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Supply segment activities include Group’s wholesale and retail trading of electricity.
Wholesale trading include mainly electricity trading on behalf of and for Conventional Generation segment, District Heating segment and Renewables segment.
* Data for PGE Obrót S.A.
This is sale to business and institutional clients, which constitutes more than 3/4 of the sales volume, and to retail clients. The segment’s revenue also includes the sale of fuels, mainly: pulverised coal and fat coal, which is sold by PGE Paliwa sp. z o.o., and sale of gas.
Electricity sales are matched by the costs to purchase electricity on the wholesale market and costs to redeem certificates as part of the support system for renewable sources and energy efficiency.
The Supply segment also covers costs related to the Group’s corporate centre.
As part of retail-market activities, the key source of segment’s revenue is sale of electricity to final customers.
| Tariff | Volume (TWh)* | Number of customers according to power take-off points* | ||
|---|---|---|---|---|
| 2019 | 2018 | 2019 | 2018 | |
| A tariff group | 9.87 | 10.21 | 169 | 153 |
| B tariff group | 15.67 | 13.65 | 12,708 | 11,718 |
| C+R tariff groups | 7.55 | 6.76 | 450,126 | 447,081 |
| G tariff group | 9.81 | 9.77 | 4,869.622 | 4,812.012 |
| TOTAL | 42.9 | 40.39 | 5,332.625 | 5,270.964 |
* Data relates to PGE Obrót S.A.
| [PLN m] | 2019 | 2018 |
|---|---|---|
| Revenue from sales: | 17,312 | 14,377 |
| EBIT | 247 | 203 |
| EBITDA | 280 | 227 |
| Capital expenditures | 30 | 14 |
The segment’s results depend mainly on margins achieved in electricity trading. The cost of property right redemptions has a significant impact on the segment’s results (i.e. so called colour-coded certificates that the seller of energy to end customers is required to redeem). The market prices of colour-coded certificates are characterised by volatility related to changes in the regulatory environment. The Supply segment also generates revenue from generation capacity trade management contracts, i.e. from wholesale electricity trading as agent for PGE Group’s production companies. Revenues from this service depends on the volumes sold by the Group’s companies.
2019 reported EBITDA was affected by lowering prices for final off-takers billing pursuant to the act on electricity prices in 2019, partly compensated by recognition of expected return of lost revenues in form of compensation pursuant to the act on electricity prices in 2019.
