1 Regulatory trends in Poland Energy Regulatory Office Department for Promotion of Competition 16th September 2009

2 Main developments I. Situation at wholesale electricity market II. New rules for Balancing Market III. Project of new Energy Policy IV. Privatisation process

3 I. Situation at wholesale electricity market - prices Decrease of electricity prices on wholesale market was noticed: Source: The Energy Market Agency. 1st quarter of 20092nd quarter of 2009 Change % zł/MWh€/MWh*zł/MWh€/MWh Sale from public power plants 206,1349,90188,7545,69-8,43 Sale for incumbent suppliers – former distribution companies213,7851,75196,8047,64-7,94 * * Monthly average rate of Eur in August 2009 by National Bank of Poland

4 I. Situation at wholesale electricity market – demand for electricity & generation capacities National consumption of electricity [GWh] Source: TSO

5 I. Situation at wholesale electricity market – demand for electricity & generation capacities National average demand [MW] Source: TSO

6 II. New Balancing Market rules Since January 1st of 2009 new Balancing Market rules are in force, among main changes are:  Modification of pricing rules for forced generation of electricity for balancing purposes,  Modification of pricing rules for start up of active Generation Units,  Introduction of marginal prices mechanism for determining values of deviations,  Modification of pricing rules for generation constrains and for electricity in failure situations,  Modification and extension of a scope of information published by TSO,  Setting of specific rules for wind power plants participation in Balancing Market.

7 II. New Balancing Market rules Since December 1st, 2009 possibility for intra-day submission of commercial schedules to Balancing Market will be launched into operation.

8 III. Draft of new Energy Policy of Poland till 2030 Main goals of draft Polish Energy Policy:  Improvement of energy efficiency,  Security of fuels and electricity supplies,  Introduction of nuclear power industry,  Development of competitive power market,  Limitation of power industry impact on environment.

9 IV. Privatisation Current privatisation plan is an updated version of a plan from Appril Among the most important assumptions of this plan are:   Conclusion of ENEA S.A. privatisation which was introduced at Warsaw Stock Exchange (WSE) in November 2008 (sale of controlling share),   Sale of PGE S.A.s’ 10% of shares via WSE in 2010,   Sale of minority share of TAURON S.A. in 2010 via WSE or negotiations,   Sale of controlling share of Energa S.A. in 2010 via negotiations,

10 Thank you for your attention !