PGE Polska Grupa Energetyczna S.A.

Regulatory Filings • Jul 3, 2024

Report Content Information about approval of G tariff for PGE Obrót for the period July1, 2024 - December 31, 2025 and its impact on financial results

The Management Board of PGE Polska Grupa Energetyczna S.A. ("PGE", the"Company") discloses that on June 28, 2024 the President of the EnergyRegulatory Office (the "ERO President") approved the electricity saleprice for G tariff off-takers for the period July 1, 2024 - December 31,2025 for PGE Obrót S.A. (PGE's subsidiary) at an average level of PLN623 per MWh (price excluding value added tax and excise tax). The salesprice for electricity approved by the ERO President is significantlylower compared to the tariff approved in December 2023 which was to beapplicable throughout the entire year 2024 and which resulted increation by PGE Obrót S.A. of a provision for onerous contracts (basedupon IAS 37 Provisions, Contingent Liabilities and Contingent Assets) asat December 31, 2023 (about which the Company informed in the currentreport no. 43/2023 and in the consolidated financial statements of thePGE Group for 2023).

With regard to above, after analyses based on forecasts for the wholetariff period July 1, 2024 - December 31, 2025, the Company disclosesthat no additional provision for onerous contracts is required in PGEObrót S.A., however, for the second half of 2024 a loss on G tariff hasbeen estimated in amount of approximately PLN 550 million (above theamount of the provision mentioned above).

Above estimates are based on the electricity volume and price contractedto date by PGE Obrót S.A. for G tariff off-takers for the tariff periodmentioned above and on projections of future contracting.

The Company, along with the auditor, will be analysing influence of theabove on the consolidated results of the PGE Group in accordance withthe International Financial Reporting Standards.