, and its
implementation. In our “
Policy on Reporting of Serious Concerns
”, the channels are operated in a manner
that ensures the confidentiality (to the extent possible) of the identity of the reporting person and prevents
access to non-authorized employees.
If a negative impact is identified, corrective measures may include removing the defective condition,
implementing specialized employee training, taking disciplinary action against the responsible individual,
or providing compensation to the affected person.
For information on how EPIF ensures the protection of whistleblowers, and assesses employees trust and
awareness of these processes, please see
The effectiveness of the channels for reporting negative impacts is assessed annually by the Compliance
Committee, specifically by the designated individuals responsible for collecting concerns.
S1-4 – Own workforce-related actions
EPIF is working to take action on our identified IROs as they relate to our own workforce. As these actions
form part of our regular and ongoing business strategy, no additional significant resources are necessary.
We outline the specific actions we are taking to tackle our identified IROs in this section. We anticipate
these actions to be complete in the upcoming reporting cycle, whilst the specific actions will be an ongoing
process that we review periodically to ensure they are sufficient in managing identified IROs.
We are continuously reviewing our Code of Conduct to ensure that key principles on ethical business
practices, human rights, and environmental responsibility stemming from the insights we gathered during
our DMA exercise are adequately covered and enable an annual acknowledgment of its content by
employees via the operating companies.
To better understand employee perspectives and continuously improve our approach, we are enhancing
employee feedback and engagement by encouraging satisfaction surveys according to the centrally
provided satisfaction survey guidance that assess sentiment on topics such as inclusion, well-being, and
workplace ethics across our operating companies. This engagement will also support us in establishing what
the best course of action is when looking to prevent and mitigate specific impacts and risks.
We have also provided central guidance to encourage targeted awareness campaigns on material topics such
as whistleblowing, diversity, and workplace harassment. These campaigns can utilize various formats
which may include email correspondence, interactive or other digital content.
Actions related to diversity
EPIF understands that a lack of diversity can cause conflict and dissatisfaction within the workplace and is
looking to take action to address this. Since our group is quite diverse, it is challenging to implement certain
initiatives across all OpCos. Despite this, we have decided to bypass this decentralized approach in this
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case. To ensure consistency and impact across companies, we have implemented new guidance regarding
training, including a dedicated module on diversity and its many benefits. The biggest benefit of this action
is that it should be applicable to all employees across the whole group. We believe that by coming together
in this way, we can raise awareness, celebrate diversity, and foster a more inclusive and inspiring workplace
for everyone.
On top of this action, individual companies are also supported in creating individual actions that best suit
their business. EPIF sets fundamental principles through its policy, which OpCos are expected to follow.
Actions related to training and skills development
Equipping EPIF’s workforce with the necessary skills to adapt to technological advancements and the
energy transition is integral to operational success. Training and skills development improves employee
performance, fosters innovation, and ensures alignment with EPIF’s strategic focus on sustainable growth,
workforce satisfaction, and competitiveness in a rapidly evolving sector.
Without proper training and upskilling of the workforce, operational inefficiencies and increased safety
risks can lead to costly accidents, equipment damage, and production delays. Furthermore, failure to have
targeted training programs in place that proactively address reskilling and use of new technologies could
contribute to slower adaptation to industry changes, potentially affecting compliance and competitive
positioning. Investing in reskilling and upskilling programs can enhance operational efficiency, employee
retention, and innovation capacity.
Recognizing the importance of providing consistent and high-quality
training opportunities to our employees, we have decided to develop a Group-wide guidance document on
the topic of employee training across all OpCos which highlights the need for companies to provide training
to its employees, which is enshrined in our policies.
This guidance establishes fundamental principles that each company within the Group is expected to follow,
focusing on coverage, regularity, accessibility, and tracking of training activities. Its purpose is to ensure
that all employees have access to the necessary knowledge and skills to perform their roles effectively,
while supporting a culture of continuous learning and compliance across the organization. The guidance
categorizes training into two main groups:
●
Mandatory training, which should be completed by all employees across all companies. This
includes, for example, health and safety and cybersecurity training.
●
Targeted training, designed for employees who are more directly exposed to certain risks. This
includes training on anti-corruption and anti-bribery, anti-trust law, diversity & inclusion, and
health and safety.
On top of that, the guidance also provides a practical example of a training overview, illustrating how
companies may structure and document their training programs.
By aligning our approach to training across the Group, we aim to enhance both employee competence and
organizational integrity, ensuring that all our companies operate according to the same high standards of
professionalism and compliance.
The Young Gas Worker program organized by EPIF’s subsidiary SPP distribúcia (“SPPD”) trains future
mechanics in maintenance and measurement across Slovakia, addressing workforce aging and a shortage
of skilled labor. It targets final-year students from engineering and electrotechnical secondary schools,
offering internships and potential employment. From September to May, students train eight days per month
under skilled instructors while receiving scholarships and protective equipment. Since its launch in 2014,
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87 students have participated, 23 joined full-time, and 13 remain with us today. During the 2025/2026
school year, SPPD will have 17 new students participating in internships. Apart from this training program,
SPPD launched a Graduate Program, which is designed for university graduates. Eight positions have been
allocated within the organizational structure, allowing individual divisions to develop specialists to replace
departing employees. The one-year program includes rotations across all company divisions, enabling
participants to gain a comprehensive understanding of processes and build relationships with key
colleagues. Participants also complete three soft-skill trainings, along with role-specific professional
training as required. Upon completion of the program, participants are appointed to specialist positions.
Currently, five of the eight positions are filled (four in Network Operation and Asset Management
Division and one in Investment Division), with three positions remaining available for future participants.
Recognizing the importance of educating its own employees, SPPD has created two additional programs.
Firstly, a third cycle of this two-year development program called Career at Full Throttle, whose objective
is to retain key employees in both managerial and specialist roles, prepare them as successors to safeguard
company-specific know-how, and simultaneously identify, motivate, and retain high-potential talent whose
growth contributes to the company’s long-term success. The current cycle comprises 21 participants from
all company divisions. While the program primarily focuses on enhancing soft skills and managerial
capabilities through external training providers, it also incorporates a variety of complementary
development activities. The second newly implemented program Foreman Successor Training is designed
to prepare successors for foreman positions within the Maintenance Division. This one-year program
consists of 10 training days, divided into five two-day modules. The first four modules focus on professional
training and are delivered by internal trainers. The fifth module focuses on managerial training and is
delivered by an external provider. Each module is followed by e-learning, which participants are required
to complete within one month after the in-person training. The program begins and concludes with joint
teambuilding events attended by company management, and each participant is assigned a dedicated
mentor. Launched in Q4 2024, the program currently includes 14 participants.
EPIF’s subsidiary Stredoslovenská energetika (“SSE”) implemented training programs in digital skills,
enhancing proficiency in MS Office, Power BI, and AI-driven process improvements. Soft skills training
focused on professional communication, emotional intelligence, teamwork, and psychological well-being,
particularly for customer service employees. In 2025, SSE introduced a new program specializing in
employee training in the area of personal career growth. Through newly established program called
SSEminárTU, SSE strengthens the leadership capabilities of its current top and middle managers. At the
same time, they identify high-potential talent and prepare successors for key managerial and strategic
positions.
Additionally, our leadership program strengthened managerial decision-making and motivational abilities,
ensuring effective leadership across the organization. EPIF’s subsidiary Plzeňská Teplárensk á („PLTEP“)
officially opened a new training center for students from the local secondary vocational school of electrical
engineering. This unique initiative in the Czech heating industry aims to develop skilled professionals by
providing practical training aligned with modern energy and electrical technologies. The center, established
in a repurposed heat exchanger station, includes classrooms, workshops, and a fully operational model of a
heat exchange station for hands-on experience. It also features EV charging stations and rooftop solar
panels, giving students exposure to current industry trends. This project, launched in partnership with the
secondary school, reinforces PLTEP’s commitment to securing future talent and maintaining its role as a
key employer in the region.
Actions related to social dialogue, freedom of association and collective bargaining
EPIF understands that inconsistent engagement can lead to weakened trust and escalated labor disputes, as
well as leading to operational disruptions and increased employee attrition. EPIF prioritizes open dialogue
Annual Financial Report for the year 2025 – Section X.
Consolidated Sustainability Statement
156
with its employees and labor unions, with 93% of its workforce covered by collective bargaining
agreements in 2025.
Actions related to secure employment
Providing secure employment is fundamental to EPIF’s ability to retain talent, maintain workforce
motivation, and sustain long-term productivity. Stability in employment practices directly supports EPIF’s
operational strategy and aligns with its commitment to fair labor practices and international standards. EPIF
understands that a lack of secure employment, caused by temporary contracts or a lack of cohesive social
protection plans can cause issues with retention of talent, loss of workforce motivation and a loss of long-
term productivity. EPIF offers long-term perspective to its employees by its strategy of converting
emission-intensive assets into alternative technologies rather than disposing of them without replacement.
Please refer to the section ‘
ESRS E1 - Climate change
’
for detail on EPIF decarbonization strategy and
projects. As EPIF operates exclusively in EU member states, secure employment is further reinforced by
local labor laws.
Actions related to measures against violence and harassment in the workplace
EPIF understands that failure to address violence and harassment in the workplace creates a culture of fear,
creating serious harm to individuals suffering, and is looking to take actions to address this. In line with our
Policy on Reporting of Serious Concerns,
employees report and instances of violence and harassment without fear of retribution. Please refer to
Actions related to health and safety
EPIF understands that safety can only be achieved if well-being is first addressed. That is why we have
strong commitments for both the well-being and safety of our stakeholders, which include providing
training, and ensuring that regular improvements are made to our governance and internal policies. We
make the health and safety of our stakeholders’ top priority by constantly learning, sharing and improving
our approach to embedding a “health and safety first” culture throughout the Group.
We continuously work on improving and monitoring the health and safety mechanisms within our Group,
as we understand the risk associated with their mismanagement. As a result, we are highly focused on
identifying, mitigating, and preventing such risks. We have implemented high standards for the health and
safety management of our stakeholders, and we constantly seek to improve our attention to wellness and
level of safety within the Group. We also understand the possible risks associated with mismanagement,
such as those arising from poorly managed equipment or avoidable human errors.
We ensure that our employees are provided with the training required to meet the expectations of our H&S
policies and governance. We strive to implement management that is complemented by appropriate
measures and guidance.
The Group is compliant with the certification standards and legislative requirements for health and safety
within the countries in which we operate. These requirements may differ among the Group’s entities, but
our commitment to meet best practices and legal expectations is consistent throughout. In 2025, 76% of
EPIF employees worked in subsidiaries covered with health & safety management system certified to ISO
45001 (compared to 81% in 2024). This does not mean that the rest of our employees work in unsafe and
unhealthy environments. Entities without any physical operations typically do not seek this certification.
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The most significant exposure to serious injury incidents is present at EPIF’s subsidiary Stredoslovenská
distribučná („SSD“) which operates the power distribution network in central Slovakia. In response to
unfortunate fatal incidents in 2022 and 2023, SSD hired a leading provider of operations management
consulting services as its external consultant to perform a detailed assessment of procedures, controls, and
overall company culture in the health & safety area. The assessment confirmed the existence of high-quality
procedures, standards, and rules within the company. On the other hand, the consultant recommended
certain enhancements to reinforce an independent safety culture through defining a vision and strategy for
safety and building the foundation for a risk-based mindset across SSD. The company has implemented the
recommendations across its operations. SSD has continued to enhance its approach to occupational health
and safety through several initiatives such as increased frequency of hands-on safety inspections by senior
management, dedicated workshops for management employees, as well as H&S days for all employees.
S1-5 – Own workforce-related targets
Currently, EPIF does not have specific targets in place to manage the impacts and risks of its own
workforce. EPIF will consider setting targets in future reporting cycles if assessed as meaningful to reach
EPIF objectives. We track the effectiveness of our actions through a robust KPI process, which each OpCo.
reports into; monitoring these KPIs is one way we ensure we are progressing on our sustainability journey.
S1-6 – Characteristics of EPIF’s employees
The following tables give a detailed breakdown of our employees and their characteristics. Information on
non-guaranteed hours employees is not reported as it is not material to EPIF.
The number and structure of employees were affected by divestments in 2025. During the year, the EPIF
divested two heating plants in the Czech Republic.
The reported figures represent average full-time equivalents for the reporting period and are therefore
aligned with the figures disclosed as complementary information to personnel expenses in the Consolidated
statement of comprehensive income in the
EPIF Group Consolidated Financial Statements as of and for
the year ended 31 December 2025
.
Table 53 Employees by country – 2025
FTE average | 2021 | 2022 | 2023 | 2024 | 2025 | % 25/24 |
Czech Republic | 1,459 | 1,461 | 1,485 | 1,491 | 948 | (36%) |
Slovakia | 4,289 | 4,311 | 4,231 | 4,241 | 4,325 | 2% |
Germany | 61 | 62 | 62 | 66 | 67 | 2% |
Netherlands | 2 | 2 | 2 | 2 | 2 | 0% |
Total employees | 5,811 | 5,837 | 5,780 | 5,800 | 5,342 | (8%) |
Representative employees | 5,748 | 5,773 | 5,716 | 5,732 | 5,273 | (8%) |
Representing percentage | 99% | 99% | 99% | 99% | 99% | (0%) |
82
is required by the ESRS
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Table 54 Employees by contract type - 2025
Table 55 Employees by gender – 2025
Table 56 Employee turnover rate
Table 57 Contract type by gender – 2025
FTE | Full-time | Part-time | % Full | Permanent | Temporary | % Perm. |
Czech Republic | 923 | 26 | 97% | 919 | 29 | 97% |
Slovakia | 4,306 | 18 | 100% | 3,866 | 458 | 89% |
Germany | 63 | 5 | 93% | 64 | 3 | 96% |
Netherlands | – | 2 | 0% | 2 | – | 100% |
Total | 5,291 | 50 | 99% | 4,852 | 490 | 91% |
Gender distribution 2025 | C-level executives | Middle management | Other employees | |||
FTE average | Male | Female | Male | Female | Male | Female |
Czech Republic | 23 | 3 | 39 | 19 | 658 | 207 |
Slovakia | 38 | 3 | 250 | 34 | 3,084 | 916 |
Germany | 2 | – | – | – | 57 | 8 |
Netherlands | – | – | – | – | 1 | 1 |
Total | 63 | 6 | 289 | 53 | 3,800 | 1,132 |
% | 2021 | 2022 | 2023 | 2024 | 2025 |
Czech Republic | 9% | 8% | 8% | 9% | 8% |
Slovakia | 6% | 8% | 10% | 7% | 6% |
Germany | 12% | 8% | 5% | 3% | 3% |
Total | 7% | 8% | 10% | 8% | 6% |
FTE | Full-time | Part-time | % Full | Permanent | Temporary | % Perm. | ||||
Male | 4,113 | 38 | 99% | 3,784 | 366 | 91% | ||||
Female | 1,178 | 12 | 99% | 1,067 | 123 | 90% | ||||
Total | 5,291 | 50 | 99% | 4,852 | 490 | 91% |
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Accounting Principles:
Headcount (FTE)
represents the total number of employees in an employment relationship with the
organization, including those on parental leave. It excludes workers under contract for services or trade
licenses. Headcount is reported as average value of FTEs in the given year and is calculated as the number of
hours worked by all employees (excluding overtime), including holidays, sick leave, and non-working time due
to work obstacles, divided by the standard working hours of a full-time employee for the reporting period.
