Tauron Polska Energia S.A.

Report Publication Announcement • Dec 9, 2018

Current Report No. 35/2018

Preliminary results of the capacity market main auction for 2022provided by Polskie Sieci Elektroenergetyczne S.A.

In reference to the current report no. 34/2018 of December 5, 2018,TAURON Polska Energia S.A. ("Company", "TAURON") announces that onDecember 7, 2018 Polskie Sieci Elektroenergetyczne S.A. ("PSE") providedpreliminary results of the main power auction conducted on December 5,2018 as part of the power market mechanism ("Auction").

In accordance with the information published by PSE, the Auction'sclosing price reached 198.00 PLN/kW/year and TAURON Group's companiesconcluded capacity agreements for 1 year (i.e. for 2022) for a totalvolume of capacity obligations amounting to 422.23MW. The Companyestimates that revenue from the Auction will reach PLN 83.6 million in2022.

Pursuant to the act of December 8, 2017 on the capacity market, finalresults of the Auction will be announced by the President of the EnergyRegulatory Office in the Bulletin of Public Information (BiuletynInformacji Publicznej) on its website, on the first business dayfollowing the 21st day from the day of closing the Auction. Under theabove act, until the final results of the Auction are announced, TAURONGroup's companies' capacity agreements are concluded under a suspendingcondition.

In case the final results of the Auction differ significantly from thepreliminary results of the Auction, based on which the Companycalculated its estimated revenue from the Auction, the Company willdisclose the accordingly adjusted data.

Legal basis: art. 17, clause 1 of MAR - inside information