Energa S.A.

Legal Proceedings Report • Nov 20, 2018

Current Report no. 47/2018

Date drawn up: 20.11.2018

Subject: Results of the capacity market auction for 2021 published byPSE S.A.

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

Following report no. 46/2018 dated November 15, 2018 (adjusted bycurrent report no. 46/2018/K), the Management Board of ENERGA S.A.announces that on November 20, 2018 PSE S.A. published initial result ofthe capacity market main auction for 2021, including the closing pricefor the capacity auction which is 240.32 PLN/kW/annum.

Total revenues of the ENERGA Group from the capacity market in the years2021-2025 may amount to PLN 797 m, including:

1) PLN 703 m may constitute the revenues of modernized entities (with a5-year capacity contract), whereas the price of the capacity obligationfor long-term capacity contracts will be subject to an annual indexationof the average annual consumer price index.

2) PLN 94 m may constitute the revenues of the existing entities andentities with reduction in demand (with a 1-year capacity contract)

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.