Tiers:
-
C-level Executives
Officer, Chief Financial Officer, and similar roles.
-
Middle Management
Includes individuals in managerial roles reporting to C-level executives,
typically Heads of individual departments (e.g., Head of IT, Head of Controlling, Head of HSE, Head
of HR, etc.).
-
Other Employees
management.
Contract type:
-
Permanent employment contract
: contract with an employee, for fulltime or part-time work, for an
indeterminate period.
-
Temporary employment contract:
event, including the end of a project or work phase or return of replaced employees.
The turnover rate
average number of employees during the year.
It includes all employee departures, i.e. employees who leave voluntarily, due to dismissal, or retirement.
Contract split by gender
subsidiaries.
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S1-7 – Characteristics of EPIF’s non-employee workers
Information on not directly employed persons is insignificant to EPIF and therefore is not disclosed.
S1-8 – Collective bargaining coverage and social dialogue
At EPIF, we also support freedom of association throughout the Group. This is not only for compliance
with European and national regulations, but because we see value in allowing employees to coordinate and
negotiate with their employers. The Group respects its employees’ rights to participate and engage with
trade unions, and we do not tolerate any type of retaliation or hostile action towards employees who choose
to do so.
EPIF does not have any agreement with its employees for representation by a European Works Council
(EWC), a Societas Europaea (SE) Works Council, or a Societas Cooperativa Europaea (SCE) Works
Council.
Covered rate % | 2021 | 2022 | 2023 | 2024 | 2025 | |||||
Czech Republic* | 82% | 80% | 80% | 80% | 78% | |||||
Slovakia* | 99% | 99% | 97% | 97% | 97% | |||||
Germany | 88% | 87% | 87% | 88% | 89% | |||||
* above: Representing more than 10% of total employees | ||||||||||
Accounting Principles:
Employees covered by collective bargaining agreements:
labor unions in negotiations on wages and other matters. Employees do not have to be members of
labor unions themselves.
S1-9 – Diversity metrics
As committed as we are to equal employment in our talent, we still see a disproportionate number of women
to men in our Group. This is currently the norm in energy-focused fields and is reflected in the rates
experienced by our peers. In 2025, 22% of EPIF workforce was represented by female employees.
Diversity | FTE average | % share | ||
% | Male | Female | Male | Female |
C-level executives | 63 | 6 | 92% | 8% |
Middle management | 289 | 53 | 85% | 15% |
Other employees | 3,800 | 1,132 | 77% | 23% |
Table 58 Employees covered by collective bargaining agreements – 2025
Table 59 Employees gender diversity - 2025
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Age structure | FTE average | % share | ||
2024 | 2025 | 2024 | 2025 | |
< 30 years old | 487 | 471 | 8% | 9% |
30-50 years old | 2,686 | 2,420 | 46% | 45% |
> 50 years old | 2,626 | 2,450 | 45% | 46% |
FTE | 2021 | 2022 | 2023 | 2024 | 2025 | % 25/24 |
Czech Republic | 13 | 18 | 16 | 18 | 11 | (39%) |
Slovakia | 148 | 158 | 167 | 169 | 171 | 1% |
Germany | 4 | 4 | 2 | 2 | 3 | 46% |
Total | 164 | 180 | 185 | 189 | 185 | (2%) |
Accounting Principles:
Age distribution:
max 29 years old), 30-50, and over 50 years old (i.e. 51 and older).
Employees with disabilities:
by local legislation.
S1-13 – Training and skills development metrics
We are committed to providing the right tools and environment for our employees to grow and develop
professionally. In an effort to better understand the strengths of our employees, we perform regular work
assessments and evaluations. This not only allows us to improve the allocation of talent within the Group,
but it allows us to understand where our employees could benefit from further support.
Building on this approach, the organization recognizes the growing importance of strengthening
competencies in artificial intelligence, digitalization and related IT-security areas. EPIF aims to further
encourage structured training and skills-development programs that equip employees with these emerging
capabilities and support innovation, operational efficiency and resilient business practices. Since
cybersecurity is a crucial topic for us, given that we operate critical infrastructure in Europe, we
implemented a structured training guidance across all companies in 2025. One of the key training areas
covered by this guidance, which applies to all employees across all companies, is cybersecurity. This
manual outlines how companies should conduct cybersecurity awareness training, how frequently it should
be undertaken, and provides materials that can serve as inspiration for the training. Our guidelines are fully
aligned with the principles set out in our
.
Table 60 Employees age structure – 2025
Table 61 Employees with disabilities by country
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Employee Reviews | number of employees | % | ||||||
2024 | 2025 | 2024 | 2025 | |||||
Male: | ||||||||
Employees that participated in regular performance and career development reviews | 2,518 | 3,464 | 56% | 83% | ||||
Female: | ||||||||
Employees that participated in regular performance and career development reviews | 761 | 976 | 60% | 82% | ||||
Total: | ||||||||
Employees that participated in regular performance and career development reviews | 3,279 | 4,440 | 57% | 83% | ||||
Training hours per employee | ||||||
Hours per employee | 2021 | 2022 | 2023 | 2024 | 2025 | % 25/24 |
Czech Republic | 10 | 12 | 14 | 12 | 14 | 17% |
Slovakia | 35 | 39 | 47 | 47 | 42 | (10%) |
Germany | 19 | 17 | 39 | 129 | 71 | (45%) |
Hungary | – | – | – | – | – | |
Total | 29 | 32 | 38 | 39 | 37 | (3%) |
Hours per employee | Male | Female |
Total training hours | 152,961 | 46,452 |
Hours per employee | 37 | 39 |
Accounting Principles:
Training
：
Training includes formal internal and external learning activities provided or financed by
the individual subsidiaries during the reporting period. Split of training hours by gender is currently
estimated based on ratio of male/female employees in individual subsidiaries.
Employee reviews
: Number of employees which received formal review of their performance and / or
career development. Gender specific information is currently estimated based on ratio of male/female
employees in individual subsidiaries.
S1-14 – Health and safety metrics
As part of EPIF’s commitment to ensuring the highest standards of health and safety within our operations,
we track the following metrics related to own employees.
Table 62 Employees Reviews
Table 63 Training hours per employee
Table 64 Training hours by gender
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Own employees H&S metrics | 2021 | 2022 | 2023 | 2024 | 2025 | ∆ |
Fatal injuries (#) | – | 1 | 1 | – | – | – |
Lost-time injuries (#) | 27 | 30 | 18 | 15 | 14 | (1) |
Worked hours (mil.hours) | 10 | 9 | 9 | 9 | 8 | (1) |
Injury Frequency rate (index) | 2.8 | 3.3 | 2.0 | 1.6 | 1.7 | – |
Regarding contractors, no fatal injuries have been recorded over the last five years.
Country | Work days lost | Work days lost per injury | ||
2024 | 2025 | 2024 | 2025 | |
Czech Republic | 379 | 93 | 63 | 23 |
Slovakia | 637 | 491 | 71 | 49 |
Total | 1,016 | 583 | 68 | 42 |
Accounting Principles:
Lost-time injuries:
All injuries that resulted in absence of the employee.
Fatal injuries:
Worked hours lost:
related injury which was reported within Lost time injuries.
Injury frequency rate:
Number of Lost time injuries per million hours worked (excluding fatal
injuries).
S1-17 – Incidents, complaints and severe human rights impacts
In accordance with the EPIF
Policy on Reporting of Serious Concerns
, employees are encouraged to first
discuss any issues with their line manager before utilizing the formal reporting channels available at the
OpCo or EPIF holding level. In most cases, concerns raised with line managers or designated personnel are
resolved without the need for a formal investigation.
In 2025, no cases were formally reported to EPIF by the EPIF Group employees through the internal
grievance reporting mechanism,
and the situation remained unchanged compared to 2024. All concerns
were settled informally by designated personnel. As a result, there were no related fines, penalties, or
compensation for damages. Similarly, no severe human rights incidents were recorded during the reporting
year, and therefore no associated fines, penalties, or compensations were incurred. There were also no fatal
incidents within EPIF subsidiaries.
Metrics related to human rights impacts and discrimination / harassment incidents are reported as part of
the standard KPI collection process.
Table 65 Own employees – key health and safety metrics
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9 ESRS S2 - Workers in the value chain
EPIF’s workforce does not end at the gates of our operations. As part of our duty to be a responsible
business, we work to ensure that workers within our value chain are given the same respect and high
standards of employment as we offer our own employees.
S2.SBM-2 Interests and views of stakeholders
For full details on EPIF’s stakeholders and the ways in which we engage to understand their interests and
perspectives, refer to
In assessing the ways in which EPIF interacts with value chain workers, we sought to engage with
stakeholders. At present, we are unable to target the specific views of individual workers, instead relying
on the representative views of our suppliers and those relationships. We are gradually expanding our
engagement to ensure that our suppliers are upholding their contractual obligations to ensure high quality
employment conditions in line with our supply management practices.
We
are exerting reasonable effort to
understand how individual value chain workers are treated, with particular emphasis on ensuring that there
are no potential violations of human rights such as incidents of forced or child labor, and that the health and
safety of these workers meet our stringent expectations. Currently, there are no plans to amend our business
model as we have yet to understand the full views of this group of stakeholders.
S2.SBM-3 Material IROs and their interaction with strategy and business
model
EPIF is in the early stages of engagement with its value chain workers and does not currently distinguish
between types of value chain workers. While no detailed analysis of specific worker characteristics has
been conducted to date, EPIF has introduced a risk-based approach to identify the parts of its value chain
where workers may be most exposed, including geographies with elevated risks of child, compulsory, or
forced labor. EPIF has identified health and safety, training and development, child labor, and forced labor
to be material IRO topics pertaining to workers in the value chain.
Ensuring health and safety in EPIF’s value chain is critical for maintaining stable operations, minimizing
supply disruptions, and safeguarding the Group’s reputation. High-risk activities such as resource extraction
and transportation pose significant challenges. Addressing these risks aligns with EPIF’s commitment to
operational excellence and ensures compliance with global health and safety standards, strengthening the
Group’s resilience and long-term strategy.
Some of EPIF's suppliers and contractors operate in hazardous environments, either upstream or directly at
the EPIF sites. Poor safety standards can lead to workplace accidents, illnesses, and fatalities, negatively
impacting workers and their families while increasing disruptions in EPIF’s supply chain. If EPIF fails to
secure proper health and safety standards across its value chain (for activities such as the use of contractors
for construction, maintenance, transportation, or other high-risk projects), workers facing hazardous
working conditions may be injured seriously or fatally or develop long-term health issues.
By promoting stringent health and safety measures and ensuring supplier compliance, EPIF can minimize
accidents, strengthen supply chain resilience, and position itself as a leader in responsible operations.
Developing a skilled workforce across the value chain is essential for EPIF to maintain operational
efficiency, adapt to technological advances, and support the transition to sustainable energy. A lack of
training within supplier and contractor workforce can lead to inefficiencies, safety risks, and missed
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opportunities for innovation, directly impacting EPIF’s ability to execute its strategy and remain
competitive in a rapidly evolving energy market.
Training and skills development for value chain workers ensures a capable and efficient workforce,
improves productivity, and reduces operational risks. Failure to ensure adequate training for value chain
workers can lead to safety breaches, project delays, higher operational costs, and reputational damage for
EPIF.
By investing in comprehensive training programs targeted for supplier workers who perform work on EPIF
sites, EPIF can enhance productivity, reduce incidents, and improve long-term operational outcomes,
fostering stronger partnerships with suppliers. However, EPIF has limited control over the training and
expertise that suppliers provide to their employees.
The presence of forced or child labor in the supply chain poses severe reputational, legal, and operational
risks to EPIF. Resource extraction in regions with weak labor protections can undermine the Group’s ethical
standing and stakeholder trust. Proactively addressing these issues aligns with EPIF’s values and
compliance with international labor standards, strengthens its supply chain resilience, and supports the
Group’s strategy of sustainable and ethical energy production.
Limited visibility and oversight in EPIF’s value chain, particularly in upstream resource extraction,
increases the risk of undetected cases of forced or child labor which exploits vulnerable individuals,
undermines human rights, and damages communities.
In regard to identifying the main types of value chain workers who are or could be negatively affected by
material IROs, EPIF has taken first steps to improve an understanding of how workers with particular
characteristics are at greater risk of harm. As part of this work, EPIF will determine whether any of its
material IROs arising from impacts and dependencies on value chain workers relate to specific groups of
value chain workers.
S2-1 – Value -chain workers-related policies
EPIF outlines the expectations we have of our suppliers in relation to the treatment of their workers (and
therefore EPIF’s value chain workers) in our
Procurement Policy
Master ESG Policy
and
Code of Conduct.
Master ESG Policy,
follows the 10 principles of the United Nations Global Compact on Human Rights, labour, environment
and anticorruption and encourages our business partners to endorse the same commitment.
In our
Procurement Policy,
the International Labor Organization and outlines the requirements we have of suppliers with regard to
respecting human rights, modern slavery, freedom of association, living wages, working hours, non-
discrimination, no harassment, health & safety.
At present, EPIF engages with value chain workers indirectly as part of our supplier screening processes.
As noted in
may be considered in light of the CSDDD when applicable. EPIF has a supplier code of conduct in the form
of the
Procurement Policy,
under which forced/compulsory and child labor are addressed. Currently, EPIF
has not found there to be any incidents of human rights infringements.
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S2-2 – Engaging with value chain workers about impacts
Presently, EPIF Group only engages indirectly with our value chain workers through our suppliers. This is
done through our procurement process, which is guided by our
Procurement Policy
KYC Directive
.
The
KYC Directive
identify any potential adverse human rights impacts prior to commencement of the business relationship.
As part of our ongoing efforts to enhance our understanding of impacts and progress our sustainability
journey, EPIF is currently reviewing our policies, as detailed in
a specific Global Framework Agreement covering value chain workers.
S2-3 – Processes to remediate negative impacts and channels for value chain
workers to raise concerns
Our current channel to receive concerns or grievances is available for all, extending to any value chain
worker who may require its use. Information on Designated Persons and communication channels are
available online/EPIF websites. Information on these resources is also circulated internally in the form of
emails and is embedded in training materials. The effectiveness of the channels for reporting negative
impacts is assessed annually by the Compliance Committee, specifically by the designated individuals
responsible for collecting concerns. Further information about the protection of whistleblowers and
ensuring these channels are trusted can be found under
in
section G1-1.
