Friday, 7 August 2015

Poles are changing gas supplier few times more frequently than four years ago - reports URE

At the moment, about 95% market share of gas sales belongs to PGNiG (Polish Gas and Oil Group). However, every customer connected to the distribution network of Polish Gas Company, has the right to switch supplier of gas, to any reseller of a choice, as long as the reseller has signed General Distribution Agreement with the network operator on the territory of client’s residence.

According to the statistic of URE ( Energy Regulatory Office ), in the first half of 2015 nearly 6.7 thousand customers have changed a reseller of gas. This is an important measure of the degree of competition in the gas market – market that is drastically changing its shape in recent years.

Analysis of the data, collected by TSO (OGP GAZ-SYSTEM SA) and the Polish Gas Company in the form of quarterly survey, indicates pretty dynamic growth in the segment of switching customers. Currently, customers who change gas reseller are mainly households, taking an advantage of diversified price range. The situation is definitely influenced intensified advertising campaigns of some retailers and market entry of new retailers.

To compare statistical data, we took a look at the reports of URE in the course of last four years. In 2011, there were only a few cases of switching, in 2012 - their number increased to 210, in 2013 to 429 and in 2014 to 7 007 (which was a “revolutionary” year for gas resellers, who noticed the need of advertising their products). Since the beginning of monitoring until the end of the second quarter of 2015, URE reported 13 666 changes of gas supplier on the national scene.

An important factor supporting growth in the number of changes in suppliers on the gas market is comparably higher number of signed contracts for the provision of gas fuel distribution services (Framework Agreements). This agreement sets out conditions for the functioning of the seller in the operator and its cooperation with the operator.

Based on: URE

Furthermore, the simplification of procedures for changing the gas supplier certainly had an impact on many household’s decisions. If a customer decides to change gas supplier, the easiest way to handle it is to sign the authorization for a new salesperson (new gas supplier) to act on our behalf. New gas supplier will inform the local distributor about the change of a vendor, as well as will terminate customer’s contract with PGNiG. New seller pays an appropriate deposit for the distributor to guarantee gas supply. The new contract is in place from the following calendar month.