Poland outlines privatisation plans for energy industry

Electricity consumers will be able to choose an electricity supplier after 2005, Treasury Minister Wieslaw Kaczmarek told the Sejm (lower house of parliament) on 30 October adding that this rule will also be true for the gas market.
In an almost two-hour address devoted to the sale of Stoen, Warsaw's electricity distributor, to a German company and the privatisation of Poland's power sector, Kaczmarek stressed that distributors will have to be competitive saying that at present there are over 200 enterprises registered willing to deal in electricity turnover.

Speaking on the causes behind the privatisation of the power sector, Kaczmarek explained that government's prime task is to find financial and technical possibilities for the sector. According to him the sale to foreign investors will gain new technologies and funds for development.
The minister announced that part of shares in the Poludniowy Koncern Energetyczny (Southern Electricity Concern) will be floated on the Warsaw Stock Exchange in 2003. The concern is to be strengthened by several production companies.

Kaczmarek explained the government decided to set up two or three groups of electricity makers. The southern group would be made up of Silesian energy companies, the second northern concern would include Belchatow, Opole and Turow companies. The latter one is to be the state's strategic reserve.
Referring to the sale of Stoen, Kaczmarek said that the financial situation of the Warsaw company is not the best in the country. "It places 24th among all 33 electricity distributors." Commenting on concerns as to the future levels of electricity prices, Kaczmarek said that in the present legal situation and uncontrolled price increase is impossible stressing the state has adequate mechanisms to control electricity prices.