Recipients:
Central administration, regulator
Participants of the electricity market
Contractors and subcontractors
Investment environment
Industry organisations
Scientific and research institutions
Employees and potential employees
Media
We are the only electricity transmission system operator within the territory of Poland.
Electricity is supplied to homes, businesses and institutions over the power network, i.e. energy highways which we manage.
As transmission system operator, we play a key role in efficient functioning of the Polish economy. We ensure the operational security of the Polish Power System and care of the reliability of electricity supply to all regions of the country.
Power system in Poland and the role of PSE
GRI 103-1Ensuring common access to electricity requires an efficiently operating system for its generation, transmission and distribution. All equipment connected to the system, including consumers’ facilities, forms the Polish Power System.
The power system is a particularly guarded type of infrastructure – critical infrastructure, as it determines the security of society, economy and the state.
A power system operates in every country of the world. Almost everywhere – also in Poland – power systems are centrally controlled. Operation of the Polish Power System is controlled by theNational Power Dispatch Centre, i.e. PSE dispatching service.
The Polish power system is interconnected with the systems of neighbouring countries by cross-border lines. Currently almost all systems of Continental Europe are interconnected. They form the world's largest synchronous system. This allows many measurable benefits to be achieved, such as:
- mutually profitable international commercial exchange,
- reduction of the required power reserve in the system,
- ability to use assistance in emergency situations.
How does the power system work?
In terms of the character of its technical functions, the Polish Power System (PPS) consists of three subsystems.
Electricity generation
in power plants, CHP plants and distributed sources.
Electricity transmission
performed by the transmission system operator (TSO). Within the territory of Poland, PSE is the only TSO appointed by the President of the Energy Regulatory Office.
Distribution and consumption of electricity
Electricity generation
Electricity supplied to our homes is generated mainly in power plants and combined heat and power (CHP) plants. In Poland, the basic energy generating sources are thermal power plants in which energy is generated as a result of combustion – usually by burning hard coal or lignite. The largest cluster of those plants is situated in the southern part of the country. In larger cities, CHP plants operate which are mostly fired with coal, but also natural gas. Renewable energy sources (RES) are also developing: wind, hydro, biomass and photovoltaic.
Electricity transmission and distribution
Energy transmission from power plants to consumers is possible over an extensive network of power lines and electrical substations. Depending on the distance over which electricity is transmitted, different voltage levels are used to optimise costs.
The following voltage standards have been adopted in Poland for electricity transmission and distribution:
(extra-high voltages)
for long-distance transmission.
(high voltage)
for transmission over distances not exceeding several dozens of kilometres.
(medium voltage)
used in local distribution networks.
(low voltage)
used basically to supply power to end users.
Learn the process of electricity transmission from its generation to delivery to the consumer:
- Power plants produce energy, supplying it mostly to the transmission network (400 and 220 kV) or the distribution network (110kV).
- EHV (extra-high voltage) transmission lines – 220 and 400 kV – carry energy to EHV/HV (extra-high voltage/ high-voltage) substations where voltage is transformed to 110 kV.
- HV (high-voltage) lines – 110 kV – carry energy over distances not exceeding several dozens of kilometres to HV/MV (high-voltage/medium-voltage) substations.
- MV (medium-voltage) lines – 6, 10, 15, 20 or 30 kV – carry energy to MV/LV (medium-voltage/low-voltage) substations.
- LV (low-voltage) lines – 230/400 V – carry energy to end users, e.g. households.
Fig. 1. The path of electricity from generator to consumer
PSE as transmission system operator
Electric power transmission systems are territorially extensive and technologically complicated engineering systems. The require the presence of a central operator.
GRI 102-6 GRI 102-4 GRI 103-1
Within the territory of Poland, PSE is the only transmission system operator (TSO), as under the Energy Law one TSO is appointed within the territory of the Republic of Poland. Our company was appointed by the President of the Energy Regulatory Office (ERO) to serve this function until 31 December 2020.
We provide electricity transmission and power system access services while maintaining the required criteria for the operational security of the Polish power system (PPS). As a TSO, our company is expected to conduct effective activities to ensure the required quality and security of electricity supply and cost-effective operation of the system. The operator’s activities are determined by the need to fulfil in a reliable manner the TSO’s tasks defined by national and EU laws and regulations, in particular ensuring the security, quality and continuity of electricity supply as part of transmission services provided within the country and cross-border exchange. The operator is engaged in the maintenance and development of the national transmission network and, in cooperation with the neighbouring TSOs, cross-border interconnections.
