The information concerning detailed principle I.Z.1.11 of the Best Practices of WSE listed companies 2016

Pursuant to § 18 (1) (4) of the Company’s Statutes selecting a certified auditor responsible for auditing the Company's separate financial statements and the PGE Capital Group's consolidated statements is the competence of the Supervisory Board of PGE Polska Grupa Energetyczna S.A. Pursuant to § 22 (1) ( a) of the Regulations of the Supervisory Board, the selection of the Company's certified auditor is made by the Supervisory Board on the basis of the recommendations concerning the selection and remuneration of the Company's certified auditors presented by the Audit Committee. PGE Polska Grupa Energetyczna S.A. does not have formal rule of changing the company authorised to audit financial statements, while it conducts competitive proceedings for provision of auditing services, open to all eligible entities.

On September 9, 2014, the Supervisory Board of PGE has appointed KPMG Audyt spółka z ograniczoną odpowiedzialnością sp. k. with its registered office in Warsaw as an entity entitled to audit financial statements, with which PGE intends to sign the agreement for audit of financial statements. The scope of the agreement includes audit of stand-alone financial statements and consolidated financial statements of the capital group for periods ended December 31, 2014-2016 and review of interim condensed stand-alone financial statements and consolidated financial statements of the capital group for periods ended June 30, 2015-2017. The Supervisory Board has taken its decision concerning selection of the entity entitled to audit financial statements, in accordance with binding regulations and professional standards.

KPMG Audyt sp. z o.o. (a company, which is a working partner of KPMG Audyt spółka z ograniczoną odpowiedzialnością sp. k.) provided its services to PGE with regard to audit of stand-alone financial statements and consolidated financial statements of the capital group for periods ended December 31, 2010-2013, review of interim condensed stand-alone financial statements and consolidated financial statements of the capital group for periods ended June 30, 2011-2014 as well as with regard to review of interim consolidated financial statements for the period from January 1, 2014 to March 31, 2014.