The Court of Appeal in Warsaw dismissed the appeal of the ERO President regarding the settlement of value of annual adjustment of the stranded costs (so-called LTC compensations) for 2009 for PGE GiEK S.A. Branch Elektrociepłownia Rzeszów

The Management Board of PGE Polska Grupa Energetyczna S.A. discloses that on June 6, 2014 the Court of Appeal in Warsaw dismissed the appeal of the President of the Energy Regulatory Office (the “ERO President”) against a judgement of the Regional Court in Warsaw – the Court of Competition and Consumer Protection (the “CCCP”) of March 18, 2013 regarding the settlement of value of annual adjustment of the stranded costs for 2009 for PGE GiEK S.A. Branch Elektrociepłownia Rzeszów due as a result of the termination of long-term contracts of sale of capacity and electricity (so-called “LTC compensations”). The judgement is final and binding. However the ERO President is entitled to file a cassation appeal with the Supreme Court.

The claim value in the PGE GiEK S.A. Branch Elektrociepłownia Rzeszów case, calculated as a difference between the amount of annual adjustment calculated by the company from PGE Capital Group and the amount settled by the ERO President in decision, amounted to approximately PLN 45 million. The total claim value of disputes concerning LTC compensations for 2009 due to generators from the PGE Capital Group amounts to PLN 672.9 million.

Legal ground: Art. 56 section 1 point 1 of the Act on public offering, conditions governing the introduction of financial instruments to organised trading, and public companies (Dziennik Ustaw 2009 no 185, item 1439, as amended).