Information about approval of G tariff for PGE Obrót and necessity tocreate provision in Supply segment

The Management Board of PGE Polska Grupa Energetyczna S.A. ("PGE", the"Company") discloses that on December 15, 2023 the President of theEnergy Regulatory Office (the "ERO President") approved the electricitysale price for G tariff off-takers for year 2024 for PGE Obrót S.A.(PGE's subsidiary) at an average level of PLN 739.35 per MWh (priceexcluding value added tax and excise tax).

The approved tariff does not fully cover justified and incurred by PGEObrót S.A. costs of electricity purchase, which take into account theprofile of consumption by customers.

Accordingly, the Company has evaluated the impact of the value ofapproved tariff on its operations and has identified a potential loss inthe Supply segment due to non-recognition by the ERO President ofincurred costs of electricity purchase that - as at the publication dateof this report - is estimated at approx. PLN 860 million.

In view of the above, PGE Obrót S.A. intends to submit at the earliestpossible date an application to the ERO President for change of G Tariff.

Lack of coverage of costs will result in the creation in theconsolidated financial statements of the PGE Capital Group for 2023 of aprovision for onerous contracts (based upon IAS 37 Provisions,Contingent Liabilities and Contingent Assets). The Company, along withthe auditor, will be analysing influence of the above on theconsolidated results of the PGE Group in accordance with theInternational Accounting Standards. Value of the provision will bepresented in the periodic report of the PGE Capital Group for year 2023.