Shock to the system
On July 1, 2007, all Poles will gain the freedom to choose their own energy provider - a privilege currently extended solely to institutional clients. Experts agree that the liberalization of the energy market will create greater opportunities for private energy suppliers. Still, questions remain as to whether the sector is prepared for such a major change.
"Although there are huge expectations concerning the July 1 opening [of the market], it will be more of a slow development rather than a big-bang," said Matthias Preusser, head of strategy and organizational development at Stoen, at a debate held by Procesy Inwestycyjne. "However, it is important that Poland creates a flexible and consumer-friendly market as soon as possible," he added. "So far, we only have a competitive market on paper."
The key to creating that flexibility is the proper integration of the energy-provider market, Preusser went on to say. However, in his view, insufficient computerization makes this almost impossible at present.
Krzysztof Rogulski from HP Poland pointed out that it is crucial to focus on human factors as well. At the moment, even the largest energy providers do not have standardized service policies in their outlets, he noted.
A core advantage of liberalization will be the opening of the market to new investors. This will contribute to the reduction of energy prices, though at the moment Poland has some of the lowest energy prices in Europe. Still, energy costs take up 1.5 percent of an average Pole's income, more than 0.5 percent higher than the European average.
But some say the reduction in prices could lead to monopolization of the market. Stronger competition could lead to over-consolidation as weaker companies are swallowed up by larger ones. Tomasz Kowalak, the director of the tariff department in the government's Energy Regulatory Office, believes that to prevent this, it is necessary to implement a proper Advanced Metering Management (AMM) system, which will give customers objective information on energy prices. "We need a two-way channel for communication," Kowalak stressed.
