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17.12.2010 PGNiG SA to Lower Gas Prices with Effect from January 2011

Polskie Górnictwo Naftowe i Gazownictwo SA (PGNIG SA) reports that on December 16th 2010 the President of the Energy Regulatory Office approved the new Tariff for the supply of gas fuels, which introduces lower prices of gas fuels. The new prices of gas fuels will be effective from January 1st 2011 until March 31st 2011. Under the new Tariff, the prices of high-methane gas and nitrogen-rich gas will decrease on average by ca. 3.23%. This means that the monthly gas bills of households using gas for cooking will be lower by PLN 0.31 on average. The rates of network charges and subscription fees will not change. The prices of propane-butane-air gas and decompressed natural gas will also remain unchanged.

In connection with the negotiated discount for natural gas obtained from Gazprom Export, PGNiG SA applied for lowering of the Tariff for gas sale effective until March 31st 2011.

On October 29th 2010, the two companies entered into a contract under which 15% of the volume of natural gas supplies shall be subject to discount. In view of the quantity of gas already offtaken under the contract, PGNiG SA expects to offtake the volume of natural gas entitling it to the highest discount.

As a result, the average amount of total charges related to the supply of high-methane gas to customers will decrease by 2.3%.

As for nitrogen-rich gas, the new Tariff provides for an average fall of the total charges for its supply by 2.3% in the case of the Lw subgroup and by 2.05% in the case of the Ls subgroup.

CHANGES IN CHARGES FOR THE SUPPLY OF NATURAL GAS TO CUSTOMERS CONNECTED TO THE DISTRIBUTION NETWORK

The tables below present the decrease in monthly bills paid by households (VAT exclusive) reflecting the new natural gas prices and the unchanged rates of network charges and subscription fees.

HIGH-METHANE GAS (E GROUP, formerly designated as GZ-50)

Tariff group

Item

Unit

DSG

GSG

KSG

MSG

PSG

WSG

Average

 W-1

Decrease in monthly bill paid by customer

%

-1.3

-1.3

-1.4

-1.2

-1.3

-1.3

-1.3

PLN/month

-0.33

-0.36

-0.38

-0.24

-0.30

-0.29

-0.31

 W-2

Decrease in monthly bill paid by customer

%

-1.7

-1.6

-1.7

-1.8

-1.7

-1.7

-1.7

PLN/month

-1.67

-1.42

-1.68

-1.61

-1.51

-1.54

-1.57

 W-3

Decrease in monthly bill paid by customer

%

-1.9

-1.9

-2.0

-2.0

-1.9

-1.9

-2.0

PLN/month

-5.81

-6.50

-6.40

-6.67

-5.96

-5.77

-6.28

NITROGEN-RICH GAS (Lw SUBGROUP, formerly designated as GZ-41,5)

Tariff group

Item

Unit

DSG

WSG

Average

 S-1

Decrease in monthly bill paid by customer

%

-1.4

-1.4

-1.4

PLN/month

-0.31

-0.34

-0.32

 S-2

Decrease in monthly bill paid by customer

%

-1.9

-1.9

-1.9

PLN/month

-1.56

-1.60

-1.57

 S-3

Decrease in monthly bill paid by customer

%

-2.0

-2.1

-2.1

PLN/month

-5.37

-6.01

-5.59

NITROGEN-RICH GAS (Ls SUBGROUP, formerly designated as GZ-35)

Tariff group

Item

Unit

DSG

WSG

Average

Z-1

Decrease in monthly bill paid by customer

%

-1.5

-1.3

-1.3

PLN/month

-0.42

-0.29

-0.30

 Z-2

Decrease in monthly bill paid by customer

%

-1.7

-1.8

-1.8

PLN/month

-1.30

-1.36

-1.36

 Z-3

Decrease in monthly bill paid by customer

%

-2.0

-2.0

-2.0

PLN/month

-4.99

-5.98

-5.96

CHANGES OF PRICES OF NATURAL GAS DELIVERED TO CUSTOMERS CONNECTED TO THE TRANSMISSION NETWORK

The price of gas fuel for the largest customers purchasing high-methane gas from the transmission network will fall by 3.23%. This translates into an average drop in the prices of gas supply by PLN 0.0328 per 1 m3 (from PLN 1.0155 to PLN 0.9827 per 1m3). The average price of nitrogen-rich gas will decrease by 3.22% (for the Lw and Ls subgroups), which will be reflected in an average drop in the prices of gas supply by PLN 0.0258 per 1 m3 (from PLN 0.8003 to 0.7745 per 1 m3) in the case of the Lw subgroup and by PLN 0.0220 per 1 m3 (from PLN 0.6823 to PLN 0.6603 per 1 m3) in the case of the Ls subgroup.

The subscription fees and network charges paid by customers connected to the transmission network will remain unchanged.

HIGH-METHANE GAS AND NITROGEN-RICH GAS (E Group - formerly designated as GZ-50, and Lw and Ls Subgroups - formerly designated as GZ-41,5 and GZ-35) (VAT exclusive)

Customers connected to the OGP Gaz-System's transmission network

3/2010 Tariff

including the amendment effective from October 1st 2010

Amendment to 3/2010 Tariff

% decrease

E 1A - E 4B

1.0155

0.9827

-3.23

Lw 1 - Lw 4

0.8003

0.7745

-3.22

Ls 1 - Ls 4

0.6823

0.6603

-3.22

Joanna Zakrzewska

Spokesperson for PGNiG SA

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