rynek energii elektrycznej w polsce

Transcription

towarzystwo
obrotu
energią
ELECTRICITY AND GAS
MARKET IN POLAND
Status on 31 March, 2014
TOE Report
Warsaw, 30 April, 2014
Towarzystwo Obrotu Energią
ul. Czackiego 7/9/11, 00-043 Warszawa
tel. (22) 827 57 93, fax (22) 826 61 55, e-mail: [email protected] www.toe.pl
Any dissemination of the Report or quoting sections thereof shall be authorised subject to the quoting of the source.
Copyright © Towarzystwo Obrotu Energią 2014
Electricity and Gas Market in Poland. Status on March 31, 2014. TOE Report
TABLE OF CONTENTS:
I.
Introduction ........................................................................................... 4
II.
Key Developments (Planned or Completed) on the Polish Electricity
Market Between 1 April, 2013 and 31 March, 2014 ............................... 5
1.
Continued Mandatory Approval of G Group Tariffs (Electricity Sales) by URE .. 7
2.
‘Small Three-Pack’: Amendments to Energy Law; Implementation Concerns .. 8
3.
Work on: the Template for the General Distribution Agreement for Integrated
Services; Code of Conduct for Electricity Sellers and a Compendium of
Electricity Consumer Rights ....................................................................... 9
4.
Support systems for renewable energy sources, co-generation and energy
efficiency ................................................................................................ 11
5.
Power Interchange: Selected Issues .......................................................... 16
6.
EU Legislation and Measures in Financial Markets Likely to Affect the Electricity
Market in Poland...................................................................................... 17
7.
The Impact of CO2 Allowance Market on the Electricity Market .................... 18
P1. Bill on Renewable Energy Sources (Draft of 28 March, 2014) ....................... 22
P2. New Architecture of the Electricity Market: Power Market, Demand
Side/Aggregators ..................................................................................... 25
P3. Impacts of Planned Changes in EU Climate Policies on Poland’s Energy
Sector ..................................................................................................... 30
III. Energy Pricing on the Wholesale Market.............................................. 33
IV.
1.
Day-Ahead Market ................................................................................... 33
2.
Derivatives Market ................................................................................... 35
Gas Market ........................................................................................... 37
1.
Regulatory Environment ........................................................................... 37
2.
Barriers to Gas Market Growth in Poland.................................................... 39
3.
Gas Trading at TGE SA ............................................................................. 41
V.
Recommended Short- and Long-Term Measures ................................. 44
VI.
Acronyms and Terms ............................................................................ 46
VII. References ........................................................................................... 47
VIII. TOE Management Board ....................................................................... 49
IX.
Authors................................................................................................. 50
2014_raport_EN.docx
-3
-
I.
INTRODUCTION
Electricity and Gas Market in Poland; Status on 31 March, 2014, hereinafter also referred to as
the ‘TOE 2014 Report’ or ‘the Report’, summarises key developments in Poland’s electricity
and gas market between April 1, 2013 and March 31, 2014.
As in the previous reports since 2009, ([22]-[26]) this TOE 2014 Report focuses on issues
which are relevant for the Association of Energy Trading or TOE and its supporting members
(electricity traders) and ordinary members (private individuals).
In comparison to the 2013 Report [22], the TOE 2014 Report contains a section focusing on
the gas market, whose robust growth has been supported by TOE and its Members. It is the
first time TOE addresses the topic of gas. Section IV of the Report presents key regulatory
developments, barriers to growth and an assessment of gas trade at the Energy Commodity
Exchange (TGE).
Section I offers TOE comments on what it believes were the most important developments in
the electricity market in the period at hand. In 2013 and in early 2014, several important
documents were approved or are still in consultation which TOE believes have or may have a
major impact on Poland’s electricity market, in particular on electricity trade.
Section II makes an assessment of each of the documents and their relevance for the trade
sector.
Section III traditionally summarises the electricity price evolution on the wholesale market in
the reported period.
As noted above, Section IV is dedicated to the gas market.
Short- and long-term recommendations are outlined in Section V. These are measures believed
by TOE to worth implementing to further strengthen the electricity and gas market in Poland.
Terms and acronyms are explained in Section VI and Section VII quotes references.
Section VIII lists the current membership of the TOE Management Board.
Finally, the authors of this Report are listed in Section XII.
The TOE 2014 Report relies on data and knowledge available to the authors on 31 March 2014
Ever since 2009, the Report has been published regularly in the first half of each calendar
year.
2014_raport_EN.docx
-4
-
II.
KEY DEVELOPMENTS (PLANNED OR COMPLETED) ON THE POLISH
ELECTRICITY MARKET BETWEEN 1 APRIL, 2013 AND 31 MARCH,
2014
The key developments and planned measures in the electricity market in Poland between
1 April, 2013 and 31 March, 2014 are summarised in the table below.
As in our previous reports ([22]-[26]) the summary mainly presents the developments in the
wholesale market, sale of electricity to end customers, power interchange and the gas market.
Whenever any of the three areas were interlinked with other nodes of the entire electricity
buying and selling cycle such linkage was highlighted and implications for the other segments
of electricity value chain (generation and distribution) were examined.
The following part of this Section provides a short background and evaluation of each of the
measures presented.
2014_raport_EN.docx
-5
-
Table 1. Key Developments (Planned or Completed) on the Polish Electricity Market
between 1 April, 2013 and 31 March, 2014
Impact on Market Area
Measures [1–7]/Plans [P1P3]
Impact on
Market
Growth
Generation
Distribution
Wholesale
Trade
Retail
Trade1
Power
Interchange
End
Customers
Page:
Further
Discussion
1
Continued mandatory
approval of G group tariffs
(electricity sales) by URE
-
N
-
-
-
N
+/-
8
2
‘Small Three-Pack’:
Amendments to Energy
Law; Implementation
Concerns
+
+/-
-
N
+/-
N
+
9
3
Work on: the Template for
the General Distribution
Agreement for Integrated
Services; Code of Conduct
for Electricity Sellers and a
Compendium of Electricity
Consumer Rights
+
N
+/-
N
+
N
+
10
4
Support systems for
renewable energy sources,
co-generation and energy
efficiency
+
-
N
-
12
N (cogeneration)
+/-
+/-
+ (efficiency)
(renewables)
5
Power Interchange:
Selected Issues
+
-
N
+
N
+
+
17
6
EU Legislation and
Measures in Financial
Markets Likely to Affect the
Electricity Market in Poland
-
-
N
-
N
-
N
18
7
The Impact of CO2
Allowance Market on the
Electricity Market
-
-
N
N
N
N
-
19
P1
Bill on Renewable Energy
Sources (Draft of 28 March,
2014)
+/-
+/-
-
+/-
N
N
(except for
prosumers)
23
P2
New Architecture of the
Electricity Market: Power
Market, Demand
Side/Aggregators
+/-
+
N
+/-
N
N
-
27
P3
Impacts of Planned Changes
in EU Climate Policies on
Poland’s Energy Sector
-
-
N
-
-
N
-
32
Legend:
N neutral
- negative impact
+ positive impact
+/- mixed impact depending on criterion
Continued measures covered by the TOE 2013 Report are marked in red.
Proposed/planned measures submitted before March 31, 2014 are marked in blue.
1
Sale of electricity to consumers
2014_raport_EN.docx
-6-
1.
Continued Mandatory Approval of G Group Tariffs (Electricity Sales)
by URE
The process of full electricity market liberalisation has not been completed by the time of
writing this Report. URE President has not made any decisions specifying exact dates when
electricity prices in the household segment are to be liberalised in Poland.
The obligation for electricity retailers to submit their tariffs to URE for approval is a
fundamental constraint for this business. By maintaining the tariff regulation for some
operators URE President, the market regulator, has contributed to double standards in the
market (some operators are not required to submit their tariffs for approval). This results in
the lack of a level playing field for market operators and, consequently, for household
customers served by these operators. In November 2013, URE Vice-President reminded that
the prices for individual customers could be freed when three key conditions are met, as set
out the URE Roadmap for Electricity Price Liberalisation for All Customers [27]:

Rules for protection of ‘vulnerable’ customers must be established – this requirement
has been met as a result of the implementation of the ‘Small Three-Pack’ amendments
[7] to the Energy Law [12];

Security for end customers must be ensured by provided guarantees for integrated
contracts upon supplier switching – this requirement has been met since the process
of developing the General Distribution Agreement for Integrated Services was
completed (see next subsection);

‘Emergency’ provision (e.g. in case the current retailer goes bankrupt) must be
adequately regulated – this requirement has been met: new IRiESDs for five largest
DSOs were introduced on 1 January, 2014; they stipulate measures that must be taken
in case the customer-selected retailers has not commenced or has discontinued to
provide the integrated service (emergency provision); in addition, this is well stipulated
in the GDA-I template (see next subsection).
In February, 2014, URE Vice-President, acting in the capacity of URE President2, reinforced the
said requirements and added that ‘full liberalisation in the electricity market may only be
achieved if the market is stable and there are clearly defined trends. Otherwise, deregulating
electricity prices for all customers will destabilise this market with considerable detriment to
market participants’. According to the statement of the Regulator, it is to review the conditions
precedent for electricity deregulation in line with the statutory provisions.
Conclusions
TOE strongly believes that the deregulation of electricity provision to households is a key step
to further market growth, transparency and the completion of the liberalisation process. While
all the prescribed conditions to full price deregulation, as set out in the Roadmap, have been
2
According to Art. 21 Section 2o of the Energy Law, no person acting in the capacity of URE President (currently,
URE Vice-President is acting in this capacity) may exempt operators from the obligation to submit tariffs for
approval in accordance to Art. 49 Section 1 of the Energy Law
2014_raport_EN.docx
-7-
market participants are looking forward to full electricity price deregulation as soon as possible.
We assume the 2014 market review announced by the URE Vice-President will confirm that all
the preconditions to liberalisation stipulated by the Regulator have been fulfilled.
It must be underlined that TOE has actively engaged in the process to seek the fulfilment of
the preconditions to liberalisation. For example, TOE implemented a national educational
campaign under the auspices of URE President. Again, TOE expresses its commitment to
engage in other measures to ensure protection of vulnerable customers and prevent fuel
poverty.
2.
‘Small Three-Pack’: Amendments to Energy Law; Implementation
Concerns
The Law of 26 July, 2013 amending the Energy Law and certain other laws (Journal of Laws
2013, Section 984), known as the ‘Small Three-Pack’ [7], which entered into force on 11
September 2013 largely seeks to implement EU legislation. Major amendments [7] include:

