Polish Gas Storage Rule a Backward Step: Trader Lobby

The European Federation of Energy Traders (Efet) is seeking to halt Poland’s plans to introduce mandatory strategic storage. The lobby group argues that this measure will reverse liberalisation to the benefit of the incumbent; and fails to take account of Poland’s enhanced security of supply.

It wrote to the Polish energy ministry July 4, urging it to drop plans to create a storage obligation for shippers. It said in a statement July 26 that it was “highly concerned with proposed changes of the Polish natural gas market.”

Efet said it welcomed the Polish parliament’s initiative to review the energy law addressing aspects of natural gas energy security, but believes that the proposed changes will have negative consequences for Polish consumers, providing negligible improvements to security at a higher than necessary cost. And it would further reinforce the dominant incumbent’s position in the market.

It told the government that the proposal went against its own policy ambitions and contradicted the spirit of solidarity and regional cooperation fostered by the ongoing revision of the EU Regulation on Security of Supply. In particular, the increased security brought by the LNG import terminal at Swinoujscie is not recognised, which will reduce its attractiveness.

The amendment should be rejected and a comprehensive review of the security or supply framework, based on market principles, should be undertaken instead. This review could also envisage the possibility for market operators to evaluate flexibility tools other than storage to fulfill their security of supply obligations, Efet said.

Poland should concentrate on diversifying its gas supply and enhance its energy security by improving liquidity and competition at the wholesale level, to the ultimate benefit of the Polish consumer. A well-functioning gas market contributes to the security-of-supply of a country in a way that can help to underpin the growth of its economy, Efet said.

William Powell