Natural gas market

In 2019 there were in force liberated in 2017 provisions that regulate the gas market in Poland, where a relevant issue is limiting the administrative supervision over the prices of gaseous fuels.

On 1.01.2017 provisions of the act – Energy law became effective, which waive by operation of law the supervision of the President of the Energy Regulatory Office over the tariffs of gas sale to wholesale customers, sale of LNG and CNG and sale of gas to final customers who purchase this fuel in a virtual point or in the mode of tenders, auctions of public procurements.

Since 1.10.2017 the obligation was waived to submit for acceptation by the President of the ERO the tariffs on sale of high-methane and nitrogen-rich natural gas to final customers not being households. The supervision of the President of the ERO over the tariffs (i.e. maximum prices) for network gas sold to households has been maintained until the end of 2023 (source: URE).

According to the valid principle of Third-Party Access (TPA) to the network, all final customers have the right to freely choose the seller of electricity and natural gas. Final customers using the network of a local supplier can individually choose the seller of electricity or gas that will offer most attractive conditions of sale. The President of the Energy Regulatory Office conducts a cyclical assessment of the factual use of the right to choose the seller.

In the past year there was a slight increase of the number of customers who changed the gas seller. According to the data presented by distribution system operators in 2019 the seller was changed by 53.92 thousand of customers against 53.90 thousand of customers in 2018 (up by 0.1% yoy), whereas in the number of metering systems in 2019 the change was conducted for 61.7 thousand of systems against 61.0 thousand of systems in 2018 (up by 1.0% yoy). At the end of 2019 the number of changes of the seller amounted in total to 244.2 thousand whereas in metering systems in total 286.4 thousand since the moment when the possibility to change the seller was made available (incremental data) (source: URE).

The volume of natural gas trading at the Polish Power Exchange in 2019 amounted to 146 106 097 MWh, which is up by 2.0% against 2018, and at the same time it is the best result in the history of this commodity trading on the PPE. The volume on the CFIM was also a record one, which grew yoy by 3.2% to the level of 123 466 857 MWh. On the spot market the volume of trade dropped by 4.4% to the level of 22 639 240 MWh. The volume on the Day-Ahead Market of gas (DAMg) amounted to 16 949 762 MWh (down by 3.7%.), and on the Intra-Day Market of gas (IDMg) 5 689 478 MWh (down by 6.3%) (source: TGE).

In 2019 the prices of gas demonstrated a significant declining trend.
The weighted average price on the DAM&IDMg in 2019 amounted to 72.72 PLN/MWh, which is down by 33.30 PLN/MWh against 2018 (-31.4% yoy). The corresponding December price dropped in month by 5.10 PLN/MWh, to the level of 70.16 PLN/MWh (-6.8% yoy). On the CDM in turn in 2019 the weighted average price of one-year futures contract GAS_BASE_Y-20 amounted to 89.91 PLN/MWh, that is by 16.37 PLN/MWh less than the corresponding price of GAS_BASE_Y-19 in 2018 (-15.4% yoy). In December the corresponding price of GAS_BASE_Y-20 amounted to 74.00 PLN/MWh, which is by 6.90 PLN/MWh less than in November (-8.5% yoy), which is the lowest value in the whole of 2019 (source: TGE).

At the end of Q3 2019 a concession for trading gaseous fuels was owned by 192 entities, and 97 enterprises actively participated in the natural gas trade (source: URE).

Trade organisations and institutions:

  • Organization of the Polish Exploration and Production Industry
  • Polish LNG