Adoption of a protection system for vulnerable customers, i.e. flat energy allowance
support mechanism;

Mandatory free installation of a pre-paid meter by the DSO, upon customer’s request,
within 21 of such a request;

A new customer category, i.e. ‘industrial customer’ and incentive mechanisms for this
category: ‘coloured’ obligations;

More precise billing rules for end customers who terminate their open-ended or fixedterm contract;

Adoption of a 21-day deadline for DSOs to complete the customer-initiated supplier
switching process;

Adoption of a 42-day deadline for final billing of customers who apply the TPA process;

Mandatory information to households regarding their rights and mandatory distribution
of a consumer rights publication;

A new complaints procedure for cases of electricity supply being stopped to
households: more restrictions on stopping supplies for reasons of customer nonpayment or challenged payment collection; failure to process a customer complaint
within 14 days automatically renders such complaint as valid and referring the case by
the customer to the conciliation court/ URE President (‘complaints loop’);

Mandatory purchase by an ex-officio retailer of the electricity generated in a microinstallation at a price equal to 80% Crk.
The aim of the amendment was to ‘protect’ Poland from impending penalties resulting from
the EC complaint regarding the failure by Poland to implement EU Directives. This is why the
2014_raport_EN.docx
-8-
amendment tends to be skin-deep and unclear on occasion. A number of measures such as
the ban on stopping electricity supplies to a customer for the duration of a complaint
procedure, or an option to extend the complaint procedure by virtue of appeals that can be
made by such customer to various institutions clearly come short of market rules and may
hamper the growth of the electricity market. The stress on consumer protection as peculiarly
and away from market realities as it is understood here whereby consumers are given options
to limit such service stoppages is particularly affecting our assessment of the change and to
the potential of the amended rules for improving the liquidity and transparency of the market
and the customer-retailer relationship.
Conclusions
The ‘Small Three-Pack’ amendment of the Energy Law only partially responds to the need for
legislative change; it focuses mainly on points criticised by the European Commission in its
complaint. While many of the new measures do foster competition in Poland there some (few)
that do not pass the test of a dynamic free market and inspire much controversy. Moreover,
the provisions banning electricity supply stoppages with regard to household customers who
are in dispute until such dispute is resolved raise a number of legal questions.
3.
Work on: the Template for the General Distribution Agreement for
Integrated Services; Code of Conduct for Electricity Sellers and a
Compendium of Electricity Consumer Rights
Ever since it was established, TOE has taken steps to adopt voluntary standardisation of
contracts and behaviours of electricity market participants in Poland. Standardisation should
cover both contracts between sellers (including generators) on the wholesale market (where
TOE has successfully promoted the EFET standard since 2004) and contracts between sellers
(sellers of electricity to customers based on sales contracts) and companies that provide the
distribution service (including DSO) (since 2009, such contracts may be based on the General
Distribution Agreement or GDA template. Furthermore, TOE is engaged in developing a
standard template for contracts that can cover the integrated service to be provided to
households so that the customer can receive one invoice for the electricity and the distribution
service.
Following several months of joint effort between TOE and the Polish Association of Electricity
Transmission and Distribution (PTPiREE), the TOE and PTPiREE Management Boards approved
a common text of the General Distribution Agreement for Integrated Service (GDA-I ) template
in December 2013. This process was endorsed by URE President and URE representatives
attended the working meetings. GDA-I is an agreement for the provision of the electricity
distribution service to be concluded between the DSO and the electricity retailer to support
the implementation of an integrated contract signed between the retailers and a household
customer connected to the grid of a nominal voltage of up to 1 kV connected to the grid of
that operator.
2014_raport_EN.docx
-9-
Importantly, GDA-I provides comprehensive rules for the entire retailer/DSO relationship and
cover the following areas:

Rules for identifying and sharing metering data;

Stopping and restarting the provision of electricity to customers;

Billing and invoicing, financial security;

Complaints handling, dispute resolution and reporting requirements;

