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Development of electricity and gas markets - 2012 summary

Decisions undertaken with a view to creating regulatory environment favouring freedom of business activity in the gas and electricity markets, resulted in the development of these markets - said Marek Woszczyk, President of ERO summarising the year 2012.

From the Energy Regulatory Office’s perspective year 2012 was a year of the increase of energy exchange market’s liquidity and retail energy market development, with the constantly growing number of supplier switching, including households.

During that year the General Distribution Agreement (GDA) document, known as common service agreement-GDA, took its final shape. The document enables all suppliers to conclude common service agreements with household customers. At the same time it fulfils one of the conditions necessary for the full market liberalization indicated in the “Roadmap for Price Deregulation for All Electricity Consumers” elaborated by ERO.

2012 was also marked by creation of the competitive gas market. Intensified works towards starting the liberalization process were conducted throughout the year. As a result the gas exchange on the Polish Power Exchange was launched on 20 December 2012, finalising a very important phase of gas market deregulation process.

The intensive legislative works aimed at introduction of significant changes to the law were carried out over the past twelve months. All these efforts have resulted in, among others, proposal to simplify the current cost-based approach to heat tariffs setting by introducing, to some extent, an ex-post tariff control. Pursuant to the drafted amendment of the Energy Law heating companies will be allowed to calculate the tariff according to the rules defined in the law, but will not be obliged to submit the tariff for approval of the President of ERO. Another simplification proposal to simplify existing approach assumed rewarding energy companies for activities improving their energy efficiency.

Furthermore, active works to support and promote investments for creation of smart grid system in electricity were conducted by the regulator. Responding to challenges connected with modernisation of electricity grid, ERO together with PSE SA (Polish TSO) launched a new initiative called “Energy Market Workshops”. This is aimed at effective introduction of modern technological solutions to the energy market, to assure transparency as well as stability of electricity transmission and distribution. Workshops gathering management of key DSOs are a working platform for collection and exchange of knowledge in smart grids deployment.

Continuation of works aimed at transformation of the electricity grid into smart grid is one of the main goals for 2013 set out by the President of ERO. It is a key challenge for the development of electricity system in Poland.
Another important goal, still actual in 2013, is to take further steps towards liberalization of gas market by implementing action plan provided for in the “Roadmap for gas price release”. Realisation of these actions will speed up the progress in the development of transparent wholesale gas market and supplier switching mechanisms on the retail market.

31.12.2012

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