All this makes us an enterprise of special significance to public order and security, and of particular importance for the Polish economy.
The share capital of our company is PLN 9 605 473 000,00 and has been fully paid up.
Operating rules of the transmission system operator in Poland
Our core duties are prescribed by the Energy Law and regulations issued under it by the minister in charge of energy. The documents define both our tasks and the way of financing them, and the applicable technical standards and dependability criteria.
The costs of the tasks we perform are referred to as regulated costs. In the amount considered by the President of ERO to be justified, the costs of included in the calculation of transmission fee rates in a tariff approved by the President of ERO, and covered by proceeds received from system users in respect of the application of the tariff. As an operator, we perform our tasks using technical facilities of transmission-connected parties – they are required to provide access to them under the applicable laws or relevant civil-law agreements.
PSE's tasks as Transmission System Operator
GRI 102-2
Tasks performed by PSE as transmission system operator can be classified into four basic groups:
Quality and current security of electricity supply
Adequacy of the national transmission network
Operation of the national electricity market
International cooperation
within interconnected power systems and the single European electricity market.
International cooperation tasks
We are a member of the European Network of Transmission System Operators for Electricity - (ENTSO-E). ENTSO-E groups together 43 transmission system operators from 36 countries.
The organisation has been in existence since December 2008, and since 3 March 2011 it has been operating under Regulation (EC) No 714/2009 of the European Parliament and of the Council of 13 July 2009 on conditions for access to the network for cross-border exchanges in electricity and repealing Regulation (EC) No 1228/2003.
The task of ENTSO-E is to promote reliable operation, optimal management and sustainable development of the pan-European electric power transmission system to ensure the security of supply and satisfy the needs of the internal energy market.
More than 80 employees of PSE are engaged in the work of ENTSO-E, actively participating at different levels of the organisation in all key tasks.
Our employees participate, among other things, in the process of preparing and implementing European network codes, issued as regulations of the European Commission, and guidelines. Network codes are specific tools for the implementation of the single electricity market in the EU – they contain common rules for the operation and management of power systems and are aimed to eliminate technical barriers for further integration of the market. As EU regulations they apply directly in all Member States.
Description of European regulations and their impact on the operation of the Polish electricity market and PSE's activities
PSE, as transmission system operator within the territory of Poland, is responsible for performing tasks specified in national and EU regulations.
Presented below are the key legislative acts of the European Union which influence the activities of the TSO and have been implemented into national legislation.
Directive 2009/72/EC of the European Parliament and of the Council of 13 July 2009
concerning common rules for the internal market in electricity and repealing Directive 2003/54/EC – sets out the main obligations of the TSO and the rules for the effective unbundling of electricity generation and supply activities from transmission activities, thus the obligations of TSO ownership unbundling.
Directive 2009/28/EC of the European Parliament and of the Council of 23 April 2009
on the promotion of the use of energy from renewable sources and amending and subsequently repealing Directives 2001/77/EC and 2003/30/EC – establishes a common framework of measures aimed to ensure a 20 percent share of RES in final consumption of energy, including the rules for priority treatment of renewable sources in the network connection process.
Directive 2005/89/EC of the European Parliament and of the Council of 18 January 2006
concerning measures to safeguard security of electricity supply and infrastructure investment – sets out measures aimed to guarantee the security of electricity supply in order to ensure the correct operation of the internal electricity market.
How we operate
GRI 102-1 GRI 102-5 GRI 102-6
We operate throughout the country under the name of Polskie Sieci Elektroenergetyczne Spółka Akcyjna (PSE S.A.).
Our clients are:
- electricity undertakings involved in electricity generation and trading,
- electricity distribution system operators (DSOs),
- final consumers connected to the transmission network.
The beneficiaries of our organisation include electricity undertakings providing ancillary services and selling electrical energy to our company to offset losses in the transmission network.
