Henryk Baranowski: Further strengthening the EU ETS will cost EUR 6 billion to Poland

Henryk Baranowski: Further strengthening the EU ETS will cost EUR 6 billion to Poland

Henryk Baranowski, the President of the Management Board of PGE (joined CEEP in January 2017) and vice-chairman of the board of directors of CEEP says that strengthening of the EU ETS by increasing the Linear Reduction Factor to at least 2.4% and establishing the intake rate of the Market Stability Reserve up to 24% per year would result in a significant increase of wholesale electricity prices – up to 20% in Poland. It is also a serious challenge for other Member States from Central and Eastern Europe – particularly Bulgaria, Croatia, Estonia, Romania. What do you want to accomplish as a CEEP member? It is clear that international cooperation between companies from our region is essential to find a well-balanced compromise when adopting the EU’s policies. However, despite major common interests (notably the level of the EU ETS ambition, energy import dependency and the need to co-finance the energy transition from EU sources), utilities from Central and Eastern Europe still have much room for improvement in presenting their joint positions in Brussels. It is much easier to promote our interests by working together and speaking with one voice, as opposed to individual actions. It is necessary to identify not only mutual interests but also to find a common platform through which we could communicate with our partners. Therefore, we cannot underestimate the importance of a strengthened regional cooperation. We perceive the membership in CEEP as a great opportunity to present our position to the EU institutions at the highest level. Despite the fact that we have some experience in direct cooperation with other utilities from the region within EURELECTRIC, [...]
The Modernisation Fund must follow the objectives of the national energy markets

The Modernisation Fund must follow the objectives of the national energy markets

On May the 4th, 2016, CEEP’s CEO spoke at a hearing at the European Parliament, which was devoted to the revision of the 2003/87/EC directive. Mr. Bodio stressed that the new proposal regarding the directive may not change the formula of the Modernisation Fund, by reducing the role of Member States, when it comes to investment decisions in the energy sector. The aim of the works, which are now taking place in the European Commission, is to make the ETS system compliant with the European Council’s conclusions. In October, 2014, heads of governments reached an agreement in relation to the climate and energy policy framework post-2030. The CEO of CEEP reminded the audience at the European Parliament that part of the compromise was the establishment of the Modernisation Fund for those Member States, where GDP per capita does not exceed 60% of the EU average. “The Fund was to be managed by the Beneficiary States, with an advisory – and not decisive – role of the European Investment Bank (EIB). Yet, what we now see on the table goes in a totally opposite direction, with the role of Beneficiary States strictly limited, when compared to the original agreement,” Mr. Bodio stressed. The current proposal from the European Commission provides the EIB and Non-Beneficiary Member States with a decisive role concerning the selection of specific investment projects. This could lead to the blocking of financial support for modern energy technologies, whose only ‘fault’ is making use of coal. According to CEEP’s CEO, “the selection of investment projects should be carried out, taking into account the specificity of the energy mix [...]