Regarding the decision adopted by the National Energy Regulatory Council on 17 March 2020

Energijos Skirstymo Operatorius AB (hereinafter – ESO or the Company), identification code 304151376, registered office located at Aguonų g. 24, Vilnius, Republic of Lithuania. The total number of registered ordinary shares issued by the Company is 894 630 333; ISIN code LT0000130023.

The National Energy Regulatory Council (hereinafter - the Council) on 17 March 2020 adopted a decision imposing a sanction on ESO. The Council adopted a decision of a warning for the violations detected in the act of unplanned inspection of regulated activities of ESO on 23 August 2019. In the opinion of the Company, the violations identified by the Council were mainly related to the qualification of electricity transmission interruptions (attribution of specific reasons) but did not affect the electricity supply to consumers.

The company notes that prior to the publication of the Inspection Act it has undertaken to review the internal processes and cooperated and cooperates with the Council and other responsible authorities, for the purpose of clarity, legal certainty and uniform application of the legal acts, in amending the legal framework relating to the requirements for reliability and quality of services in electricity transmission. According to the Company, taking into account the results of the inspection and the proposals submitted by the Company, the Council substantially improves the provisions of the legal acts regulating the qualification of electricity transmission interruptions and changes the legal regulation that has been in force for many years.

The Company will analyze the Council’s decision on the imposition of the sanction of EUR 62827.32  and related arguments and will decide on further actions. The Company will inform about its further actions and made decisions in the manner set forth by laws.

_{Representative for Public Relations: Tomas Kavaliauskas, , tel. .}