Risk of changes in electricity prices
- The PGE Group has a natural long position due to its generation assets and a lack of possibility to place its production on the market at a pre-determined price.
- The level of margin generated as a result of changes in electricity prices and electricity generation costs;
- Price of electricity sale contracts to retail customers;
- Price of transactions to buy/sell energy on the wholesale market.
|Risk of changes in the prices of property rights arising from certificates of origin for electricity
- The PGE Group has a net short position resulting from the obligation to surrender property rights arising from certificates of origin for electricity related to the sale of electricity to end users.
- Price of transactions to buy/sell property rights on the wholesale market.
|Risk of changes in prices of CO2 emission allowances
- Risk related to changes in the prices of CO2 emission allowances in EUR and risk of changes in EUR/PLN exchange rate;
- The PGE Group has a short position given its electricity generation at units participating in the EU-ETS scheme.
- Use of generation sources not as planned due to their varying emission levels;
- Price of transactions to buy/sell CO2 emission allowances on the wholesale market.
|Risk of electricity production fuel price changes (including hard coal, natural gas, biomass, heating oil)
- Risk of commodity price changes, including commodities denominated in foreign currencies (or indexed to foreign currencies) and foreign currency risk;
- The PGE Group has a short position due to its need to purchase fuel on the market.
- Price of transactions to buy/sell fuel on the wholesale market.
|Long-term volume risk
- Risk related to changes in demand for electricity in the National Power System.
- Macroeconomic situation, especially in energy-intensive industries;
- Technological changes, particularly in energy efficiency and the development of distributed power generation;
- Climate changes;
- Regulations, including preferences for specific sectors of the power generation industry;
- Degree of integration with foreign energy systems.
|Short-term volume risk
- Risk related to changes in planned electricity sales volumes as a result of changes in end users’ demand for electricity.
- Trends among retail clients concerning changes in energy suppliers;
- Regulations, including those pertaining to the opportunity to change energy suppliers;
- Short-, mid-term weather changes;
- Risk related to the model for planning demand for energy and quality of source data used in planning.