100%
stake held by
the State Treasury
GRI 102-5
GRI 102-7 Scale of PSE operations in numbers
Employment
2 258
Number of PSE employees in 2017
2 348
Number of PSE CG employees in 2017
1 882
Number of PSE employees in 2016
2 128
Number of PSE CG employees in 2016
Financial data
8 887
Net sales (in PLN m) in 2017
531
Net profit (in PLN m) in 2017
19 513
Total assets (in PLN m) in 2017
8 144
Net sales (in PLN m) in 2016
568
Net profit (in PLN m) in 2016
18 466
Total assets (in PLN m) in 2016
Network infrastructure
14 195 km*
Total length of transmission lines in 2017
258
Number of transmission lines in 2017
106
Number of extra-high voltage substations in 2017
14 123 km*
Total length of transmission lines in 2016
256
Number of transmission lines in 2016
106
Number of extra-high voltage substations in 2016
* Line length converted to 1 circuit
Services
33
Number of transmission agreements with entities connected to the transmission network in 2017
90
Number of transmission agreements with entities operating in the electricity balancing market, not connected to the transmission network in 2017
163
Number of PPS access service agreements with DSOs not connected to the transmission network in 2017
35
Number of concluded agreements for the connection of new sources to the transmission network in 2017
16 098 MW
Total capacity of new generating sources with connection agreements in force in 2017
24
Number of connection agreements for new generating sources for which PSE has launched investment projects involving works necessary for connection in 2017
35
Number of transmission agreements with entities connected to the transmission network in 2016
87
Number of transmission agreements with entities operating in the electricity balancing market, not connected to the transmission network in 2016
157
Number of PPS access service agreements with DSOs not connected to the transmission network in 2016
46
Number of concluded agreements for the connection of new sources to the transmission network in 2016
19 198 MW
Total capacity of new generating sources with connection agreements in force in 2016
27
Number of connection agreements for new generating sources for which PSE has launched investment projects involving works necessary for connection in 2016
Table 3. Scale of PSE operations in numbers
GRI 102-45 PSE Capital Group
PSE Capital Group was established to perform tasks under the Programme for the Power Sector adopted by the Council of Ministers on 28 March 2006. The Programme provided for the endowment of the transmission system operator with transmission assets, and with tools for the maintenance, operation and expansion of the assets in the form of specialised companies.
Polskie Sieci Elektroenergetyczne S.A.*
Power transmission system operator within the territory of Poland. In accordance with the Decision of the President of ERO of June 2014, PSE will serve the TSO function in the country until 2030.
PSE Inwestycje S.A.
100% - PSE share in share capital
A specialised company responsible for design work and the organisation and supervision of the implementation of investment projects related to the construction, expansion and upgrading of buildings for the purposes of welfare/ office and technical facilities of PSE.
PSE Innowacje Sp. z o.o.
100% - PSE share in share capital
An entity providing consulting services which involve analysis, research, new technologies and IT solutions in the power sector, in particular supporting PSE in implementing new technologies, as well as innovation, research and development work ensuring the secure and cost-effective operation of the PPS.
LitPol Link Sp. z o.o.
50% - PSE share in share capital
The company coordinated work under the Poland-Lithuania interconnection project completed in 2015, with regard to the cross-border section of the project. It included the construction of a 400 kV two-circuit overhead line linking the power systems of Lithuania and Poland between the Alytus and Ełk Bis substations, construction of a converter station in Alytus and conversion of the Alytus and Ełk Bis substations.
Joint Allocation Office S.A.
4,5% - PSE share in share capital
A company established by 20 TSOs from the CEE and CWE regions and Norway through a merger of the auction offices Central Allocation Office GmbH and Capacity Allocation Service Company.eu S.A.
The purpose for which JOA was set up was to provide the highest quality of services to customers and shareholders while ensuring the maximum economic performance and meeting the EU requirements for constraint management.
TSCNET Services GmbH
7,7% - PSE share in share capital
A development initiative of TSC covering a large part of the Continental Europe synchronous area. TSC's business objective – to improve the operational security of interconnected power systems (including the PPS) – is fully consistent with European regulations and the single European electricity market being created.
In order to improve inter-TSO cooperation within TSC, 10 TSOs established the company TSCNET Services GmbH (hereinafter: TSCNET) based in Munich.
*Polskie Sieci Elektroenergetyczne S.A. – parent company. The company has PSE field sub-units and field job positions of PSE units in Bydgoszcz, Katowice, Poznań, Radom and Warsaw.
In the financial statements and in equivalent documents, we show PSE including ZKOs, whereas companies of the Capital Group are excluded.
