Energa S.A.

Legal Proceedings Report • Dec 22, 2023

Current Report No. 37/2023

Date: 22 December 2023

Subject: Decision regarding the amount of the provision created inconnection with cash penalties imposed on a subsidiary by the Presidentof the ERO described in the current report No. 34/2023

Legal basis: Article 17 (1) of MAR - inside information

With reference to the current report No. 34/2023 of 18 December 2023("CR 34/2023") the Management Board of Energa SA ("Issuer") informs thaton 22 December 2023 it received the information from the subsidiaryEnerga Obrót SA ("Company") about a decision on the amount of theprovision created in connection with the cash penalties imposed on theCompany by the President of the Energy Regulatory Office (_quot;President ofERO_quot;).

After conducting the internal analyses, the results of which wereconfirmed by the auditor, the Company's Management Board decided tocreate a provision in the total amount of PLN 104,9 million, which willtranslate directly into a decrease in the consolidated EBITDA result(operating profit before amortization and impairment of non-financialnon-current assets) of the Issuer's Capital Group for 2023 by the sameamount.

The difference between the maximum amount of the provision presented inthe CR 34/2023 and the above-mentioned amount results from the lowerprovision created for the penalty presented in point b) of theabove-mentioned report. Pursuant to Art. 52 section 1 of the Act of 20February 2015 on renewable energy sources, the Company were able tofulfill the obligation for 2018 specified in this regulation in twoways: by (i) submitting certificates of origin or certificates of originof agricultural biogas to the President of ERO for redemption or (ii)paying a substitute fee. The Company used the second option and paid thesubstitute fee of PLN 149.5 million to the National Fund forEnvironmental Protection and Water Management. Due to the fact that, inthe light of the decision of the President of the ERO, theimplementation of the above-mentioned obligation in the indicated mannerwas not possible, this fee should be returned to the Company. As aresult of the above, the amount of the provision was reduced by theabove-mentioned substitute fee.

At the same time, the Company confirms that it will appeal against thedecisions regarding the cash penalties of the President of ERO presentedin the CR 34/2023.