Decision of the ERO President concerning annual adjustment of LTC compensations for 2016

The Management Board of PGE Polska Grupa Energetyczna S.A. (“PGE”) discloses, that it has received information about decision of the President of the Energy Regulatory Office (the "ERO President") concerning the annual adjustment of the stranded costs for the year 2016, which is due to certain generators from PGE Capital Group according to the Act of June 29, 2007 on coverage of stranded costs resulting at generators in relation to accelerated termination of long-term contracts ("LTC Act").

According to the decision of the ERO President, annual adjustment of the stranded costs generated in PGE Górnictwo i Energetyka Konwencjonalna S.A. for the year 2016 amounts to approximately PLN (+)276 million.