Impact on the economy and the market

PSE’s priority is to ensure the current and long-term operational security of the power system in Poland. The company’s tasks include maintenance and development of the transmission network, management of the Polish Power System, including network balancing, as well as cooperation with other TSOs.

Ensuring the operational security of the system significantly contributes to Poland’s economic growth, which is reflected in increased income and life qualify of Poles. Such impact of PSE on economic growth is possible owing to the company’s cooperation with numerous enterprises.

As a contributor of taxes and other levies, we have a positive impact on the local, regional and national budgets, enabling many significant projects to be financed.

Impact on the economy and the market

Our impact on the economic development of Poland

PSE’s priority is to ensure the current and long-term operational security of the power system in Poland. The company’s tasks include maintenance and development of the transmission network, management of the Polish Power System, including network balancing, as well as cooperation with other TSOs.

Ensuring the operational security of the system significantly contributes to Poland’s economic growth, which is reflected in increased income and life qualify of Poles. Such impact of PSE on economic growth is possible owing to the company’s cooperation with numerous enterprises.

As a contributor of taxes and other levies, we have a positive impact on the local, regional and national budgets, enabling many significant projects to be financed.

We have a positive impact on all branches of the Polish economy: the energy sector, trade, construction, the professional and business services sector, agriculture, hotel industry, and food service. We generate this impact through all elements of our value creation model, i.e.:

Management of the Polish Power System operation;
Contractors for new build, upgrade and repair projects performing work on grid assets;
Management of human resource and active cooperation with the company's environment.

The effects of our activities include:

Added value generated in the economy

Employees hired and new jobs created

Wages paid

Thousands of kilometres of power network in three dimensions

In order to demonstrate the extensive impact of our activities on the economy and society, we used three areas of key importance for the economic growth: added value, jobs and wages.

For each of the impact measures mentioned, three dimensions can be identified, through which we support the development of the Polish economy and contribute to the development of the wellbeing of Poles: direct, indirect and induced:

Direct dimension – resulting from PSE’s core activity.
Indirect dimension – generated among counterparties and entities from related industries.
Induced dimension – a further growth generated by an increase in household income.

PSE’s impact on the Polish economy in 2019

PLN 2.75 bn
value added

2,436
jobs

more than
PLN 203 m
wages

more than
PLN 2 bn
value added

7 807
jobs

more than
PLN 346 m
wages

PLN 619 m
value added

3,184
jobs

more than
PLN 117 m
wages

Fig. 1. Inter-branch flow model visualisation

Generated value added

Value added is the difference between global production and intermediate consumption.

Global production is the sum of:

revenue from sales of own products (goods and services)
change in the balance of products
manufacturing cost of products for internal purposes
trade margin on goods purchased for resale

Intermediate consumption includes: the aggregate of net value of consumed materials, raw materials, fuels, energy, industrial gases, third-party services, business travel and other costs¹.

[1] For PSE, intermediate consumption was calculated on the basis of data from the profit and loss account through the aggregation of costs to the level of the branches of the economy included in the model. Stranded costs and funds paid by PSE to the Settlement Body in respect of the RES charge were then deducted, as the costs do not represent a component of intermediate consumption. This approach was also applied in calculations in 2017 and 2018.

PLN 5.39 bn – total value added generated in the Polish economy in 2019 owing to PSE’s activities.

PLN 2.75 bn – the direct value added generated by PSE in the power sector.
In the industries in which PSE purchases equipment, materials and services, and in related industries, the company contributed to the creation of a total value added of more than PLN 2 bn.
The wages paid to PSE employees, employees of counterparties and subcontractors in the whole chain of supply made it possible to create an induced value added in 2019 in the amount of PLN 619 m.

