HISTORICAL SKETCH

The history of Elektrociepłownia Będzin dates back to the year 1909 when Mining-Industrial Association “Hrabia Renard” (Earl Renard) received a licence for generation and sale of electrical energy for houselholds and street lighting in the town of Sosnowiec. After receiving the licence Association “Hrabia Renard” built a small plant for direct electrical current in Sosnowiec. This plant was then sold in 1911 to Share Association “Sosnowiec Electricity Station”.

In 1913 a construction of the greater plant was begun in the area of the Małobądz province, with the power of 10 MW. The first turbine-set of the 5 MW and two steam boilers were established in 1916. In the interwar period, the further activities connected with the development and expansion of plant` s power were continued.

In 1922 the plant accepted the name “Regional Plant in Zagłębie Dąbrowskie” and was included in the structure of the concern of Spółka Akcyjna "Siła i Światło" (“Power and Light” Plc.) in Warsaw, which began supplying electricical energy to Spółka Akcyjna “Tramwaje Zagłębia Dąbrowskiego” ("Trams of Zagłębie Dąbrowskie” Plc.) in the year of 1928.

In the years 1939-1943 “Regional Plant in Zagłębie Dąbrowskie” S.A. in Będzin was under the authority of Schlesische Elektrizitatswerke AG with their seat in Katowice, which was then changed to Energieversorgung Oberschlesien AG with the seat in Katowice. The new management initiated a dynamic expansion: a Skoda turbine-set of 17,2 W was installed together with a Wiesner boiler with 50t/h capacity; a machine room was developed, a railway bridge on Przemsza river was built and a chimney of 135m height was erected. It is important to point out that the year 1943 began a period of wasteful and intensive exploitation of generating facilities in the plant.

After military actions had been finished, the damages were being removed and in 1949 the Plant in Małobądz was already among the three best functioning plants in Poland while in 1954 it was appointed the best one.In the 60s, due to the fact that new plants of higher technical parameters were being built, demand for generated power was limited to intermediate load, and then only to peak load operation. In order to maintain the plant`s existence efforts were made to use all installed heat power and change the plant`s function.

After small adaptations the plant started to transfer heat energy in the form of technological steam to factories in the area, and in the form of hot water for heating to city dwellers. In that time, numerous steam pipes were built in the area of Będzin and Sosnowiec, creating the beginning of heating system there. In 1965 the plant was merged with Zakład Energetyczny (Power Distribution Company) in Będzin as the Production Department, which decreased its value.However, it was the resolution no. 128 from 17.07.1969 of the Council of Ministers to extend Power Plant "Będzin" that stimulated the development of the plant. In years 1970-1980 new hot water and steam boilers and the heat and power turbine set with accompanying facilities were set to work. In that time Zakłady Energetyczne Okręgu Południowego (Power Distribution Companies of the South District) separated Elektrociepłownia „Będzin” from Zakład Energetyczny (Power Distribution Company) in Będzin. Zespół Elektrociepłowni Górnośląskich (The Upper Silesian Plants Consortium) located in Chorzów was established.

In the years 1989-1990 Elektrociepłownia "Będzin" was the part of Zespół Elektrociepłowni Katowice (Katowice Plants Consortium).On the 1st of July, 1990 Elektrociepłownia "Będzin" became the independent state-owned entity again.

On the 1st of April, 1993 the entity was transformed into a joint-stock company in 100% owned by the State Treasury, called Elektrociepłownia "Będzin" S.A.

In the years 1994-1996 the first stage of restructurisation was conducted, based mainly on separating service and supplementary activities realised by the Company and creating independent economic entities according to trade law. The idea of privatisation invented by the Company was firstly accepted by the Minister of Industry and Trade in 1996.

In December 1997 in co-operation with the privatisation advisor appointed by the tender, consortium lead by Bank Gospodarki Żywnościowej Spółka Akcyjna (Food Economy Bank Plc.) in Warsaw, the Issue Prospectus was submitted to the Securities and Stock Exchange Committee. In January 1998 the Elektrociepłownia "Będzin" S.A. privatisation project was accepted by The Council of Ministers. On 8^th December 1998 the Company`s debut in the open market of the Warsaw Stock Exchange took place, with Elektrociepłownia "Będzin" S.A. being the first enterprise of power sector to be quoted in the Stock.In October 1999 the Minister of Treasury invited investors to purchase the majority stockholding of Elektrociepłownia "Będzin" S.A. shares. As the result, on 21st July 2000 the German company MEAG purchased 52,5% of the Company shares.

