Energa S.A.

Legal Proceedings Report • Jan 31, 2022

Current report No. 5/2022

Date: 31 January 2022

Subject: Termination of the capacity contract entered into byElektrownia Ostrołęka Sp. z o.o.

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

The Management Board of Energa SA ("Issuer") informs that on 31 January2022 it received the information from Elektrownia Ostrołęka Sp. z o.o.("Company") about the termination by the Company, as of the same day, ofthe contract to fulfil the capacity obligation contracted by the Companyas a result of the outcome of the capacity market auction for 2023("Contract"), which was reported by the Issuer in a current report No.53/2018 of 21 December 2018.

Under Article 47b(3) of the Capacity Market Act of 8 December 2017("Act"), a capacity contract is terminated upon identifying capacitycontracts which meet the criteria laid down in the Act to the operator,Polskie Sieci Elektroenergetyczne S.A. ("PSE").

Today, the Company has identified to PSE two capacity contracts meetingthe criteria laid down in the Act, entered into by CCGT Ostrołęka Sp. zo.o. and CCGT Grudziądz Sp. z o.o., as contracts referred to in Article47b(3)(1) and (2) of the Act.

As a result of the identification of the above-mentioned capacitycontracts, the financial security provided by the Company in the amountof PLN 36.6 million is released and contractual penalties, if any, areforgiven. At the same time the Issuer reports that as at the date oftermination of the Contract no contractual penalties had been charged onits basis and the Issuer had not recognized any provisions for suchpotential penalties.

The termination of the Contract is the consequence of changing the powersource from coal to gas in the Company's project to build and operate anew power plant in Ostrołęka.