What we expect: regulations and the market

Due to the changes taking place in the European climate policy as well as social and economic transformations, the energy sector is experiencing a fast rise in the impact of the broadly understood environment on its results and operations.

The most important factors affecting the functioning of the TAURON Group include regulatory transformations taking place at both the European as well as the national law levels.

In recent years, intense legislative processes on the part of the European Union have been observed. The energy and the environment sectors are among the competence areas that are shared between the European Union and the Member States. The majority of the EU’s activities in this area exert and will continue to exert a significant impact on the operations of the TAURON Group.

Recent years have demonstrated a very rapid pace of changes taking place not only in the regulatory environment, but also in the Group’s economic, macroeconomic or market environment. In particular, the following factors are observed:

  • introducing further and tightening the existing regulations and requirements with respect to the environment protection and counteracting climate change (among others the Winter Package, Grid Codes, ETS Directive, BAT conclusions, the European Commission guidelines on climate impact reporting),
  • increase in the volatility of the prices of electricity and related products,
  • steadfast change of the energy mix towards low or zero emission electricity generation sources,
  • development of the distributed and prosumer energy sector model,
  • advancing integration of the European electricity markets,
  • increase of the awareness of the TAURON Group’s stakeholders regarding the environment protection and climate impact.

The TAURON Group assumes that the above mentioned trends will continue, aiming at a further transition towards developing an innovative and low-emission economy, and achieving, in the long run, climate neutrality in the European Union.

Due to the above, the TAURON Group is actively monitoring both the regulatory environment as well as the market environment in order to prepare an action plan corresponding to the changing conditions for conducting market operations. In particular, the risk management system functioning in this respect in the TAURON Group is geared towards implementing appropriate and effective responses to possible threats, as well as towards the possibility of taking advantage of emerging market opportunities.

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