Verdict of the Supreme Court in case of the settlement of value of annual adjustment of the stranded costs (so-called LTC compensations) for 2008 for Opole power plant

In connection with the current report no. 70/2013 dated July 26, 2013 about dismissal the appeal of the Energy Regulatory Office President (the “ERO President”) regarding the settlement of value of annual adjustment of the stranded costs (so-called LTC compensations) for 2008 for PGE GiEK S.A. Branch Opole Power Plant, the Management Board of PGE Polska Grupa Energetyczna S.A. (the “Company”, “PGE”) discloses that on March 14, 2017 the Supreme Court, as a result of examination of a cassation appeal by the ERO President against the above mentioned verdict of the Court of Appeal, issued a verdict in case of the settlement of value of annual adjustment of the stranded costs for 2008 for Opole power plant.

In its verdict the Supreme Court set the amount of annual adjustment of LTC compensations for approximately PLN (+) 129.1 million. As a result of the above verdict, PGE GiEK S.A. will return approximately PLN 5.9 million to Zarządca Rozliczeń S.A. (company responsible for LTC settlements). The verdict has no impact on the consolidated revenues of the current period. The above verdict of the Supreme Court ends the dispute between PGE GiEK S.A. and the ERO President in that particular case.