Poland's energy regulator caps gas price hikes

Food

Poland's energy market regulator (URE) will allow gas price hikes of about 12%, less than around 30% demanded by dominant gas group PGNiG.

“Let me make it clear: there will be hikes, but as low as possible,” Mariusz Swora told the Dziennik daily newspaper. “Taking into account all the factors affecting gas prices, the price's growth should stand at a dozen-or-so percent.”

Swora also said, he hoped to introduce new gas tariffs as soon as possible and that he said PGNiG had not given sufficient justification for raising prices to the level it was demanding.

“We want to see more efficiency in PGNiG's management board and more caring about end-users,” he said.

No one at PGNiG was immediately available for comment.

PGNiG originally demanded tariffs' hikes of 34% to catch up with rising imports prices and said it would lose around 300 million zlotys ($132 million) in the first three months of 2008 because of delays in lifting the price ceiling set by URE. (Reuters)

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