TAURON Polska Energia : Current Report No. 31/2018

20.11.2018 19:00

In reference to current report no. 30/2018 of November 15, 2018 TAURON Polska Energia S.A. ('Company', 'TAURON') announces that on November 20, 2018 Polskie Sieci Elektroenergetyczne S.A. ('PSE') provided the preliminary results of the capacity market main auction conducted on November 15, 2018, as part of the capacity market mechanism ('Auction').

In accordance with the information published by PSE the Auction's closing price reached 240.32 PLN/kW/year, and TAURON Group's companies concluded capacity agreements for the total volume of capacity obligations amounting to 2,672.5 MW, including the agreements for:

a) 17 years (i.e. for 2021-2037) with the capacity obligation of 4.7 MW, under which the annual revenue estimated by the Company will reach PLN 1.12 million,

b) 15 years (i.e. for 2021-2035) with the capacity obligation of 768 MW, under which the annual revenue estimated by the Company will reach PLN 184.57 million,

c) 5 years (i.e. for 2021-2025) with the capacity obligation of 1,474 MW, under which the annual revenue estimated by the Company will reach PLN 354.23 million,

d) 1 year (i.e. for 2021) with the capacity obligation of 425.8 MW, under which the annual revenue estimated by the Company will reach PLN 102.34 million.

Taking the above into account the Company estimates that TAURON Group's revenue from the Auction will reach:

a) in 2021: PLN 642.25 million,

b) in 2022-2025: PLN 539.92 million per year,

c) in 2026-2035: PLN 185.69 million per year,

d) in 2036-2037: PLN 1.12 million per year.

In accordance with the act of December 8, 2017 on the capacity market, the final results of the Auction will be announced by the President of the Energy Regulatory Office in the Bulletin of Public Information (Biuletyn Informacji Publicznej) on its website, on the first working day following the 21st day from the day of closing the Auction, i.e. on December 7, 2018. Under the above act, until the final results of the Auction are announced, TAURON Group's companies' capacity agreements are concluded under a suspending condition.

In case the final results of the Auction differ significantly from the preliminary results of the Auction, based on which the Company calculated its estimated revenue from the Auction, the Company will disclose the accordingly adjusted data.

Legal basis: art. 17, clause 1 of MAR - inside information