Axpo and Geberit sign gas and electricity agreement

Axpo has partnered with Swiss multinational manufacturer Geberit for the purchase of gas and electricity to power its production facilities in Poland, it was announced today. The contract’s flexible purchasing strategy is based on the Polish Power Exchange and Dutch TTF. In addition to their business relationship and Swiss roots, the companies share a strong commitment to sustainability and a greener future.

Axpo Polska, a subsidiary of Swiss energy group Axpo, and Geberit, a European leader in the production of sanitation and plumbing systems, have signed an agreement for the purchase of natural gas and electricity. Energy sold under the contract will power Geberit's two Polish production facilities in Ożarów and Włocławek.

The new contract covers the hedging of electricity prices on the Polish Power Exchange (POLPX) futures market. It also provides a flexible purchasing structure for natural gas indexed to Europe's largest natural gas market, the Dutch TTF virtual trading platform. Unhedged consumption of both electricity and gas will be purchased on the POLPX day-ahead market.

Axpo Polska Head of Origination and Board Member Mateusz Marczewski said: “The higher number of transactions and larger volumes traded on the TTF mean that the risk premiums at the time of purchase, as well as the volatility of quotations, are lower than on the Polish exchange.”

“Geberit’s extensive experience and understanding of how the energy markets work meant the negotiation process was fast and professional. We are also delighted to have the opportunity to work with a company like Geberit with Swiss roots and a similar approach to sustainable development,” he added.

Geberit Purchasing Manager Artur Banasiak said: “A flexible approach to the purchase of essential production materials, including electricity and gas, is key to our business strategy. To achieve this, we need a proven partner with whom we could develop a relationship, which is why we chose Axpo. Offering tailored solutions and with similar values, we are delighted to welcome Axpo as a business partner.”

Part of the Axpo Group, Axpo Polska has been present in the Polish market for 20 years and is one of the country’s largest independent offtakers of green energy. Clients benefit from tailor-made PPA and power supply solutions based on structured long-term contracts, power balancing and forecasting, property rights and guarantees of origin trading. The company also provides services to more than 35,000 companies in the SME sector and has expanded its offering to include photovoltaic and battery storage projects.