Value added generated in the economy owing to the activities of PSE in 2019 (in PLN bn)

Value added generated in individual industries owing to the activities of PSE in 2019 (in PLN '000s)

Wages

Wages are a major measure of the affluence of households, and simultaneously a guarantee of satisfying the living needs of the household members. Through the employment of our own employees and an indirect impact on contractors, suppliers and subcontractors, who provide employment and pay wages to thousands of people, we positively impact the generation of additional income in many branches of the national economy.

PLN 667 m – total value of wages created in the Polish economy in 2019 owing to the activities of PSE.

The total amount of net wages at PSE was more than PLN 203 m in 2019.
Owing to purchases from our suppliers and links in the economy between different branches, suppliers and sub-suppliers could pay wages to their employees in the amount of more than PLN 346 m.
The national economy saw a further increase in wages resulting from a growth in household income and consumption. These are wages generated in an induced manner. Their total amount in 2019 was more than PLN 117 m.

3.28

Multiplier

Every zloty spent on net wages in PSE generates more than 2 zlotys in wages generated in the whole economy.

Wages generated in individual industries owing to the activities of PSE in 2019 (PLN ‘000s)

Employment

Employment is a significant area of impact, both economic and social. Through its activities, PSE not only creates and maintains jobs in its organisation, but also contributes to employment with contractors, subcontractors and suppliers, and with related entities throughout the economy.

13,427 – the total number of jobs maintained in the Polish economy in 2019 owing to PSE’s activities.

In 2019, the average staffing at PSE was 2,436 employees.
By awarding contracts for the implementation of new build, upgrade and repair projects, and cooperation with many suppliers and sub-suppliers, and in sectors related to them, we maintain 7,807 jobs in different industries.
The induced effect of PSE’s activities is 3,184 jobs across the economy.

5.51

Multiplier

1 job in PSE is more than 4 additional jobs across the economy.

Jobs maintained in individual industries owing to the activities of PSE in 2019 (number of jobs)

Taxes and charges

We run one of Europe’s investment programmes for the development of power transmission infrastructure. We make a significant contribution in taxes and other charges, which represent the general government income. Numerous public investments, possible owing to income from taxes and other charges, make it possible, among other things, to increase transport availability, environmental protection, education, and welfare improvement.

PLN 942.5 bn – the total amount of taxes, charges and social security contributions paid by PSE to the state budget, local government budgets and the Social Insurance Fund in 2019. It is more than twice the annual spending on the “Maluch+” programme under which a network of nurseries and children’s clubs is being expanded.

PLN 223.8 bn – total amount of payments in respect of income taxes (PIT and CIT) in 2019.

[2] https://www.gov.pl/web/rodzina/rodzina-praca-seniorzy-ministerstwo-rodziny-pracy-i-polityki-spolecznej-podsumowuje-dzialania

It is the distribution of all taxes paid by PSE for the benefit of the State. The central budget receives 65 percent of the total amount of taxes and local budgets receive 35 percent³.

[3] The calculations take into account the split of CIT and PIT revenues between the central budget and local government budgets. PSE’s Impact Report for 2018 (as explained in footnote 11) took into account only a part of the taxes paid to the central budget. In this Report, the respective amounts have been added also to local government budgets, which results in significant differences in PSE contributions to local government budgets compared with 2018.

Almost 65 percent of taxes, charges and contributions paid by PSE in 2019 were contributions to the central budget in respect of the following taxes:

The remaining 35 percent represents contributions paid to local budgets, broken down as follows:

The largest tax beneficiaries

In the case of voivodeships, more than 99% of local taxes paid in 2019 benefitted the Mazowieckie voivodeship budget. In total, more than PLN 26.2 m was received by voivodeship budgets in respect of taxes paid by PSE.

In 2019, PSE paid almost PLN 8.7 m to powiat budgets. 89% of the amount benefitted the poviat of Piaseczno.

In 2019, PSE paid more than PLN 296.7 m in taxes to commune budgets. The largest part of the amount, 11 percent, benefitted the budget of Konstancin – Jeziorna commune.