Current Report No. 47/2018

Date: 20.11.2018

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

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

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

Total revenues of the ENERGA Group from the capacity market in the years 2021-2025 may amount to PLN 797 m, including:

1) PLN 703 m may constitute the revenues of modernized entities (with a 5-year capacity contract), whereas the price of the capacity obligation for long-term capacity contracts will be subject to an annual indexation of the average annual consumer price index.

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

The auction closing price provided does not constitute the final capacity auction result. The final results of the capacity auction shall be announced by the President of the Energy Regulatory Office in the Public Information Bulletin on his website, on the first working day following the 21st day after the end of the capacity auction. Until then, all contracts of sale of capacity obligations are conditional.

Only if the final auction results differ from the interim results, will Energa S.A. publicly announce adjusted data.