Identification of the need to create a provision in the consolidatedfinancial statements of PGE Capital Group

The Management Board of PGE Polska Grupa Energetyczna S.A. (the"Company", "PGE") discloses that on October 17, 2023 it was informed bythe subsidiary - PGE Obrót S.A. - about identification of the need tocreate a provision in connection with the implementation of theRegulation of the Minister for Climate and Environment of September 9,2023 amending the regulation on shaping and calculation of tariffs andmethods of settlement in trading in electricity (the "Regulation"). TheRegulation introduces the mechanism enabling reduction of households'liabilities towards electricity trading companies in settlements for theyear 2023. On the basis of the Regulation the amount of the payments forthe purchase of electricity in 2023 by the customer from G11 tariffgroup, that uses electricity for household needs and who fulfils one ofthe requirements specified in the Regulation, is to be reduced by PLN125.34.

PGE Obrót S.A. has identified the need to create a provision in amountof PLN 291 million in the financial statements for the period endedSeptember 30, 2023 what will translate into decrease of the PGE CapitalGroup's EBITDA in the same amount. The provision was estimated based onthe number of customers fulfilling at least one of the conditions setout in the Regulation as of September 30, 2023. The final value of theprovision will be presented in the consolidated quarterly report for thethird quarter of 2023 which will be published by PGE on November 21,2023. The above estimates reflect the Company's knowledge about thelegal status as at the date of publication of this report.

Final impact of the Regulation on the consolidated financial results ofthe PGE Group for year 2023 will depend on the ultimate number ofcustomers subject to the mechanism enabling reduction of households'liabilities towards PGE Obrót and on the potential amendments in thelegal provisions.