WARSAW: Poland’s power companies will continue to face low wholesale energy prices, in the range of PLN 160-180 per MWh through 2020, with power group PGE most exposed to weak prices and peer Energa best protected, according to rating agency Moody’s note on its sector report.
“Moody’s expects that all the electric utilities will continue to be affected by weak power prices,” the statement reads. “Of the four largest Polish state-owned electricity groups, PGE is the most exposed to the wholesale power price because it generates the most power; lacks a balanced generation-supply position; and has the lowest share of regulated distribution network activities,” Moody’s said.
Energa, on the other hand, “is the least exposed given its high share of regulated distribution cash flows.” On a positive note, while Polish power firms lack diversification compared with large Western European peers, they enjoy good credit profiles, Moody’s said. “Their credit profiles are supported by strong balance sheets, which give them added financial flexibility,” Moody’s analysts wrote. “This is particularly important in view of their sizeable investment plans, which total close to PLN 115 billion over the 2014-20 period.”