S2-4 – Value -chain workers-related actions
The actions EPIF has taken to address the material IROs related to value chain workers stem from the
contractual obligations we require our suppliers to adhere to. As part of engaging with new and existing
suppliers, we conduct due diligence through our
KYC Directive
. These actions aim to prevent identified
impacts before they actualize. Currently, no actions have been taken to remedy actual IROs, as only
potential impacts and risks have been identified. While we are working to ensure these actions are fully
implemented throughout EPIF, we are not prioritizing initiatives to deliver positive impacts or pursue
financial opportunities. As noted throughout this report, our focus is on preventing and mitigating negative
impacts and risks first and foremost. The actions do not result in material incremental resources as they are
primarily of administrative nature in the procurement processes to improve visibility throughout the supply
chain.
There are no planned actions to mitigate dependencies on value chain workers; our efforts to ensure high
standards of health and safety mitigate the risks associated with unsafe working conditions. No further
material dependencies were identified in the DMA process.
We clearly communicate our expectations to suppliers throughout our working relationship, including
social issues and the treatment of workers. These actions align with the Ethical Trading Initiative (ETI) and
detail the required expectations to ensure no instances of forced or child labor within our supply chain. This
also extends to providing a working environment that meets our Health and Safety standards and local
legislation. These expectations ensure that our practices do not contribute to negative impacts on our value
chain workers.
As part of updating our procurement processes in line with our newly established procurement roadmap,
EPIF stipulates a set of minimum standards for suppliers. We aim to ensure these principles are included
by OpCos in their general contracts with suppliers. These standards and all actions we take to ensure suitable
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outcomes for value chain workers are based on best practices related to managing and preventing child and
forced labor in the supply chain, such as alignment with the
UNGP on Business and Human Rights,
the
OECD
, and the
ILO Labor Standards
and
ETI
.
As part of our updated KYC procedures, we have expanded the central questionnaire to include additional
potentially relevant questions, including those related to human rights. Individual OpCos can adjust the
questionnaire and remove any questions they do not consider relevant to their operations.
To address the potential risks and impacts associated with our value chain, we are conducting a risk mapping
of our suppliers. EPIF understands that our supply chain is not particularly complex, and our exposure to
developing countries prone to human rights violations is limited. However, there are specific areas of higher
risk, such as raw material sourcing beyond Tier 1 suppliers deeper within the supply chain. This risk
classification is primarily based on geography and industry, which supports the identification of areas with
increased risk. If actual adverse impacts were identified in our value chain, we would work to remedy such
impacts in line with international frameworks, such as
the UNGP on Business and Human Rights and
OECD
. EPIF continues to review and further formalize our due diligence process. Potential updates may
be considered in light of the upcoming CSDDD requirements.
This work also supports our alignment with the required minimum social safeguards set out in Article 8,
which must be met to achieve EU Taxonomy-aligned activities. Our efforts to ensure our supply chains are
free of forced and child labor through our updated KYC process and
Procurement policy
requirements, and we use these safeguards to guide our updates. No significant resources have been
allocated to managing the impacts associated with our value chain workers as the impacts are currently
perceived as limited.
S2-5 – Value -chain workers-related targets
EPIF has not previously set any targets related to the value chain workers-related identified IROs. The
impacts on value chain workers will continue to be monitored and if setting a target to monitor any potential
future actions is required, this will be communicated in future reporting cycles. We aim to take a proactive
approach, and based on our updated policies, we will explore ways to establish meaningful targets in future
reports.
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10 ESRS S3 - Affected communities
EPIF understands that its operations have extended reach to people and communities outside the bounds of
our operations and that we, therefore, have a responsibility to ensure the prevention and potential
remediation of any negative impacts on these communities. Furthermore, EPIF also strives to be proactive
in its community partnership efforts, and through the EPH Foundation and EP Group Foundation, we
promote initiatives, such as grant and community partnership programs.
S3.SBM-2 Interests and views of stakeholders
For full details on EPIF’s stakeholders and the ways in which we engage to understand their interests and
perspectives, refer to
In assessing the ways in which EPIF interacts with potentially affected communities, we sought to engage
with stakeholders. Typically, this engagement is conducted during local consultation, as most concerns are
oriented around legislation, such as building permits or EIAs. We also regularly engage with local
communities through the EPH Foundation (established at parent company level), whose work to strengthen
our community relations and enable positive social impact is detailed in the
section Corporate Social
Responsibility
as part of the annual report.
The main relation which communities have to EPIF’s strategy is through our license to operate when
expanding our operations in these areas. The main risk identified (but not found to be material) stems from
any potential negative impact we may have on these communities, and the associated backlash to our
reputation.
S3.SBM-3 Material IROs and their interaction with strategy and business
model
EPIF evaluated the social impacts of its value chain to identify where our operations or services contribute
to significant effects. EPIF cannot account for all possible impacts of a value chain actor under
AR16 sub-
sub-topics
influence. This includes determining the extent to which our actions enable, exacerbate, or mitigate the
identified impacts within our value chain. Affected communities arise at different parts of the value chain,
as illustrated under
all these communities that have been identified as potentially being materially impacted. EPIF identified
the most material affected communities to be those who are located around operating sites, primarily within
EPIF’s own operations, although there is the understanding that some potential impacts may arise in
upstream activities.
The impacts of these identified affected communities are relatively localized and contained to the locations
of operations; EPIF does not have any impacts through its services or product offerings. These impacts are
also related to the systemic approach of EPIF’s business, due to the nature of large-scale energy
infrastructure, as opposed to isolated and infrequent incidents.
EPIF is not dependent on affected communities in a way that creates associated risks or opportunities. The
identified potential negative impact is relevant to all communities that may be affected. Among the
communities impacted, none are Indigenous groups, as EPIF does not operate in areas where interactions
with these groups could occur. Beyond establishing that EPIF does not have any IROs related to Indigenous
peoples, there have been no further developments to understand particular characteristics which may be at
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greater risk of impacts – the primary driver of impacts on affected communities is their proximity to our
operations.
The risk EPIF has identified, but found to be immaterial, in relation to affected communities stems from
the failure to address the impact. By effectively establishing a grievance mechanism and channel for
stakeholder engagement, as well as working to track and monitor that it is effective and accessible, EPIF is
simultaneously addressing the risk. No material opportunities related to affected communities were
identified during the DMA process, and EPIF has no material risks arising from potential dependencies on
such communities.
S3-1 – Affected community-related policies
EPIF outlines in the “
Code of Conduct”
be cascaded throughout the OpCos in order to consider the potential negative impacts of affected
communities. The policy does not have any specific provisions which consider indigenous peoples, as EPIF
and our value chain does not operate in areas which interact with these communities.
The
“Code of Conduct”
instruments, with a first focus on the established guidance from the
UN Guiding Principles on Business and
Human Rights
. EPIF works to comply with these principles by continuing to monitor and assess any
potential impacts that EPIF or our OpCos may have on affected communities. This includes avoiding
causing or contributing to adverse human rights impacts, through the monitoring of our impacts.
As part of our continuous refinement of policies and procedures (see
), we are incorporating specific objectives and guidance for
OpCos who operate in these sensitive locations to conduct a further in-depth assessment of these
communities and what the specific implications of EPIF’s operations may be to fully support appropriate
engagement and if required, interventions and remediation plans.
The “
Group Code of Conduct
” currently establishes basic principles of stakeholder dialogue which
considers the needs of local communities when making business decisions. Any engagement which OpCos
may perform as a result of these requirements are expected to align with the requirements of local and
national legislation, particularly through our EIA processes, which typically occur at the point of
impact/event – such as when we are looking to expand or construct new infrastructures. This engagement
already forms part of our license to operate, and we will support our OpCos to gain the opinions and views
of these communities through town halls and open calls for input either with communities directly or an
established delegate who is able to speak on their behalf. We also consider the provision of guidance to
OpCos to ensure there are sufficient mechanisms in place for them to raise any concerns they may have
before they arise.
Our approach to providing and enabling remedies for these human rights impacts is based on this
engagement. We seek to incorporate the views of communities within our business model to the extent
feasible, allowing us to proactively head off impacts before they occur. We also aim to ensure that these
mechanisms are offered without fear of victimization (see
EPIF group does not prescribe a single method of remediation for potential human rights impacts. This is
down to the OpCos which engage directly with the affected communities and have been alerted to any
potential impacts through the aforementioned stakeholder engagement processes. EPIF Group provides the
direction on the required fundamental principles, which are aligned with the UNGP on BHR. This enables
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the EPIF group and its OpCos to handle community impacts in the best way possible and ensure the most
specific instances.
As of 2025, consistent with 2024, EPIF has had no reported cases of non-respect of human rights. If, in
future, a case of non-respect of human rights were to arise, EPIF would report in line with the requirements
of these international instruments.
Currently, EPIF Group does not have a formal process to engage with affected communities, presently
engaging directly with communities through the OpCos on an ad-hoc basis at the point of impact/event,
such as when a new infrastructure expansion is being made. This engagement is captured in our
commitment to building positive relationships with communities in the vicinity of our operations, as
detailed in our
Group Operational Policy
. As enshrined as part of this policy, the ultimate responsibility
for ensuring such dialogue is conducted sits with the Board.
As part of the work to formally establish and integrate the requirements of CSDDD, EPIF Group might
establish a formalized process which will be cascaded through our OpCos, directing those subsidiaries
which interact with affected communities most closely to consider these impacts and work to incorporate
them into future business model and strategy decisions wherever feasible.
S3-3 – Processes to remediate negative impacts and channels for affected
communities to raise concerns
EPIF Group has established dedicated channels at the OpCo as well as holding level to receive concerns or
grievances, ensuring accessibility not only for individuals protected under the whistleblowing legislation
but also for all stakeholders who may be affected by EPIF’s actions, including members of affected
communities. Further information on this can be found in the policy and under
G1-1
. This directly supports the mitigation and remediation of our
identified potential impact on freedom of expression.
S3-4 – Affected community-related actions
Ensuring affected communities are able to freely express concerns
EPIF’s most material negative impact on affected communities lies within the potential failure to provide
an adequate means of raising concerns. In order to tackle this impact, EPIF has designated its
whistleblowing channel for all external stakeholders to raise concerns. Our
operational policy
enshrines the basic principles we expect of our OpCos when engaging with affected communities. No
significant resources are required to manage this impact, as it forms part of our ongoing business strategy
and engagement processes with affected communities.
This publicly accessible grievance mechanism supplements the ongoing dialogue between OpCos and local
communities as part of regular engagement preceding any new development project. These mechanisms
help prevent and mitigate any infringements on local communities' freedom of expression prior to any new
construction or expansion of infrastructure. These actions aim to ensure that freedom of expression is
upheld in accordance with all local, national and international instruments, and prevent potential future
impacts. Any impacts related to the denial of freedom of expression are potential impacts; there have been
no known instances of EPIF contributing to this so far.
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Following the establishment of our affected community engagement process, EPIF will track and assess
this through an ongoing monitoring system. Monitoring the use of the method and how frequently it is used,
and what it is being used for will allow us to see if some changes or improvements need to be made. This
may include understanding how accessible it is, if there is sufficient information about how to use it, how
to raise concerns, and if applicable, additional guidance can be published to ensure that any individuals who
require such a channel are equipped to use it.
To identify the most appropriate actions, EPIF is aligned with international frameworks that deal with issues
and implications of freedom of expression. Given the well-understood impact of denying this freedom,
well-established mechanisms exist to remedy this, and EPIF is aligning with these. We are also committed
to incorporating the findings from any stakeholder engagement with affected communities into the actions
we take to manage potential negative impacts.
EPIF has identified the solution to denying freedom of expression is working to ensure that anyone who
wants to express themselves is given a free and accessible method through which to do so. This method is
free, easily accessible to all, and without prerequisites/ the mechanism will also be open at all times; when
there is a specific instance of our options looking to expand or construct new infrastructure, specific
engagement will address these. They are actively looking to hear from communities in these times, which
will also form part of the new due diligence process (which is in the works and ultimately aims to align
with CSDDD).
EPIF is looking to ensure its external channel to receive concerns and grievances is available and effectively
used by all. This includes making sure that the process is available in multiple languages, is clearly
signposted, is not fee-based and does not give preferential treatment to any group – aims to ensure that there
are no potential biases or discrimination within the channel; the effectiveness of these methods will be
assessed on an ongoing basis, by monitoring the use of the channels, and asking those who use it how they
found the process – incorporating this feedback further to ensure that it is as user-friendly and accessible as
possible.
EPIF is looking to reaffirm internally, through awareness campaigns with operating companies, the
importance of enabling effective engagement with communities impacted by our operations and that the
EPIF policy is to ensure that individuals or community groups who express concerns about environmental
or human rights impacts will not face intimidation or retaliation. No significant resources have been
allocated to manage this impact; the management of the impact forms part of our ongoing strategy without
the need for further resources.
There are no further human rights issues connected with affected communities which have been identified.
The work that EPIF is undertaking to establish the grievance mechanism process is part of our ongoing
work to further improve our stakeholder engagement and align ultimately with CSDDD in time.
Communication and compliance with environmental regulations
When it comes to communicating with local communities and managing potential impacts on them,
companies in our Group operate in full compliance with strict national and EU environmental legislation.
In many cases, projects are subject to the Environmental Impact Assessment (EIA) process - a formal
procedure designed to identify, assess, and minimize potential environmental and social impacts before any
project begins.
The EIA process includes a thorough analysis of environmental aspects such as air quality, noise, water,
soil, biodiversity, and potential effects on local communities. It also involves public consultations, allowing
residents and stakeholders to express their views and contribute to decision-making. Based on the findings,
specific mitigation measures may be required to ensure the protection of people and the environment.
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In many instances, however, additional measures are not necessary, as the majority of company’s projects
are carried out on existing industrial sites or in locations situated at a sufficient distance from residential
areas, resulting in only limited environmental and social impact. Where measures are needed, they are
clearly defined by the EIA process itself, and the company ensures full implementation.
Nevertheless, some companies go beyond these legal requirements, proactively taking additional steps to
further reduce potential impacts and strengthen positive relations with local communities. Some selected
examples of such actions can be found in the following section.
SPPD
As part of its broader commitment to social responsibility and community development, SPPD has launched
several initiatives aimed at supporting municipalities, educating the public, and improving customer
experience.
Through a dedicated grant program, towns and municipalities that have been negatively affected by gas
pipeline reconstruction projects in recent years receive financial support from a special fund. These funds
are used not only to restore public areas to their original state, but to further enhance them. For example,
by adding bike racks, benches, and green spaces that improve the quality of life for local residents.
In parallel, SPPD invests in environmental education and public outreach. More than 200 schools have
received educational packages focused on energy, sustainability, and safety topics, helping to raise
awareness among younger generations while promoting the company’s values.
The company also engages the wider public through digital innovation. A mobile application enables
customers with low gas consumption to submit their meter readings online, eliminating the need for in-
person visits. Additionally, the company runs public awareness campaigns on gas safety and environmental
responsibility, including practical materials such as refrigerator magnets with emergency contact numbers
for the gas network operator.
NAFTA
Nafta represents another example of taking voluntary steps beyond legal requirements to strengthen trust
with local communities in connection with natural gas drilling.
