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16.09.2010 Energy Regulatory Office Approves PGNiG’s Tariff Application

Polskie Górnictwo Naftowe i Gazownictwo SA (PGNIG SA) reports that on September 16th 2010, the President of the Energy Regulatory Office approved the new Tariff for the supply of gas fuels which will be effective from October 1st 2010 to March 31st 2011. Under the new Tariff, the price of high-methane gas will grow on average by ca. 6.34%. Monthly gas bills of households using gas for cooking will be higher by PLN 0.58 on average. The rates of network charges and subscription fees will remain unchanged.

The average 6.34% increase in the price of high-methane gas is the effect of higher costs of imported gas resulting from the fluctuations of the dollar-złoty exchange rate. From the effective date of the present Tariff (3/2010), the average variance between the actual USD exchange rate and the exchange rate adopted in the Tariff was in excess of 10%, and, in extreme cases, even in excess of 20%.

Another contributing factor to the growing prices are the increased costs related to the obligation to build and maintain natural gas stocks. Pursuant to the Act on Reserves of Crude Oil, Petroleum Products and Natural Gas, as well as Rules of procedure to be followed when the state's fuel security is threatened or the petroleum market is disturbed, the volume of natural gas stocks which PGNiG SA is required to maintain will increase. As of October 1st 2010, the volume of mandatory stocks will change from 15 to 20 days of the average daily imports of natural gas by PGNiG SA, which represents a rise in total imported natural gas volumes from 4.1% to 5.5%.

The average total amount of charges related to the supply of high-methane gas to consumers will increase by 4.4%.

The new Tariff provides for an average growth of the total charges for the supply of nitrogen-rich gas by 4.5% for the Lw subgroup and by 4.0% for the Ls subgroup.

CHANGES IN CHARGES FOR THE SUPPLY OF NATURAL GAS TO CUSTOMERS CONNECTED TO THE DISTRIBUTION NETWORK

The tables below present the increases in natural gas prices as reflected in average monthly bills paid by households (VAT exclusive).

HIGH-METHANE GAS (E GROUP, formerly designated as GZ-50)

Tariff Group

Item

Unit

DSG

GSG

KSG

MSG

PSG

WSG

Average

 W1

Rise in monthly bill paid by customer

2.5

2.5

2.6

2.3

2.4

2.4

2.5

 PLN/month

0.45

0.54

0.58

 W2

Rise in monthly bill paid by customer

3.1

3.3

PLN/month

2.93

 W3

Rise in monthly bill paid by customer

3.6

3.7

3.8

 PLN/month

11.68

NITROGEN-RICH GAS (Lw SUBGROUP, formerly designated as GZ-41,5)

 Tariff Group

Item

 Unit

 DSG

WSG

Average

 S1

 Rise in monthly bill paid by customer

2.7

2.7

2.7

PLN/month

0.60

 S2

 Rise in monthly bill paid by customer

3.6

PLN/month

2.93

 S3

 Rise in monthly bill paid by customer

4.0

 PLN/month

10.42

NITROGEN-RICH GAS (Ls SUBGROUP, formerly designated as GZ-35)

 Tariff Group

Item

 Unit

DSG

WSG

Average

Z1

 Rise in monthly bill paid by customer

3.0

2.5

2.5

PLN/month

0.54

0.55

 Z2

 Rise in monthly bill paid by customer

3.3

3.4

3.4

PLN/month

2.42

2.54

2.54

 Z3

 Rise in monthly bill paid by customer

3.8

3.9

3.9

 PLN/month

11.14

11.11

CHANGES OF PRICES OF NATURAL GAS DELIVERED TO CUSTOMERS CONNECTED TO THE DISTRIBUTION NETWORK

The price of gas fuel for the largest customers purchasing high-methane gas, connected to the transmission network, will grow by 6.39%. This translates into higher costs of gas fuel purchase by PLN 0.061 per 1 m3 (from PLN 0.9545 to 1.0155 per 1 m3). The price of nitrogen-rich gas will also rise by 6.39% (for the Lw and Ls subgroups), which will be reflected in a growth in purchase costs of gas fuel by PLN 0.0481 per 1 m3 for the Lw subgroup (from PLN 0.7522 to PLN 0.8003 per 1 m3 ) and by PLN 0.041 per 1 m3 for the Ls subgroup (from PLN 0.6413 to PLN 0.6823 per 1 m3).

The subscription fees and network charges paid by customers connected to the transmission network will remain unchanged.

HIGH-METHANE GAS AND NITROGEN-RICH GAS (E Group - formerly designated as GZ-50, and Lw and Ls Subgroups - formerly designated as GZ-41,5 and GZ-35) (VAT exclusive)

Customers connected to the OGP Gaz-System's transmission network

3/2010 Tariff

Amendment to 3/2010 Tariff

% increase

E 1A - E 4B

6.39%

Lw 1 - Lw 4

6.39%

Ls 1 - Ls 4

6.39%

Joanna Zakrzewska

Spokesperson for PGNiG SA

For further information please contact:

Press Team

Tel. No. (+ 48 22) 691 79 30, (+ 48 22) 691 82 49, (+ 48 22) 691 84 11

e-mail: rzecznik@pgnig.pl

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