Energa S.A.

Report Publication Announcement • Dec 31, 2019

Current Report No. 39/2019

Date: 31 December 2019

Subject: Decision to create a provision in the Sales Business Line inconnection with the approval by the President of the Energy RegulatoryOffice of the tariff for electricity for customers of the G tariffgroups for 2020

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

Management Board of Energa SA ("Company") hereby informs that on 31December 2019 it received the information about creation of a provisionin the Sales Business Line for the electricity sale agreements for the Gtariff groups for 2020.

On 30 December 2019 the President of the Energy Regulatory Officeapproved the electricity sales price for consumers in the G tariffgroups for 2020 for Energa-Obrót SA (a wholly owned subsidiary of EnergaSA) at an average level of PLN 289.37 per MWh.

Due to the fact that the aforementioned approved price does not fullycover the legitimate costs of electricity sold in the G tariff groups,in accordance with IAS 37 (Provisions, Contingent Liabilities andContingent Assets) in the Sales Business Line, a provision for onerouscontracts in the amount of PLN 125 million has been created.

The Company stipulates that the amount of the provision will be auditedby a certified auditor and may be subject to change, and its finalamount will be included in the financial statements of the EnergaCapital Group for 2019.