100 percent of the energy in the stock market will slow, but not stop the price increase

0
30

The Ministry of Energy will propose a draft legislative amendment introducing 100 percent of the exchange obligation for electricity, excluding cogeneration and energy from renewable sources. – This decision may slow down the increase in energy prices, but it will not stop it – said Joanna Maćkowiak-Pandera, president of the Energy Forum, talking to BiznesAlert.pl.

As Maćkowiak-Pandera emphasized, the increase in energy prices has been forecast for a long time. There are several reasons for this phenomenon. The law on the capacity market was adopted, the price of CO2 emission rights increased, and so did the purchase of coal. All this caused an increase in electricity prices. New investments are planned, and these must be paid – said the head of the Energy Forum. However, the sudden mode of introducing this change is worth noting. Until recently the exchange obligation was at the level of several percent, the introduction of 100 percent in a short time is a big change. Maybe it’s worth spreading this process into stages. The energy volume on the stock market is one aspect of a competitive market – the number of players is just as important. The energy market has been consolidated in recent years, what reduced competition.

When asked about how the companies will react to this decision, she replied that „from the point of view of the owner, entities will have no choice but to adapt”. – The situation with the growing energy price is so disturbing that the resort will certainly convince the company that this solution is needed – she said.

Spokesman of the Polish Energy Group Maciej Szczepaniuk wrote after publishing a message by the ministry on one of the social networks, that sharing the concern for the development of the energy market, PGE is aware of changes in the energy trading obligation. – PGE will carry out trade through organized markets in its entirety – said Maciej Szczepaniuk. In turn, the CEO of Tauron Filip Grzegorczyk positively assesses the changes proposed by the Ministry of Energy. In his opinion, a 100% market share obligation will contribute to to greater transparency of the market and improve liquidity on the Polish Power Exchange (TGE).

Joanna Maćkowiak-Pandera added that the mechanism proposed by the Ministry of Energy is able to cushion the price increase, but is unable to prevent it. – The Stock Exchange is a good place to improve the transparency of market functioning and increase competition, which will have an impact on limiting price growth. In my opinion, however, there is no turning back from the increase in energy prices. The question is whether the growth is justified and how the energy companies will use increased revenues. Investments in energy are needed. However, it can not be unjustified public aid for maintaining the current energy sector, or, however, an investment in new, low-emission energy sources that will benefit the Polish economy for many years. Rising energy prices this summer are an opportunity to reflect in what direction power industry should develop in Poland – she concluded.