Operating Activities of Energy Companies in the Context of Crude Oil Risk and its Impact on the Polish Power Exchange

Different factors have significant impact on the development of the Polish Power Exchange and the volatility of electricity contracts prices, which are quoted on this part of energy market. The electricity prices are strongly influenced by such determinants as: the level of turnover volume, fuel prices, weather conditions, the CO2 emission allowance prices, political situation, the changeability of the energy demand level. The purpose of this paper is to examine and compare the volatility behaviour of world crude oil prices and electricity prices established on the Polish Power Exchange (POLPX) in the turbulent period, which covers the subprime financial crisis, geopolitical crisis, and changes in the rules of the European Union's energy policy. The background for the empirical research is a comparative analysis of business strategies of Polish energy companies and their adaptation to the factors that in the significant way influence the development of energy sector in Poland.