In the Trnava region, where extraction of natural gas has been safely carried out for decades, concerns arose
when activist groups shared foreign videos showing explosions and accidents connected to drilling. To
address public fears, Nafta launched an information campaign, including community meetings and a
microsite creation with educational videos and a Q&A section explaining how drilling is performed safely
and responsibly. Within a short time, residents regained confidence that the operations posed no danger to
people or the environment. The success of this communication campaign has been highlighted by
nominations for several awards.
Operationally, the impact on communities is temporary. A drilling phase lasting one to two months may
cause increased noise, the company builds temporary access roads to protect nature and removes them once
drilling is complete. If presence of hydrocarbons is not confirmed after drilling the well, Nafta converts it
into water wells providing high-quality groundwater for local communities.
Through open communication and responsible land management, Nafta has shown how trust and
transparency can turn industrial activity into long-term community value. To address concerns of residents,
Nafta operates a 24/7 hotline.
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In addition, Nafta also provides financial support to municipalities that promote green activities, youth
education, and other local activities such as Earth Day, during which employees volunteer and help clean
up polluted natural areas.
S3-5 – Affected community-related targets
EPIF has not previously collected any metrics related to affected communities and as such, has not set any
targets related to the identified IROs. The impact on affected communities will continue to be monitored
and if setting a target to monitor any potential future actions is required, this will be communicated in future
reporting cycles. We aim to take a proactive approach, and based on our updated policies, we will explore
ways to establish meaningful targets in future reports.
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11 ESRS S4 - Consumers and end-users
EPIF’s energy supply reliability and affordability directly impact residential, industrial, and governmental
users. Energy disruptions or limited access to reliable power sources harm economic development and
public trust, particularly in regions where EPIF is a major or monopoly energy provider. We understand
our leading role in the supply and distribution of power, gas and heat. We work hard to ensure that we
reliably meet customer demand with quality products and services.
Resilience is key to ensuring that energy is provided securely and stably during the transition from
traditional fossil fuels to clean, renewable power. EPIF is committed to mitigating any potential disruptions
in the provision of this essential commodity. To achieve this, we focus on retrofitting distribution
infrastructure, particularly gas pipelines, ensuring that we can continue to supply energy to people in all its
forms.
EPIF works to maintain our current business operations while continuing to divest from coal-powered
enterprises. Our goal is to reduce our reliance on coal while still serving a similar demographic and purpose,
ensuring that reliable energy is available for all, with or without fossil fuels.
In light of the recently published
Clean Industrial Deal (CID)
its pivotal role in supporting this transition. Access to affordable energy is a cornerstone of the CID and is
fundamental to our business strategy. By upgrading existing grid infrastructure and investing in retrofitting
and other initiatives, EPIF aligns itself with EU ambitions for a hydrogen economy. At the same time, we
prioritize the needs of everyday energy users, ensuring that the stability and security of energy supply are
maintained.
EPIF not only ensures compliance with regulations, but we aim to go beyond the imposed standards. We
do this by taking the time to understand our customers’ demands and provide affordable access to basic
services accordingly. EPIF is committed to regularly implementing and improving our products and
services. Our goal is to offer a viable option for all. EPIF strives to ensure affordable access to modern
energy, uphold sustainable consumption patterns and promote inclusive societies. This is accomplished
through our continuous interactions with customers.
As operators of key infrastructure for transmission, storage and distribution of gas and distribution of
electricity and heat, EPIF is well aware of our duty to ensure reliable supply of basic commodities,
particularly in distribution segments, through which we deliver them to nearly 2.5 million end consumers.
S4.SBM-2 Interests and views of stakeholders
For full details on EPIF’s stakeholders and the ways in which we engage to understand their interests and
perspectives, refer to
In assessing the ways in which EPIF interacts with consumers and end users, we sought to engage with
stakeholders. As part of the requirements of EPIF as a major energy provider, we also engage closely with
regulators and policymakers to ensure that our consumers and end-users are provided with a high quality
and fair service. OpCos with direct contractual relationships with consumers maintain open communication,
providing transparent information about issues such as energy pricing and access to our services. We engage
with consumers to understand their needs, particularly in relation to the energy transition.
We understand that without understanding these considerations, EPIF may undermine our own success if
consumers decide to take their business elsewhere. There have not been any amendments to our overall
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Table 67 Power, gas, and heat distribution offtake points
Table 68 Power supply customers
Table 69 Gas supply customers
business strategy in light of consumer views from this round of engagement, as no issues materialized which
have not already been considered and integrated.
S4.SBM-3 Material IROs and their interaction with strategy and business
model
All consumers EPIF has direct interactions with have been considered within the scope of both the DMA
and IRO identification process, as well as within the scope of this report. There are only a few OpCos which
have direct interactions with consumers as a customer-facing business model, compared to other OpCos
which deal in business-to-business sales.
Power and gas distribution network operators are responsible for
delivery up to the offtake point, without having the direct contractual relationship with the end consumer
which is held by the retail supplier.
# | 2021 | 2022 | 2023 | 2024 | 2025 | % 25/24 |
Heat | 151,015 | 151,984 | 153,126 | 153,759 | 154,757 | 1% |
Power | 773,177 | 779,661 | 785,092 | 791,297 | 796,443 | 1% |
Gas | 1,532,104 | 1,526,057 | 1,523,977 | 1,518,662 | 1,511,084 | (0%) |
Total | 2,456,296 | 2,457,702 | 2,462,195 | 2,463,718 | 2,462,284 | (0%) |
# | 2021 | 2022 | 2023 | 2024 | 2025 | % 25/24 |
Residential | 672,288 | 683,213 | 695,691 | 704,054 | 675,734 | (4%) |
Mid-size | 63,486 | 65,519 | 59,624 | 68,520 | 120,597 | 76% |
Large | 22,565 | 23,114 | 23,217 | 14,485 | 13,882 | (4%) |
Total | 758,339 | 771,846 | 778,532 | 787,059 | 810,214 | 3% |
# | 2021 | 2022 | 2023 | 2024 | 2025 | % 25/24 |
Residential | 88,492 | 90,383 | 108,840 | 96,937 | 95,751 | (1%) |
Mid-size | 5,200 | 5,339 | 7,698 | 6,468 | 15,191 | >100% |
Large | 629 | 490 | 418 | 385 | 633 | 64% |
Total | 94,321 | 96,212 | 116,956 | 103,790 | 111,575 | 8% |
EPIF group has identified these direct consumers of EPIF’s energy to be the only type of consumers to face
a material impact; this impact arises as the consumers are dependent on the reliable and secure energy
services which EPIF provides. EPIF’s direct consumers are potentially impacted by a failure to ensure this
service is provided reliably and securely; EPIF also understands that these impacts are heightened for those
who are vulnerable or financially disadvantaged. These consumers were identified as part of the overall
DMA process, but no in-depth investigations into the specifics of consumers at a potentially heightened
impact were conducted.
S4-1 – Consumer-related policies
To ensure that EPIF Group and our OpCos strive to provide our customers with the highest quality products
and services, we outline our expectations in the “
Code of Conduct
” policy. It outlines Group-level
expectations for ethical and transparent business conduct with our customers. We have created clear and
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easily accessible communication channels for our customers because we place great importance on
providing exceptional service.
The
Master ESG Policy
instruments, with a first focus on the established guidance from the UN Guiding Principles on Business and
Human Rights. This includes working to ensure that EPIF Group and our OpCos respect our consumers'
overall human rights and that any processes for engagement and grievance mechanisms are aligned with
these principles.
Within our
Group Operational Policy
, we acknowledge the impact our products may have on consumers,
and work to improve them by developing business models that contribute to local social development and
seek to improve people’s quality of life.
As of this reporting cycle, there have been no known incidents of non-respect of human rights as they relate
to consumers. This will be monitored and reported in compliance with ESRS if such an incident were to
occur.
We are ensuring that our policies (see
) address the impacts related to consumers and end users which were identified as part of our DMA
process.
S4-2 – Engaging with consumers about impacts
Given the varying nature of EPIF businesses, there is no centralized procedure to engage with consumers
about the impacts they may face through interactions with EPIF. Instead, we prioritize ensuring that the
channels to raise concerns from consumers established at OpCo level are of the highest standard, working
to ensure they are easily accessible for all who may need to use them. This form of open communication,
intended to support customers and solve their needs, is enshrined within the principles of our “
Code of
Conduct”.
This form of communication is not bound to any timeframe or regular frequency; instead, it remains open
to those who need it whenever required. As this forms part of our
Code of Conduct
, the ultimate operational
responsibility sits with the EPIF Board, and where it is feasible to do so, these insights then are considered
in relation to EPIF’s business strategy. At present, there are no methods of assessing the effectiveness of
this engagement. Ensuring there are clear channels for all consumers to raise concerns enables EPIF Group
to gain valuable insights about consumers and their perceived impacts. EPIF can then work to address any
impacts raised, without the need to establish a new engagement process.
S4-3 – Processes to remediate negative impacts and channels for consumers to
raise concerns
As outlined in our “
Code of Conduc
t”, we have set out requirements for OpCos to ensure there are clear
communication channels which are easily accessible to all customers. We have created clear and easily
accessible communication channels for our customers because we place great importance on providing
exceptional service.
The general approach to providing a remedy for the material impact is to ensure that EPIF operates to the
best of its ability and through our efforts to future-proof our business. This has been demonstrated through
our commitment to phasing out coal and putting an emphasis on renewable energy. This ensures the stability
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of EPIF as a business and allows us to diversify our portfolio of energy sources more securely to deliver
energy as we are not solely dependent on one commodity.
In addition to these business-specific channels, EPIF provides its own channel, available on our website,
and accessible to anyone who may need to use it to raise a concern they have about the service that EPIF
provides. This is monitored by EPIF and is not a third-party mechanism.
This channel is related to EPIF and its direct consumers, although we welcome anyone to provide feedback
through these channels – they are open forums of communication which are available to all. We strive to
ensure that everyone feels capable of raising concerns without fear of retaliation.
Issues raised and addressed are tracked and effectiveness of channels is ensured. We work to ensure that
the channels are easily accessible and monitor this through the number of messages we receive. For further
information on these channels, refer to
in section
G1-1
.
S4-4 – Consumer-related actions
Energy is essential for a country’s economic and social development, as well as for facilitating and
enriching people’s daily lives in the modern world. We focus on using new technologies and implementing
projects that will help provide access to basic services for the communities in which we operate. In
compliance with state regulations, we always offer our customers reasonable prices.
As operators of key infrastructure for transmission, storage and distribution of gas, and distribution of
electricity and heat, we are aware of our duty to ensure reliable supply of basic commodities. In our gas,
power, and heat distribution segments, we deliver basic commodities to nearly 2.5 million end consumers.
Through our subsidiaries Stredoslovenská energetika, EP Energy Trading, and Dobrá Energie, we supply
electricity and gas to more than 800 thousand residential as well as industrial customers in Slovakia and the
Czech Republic. Across all our residential supply operations, we strongly refuse to engage in any aggressive
sales tactics to enhance customer retention or acquisition. EPIF works to support the relevant local
legislation which further mitigates these impacts.
To ensure there are no significant negative impacts on EPIF’s consumers, it is crucial that EPIF operates at
its best, working toward the long-term sustainability and viability of our operations.
So far, the identified potential negative impact has not materialized, and as a result, no remedial actions
have been necessary. This means that for this reporting cycle, we do not have a method in place to track the
effectiveness of any actions taken. Additionally, there is no standardized approach to identify which actions
are needed, but as part of our long-term sustainability plan, we will consider ways in which a standardized
approach to identifying and remedying actions can be established.
EPIF does not have significant opportunities related to consumers and end-users and has not identified any
material risks. If functioning as intended, EPIF’s business operations do not result in major negative
impacts. EPIF maintains a clear policy against aggressive marketing tactics.
No severe human rights issues or incidents have been identified in connection with consumers and end
users. EPIF works to ensure that all consumers have a clear method of reporting concerns and raising issues,
which further ensures other human rights impacts are not infringed upon. Additionally, within our
Master
ESG Policy
labor, environment and anticorruption, which extends to our expectations as they relate to our consumers
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and end-users. No significant resources have been allocated to manage this impact; the management of the
impact forms part of our ongoing strategy without the need for further resources.
As well as working to ensure that EPIF continues to supply reliable and affordable energy to its customers,
we also work to promote energy efficiency through our customer energy efficiency programs, enabling
consumers to purchase “green energy” and supporting a transition to net zero at all levels.
The service EPIF provides to its consumers is not exclusively limited to the supply or distribution of our
commodities (gas, power and heat). We understand that it is equally important to provide sustainable
products along with energy savings in order to achieve EPIF’s decarbonization goals.
Customer programs are an effective way for the Group to strengthen its ties with consumers and the
surrounding communities. The positive response to these programs reinforces EPIF’s commitments to their
further development and implementation.
Stredoslovenská energetika
At Stredoslovenská energetika, we are dedicated to building our online communication through our
Hints
and Tips
webpage. This page provides our customers and communities with energy efficiency and energy-
related advice. On our webpage, customers receive practical advice on how to reduce energy consumption
quickly and effectively within their homes. They can also learn about other household energy tips, such as
the most affordable rates for their homes, how much their electrical appliances consume and the difference
between modern LEDs and classical incandescent bulbs.
Our online program is enriched with Search engine optimization (SEO) content series. They include various
article topics, such as the advantages and disadvantages of electrical and gas hobs in Slovakian homes or
methods on how to responsibly prepare for the heating season. Overall, we find that our customers show
greater interest in renewable sources, along with tips on how to further reduce electricity and gas
consumption.
In addition to further educating households in Slovakia about energy efficiency, Stredoslovenská energetika
offers certified “green energy” to customers. This relates to electricity that is guaranteed to have been
produced free from emissions and adverse environmental impacts, as it is sourced from renewable energy
such as water, wind, solar or biomass. By purchasing “green energy” from Stredoslovenská energetika,
customers can support the development of renewable sources in Slovakia as proved by a certificate
guaranteeing the origin of electricity.
Stredoslovenská distribučná
At SSD, we are committed to helping our customers save energy and money. That is why we continue to
deploy smart meters, giving households and businesses the tools they need to better understand and
optimize their energy use. Smart meters represent a major step forward in how energy is measured and
managed. Unlike traditional meters, they provide detailed, real-time data, making it easier to track
consumption patterns and adjust habits accordingly. For customers, this means not only financial savings
but also greater awareness and confidence in how they use energy. By bringing more transparency and
control, these devices support smarter consumption and lower costs.
EP Energy Trading
At EPET, we believe that true value for our customers goes beyond simply supplying energy, but it is about
empowering them to use it smarter. That is why we invest in publishing a rich collection of articles, studies
Annual Financial Report for the year 2025 – Section X.
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and practical tips aimed at helping households and businesses reduce consumption, optimize efficiency,
and make informed decisions.
Through our online portal, we regularly share insights on how to lower energy use and stay up to date with
the latest trends in the energy sector. Complex energy topics are translated into clear, actionable advice that
customers can easily apply in their everyday lives, helping them to see real savings.
