Wednesday 25 February 2015

Polish Power Exchange celebrates 15 years of its establishment

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Polish Power Exchange (TGE), to celebrate fifteen years of its activities, awarded statuettes of “Jubilee Megawatts”. The Board of TGE honored people who played a significant role in shaping Polish energy sector and directly contributed to the development of Polish Power Exchange, for their contribution to the liberalization of the Polish energy sector.


Monday 16 February 2015

Poland might be given 1 billion euro fine, due to the high levels of air pollution

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Poland is facing a threat of 1 billion euro penalty from the EU for its levels of air pollution. Poland, for years, has been having the most polluted air in the EU. In many cities, the concentration of toxic and carcinogenic substances - of PM10 and benzo-pyrene exceeds legal limits a few times. 


Saturday 14 February 2015

Renegotiation of Yamal gas supply contract

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PGNiG ( Polska Grupa Naftowa I Energetyczna; English: Polish Oil and Gas Group) has been pursuing dialogue with Gazprom on the Yamal gas contract renegotiation. According to experts, the chances of success of the negotiations are slim. Experts draw attention to the situation on the international oil and gas market, current political situation, as well as the conditions that Russia can currently export the resources.


Tuesday 10 February 2015

Orange Polska, telecommunication company, becomes new electricity provider

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Orange Polska decided to become new electricity provider, after getting positive results of the pilot test of the service. Orange Polska has been, so far, providing only telecommunication services such as Internet, phones and television.

Offer prepared by Orange Polska will be dedicated to the individual households, as well as small enterprises.

Purchase of electricity by Orange Poland, for the purpose of resale to end users and compulsory purchase of property rights from certificates of origin of electricity, will take place through a wholesale partner, the company called “Polenergia”. Orange Polska’s margin will be calculated as a difference between the cost of electricity purchase and the resale price.

In order to have distribution channels, Orange Polska has entered into general distribution agreements with five operators of electricity distribution system, ie. RWE Stoen Operator, Energa-Operator, Operator Enea, Tauron and PGE Distribution Distribution.

According to the information available at the website, customers who decide to change electricity provider can save up on their electricity bill quite significantly.

If one decided to change the electricity provider, Orange Polska offers “Welcome Package” which is one-time discount for the bill ( which varies form 50 zloty to 150 zloty, depending on the total consumption of electricity during previous year; the bigger the consumption – the bigger the discount) and then, given accordingly, monthly discount. For the family living in the house, the discount can be equal to 150 zl (Welcome Package) + 15 zl/month, saving the family 330 zl a year (approx.. 80 euro) just thanks to the discount. The prices of reselling should also be pretty competitive, in comparison to current prices offered by main Polish electricity providers.

What is distinguishing Orange Polska as electricity provider from other providers, already operating on the market, is revolutionary system of billing. Currently, there are officers who are noting down the state of odometer reading, based on what bills are being calculated ( alternatively, the customer is obliged to provide the company with the numbers). Orange Polska proposes absolutely new solution. The customer decides when there is a good time to pursue the payment; one needs to call the toll-free number or log on to the website and enter the current odometer reading. Orange, on the basis of the reading, will issue an invoice for electricity. This is what is said on the promotional sub-site of the website.

We have taken a look at the conditions of the service and it does not specify how the company will be able to distinguish customers who are unreliable from those, who are choosing comfortable method of payment in the time most convenient for them. From the agreement, it seems that the rules do not differ from what is already on the market. We will talk to one of the representatives of Orange Polska and update this information as soon as possible.

What Orange Polska also offers is prepayment metering and billing system for providing/receiving electricity, not commonly used on the Polish market. Having an example of the UK, where most of the rental houses have such system in place, it can be a good solutions for the property owners wishing to rent their place, but not willing to change the names on the already registered meter.





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Picture:

https://lintvksnt.files.wordpress.com/2013/07/electric-meter1.jpg

Tuesday 3 February 2015

Companies are resigning from shale gas exploration in Poland

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More and more companies are leaving Poland and their work on the exploration of shale gas.  After ENI, ExxonMobil, Total, Canadian Oil and Marathon. Chevron announced at the end of January that they are not going to continue with execution of their exploratory concession either.

Unfortunately, more companies are deciding to stop shale gas exploration in Poland. Companies, which are resigning from their plans for drilling and any subsequent exploitation of shale gas, primarily withdraw foreign companies that already have some experience in this field. Firms that already resigned from their Polish concessions for exploratory drilling in recent months are ENI, ExxonMobil, Total, Canadian Oil and Marathon.

Chevron announced on the last day of January (2015) that they will not continue the project in Poland, as the country has ceased to be competitive compared to other opportunities in the world. The company will continue its activities in Romania.

Internet portal “Forsal” points out that past September, there were given only 68 licenses for shale gas exploration. It is 37 less in comparison to September 2013. It seems that, over the course of 12 months, there have been a drop in issuing concessions by more than a third. The decrease of interest in exploration had been visible already for some time, but it was not until the drop clearly intensified. In the whole year of 2013, total number of active licenses decreased by 19, and in the period from January to August 2014 – by 26.

Biztok.pl had an opportunity to talk with Andrzej Szczesniak, fuel market specialist, who is convinced that lack of interest in further shale gas exploration in Poland is due to its small quantities at the reservoir and high costs of production. Furthermore, recent commodities prices are not very favourable to the Polish shale gas. Low price of Brent oil on world markets affects the decrease in gas prices. This in turn causes the Polish shale gas is becoming less competitive and slows down the interest in further exploration.

In case of Chevron, as Szczesniak points out, financial situation of the company had also significantly influenced decision about leaving Poland. Chevron profits in the fourth quarter of last year fell by nearly 30 percent compared to the same period of 2013. Chevron announced, inter alia, a significant delay in construction of LNG terminal in Canada, translating into additional costs related to the delay.


Last but not least, element that might significantly influence the “shale gas environment” is current shape of Polish mining law (for mining, we mean mining of coal as well as exploration of fuels such as gas and oil). As many sources point out, Europe, in comparison to the United States (where shale gas brought revolution in the energy sector) is much more cautious in the area and attempts to start the extraction, due to the protests by environmental and political groups. This statement illustrates very clearly situation in Poland. To be precise, currently the drilling contractor is responsible for mining damage that arise during the like poisoning of the groundwater, damage from earthquakes, road infrastructure, technical development of the area and buildings. Not many companies, without assistance of the state, are capable and willing to bear such costs that, sometimes, can be higher than financial bill. Dealing with the protests of such nature can be very difficult and can influence the image of a company for many years.







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Picture:

Shale gas exploration site, by AECOM, in Poland:

http://www.aecom.com/deployedfiles/Internet/Geographies/Europe/Projects/shale-gas-exploration_poland_mainimg.jpg