Poland’s minister for state assets, Jacek Sasin, has called on one of the country’s biggest energy firms, Tauron, to immediately reverse its “unacceptable decision” to terminate gas contracts with tens of thousands of customers.
The decision – which Tauron says was caused by the current “unstable gas market” – has added to fears over whether there will be adequate and affordable energy supplies this winter. One expert warns that other energy firms may follow Tauron in terminating contracts.
Poland's gas imports (excluding LNG) from outside the EU fell 92% in the second quarter after Russia cut off supplies.
A 172% increase in deliveries from within the EU and 33% rise in LNG imports compensated for the shortfall, but prices more than tripled https://t.co/MYAG0HhZRE
— Notes from Poland 🇵🇱 (@notesfrompoland) October 4, 2022
This week, reports emerged that Tauron – which, like other major energy suppliers in Poland, is state owned – had informed many of its clients that their gas supply contracts would be terminated on 30 November.
Yesterday, the firm itself confirmed to broadcaster TVN24 that it had done so with “tens of thousands of customers”. It said that its “decision is caused by the unstable situation on the international gas market”.
Tauron added that it was planning a “change of business model”, with a greater “focus on the electricity market”, and “therefore we are withdrawing from gas-related products for households”.
Podczas rozkręcającego się sezonu grzewczego Tauron niespodziewanie wypowiada umowy na dostawy gazu grupie kilkudziesięciu tysięcy klientów z dniem 30 listopada.https://t.co/hjENXYsaVY
— TVN24 BiS (@TVN24BiS) October 18, 2022
Customers were advised to immediately seek new suppliers, with Tauron assuring them that “the change is simple” and “takes place without interruptions in the supply of fuel”.
A spokesman for the firm told TVN that, thanks to the government’s measures to mitigate the effects of inflation, consumers have guaranteed gas prices until the end of 2027, whichever supplier they use. That “allowed the company to safely withdraw its gas fuel sales offer for customers”, he said.
Joanna Pandera, the president of Forum Energii, an energy think tank, warned that electricity suppliers may soon make a similar move because the government’s “mechanism for freezing [energy prices] and proposed compensation mechanism [for firms] is poorly constructed and carries high risks”.
Moim zdaniem wkrótce podobne pisma będą przychodzić od spółek obrotu energią elektryczną. Zamrażanie cen dla odbiorców i zaproponowany mechanizm rekompensat jest źle skonstruowany i niesie ze sobą duże ryzyka, których spółki obrotu nie udźwigną. https://t.co/NkKTVloHWB
— Joanna Pandera (@jmpandera) October 17, 2022
Tauron’s actions met with an angry response from Sasin, who as well as being minister for state assets is also deputy prime minister.
“I expect the president of Tauron to immediately withdraw from the unacceptable decision regarding the termination of gas contracts,” tweeted Sasin. “He does not have my consent for such actions.”
Piotr Kuczyński, a financial analyst at brokerage and investment advisory firm Xelion, told news website Gazeta.pl that in theory Tauron should make decisions independently of the government, acting in the interests of itself and its shareholders.
However, he noted that, in practice, because the state treasury “effectively governs ” the company, Sasin has the ability to enforce changes in its management. “So, if the CEO wants to keep his position, he must submit to the will of the minister.”
Oczekuję od Prezesa @TauronPE natychmiastowego wycofania się z nieakceptowalnej decyzji dot. wypowiadania umów na gaz. Nie ma mojej zgody na takie działania. Zmiana operatora powinna odbywać się w sposób nieodczuwalny i bezpieczny dla klienta. Nie będzie przerw w dostawie gazu.
— Jacek Sasin (@SasinJacek) October 18, 2022
The state treasury owns 30.06% of Tauron’s shares directly, with a further 10.39% owned by KGHM, another company controlled by the state treasury.
Tauron replied to Sasin’s tweet with a message assuring customers that they “are guaranteed continuity of gas supplies without interruption” and saying that the firm “will help in completing all necessary formalities” to change suppliers. However, Tauron later deleted that tweet, reports TVN.
Amid falling energy supplies and rising prices caused by Russia’s war in Ukraine, Poland’s government has taken a number of steps to help households, businesses and other institutions to meet soaring costs.
Those have included special one-off allowances to buy fuel for heating homes this autumn and winter, a cap on price rises for district heating plants, and caps on electricity prices.
Main image credit: Tauron (press materials)
Daniel Tilles is editor-in-chief of Notes from Poland. He has written on Polish affairs for a wide range of publications, including Foreign Policy, POLITICO Europe, EUobserver and Dziennik Gazeta Prawna.
