Current Report No. 39/2018

Estimated results of the capacity market main auction for 2023

TAURON Polska Energia S.A. ("Company") announces that on December 21,2018 TAURON Group companies participated in the capacity market mainauction for the 2023 delivery period ("Auction") organized as part ofthe capacity market mechanism introduced by the Act of December 8, 2017on the capacity market (the "Act").

According to the Company's estimates, the Auction closing price will bewithin the 189.95 to 217.06 PLN/kW/year range, and TAURON Group'srevenue from the capacity market calculated on the basis of the aboveclosing prices of the Auction will reach the level of PLN 74.69 millionto PLN 85.36 million in 2023.

Pursuant to the Act, the preliminary results of the Auction will bepublished by Polskie Sieci Elektroenergetyczne ("PSE") within 3 businessdays, i.e. by December 28, 2018 while the final results of the Auctionwill be announced by the President of the Energy Regulatory Office inthe Bulletin of Public Information (Biuletyn Informacji Publicznej) onits website on the first business day following the 21st day from theday of closing the Auction.

The capacity market main auction for the year 2023 referred to above,was the third auction organized in accordance with the Act. The Companyannounced the preliminary results of the capacity market main auctionfor the delivery period:- 2021 - in current report no. 31/2018 ofNovember 20, 2018,- 2022 - in the current report no. 35/2018 ofDecember 7, 2018.

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