Stand-by integrated service.
GDA-I was introduced in January 2014 and we have observed a number of retailers signing
such agreements with DSOs.
Meanwhile, TOE is about to complete effort to develop a GDA-I complaint integrated service
contract to be recommended for households. The use of a standard contract will ensure that
the customers will have legally compliant contractual provisions and are protected against
unfair canvassers and retailers who may want introduce provisions which are unfavourable to
consumers.
In the context of a growing attention to the retail electricity market and selling electricity to
household consumers and in order to promote good conduct in a competitive environment the
TOE-affiliated trading companies worked through the TOE Customer Service System Group
and developed a document called Good Practices of Electricity Sellers or What Customers
Should Expect of a Fair Seller. It is a code of conduct as defined by the Law on Counteracting
Unfair Market Practices of 23 August, 2007 (Journal of Laws, Issue 171, Section 1206). The
code is voluntary and open to all energy companies that sell electricity to household endcustomers in Poland.
In 2014, TOE has actively participated in consultations and efforts to develop a Compendium
of Electricity Consumer Rights [17] and the Compendium of Gaseous Fuels Consumer Rights.
The URE-led process has resulted in the publication of a practical resource for electricity and
gaseous fuels household consumers. The publication contains practical information regarding
customer rights, market mechanisms and electricity and gas sales and supply systems.
Underlying to the publications [17] are EU Third Legislative Package provisions that require
that consumers be provided with clear and comprehensible information regarding their rights.
The topics in the Compendia are based on the European Commission guidelines on the scope
of information to be provided to customer.
Conclusions
The TOE’s efforts to develop a template for the General Distribution Agreement for Integrated
Service, the code of good practice and the standard integrated service contract are major steps
towards full electricity market liberalisation and harmonisation in Poland. TOE believes the said
documents have a positive impact on the electricity market growth and will lead to higher scale
of supplier switching under the TPA principle.
2014_raport_EN.docx
- 10 -
4.
Support Systems for Renewable Energy Sources, Co-generation and
Energy Efficiency
Throughout the reported period, the support system for renewable energy sources relied on
direct support instruments or certificates. Under the Energy Law [12] and secondary
legislation, specific forms and terms of support for renewable energy sources were identified
and specific DSM rules. The system continued to require the acquisition, trade and redemption
of negotiable instruments which are derivatives of certificates of origin of electricity from
renewable energy sources. In parallel, a system of investment supports existed offering grants,
credit facilities and loans supported by such agencies as the National Fund for Environmental
Protection and Water Management (NFOŚiGW) which funded the mechanism from substitution
charges and penalties. Finally, fiscal incentives were used whereby electricity generated in
renewable energy source technologies was exempt from the excise duty as well as incentives
for grid connection and licence fees. It is worth underlying that intense efforts were made to
develop a new support mechanism for renewables and it will be discussed separately in Section
P1 due to its high significance. The analysis of commercial data suggests a strong upward
trend for certificate prices in the range between approx. 130 PLN/MWh and 240 PLN/MWh.
However, the price level was still much below the level of substitution charges, as illustrated
in Figure 1.
max-min
Trading volume (excl. OTC) [GWh]
OZEX_A index [PLN/MWh]
Substitution charge [PLN/MWh]
Difference between OZEX_A and substitution charge [PLN/MWh]
Source: TOE based on TGE data
Figure 1. Trading Volume and Prices of ‘Green’ Instruments
The support system for high efficiency co-generation was significantly modified in the reported
period. The coal and gas co-generation system applicable before 31 December 2012 including
2014_raport_EN.docx
- 11 -
the mandatory redemption of instruments by 31 March 2013 was not renewed. In 2013, there
was a broad discussion on whether this mechanism should be continued and it informed the
legislative proposals, of which the amendment of the Energy Law of 14 March 2014 is the most
important one. It implemented a support mechanism to apply in 2014-2018. The
parameterisation of the substitution charge OZK was modified considerably. As recommended
by the Select Committee of National Economy and Select Committee of Environment, the range
of 5% to 40% of the average electricity selling price at a competitive market was adopted. It
must be emphasized that the instability and the lack of regulatory continuity affected the
market dynamics, as illustrated in Figure 2 and 3. Figure 4 presents the percentage share of
‘coloured’ obligations in 2013 – 2020.
2014_raport_EN.docx
- 12 -
max-min
KGMX_A index [PLN/MWh]
Difference between KGMX and substitution charge [PLN/MWh]
Figure 2. Trading Volume and Prices of ‘Yellow’ Instruments
Serie6
KECX_A index [PLN/MWh]
Difference between KECX and substitution charge [PLN/MWh]
Figure 3. Trading Volume and Prices of ‘Red’ Instruments
2014_raport_EN.docx
- 13 -
Obligation Level
Green Certificates
Red Certificates
Yellow
Certificates
Purple Certificates
Source: TOE
Figure 4. Mandatory percentage share of ‘coloured’ obligations 2013 – 2020
The only well performing part of the system which was consistent with the Community
cogeneration promotion policy was the support system for ‘methane’ sources. The framework
of the system in 2011 – 2018 was free from the risks affecting other types of co-generation.
The price index stabilised between PLN 57 and PLN 59 per MWh (close to the substitution
charge) because of limited supply resources and continuously rising demand path, as
illustrated in Figure 5.
max-min
KMETX_A index [PLN/MWh]
Difference between KMETX and substitution charge [PLN/MWh]
Figure 5. Trading Volume and Prices of ‘Purple’ Instruments
2014_raport_EN.docx
- 14 -
Finally, this Report makes an evaluation of the energy efficiency support system. The Energy
Efficiency Law in force since 15 April, 2011 [9] was to result in the adoption of a certificatebased stimulus mechanism to foster efficiency. The first tender announced by URE President
in 2012 for energy efficiency enhancement project was awarded only in August 2013 and
results were published in September 2013. A total of 209 projects were effectively submitted,
of which the panel selected only 102. The value of efficiency certificates to be issued in this
tender reached 550,000 toe, of which: (and) 440,000 toe in the category of end customer
efficiency enhancements (42 projects), (ii) 55,000 toe in energy conservation in own devices
(19 projects) and (iii) 55,000 toe in energy/heat/natural gas loss reduction in
transmission/distribution (41 projects). Certificates of origin precipitate negotiable property
rights commonly known as ‘white certificates’ and they are traded using a similar mechanism
to the existing mechanisms applicable ton renewable energy sources and c-generation. On
4 November 2013, TGE SA launched an energy efficiency certificate trading scheme. While
trades are closed on four days per week the market is not sufficiently liquid, as evidenced by
the volumes and price index in Figure 6. Liquidity is further limited by internal exchange rules.
max-min
Trading volume (toe]
EFX index [PLN/toe]
Substitution charge [PLN/toe]
Difference between EFX and substitution charge [PLN/toe]
Figure 6. Trading Volume and Prices of ‘White’ Instruments
2014_raport_EN.docx
- 15 -
Conclusions
In 2014, a new mechanism came into force for the support of co-generation in line with UE
policy expressed in Directives: 2004/8/EC, 2009/28/EC, and 2012/27/EU. It should be stressed
that the guidelines promote a specific type of generation source to further the technology at
hand, seek modernisation of the subsector and increase the balance of power. The experience
from 2007-2012 indicates that the current system fails to achieve all the goals. TOE believes
efforts should start as soon as possible to modify the support mechanism for co-generation so
that it can be re-launched in 2018.
It is vital that the process of developing a dedicated law on renewable energy source should
be continued. Non renewable energy sources bill has been submitted to Parliament to date
despite a number of announcements and it is still unclear when it can become law. Such
legislation may help stabilise the market, improve transparency and foster new investment.
TOE is of the opinion that an education campaign should be launched, incentives should be
offered and efficiency projects selection procedures should be simplified in order to increase
the supply of ‘white certificates’ and improve market liquidity.
5.
Power Interchange: Selected Issues
W August 2013, a decision was made to postpone Poland’s accession into the market coupling
mechanism which covers the southern borders of the country (MCP). The new market coupling
area will include Czech Republic, Slovakia, Hungary and Romania. The decision was preceded
by discussions between Polish stakeholders (URE, PSE, TGE and TOE) and questionnaire
among market participants. The decision is in line with TOE recommendations presented in
the 2013 Report [22], where TOE highlighted the risks related to the need to modify the RDN
market (MCP could not be based on the same fixing which underlies the market coupling on
the ‘Swedish’ cable; at worst, MCP could necessitate the creation of another fixing).
According to the experience of MCP stakeholders, Poland will join the project ‘in the context
of the CEE FBMC (flow based market coupling) initiative’. TOE thinks it will be favourable when
one market coupling covers the southern, western border and the ‘Swedish cable’. Further
dialogue is recommended between the exchange, TSO, the Regulator (URE President) and
market participants in order to develop such practices as to build an optimum architecture of
the day-ahead market to further strengthen its credibility. Detailed discussions and
assessments are underway in the Wholesale Market Team at TOE.
The Energy Trade Association (TOE) welcomes the efforts made by PSE S.A. aimed at
reinstating electricity imports from the western and southern regions. However, the levels of
available transmission capacity and communication policies are deemed insufficient.
Another vital process which may affect Poland’s exports and imports of electricity and shape
the market as a whole is the project to assess the effectiveness of bidding zones in Europe.
While the ENTSO and ACER-led project is in its early days and more time is needed for binding
2014_raport_EN.docx
- 16 -
decisions to be made it must be emphasised that splitting Poland into two or more bidding
zones could be risky in terms of liquidity on the wholesale market, especially now when liquidity
is growing, a development the market participants have been striving for over the past several
years).
Conclusions
Market coupling ensures an optimum allocation of transborder capacity in synchronised and
developed spot markets. Needless to say, it is a mechanism that drives market efficiency.
However, Poland’s spot market is imperfect and MCP would further complicate matters on this
market today. Hence, the positive response from TOE to the decision to postpone the
accession.
Special care must be given to any measures which could lead to the emergence of more than
one bidding zone in Poland. There is some concern regarding this matter among the
participants of Poland’s electricity market. It is vital that this process be addressed in a close
partnership with TSO and URE. Poland should co-ordinate its position vis-à-vis foreign
institutions as much as possible.
6.
EU Legislation and Measures in Financial Markets Likely to Affect the
Electricity Market in Poland
The European Union has consistently implemented the process of changing the regulatory
environment for financial market ever since the adoption of EMIR3. Part of the process is the
emerging proposal to amend the Directive of the European Parliament and of the Council
2004/39/EC of 21 April, 2004 on markets in financial instruments (MiFID II).
The qualification of instruments supporting trade in electricity based on EMIR and planned
in MiFID II is of paramount importance for the electricity market. The original compromise
where the basic forward with physical delivery was deemed an instrument not covered by
EMIR was challenged by the UK Regulator (FCA) in mid-2013. It concluded that forward
contracts intermediated by brokers in MTF (Multilateral Trading Facility) platforms to be
financial instruments. As a result, most energy market players would be covered by EMIR.
Thus, non-MTF platforms emerged in latter part of 2013 with a modified transaction closing
mechanism. Finally, FCA agreed that forwards closed in the modified trading platforms could
be deemed to be of commodity instrument nature. This means that these platforms are
gradually becoming the dominant OTC floors. Thus, it was practically confirmed that forward
contracts with a physical delivery stays outside of the scope of EMIR, unless the contract was
closed at an MTF.
3
Regulation (EU) No 648/2012 of the European Parliament and of the Council of 4 July 2012 on OTC
Derivatives, central counterparties and trade repositories (Official Journal L 201 of 27.7.2012, pp. 1—59) with
entry into force date of 16 August, 2012.
2014_raport_EN.docx
- 17 -
The current consensus around MiFID II supports earlier arrangements to exempt contracts
with physical delivery of gas and electricity and to recognise EUAs as financial instruments
(commodity derivatives) as is the case for contracts with physical delivery of coal and crude
oil. Notably, the latter two types of contracts are subject to discussions about the scope of
related obligations attached to these contracts as financial instruments and about transitional
period for the new legislation. The practical understanding of the ‘physical settlement’
(Art. 4(2) Section 1 Para. 1) is vital. The consecutive MiFID II drafts demonstrate that there is
realistic threat of more utilities being forced to operate within a regime designed for financial
institutions as more and more areas of commercial trade are subjected to this financial
legislation.
Conclusions
The predictions are coming true as the European Commission is seeking to cover commodity
markets with legislation similar to that applicable in financial markets as demonstrated by the
latest drafts of MiFID II. Electricity market participants appear to be reconciled with this
legislative development although they are effectively defending their uniqueness in terms of
basic trade instruments characteristic of this market, i.e. forwards with physical delivery. It
should be reiterated, as expressed in the 2013 Report, that far reaching unification is to be
expected between energy and financial markets in the long run and this will bring new risks
of a more rigorous regime for the energy market with higher entry barriers and more stringent
capital requirements for market players.
7.
The Impact of CO2 Allowance Market on the Electricity Market
The purchase price of CO2 allowances, which is a variable cost of electricity generation, is
increasing affecting the final electricity price in the wholesale market as free annual allowance
pools are regularly reduced. EU ETS Phase III started in 2013 and will continue to 2020. The
excess of unused Phase II allowance has been transferred to Phase III which ensured a
seamless transition. However, this measure increased the oversupply of allowances in the
market thus continuously exerting pressure on CO2 prices. The latest projections for the
amount of surplus at the end of Phase III in 2020 suggest a figure of over 2 billion allowances.
The EC believes the CO2 purchase price at the level of EUR 4-5 pre MgCO2 creates no clear
stimulus for investments in low-emission technologies, which was the main goal of EU ETS as
the most important climate policy instrument in the first place.
Figure 7 compares the prices of CO2 allowances in three consecutive phases. Regardless of
the decline to nearly zero in Phase I, the phase has ended without the option to carry forward
to Phase II and record low prices were observed below 2.50 EUR/MgCO2. This record-low price
primarily resulted from the oversupply of allowance and the legitimate concerns about the
case for EU ETS.
2014_raport_EN.docx
- 18 -
EUA spot Phase I
EUA spot Phase II
EUA spot Phase III
Figure 7. The price of CO2 emission allowances in 2005-2014 in
Phase I (2005-2007), II (2008-2012) and III (2013-2020)
The European Commission has taken vigorous measures to increase the CO2 price since 2012.
The main weapon against oversupply and low prices has been backloading or a provisional
transfer of part of the free 2013-2015 allowances by reducing the volume of allowances sold
at auction which have become the core method of allocating free allowances in EU ETS Phase
III since 1 January, 2013. These allowances are scheduled to return in 2019-2020. The process
of work around backloading has been intense over the entire period covered in this Report,
which has lead to the reversal of the long term downtrend in CO2, emission allowances strongly
correlated with the oversupply. Since early April 2013 until 31 March, CO2 allowances were on
a visibly upward curve. Prices increased more than 140 per cent starting at levels below 3
EUR/MgCO2 in April 2013 up to 7.30 EUR/MgCO2 in February 2014.
Figure 8 shows the impact of EC measures and political developments on the pricing of the
EUADEC 14 derivative.
2014_raport_EN.docx
- 19 -
24 February 2014:
EC accepts fast track for
backloading; EEX and ICE
publish updated auction
schedules
16 April 2013:
EP rejects the initial
backloading proposal
22 September 2013:
Parliamentary election in
Germany won by the
ruling CDU
8 January 2014:
CE proposes backloading ‘fast
track’ – major chance to
withdraw 400m t EUA in 2014
5 November 2013:
German ruling CDU and PSD agree
to support backloading
3 May 2013:
Angela Merkel speaks in
favour of backloading
Warm winter, energy prices
down, concerns about huge
oversupply of allowances
resulting from lower 2013
emissions
Parliamentary election in
Germany won by the ruling
CDU
19 June 2013:
ENVI Committee in EP approves EC
backloading agenda at 900m t EUA
22 January 2014:
EC publishes 2030 climate policy
proposal (MSR + greater
reduction in allowances)
10 December 2013:
EP votes to adopt backloading with
385 in favour and 284 against
Figure 8. Economic and political developments affecting the EUADEC 14 market
A clear picture emerges of how sensitive and responsive the CO2 emissions market is to
economic and political developments. On 16 April, 2013, after the first backloading proposal
was rejected, the price of allowances fell nearly 50 per cent in one session from 5.15
EUR/MgCO2 to 2.90 EUR/MgCO2. The backloading comitology was progressing towards
implementation throughout 2013 and in early 2014, which the market recognised with
noticeable price hikes up to the top valuation of 7.30 EUR/MgCO2 on 24 February 2014, when
PE finally voted to adopt the backloading fast tract which allows the withdrawal of as many as
400 million allowances in 2014, then 300 million in 2015 and 200 million in 2016.
Apart from the struggle against the oversupply of allowances, the EC is planning to carry out
a structural reform of the entire EU ETS to further boost the prices, increase the stability of
the system and achieve a greater supply/demand balance. The first relevant documents were
published on 22 January, 2014 in the 2030 Package designed to pave the way for a reformed
energy and climate policy by 2030. The European Commission is planning to launch the Market
Stability Reserve (MSR) to allow an annual 12 per cent reduction in the surplus of allowances
in the market in case there is an oversupply.
Furthermore, The EC is planning a 40% CO2 reduction target by 2030 against the 1990
baseline. In order to achieve this target, it is planning to increase the annual linear reduction
factor for the free allowance pool from the current 1.74% to 2.2%. It is estimated that this
will trigger a growth in the price of CO2 emission allowances by about 10 EUR/MgCO2, and the
MSR will give an addition boost of 15 EUR/MgCO2 from 2021. In contrast, ETS reported another
year of declining CO2 emission prices. In 2013, all installations that operated in the system
emitted 3.1% less CO2 than the year before. Hence, emissions were on the downward curve
yet another year: in 2011-2012 they were falling by 2% per year. It should be noted that
2014_raport_EN.docx
- 20 -
installations in Poland that are covered by EU ETS recorded an increase of emissions by 0.5%
in 2013 relative to 2012.
Figure 9 presents the evolution of CO2 allowance pricing with EUADEC 14 delivery against the
price evolution of the BASE Y-15 derivative contract. Changes in CO2 prices have a clear affect
on the price of electricity. The correlation factor for both products equals 0.70, i.e. there is a
strong positive linear correlation between them.
Figure 9. Comparison between Annual Derivatives on the
CO2 Market and Electricity Prices
Conclusions
As a result of dwindling free allocations the impact of the CO2 allowance market on the
electricity market in Poland is deemed to be significant. Poland’s energy sector is and will in
the medium term be reliant on fossil fuels (mainly hard coal and lignite). This is why the
wholesale price of derivative contracts for electricity is strongly responsive to any change in
the CO2 pricing.
The European Commission has stepped up its efforts to raise the levels of CO2 prices and this
is likely to directly increase the cost of electricity generation.
The latest medium-term forecasts which discount the EC policy point out to 7.5 EUR/MgCO2 to
be the average price of emission allowances in 2014 and 10 EUR/MgCO2 in 2015. Long-term
CO2 price projections, after the completion of Phase III suggest levels north of 20 EUR/MgCO2
up to 60 EUR/MgCO2 in 2030, once MSR is put into operation. This level of CO2 pricing is
bound to put considerable pressure on the profitability of coal-fired generators, reduce the
competitiveness of the Polish economy and lead to the increase in prices to end customers.
2014_raport_EN.docx
- 21 -
P1. Bill on Renewable Energy Sources (Draft of 28 March, 2014)
The law on renewable energy sources is expected to be the major part of the regulatory
framework along with the Energy Law and Gas Law. The drafting of the new legislation began
in 2011 with the Ministry of Economy publishing three draft bills: new Energy Law, Gas Law
and Law on Renewable Energy Sources. Over the past two years, there have been several
officially published drafts of the latter bill, i.e. 1a.4, 2.0, 2.0.1, 4.0, 4.1, 6.1, 6.2 and draft 6.3
of 28 March, 2014 which was sent to the Council of Ministers to be discussed early in April
2014.
The new Law on renewable energy sources is offer a brand new approach to supporting ‘green
energy’. The existing regime is to be maintained for existing installations, if they choose not
to join the new regime. On the other hand, the law adopts an auction system for new
installations and those existing sites which choose to opt in.
Auctions: The Core Part of the Support System for Renewable Energy Sources
The new regime is to rely on auctions. The rationale for this approach is cost effectiveness,
compliance with EU requirements and minimisation of additional burdens to end customers.
The system is designed so as to create a level playing field for all types of renewable energy
sources, which can hardly be said about the existing system of ‘green’ certificates with no
diversification of support levels to different renewable technologies.
In the new regime, URE President will hold at least on auction per year. The auction will offer
electricity generated in renewable energy sources and electricity produced from agricultural
biogas (there will be separate auctions). Any entity which offers the lowest price will win the
auction and in return it will receive a commitment of support over 15 years in the form of
guaranteed purchase at the auction price, subject to annual inflation adjustment. Importantly,
the auction system will classify installations into two categories: up to 1 MW and over 1 MW.
The power criterion will increase the efficiency of the system and is likely to foster microgeneration, which is expected to help build up a prosumer sector and reduce system losses.
Whenever the committed volumes of electricity from renewable energy sources are not used
up in the first auction more auctions will be held to match the committed amounts of energy
from renewable energy sources in the given period.
The auction system provides for certain exemptions believed by the legislature to help achieve
cost effectiveness and restructure the generation subsector to engage more generators outside
the fossil fuel community. The following installations are excluded from the auction system:

