Friday, June 21, 2024
HomeOil & GasOrlen to further cut retail energy prices by more than 50%
Powered by

Orlen to further cut retail energy prices by more than 50%

The Orlen Group’s PGNiG Obrót Detaliczny will lower its rates for customers on the Gas for Business price tariff by over 55 per cent from 15 March (353 zł/megawatt-hours, approximately 75.3 euros/MWh). In addition, from 1 April, the company will introduce a new method for determining the Gas for Business tariff, which will aim to reflect the prices of quotations with the Natural Gas EU Dutch TTF.

“The effective integration of PGNiG with the ORLEN Group and the stabilisation of the situation on the European gas market increase our operational capabilities. Two months after January’s 19 per cent cut of the Gas for Business tariff, we are lowering the current base price by more than half and introducing a new method of shaping gas prices in the offer for business customers,” said Daniel Obajtek, President of the Management Board of PKN ORLEN. “Such a large reduction is one of the many benefits resulting from the creation of a strong and stable multi-energy concern, which, thanks to its strong financial foundations, is able to offer gas customers an attractive offer, and at the same time ensure the security of gas supplies to them.”

The new gas price will be introduced via the company’s automatic reduction mechanism and will be valid until 31 March, and will not require the customers to take any action.

The new method of determining the company’s price tariff will make it possible to offer business customers gas prices based on quotations of commodity exchanges, including the Polish Power Exchange, Orlen said. The first price determined on the basis of the new calculation method will be 353zł/MWh and will be valid until the end of April this year. Subsequently, the price will be updated in monthly cycles and given a month in advance, for example, the price for May will be announced at the end of March.

Changing the pricing model could lead to a further drop in fuel prices for business customers in the coming months, should the current downward trend on the European energy market continue, the company said.

Sign up for our newsletters

    Monthly newsletter – Delivering the most important energy stories of the month selected by our Editor-in-chief
    Weekly Oil&Gas roundup - All major news about the oil and gas industry, LNG developments, the upscaling of new gases and related EU regulations arriving in your mailbox every Monday.
    Weekly Renewables&Climate roundup - All major news about investments in renewable energy sources, environment protection, green hydrogen and new innovative ways to tackle the climate crisis arriving in your mailbox every Tuesday.

    Most Popular