DECISIONS OF PRESIDENT OF ENERGY REGULATORY OFFICE CONCERNING ADJUSTMENT OF LTC COMPENSATIONS FOR 2017 FOR POLENERGIA ELEKTROCIEPŁOWNIA NOWA SARZYNA SP. Z O.O.

The Management Board of Polenergia S.A. (‘Issuer’), acting pursuant to Art. 17 (1) of the Regulation (EU) No. 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse and repealing Directive 2003/6/EC of the European Parliament and the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC (OJ L 173, 2014, p. 1, as amended), hereby announces to have been notified that on 25th July 2018 the Issuer’s subsidiary, Polenergia Elektrociepłownia Nowa Sarzyna Sp. z o.o., received decisions of the President of the Energy Regulatory Office (‘President of the ERO’) regarding the adjustment of annual stranded costs, costs of consumption of collected natural gas and costs of uncollected natural gas (‘LTC compensations’) for 2017 owed to the aforementioned Issuer’s subsidiary under the Act of 29 June 2007 on coverage of costs incurred by generators in relation to early termination of long-term power and electricity sales contracts (Journal of Laws No. 130, item 905, as amended).

According to the decisions of the President of the ERO, the adjustment of annual LTC compensations generated in Polenergia Elektrociepłownia Nowa Sarzyna Sp. z o.o. for 2017 amounts to approximately PLN (+) 47.6 million. The Issuer considers these amounts as indisputable.