Multi-fuel installations, save for dedicated multi-fuel combustion installations;

Hydro power plants with a total installed capacity of over 5 MW;

Renewable energy sources with a total installed capacity of over 50 MW if they generate
electricity from biomass, save for biomass-fired renewable energy sources that use
2014_raport_EN.docx
- 22 -
high efficiency co-generation with an attainable thermal power in co-generation of up
to 150 MWt.
Support for Micro-generation and Prosumers
As note earlier, there will be separate auctions to installations up to 1 MW and over 1 MW.
The share of installations up to 1 MW in the total volume of ‘auctionable’ electric power is
identified at a level not lower than 25 per cent. It will be vital to ensure that small installations
have access to the system because it will drive structural changes in the renewables subsector
and limit the position of co-combustion installations using both fossil fuels and biomass. The
promotion of small sources will also support the growth of small and medium size enterprises
and this is likely to increase business activity in this sub-sector.
The law provides for incentives for prosumers such as exemption from administrative fees and
the recognition that micro-installations are not cases of self-employment. In addition, the
development of a strong prosumer community is of pivotal importance in the context of the
need for DSO to invest heavily in the grid – if self-generation develops such investments may
be spread over time and may be smaller in size and value. Further, prosumers may help reduce
system losses both in distribution and transmission grids. Yet, it should be noted that the
purchase price of the ‘surplus’ electricity from prosumer installations is set at 80 per cent of
the Crk price in the competitive market. Compared to the price offered to micro-installations
owned by businesses, which is around 100 per of Crk, this reduced price may not provide
sufficient encouragement for investments and adequate growth of such installations, say many
representatives of the renewable energy sources subsector.
Rules of Using Support for Upgraded Installations
The draft Law on renewable energy sources ensures support to installations will have been
upgraded after Chapter 4 provisions enter into force. Certificates of origin are in this case
proportionate to the increase of the total installed power of the installation. Whenever:

A renewable energy source has been created as a result of any upgrade of existing
installation;

A renewable energy source has been created as a result of an upgrade of a multi-fuel
combustion installation but this source will not be used for the generation of electricity
in the multi-fuel installation (save for dedicated multi-fuel combustion installations);

An upgraded renewable energy source installation of less than 5 MW of power uses
hydro energy to generate electricity;
The level of support will be proportionate to the cost of such upgrade but may not exceed 75
per cent of the initial value of the installation so upgraded.
2014_raport_EN.docx
- 23 -
In addition, upgraded facilities and facilities commissioned after the law enters into force must
meet the age condition: if they want to take part in auctions their plant and machinery must
not be older than 4 years at the time they generated electricity for the first time.
Mechanisms Which Control Oversupply of Certificates of Origin
Apart from the lack of differentiation of support depending on the type of renewable energy
source installations, the greatest weakness of the current regime is the absence of any
mechanisms that curb excessive price fluctuations of green certificates. The study of the
system’s evolution reveals that it did not function properly after 2010. There are numerous
reasons behind this and the most important include:

Weaker than expected growth of power in green multi-fuel combustion installations
and wind sources;

Insufficient level of obligation for green energy to sell electricity to end customers after
2010;

