Notification about proposal submitted by the general contractor concerning changes of scheduled date of finalization of unit 7 in Turów Power Plant

The Management Board of PGE Polska Grupa Energetyczna S.A. (“PGE”) notifies about information obtained today from Company’s subsidiary - PGE Górnictwo i Energetyka Konwencjonalna S.A. which received a proposal regarding change of scheduled date of finalization of unit 7 in Turów Power Plant, i.e. investment being realized by consortium including companies: Mitsubishi Hitachi Power Systems Europe GmbH (Consortium leader), Tecnicas Reunidas S.A. and Budimex S.A. (the “Consortium”). The proposal submitted by Consortium involves change of the investment realization schedule (the “Schedule”), and shall result in postponing of the planned commissioning of unit 7 from October 31, 2020 to April 30, 2021.

Proposal of changes to the Schedule submitted by the Consortium will be thoroughly analyzed for the methodic accuracy of assumptions taken, reasons for delay and planned methods of further management of the contract execution. The analysis aims to result in evaluation of correctness of estimates made by the Consortium regarding the delay of commissioning of unit 7 and consequences of the postponing of aforementioned date. The Management Board of PGE notifies that the agreement for the construction of the new unit in Turów power plant signed on July 15, 2014, contains - as a standard course of action - contractual penalty clause in specified cases. Parties to the agreement will analyze precise reasons for the delay also for possible penalty clauses.