PGNiG Seeks to Deregulate Gas Prices in Poland

Poland's largest oil and gas firm PGNiG has said that it has prepared a draft Gas Deregulation Programme to be released for public consultation. The company will take feedback on the draft proposal over the next fortnight.

The company says the deregulated prices will liberalise the market and PGNiG will respond with competitive pricing to its customers in a bid to retain them. Following the liberalisation, PGNiG expects gas prices in the country to find a level on a par with that of Germany or the Czech Republic.

"According to the company's forecasts, the prices of natural gas after the market is liberalised will tend to level with those in the Czech Republic and Germany," a statement from the company said. "The German market is expected to be a benchmark for the prices in Poland. PGNiG SA also intends to trade in natural gas on the European market and thus compensate for losing some of its domestic market share."

The draft proposal is motivated by recommendations from the President of the Polish Energy Regulatory Office (URE) announced on the 15th of November last year and a gas price deregulation roadmap released by the office on the 22nd of December 2011.

Deregulation of the entire Polish gas market is expected to take place by 2013, though no definitive date has been given as of yet. The deregulation is a bid to increase competition in the market.