Current report No.: 17/2010

Title: The conclusion by Elektrownia Kozienice S.A. of a long-term agreement for the provision of coal for energy purposes
Date: 2010.05.03
Report no.:  Current report No.: 17/2010

Current report No.: 17/2010

Date prepared: 05 March 2010

Short name of issuer: ENEA S.A.

Subject: The conclusion by Elektrownia Kozienice S.A. of a long-term agreement for the provision of coal for energy purposes

Legal basis: Article 56 par. 1 pt. 2 of the Act on Offerings – current and periodic information

Content of report:

Acting pursuant to Clause 5 par. 1.3 of the Regulation of the Minister of Finance on current and periodic information published by issuers of securities of 19 February 2009, the Management Board of ENEA S.A. (the Issuer) announces that, on 4 March 2010, the Management Board of Elektrownia Kozienice S.A. signed an agreement with the company Lubelski Węgiel “Bogdanka" S.A. on the provision of coal for energy purposes, binding from 4 March 2010 to 31 December 2025 (the Agreement). The Agreement provides for deliveries to commence in the first quarter of 2011, and the estimated value of the Agreement, calculated according to supply prices for the current year, amounts to PLN 10,432,000,000. The Agreement provides for the conclusion of yearly agreements specifying: quantity by volume, delivery schedules, supply prices, and questions concerning delivery logistics and settlements during the period covered by the Agreement. The Agreement provides for a two-year termination notice period. Contractual penalties for non-accepted or undelivered amounts of coal as resulting from the delivery schedules are provided in the amount of 20 per cent of the value of non-accepted or undelivered coal, where either party may pursue additional compensation under general principles if the contractual penalty does not cover the damage caused.

The remaining conditions of the Agreement do not diverge from market standards applied in this type of agreement.

The Agreement is recognised as a material agreement because its value exceeds ten per cent of the Issuer's equity.

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