Annual Report 2017

Distribution Business Line

Dystrybucja

Distribution

The basic Business Line from the perspective of the Group’s operating profitability involving distribution of electricity in Poland is a regulated activity, conducted on the basis of tariffs approved by the President of the Energy Regulatory Office (ERO). The Energa SA Group has a natural monopoly position in the northern and central part of Poland, where its distribution assets are located.

Location of the Group’s operations and key assets

Location of the Group’s operations and key assets
3 million

customers, of which around 2.8 million are customers with comprehensive contracts and 204 thousands are TPA clients

184 th. km

total length of power lines

24 %

of the country's area, 75 thousand km - electricity distribution area

Number of Energa-Operator SA’s customers (thousands)

In 2017, Energa-Operator SA recorded a 1% increase in the number of customers from the previous year. This number increased in tariff groups B and G but declined in tariff group C among small customers whereas the number the so-called big-offtake customers increased.

At the same time tariff C saw an increase in consumption per customer yoy. As at the end of 2017, the Company had 3,043 thousand customers.

Number of Energa-Operator SA’s customers by tariff group (TWh)

*in the case of the 2016 data (for tariffs C and G), the data on invoiced sales were decreased by the volume invoiced this year in the part which related to 2015 (and which was not invoiced in 2015 due to postponement of invoicing caused by data migration to new billing systems).

In 2017, the volume of electricity supplied was higher than in the previous year, by 2% on average. The increase in volume was recorded mainly in the high-margin group C and group B, while in Group A (low-margin) we lost a significant customer (who switched to its own source of supply and the PSE network). As a result, the increase in the average distribution rate was approx. 5% yoy.

See also