Supply

Wholesale trading include mainly electricity trading on behalf of and for Conventional Generation segment, District Heating segment and Renewables segment.

* Data for PGE Obrót S.A.

As part of retail-market activities, the key source of segment’s revenue is sale of electricity to final customers. This is sale to business and institutional clients, which constitutes more than 75% of the sales volume, and to retail clients.

The segment’s revenue also includes the sale of fuels, mainly: pulverised coal and fat coal, which is sold by PGE Paliwa sp. z o.o., and sale of gas. Electricity sales are matched by the costs to purchase electricity on the wholesale market and costs to redeem certificates as part of the support system for renewable sources and energy efficiency.

The Supply segment also incurs costs related to the Group’s corporate centre.

Volume of electricity sales to final off-takers and number of customers in 2020 and 2019

The segment’s results depend mainly on margins achieved in electricity trading. The cost of property right redemptions has a significant impact on the segment’s results (i.e. so called colour-coded certificates that the seller of energy to end customers is required to redeem). The market prices of colour-coded certificates are characterised by volatility related to changes in the regulatory environment. The Supply segment also generates revenue from generation capacity trade management contracts, i.e. from wholesale electricity trading as agent for PGE Group’s production companies. Revenues from this service depends on the volumes sold by the Group’s companies.

The EBITDA reported in 2020 was positively influenced by legislative changes – in 2019, the Act on Electricity Prices was in force (the Act of 28 December 2018 amending the Excise Duty Act and certain other acts).