20 Years of Safe Trading. TGE: Trading – Guaranteeing – Educating

Creating an exchange-traded energy market in Poland was not a trivial task but Towarowa Giełda Energii (TGE) has been successful, which is demonstrated, among other things, by the fact that today market prices are set in a transparent manner. The recipe for the future is called expansion – to new business areas, new markets and new services. In the course of 20 years of its activity, TGE has grown into a leader effectively implementing innovative solutions in the field of trading energy products and guaranteeing the security of transactions. And it keeps up the momentum.

TGE

There are at least several roles that are fulfilled by the Exchange. It is the market integrator, source of reference prices, guarantor of safe trading and information centre, as it provides its members and stakeholders with access to reliable, up-to-date exchange market data. Over the two decades, TGE has become an important institution for the Polish economy. Not alone, as the TGE Group also includes the Warsaw Commodity Clearing House and InfoEngine.

The growth of TGE has always been and continues to go hand in hand with the development of the market. The changes introduced, particularly in the products we offer, have been driven by emerging market opportunities. As you may remember, the TGE’s operational activity started in 2000 with the spot electricity market. For many years, the exchange focused on day-ahead trading. It was only after a few years that we launched the forwards market where transactions are concluded over longer time horizons. For gas, it was the same story. First the spot market, then the forwards market. Today, TGE is a vital instrument that supports the transformation by offering secure and transparent tools and servicessays Piotr Zawistowski, President of the Management Board of TGE.

T – TRADING

From the very beginning, TGE has raised the bar by launching new markets, introducing new instruments and adapting to global standards. There is no denying that it was actively shaping the commodity market reality. And worked consistently to strengthen its position as the leading exchange not only in Central and Eastern Europe, but also on the entire continent. And all this thanks to the offering which makes TGE stand out from other exchanges because of its comprehensiveness and wide range of products and services available in one place. It currently consists of:

  • Exchange Commodity Market where parties can trade on the spot market for electricity, natural gas and property rights;
  • Organised Trading Facility (OTF) which enables transactions on forwards markets with physical delivery for electricity, natural gas and property rights (financial instruments);
  • Financial Instruments Market where CO₂ emission allowances are traded;
  • Certificate of Origin Register and the Guarantee of Origin Register which are operated as support systems for generators of electricity from RES and co-generation units;
  • Agricultural Exchange Market – started in March 2020, a platform where wheat, rye and maize are corn.

The creation of the Polish exchange market environment and the adaptation of the offering to market needs naturally go hand in hand with TGE’s activity in regional and international organisations such as: Europex, APEx, AFM or the Polish-Lithuanian Chamber of Commerce.

G – GUARANTEEING

TGE - 2In 2003 TGE was the first, and so far the only, entity in Poland to have obtained a licence from the Polish Financial Supervision Authority (PFSA) to operate a commodity exchange and a regulated market. The ongoing supervision by the PFSA confirms a superior level of trading security and high standards in mitigating the risk of undesirable impacts of market participants, in particular abuse and manipulation.

But that is not all. Apart from making impact on the Polish market reality, TGE is also active on the international arena, which provides an additional guarantee of high quality of service. The Exchange is proud to have the status the Nominated Electricity Market Operator (NEMO) for the Polish pricing area. It plays an active role in the Single Day-Ahead Coupling (SDAC) according to the PCR model, and in the Single Intraday Coupling (SIDC/XBID) in Europe. Moreover, TGE is included in the ACER’s list of platforms for reporting transaction information according to REMIT requirements All the above initiatives are aimed at creating a common electricity market in Europe, which is an additional confirmation for the Exchange members that TGE, while pursuing its own growth, also contributes to the development, knowledge and security of transactions for all its participants.

The integration is taking place primarily in the electricity market with broad access to electricity being its principal outcome. The fact that electricity from areas where it is cheaper flows to where it is more expensive has already become an obvious thing. Access to transparent transactions is very often mentioned as a benefit as lower prices improve competitiveness, which for businesses means equal conditions for purchasing electricity and gas and significantly improved competitiveness of their products versus neighbouring countries. This is part of the game of economics. Today, any participant in the wholesale market in Poland can very easily buy available power, at a price they find attractive, virtually anywhere in Europe – continues Piotr Zawistowski.

E – EDUCATING

Continuous dialogue with market participants is one of the TGE’s priorities. The initiatives undertaken are aimed at developing and promoting transparent trading in energy products, but also at raising awareness of the benefits of trading on the exchange. All activities the Company engages in are addressed to both market participants and the media or members of the Exchange.

In 2020, the Market Council was established as an advisory body for the Management Board of TGE concerned with the development of the product offering and working out the best solutions for entities operating on the exchange market. TGE Update is another initiative which consists in regular meetings of Exchange members where participants have the opportunity to learn about most relevant industry issues. TGE has been also active in the field of education, initiating its own projects (e.g. the “Platinum Megawatts” Competition for the media, promoting reliable journalism on the energy sector) and getting involved in third-party projects. The participation in conferences and workshops is an opportunity for the Company’s representatives to share their knowledge with others, but also to expand their own horizons, drawing on good practices.

TGE listens to and, at the same time, is shaping the market while providing security and sharing information. Trading, Guaranteeing, Educating. And that’s how it’s been for 20 years – concludes Piotr Zawistowski, President of the Management Board of TGE.

Piotr Zawistowski

President of the Management Board, Towarowa Giełda Energii S.A.: Piotr Zawistowski

Piotr Zawistowski has extensive experience and expertise in the energy sector at both national and European level. He is brings over 20 years of industry experience combined with first‑class leadership and communication skills and a long track-record of successful management. His areas of expertise focus on strategy and vision planning, global market identification and practical knowledge of energy and gas trading rules.

Piotr Zawistowski served in senior positions in key energy sector institutions in Poland, including as President of the Management Board of the Association for Energy Trading, member of the Management Board of the Polish Electricity Committee and member of the Supervisory Board of TGE. Since January 2020, he is the member of the Board of the European Association of Energy Exchanges Europex.

He took up the position of President of the Management Board of Towarowa Giełda Energii in October 2017.


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