The obligation was met by virtue of substitution charge payments despite the surplus
of cheap certificates in the system.
Having regard to the above considerations, the new law on renewable energy sources provides
for mechanisms which control the weaknesses of the legacy support system. The key controls
against the oversupply of green certificates include: an adjustment coefficient of 0.5 for multifuel installation to be applied as of the date of entry into force of Chapter 4 of the said law
until the end of 2020 and banning certificate ‘banking’. The draft provides that following 2020
the Council of Minister will by virtue of a separate ordinance determine a new value of the
adjustment coefficient for the certificates of origin for electricity generated in renewable energy
sources and for electricity from agricultural biogas generated in a multi-fuel installation, save
for electricity from renewable energy sources generated in a dedicated multi-fuel combustion
installation and the time for which the support mechanism is to be extended.
Another control mechanism limiting the oversupply of green certificates is a provision that
stipulates that no certificate of origin will be issued for electricity generated in a renewable
energy source from agricultural biogas for which a certificate of origin has already been issued.
Further, the maximum volume of electricity eligible for support will be determined. Electricity
producing installations that combust biomass, bio-liquids, biogas and agricultural biogas in a
multi-fuel combustion facility (including a dedicated multi-fuel combustion installation) may
obtain a certificate of origin in any given year for a production volume equal to the average
electrical energy output in 2011-2013. For installations which commenced production after 31
December 2013, the cap will equal the amount of electrical energy produced over the history
of that generator’s operation.
Hydro power stations over 5 MW which first started producing electricity before this legislation
came into force are fully outside of the system.
2014_raport_EN.docx
- 24 -
Finally, it will no longer be generally possible to comply simply by paying the substitution
charge. Substitution charge will not be an option if the weighted average of certificates of
origin at TGE is less than 75% of the value of the substitution charge for a period of at least
3 months immediately before the day on which an application for the redemption of certificates
of origin is filed. Each obliged party will make statements to that effect each time one day
before meeting the obligation.
Conclusions
Most provisions of draft 6.3 of the law on renewable energy sources may be an important step
forward leading to the adoption of a cost effective system of support for renewable energy
sources in Poland. This system promises to reduce of the burdens on the end customers that
relate to the promotion of renewable energy sources.
Once introduced, auctions are likely to create the best possible structure of the subsector of
electricity generation in from renewable energy sources. This will help Poland comply with EU
target shares of renewables in the overall energy mix of the country. However, there is still an
open issue and it will be subject to notifications of the mechanism proposed for renewables in
Poland in the context of state aid under community law. The decision to cut support for cocombustion in half (adjustment coefficient = 0.5 till 2020) with the exception of dedicated
installations and putting hydro over 5 MW right outside the system, so criticised by the
generation subsector, should help remove the biggest stain on the existing system: continuous
oversupply of green certificates in the system. The right balance between supply and demand
on the certificates market will also be driven by the limitation on substitution charges as a
form of compliance.
P2. New Architecture of the Electricity Market: Power Market, Demand
Side/Aggregators
The Ministry of Economy, energy companies, URE and other energy stakeholders, including
TOE, have worked intensely since 2013 to develop a power market model and power
mechanisms which would ensure profitability of existing and new generation units. There is
big role to be played by TSO in this process. The TSO estimates it may take approximately
two years to implement the power market fully. Simulations, consultations, harmonisation at
the EU level and final implementation are challenging and time consuming tasks. The odds for
a successful implementation are good as there is wide acceptance among energy companies
of the proposed system. In Poland, the related developments in neighbouring countries will
have a bearing on the implementation decisions. Finally, the position of the EC will be an
important factor while selecting the ultimate power market model.
2014_raport_EN.docx
- 25 -
By the time the power market is fully implemented, TSO has adopted a provisional measure
of cold intervention reserve, adoption of a modified transmission service, demand-side
management service and demand-side response) for negawatt power and operating power
reserve.
The cold intervention reserve mechanism consists in TSO paying for maintaining available
power and mobilising it at the request of TSO at times of power deficit. According to PSE
projections, this reserve should be 1,000 MW. This power can be obtained by the operator in
a bidding process.
The operators are looking for additional tools and instruments to improve the balance of
power. It signed a DSR service agreement with PGE GiEK, The service allows power
consumption to be controlled on demand. It secures the National Energy System against major
failures and the high cost of blackouts.
The Operating Power Reserve (OPR) was launched on 1 January, 2014. This mechanism is
designed to ensure that generators maintain a reserve generation capacity in consideration of
a fee. Payments for the reserve are due to both existing and newly added generators. In
principle, the payments should at least in part cover the generator’s fixed cost. The allocated
amount of PLN 573 million has been transferred in the PSE tariff and the measure does not
necessitate any amendments to the Energy Law. This measure is schedule to apply until the
ultimate power market system is put in place.
OPR payments shall apply when the power reserve in NES falls below 18 per cent of the
maximum gross demand. Today, it stands at about 4.1 GW. The value of the 2014 reference
price is 37.13 PLN/MW-h, and it will be adjusted in the following years for parameters such as
inflation.
40
700 000
35
600 000
jednostkowa
Opłata
Unit
Charge
[PLN] [zł.]
30
500 000
25
400 000
20
300 000
15
200 000
10
Total
Payment
[PLN[tys.
,000]
całkowita
Płatność
zł.]
573 143,19 zł
100 000
5
12000
11600
11200
10800
10400
9600
10000
9200
8800
8400
8000
7600
7200
6800
Operator Full
Payment
Płatność
całkowita
operatora
6400
6000
5600
5200
4800
4400
4000
3600
3200
2800
2400
2000
1600
800
1200
0
0
400
Operator
Unit Charge operatora
Opłata jednostkowa
-
Stand-by
Power [MW]
[MW]
Moc w rezerwie
Source: TOE based on data PSE
Figure 10. Operating Power Reserve Payments vs. NES Reserve Levels
2014_raport_EN.docx
- 26 -
The introduction of the OPR payment triggered an electricity price increase in peak hours.
Peak products noted clear price hikes in the derivatives market as early as in late 2013.
Products with delivery on weekdays between 8:00 and 22:00 strengthened their relation to
prices of band products by several per cent at very high spreads. Price expectations for the
peak demand hours made market players reluctant to sell these products in hope for higher
margins on the SPOT market. The average peak to band relation in January 2014
demonstrated in the relevant trades in December was 26 per cent; the figure was 19 per cent
a year before. The presumed price hikes for peak hours were confirmed on the spot market.
Average peak to band relations in the SPOT market were significantly higher in Q1 2014 that
a year before and equalled 21 per cent versus 15 per cent.
These are transitional mechanisms and the growing share of electricity produces in unstable
renewable sources forces energy systems to change the nature of their operations. Adequate
levels of power must be maintained in NES in conventional sources which is more challenging
in an environment characterised by dwindling market prices and pressure on profitability of
new generation capacity.
Consequently, some countries are considering incentive schemes for new systemic sources or
have been trying to implement a power market. Several power market models have emerged
with different levels of activity of market players.
There is centralised power market model where net available power of a unit in a given delivery
period (e.g. month or year) is the market product. The power market is a derivative market
where the total projected power volume is purchased in year n-4 (if auction is held in 2015
delivery will be completed in 2019).
Year of Delivery
Certification and Setting
Auction Parameters
– 1st half of 2015
Main Auction
- June 2015
Additional Auction
- June 2018
Year of delivery:
2018
Source: TGPE, EY
Figure 11. Provisional Timetable for Centralised Power Market Development
In this model, the available power of certified generation units is purchased by PSE in auction
(Dutch or fixing), separately for each agreed period. Bids form a supply curve in relation to
the demand curve thus yielding a price for power. This is how an obligation to deliver power
is created in vulnerable period, i.e. in peak demand period. Units participating in auctions must
by certified by the operator and the negotiable power is forecast by the operators and endorsed
by MG. The unit’s installed capacity may not be lower than 3 MW. Smaller units which would
2014_raport_EN.docx
- 27 -
wish to participate in the power market may seek collective certification, in a balancing group
which will be the power market player on their behalf.
Generators are accounted for with respect to actual available power in the delivery periods
and the compensation is adjusted for unavailability fees or for delivering more power than is
settled in the obligation. The cost of the power market is shifted on customers be mean of a
transmission fee.
Another option for Poland to consider is the decentralised power market. The product here is
a certificate of available power of a generation unit in an agreed delivery period. The power
market is a derivative market where the total projected power volume is purchased in year n5 (the primary market 2015, delivery year 2020).
Year of Delivery
Certification and
Submission of
Power
Commitments
Purchase of Certificates
by PZ to Cover Power
Commitment: JuneSept.
Main TSO
Auction –
November
2015
Option to Call
Additional TSO
Auctions &
Secondary Trade
Year of delivery:
2018
Source: TGPE, EY
Figure 12. Provisional Timetable for Decentralised Power Market Development
This model entails that it is the customers who are obliged to have power certificates, which
means that for customers who do not purchase electricity on their own the certificates have
to be purchased by electricity suppliers. The level of demand for power certificates is to be
equal to the peak power demand forecast including reserves for year n as approved by the
Ministry of Economy. The contractual power is the vehicle for the certificates as much as the
actual power, if momentary consumption can be measured. For both contractual and actual
power, a power coefficient needs to be applied to convert the measured power into a power
obligation.
Differential contracts are proposed as a supplementary mechanism for the power market. They
should primarily be applied for those projects which are deemed vital for the economy or
society under government policy. This includes projects which are worth promoting in the
context of implement EU climate policy. These are long-term mechanisms that are designed
as safeguards against risks linked to building new generation capacity. Differential contracts
transfer the price risk from the operators of a new unit to all electricity customers who use
NES. These contracts play an important role especially for new capacity characterised by
2014_raport_EN.docx
- 28 -
extremely high operating cost. However, one of the concerns around differential contracts is
the potential for interpreting them as state aid.
Apart from mechanisms applied to electricity generation, demand-side management solutions
are being considered and implemented. They include DSR service for negawatt power – they
help control power consumption ‘on demand’. Despite the fact the PSE pays PLN 750 for each
unused megawatt hour it is still profitable for the national operators as it protects it against
major failures and potentially much higher costs of blackouts.
Voluntary and provision adjustment of power demand by the customer responds to:

Price signal (market price or electricity tariff);

Instruction by the Operator/Aggregator under the relevant service agreement.
Another long-term option is DSM designed to control power demand by improving energy
efficiency.
This approach entails that there will be Demand Aggregators or intermediaries between TSO
and end customer whose responsibility will be to:

Identify the terms and conditions for the relationship with TSO;

Develop and agree on projects for customers;

Oversee the service provision;

Process mutual settlements and formal arrangements;

Manage the risk of failure to reduce demand.
This market interaction helps increase the reduction potential by clustering multiple users with
diverse reduction capacity where their total collective capacity meets the operator’s
expectations in terms of the level and timing of the reduction resulting from the activation of
several more new customers and using power that is not available on a continuous basis.
A new type of balancing mechanism unit, Active Consumption Balancing Unit (ACBU), has been
introduced to fulfil the function. It represents the controlled consumption for which Load
Reduction Bids can be placed. Such bids can be placed by customers who have devices and
installations on the receiving end that can be directly controlled by TSO.
2014_raport_EN.docx
- 29 -
Conclusions
The new electricity market model may be a vital contributor to an undisturbed generation
business, responsible investment policy and guaranteed security of electricity supplies in NES
in the long term. The emerging system drives the profitability of existing and new generation
capacities. Before the ultimate power market model is selected and implemented, market
players must rely on the provisional DSR service and operating power reserves.
Poland is facing a choice of its power market model, largely between a centralised or
decentralised approach. Differential contracts may supplement the regime by reducing the
investment risk related to low-emission projects.
The power balance stability is also supported by services rendered by customers. A sustainable
reduction in energy demand can be achieved through energy efficiency and load curve
management to ensure that peak loads are reduced or shifted to off-peak territories. Such
DSM measures may be optimised by Demand Aggregators for the benefit of both TSO and
market players on the receiving end.
TOE representatives have been actively involved in this process. TOE welcomes specific
proposals (documents, simulations and impact assessments, including end customer impact
studies). TOE stands ready to engage in the development process on a broader basis,
particularly in the area of studying the impacts of the proposed approach on the wholesale
and retail electricity trade sector. We support measures that create a strong business case for
new investment. However, we suggest leaving behind the discussions about the approach and
instead moving to a more in-depth impact analysis.
P3. Impacts of Planned Changes in EU Climate Policies on Poland’s Energy
Sector
The European Commission proposed new targets for the energy and climate policy in midMarch 2014. The existing ‘3x20’ package includes:

Reduce CO2 emissions by 20 per cent by 2020;

Reduce energy consumption by 20 per cent;

