Revenues of the WSE Group on the commodity market stood at PLN 76.0 million in 2013 compared to PLN 62.6 million in 2012.
Revenues on the commodity market include revenues of the PolPX Group, revenues of WSEInfoEngine S.A. as a trade operator and revenues of WSE from the operation of the poee WSE Energy Market (until the end of Q1 2013).
Revenues of the WSE Group on the commodity market stood at PLN 76.0 million in 2013 compared to PLN 62.6 million in 2012. The increase in the revenues in 2013 was largely driven by the consolidation of PolPX Group results for 10 months (as of March 2012). The total revenues of the PolPX Group stood at PLN 71.9 million in 2012, of which PLN 60.0 million was consolidated by the WSE Group from the time of taking control by WSE.
Revenues of the PolPX Group are driven mainly by the volume of transactions in electricity, natural gas and property rights, the volume of certificates of origin cancelled by members of the Register of Certificates of Origin and an increase of their holding balances of property rights, as well as revenues from clearing and settlement of transactions in exchange commodities in the clearing sub-segment operated by WCCH.
In view of the consolidation of PolPX Group results as of March 2012, PolPX Group revenue data below are presented for the consolidation period from March to December 2012 while volumes are presented for the 12 months of 2012.
The PolPX Group contributed to the revenues of the WSE Group its revenues from the commodity market at PLN 74.4 million in 2013, including PLN 13.5 million of revenues from spot and forward transactions in electricity, PLN 19.1 million of revenues from transactions in property rights in certificates of origin, PLN 5.7 million of other fees paid by market participants, PLN 15.6 million from the operation of the register of certificates of origin, PLN 20.5 million of revenues from clearing and settlement, and PLN 0.1 million from trade in gas.
Quarterly revenues of the WSE Group on the commodity market amounted to PLN 18.8 million in Q4 2013, as compared to PLN 18.7 million in Q3 2013 and PLN 23.9 million in Q4 2012. The decrease in revenues on the commodity market by 21.2% (PLN 5.1 million) in Q4 2013 compared to Q4 2012 was driven mainly by a decrease in revenues from trade in electricity (mainly forward transactions), a decrease in revenues from other fees paid by market participants, a decrease in revenues from the operation of the register of certificates of origin and a decrease in revenues from clearing and settlement of exchange commodities by WCCH.
Trading
Trading revenues of the WSE Group on the commodity market amounted to PLN 39.9 million in 2013, including PLN 2.5 million of revenues from spot transactions in electricity, PLN 11.1 million of revenues from forward transactions in electricity, PLN 0.1 million of revenues from transactions in gas, PLN 19.1 million of revenues from transactions in property rights in certificates of origin of electricity, and PLN 7.1 million of other fees paid by market participants.
Other fees paid by commodity market participants are mainly fees from market participants of PolPX as well as revenues of WSEInfoEngine acting as a trade operator and revenues of the poee WSE Energy Market in Q1 2013.
The total volume of trading on the energy markets operated by the PolPX Group and WSE amounted to 177.0 TWh in 2013 compared to 139.4 TWh in 2012. In particular, the volume of forward transactions increased significantly.
The volume of transactions in property rights was 39.3 TWh in 2013, a decrease of 22.9 TWh compared to 62.2 TWh in 2012.
The Group’s revenues from trade in electricity amounted to PLN 3.8 million in Q4 2013, a decrease of PLN 0.3 million compared to Q3 2013 and a decrease of PLN 1.5 million compared to Q4 2012. The quarterly total volume of trading on the energy markets operated by the Group amounted to 48.6 TWh in Q4 2013, a decrease of 12.6% compared to 55.6 TWh in Q3 2013 and a decrease of 25.5% compared to 65.2 TWh in Q4 2012.
The decrease of revenues in Q4 2013 compared to Q4 2012 was due to a different structure of transactions in different quarters of 2012 and 2013. The transaction volume was particularly high in Q4 2012 while the volume of transactions was evenly distributed over all quarters of 2013.
Revenues of the Group from transactions in property rights in certificates of origin amounted to PLN 4.8 million in Q4 2013, a decrease of 4.4% (PLN 0.2 million) compared to Q3 2013 and stable compared to Q4 2012.
The volume of transactions in property rights was 5.8 TWh in each of Q3 and Q4 2013 compared to 16.6 TWh in Q4 2012. The significant decrease in the volume of transactions in Q3 and Q4 2013 was driven mainly by a lower volume of transactions in PMEC (by 10.0 TWh) and PMGM (by 0.9 TWh) due to the expiration of the support system for electricity production in high-efficiency cogeneration. The lower revenues due to lack of trading in these instruments were offset by a two-third increase of fees on RES instruments (green certificates of origin of electricity) whose trading volume was stable in the four quarters of the years under review.
