Polskie Górnictwo Naftowe i Gazownictwo (Polish Oil & Gas Company) abused its market position by refusing, with no legal grounds, to enter into a comprehensive gas supply agreement with NowyGaz. The entrepreneur was fined with PLN 60 million for restricting competition and depriving consumers of the possibility to choose a gas dealer

On the domestic market, Polskie Górnictwo Naftowe i Gazownictwo (PGNiG) has a 98 percent share in the sales of natural gas. It is also the owner of e.g. Mazowiecka Spółka Gazownictwa, which provides ca. 1.5 million consumers with fuel. In December 2010, having received notifications that the market dominant impedes the sale of gas, the President of UOKiK instituted legal proceedings against PGNiG.

The first undertaking willing to purchase fuel from PGNiG and, subsequently, provide it to consumers and entrepreneurs connected to the distribution network of Mazowiecka Spółka Gazownictwa, was the company NowyGaz. However, the dominant market entity kept refusing to conclude a comprehensive sales contract, justifying it with formal and technical problems, among others, concerning gas settlements and the lack of relevant legal regulations.

Conducted proceedings (during which was used, among others, the opinion of the market regulatory authority – President of the Energy Regulatory Office) proved that the refusal to conclude the contract had no objective justification, and constituted in fact the abuse of a  dominant position of PGNiG. Failure to conclude a contract made it impossible for NowyGaz to enter the retail gas sales market and compete with PGNiG at this level of gas trade.

The refusal to sign the contract was, therefore, aimed at restricting or, at least, delaying the development of competition on the natural gas retail sales market, by means of preventing NowyGaz from providing services, and, indirectly, by influencing the behaviour of other entities that could possibly be interested in this scope of activity. 

The results of prohibited practice affected the end-recipients of gas, including consumers, who according to the binding legal regulations, should have a free choice of gas dealers and the right to change them. Nevertheless, they were only able to buy fuel from PGNiG. The presence of other gas suppliers on the market could result in a decrease in prices and an improved quality of services.

UOKiK fined Polskie Górnictwo Naftowe i Gazownictwo with PLN 60 million (PLN 60,016,474.40) for abusing its market position. The amount of the fine imposed was determined, among others, by the fact that the practice of PGNiG impeded the liberalisation of the natural gas sales market. The fact that the company ceased the prohibited practice acted as mitigating circumstances in this case. The company eventually signed the contract with NowyGaz.

The decision is not final. It may be appealed against to the Court of Competition and Consumer Protection.

Additional information for the media:
Małgorzata Cieloch, Spokesperson for UOKiK
Department of International Relations and Communication
Pl. Powstańców Warszawy 1, 00-950 Warszawa
Phone: +48 22 55 60 106
Fax: +48 22 826 11 86
E-mail: [SCODE]bWFsZ29yemF0YS5jaWVsb2NoQHVva2lrLmdvdg==[ECODE].p