On 1 March TAURON Polska Energia and Kompania Węglowa signed agreement for coal supply to TAURON Group companies. The value of the agreement is estimated at PLN 2.4 bn. The agreementsupersedes the previousagreementsigned in 2010.
The TAURON Group is one of the largest consumers of hard coal in Poland. Approx. 90% of electricity generation is based on this fuel, so long-term contracts that guarantee the supply are crucial for the Group. In the recent years, the Group’s power plants and combined heat and power plants used approx.. 11 m tons of hard coal per year.
‘I think the negotiations with Kompania Węglowa preceding conclusion of the agreement were really constructive. Our partner took account of current conditions on the power market and the hard coal market’, said Krzysztof Zawadzki, Vice-President of the Management Board, CFO at TAURON Polska Energia.
‘During discussions before conclusion of the agreement we worked together to find a formula that would satisfy both companies – on the one hand by taking account of current coal and electricity prices, and on the other hand by taking account of all relevant parameters such as volume, term and current market forecasts’, said Wojciech Kotlarek, Vice-President of the Management Board for Sales and Marketing at Kompania Węglowa.
Kompania Węglowa is the largest supplier of hard coal for TAURON, supplying approx. 45% of total demand. Over 35% is supplied by Południowy Koncern Węglowy – TAURON Group’s mining subsidiary, and the remaining 20% come from other suppliers, including Jastrzębska Spółka Węglowa and Katowicki Holding Węglowy.
The agreement, that will be in force until the end of December 2015, is a continuation of cooperation between the companies. In the year 2010 TAURON Wytwarzanie (then Południowy Koncern Energetyczny) signed a three-year long agreement for coal purchase. Total value of supplies under that agreement reached almost PLN 2bn.
