In 2016, PGNiG will face a number of challenges related to the ongoing deregulation of the gas market in Poland.
In gas sales to end users, the Company focuses on development of its products and discount schemes launched in 2015 with a view to maintaining its strong position on the liberalised gas market.
Given the changing regulatory environment, including elimination of tariffs and plans for extended support under the energy efficiency scheme (white certificates), PGNiG is taking steps to adapt itself to new conditions on the market.
As regards sales through TGE, PGNiG focuses on offering competitive prices compared with those quoted on deregulated Western markets. Such policy should guarantee it an ability to meet the statutory exchange sale requirement.
In order to increase the satisfaction of our customers and minimise customer attrition, the Company undertakes numerous initiatives to both widen the product range and improve customer service quality. To this end, appropriate segmentation of the customer base has been introduced, dedicated assistants have been assigned to individual business customers, and interaction was facilitated through the website and e-BOK service.
Steps have also been taken to improve the efficiency and speed of invoice transfer from PGNiG Obrót Detaliczny to customers, through promotion of the ‘eco-invoice’ service and improved functionalities of the IT systems used to support customer service.
With respect to new gas products, the company is working on its dual fuel offering, gas products tailored to specific customer requirements and, in cooperation with other PGNiG Group companies, gas-fired cogeneration.
In addition, it has intensified work to develop a product offering for customers in areas where the gas distribution network is being or will soon be rolled out, as well as for customers who intend to switch from coal-fired energy sources to gas, for instance through improved reach of customers.
PGNiG also intends to further develop the CNG segment by cooperation with external partners interested in building new compressed gas filling stations and initiatives to promote this environmentally-friendly fuel, especially among municipal transport providers.
The company will further develop its business activities in retail sales and wholesale of energy commodities. In retail sales, it intends to substantially increase the portfolio of end users and start sales activities in Poland to win back customers for the PGNiG Group. To support these plans, PST successfully finalised the process of a spin-off (in October 2015, retroactively as of January 1st 2015) of its sales activities into a separate subsidiary of PST. For this purpose PST Europe Sales GmbH was founded. Furthermore, PST stepped through its partner Premio Energie GmbH into ‘branded sales’ of PST products on exclusive terms.
In order to reduce the ‘cost to serve’ (CTS) per customer, PST has chosen a new CRM system to secure planned growth by streamlining its sales processes. The implementation of the new system is to be finalised in Q2 2016. As a result, CTS per customer is expected to be halved.
In wholesale trading, in addition to activities on the OTC and exchange markets, the company wants to expand its business with utilities and resellers by offering standard and structured trading products and related services (e.g. balancing group services).
In 2016, PST plans to expand its trading market presence into UK by trading natural gas on NBP after finalising all required documentation and passing internal approvals.
As regards construction of the Kosakowo UGS, work will be continued leading to the completion of five caverns of Cluster A (K-5 cavern) and final settlement of the contract. Concurrently, work on the construction of Cluster B will be continued (increasing the facility’s working capacity to 250 million cubic metres). Execution of the contract includes preparation of the design documentation, construction of gas pipelines and leaching pipelines together with auxiliary infrastructure and initial gas infusion into the caverns. The contract provides for final completion of work in 2021.
In 2016 and further years, the company plans to increase the volume of available storage capacities by:
