September 2023 was a month full of events on the Polish gas market. We are approaching the key autumn-winter period of the year. This is statistically the most expensive season due to the increased demand for gas for heating purposes.
One of the main events on the gas market in September was the threat of a strike by employees of the LNG sector in Australia (concerning Chevron), which, if production was completely suspended, could affect approximately 7% of the global LNG gas supply (liquefied natural gas). ). Fortunately for customers, the LNG loading schedule was not disrupted. Ultimately, the strike ended after Chevron and Offshore Alliance accepted new proposals regarding employment conditions. These events, although they did not directly concern the Polish market, significantly contributed to price volatility on the Dutch TTF exchange, which is a reference point for European countries. Prices ranged from EUR 47.65/MWh to EUR 53.10/MWh, which means a volatility of 11%. In summary, the Chevron workers' strike had a potential impact on global LNG supply and gas prices, but ultimately did not significantly impact the market due to the quick resolution of the conflict.
On September 20, 2023, the "Prices of electricity and natural gas" workshops were held, organized by Employers of Pomerania based in Gdańsk, during which, together with the
At the meeting, we
Many entrepreneurs take advantage of the current, relatively good market situation and have already started contracting electricity for 2024. Unlike in previous years, some companies have even completed it and are already making purchases for 2025. Companies for which the cost of energy purchase has a significant share in the entire cost structure more and more often base their decisions on individualized
From mid-January 2023, the energy exchange prices for 2024 oscillate in the range of PLN 700-850/MWh. It can be said that this is quite a promotion, considering that in the previous six months these prices generally did not go below PLN 1000/MWh, and at the peak they even reached PLN 1800/MWh. Current prices for companies are approx. PLN 100-200/MWh higher than the exchange prices (this value includes the costs incurred by sellers related to profiling and balancing customers, the so-called "colors", excise duty, service costs, but also the accompanying risks of price changes and sellers margin of course).
The energy market poses more and more challenges to Polish companies. At Enfree, we help to face them - we develop energy purchase strategies for the largest recipients in the country and carry out purchasing processes for them.
If you know energy and would like to work with us, write to us. We are looking for support for our team.
Loudly in the network about "low", exchange prices of energy listed on the SPOT market in January 2023. (low from the perspective of the prices we faced in 2022). A relatively attractive price level favors entrepreneurs whose energy sales contracts enable the settlement of energy purchases taking into account the current exchange prices (the so-called Day-Ahead Market).
Settlement taking into account exchange prices, both futures market and DAM (SPOT) prices, is an increasingly popular form of settlement of energy sold to large electricity and gas consumers.
Why is it worth not delaying the signing of such an agreement for 2024? Because we gain more than we lose. The main advantage is the ability to react immediately to the market situation. When the time is right, the purchase can be made immediately. In order to take full advantage of this arrangement, it is important to have enough time to catch the price opportunities that occur throughout the year. Therefore, the beginning of the year is a good time to look around the market and choose electricity and gas suppliers for the next year.
The guaranteed maximum sale price will apply in the period from December 1, 2022 to the end of 2023. Some companies will also be able to benefit from compensation for energy purchases in the previous months of 2022. These are companies that signed a sales contract for 2022 after February 24, 2022 or those that signed a contract for 2022 earlier, but this contract allowed the purchase based on the so-called stock exchange model, under which at least one tranche of energy purchase for 2022 was made after February 24, 2022.
In the event that the entrepreneur is late with submitting the declaration by November 30, 2022, and provides the seller with the document at a later date, the purchase of energy at a preferential price will be made from the next month (e.g. entrepreneurs who submit a declaration in December may count on the application of the maximum price in settlements from January 2023).
The cPPA (Corporate Power Purchase Agreements) contracts entered the Polish power industry's salons just a few years ago. The first ones willing to take advantage of the contracts were market leaders who created the trend of co-responsibility for the environment, as well as entrepreneurs for whom it was important to guarantee a fixed purchase price for at least a few consecutive years. These contracts are usually concluded for a period of 5-10 years, which results from the requirements set by RES producers (by concluding such contracts, RES producers allow financing of the sources being built, mainly photovoltaic and wind farms).Read more
How is it with these energy prices? Buy energy for 2023 now or wait until autumn to buy energy with the hope of lowering prices? Make a purchase at a predetermined price or choose a pricing mechanism based on stock indices? Should you decide to buy energy based on long-term cPPA contracts or decide to invest in your own energy generation sources?
The answer to all questions is: it depends. On a macro scale, it depends on geopolitics. Prices of coal, gas, emission allowances. The situation on European markets and the increasing uncertainty of raw material supplies. EU or local political decisions accelerating or inhibiting the development of the energy sector. On a micro scale, it depends on the situation of a specific company. Its business profile, current and expected financial situation, market awareness as well as the risk appetite of its management.
The purchase of energy from renewable sources has gained in importance over the last year, because the so far leading ecological emphasis has been supported by a very strong partner - the financial aspect. Over the last year, the purchase of "green" energy (often based on long-term cPPA contracts) has become strongly competitive with the purchase of energy from the power exchange, the prices of which have experienced a threefold increase y / y (one of the main culprits of the current increases is the situation on the coal market). The energy prices offered to companies in the last days for 2023 exceeded the level of PLN 1,250-1400 / MWh (rates vary depending on the characteristics of the recipients; let us remind you that in 2021 entrepreneurs were buying energy on average at PLN 300-400 / MWh).Read more