Operations in 2021

The mission of PSG as the distribution system operator is to provide gas fuel distribution services to all gas fuel consumers and traders (while ensuring that all of them receive equal treatment) in accordance with the provisions of the Energy Law and a programme for ensuring non-discriminatory treatment of distribution system users (Compliance Programme), applicable to PSG. PSG provides the distribution services under relevant distribution contracts. At the end of 2021, PSG was distributing gas fuel to 7.4m customers. In 2021, PSG executed six distribution contracts and two Interoperator Distribution Agreements. In the same period, approximately 19 thousand customers switched gas suppliers.

Source: In-house analysis based on PSG data.

PSG’s activities resulted in the execution of over 119,300 connection contracts in 2021, providing for 135,900 new connections to the gas grid. In 2021, PSG planned to build over 67,900 new service lines. By the end of the year, nearly 260,000 decisions defining the terms of connection were issued (an increase of 17% year on year) and 119,200 service lines with a total length of 1,133.7 km were built.

In 2021, PSG commissioned 31 LNG regasification stations, and additionally purchased two such facilities in Ełk and Olecko from PGNiG S.A., which became PSG’s property on December 1st 2021.

In 2021, PSG obtained 33 liquefaction and regasification licences. At the same time, following an amendment to the Energy Law of May 20th 2021, six LNG regasification stations with a capacity of up to 200 cm/h were made available, whose operation, in accordance with the amendment to the Energy Law, does not require a licence. Thus, the number of the LNG regasification plants licensed and made available increased to 91 at the year’s end.

The volume of gas distributed using LNG regasification plants (including stations supporting the distribution system) was 226.3 GWh in 2021 (an increase of approximately 43.5% year on year) and the number of single distribution orders for the year was 22,490 (an increase of approximately 3% year on year).

Source: In-house analysis based on PSG data.

* Customer − anyone receiving or drawing gas fuel under contract with a gas supplier.

A significant event that had an impact on the fulfilment of its operator obligations was the execution by PSG, with suppliers of last resort and stand-by suppliers, of comprehensive contracts, including provisions of the stand-by supply contract, in the name and on behalf of end customers for 3,931 exit points, following discontinuation of gas fuel supply by gas fuel suppliers to customers connected to the distribution network.

PSG’s business is regulated, with licensing of gas fuel distribution and LNG regasification services, and the obligation to have distribution tariffs approved by the President of the Energy Regulatory Office (URE). In 2021, the following tariffs were in force:

• Tariff No. 8, effective from April 3rd 2020 to January 31st 2021; the tariff increased the average distribution fee by 3.5% relative to the previous tariff;
• Tariff No. 9, effective from February 1st to December 31st 2021; the tariff increased the average distribution fee by 3.6% relative to the previous tariff.

One of the key elements of the legal and regulatory regime in which DSOs (Distribution System Operators) operate is the Compliance Programme. The Compliance Programme is a document setting out the measures to be taken by a DSO in order to ensure non-discriminatory treatment of users and potential users of the distribution system. The obligation for a DSO to have this document arises directly under Art. 9d.4 of the Energy Law. It should be noted that in 2021 there was a material change to the Compliance Programme in force for PSG, approved by the President of the Energy Regulatory Office (URE) as a result of the new ‘Guidelines for the Content of Compliance Programmes’ published by the President of the Energy Regulatory Office (URE) in February 2019. This updated Compliance Programme sets stricter unbundling rules for individual areas of PSG’s operations, including the area of ICT infrastructure management, customer service, communication, sponsorship, research and development, outsourcing and centralisation of services and procurement.