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Electricity will be cheaper. The House of Representatives raised the stock exchange’s commitment. forever

Electricity will be cheaper.  The House of Representatives raised the stock exchange's commitment.  forever

The parliamentary majority did not agree with the proposal of the senators, who supported the previous draft of the House of Representatives, but wanted to completely cancel the stock exchange’s obligation from the beginning of 2024. As a result, energy producers Electricity By that date they had to sell 50 percent. Electricity generation on stock exchange Shipping. Meanwhile, in the law adopted in October by the deputies, the obligation to exchange power from the law’s entry into force shall be enforced forever – unless someone alters this status by another law.

Thanks to the amendment of the Energy Act, there will be no obligation to sell electricity on the indicated commodity exchange. According to the Polish government, this will allow a reduction the prices energy. The new regulations also impose penalties for market manipulation. This would be a fine of up to 5,000 daily rates, or one to 10 years in prison, or both.

The bill will now be signed in the president’s office.

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What could the Polish energy sector look like in the future?

Electricity prices and exchange commitment

What is the obligation to exchange, after the liquidation that energy prices should drop significantly, according to MPs? This was clarified in an interview with an expert at the end of September, Mikołaj Fidziński from Next.gazeta.pl. The exchange obligation means that energy producers have to sell it in the energy exchange at the exchange rate (which has been very high in recent months). More in the article below:

Electricity will be cheaper. The House of Representatives canceled the stock exchange’s obligation. forever

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His absence nullifies this obligation. Energy producers will be able to sell electricity directly to energy trading companies. Most often it concerns companies of one group.

Energy producers are separate from selling companies. For example, PGE Górnictwo i Energetyka Konwencjonalna operates on the one hand, and PGE Obrót on the other. They work within the same group, but are independent of each other – explains David Kazubek, Director of Polaris FIZ in an interview with Gazeta.pl. He adds:

There has to be a deal between the power plant and the energy selling company. The question is how to determine the price between two de facto firms of one group. The exchange commitment gives some transparency – it sets the price at which everyone buys and sells. There is no objection that one is selling cheaper energy and the other is being sold at a higher price.

Effects of the ecological disaster on the Oder RiverPoland is last in the new ranking of “green” EU countries

Electricity prices – why so expensive?

However, recently the problem has been that energy exchange prices have been very high – actually not because of the greed of power plants, but because these are simply the rules of energy exchange.

Electricity prices are set in such a way that demand equals supply. To do this, it is checked who is able to provide energy at what price. At first, there are the cheapest renewable energy sources, and then, for example, lignite, hard coal or nuclear energy in some countries, the system is usually “shut down” by a gas-fired power plant. Energy prices are so high in Europe precisely because gas energy shuts down the system that it sets prices for everyone – including those who produce energy from windmills, photovoltaics, coal, etc., even though their production costs are lower and in no way related to Gas price conditions

– Explains your zombie. More in Mikołaj Fidziński’s article:

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Lignite Mine and Bełchatów . Power PlantElectricity prices can drop by up to two-thirds. The House of Representatives passed the law relating to the commitment of the stock exchange

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