Increase the share of energy from renewable energy sources by 20 per cent.
According to the President of the European Commission, J.M. Barroso, Europe is a good course
towards achieving these targets.
2014_raport_EN.docx
- 30 -
20% reduction of GHG
emissions
Share of renewables
goes up to 20%
20% reduction of
energy consumption
2020
Estimate:
21%
2020
Estimate:
-24%
2020
Estimate:
-17%
Source: Presentation by President J.M. Barroso at the European Council meeting on 20-21 March 2014, European Commission
Figure 13. Europe on a Good Course towards Achieving 3x20 Targets in 2020
The new more ambitious greenhouse gas emission reduction and renewables share targets
are to contribute to the development of a low-carbon economy, send a positive message to
investors in renewable energy sources, encourage the creation of ‘green’ jobs and support
energy security. These targets are:

Reduce CO2 emissions by 40 per cent by 2030;

Increase the share of energy from renewable energy sources by at least 27 per cent
by 2030.
A major policy review and MS and EU performance evaluation in the area of energy efficiency
are planned in 2014.
20%
Reduction of
GHG Emissions
20%Share of
Renewables
20% Energy
Efficiency
40%
Reduction of
GHG Emissions
Energy
Efficiency:
Review in
2014
≥27%
Share of
Renewables
Source: Presentation by President J.M. Barroso at the European Council meeting on 20-21 March 2014, European Commission
Figure 14. New Ambitions for 2030
However, bearing in mind the nature of electricity generation, available resources and the
potential to increase the share of energy from renewable energy sources, a more stringent
climate policy course of the EU may be detrimental to Poland’s energy sector. Today, about
2014_raport_EN.docx
- 31 -
87 per cent of electricity is produced based on the indigenous fuel, i.e. hard coal and lignite.
While this fuel ensures the nation’s energy security it generates high emission levels.
Therefore, fluctuations of CO2 allowance prices directly affect the prices of electricity. The
amount of energy from renewable energy sources has been steadily growing every year. The
share of this energy in electricity consumption has also grown but on average does not exceed
11 per cent per year. The growth of energy from renewables has been possible due to the
supporting mechanism with the cost of the system being shifted on consumers. Additional
obligations to increase the share of renewables may affect electricity prices even further.
Meanwhile, there are some concerns about the performance of the entire economy that are
linked to existing climate policy targets. Analysts suggest that this EU policy may cause: GDP
decline, falling employment rates, increased energy bills and deterioration of the competitive
position vis-à-vis global players. Some claim that the EU climate policy fails to reduce
greenhouse gas emission on a global scale and no climate policy of some (or even all)
developed countries can promise a significant reduction in global emission. Instead, it results
in a considerable loss of wealth of participating countries and, indeed, all countries on the
planet4.
Conclusions
The process of developing new climate policy targets must consider social and economic
factors in countries affected by this policy and a thorough impact assessment must be
conducted. It is vital that this process takes consideration of Poland’s unique position and the
characteristics of the Polish energy sector. Furthermore, careful consideration should be given
to the case for more stringent policy measures, especially in the context of no parallel
measures in other high-emission countries worldwide. In the long run, the national electricity
market in Poland will evolve from the solid fuel monoculture towards a more diverse fuel mix.
This transformation will drive greater flexibility and responsiveness to market developments in
the EU and will help integrate into the European markets.
4
Source: National Chamber of Commerce, EnergSys: Zestawienie najważniejszych argumentów merytorycznych
uzasadniających negatywną ocenę unijnej polityki klimatycznej oraz potrzebę jej gruntownej modyfikacji [Summary Critical
Assessment of the EU Climate Policy and Recommendations for Change]. Warsaw, July 2013.
2014_raport_EN.docx
- 32 -
III. ENERGY PRICING ON THE WHOLESALE MARKET
1.
Day-Ahead Market
In 2013, prices fell by 11% yoy compared to a decline of 13% in 2012. The average hourly
price of electricity on the TGE Day-Ahead Market came to 153.85 PLN/MWh in this period
(173.74 PLN/MWh in 2012). For peak hours (on weekdays, from 8:00 a.m. to and including
10 p.m.22), the price dynamic was similar. The 2013 average equalled 177.25 PLN/MWh, i.e.
it fell by 11% compared to the year before (in 2012, peak hour prices fell by 10% on annul
basis).
The volatility of the electricity price was much lower than in 2012. The lowest decline (13%)
came in Q4 2013 versus the same quarter in 2012 with the price at 146.44 PLN/MWh. In Q1
the price fell by 12% down to 159.22 PLN/MWh; in Q2 again by 12% down to 149.04
PLN/MWh. The decline was the weakest in Q3: 9% versus Q3 2012.
The main factors affecting the falling electricity prices on the SPOT market in 2013 include the
price decline in the German market and increased generation in wind farms. The average base
index on EPEX SPOT came to 37.97 EUR/MWh (11% lower than in 2012). The generation in
wind farms increased to nearly 6 TWh, i.e. by 47% more than the year before. Furthermore,
the structure of generation changed in 2013: output rose in hydro by 500 GWh and gas-fired
units reduced their production by 1.3 TWh. With the growing demand (by 0.6% yoy) an
increase in output was noted in lignite-fired units (2.46%) and coal-fired units (0.1%). The
interconnect exchange balance was at -4.5 TWh compared to -2.8 TWh in 2012. A significant
change affected the Poland-Sweden fixed link where imports shrank from 2.5 TWh down to
0.2 TWh. Parallel transborder exchange with Germany, Czech Republic and Slovakia noted
exports worth 4.8 TWh (decline by 0.6 TWh yoy). At the non-parallel interconnect, exports
remained at a comparable 1 TWh. Imports from Ukraine did not change compared to the year
before and stayed at 1 TWh.
In Q1 2014, electricity prices increase by 1% to the level 161.31 PLN/MWh as a result of the
operating reserve fee and by 7% in peak hours despite the structural change in the
interconnect exchange balance. Poland became a net importer (0.3 TWh compared to exports
of 1.7 TWh in Q1 2013). In addition, rapid growth was hampered by a decline in demand by
1.4% and wind farm generation by 60% up to the level of 2.3 TWh, which translated into
reduced production in commercial power plants by nearly 9 %.
2014_raport_EN.docx
- 33 -
Day-Ahead Market, TGE 2011: Q1 2014 (PLN/MWh)
Figure 15. Daily Prices on the TGE Day-Ahead Market
National Power Demand 2011: Q1 2014 (TWh)
Source: TOE based on data PSE S.A.
Figure 16. Total domestic monthly demand for electricity (TWh)
2014_raport_EN.docx
- 34 -
2.
Derivatives Market
The exchange market experienced a considerable increase in volumes in 2013. Volumes on
the TGE futures market were higher than a year before (approximately 154 TWh in 2013
compared with approximately 113 TWh in 2012). In contrast, trading volumes on broker
platforms equalled approximately 52 TWh, which was about 14 TWh less than in 2012.
Trading Volume (TWh)
Source: TOE based on TGE, POEE, and TFS data
Figure 17. Trading volumes on the Polish electricity market
BASE_Y_14 quoting kept going down rapidly until September. It reached a historic low at
145.35 PLN/MWh on 15 July, 2013. It rebound to 161.78 PLN/MWh in September only to
return onto the downward curve. Ultimately, the valuation on the last day of trading came to
152.52 PLN/MWh. The only material change in correlation between Polish and neighbouring
markets in 2013 was a stronger correlation between Poland and Hungary, which was 0.89 and
was the highest of all other markets. In contrast, the correlation weakens slightly for the
German and Czech market to 0.87 (0.91 in 2012).
Table 1. Derivative Electricity Markets Correlation Matrix
PL
PL
CZ
GE
HU
CZ
1
0.87
0.87
0.89
GE
0.87
1
0.99
0.95
HU
0.87
0.99
1
0.94
0.89
0.95
0.94
1
Source: Polenergia Obrót
The weakening of the EUR/PLN exchange rate, which was at 4.15 at year-end (4.07 at yearbeginning), affected the interdependence between markets and the valuation of futures.
2014_raport_EN.docx
- 35 -
Poland
Czech
Rep.
Germany
Hungary
Source: Polenergia Obrót
Figure 18. BASE Y-14 quotations (PLN/MWh).
Poland
Czech
Rep.
Germany
Hungary
Source: Polenergia Obrót.
Figure 19. BASE Y-14 quotations (EUR/MWh).
The BASE_Y-14 contract traded at TGE in a smaller range compared to the year before. The
annual minimum was 145.35 PLN/MWh (July) and the maximum occurred early in the year at
178.38 PLN/MWh. The average annual price of BASE_Y-14 came to 155.28 PLN/MWh
compared with 197.84 PLN/MWh for BASE_Y-13. For the last 40 quotations, the average was
151.81 PLN/MWh and it was lower than SPOT performance in 2013.
2014_raport_EN.docx
- 36 -
IV.GAS MARKET
1.
Regulatory Environment
New Tariff Regulation for Gas
The long awaited ordinance of the Minister of Economy of 28 June 2013 on specific rules of tariff
development and calculation in gaseous fuel trade [13], hereinafter called the Tariff Ordinance.
The advantages of the new Tariff Ordinance include:

Gas transactions will be settled in energy units (kWh) from 1 August 2014;

Trading companies will include only the price of gas and a subscription fee
(sale/integrated service);

A modified method of price calculation for gaseous fuels (the price will include the cost
of purchase of transmission at connection points to the transmission system);

Tariff prices of gaseous fuels are to be interpreted as maximum prices; lower prices
may be applied subject to equal treatment of all customers in a given tariff group;

Trading companies that provide integrated services apply the prices of gaseous fuels
and the subscription fees defined in the tariff to bill their customers for trade in gaseous
fuels and for transmission or distribution of gaseous fuels they will apply the rates and
the terms and conditions set out in a tariff of the relevant transmission or distribution
company whose network is directly connected to the customer.
However, there are disadvantages of the new Tariff Ordinance:

Customers receiving a gaseous fuel from a gas network from one distribution point
under more than one contract will be allocated to tariff groups separately for each of
the contracts;

In case the metering system is faulty and yields lower readings the lowered bills will
be adjusted only for the latest billing period (even though no trading company is
responsible for the readings);

Maximum K coefficients are too high and they inflate fixed fees in short-term contracts
(less than 12 months);

There is still a subscription fee in trading (there should be a trading fee and subscription
should only apply to transmission/distribution); the subscription fee calculation method
is obscure;

Interrupted throughput capacity is treated as continuous throughput capacity if fully
utilised.
2014_raport_EN.docx
- 37 -
„Small Three Pack”
On 11 September, 2013, the Energy Law was amended as a result of a result of the ‘Small
Three Pack” amending legislation [7]5.
Commodity Exchange Obligation for Gas
The Energy Law [12] in its new Article 49b, imposes an obligation on companies trading in
gaseous fuels to sell part of the high-methane natural gas supplied fed into the transmission
network in any given year (i) in connection points in the national transmission system on points
of interconnection to transmission system of other countries or (ii) gas pipeline systems in
mines, or (iii) liquefied natural gas terminals – on commodity exchanges as defined in the Law
of 26 October, 2000 on commodity exchanges or on a market organised by an entity on the
territory of the Republic of Poland that manages a regulated market as defined in the Law of
29 July, 2005 on trade in financial instruments.
The percentage of gas to be traded in commodity exchanges is fixed:

30% until the end of 2013;

40% from 1 January, 2014;

55% from 1 January 2015.
This legislation only applies to one company today: PGNiG S.A. – this is the only company that
meets the statutory criteria [12].
The Law [12] provides for exemptions from the commodity exchange obligation. Exemptions
apply to gas in mandatory reserves, gas exported or purchased by gas operators and used
internally. The exemption also applies to companies that import gas but have a total
throughput capacity of less than 10 per cent of the sum total of the capacity of all transborder
interconnections. Today, all alternative natural gas importers are exempt from this obligation.
The commodity exchange obligation is another attempt at liberalising the gas market in Poland
and a response to the failure to implement the planned Gas Liberalisation Program.
5
This part of the Report presents major ‘Small Three Pack’ amendments applicable to gas. Changes in the electricity
market resulting from this legislative initiative are presented in Subsection 2 of Section II.
2014_raport_EN.docx
- 38 -
Mandatory Reserves of Natural Gas
The Law on stocks of crude oil, oil and natural gas products and emergency procedure if
national fuel security is at risk or the fuels market is disturbed [11] in its Article 24a Paragraph
1 allows mandatory gas reserves to be maintained outside of Poland in another EU Member
State.
Gas Trade at a Commodity Exchange
The Law of 26 October, 2000 on commodity exchanges (Journal of Laws 2010 Issue 48,
Section 284, as later amended) provides that gas trading companies have the right to closed
transactions at a commodity exchange if they are members of that commodity exchange
(before, gas trades could only be closed by brokers). Market participants, including TOE,
welcome this change.
2.
Barriers to Gas Market Growth in Poland
Mandatory Approval of All End Customer Tariffs by URE
According to the communication of URE President No. 21/2013 of 22 July, 2013 regarding the
timetable of exempting energy companies that have concessions to trade in gaseous fuels or
trade in natural gas with foreign parties from the obligation to have their tariffs for gaseous
fuels sold to customers other than households approved by URE, URE President states that
with the introduction of the commodity exchange obligation an environment is created in which
trading companies can be exempted from the requirement to submit their gas tariffs for
approval. However, this commitment has not been kept by URE President to date even though
the commodity exchange obligation has been effectively introduced.
TOE is of the option that continued regulation of all end customer tariffs applied by trading
company is in principle inconsistent with UE regulations, inhibits the market growth and is
detrimental to the economy and customers.
Notably, in another statement by URE President of 29 June, 2001 regarding exemption of
energy companies that generate or trade in electricity from tariff submission and approval,
URE President did grant an exemption to energy companies which have a concession to trade
in electricity under Article 49 of the Energy Law. The key grounds for the decision were
institutional, ownership and structural changes in the electricity sector. Also, this decision was
designed to accelerate change in the electricity market. The environment in the gas sector in
Poland is now very similar to that in the electricity sector in 2001.
Therefore, TOE recommends deregulation of gas tariffs as soon as possible.
Assuming that PGNiG S.A. will continue as the last resort select with tariffs containing
maximum prices, this scenario would provide customers with the right to choose their supplier
and ensure security within the reference price applied by PGNiG S.A.. This would also be a
good starting point for deregulating tariffs.
2014_raport_EN.docx
- 39 -
Existing Legislation on Mandatory Natural Gas Reserves
With its mechanism of calculating mandatory reserves based on the amount of imported gas,
the law on mandatory stocks of natural gas [11] is still one of the biggest market barriers to
all alternative trading companies planning to import gas to Poland.
Current legislation is discriminatory to trading companies which could be a real alternative to
the dominant market player. It effectively discourages companies from increasing volumes of
imported gas over 100 million m3. This is a fact that emerges from desk research and market
observations: there is very little or no interest among alternative trading companies in access
to storage capacity.
Only by instant amendments to the law by ‘shifting’ the storage obligation onto the volumes
of gas delivered to protected customers can this major market inhibitor be removed and gas
market be liberalised in Poland. Thus, it would lead to a positive outcome of the dispute with
the European Commission around gas tariffs for end customers.
Existing Ordinance on Minimum Diversification of Oil and Gas Supplies
The Ordinance on minimum level of diversification of oil and gas supplies
(Journal of Laws 2012, Issue 95, Section 1042) imposes fixed shares of gas imports from the
neighbouring countries which prevents trading companies from identifying import
opportunities based on a business case. The very definition of imports is unclear: depending
on the source it includes or excludes deliveries from UE Member States. TOE believes it would
be sufficient to state that there exist import opportunities from different countries through the
existing interconnectors without any requirement to physically diversify gas supply on a
company by company basis.
Excessive Reporting Requirements for Natural Gas Trading
Companies which have concessions to trade in natural gas, including import/export, are
expected to submit numerous reports, regularly or on demand, to the Ministry of Economy,
URE, Energy Market Agency (ARE), Main Statistical Office, customs authorities. Often, it is
about the same data. The reporting requirement applies to all companies irrespective of the
actual business type and scale even if the scale of their operations is very limited. This
consumes significant resources which is a considerable entry barrier. Furthermore, any delays
in filing reports trigger financial sanctions. Also, URE President has applied an unfavourable
interpretation of the provisions on reporting requirements.
TOE recommends simplifying reporting procedures and limiting the reporting requirement to
the necessary minimum.
2014_raport_EN.docx
- 40 -
Other Barriers on the Gas Market in Poland
3.

Complex and difficult procedure to switching suppliers (especially in cases of partial
switching);

Provisions in existing agreements with PGNiG S.A. regarding take-or-pay and a complex
procedure for reselling purchased gas volumes. The company promised to remove the
provisions on the request of the Office for the Protection of Competition and Consumers
(UOKiK);

Unfavourable tariff terms and conditions for short term gas sale contracts;

Integrated agreement is the only profitable vehicle for gas sales (selling under
decoupled contracts means customers have to go directly to the balancing market);

Complex settlement process on the balancing market;

Block capacities in transborder interconnectors;