In addition, EPET conducts its own surveys and studies to better understand consumer habits and highlight
opportunities for greater efficiency. By publishing these findings, we provide customers with reliable data
and transparent insights, supporting them on their journey towards smarter, more responsible energy use.
S4-5 – Consumer-related targets
EPIF has not currently set any targets to ensure energy security and reliability. The impact on consumers
and end-users will continue to be monitored and if setting a target to monitor any potential future actions
is required, this will be communicated in the future reporting cycles. We aim to take a proactive approach
and we will explore ways to establish meaningful targets in future reports.
Annual Financial Report for the year 2025 – Section X.
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Governance section
Annual Financial Report for the year 2025 – Section X.
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181
12 ESRS G1 - Business conduct
We have built our business on moral principles and values, and we continue to ensure that they are
effectively promoted throughout the Group. It is imperative that we unify our business approach across the
Group, which we support with a shared culture, internal policies, and strong governance.
EPIF is committed to strong behavioral standards, which bring practical value to our day-to-day business.
These standards set employee expectations, which are reflected in the performance and reputation of the
Group and ensure that we maintain good relationships with our stakeholders. EPIF maintains high ethical
standards throughout its operations and supply chain, and we do not tolerate corruption or inappropriate
behavior.
The Group is committed to conducting business activities in a transparent and operationally excellent
manner. To continue developing and improving our internal and external interactions, we commit to
following our principles, which are the foundation on which we build relationships with our partners,
employees, and society.
The Group generally follows a zero-incidents objective, no specific targets in this area were set. Metrics
are used to assess the effectiveness of our actions. The actions are currently considered sufficient and no
additional actions are planned for the following years with no further resources planned to be allocated.
G1.GOV-1 The role of the administrative, supervisory and management bodies
EPIF takes its responsibility to operate as a sustainable business with great importance and believes that
everyone has a role to play in maintaining and upholding the highest standards of business conduct. We
have established positions within our Board and executive leadership which are accountable for this
conduct. Gary Mazzotti, EPIF CEO and Vice Chairman of the Board of Directors, has assumed the role of
ESG Officer, allocating responsibility to sustainability and the Group’s sustainability agenda.
Accountability for EPIF’s business conduct and the way in which we operate ultimately falls under this
position, but is cascaded through our management committees, our OpCos, right through to our individual
employees.
The Compliance Committee is situated at EPH Group-level and is responsible for the preparation and
review of central policies, the whistleblowing system, the Know Your Customer (KYC) program and assists
on other business conduct matters as appropriate. Further, the Compliance Committee works to ensure
compliance with legislation and addresses issues of non-compliance and provides support for incidences.
The Compliance Committee oversees these activities together with the ESG Officer, and is assisted in all
business conduct matters by the Group ESG department. EPIF, as a subsidiary of the EPH Group, has not
established a separate compliance committee, instead relying on this centralized resource to ensure
transparency and consistency across the approach to managing business conduct issues. EPIF has
established its own policies, which are aligned with the policies established by the EPH Group.
These committees, with the support of the Group ESG department and overview from the Board, are well
positioned to tackle such matters, thanks to their expertise in the area of business conduct.
Gary Mazzotti has more than 30 years of experience in finance and operations. Before joining EPIF, Mr.
Mazzotti was a member of the Board of Vienna Insurance Group, CFO of Kooperativa and Česká
podnikatelská pojišťovna, and was responsible for VIG Group’s operations in Ukraine. He previously held
the positions of Senior Investment Director and CFO of PPF Private Equity Division. He has been active
Annual Financial Report for the year 2025 – Section X.
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in the energy sector since 2016 and serves as the primary point of contact for bondholders and banks. He is
responsible for ensuring that EPIF's decarbonization strategy aligns with their expectations.
Members of the Compliance Committee were invited to join the committee based on their skills and
expertise in legislation and compliance, as well as their understanding of EPIF’s business operations and
conduct.
G1.IRO-1 Identifying business conduct related IROs
EPIF has screened assets and activities to identify actual and potential IROs in its own operations and its
upstream and downstream value chain. Ensuring that EPIF’s operations are conducted in a responsible and
ethical manner is already a central part of our strategy; within the DMA process we found sustainability
matters relating to political engagement and addressing anti-bribery and corruption incidents and ensuring
the protection of whistleblowers to be most material for EPIF within this area. Further detail on the
methodology used can be found
.
EPIF has engaged key stakeholders in matters relating to business conduct. Full details of our stakeholder
engagement process can be found
G1-1 – Business conduct policies and corporate culture
To ensure that EPIF’s business operations are conducted in the manner we expect, we have outlined our
requirements within our
EPIF Master ESG Policy
,
Anti-Corruption and Anti-Bribery Policy
,
EPIF Code
of Conduct
,
Reporting of Serious Concerns and Whistleblowing
, as well as the
EPIF Operational Policy
.
Our
Anti-Corruption and Anti-Bribery Policy
Corruption. Further information about our approach to Anti-Corruption and Anti-Bribery can be found
under
In line with expected regulations under the upcoming CSDDD, EPIF may update the
Procurement Policy
and
KYC Directive
crime, anti-trust law, sanctions, and human rights.
Our policies on other business conduct matters (Tax Governance, Anti-Trust Law, Asset-Integrity, and
Cybersecurity) remain unchanged, as they were not identified as material sustainability matters through the
DMA process. They are subject to the same level of rigorous assessment and Board accountability as all
policies, and are readily available to any stakeholder who may need it, through our internal communication
channels with OpCos and through our website.
Corporate Culture
EPIF's core values are based on a healthy and safe working environment. Our corporate culture is set by
our Board and is cascaded through our OpCos. Due to the diversity of EPIF’s OpCos, each OpCo further
defines their corporate culture, as well as the measures and actions taken to establish, develop, promote and
evaluate their cultural values. Activities may include special programs for managers, online trainings, the
inclusion of corporate values in the employee's performance evaluation and questionnaires for evaluating
employee’s perception of the corporate culture.
The corporate culture as defined by individual OpCos is evaluated at this level. In 2025, we have taken first
steps to steer OpCos in Group-wide evaluation via employee surveys. The outcomes of such an evaluation
will be reported back to the Group as part of the regularly established sustainability updates.
Annual Financial Report for the year 2025 – Section X.
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Reporting of serious concerns and whistleblowers
To ensure that any unlawful behavior, or behavior which is in direct conflict with the established Code of
Conduct and business conduct policies, is properly addressed, EPIF has established a Reporting of Serious
Concerns and Whistleblowing mechanism which encourages any employee to report on any concerns they
may have.
Within the
Reporting of Serious Concerns and Whistleblowing Policy,
compliance with the national requirements of the Directive where this enforces measures outside the scope
expected of EPIF’s policy. This policy amends the
Whistleblower policy
by the group-wide internal whistleblowing system introduced in 2023. The policy also incorporates the
procedures presented in the International Chamber of Commerce (ICC) Guidelines on Whistleblowing.
This system encourages reporting of concerns regarding violation of applicable laws, EPIF policies and
internal regulations by offering confidentiality to ensure that individuals do not fear retaliation for reporting
their concern. EPIF Group complies with the Czech Whistleblowing Act, the national transposition of
Directive (EU) 2019/1937
Reports can encompass a range of issues, from infringements that have already occurred to those that are
anticipated, promoting a proactive approach to compliance and ethical conduct within the Group. The
internal whistleblowing system is intended for all persons who perform activities for EPIF, including
employees, job applicants, contractors, business partners, employees of business partners and others.
The process for reporting is structured to encourage thoroughness, requiring individuals to fill out a detailed
form with as much information as possible. Upon submission, the report is handled by a designated,
authorized person, and the whistleblower is informed of receipt within seven days, along with a unique case
number and verification code. This code allows for ongoing communication and follow-up, ensuring that
the whistleblower is kept informed of the progress and outcomes of their report. The initial assessment of
the report aims to determine its alignment with the Whistleblower Protection Act and if remedial action is
necessary, with feedback provided within a specified timeframe. Depending on the severity of the reported
concerns different follow-up actions are taken. A person is designated to lead the investigation, involving
external bodies if needed.
The Compliance Committee addresses any raised allegations or incidents of corruption and bribery and
includes if necessary EPIF's board to decide on appropriate follow-up actions. The Compliance Officer
responsible for the raised case is located at group-level and separate to the management of OpCos. Division
of powers and responsibilities according to the Policy among EPIF’s departments and bodies is set in its
internal processes and rules of operations in line with the “four eyes principle”. In the absence of such
division of powers and responsibilities, the Human Resources Department is accountable for receiving,
initiating, and investigating all reported concerns in accordance with the Policy procedure. Other
departments or bodies in EPIF may be included in the investigation process based on the relevance and
EPIF’s internal processes and rules of operations.
EPIF's employees are informed about the Whistleblower system in place. The Compliance Committee is
responsible for the Whistleblowing system and is managing the complaints, and received training upon its
establishment.
G1-2 – Management of relationships with suppliers
Supply chain management is an integral part of EPIF’s business; without establishing a collaborative
partnership with our suppliers, we are unable to operate with the high standards we have come to expect.
We therefore continuously reflect on our long-term targets so that we may create and maintain meaningful
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184
partnerships within our supply chain. We have determined that regular monitoring and close management
of our end-to-end processes will only benefit our business value.
EPIF’s procurement goals consider the social and environmental aspects of our individual subsidiaries and
how decisions at a Group level can affect their business practices. The procurement function is managed
by EPIF Group Procurement, whose key role is to develop and apply best practices across the supply chain
of the entire Group. Their aim is to minimize the total cost of ownership of external purchases within our
OpCos, thereby facilitating strategic procurement.
In 2020, we introduced, approved, and implemented an extended
Procurement Policy
in an effort to
improve our previous policies and processes, as we understand the risk associated with a mismanaged
supply chain. In 2025, the policy was supplemented with implementation guidance for OpCos to formalize
their risk assessment of suppliers.
To ensure full alignment with our business approaches, we thoroughly screen all our potential suppliers.
Screening includes our commitments to laws and regulations, ethical business conduct, human rights and
working conditions, health and safety, and environmental protection.
In 2021, EPIF implemented a
KYC Directive
,
which provides acceptance guidelines for all business
partners, including suppliers. Since the implementation, we continue to experience the benefits of the
Directive. It effectively verifies and validates the identity and suitability of business partners, mitigates
financial and reputational risk, and ensures regulatory compliance. In 2025, the KYC questionnaire for
suppliers was expanded to enhance focus on human rights, health & safety of their employees, as well as
environmental impacts.
Key tenders from across the EPIF Group are publicly disclosed on the web page of EPIF’s parent company
EPH, which has led to increased supplier participation and transparency. In 2025, there were no significant
changes to EPIF’s supply chain. Additionally, there were no reported incidents in the supply chain in this
year.
Using the
Procurement Policy
KYC Directive
approach to our due diligence, which will account for the requirements set out within
CSDDD
strengthen our approach to supply chain management.
At present, EPIF does not have an established centralized policy to prevent late payments to suppliers of
any size.
G1-3 – Procedures to address corruption or bribery
EPIF's measures to prevent, detect and address allegations or incidents of corruption and bribery are guided
by Anti-Corruption
and
incidents, including the “four-eyes principle” and the Whistleblowing System that collects any allegations
or incidents. The Compliance Committee is addressing any allegations raised or incidents of corruption and
bribery and, when necessary, involves EPIF's Board to decide on appropriate follow-up actions. All reported
instances of corruption and bribery are investigated by designated persons who are independent of those
involved in the reported case. The designated persons are also separate from the management responsible
for prevention and detection of corruption and bribery.
The
Anti-Corruption
Anti-Bribery Policy
to corruption and bribery, embedding basic principles of ethical conduct, ensuring continuous monitoring
Annual Financial Report for the year 2025 – Section X.
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and review, providing clear guidelines on raising concerns, and detailing consequences for breaches of the
policy.
To combat corruption and bribery risks, EPIF conducts regular risk assessments to understand its exposure
and adopts adequate measures that are continuously refined. The basic principles of the
Anti-Corruption
and
adhere to the “four-eyes principle”, ensuring all legally binding documents and money transfers are
approved by at least two representatives, which helps to prevent unilateral decisions that could potentially
involve corrupt practices. The Policy outlaws facilitation payments, regardless of local customs, to uphold
our stance against corruption. Regarding gifts and hospitality, the Policy mandates these must fall within
customary business practices and not be intended to influence business decisions, with a clear maximum
value established to guide appropriateness. Political contributions are avoided to prevent any implication
of attempting to gain improper business advantages, while charitable contributions are scrutinized to ensure
they do not serve as a facade for bribery.
The Policy also requires employees to avoid any conflicts of interest, promoting transparency and the
prioritization of EPIF’s interests in all business decisions. Internal control systems and procedures are
audited regularly to counter bribery and corruption, maintaining the integrity of EPIF's operations.
Employees and business partners are also encouraged to report any suspicions of bribery, corruption, or
policy breaches as early as possible. Violations of the Policy may lead to disciplinary actions, including
termination of employment, claims for damages, and criminal prosecution. The
Anti-Corruption
and
Bribery Policy
is communicated throughout the Group and is accessible to every employee. All employees
(regardless of the function) are obliged to receive the same training on bribery & corruption, including
senior managers. The form of the training is up to our OpCos, and EPIF hosts e-learning once a year for the
holding employees.
EPIF's OpCos have their own training plan implemented based on their operation's needs. The target
audience, frequency and depth of coverage is subject to the OpCos decision. In 2025, EPIF developed a
group-wide training guidance to implement group-wide common training requirements. The functions that
are most at risk in respect of corruption and bribery depend on the operating environment of OpCos.
Identification of at-risk functions is the responsibility of OpCos, whereby EPIF requires to always include
senior management among these functions. Other common at risk-functions include members of sales and
procurement departments and, in some instances, front office employees. EPIF has recently implemented a
new metric to track the coverage of at-risk functions with targeted annual training and will consider its
disclosure once data are available. In response, OpCos have begun identifying these at-risk functions and
are initiating targeted training programs. Under EPIF's guidance, this more in-depth training will be
mandatory for members of administrative, management, and supervisory bodies. Meanwhile, all employees
were covered by the basic anti-corruption and anti-bribery training which will remain compulsory for all
employees.
G1-4 – Incidents of corruption or bribery
EPIF takes incidents of corruption and bribery seriously, and we work to ensure these incidents are
minimized to the fullest extent.
For the reporting years 2024 and 2025, EPIF recorded zero convictions for violations of anti-corruption and
anti-bribery laws. As a result, EPIF incurred no fines related to violations of anti-corruption and anti-bribery
laws.
83
Annual Financial Report for the year 2025 – Section X.
Consolidated Sustainability Statement
186
G1-5 – Political influence and lobbying activities
Transparent, proactive engagement in favor of clean energy policies and just transition can enhance EPIF’s
reputation, foster stakeholder trust, and align the company with long-term sustainability goals. Responsible
engagement can support fair policies and energy access. Shaping the future regulatory environment which
is more conducive to implementation of decarbonization projects is a real business opportunity.
