Decisions of the President of the Energy Regulatory Office (URE) setting the price on which the negative balance is to be covered

The Management Board of Polenergia S.A. (the ‘Issuer’), with reference to the Report No. 15/2021 of March 5, 2021, Report No. 17/2021 of April 16, 2021, Report No. 18/2021 of May 4, 2021 and Report No. 40/2024 of August 14, 2024, informs that on November 6, 2024, the President of the Energy Regulatory Office issued to the project companies MFW Bałtyk II sp. z o.o. and MFW Bałtyk III sp. z o.o. (jointly the ‘Project Companies’), in which the Issuer holds 50% of shares each, decisions setting the price being the basis for covering the negative balance, (‘Decisions’), referred to in Article 18 clause 1 of the Act of 17 December 2020 on the promotion of generation of Power in offshore wind farms (the ‘Act’), at the level of PLN 319.60/MWh, during the 25-year period of support under the Act. The price established in the Decisions is subject, starting from 2022, to annual valorisation with the average annual index of prices of total consumer goods and services from the previous calendar year, determined in the communiqué of the President of the Central Statistical Office.

At the same time, the Issuer informs that, according to the justification of the Decision, in the course of the proceedings the authority determined that the commencement of works on the MFW Bałtyk II and MFW Bałtyk III projects took place prior to the issuance of the Decision by the President of the ERO, which makes Article 20 clause 1 of the Act inapplicable, and therefore the price constituting the basis for the payment of the negative balance will not be subject to update under the so-called ‘claw-back’ procedure provided for in this provision.

Legal basis: Article 17 clause 1 of Regulation (EU) No. 596/2014 of the European Parliament and of the Council on market abuse and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC (OJ EU. L. 2014 No. 173, p. 1 as amended).