Energa S.A.

Legal Proceedings Report • Dec 24, 2018

Title: Results of the capacity market auction for 2023 published byPolskie Sieci Elektroenergetyczne S.A.

Date: 24th of December 2018

Report no.: Current report no. 54/2018

Legal basis: Article 17(1) MAR - confidential information

Following report no. 53/2018 dated 21 December 2018, the ManagementBoard of ENERGA announces that on 22nd of December 2018 Polskie SieciElektroenergetyczne S.A. published initial result of the capacity marketmain auction for 2023, including the closing price for the capacityauction which is 202.99 PLN/kW/annum.

- The Energa Group companies concluded capacity agreements for 1 year(ie for 2023) with a capacity obligation of 477 MW, under which thetotal revenues may amount to PLN 96.8 million.

- Elektrownia Ostrołęka Sp. z o.o. ("Company"), in which Energa S.A.holds 50% of shares and the same number of votes at the shareholders'meeting, concluded capacity agreement for 15 years with a capacityobligation of 853 MW, under which the revenues may amount to PLN 173million per one year, starting form year 2023 (revenues over a period of15 years, may amount to PLN 2 596 million), whereas the price of thecapacity obligation for long-term capacity contracts will be subject toan annual indexation of the average annual consumer price index.

The auction closing price provided does not constitute the finalcapacity auction result. The final results of the capacity auction shallbe announced by the President of the Energy Regulatory Office in thePublic Information Bulletin on his website, on the first working dayfollowing the 21st day after the end of the capacity auction. Untilthen, all contracts of sale of capacity obligations are conditional.

Only if the final auction results differ from the interim results, willEnerga S.A. publicly announce adjusted data.