As part of our commitment to upholding the highest standards of business conduct, EPIF ensures that our
funding is transparently managed, that it does not support any illegal or unethical activities, and that it is
aligned with our sustainability commitments. We consider ourselves responsible investors, choosing to not
support political parties, neither directly nor through the funding of other Groups’ activities. We actively
participate in discussions with governments and organizations regarding the development of proposed
legislation and regulations that affect our business.
For the financial years 2024 and 2025, EPIF did not make any financial or in-kind political contributions
to any political party, either directly or indirectly. There have been no appointments to management
positions made in the last year by individuals who held comparable positions in public office. Membership
to the Czech Chamber of Commerce is voluntary. EPIF holding company is not directly a member of the
local chambers. The subsidiaries of EPIF are frequently members of regional chambers of commerce
established at the regional or district level.
EPH, EPIF’s parent company, is registered on its local transparency register; the EU Transparency Register,
registration number
563139795101-61
, and renewed its registration on 12/12/2025. A member of the Board
of Directors holds the legal responsibility for this registration and associated matters, though oversight of
the matters which EPIF is involved in, and the interactions with our business strategy sits with the Board
as a whole. In addition, EPIF subsidiaries might pursue separate lobbying activities, reflecting their sectoral
exposure and also complying with the unbundling requirements.
EPIF holds representative interest at national, regional and local, and European levels. The main EU
legislative proposals and policies which EPIF targets are around European legislation in the energy sector,
which includes
Strategy 2050;
Energy Union; European Green Deal, Climate law and consecutive
legislation; energy efficiency; renewables, internal energy market; energy infrastructure, CEF and network
codes; Just Transition; EU Battery value chain; Hydrogen value chain; European environmental
legislation; ETS system revision/ MSR; European legislation in the area of public procurement; EU
competition law; and European Sustainable finance legislation.
As part of our lobbying activities, we are members of the following associations, networks and other bodies
through our OpCos:
European Network of Transmission System Operators for Gas; H2eart for Europe;
European Hydrogen Backbone; H2EU+Store; Central European Hydrogen Corridor; Ready4H2; Gas
Infrastructure Europe; Association for District Heating of the Czech Republic
.
Annual Financial Report for the year 2025 – Section X.
Consolidated Sustainability Statement
187
13 Annex
ESRS INDEX
ESRS 2 IRO-2 Disclosure Requirements complied with in preparing the sustainability statement,
following the outcome of the materiality assessment.
Disclosure requirement | Comment | Page in sustainability statement | Incorporation by reference |
ESRS 2 – General disclosures | |||
2-BP-1 – General basis for preparation of sustainability statement | |||
2-BP-2 – Disclosures in relation to specific circumstances | |||
Governance | |||
2-GOV-1 – The role of the administrative, management and supervisory bodies | |||
2-GOV-2 – Information provided to and sustainability matters addressed by the undertaking’s administrative, management and supervisory bodies | |||
2-GOV-3 – Integration of sustainability-related performance in incentive schemes | |||
2-GOV-4 – Statement on due diligence | |||
2-GOV-5 – Risk management and internal controls over sustainability reporting | |||
Strategy | |||
2-SBM-1 – Strategy, business model and value chain | Management report - Business segments overview | ||
2-SBM-2 – Interests and views of stakeholders | |||
2-SBM-3 – Material IROs and their interaction with strategy and business model | |||
Impact, Risk and Opportunity management | |||
2-IRO-1 – Description of the processes to identify and assess material IROs | |||
2-IRO-2 – Disclosure Requirements in ESRS covered by the undertaking’s sustainability statement | |||
Policies MDR-P – Policies adopted to manage material sustainability matters | |||
Actions MDR- A – Actions and resources in relation to material sustainability matters | |||
Metrics MDR-M – Metrics in relation to sustainability matters |
Annual Financial Report for the year 2025 – Section X.
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188
Targets MDR-T – Tracking actions through targets | |||
Topical standards | |||
ESRS E1- Climate change | |||
GOV-3 - Integration of sustainability-related performance in incentive schemes | |||
E1-1 – Transition plan for climate change mitigation | |||
SBM-3 Material IROs and their interaction with strategy and business model | |||
IRO-1 Description of the processes to identify and assess material climate-related IROs | |||
E1-2 – Policies related to change mitigation and adaptation | |||
E1-3 – Actions and resources in relation to climate change policies | |||
E1-4 – Targets related to climate change mitigation and adaptation | |||
E1-5 – Energy consumption and mix | |||
E1-6 – Gross Scopes 1, 2, 3 and Total GHG emissions | |||
E1-7 – GHG removals and GHG mitigation projects financed through carbon credits | Not material | ||
E1-8 – Internal carbon pricing | Not material | ||
E1-9 – Anticipated financial effects from material physical and transition risks and potential climate-related opportunities | |||
Policies MDR-P – Policies adopted to manage material sustainability matters | |||
Actions MDR- A – Actions and resources in relation to material sustainability matters | |||
Metrics MDR-M – Metrics in relation to sustainability matters | |||
Targets MDR-T – Tracking actions through targets | |||
ESRS E2 - Pollution | |||
IRO-1 Description of processes to identify and assess material Pollution-related IROs | |||
E2-1 – Policies related to pollution | |||
E2-2 – Actions and resources related to pollution | |||
E2-3 – Targets related to pollution | |||
E2-4 – Pollution of air, water and soil | |||
E2-5 – Substances of concern and substances of very high concern | Not material | ||
E2-6 – Anticipated financial effects from pollution-related IROs | “Quick fix” applied | ||
Policies MDR-P – Policies adopted to manage material sustainability matters |
Annual Financial Report for the year 2025 – Section X.
Consolidated Sustainability Statement
189
Actions MDR- A – Actions and resources in relation to material sustainability matters | |||
Metrics MDR-M – Metrics in relation to sustainability matters | |||
Targets MDR-T – Tracking actions through targets | |||
ESRS E3 - Water and marine resources | |||
IRO-1 Description of the processes to identify and assess material water and marine resources-related IROs | |||
E3-1 – Policies related to water and marine resources | |||
E3-2 – Actions and resources related to water and marine resources | |||
E3-3 – Targets related to water and marine resources | |||
E3-4 – Water consumption | |||
E3-5 – Anticipated financial effects from water and marine resources-related IROs | “Quick fix” applied | ||
Policies MDR-P – Policies adopted to manage material sustainability matters | |||
Actions MDR- A – Actions and resources in relation to material sustainability matters | |||
Metrics MDR-M – Metrics in relation to sustainability matters | |||
Targets MDR-T – Tracking actions through targets | |||
ESRS E4 - Biodiversity and ecosystems | Certain disclosures omitted based on “quick fix” application | ||
SBM-3 Material IROs and their interaction with strategy and business model | |||
IRO-1 Description of processes to identify and assess material biodiversity and ecosystem-related IROs | |||
E4-1 –Transition plan and consideration of biodiversity and ecosystems in strategy and business model | |||
E4-2 – Policies related to biodiversity and ecosystems | |||
E4-3 – Actions and resources related to biodiversity and ecosystems | |||
E4-4 – Targets related to biodiversity and ecosystems | |||
E4-5 – Impact metrics related to biodiversity and ecosystems change | |||
E4-6 – Anticipated financial effects from biodiversity and ecosystem-related IROs | “Quick fix” applied | ||
Policies MDR-P – Policies adopted to manage material sustainability matters | |||
Actions MDR- A – Actions and resources in relation to material sustainability matters |
Annual Financial Report for the year 2025 – Section X.
Consolidated Sustainability Statement
190
Metrics MDR-M – Metrics in relation to sustainability matters | |||
Targets MDR-T – Tracking actions through targets | |||
ESRS E5 - Resource use and circular economy | |||
IRO-1 Description of the processes to identify and assess material resource use and circular economy-related IROs | |||
E5-1 – Policies related to resource use and circular economy | |||
E5-2 – Actions and resources related to resource use and circular economy | |||
E5-3 – Targets related to resource use and circular economy | |||
E5-4 – Resource inflows | Not material | ||
E5-5 – Resource outflows | EPIF covers waste and by-products under this section | ||
E5-6 – Anticipated financial effects from material resource use and circular economy-related IROs | “Quick fix” applied | ||
Policies MDR-P – Policies adopted to manage material sustainability matters | |||
Actions MDR- A – Actions and resources in relation to material sustainability matters | |||
Metrics MDR-M – Metrics in relation to sustainability matters | |||
Targets MDR-T – Tracking actions through targets | |||
ESRS S1 - Own workforce | |||
SBM-2 Interests and views of stakeholders | |||
SBM-3 Material IROs and their interaction with strategy and business model | |||
S1-1 – Policies related to own workforce | |||
S1-2 – Processes for engaging with own workforce and workers’ representatives about impacts | |||
S1-3 – Processes to remediate negative impacts and channels for own workforce to raise concerns | |||
S1-4 – Taking action on material impacts on own workforce, and approaches to mitigating material risks and pursuing material opportunities related to own workforce, and effectiveness of those actions | |||
S1-5 – Targets related to managing material negative impacts, advancing positive impacts, and managing material risks and opportunities | |||
S1-6 – Characteristics of the undertaking’s employees | |||
S1-7 – Characteristics of non-employee workers in the undertaking’s own workforce | “Quick fix” applied | ||
S1-8 – Collective bargaining coverage and social dialogue |
Annual Financial Report for the year 2025 – Section X.
Consolidated Sustainability Statement
191
S1-9 – Diversity metrics | |||
S1-10 – Adequate wages | Not material | ||
S1-11 – Social protection | Not material | ||
S1-12 – Persons with disabilities | Not material | ||
S1-13 – Training and skills development metrics | |||
S1-14 – Health and safety metrics | Metrics on ill-health incidents omitted based on phase-in provision | ||
S1-15 – Work-life balance metrics | Not material | ||
S1-16 – Compensation metrics (pay gap and total compensation) | Not material. | ||
S1-17 – Incidents, complaints and severe human rights impacts | |||
Policies MDR-P – Policies adopted to manage material sustainability matters | |||
Actions MDR- A – Actions and resources in relation to material sustainability matters | |||
Metrics MDR-M – Metrics in relation to sustainability matters | |||
Targets MDR-T – Tracking actions through targets | |||
ESRS S2 - Workers in the value chain | Certain disclosures omitted based on “quick fix” application | ||
SBM-2 Interests and views of stakeholders | |||
SBM-3 Material IROs and their interaction with strategy and business model | |||
S2-1 – Policies related to value chain workers | |||
S2-2 – Processes for engaging with value chain workers about impacts | |||
S2-3 – Processes to remediate negative impacts and channels for value chain workers to raise concerns | |||
S2-4 – Taking action on material impacts on value chain workers, and approaches to managing material risks and pursuing material opportunities related to value chain workers, and effectiveness of those actions | |||
S2-5 – Targets related to managing material negative impacts, advancing positive impacts, and managing material risks and opportunities | |||
Policies MDR-P – Policies adopted to manage material sustainability matters | |||
Actions MDR- A – Actions and resources in relation to material sustainability matters | |||
Metrics MDR-M – Metrics in relation to sustainability matters | Transitional provision as per ESRS1 10.2 | ||
Annual Financial Report for the year 2025 – Section X.
Consolidated Sustainability Statement
192
Targets MDR-T – Tracking actions through targets | |||
ESRS S3 - Affected communities | Certain disclosures omitted based on “quick fix” application | ||
SBM-2 Interests and views of stakeholders | |||
SBM-3 Material IROs and their interaction with strategy and business model | |||
S3-1 – Policies related to affected communities | |||
S3-2 – Processes for engaging with affected communities about impacts | |||
S3-3 – Processes to remediate negative impacts and channels for affected communities to raise concerns | |||
S3-4 – Taking action on material impacts on affected communities, and approaches to managing material risks and pursuing material opportunities related to affected communities, and effectiveness of those actions | |||
S3-5 – Targets related to managing material negative impacts, advancing positive impacts, and managing material risks and opportunities | |||
Policies MDR-P – Policies adopted to manage material sustainability matters | |||
Actions MDR- A – Actions and resources in relation to material sustainability matters | |||
Targets MDR-T – Tracking actions through targets | |||
ESRS S4 - Consumers and end-users | Certain disclosures omitted based on “quick fix” application | ||
SBM-2 Interests and views of stakeholders | |||
SBM-3 Material IROs and their interaction with strategy and business model | |||
S4-1 – Policies related to consumers and end-users | |||
S4-2 – Processes for engaging with consumers and end-users about impacts | |||
S4-3 – Processes to remediate negative impacts and channels for consumers and end-users to raise concerns | |||
S4-4 – Taking action on material impacts on consumers and end-users and approaches to managing material risks and pursuing material opportunities related to consumers and end- users, and effectiveness of those actions | Not material. EPIF voluntarily provides limited disclosure for transparency purposes | ||
S4-5 – Targets related to managing material negative impacts, advancing positive impacts, and managing material risks and opportunities | |||
Policies MDR-P – Policies adopted to manage material sustainability matters | |||
Actions MDR- A – Actions and resources in relation to material sustainability matters |
Annual Financial Report for the year 2025 – Section X.
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193
Targets MDR-T – Tracking actions through targets | |||
ESRS G1 - Business conduct | |||
GOV-1 The role of the administrative, supervisory and management bodies | |||
IRO-1 Description of the processes to identify and assess material IROs | |||
G1-1 – Business conduct policies and corporate culture | |||
G1-2 – Management of relationships with suppliers | Not material. EPIF voluntarily provides limited disclosure for transparency purposes | ||
G1-3 – Procedures to address corruption or bribery | |||
G1-4 – Incidents of corruption or bribery | |||
G1-5 – Political influence and lobbying activities | |||
G1-6 – Payment practices | Not material | ||
Policies MDR-P – Policies adopted to manage material sustainability matters | |||
Actions MDR- A – Actions and resources in relation to material sustainability matters | |||
Metrics MDR-M – Metrics in relation to sustainability matters | |||
Targets MDR-T – Tracking actions through targets |
ESRS 2 IRO-2 - List of datapoints in cross-cutting and topical standards that derive from other EU
legislation
Disclosure Requirement and related datapoint | Material information? | Legislation | Page in sustainability statement |
ESRS 2 GOV-1 - Board's gender diversity paragraph 21 (d) | Material | SFDR/CBSR | |
ESRS 2 GOV-1 - Percentage of board members who are independent paragraph 21 (e) | Material | CBSR | |
ESRS 2 GOV-4 - Statement on due diligence paragraph 30 | Material | SFDR | |
ESRS 2 SBM-1 - Involvement in activities related to fossil fuel activities paragraph 40 (d) i | Material | SFDR/EBA3/C BSR | |
ESRS 2 SBM-1 - Involvement in activities related to chemical production paragraph 40 (d) ii | Not material | ||
ESRS 2 SBM-1 - Involvement in activities related to controversial weapons paragraph 40 (d) iii | Not material | ||
ESRS 2 SBM-1 - Involvement in activities related to cultivation and production of tobacco paragraph 40 (d) iv | Not material |
Annual Financial Report for the year 2025 – Section X.