In 2001 the company MEAG increased its share in the share capital of Elektrociepłownia Będzin S.A. to 69,56% of shares. In August, 2002, the envia Mitteldeutsche Energie AG became the legal successor of the company MEAG and the main Elektrociepłownia Będzin S.A. `s shareholder at the same time.

On November 05, 2013 the Management Board of Będzin CHP Plant was notified by envia Mitteldeutsche Energie AG located in Chemnitz about a change in the direct and indirect share in the number of voting rights on the General Meeting of the Company.According to the received information, the direct and indirect share of enviaM in the total number of voting rights on the General Meeting of the Company was changed on November 04, 2013, due to the contribution in kind made by enviaM for enviaM Holding ECB Sp. z o.o., which is a single-member subsidiary Company, of 2.075.322 shares of the Company in order to cover the number of its shares in the increased share capital of enviaM Holding ECB Sp. z o.o. Consequently, as of November 04, 2013, enviaM Holding ECB Sp. z o.o. became a strategic investor of Będzin CHP Plant and held 65,90% of its shares.On 10 February 2014 the Management Board of ‘Będzin’ S.A. CHP Plant received from its main shareholder – the ‘Będzin’ S.A. CHP Plant a notice concerning acquisition by Energoutech 3 Limited Liability Company seated in Poznan of 2,075,322 shares entitling to 2,075,322 votes at the General Shareholders’’ Meeting of ‘Będzin’ S.A. which constitutes 65.9% of the ‘Będzin” S.A. CHP plant’s share capital.

On 13 March 2014 the Company received a notice from its indirect shareholders – Energoutech 2 Sp. z o.o., PU UTECH Sp. z o.o. and its main shareholder – Energoutech 3 Sp. z o.o. concerning a call to sell 3,150 shares of ‘Będzin’ S.A. CHP Plant.

On 15 April 2014 the Company received a notice calling for finalization of subscription for the purchase of shares of ‘Będzin’ CHP Plant, as well as informing of a purchase of 3,150 shares of ‘Będzin’ CDP Plant by the Buyer, i.e. Energoutech 3.

Due to the purchase of shares referred to in the call, Energoutech 3 Sp. z o.o. now holds 2,048,472 votes at the General Shareholders’ Meeting, which constitutes an equivalent of 2,048,472 shares being 66% of ‘Będzin’ S.A. CHP Plant’s share capital.

 8 April 2014

On 8 April 2014 pursuant to the order by the District Court of Katowice Wschód in Katowice, Department VIII of the National Court Register, a new Company under ‘Będzin’ Sp. z o.o. CHP Plant in Będzin, was created and registered in the National Court Register under the number 0000504084. The Company was created as a result of the implementation of an investment program adapting ‘Będzin’ S.A. CHP Plant to  environmental requirements, beginning on 1 January 2016 and compliant with the EU Parliament Directive 2010/75/UE dated 24 November 2010 on industrial emissions (integrated pollution prevention and control).

4 August 2014

On 4 August 2014, pursuant to the agreement issued by the Extraordinary Shareholders’ Meeting of ‘Będzin’ S.A. CHP Plant, ‘Będzin’ S.A. CHP Plant concluded a contract with ‘Będzin’ Limited Liability Company a contract to transfer the ownership of ‘Będzin’ S.A. CHP Plant effective as of 4 August 2014, upon which the ‘Będzin’ S.A. CHP Plant transferred onto the ‘Będzin’ Sp. z o.o. the ownership of ‘Będzin’ S.A. CHP Plant, pursuant to Art. 551 of the Civil Code.

The transferred company included all tangible and intangible assets, including all rights and obligations resulting from trade contracts and other contracts involving ‘Będzin’ S.A. CHP Plant, unless the parties had agreed otherwise.

On 4 August 2014 ‘Będzin’ S.A. CHP Plant issued a statement of acquisition of 768,200 (seven hundred and sixty-eight thousand two hundred) New Shares of a total value of PLN 76,820,000.00 (seventy-six million eight hundred and twenty thousand Polish Zlotys) covered by non-cash contribution (contribution in kind) in the form of the enterprise.

BĘDZIN Sp. z o. o. intends to continue with the current manner of using the Enterprise.

Power plant before

Power plant now