Current Report No. 13/2016

Topic: Information on a material agreement executed between its subsidiary ENERGA-OPERATOR SA and Polskie Sieci Energetyczne SA

Legal grounds: Art. 56 section 1 pt. 2 of the Act on Offerings – current and periodic information

The Management Board of Energa SA (“Company”, “ENERGA”, “Issuer”) reports that in connection with the signing on 23 March 2016 by its subsidiary ENERGA-OPERATOR SA (“EOP”) and Polskie Sieci Energetyczne SA („PSE”) of a document specifying the detailed rules for cooperation between EOP and PSE and the security related thereto, cooperation between these entities was launched (“Agreement”) as of this very same date. The subject matter of this Agreement is in particular the provision of electricity transmission services encompassing domestic transmission services and electricity cross-border exchange services rendered by PSE for EOP. This Agreement has been concluded for an indefinite term. The estimated value of the Agreement over a one year period is PLN 916 million, corresponding to PLN 4,580 million over a five year period.

The Agreement does not contain contractual penalty clauses but for non-performance or improper performance of the Agreement its parties are vested in the right to rebates and fees according to the pertinent tariff approved by the President of the Energy Regulatory Office (Tariff). The parties bear liability according to the general rules in cases other than specified in the Tariff.

The remaining terms and conditions of the Agreement, including the ones referring to the ability to terminate or rescind it, do not deviate from the market standards applied in these types of agreements.

At the same time, the Company reports that in connection with commencing cooperation according to the rules prescribed by the Agreement, the agreement in force to date for the provision of electricity transmission services executed by and between EOP and PSE on 29 August 2007, which was described in the Company’s Prospectus approved by the Polish Financial Supervision Authority on 15 November 2013, has expired.

The Company also reports that besides the aforementioned Agreement, companies belonging to the ENERGA Group have executed agreements with PSE worth a total of PLN 210 million in the last 12 months.

This Agreement has been deemed to be material as its estimated value exceeds 10% of the Company’s equity.