Consolidated Sustainability Statement
194
ESRS E1-1 - Transition plan to reach climate neutrality by 2050 paragraph 14 | Material | EUCL | |
ESRS E1-1 - Undertakings excluded from Paris-aligned Benchmarks paragraph 16 (g) | Material | EBA3/ CBSR | |
ESRS E1-4 - GHG emission reduction targets paragraph 34 | Material | SFDR/EBA3/C BSR | |
ESRS E1-5 - Energy consumption from fossil sources disaggregated by sources (only high climate impact sectors) paragraph 38 | Material | SFDR | |
ESRS E1-5 - Energy consumption and mix paragraph 37 | Material | SFDR | |
ESRS E1-5 - Energy intensity associated with activities in high climate impact sectors paragraphs 40 to 43 | Material | SFDR | |
ESRS E1-6 - Gross Scope 1, 2, 3 and Total GHG emissions paragraph 44 | Material | SFDR/EBA3/C BSR | |
ESRS E1-6 - Gross GHG emissions intensity paragraphs 53 to 55 | Material | SFDR/EBA3/C BSR | |
ESRS E1-7 - GHG removals and carbon credits paragraph 56 | Not material | ||
ESRS E1-9 - Exposure of the benchmark portfolio to climate- related physical risks paragraph 66 | Material | CBSR | |
ESRS E1-9 - Disaggregation of monetary amounts by acute and chronic physical risk paragraph 66 (a) | Material | EBA3 | |
ESRS E1-9 - Location of significant assets at material physical risk paragraph 66 (c). | Material | EBA3 | |
ESRS E1-9 - Breakdown of the carrying value of its real estate assets by energy-efficiency classes paragraph 67 (c). - ESRS E1-9 | Not material | ||
ESRS E1-9 - Degree of exposure of the portfolio to climate- related opportunities paragraph 69 | Material | CBSR | |
ESRS E2-4 - Amount of each pollutant listed in Annex II of the E- PRTR Regulation (European Pollutant Release and Transfer Register) emitted to air, water and soil, paragraph 28 | Material | SFDR | |
ESRS E3-1 - Water and marine resources paragraph 9 | Material | SFDR | |
ESRS E3-1 - Dedicated policy paragraph 13 | Material | SFDR | |
ESRS E3-1 - Sustainable oceans and seas paragraph 14 | Not material | ||
ESRS E3-4 - Total water recycled and reused paragraph 28 (c) | Not material | ||
ESRS E3-4 - Total water consumption in m3 per net revenue on own operations paragraph 29 | Material | SFDR | |
ESRS 2 IRO-1 - E4 paragraph 16 (a) i | Material | SFDR | |
ESRS 2 IRO-1 - E4 paragraph 16 (b) | Material | SFDR | |
ESRS 2 IRO-1 - E4 paragraph 16 (c) | Material | SFDR |
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195
ESRS E4-2 - Sustainable land / agriculture practices or policies paragraph 24 (b) | Not material | ||
ESRS E4-2 - Sustainable oceans / seas practices or policies paragraph 24 (c) | Not material | ||
ESRS E4-2 - Policies to address deforestation paragraph 24 (d) | Not material | ||
ESRS E5-5 - Non-recycled waste paragraph 37 (d) | Material | SFDR | |
ESRS E5-5 - Hazardous waste and radioactive waste paragraph 39 | Material | SFDR | |
ESRS 2 SBM-3 - S1 - Risk of incidents of forced labor paragraph 14 (f) | Material | SFDR | |
ESRS 2 SBM-3 - S1 - Risk of incidents of child labor paragraph 14 (g) | Material | SFDR | |
ESRS S1-1 - Human rights policy commitments paragraph 20 | Material | SFDR | |
ESRS S1-1 - Due diligence policies on issues addressed by the fundamental International Labor Organization Conventions 1 to 8, paragraph 21 | Material | CBSR | |
ESRS S1-1 - processes and measures for preventing trafficking in human beings paragraph 22 | Material | SFDR | |
ESRS S1-1 - workplace accident prevention policy or management system paragraph 23 | Material | SFDR | |
ESRS S1-3 - grievance/complaints handling mechanisms paragraph 32 (c) | Material | SFDR | |
ESRS S1-14 - Number of fatalities and number and rate of work- related accidents paragraph 88 (b) and (c) | Material | SFDR/CBSR | |
ESRS S1-14 - Number of days lost to injuries, accidents, fatalities or illness paragraph 88 (e) | Material | SFDR | |
ESRS S1-16 - Unadjusted gender pay gap paragraph 97 (a) | Not material | ||
ESRS S1-16 - Excessive CEO pay ratio paragraph 97 (b) | Not material | ||
ESRS S1-17 - Incidents of discrimination paragraph 103 (a) | Material | SFDR | |
ESRS S1-17 Non-respect of UNGPs on Business and Human Rights and OECD paragraph 104 (a) | Material | SFDR/CBSR | |
ESRS 2 SBM-3 – S2 - Significant risk of child labor or forced labor in the value chain paragraph 11 (b) | Material | SFDR | |
ESRS S2-1 - Human rights policy commitments paragraph 17 | Material | SFDR | |
ESRS S2-1 - Policies related to value chain workers paragraph 18 | Material | SFDR | |
ESRS S2-1 Non-respect of UNGPs on Business and Human Rights principles and OECD guidelines paragraph 19 | Material | SFDR/CBSR | |
ESRS S2-1 - Due diligence policies on issues addressed by the fundamental International Labor Organization Conventions 1 to 8, paragraph 19 | Material | CBSR |
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Consolidated Sustainability Statement
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ESRS S2-4 - Human rights issues and incidents connected to its upstream and downstream value chain paragraph 36 | Material | SFDR | |
ESRS S3-1 - Human rights policy commitments paragraph 16 | Material | SFDR | |
ESRS S3-1 - non-respect of UNGPs on Business and Human Rights, ILO principles or and OECD guidelines paragraph 17 | Material | SFDR/CBSR | |
ESRS S3-4 - Human rights issues and incidents paragraph 36 | Material | SFDR | |
ESRS S4-1 - Policies related to consumers and end-users paragraph 16 - ESRS S4-1 | Material | SFDR | |
ESRS S4-1 - Non-respect of UNGPs on Business and Human Rights and OECD guidelines paragraph 17 | Material | SFDR/CBSR | |
ESRS S4-4 - Human rights issues and incidents paragraph 35 | Material | SFDR | |
ESRS G1-1 - United Nations Convention against Corruption paragraph 10 (b) | Material | SFDR | |
ESRS G1-1 - Protection of whistle- | Material | SFDR | |
ESRS G1-4 - Fines for violation of anti-corruption and anti-bribery laws paragraph 24 (a) | Material | SFDR/CBSR | |
ESRS G1-4 - Standards of anti- corruption and anti- bribery paragraph 24 (b) | Material | SFDR |
Legend: | |
SFDR | Sustainable Finance Disclosure Regulation |
CBSR | Climate Benchmark Standards Regulation |
EBA3 | EBA Pillar 3 |
EUCL | EU Climate Law |
Annual Financial Report for the year 2025 – Section X.
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197
Glossary of terms
Abbreviation | Term |
ABC | Anti-bribery and corruption |
AR | Application Requirement |
BAT | Best Available Technique |
Capex | Capital Expenditure |
CCUS | Carbon Capture, Utilization, and Storage |
CCS | Carbon Capture and Storage |
CEMS | Continuous Emission Monitoring Systems |
CEO | Chief Executive Officer |
CFO | Chief Financial Officer |
CHP | Combined Heat and Power |
CO | Carbon Monoxide |
CO 2 | Carbon Dioxide |
CBD | Convention for Biological Diversity |
COP | Conference of Parties |
CMIP6 | Coupled Model Intercomparison Project |
CSDDD | Corporate Sustainability Due Diligence Directive |
CSRD | Corporate Sustainability Reporting Directive |
DEI | Diversity, Equity and Inclusion |
DMA | Double Materiality Assessment |
EBITDA | Earnings Before Interest, Taxes, Depreciation, and Amortization |
ENCORE | Exploring Natural Capital Opportunities Risks and Exposure |
EEA | European Economic Area |
EFRAG | European Financial Reporting Advisory Group |
EIA | Environmental Impact Assessment |
EPH | Energetický a průmyslový holding, a.s. |
EPIF | EP Infrastructure, a.s. |
ESG | Environmental, Social, Governance |
ESRS | European Sustainability Reporting Standards |
ETI | Ethical Trading Initiative |
ETS | Emissions Trading Scheme |
EU | European Union |
EWC | European Works Council |
GFF | Green Financing Framework |
GHG | Greenhouse Gases |
GRI | Global Reporting Initiative |
HSE | Health, Safety & Environment |
IPCC | Intergovernmental Panel on Climate Change |
IEA | International Energy Agency |
IFRS | International Financial Reporting Standards |
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ILO | International Labor Organization |
IPCEI | Important Project of Common European Interest |
IRO | Impact, Risks and Opportunities |
ISAE | International Standard on Assurance Engagements |
ISO | International Organization for Standardization |
IT | Information Technology |
KPI | Key Performance Indicator |
KYC | Know Your Customer |
LEAP | Locate, Evaluate, Assess, and Prepare |
LTIFR | Lost Time Injury Frequency Rate |
MDR | Minimum Disclosure Requirement |
MWh | Megawatt hour |
NACE | Nomenclature of Economic Activities |
NGO | Non-governmental Organisation |
Nimby | Not In My Backyard |
NOX | Nitrous Oxides |
OECD | Organisation for Economic Co-operation and Development |
OpCo | Operating Company |
Opex | Operational Expenditure |
PAB | Paris Aligned Benchmark |
P&L | Profit & Loss |
PV | Photovoltaic |
R&D | Research & Development |
R&Os | Risks & Opportunities |
SBM | Strategy and Business Model |
SO 2 | Sulphur Dioxide |
SSP | Shared Socio-economic Pathway |
TCFD | Taskforce for Climate Related Disclosures |
TNFD | Taskforce for Nature Related Disclosures |
TRIR | Total Recordable Incident Rate |
TWh | Terawatt hour |
UK | United Kingdom |
UN | United Nations |
UNGC | United Nations Global Compact |
VC | Value Chain |
WEI+ | Water Exploitation Index |
WRI | World Resource Institute |
WWF | World Wildlife |
WWF BRF | Biodiversity Risk Filter |
WWF WRF | Water Risk Filter |
Annual Financial Report for the year 2025 – Section X.
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199
Supplementary tables
ESRS Environment
E1 Climate change
E1-5
Energy consumption | ||||||
GWh | 2021 | 2022 | 2023 | 2024 | 2025 | % 25/24 |
Czech Republic | 11,855 | 11,749 | 7,969 | 6,883 | 4,322 | (37%) |
Slovakia | 964 | 882 | 825 | 789 | 675 | (14%) |
Germany | 126 | 95 | 107 | 74 | 68 | (8%) |
Hungary | – | – | – | – | – | |
Total | 12,945 | 12,726 | 8,901 | 7,746 | 5,065 | (35%) |
Electricity losses in the power distribution network | ||||||
GWh | 2021 | 2022 | 2023 | 2024 | 2025 | % 25/24 |
Electricity inflows to the grid | 7,991 | 7,769 | 7,598 | 7,757 | N/A | |
Network losses | 442 | 351 | 367 | 419 | 440 | 5% |
Network losses in % | 5.5% | 4.5% | 4.8% | 5.4% |
E1-6
Scope 1 CO 2 | |||||||
thsnd. tonnes CO 2 | 2021 | 2022 | 2023 | 2024 | 2025 | % 25/24 | |
Gas Transmission | 121 | 18 | 15 | 16 | 7 | (54%) | |
Gas and Power Distribution | 4 | 11 | 9 | 10 | 11 | 2% | |
Gas Storage | 56 | 67 | 56 | 34 | 32 | (5%) | |
Heat Infra | 3,278 | 3,254 | 2,101 | 1,556 | 869 | (44%) | |
Total | 3,459 | 3,350 | 2,181 | 1,617 | 920 | (43%) | |
Scope 1 CO 2 | |||||||
thsnd. tonnes CO 2 | 2021 | 2022 | 2023 | 2024 | 2025 | % 25/24 | |
Czech Republic | 3,284 | 3,257 | 2,105 | 1,558 | 872 | (44%) | |
Slovakia | 152 | 78 | 58 | 47 | 36 | (22%) | |
Germany | 23 | 15 | 18 | 12 | 11 | (4%) | |
Total | 3,459 | 3,350 | 2,181 | 1,617 | 920 | (43%) | |
Annual Financial Report for the year 2025 – Section X.
