49
2010
Annual Report
Tariff Policy
The Gas Distribution Companies forming part of
the PGNiG Group have the status of Distribution
System Operators. Until mid-2007, the distribution
companies of the PGNiG Group were involved in
both trade in and distribution of gas. In accordance
with the requirements of the Polish Energy Law,
which implemented the requirements of EU Direc‑
tive No. 2003/55/EC, in 2007 PGNiG legally sepa‑
rated the distribution and trade businesses. As a
consequence, in mid-2007 the Distribution System
Operators were spun off (currently: Gas Distribu‑
tion Companies). Since Q4 2007, the entire trade
business, including retail sales and wholesale, was
integrated into PGNiG SA.
Distribution activities are conducted under licenc‑
es. This means that the Gas Distribution Companies
must seek the approval of the Energy Regulatory
Offce with regard to rates of charges for gas fuel
distribution. The tariffs defne:
••
rates of charges for gas fuel distribution services
and subscription fees;
••
the formula for determining the fees for con‑
necting customers to the high-, medium- and
low-pressure networks.
Moreover, the tariff defnes the manner of deter‑
mining the charges for exceeding the contractual
capacity, penalties for illegal abstraction of gas
fuels and failure to comply with the imposed limi‑
tations, as well as of price reductions for failure to
maintain quality standards in customer service.
1078
2010
2009
DSG
GSG
KSG
MSG
PSG
WSG
985
1924
1887
1466
1352
2132
1921
992
1688
896
1642
Volumes of gas distributed by Gas Distribution Companies in 2009 – 2010 (MMm
3
)
Gas Fuel Distribution
In 2010, the Gas Distribution Companies trans‑
ported 9.28 billion cubic metres of natural gas. This
represents a 0.60 billion cubic metres (7%) rise in
relation to 2009, when they transported 8.68 bil‑
lion cubic metres of gas. As at the end of 2010, the
length of the distribution network (excluding con‑
nections) was 117 thousand kilometres. In aggre‑
gate, the six Gas Distribution Companies provide
services to approximately 6.6 million customers.
In 2010, almost 60 thousand new customers were
connected to the network.
DSG GSG KSG MSG PSG WSG Total
No. of customers
(millions)
0.75 1.3 1.4 1.5 0.75 0.9
6.6
Volume of distributed gas
(millions of cubic metres)
1078 1466 1924 2132 992 1688
9280
Network length excluding connections
(‘000 km)
7.74 20.88 44.76 18.90 9.59 15.49
117.36
Investment Projects
In 2010, capital expenditure incurred in the Distri‑
bution Segment amounted to more than PLN 1 bn.
As part of their investment activities, the Gas
Distribution Companies connected new custom‑
ers to their grids and upgraded and expanded the
gas network. The segment’s expenditure on the
network accounted for approximately 80% of the
aggregate capital expenditure.
Trade and Storage
Distribution
Power Sector
Corporate
Governance
Risks
Employees
Environmental
Protection
The PGNiG Group Glossary
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