wiadomosć espi ENERGA S.A. 2024-01-19 16:52

Current Report No. 1/2024

Date: 19 January 2024

Subject: Information on the necessity to create a provision for electricity sale agreements for the G tariff groups not covered by the President of ERO tariff

Legal basis: Article 17 (1) of MAR - inside information

Management Board of Energa SA (“Issuer”) informs that on 19 January 2024 it received the information from the subsidiary Energa Obrót SA (“Company”) on the necessity to create a provision for the electricity sale agreements for the G tariff groups not covered by the President of Energy Regulatory Office tariff (“Customers”), which results from the entry into force of the Act of 7 December 2023 amending acts to support consumers of electricity, gas fuels and heat ("Act"). The main goal of the Act is to limit the impact of increases in electricity, gas and heat prices on the most sensitive recipients of these products in the first half of 2024.

The Company evaluated the impact of the Act and identified a potential loss due to the performance of contracts with Customers in the first half of 2024, which as at 19 January 2024 is estimated at PLN 252.1 million, and results in the creation of a provision in the financial statements for 2023. The above event will translate directly into a decrease by the above-mentioned amount in the consolidated EBITDA (operating profit before amortization and impairment of non-financial non-current assets) of the Issuer's Capital Group. From the perspective of 2023, the above event is of a non-cash nature.

The Issuer stipulates that the amount of the provision will be audited by the auditor and may be subject to change, and its final amount will be included in the consolidated financial statements of the Energa Group for 2023.