18.05.2010 Approval of PGNiG’s Tariff Application by the Energy Regulatory Office
On May 17, 2010, the President of the Energy Regulatory Office approved the new Tariff for supply of gas fuels. The Tariff will be effective from June 1, 2010 to November 30, 2010. Under the new Tariff, the price of high-methane gas will increase on average by approximately 4.8%. In other words, gas monthly bills paid by those households which use the fuel for cooking purposes will rise on average by PLN 0.71.
The average 4.8% increase in high-methane gas price results form the higher costs of imported gas as well as the costs related to the statutory requirement to create and maintain natural gas stocks (the volume of mandatory reserves was increased from 11 to 15 days of the average daily supply of natural gas by PGNiG SA, which represents a rise from 3% to 4.1% in total imported gas volumes).
Taking into consideration the change in network charges under the new gas transmission and distribution tariffs approved by the President of the Energy Regulatory Office, the average total amount of charges related to the supply of high-methane gas to consumers will increase by 3.3%. Please note that despite a significant increase in crude oil prices and the high USD/PLN exchange rate, the average price of gas proposed by PGNiG SA in the new Tariff is down 4.2% on the price effective in the period from November 1, 2008 to May 31, 2009.
In particular, the shorter effective period of the Tariff allows the Company to react more quickly to changes in gas prices on the global markets. This new approach meets the expectations of our customers concerning the time necessary to adjust gas prices offered by PGNiG SA in Poland to gas prices prevailing on the European markets. In addition, the volatility of exchange rates (in particular the USD/PLN exchange rate) and of crude oil and petroleum product prices hinders accurate annual forecasting of market gas prices.
Under the Tariff, the average increase in nitrogen-rich gas prices will range from 7.2% with respect to Lw subgroup (formerly GZ-41.5) to 8.5% with respect to Ls subgroup (formerly GZ-35). This higher percentage change of prices stems from the gradual equalisation of nitrogen-rich and high-methane gas prices expressed in units of energy (PLN/GJ). The average total amount of charges for the supply of nitrogen-rich gas to customers will rise by 5.9% and 3.6% for Lw gas and Ls gas, respectively.
The network charges include, among other things, costs of outsourcing by PGNiG SA of gas transmission services from OGP Gaz-System S.A. (transmission system operator) and gas distribution services from the respective distribution system operators, costs of gas storage at our own facilities as well as costs of system balancing and system limitation management to allow customers to draw gas at contractually agreed delivery points. Network charges are determined for delivery points in the network of the transmission system operator - OGP Gaz-System S.A, or distribution system operators, i.e. Dolnośląska Spółka Gazownictwa Sp. z o.o., Górnośląska Spółka Gazownictwa Sp. z o.o., Karpacka Spółka Gazownictwa Sp. z o.o., Mazowiecka Spółka Gazownictwa Sp. z o.o., Pomorska Spółka Gazownictwa Sp. z o.o., or Wielkopolska Spółka Gazownictwa Sp. z o.o.
CHANGES OF PRICES OF NATURAL GAS DELIVERED TO CUSTOMERS CONNECTED TO THE DISTRIBUTION NETWORK
The tables below present the price rises as reflected in monthly gas bills (price of gas + subscription fee + network charges) paid by households (excluding VAT).
HIGH-METHANE GAS (GROUP E, formerly designated as GZ-50)
| Item | Unit | DSG | GSG | KSG | MSG | PSG | WSG | |
| W1 | Rise in monthly bill paid by customer | % | 2,3 | 3,6 | 3,7 | 2,1 | 3,0 | 3,9 |
| PLN/month | 0,55 | 0,91 | 0,94 | 0,39 | 0,66 | 0,84 | ||
| W2 | Rise in monthly bill paid by customer | % | 2,6 | 3,9 | 4,0 | 2,6 | 2,7 | 3,5 |
| PLN/month | 2,37 | 3,12 | 3,55 | 2,23 | 2,33 | 2,94 | ||
| W3 | Rise in monthly bill paid by customer | % | 3,6 | 4,1 | 4,2 | 2,9 | 3,5 | 3,7 |
| PLN/month | 10,44 | 12,72 | 12,49 | 8,85 | 10,19 | 10,51 |
NITROGEN-RICH GAS (Lw SUBGROUP, formerly designated as GZ-41.5)
| Item | Unit | DSG | WSG | |
| S1 | Rise in monthly bill paid by customer | % | 5,3 | 4,9 |
| PLN/month | 1,08 | 1,08 | ||
| S2 | Rise in monthly bill paid by customer | % | 7,9 | 4,6 |
| PLN/month | 5,97 | 3,62 | ||
| S3 | Rise in monthly bill paid by customer | % | 7,1 | 3,4 |
| PLN/month | 16,85 | 9,16 |
NITROGEN-RICH GAS (Ls SUBGROUP, formerly designated as GZ-35)
| Item | Unit | DSG | WSG | |
| Z1 | Rise in monthly bill paid by customer | % | 5,9 | 5,0 |
| PLN/month | 1,47 | 1,03 | ||
| Z2 | Rise in monthly bill paid by customer | % | 8,4 | 4,8 |
| PLN/month | 5,66 | 3,41 | ||
| Z3 | Rise in monthly bill paid by customer | % | 7,6 | 4,0 |
| PLN/month | 17,35 | 10,81 |
The price of natural gas delivered to large customers connected to the transmission network has risen by 2.9% on average, which represents a PLN 0.03 per m3 increase in the cost of gas deliveries (up from PLN 1.01 per m3 to PLN 1.04 per m3). As in the case of households connected to the distribution network, the price of gas delivered to large customers, determined on the basis of the new Tariff, is 4.8% lower compared with the price effective in the period from November 1, 2008 to May 31, 2009.
HIGH-METHANE GAS (GROUP E, formerly designated as GZ-50)
| Customers connected to the transmission network operated by OGP Gaz-System | |||
| 2009 | 2010 | % rise | |
| E 1 - E 4 | 1,01 | 1,04 | 2,9% |
| Lw 1 - Lw 4 | 0,75 | 0,80 | 6,4% |
| Ls 1 - Ls 4 | 0,62 | 0,67 | 7,7% |
The President of the Energy Regulatory Office also approved a gas storage tariff. The new storage tariff will be effective from June 1, 2010 to May 31, 2011.
Joanna Zakrzewska
Spokesperson for PGNiG SA
