THE EFFECT OF THE LIBERALIZATION OF ELECTRICITY MARKET IN POLAND - Polish Journal of Management Studies

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THE EFFECT OF THE LIBERALIZATION OF ELECTRICITY MARKET IN POLAND

Abstracts > Vol 7

THE EFFECT OF THE LIBERALIZATION OF ELECTRICITY MARKET IN POLAND
Brzeziński S., Zborowski K., Pietrasieński P.

Abstract: This article presents effects of implementing the Third Party Access (TPA) principle on liberalization of electricity market in Poland. TPA principle is an instrument which enables introduction of competition in energy trade subsector. Author presents structureand main objectives of energy market in Poland. The article includes TPA influence on selection of energy supplier and the barriers to changing one, including economic, technicaland formal ones. Polish energy market is presented against a background of other countries.

Key words: energy market, TPA (Third Party Access), electricity supplier

Introduction

Energy marketin Poland
The major step towards the liberalization of the Polish energy market was the amendment to the act
the Energy Law Act that entered into force on 3 May, 2005. It included the transposition of the regulations of the “Electrical” Directive 2003/54/WE of the European Parliament and the Council of the European Union from 26 June 2003 concerning common rules for the internal market in electricity. The liberalization of electricity markets in the EU was initiated earlier with the adoption of the Directive 96/92/WE of the European Parliament and the Council that for the first time introduced the TPA principle [1, 2]. Then European Parliament and the Council adopted a new directive 2003/54/WE the Energy Law Act that overruled the Directive 96/92/WE. The changes included the set time period for granting the right of a free choice of a supplier for specific groups of recipients. The main point was that from 1 July 2007 this right was to be granted to all recipients, including households.

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Summary

The electricity market in Poland does not meet conditions of competitive market in larger scale yet and is still characterized by natural monopoly features. The liberalization of this market by implementation of TPA principle gives an opportunity to change this situation.  The liberalization process gives a recipient the possibility to choose an energy supplier. In comparison with other countries, in Poland this process advances slowly. The fact that only a small number of customers are involved in the process of changing electricity supplier can be explained by the lack of competitive offers of trading companies directed to households, the fact that buyers are generally not aware of being entitled to change energy supplier and this procedure poses a lot of inconvenience. There are also technical and formal barriers, such as lack of standardized contracts and lack of legislation guaranteeing stability of electricity supply.However,the TPA principle had been introduced in 2007 and it results in a systematic increase in the number of customers who used the TPA and changed their supplier. Besides all the economic, technicaland formal barriers of changing electricity supplier, implementation of TPA principle seems to result in the increase ofcompetition scale in energy sector in Poland.

References


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EFEKT LIBERALIZACJI RYNKU ENERGII ELEKTRYCZNEJ W POLSCE

Streszczenie: W artykule przedstawiono efekty realizacji zasady TPA (Third Party Access) której głównym założeniem jest liberalizacja rynku energii elektrycznej w Polsce. Zasada TPA jest instrumentem, który umożliwia wprowadzenia konkurencji w podsektorze energii handlowej. Autorzy przedstawiają strukturę i główne cele rynku energii w Polsce. Artykuł zawiera wpływ TPA w sprawie wyboru dostawcy energii i przeszkód w procesie jego zmiany, włączając w to aspekty ekonomiczne, techniczne i formalne. Polski rynek energii jest przedstawiony na tle innych krajów.
Słowa kluczowe: rynek energii, TPA (Third Party Access), dostawca energii


 
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