Initial review and recommendations from industry experts to establish a government-controlled entity that will integrate coal-fired power plants operating in Poland and accelerate the development of RES.

Początek prac koncepcyjnych w spółkach dotyczących możliwości wydzielenia aktywów węglowych.

Approval by the Polish government of the2040 Polish Energy Policy. PEP2040 sets objectives for the energy sector and changes in the energy mix. The policy includes a phase out of high-carbon electricity generation in coal-fired units to be replaced by low- and zero-emission sources. The implementation of PEP2040, which is in line with the EU energy policy, is expected to lead to the achievement by Poland of the objectives arising from the accepted international commitments to reduce CO2 emissions by 2050.

The government lists a project to separate coal assets from power companies in its published legislative agenda. The project is led by the Ministry of State Assets and is part of the Polish electricity sector transformation.

Consultations on the electricity sector transformation programme developed in the Ministry of State Assets.

Review of theconsultation feedback and incorporation of proposals in the current draft document on NABE.

Representatives of the four largest capital groups in the power sector, PGE, Tauron, Enea and Energa, concluded an agreement with the Minister of State Assets, which triggered the next phase of the power industry transition in Poland. The purpose of the agreement is to define the terms and conditions of the coal asset spin-off and integration into NABE, and to support the development of the best operating model for the new agency.

Internal restructuring to enable separation and due diligence of coal assets owned by PGE, Tauron, Enea and Energa. A uniform approach to restructuring is facilitated by the selection of one advisor to cover all the entities and the resulting reduction of the transaction cost.

Preliminary outline of the social agreement between the government, the energy sector and the unions stipulates thatthe transfer of assets must not result in losses in energy groups, and that employees covered by the reform must receive employment guarantees and a jointly developed benefits package.

KPMG Advisory is selected to advise PGE, Tauron, Enea and Energa on the spin-off of their coal assets to NABE.

Komitet Ekonomiczny Rady Ministrów przyjmuje program transformacji sektora elektroenergetycznego zakładający utworzenie NABE wraz z rekomendacją dalszych prac nad projektem.

The Economic Committee of the Council of Ministers adopts the electricity sector transformation programme that includes the proposed establishment of NABE with a recommendation for further work.

Komitet Ekonomiczny Rady Ministrów przyjmuje program transformacji sektora elektroenergetycznego zakładający utworzenie NABE wraz z rekomendacją dalszych prac nad projektem.

The Council of Ministers adopts The Transformation of the Power Sector in Poland. The Spin-off of Generation Coal Assets from Companies with State Treasury Shareholding. The document proposes the establishment of the National Energy Security Agency.

Completion of NABE Strategy and transaction structure.

Start due diligence.

The agreement signed at the Ministry of State Assets includes guarantees for employees at companies affected by the energy transition and the establishment of NABE.

Zgodnie z podpisaną w grudniu 2022 r. umową społeczną, osłony dla pracowników branż objętych transformacją stanowią gwarancje w ramach procesu tworzenia NABE.

According to a social agreement signed in December 2022, social safeguards for employees in industries affected by the transition constitute guarantees in the framework of the NABE establishment process.

Minister of State Assets representing the State Treasury makes an unbinding offer to PGE, Enea, Tauron and Energa presenting financial terms of acquiring coal generation assets to establish NABE.

The State Treasury will cover 70 per cent of NABE financial liabilities by its guarantee programme. This will not include interest or other cost items. The guarantee will only cover capital.

Three types of financial instruments will be guaranteed for NABE:

Revolving credit facility, long-term loan;

Pre-settlement limits for the purchase of CO2 emission allowances and the currency relevant for the transaction. The guarantee period will be eight years since the inception of NABE.