Economic performance
GRI 103-1 We implement our strategic objectives, continuously monitoring our performance and the achievement of key economic and financial indicators. Preparing mid-term projects that make it possible to assess the capability to finance the expenditure adopted in the Investment Plan, assuming full implementation of strategic objectives and operations.
|
GRI 201-1, GRI 102-7 Direct economic value generated taking into account income, operating costs, employee remuneration, subsidies and other investments for the community, undistributed profits, and payments to capital owners and state institutions |
Value in PLN | |
|---|---|---|
|
2017 |
2016 | |
|
Income (all income and profits included in the financial statements): |
9 008 390 514 |
8 263 818 047 |
|
Net sales |
8 886 788 920 |
8 144 476 446 |
|
Other operating income |
70 989 676 |
57 670 908 |
|
Financial income |
50 611 918 |
61 670 693 |
|
Operating costs: |
8 356 824 475 |
7 558 149 861 |
|
Operating costs |
8 168 945 261 |
7 366 224 742 |
|
Other operating costs |
178 631 777 |
187 845 518 |
|
Financial costs |
9 247 438 |
4 079 601 |
|
Operating costs (taking into account the exclusions shown) |
7 737 876 016 |
6 979 022 251 |
|
Exclusions: |
|
|
|
Payroll, social security and other benefits |
359 988 797 |
335 856 288 |
|
Taxes and levies |
256 954 484 |
242 732 246 |
|
Investment in communities* |
20 000 |
61 182 |
|
Interest expense |
1 985 179 |
477 894 |
|
Payments to investors: |
0 |
0 |
|
Dividend |
0 |
0 |
|
Payments to the state: |
483 757 322 |
485 673 685 |
|
Taxes and levies |
256 954 484 |
242 732 246 |
|
Interest expense ** |
1 985 179 |
477 894 |
|
Income tax, current part |
149 608 472 |
160 669 928 |
|
Profit payment |
75 209 187 |
81 793 617 |
|
Retained value |
426 748 380 |
463 204 641*** |
* We carry on a regulated activity, generating our core income from the transmission tariff approved by the President of ERO. In practice, this means that we have limited capabilities to develop social engagement programmes, in particular by making donations to public benefit organisations and other organisations, which influences the scale of investment in communities.
** In 2017, 76 percent of PSE’s interest expense was remitted directly to the state budget.
*** The retained value disclosed in the 2016 Integrated Report (PLN 463 682 535) was adjusted by interest expense. The disclosure of interest expense reduces the retained value.
|
GRI 201-4 Total monetary value of financial assistance received by the organisation from government during the reporting period, including at least the value of: |
Value (in PLN) | |
|---|---|---|
|
2017 |
2016 | |
|
- tax relief |
0 |
9 420 |
|
- investment grants, research and development grants, and other relevant types of grants |
22 468 776 |
106 868 539 |
|
- awards |
- |
- |
|
- royalty holidays |
- |
- |
|
- financial assistance from Export Credit Agencies (ECAs) |
- |
- |
|
- financial incentives |
- |
- |
|
- other financial benefits received from government |
23 600 |
0 |
GRI 102-12 GRI 102-13 Learn about international and national industry organisations and CSR initiatives of which PSE is a member
ENTSO-E
European Network of Transmission System Operators for Electricity, an important link
in building a common electricity market. ENTSO-E prepares so-called network codes which form a basis of the EU law – regulations providing common rules for the operation and management of power systems, which serve the implementation of a single electricity market in the EU.
Central Europe Energy Partners (CEEP)
an international non-profit association representing the Central European energy sector, whose objective is to support the integration of the Central European energy sector within the framework of the EU common energy and security policy in the area.
Association of Polish Electrical Engineers (SEP)
a creative non-governmental organisation of a scientific and technical nature operating for social and public benefit. It is a voluntary association of electrical engineers of all specialties, whose professional activities are related to broad-based electrical engineering, as well as legal persons with an interest in its activities.
Polish Committee for Large Electric Systems (PKWSE)
one of 58 national committees operating on behalf of CIGRE, the world's largest international association of experts dealing with the issue of power generation, transmission and distribution.
Polish Power Transmission and Distribution Association (PTPiREE)
an organisation whose main object is to take measures towards comprehensive development and rational use of networks and facilities for the transmission and distribution of electricity.
Partnership for the Implementation of Sustainable Development Goals (SDGs)
a partnership between the Ministry of Development and representatives of more than 50 entities, including Polskie Sieci Elektroenergetyczne, for the implementation of the SDGs. The objective of the SDGs is to create a new economic reality that will open up development paths for business and become an opportunity for changes in the country, the region, and in the company.
Responsible Energy
an initiative that groups together socially responsible companies from the energy sector. Its main idea is to increase the awareness of the importance of sustainable development and popularise good practices among representatives of the energy sector, students, and representatives of the administration and NGOs.