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Scope 2 CO 2 | ||||||
thsnd. tonnes CO 2 | 2021 | 2022 | 2023 | 2024 | 2025 | % 25/24 |
Czech Republic | 9 | 8 | 8 | 8 | 3 | (67%) |
Slovakia | 8 | 53 | 61 | 47 | 36 | (23%) |
Germany | 2 | 2 | 2 | 2 | 1 | (42%) |
Total | 19 | 63 | 70 | 56 | 40 | (29%) |
Scope 1 methane emissions | |||||||
thsnd. tonnes CO 2 | 2021 | 2022 | 2023 | 2024 | 2025 | % 25/24 | |
Gas transmission | 72 | 54 | 92 | 33 | 22 | (32%) | |
Gas distribution | 158 | 137 | 112 | 107 | 119 | 11% | |
Gas storage | 28 | 40 | 30 | 22 | 14 | (36%) | |
Total | 257 | 232 | 234 | 161 | 155 | (4%) | |
E2 Pollution
SO 2 | ||||||
tonnes | 2021 | 2022 | 2023 | 2024 | 2025 | % 25/24 |
Czech Republic | 3,279 | 4,436 | 2,582 | 2,350 | 815 | (65%) |
Slovakia | 3 | 3 | 8 | 7 | 9 | 33% |
Total | 3,282 | 4,439 | 2,590 | 2,357 | 824 | (65%) |
NOx emissions by country | ||||||
tonnes | 2021 | 2022 | 2023 | 2024 | 2025 | % 25/24 |
Czech Republic | 3,097 | 3,335 | 2,138 | 1,751 | 1,092 | (38%) |
Slovakia | 183 | 75 | 66 | 44 | 38 | (14%) |
Total | 3,280 | 3,410 | 2,204 | 1,795 | 1,130 | (37%) |
Dust emissions by country | |||||||
tonnes | 2021 | 2022 | 2023 | 2024 | 2025 | % 25/24 | |
Czech Republic | 105 | 97 | 56 | 46 | 22 | (52%) | |
Slovakia | 4 | 3 | 3 | 2 | 2 | 5% | |
Total | 109 | 100 | 59 | 48 | 24 | (50%) | |
E4 Water resources
Quantity of water withdrawn by country | ||||||
million m 3 | 2021 | 2022 | 2023 | 2024 | 2025 | % 25/24 |
Czech Republic | 41 | 94 | 84 | 41 | 13 | (68%) |
Slovakia | 0 | 0 | 0 | 0 | 0 | 45% |
Germany | 0 | 0 | 0 | 0 | 0 | 38% |
Total water withdrawn | 41 | 94 | 84 | 41 | 13 | (68%) |
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E5 Resource use and circular economy
Byproducts by means of disposal | ||||||
thsnd. tonnes | 2021 | 2022 | 2023 | 2024 | 2025 | % 25/24 |
Sales | 318 | 457 | 316 | 300 | 152 | (49%) |
Storage - own stock | 145 | – | – | – | – | |
Storage - external | 176 | 241 | 145 | 104 | 99 | (5%) |
Stabilizate production | 627 | 627 | 301 | 195 | 50 | (74%) |
Storage - chargeable waste | 23 | 44 | 35 | 33 | 35 | 7% |
Other | – | 1 | 0 | – | 5 | |
Total | 1,288 | 1,370 | 796 | 632 | 341 | (46%) |
Waste produced by country | ||||||
tonnes | 2021 | 2022 | 2023 | 2024 | 2025 | % 25/24 |
Czech Republic | 1,846 | 2,468 | 2,094 | 1,179 | 30,410 | >100% |
Slovakia | 44,660 | 36,262 | 41,177 | 40,562 | 47,420 | 17% |
Germany | 1,900 | 971 | 969 | 853 | 1,466 | 72% |
Total | 48,406 | 39,701 | 44,240 | 42,594 | 79,296 | 86% |
ESRS Social
S1-6 Characteristics of EPIF's employees
Male employees | ||||||
FTE | 2021 | 2022 | 2023 | 2024 | 2025 | % 25/24 |
Czech Republic | 1,168 | 1,136 | 1,151 | 1,145 | 720 | (37%) |
Slovakia | 3,406 | 3,418 | 3,333 | 3,330 | 3,372 | 1% |
Germany | 54 | 55 | 56 | 58 | 59 | 1% |
Netherlands | 1 | 1 | 1 | 1 | 1 | 0% |
Total | 4,629 | 4,609 | 4,541 | 4,534 | 4,151 | (8%) |
Female employees | ||||||
FTE | 2021 | 2022 | 2023 | 2024 | 2025 | % 25/24 |
Czech Republic | 291 | 326 | 333 | 346 | 228 | (34%) |
Slovakia | 883 | 894 | 897 | 911 | 953 | 5% |
Germany | 7 | 7 | 6 | 8 | 8 | 11% |
Netherlands | 1 | 1 | 1 | 1 | 1 | 0% |
Total | 1,182 | 1,227 | 1,238 | 1,266 | 1,191 | (6%) |
Annual Financial Report for the year 2025 – Section X.
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Ratio of female employees | ||||||
% | 2021 | 2022 | 2023 | 2024 | 2025 | % 25/24 |
Czech Republic | 20% | 22% | 22% | 23% | 24% | 4% |
Slovakia | 21% | 21% | 21% | 21% | 22% | 3% |
Germany | 11% | 11% | 10% | 12% | 12% | 9% |
Netherlands | 50% | 50% | 50% | 50% | 50% | 0% |
Total | 20% | 21% | 21% | 22% | 22% | 2% |
Employees with a full-time job | ||||||
FTE | 2021 | 2022 | 2023 | 2024 | 2025 | % 25/24 |
Czech Republic | 1,428 | 1,420 | 1,450 | 1,450 | 923 | (36%) |
Slovakia | 4,277 | 4,298 | 4,208 | 4,222 | 4,306 | 2% |
Germany | 60 | 61 | 59 | 62 | 63 | 1% |
Total | 5,765 | 5,779 | 5,718 | 5,734 | 5,291 | (8%) |
Employees with a part-time job | |||||||
FTE | 2021 | 2022 | 2023 | 2024 | 2025 | % 25/24 | |
Czech Republic | 31 | 42 | 36 | 41 | 26 | (38%) | |
Slovakia | 12 | 14 | 24 | 19 | 18 | (6%) | |
Germany | 1 | 1 | 3 | 4 | 5 | 21% | |
Netherlands | 2 | 2 | 2 | 2 | 2 | 0% | |
Total | 46 | 59 | 65 | 66 | 50 | (24%) | |
Employees with a permanent contract | ||||||
FTE | 2021 | 2022 | 2023 | 2024 | 2025 | % 25/24 |
Czech Republic | 1,382 | 1,379 | 1,400 | 1,405 | 919 | (35%) |
Slovakia | 3,923 | 3,919 | 3,798 | 3,763 | 3,866 | 3% |
Germany | 59 | 59 | 59 | 63 | 64 | 2% |
Netherlands | 2 | 2 | 2 | 2 | 2 | 0% |
Total | 5,366 | 5,359 | 5,259 | 5,233 | 4,852 | (7%) |
Employees with a temporary contract | |||||||
FTE | 2021 | 2022 | 2023 | 2024 | 2025 | % 25/24 | |
Czech Republic | 76 | 83 | 87 | 86 | 29 | (66%) | |
Slovakia | 367 | 393 | 434 | 478 | 458 | (4%) | |
Germany | 2 | 3 | 3 | 3 | 3 | (3%) | |
Total | 445 | 479 | 523 | 567 | 490 | (14%) | |
Annual Financial Report for the year 2025 – Section X.
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Number of leavers | ||||||
FTE | 2021 | 2022 | 2023 | 2024 | 2025 | % 25/24 |
Czech Republic | 131 | 124 | 121 | 141 | 80 | (43%) |
Slovakia | 263 | 344 | 429 | 305 | 260 | (15%) |
Germany | 7 | 5 | 3 | 2 | 2 | 0% |
Total leavers | 401 | 473 | 553 | 448 | 342 | (24%) |
S1-8 Collective bargaining coverage and social dialogue
Employees with collective bargaining agreements | ||||||
FTE | 2021 | 2022 | 2023 | 2024 | 2025 | % 25/24 |
Czech Republic | 1,200 | 1,170 | 1,187 | 1,188 | 742 | (38%) |
Slovakia | 4,236 | 4,259 | 4,101 | 4,109 | 4,187 | 2% |
Germany | 54 | 54 | 54 | 58 | 59 | 3% |
Total | 5,489 | 5,483 | 5,341 | 5,355 | 4,988 | (0) |
Covered% of total headcount | 94% | 94% | 92% | 92% | 93% | 0% |
S1-9 Diversity metrics
Age structure | |||||
FTE | 2021 | 2022 | 2023 | 2024 | 2025 |
Under 30 years old | 457 | 451 | 465 | 487 | 471 |
Between 30 and 50 years old | 2,779 | 2,807 | 2,716 | 2,686 | 2,420 |
Over 50 years old | 2,576 | 2,580 | 2,601 | 2,626 | 2,450 |
Age structure | |||||||
% | 2021 | 2022 | 2023 | 2024 | 2025 | ||
Employees under 30 years old | 8% | 8% | 8% | 8% | 9% | ||
Employees between 30 and 50 years | 48% | 48% | 47% | 46% | 45% | ||
Employees over 50 years old | 44% | 44% | 45% | 45% | 46% | ||
S1-13 Training and skills development metrics
Total training hours | ||||||
hours | 2021 | 2022 | 2023 | 2024 | 2025 | % 25/24 |
Czech Republic | 13,988 | 17,209 | 21,056 | 18,327 | 13,595 | (26%) |
Slovakia | 151,231 | 167,859 | 198,268 | 197,331 | 181,075 | (8%) |
Germany | 1,142 | 1,041 | 2,445 | 8,478 | 4,742 | (44%) |
Total training hours | 166,360 | 186,109 | 221,768 | 224,136 | 199,412 | (11%) |
Annual Financial Report for the year 2025 – Section X.
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S1-14 Health and Safety
Fatal injuries | ||||||
# | 2021 | 2022 | 2023 | 2024 | 2025 | ∆ |
Slovakia | – | 1 | 1 | – | – | - |
Total fatal injuries | – | 1 | 1 | – | – |
Lost-time injuries | ||||||
# | 2021 | 2022 | 2023 | 2024 | 2025 | ∆ |
Czech Republic | 13 | 10 | 6 | 6 | 4 | (2) |
Slovakia | 14 | 19 | 12 | 9 | 10 | 1 |
Total registered | 27 | 30 | 18 | 15 | 14 | (1) |
Injury Frequency Rate | ||||||
Index | 2021 | 2022 | 2023 | 2024 | 2025 | ∆ |
Czech Republic | 5.0 | 3.9 | 2.2 | 2.2 | 2.6 | 0.4 |
Slovakia | 2.0 | 3.0 | 1.9 | 1.4 | 1.5 | 0.1 |
Germany | – | 10.9 | – | – | – | - |
Total injury frequency | 2.8 | 3.3 | 2.0 | 1.6 | 1.7 | 0.1 |
Worked Hours | ||||||
mil.hours | 2021 | 2022 | 2023 | 2024 | 2025 | % 25/24 |
Czech Republic | 2.6 | 2.6 | 2.7 | 2.7 | 1.5 | (43%) |
Slovakia | 7.0 | 6.7 | 6.7 | 6.6 | 6.6 | 1% |
Germany | 0.1 | 0.1 | 0.1 | 0.1 | 0.1 | 2% |
Total worked hours | 9.6 | 9.3 | 9.4 | 9.3 | 8.2 | (12%) |
EPIF specific metrics
Electricity - installed capacity by fuel | ||||||
MW | 2021 | 2022 | 2023 | 2024 | 2025 | % 25/24 |
Conventional | 904 | 904 | 902 | 902 | 236 | (74%) |
Lignite | 824 | 824 | 822 | 822 | 156 | (81%) |
OCGT and other natural gas | 50 | 50 | 50 | 50 | 50 | 0% |
Oil | 20 | 20 | 20 | 20 | 20 | 0% |
Other | 11 | 11 | 11 | 11 | 11 | 0% |
Renewable | 64 | 64 | 66 | 66 | 115 | 74% |
Wind | 6 | 6 | 6 | 6 | 6 | 0% |
Photovoltaic | 15 | 15 | 15 | 15 | 15 | 1% |
Hydro | 3 | 3 | 3 | 3 | 3 | (0%) |
Biomass | 37 | 37 | 39 | 39 | 88 | >100% |
Other | 3 | 3 | 3 | 3 | 3 | 0% |
Total | 968 | 968 | 968 | 968 | 351 | (64%) |
Annual Financial Report for the year 2025 – Section X.
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205
Electricity - installed capacity by country | |||||||
MW | 2021 | 2022 | 2023 | 2024 | 2025 | % 25/24 | |
Czech Republic | 900 | 900 | 900 | 900 | 283 | (69%) | |
Slovakia | 68 | 68 | 68 | 68 | 68 | (0%) | |
Total | 968 | 968 | 968 | 968 | 351 | 36% | |
Heat - installed capacity by fuel | ||||||
MW | 2021 | 2022 | 2023 | 2024 | 2025 | % 25/24 |
Lignite | 2,600 | 2,590 | 2,570 | 1,951 | 292 | (85%) |
OCGT and other natural gas | 18 | 18 | 18 | – | – | |
Oil | 229 | 229 | 229 | 229 | 229 | 0% |
Biomass | 136 | 135 | 154 | 235 | 155 | (34%) |
Other | 32 | 32 | 32 | 23 | 23 | 0% |
Total | 3,015 | 3,003 | 3,003 | 2,438 | 699 | (71%) |
Energy production
Total net energy production | ||||||
GWh | 2021 | 2022 | 2023 | 2024 | 2025 | % 25/24 |
Total | 5,295 | 5,041 | 3,932 | 3,629 | 2,419 | (33%) |
Electricity production by fuel | ||||||
GWh | 2021 | 2022 | 2023 | 2024 | 2025 | % 25/24 |
Conventional | 2,280 | 2,250 | 1,343 | 972 | 562 | (42%) |
Lignite | 2,231 | 2,199 | 1,297 | 926 | 509 | (45%) |
CCGT | – | – | – | – | – | |
OCGT and other natural gas | 1 | 1 | 0 | 1 | 1 | (48%) |
Other | 48 | 50 | 46 | 46 | 52 | 14% |
Renewable | 288 | 328 | 231 | 304 | 256 | (16%) |
Wind | 5 | 5 | 7 | 7 | 6 | (15%) |
Photovoltaic | 17 | 17 | 15 | 15 | 16 | 6% |
Hydro | 6 | 4 | 8 | 7 | 2 | (65%) |
Biomass | 247 | 292 | 191 | 262 | 219 | (16%) |
Other | 13 | 10 | 10 | 13 | 12 | (5%) |
Total | 2,568 | 2,578 | 1,574 | 1,276 | 818 | (36%) |
Annual Financial Report for the year 2025 – Section X.
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Electricity production by country | ||||||
GWh | 2021 | 2022 | 2023 | 2024 | 2025 | % 25/24 |
Czech Republic | 2,535 | 2,549 | 1,544 | 1,244 | 791 | (36%) |
Slovakia | 33 | 29 | 29 | 32 | 27 | (15%) |
Total | 2,568 | 2,578 | 1,574 | 1,276 | 818 | (36%) |
Heat production by fuel | ||||||
GWh | 2021 | 2022 | 2023 | 2024 | 2025 | % 25/24 |
Lignite | 2,460 | 2,168 | 1,979 | 1,851 | 1,141 | (38%) |
OCGT and other natural gas | 0 | 0 | 0 | 1 | 1 | (62%) |
Oil | 1 | 4 | 5 | 2 | 0 | (82%) |
Biomass | 207 | 257 | 299 | 423 | 374 | (12%) |
Other | 58 | 35 | 76 | 76 | 86 | 12% |
Total | 2,726 | 2,463 | 2,359 | 2,353 | 1,601 | (32%) |
Heat production by country | ||||||
GWh | 2021 | 2022 | 2023 | 2024 | 2025 | % 25/24 |
Czech Republic | 2,726 | 2,463 | 2,359 | 2,353 | 1,601 | (32%) |
Total | 2,726 | 2,463 | 2,359 | 2,353 | 1,601 | (32%) |
Distribution and supply
Heat supplied by country | |||||||
TJ | 2021 | 2022 | 2023 | 2024 | 2025 | % 25/24 | |
Czech Republic | 8,365 | 7,442 | 7,087 | 6,987 | 7,502 | 7% | |
Total | 8,365 | 7,442 | 7,087 | 6,987 | 7,502 | 7% | |
Heat distribution - number of connection points | ||||||
# | 2021 | 2022 | 2023 | 2024 | 2025 | % 25/24 |
Total | 151,015 | 151,984 | 153,126 | 153,759 | 154,757 | 1% |
Power distribution - number of connection points | |||||||
# | 2021 | 2022 | 2023 | 2024 | 2025 | % 25/24 | |
Residential | 681,749 | 690,390 | 708,539 | 716,815 | 722,115 | 1% | |
Mid-size | 86,208 | 84,134 | 71,487 | 69,476 | 69,394 | (0%) | |
Large | 5,220 | 5,137 | 5,066 | 5,006 | 4,934 | (1%) | |
Total | 773,177 | 779,661 | 785,092 | 791,297 | 796,443 | 1% | |