Current Report No.: 19/2021

Title: Information on the administrative proceedings launched against the ENEA Elektrownia Połaniec S.A.
Date: 2021.24.06
Report no.:  Current Report No.: 19/2021

Current Report No.: 19/2021

Date of Preparation: 24 June 2021

Issuer's Abbreviated Name: ENEA S.A.

Legal Basis: Article 17(1) of the Market Abuse Regulation - confidential information

Subject: Information on the administrative proceedings launched against the ENEA Elektrownia Połaniec S.A.

Body of the report:

The Management Board of ENEA S.A. ["Issuer"] hereby reports that on 24 June 2021 it received information that on the previous day its subsidiary, ENEA Elektrownia Połaniec S.A. ["EEP"], received information from the Minister of Climate and Environment that administrative proceedings have been launched ex officio in the matter of public aid received by EEP till 2016 in the form of CO₂ emission allowances for completing power unit modernization projects in 2013-2016 [tasks included in the National Investment Plan].

The Issuer notes that the proceedings concern the period, in which EEP was owned by the ENGIE Group [ENGIE International Holdings B.V.].

The approximate amount of public aid obtained at that time, understood as the sum of allowance prices on the dates when the respective tranches of allowances were awarded in the above years, is estimated at about PLN 170 million. According to its best knowledge, EEP recognizes that, despite the disparity resulting from the fact that the modernized units consume a fuel mix that is different from the one initially assumed, the environmental effect of the investments has been achieved and the environmental effect of the above investment was also confirmed by an external independent auditor in 2016 and 2017.

The Issuer also notes that in the event that EEP's arguments are not accepted, it has identified a potential risk that EEP may have to return the public aid it received in its full amount.

The Issuer explains that it will take all available legal measures to resolve this issue. The Issuer will report on events related to these proceedings in appropriate reports.

Having in mind the diverse and international nature of Enea SA's shareholding, and also the provisions of the Best Practices of WSE Listed Companies, Enea SA guarantees the availability of its website also in English. In case of any interpretation doubts and discrepancies between the Polish and English versions, the Polish version shall prevail.