Europe fights for cheaper gas – Republic

Thomas Furman, Anna Słojewska 22-04-2015, last updated 22-04-2015 21:00

antitrust investigation initiated by Brussels should lead to lower gas prices, especially in Poland.

Source: Bloomberg

Gazprom will have to change the rules for determining prices for consumers in the EU. This is a chance for lower rates in Poland.

antitrust investigation initiated by Brussels should lead to lower gas prices, especially in Poland. The annual price reduction will allow us to save up to $ 400 million (1.5 billion zł). The fastest stand to benefit most LICs, including fertilizer company. By the end of the year to lower gas prices can not quite count households and smaller companies. PGNiG can gain the most as it will be much more expensive gas selling than buying it.

However, to these positive changes could take place, must be completed on Wednesday launched an investigation against Gazprom Brussels monopolistic practices in Poland and seven other countries our region. After 3.5 years, the European Commission investigation found evidence that the Russian company is abusing its dominant position on the gas markets in Poland, the Czech Republic, Slovakia, Hungary, Lithuania, Latvia, Estonia and Bulgaria. He did this by creating barriers to gas flow between countries and by unfair pricing. – Up to 40 percent. more than is consistent with market conditions, could pay gas customers in the affected countries – said Margrethe Vestager, EU Commissioner for. competition.

– The antitrust proceedings will create additional pressure to reduce gas prices in Europe – told “Rzeczpospolita “Georg Zachmann, an expert on the Brussels think tank Bruegel. – But we are talking about average. Countries where the price is low, such as Germany, will benefit less. And those where it is higher, such as Poland, benefit more. Because Gazprom will not bring prices to the lowest offered to European customers, but will average somewhere between the lowest and highest.

Gas prices in the EU and so falling because of its greater supply in the world (shale revolution in the US), lower consumption and a drop in oil prices, which is linked to the price of gas. Gazprom will issue an additional element of this trend. The company will need in the future to harmonize ways of pricing for the countries of the Union and abolish barriers to the trade between the two countries.

The evidence found in antitrust proceedings may also help to better shape for the Polish energy union. In the coming weeks, the European Commission is expected to present concrete legislative proposals.

– The antitrust proceedings against Gazprom is an argument in favor of union power and the inclusion of the Commission’s right to inspect gas contracts before signing them. So that created a dual system of action: prevention (insight into contracts) and repair (antitrust proceedings) to minimize the risk of violating the law – said “Rzeczpospolita” Rafał Trzaskowski, State Secretary. Europe.

The result of the proceedings shall be the necessity of Gazprom to pay a penalty for any losses incurred by the five affected states. For that Poland will, however, most 2.8 percent (up to 280 million dollars.). Because the proceeds of fines are shared between the EU countries are not by what the damage suffered, but how much pay to the EU budget.