Blocking interrupted throughput capacity.
Gas Trading at TGE SA
Gas trading at TGE S.A. was launched on 20 December, 2012. This was the first step towards
gas market liberalisation in Poland in line the internal electricity and gas market and regional
markets implementation agenda proposed by the European Commission. Market makers have
had access to BASE monthly, quarterly and annual contract trades on this market.
In 2013, the total volume of all gas transactions closed came to 19,072 MW, of which 17,707
MW closed on the spot market, and 1,365 MW on the derivatives market (including auctions).
The annual volume weighted average price of contracts closed in 2013 equalled 116.28
PLN/MWh (including auctions), and the volume weighted average of all transactions on the
gas Day-Ahead Market came 116.75 PLN/MWh. In futures, GAS_BASE_Y-14 reported VWA
transaction price of 114.54 PLN/MWh (including auctions).
Figure 20 presents volumes and VWA prices for products with delivery in 2013 and in Q1 2014,
including gas auctions. Figure 21 shows volumes and VWA prices for the Day-Ahead Market
and the average price on the balancing market (CRG) between January 2013 to March 2014.
2014_raport_EN.docx
- 41 -
Derivative Market
Volume of monthly contracts
Prices of monthly contracts
Volume of 12-month contracts
Prices of 12-month contracts
Figure 20. Average prices and volumes of monthly and annual contracts (including auctions)
at the Energy Commodity Exchange
SPOT and Balancing Markets
Figure 21. Average monthly prices and volumes of gas at DAMg and average monthly price
of gas on the balancing market (Gas Reference Price)
2014_raport_EN.docx
- 42 -
In Q1 2014, the total volume of all transaction closed on the gas market was 4,819 MW, of
which 3,697 MW on the spot market and 1,122 MW on the derivatives market (including
auctions). Gas prices were falling in the period covered by this Report. The average DAMg
price was 104.17 PLN/MWh and the average price of derivative contracts closed in Q1 settled
at 104.69 PLN/MWh (including auctions).
There was very little price volatility on the balancing market. According to IRiESP, the price is
a weighted average of price based on the cost of gas purchase by TSO on a particular gas
day. Throughout most of 2013, CRG was at 119.90 PLN/MWh. In October 2013 the price fell
down and averaged at 114.22 PLN/MWh only to rise to 115.07 PLN/MWh in November and to
117.02 PLN/MWh in December. In Q1 2014, CRG hovered at 116.60 PLN/MWh, and on 20
February downed to 101.50 PLN/MWh to remain at this level until the end of March 2014.
Conclusions
The change in the gas market implemented in 2013 was a positive step towards gas market
liberalisation in Poland. This is especially true of the changes introduced by the new Ordinance
of the Minister of Economy of 28 June, 2013 on specific rules of tariff development and
calculation in gaseous fuel trade and the introduction of the commodity exchange obligations
for gas under the ‘Small Three Pack’, even though no visible impacts of the latter have been
observed to date.
There are concerns about the lack of clear measures to remove the market barriers described
in Subsection 2 of Section IV, particularly to deregulate tariffs and modify storage
requirements.
TGE closed transactions for approximately 200 million m3 of gaseous fuels. With the mandatory
30% minimum in place, the volume should come to approximately 1.4 billion m3. The minimum
was not kept by PGNiG in 2013 and the company is subject to an obligation to sell 40% of its
gas through the exchange mechanism in 2014.
Most of the gas on the Polish market in sold under bilateral contracts and it will be extremely
challenging to liberalise the end customer market unless these contracts (between PGNiG as
the dominant supplier and its customers) are modified or terminated.
TOE strongly believes that the Energy Commodity Exchange should increase its gas business
to improve liquidity in the gas market. First, liquidity would strongly benefit from current day
transactions to increase market responsiveness. Secondly, the derivative market should offer
products that are found in foreign exchange market (e.g. EEX). A weekend product could also
be an effective liquidity booster.
2014_raport_EN.docx
- 43 -
V.
RECOMMENDED SHORT- AND LONG-TERM MEASURES
Short-Term Measures (STM). Electricity
1.DK. URE President to deregulate G tariffs for all customers including households since all
URE’s pre-conditions have been met:
•
Protection granted to vulnerable customers;
•
General Distribution Agreement for Integrated Service completed;
•
‘Emergency’ selling well regulated.
2.DK. Implement standard agreements/contracts between end customer, Distribution System
Operator, seller; in particular, implement GDA-I and comprehensive agreements.
3.DK. Allow sector self-regulation by implementing the TOE Code of Good Practices.
4.DK. Create a coherent, predictable and stable support system for co-generation and
renewable sources of energy.
5.DK. Analyse and implement modifications to TGE session scheduling to standardize fixing.
6.DK. Launch market for financial contracts.
7.DK. Monitor plans to introduce market coupling as a mechanism providing access to
transborder power.
Short-Term Measures (STM). Gas
8.DK. URE President to deregulate all gas tariffs except for households.
9.DK. Amend legislation on mandatory storage of high-methane natural gas to impose a
storage obligation on gas volumes delivered to protected customers in line with the EU
Directive (households, hospitals, nursery schools, pre-school etc.).
10.DK. Amend Ordinance on diversification/ URE President’s interpretation of the Ordinance
with respect to the Mallnow reverse capability.
11.DK. Simplify and reduce reporting requirement to bare minimum.
12.DK. Modify IRiESP of GAS-SYSTEM S.A. and IRiESD of Polska Spółka Gazownictwa Sp. z
o.o. to simplify supplier switching procedure (particularly partial switching) and to
simplify settlements on the balancing market.
13.DK. Enforce the obligation to sell high-methane natural gas through the commodity
exchange platform as required by law; implement liquidity-friendly measure on this
market and extend the product portfolio.
Long-Term Measures (LTM). Electricity
1.DD. Continue efforts to further develop the commodity exchange market (including financial
products) and integrate it to other European electricity exchange markets.
2014_raport_EN.docx
- 44 -
2.DD. Continue conceptual and implementation work towards a new architecture of the
electricity market, including discussions on the feasibility of a power market in the EU
and in Poland.
3.DD. Expand transborder capacities in all geographies.
4.DD. Explore the need and feasibility of the energy and climate package in the context of
market conditions, EU and Polish economic realities and new technology trends in
energy markets.
Long-Term Measures (LTM). Gas
5.DD. URE President to deregulate household tariffs.
6.DD. Reasonably extend existing or build new transborder capacities towards EU.
2014_raport_EN.docx
- 45 -
VI.
ACRONYMS AND TERMS
ACER
- Agency for the Cooperation of Energy Regulators
Crk
- Average Electricity Selling Price at Competitive Market
DSM
- Demand-Side Management
DSR
- Demand-Side Response
EU ETS
- European Union Emissions Trading Scheme
GPW
- Warsaw Stock Exchange
GDA
- General Distribution Agreements
GDA-I
- General Distribution Agreement for Integrated Service
IRiESD
- Distribution Grid Operation and Maintenance Instruction
IRiESP
- Transmission Grid Operation and Maintenance Instruction
EC
- European Commission
NES
- National Electricity System
MiFID
- Directive 2004/39/EC of the European Parliament and of the Council of 21 April,
2004 on markets in financial instruments
MoE
- Ministry of Economy
OPR
- Operational Power Reserve
DSO
- Distribution System Operator
TSO
- Transmission System Operator – PSE Operator SA
PTPiREE - Polish Association of Electricity Transmission and Distribution
REMIT
- Regulation (EU) No. 1227/2011 of the European Parliament and of the Council of
25 October, 2011 on wholesale energy market integrity and transparency
RB BM
- Balancing market / imbalance
IDM
- Intra-Day Market
DAM
- Day-Ahead Market
DAMg
- Day-Ahead Market for Gas
GDM
- Gas Derivatives Market
G tariff
- a collection of electricity prices and tariffs for households
TGE
- Towarowa Giełda Energii SA – Electricity Commodity Exchange
TOE
- Association of Energy Trading
TPA
- Third Party Access
URE
- Energy Regulatory Office
2014_raport_EN.docx
- 46 -
VII. REFERENCES
[1]
Directive of the European Parliament and of the Council 2012/27/EU of 25 October, 2012 on
energy efficiency, amending Directives 2009/125/EC and 2010/30/EU and repealing Directives
2004/8/EC and 2006/32/EC.
[2]
Regulation of the European Parliament and of the Council 1227/2011 of 25 October, 2011 on
wholesale energy market integrity and transparency.
[3]
Directive of the European Parliament and of the Council 2009/72/EC of 13 July, 2009 concerning
common rules for the internal market in electricity 2003/54/EC.
[4]
Directive of the European Parliament and of the Council 2009/73/EC of 13 July, 2009 concerning
common rules for the internal market in natural gas and repealing Directive 2003/55/EC.
[5]
Directive of the European Parliament and of the Council 2009/28/EC of 23 April, 2009 on the
promotion of the use of energy from renewable sources amending and subsequently repealing
Directive 2001/77/EC and 2003/30/EC.
[6]
The Law of 14 March, 2014 amending the Energy Law and certain other laws (Journal of Laws,
Section 490).
[7]
The Law of 26 July, 2013 amending the Energy Law and certain other laws (Journal of Laws,
Section 984).
[8]
The Law of 28 April, 2011 on trade in greenhouse gas emission allowances (Journal of Laws 122,
Section 695, as later amended).
[9]
The Law of 15 April, 2011 on energy efficiency (Journal of Laws nr 94 Section 551 as later
amended).
[10] The Law of 17 July, 2009 on the system of managing greenhouse gas and other emissions
(Journal of Laws 130, Section 1070, as later amended).
[11] The Law of 16 February, 2007 on stocks of crude oil, oil and natural gas products and emergency
procedure if national fuel security is at risk or the fuels market is disturbed (Journal of Laws 2012,
Section 1190, as later amended).
[12] The Energy Law of 10 April, 1997 (Journal of Laws 2012, Section 1059, as later amended).
[13] Ordinance of the Minister of Economy of 28 June, 2013 on specific rules of tariff development
and calculation in gaseous fuel trade (Journal of Laws 2013, Section 820)
[14] Law on Renewable Energy Sources including rational and regulatory impact assessment. Draft.
Version 6.3. Ministry of Economy, 28 March, 2014
[15] Barroso J.M.: Europe’s Priorities in the Area of Climate and Energy: Future Actions.
Presentation by President J.M. Barroso at the European Council meeting on 20-21 March 2014
[16] About the Revolution on the Energy Market. URE statement (www.ure.gov.pl) in the We Are
Changing Polish Industry Forum. Warsaw, 17 February 2014
[17] Compendium of Electricity Consumer Rights. URE, Warsaw, 2014.
[18] Good Practices of Electricity Sellers or What Customers Should Expect of a Fair Seller.
TOE Code of Good Practices, Warsaw 2014.
2014_raport_EN.docx
- 47 -
[19] Information of 28 March, 2014 regarding substantial modifications to the Renewable Energy
Sources Bill as a result of the Legal Commission’s input. Ministry of Economy, Warsaw, 2014
[20] Polish electricity sector statistics. ARE SA, 2013.
[21] Data supplied by electricity trade companies, TOE supporting members, 2013.
[22] ELECTRICITY MARKET IN POLAND - status on 31 March 2013 TOE Report. Warsaw, 30 April 2013
[27] Roadmap for Electricity Price Liberalisation for All Customers: Towards Customer Rights
and Effective Competition in the Energy Sector. Warsaw, URE, January 2008.
[28] www.cire.pl
[29] www.mg.gov.pl
[30] www.ure.gov.pl
[31] www.toe.pl
2014_raport_EN.docx
- 48 -
VIII. TOE MANAGEMENT BOARD
Members of TOE Management Board:

Krzysztof Zamasz, President

Krzysztof Bonk, Vice-President

Robert Bański, Vice-President

Marcin Ludwicki, Vice-President

Ireneusz Perkowski, Vice-President

Grzegorz Kinelski

Jacek Komolka

Marek Król

Marek Krzysteczko

Tomasz Lender

Janusz Moroz

Witold Pawłowski

Piotr Rogóż

Piotr Wąsik

Katarzyna Wierska-Kuberka
TOE Office Staff:

Monika Gasiuk

Marek Kulesa
2014_raport_EN.docx
- 49 -
IX.
AUTHORS
Members of the TOE Team responsible for the development the Electricity Market in Poland
Report:

Robert Bański, PGE Polska Grupa Energetyczna S.A.

Sławomir Białczak, PGE Polska Grupa Energetyczna S.A.

Anna Gabrysiak, ENEA Trading Sp. z o.o.

Piotr Gniewkowski, Ordinary Member of TOE, Kancelaria Radcy Prawnego

Wojciech Graczyk, RWE Polska S.A.

Paweł Hawranek, Vattenfall Energy Trading Sp. z o.o.

Marek Kulesa, TOE – Report Co-ordinator

Janusz Kurzak, Freepoint Commodities

Kamil Krasowski, ENEA Trading Sp. z o.o.

Marek Krzysteczko, Polenergia Obrót S.A.

Michał Kukurba, Polenergia Obrót S.A.

Witold Lebek, Tauron Polska Energia S.A.

Marcin Ludwicki, ENERGA - Obrót S.A.

Andrzej Malec, RWE Polska S.A.

Maciej Markowski, Vattenfall Energy Trading Sp. z o.o.

Karolina Mucha-Kuś, Tauron Polska Energia S.A.

Witold Obniski, RWE Polska S.A.

Robert Pieczarko, Tauron Polska Energia S.A.

Maciej Sołtysik, Tauron Polska Energia S.A.

Michał Zalewski, ENERGA - Obrót S.A.
2014_raport_EN.docx
- 50 -

rynek energii elektrycznej w polsce

Transcription

Similar documents

Look around you, it couLd save your Life

(a) Should we be burning wood, gas or coal? (2014)

PayCity`s S3 Electricity Vending and Management System

Rob Niehoff

World Youth Day

Quiz: Energy Hog or Energy Hero?

new Brochure EN Front v2

Jeanette Fitzsimons Green Party Co

inTEGRATEd infRASTRuCTuRE SERviCES

Amory B. Lovins - ICEF Innovation for Cool Earth Forum