PGE Group is present on different markets and in different market segments, offering diverse products and services.
According to the law, the key areas of our operations, i.e. production, distribution and sales, are separated from one another and are conducted by separate companies. In practice, this means that our production, distribution and sales volumes do not have to be equal. What we produce ourselves largely goes to (anonymous) wholesale markets and to trading companies (intermediaries). What we sell to our end clients does not have to come from our plants. Lastly, our distribution networks may be used, for a fee, by other retail suppliers (and vice versa).
Our high profile gives us contact with the end customer, especially with retail customers and clients from the small business segment. But it should be explained that, from the entire PGE Group's perspective, this is just a fragment of our business.
Energy balance. Retail sales vs entire PGE Group1
[1] Balance - energy consumption for own purposes (mainly in lignite mines), grid startups in distribution and adjustments, i.e settlements between Distribution Network Operators.
Retail sales
Retail sales for us mean direct contact with the customer (as compared with the wholesale channel, in which case the end customer is anonymous). However retail covers both households and large industrial customers. Therefore this is a heterogeneous group.
Households, i.e. tariff group G, constitute about 90% of all points of energy consumption. Whilst the volume we sell in this segment accounts for just 1/5 of total retail volume, which means that there is a large degree of concentration in the business client segment.
The 10 largest key clients generate 15% of total retail sales. This does not change the fact that contact with retail clients is key for our image and social reception.
Sale of electricity to end customers [GWh] |
2016 |
2015 |
Business clients (Tariff group A,B,C+R) |
33 802 |
29 963 |
Households (Tariff group G) |
9 104 |
9 039 |
Total |
42 907 |
39 002 |
|
Retail segment |
|
---|---|---|
Number of clients at energy consumption points | ||
year |
2016 |
2015 |
TARIFF-A |
171 |
123 |
TARIFF-B |
11 903 |
11 368 |
TARIFF-C+R |
457 310 |
456 522 |
TARIFF-G |
4 693 459 |
4 664 328 |
TOTAL TARIFF |
5 162 843 |
5 132 341 |
- Taryfa A - large enterprises (high voltage – HV), such as steelworks, mines, shipyards and large factories.
- Taryfa B - large and medium enterprises (medium voltage – MV), such as recreation facilities, shopping malls, hospitals and industrial customers.
- Taryfa C - small and medium enterprises and institutions (low voltage – LV), such as shops, service outlets, farms.
- Taryfa G - households and housing cooperatives.
- Taryfa R - tariff group regardless of the voltage level.
Distribution
The electricity distributor's role includes maintaining an operational distribution network and connecting new clients. The distribution fee, which is the distributor's remuneration, is collected by the seller of electricity.
Although retail sales are fully competitive, distribution is a so called natural monopoly because of the laws of physics and economies of scale. This means that the distribution of energy in Poland is split between regional Distribution System Operators. The prices of distribution services are regulated administratively by the Energy Regulatory Office.
PGE Group is responsible for the central and eastern regions of Poland - a total of 122 ths. km2, which is roughly 39% of the country's area. PGE Dystrybucja supplies electricity to more than 5.3 million clients.
In 2016, revenue from the sale of distribution services reached PLN 5.594 billion, down by 2% from the previous year.
PGE's distribution network.
Electricity distribution volume and number of clients in 2016, 2015 and 2014
Tariffs |
Volume [TWh]* |
Number of clients per energy consumption point |
||
---|---|---|---|---|
2016 |
2015 |
2016 |
2015 |
|
5.16 |
5.21 |
106 |
98 |
|
13.02 |
12.30 |
11 209 |
10 977 |
|
Tariff group C+R |
6.82 |
6.63 |
484 532 |
490 847 |
9.32 |
9.24 |
4 811 211 |
4 761 809 |
|
TOTAL |
34.32 |
33.38 |
5 307 058 |
5 263 731 |
*with adjustments
Heat
PGE Group supplies district heating in Bydgoszcz, Gorzów, Kielce, Lublin, Szczecin, Rzeszów, Zgierz and in areas surrounding these cities. The heat we produce mostly goes to municipal customers, e.g. city thermal energy providers, which deal with distribution and sales of heat to retail customers. The particular situation takes place in Gorzow, where PGE Group also distributes heat. Furthermore in Zgierz, whereby PGE GiEK is also a co-owner of Przedsiębiorstwo Energetyki Cieplnej, a district heating supplier.
In 2016, consolidated revenue from the sale of heat reached PLN 732 million (PLN 724 million a year earlier).
Number of PGE GiEK's clients (heat off-takers)
|
2016 |
2015 |
---|---|---|
Business* |
1 194 |
1 107 |
Private off-takers |
175 |
167 |
*Business - cooperatives, associations, schools, administration (all entities except for retail clients)