PGE Polska Grupa Energetyczna completed the acquisition of 100 per cent of PKP Energetyka on 3 April 2023. The company under its new management will change its name to PGE Energetyka Kolejowa. In doing so, the PGE Group has strengthened its position as the largest producer and distributor of electricity in Poland. At the same time, it increases the security of Poland’s energy railway infrastructure.
“Repolonisation of key companies is an important element in increasing the security of the State, but also in strengthening the competitiveness of Polish companies and the economy as a whole. The repurchase of PKP Energetyka by PGE means the improvement of a strategic and political mistake made by the Civic Platform, which weakened the security of the country by handing such an important company into foreign hands. I am convinced that, as was the case after the takeover of district heating assets from EDF, PGE will fully exploit the potential of this investment for its development and strengthening of Poland’s energy security,”
Jacek Sasin, Deputy Prime Minister and Minister of State Assets, says.
Having fulfilled the conditions set out in the preliminary agreement signed on 28 December 2022 and obtained the approval of the Office of Competition and Consumer Protection, PGE Polska Grupa Energetyczna finalised the acquisition of PKP Energetyka on 3 April 2023.
“Regaining control over a key company for the Polish economy is our conscious action to strengthen security and control over Poland’s critical infrastructure (…) Today, the PGE Group is entering a new area of activity. With the acquisition of PKP Energetyka, PGE is strengthening its position as a leader in the energy sector. According to the figures for 2022, the acquisition of PKP Energetyka increases the volume of energy distribution by around 12 per cent and sales by around 9 per cent, which increases the revenue of the entire PGE Group by around PLN 4.3 billion and the recurring EBITDA by around PLN 770 million,”
Wojciech Dąbrowski, President of the Management Board of PGE Polska Grupa Energetyczna, says.
“The railway is a key element of the country’s transport and logistics infrastructure. On the one hand, it supports the Polish economy and, on the other, it offers comfortable and fast transport for passengers throughout Poland. The acquisition of PKP Energetyka by the PGE Group means the restoration of the State’s control over the strategic railway infrastructure and the strengthening of the security of railway companies,”
Andrzej Adamczyk, Minister of Infrastructure, said.
The company’s Supervisory Board decided to appoint a new Management Board headed by Sylwester Szczensnowicz.
Until the necessary changes are made to the National Court Register, the company will operate under the trade name PGE Energetyka Kolejowa. In connection with this, a rebranding process in line with the company’s future name has also begun.
“PGE Energetyka Kolejowa will operate as a company within the PGE Group. The objective of the new management board will be to integrate with the PGE Group and fully utilise the knowledge, skills, and experience of the employees for the further development of the company and the PGE Group. We want PGE Energetyka Kolejowa to dynamically develop a modern and safe railway energy infrastructure in Poland,”
Sylwester Szczensnowicz, President of the Management Board of PGE Energetyka Kolejowa, said.
PGE Energetyka Kolejowa invests in modernising its network
PKP Energetyka, the future PGE Energetyka Kolejowa, has undergone an extensive modernisation programme in recent years, allocating around PLN 4.3 billion for investment. This has translated into an over threefold increase in the value of the company’s property, plant, and equipment.
It currently has 6 modern control centres on the network controlled by 52,000 smart energy meters (AMI). The infrastructure is complemented by 814 traction substations and cabins, 6,213 substations and 70 network trains. The company is responsible for the distribution of 4.32 TWh of electricity per year. It accounts for approximately 3 per cent of all energy supplied in the country. It uses approximately 21,500 km of power lines for this purpose.
The PGE Group is the largest electricity company in Poland, the leader of the country’s energy transition and the largest producer of renewable energy. Following the acquisition of PGE Energetyka, the length of distribution lines in the Group increased to approximately 320,000 km. According to pro forma data for 2022, the total volume of energy distributed is approximately 41.4 TWh and energy sales are approximately 37.3 TWh.