PGE Polska Grupa Energetyczna S.A.

Regulatory Filings • Jan 3, 2020

Information about approval of G tariff for PGE Obrót and creation ofprovision in Supply segment

The Management Board of PGE Polska Grupa Energetyczna S.A. ("PGE", the"Company") discloses that on January 3, 2020 the President of the EnergyRegulatory Office approved the electricity sale price for G tariffoff-takers for PGE Obrót S.A. (PGE's subsidiary) at an average level ofPLN 289.37 per MWh. G tariff will be binding from January 18 to March31, 2020.

Accordingly, based upon IAS 37 Provisions, Contingent Liabilities andContingent Assets, a need was identified in Supply segment to createprovision for onerous contracts. The value of the provision, estimatedfor whole year 2020, will be recognised in the fourth quarter of 2019 inthe amount of approx. PLN 220-260 million. At the same time PGE reservesthat the value of the provision may change and its final value will bepresented in the periodic report of the PGE Capital Group for year 2019.

The Company, along with the auditor, will be analysing influence on theconsolidated result of the PGE Group according to the InternationalAccounting Standards.