Consolidated trading revenue of WSE Group on the commodity market and the volume of trading on the commodity market in 2012 and 2013 and in selected quarters of 2012 and 2013
| Three-month period ended | Year ended 31 December | ||||
|---|---|---|---|---|---|
| 31 December 2013 | 30 September 2013 | 31 December 2012 | 2013 | 2012 | |
| Commodity market - trading revenue (PLN million) | 10,8 | 10,7 | 13,2 | 39,9 | 30,2 |
| Volume of trading in electricity (poee WSE EM* and PolPX): | |||||
| Spot transactions (TWh) | 6,3 | 5,4 | 5,6 | 22,7 | 21,3 |
| Forward transactions (TWh) | 42,3 | 50,2 | 59,6 | 154,3 | 118,1 |
| Volume of trading in gas** (PolPX): | |||||
| Spot transactions (TWh) | 0,2 | 0,1 | 0,0 | 0,4 | 0,0 |
| Forward transactions (TWh) | 1,5 | 0,2 | 0,0 | 2,0 | 0,0 |
| Volume of trading in property rights (PolPX) (TWh) | 5,8 | 5,8 | 16,6 | 39,3 | 62,2 |
** Gas Market opened on PolPX on 20 December 2012.
Revenues from other fees paid by market participants amounted to PLN 2.2 million in Q4 2013, an increase of PLN 0.5 million compared to Q3 2013 and a decrease of PLN 0.9 million compared to Q4 2013. Other fees paid by commodity market participants included fees paid by PolPX market participants and revenues of WSEInfoEngine from the activity of trade operator, as well as some fees from the poee WSE Energy Market until the end of Q1 2013.
Other fees paid by market participants are driven mainly by revenues from fixed market participation fees, fees for cancellation of transactions, fees for position transfers, fees for access to the system, and fees for management of the resources of the guarantee fund. Other fees paid by market participants depend mainly on the activity of WCCH Members, in particular the number of transactions, the number of new clients of brokerage houses, and the number of new users accessing the clearing system.
Register of Certificates of Origin
As a result of the consolidation of PolPX Group revenues as of March 2012, the WSE Group earns revenues from the operation of a Register of Certificates of Origin of electricity, which amounted to PLN 15.6 million in 2013 as compared to PLN 16.5 million in 2012.
The revenues stood at PLN 3.0 million in Q4 2013, as compared to PLN 2.7 million in Q3 2013 and PLN 4.0 million in Q4 2012.
The relatively low revenues in the quarters of 2013 under review was mainly due to the expiration of the support system for production of electricity and heat from high-efficiency cogeneration as of the end of 2012, resulting in a decrease of fees from the registration of cancellation of red and yellow certificates of origin.
The decrease of the revenues compared to Q4 2012 was also driven by lower revenues gained from fees on cancellation and issuance of RES green certificates of origin. The volume of RES green certificates of origin issued and cancelled in Q4 2013 was 3.3 TWh and 1.9 TWh, respectively, as compared to 2.7 TWh and no cancellation in Q3 2013 and 4.0 TWh and 3.1 TWh in Q4 2012.
Consolidated revenue of WSE Group from operation of the Register of Certificates of Origin of electricity, volume of issued and cancelled property rights in 2012 and 2013 and in selected quarters of 2012 and 2013
| Three-month period ended | Year ended 31 December | ||||
|---|---|---|---|---|---|
| 31 December 2013 | 30 September 2013 | 31 December 2012 | 2013 | 2012 | |
| Commodity market - revenue from operation of the Register of Certificates of Origin of electricity (PLN million) | 3,0 | 2,7 | 4,0 | 15,6 | 16,5 |
| Issued property rights (TWh) | 3,5 | 7,3 | 7,3 | 29,5 | 41,1 |
| Cancelled property rights (TWh) | 1,9 | 0,0 | 6,5 | 36,2 | 43,2 |
* In 2012, revenue of PolPX Group was consolidated as of 1 March 2012.
Clearing
The Group earns revenues from the clearing activities of WCCH, which is a subsidiary of PolPX. The revenues stood at PLN 20.5 million in 2013 and PLN 15.9 million in 2012.
The revenues amounted to PLN 5.1 million in Q4 2013, PLN 5.2 million in Q3 2013 and PLN 6.7 million in Q4 2012. The lower revenues in Q4 2013 were driven mainly by lower fees on the clearing of transactions concluded in property rights arising from certificates of origin of electricity produced in high-efficiency cogeneration (expiration of the support system for production of electricity and heat from high-efficiency cogeneration as of the end of 2012). The fees for registration of transactions in forward instruments also decreased in Q4 2013 due to a lower volume of forward transactions in electricity.