PGE Polska Grupa Energetyczna S.A.

Regulatory Filings • Jul 28, 2020

Notification about proposal submitted by the general contractorconcerning changes of scheduled date of finalization of unit 7 in TurówPower Plant

The Management Board of PGE Polska Grupa Energetyczna S.A. ("PGE")notifies about information obtained today from Company's subsidiary -PGE Górnictwo i Energetyka Konwencjonalna S.A. which received a proposalregarding change of scheduled date of finalization of unit 7 in TurówPower Plant, i.e. investment being realized by consortium includingcompanies: Mitsubishi Hitachi Power Systems Europe GmbH (Consortiumleader), Tecnicas Reunidas S.A. and Budimex S.A. (the "Consortium"). Theproposal submitted by Consortium involves change of the investmentrealization schedule (the "Schedule"), and shall result in postponing ofthe planned commissioning of unit 7 from October 31, 2020 to April 30,2021.

Proposal of changes to the Schedule submitted by the Consortium will bethoroughly analyzed for the methodic accuracy of assumptions taken,reasons for delay and planned methods of further management of thecontract execution. The analysis aims to result in evaluation ofcorrectness of estimates made by the Consortium regarding the delay ofcommissioning of unit 7 and consequences of the postponing ofaforementioned date. The Management Board of PGE notifies that theagreement for the construction of the new unit in Turów power plantsigned on July 15, 2014, contains - as a standard course of action -contractual penalty clause in specified cases. Parties to the agreementwill analyze precise reasons for the delay also for possible penaltyclauses.