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Economy Ministry to force PGNiG to sell 30 percent of gas on new exchange

8th October 2012
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Poland’s Economy Ministry will order gas monopoly PGNiG to offer 30 percent of its sales on the country’s planned gas exchange in an effort to speed up the liberalization of the gas market, Reuters reported last week.

The legislation that would usher in the changes is expected to be accepted by the Polish government by October 17. The European Commission has threatened to fine Poland up to E270,000 next year if it does not liberalize gas prices, which are capped by the Energy Regulatory Office.

PGNiG, which is a state-controlled firm, sells nearly all of the gas available in Poland. Seventy percent of the gas goes to industry and the rest to individual customers.

Poland plans to establish the gas exchange before the end of the year and to address the EC’s complaints by weakening the dominant position of PGNiG in the market, where demand totals more than 14 billion cubic meters.

After the legislation is accepted by the government it will go on to parliament for approval, where it is expected to pass without difficulty.


From Warsaw Business Journal by Remi Adekoya


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