Summer 2004:

Political changes:
A new Polish Prime Minister Prof. Marek Belka was appointed by the President and approved by the Parliament on June 24th, after the resignation of Mr. Leszek Miller. The ruling coalition of the social democrat’s and the labor party still posses the majority.

Energy:
1. The Polish Energy law is being adapted to requirements of the European Union legislation.
2. The separated gas TSO and electricity TSO have been nominated.
3. The amendment in the Energy Law obligates the President of the Energy Regulatory Office to license all companies retailing liquid fuel irrespectively of their size or turnover. It means that ERO will have to issue about 6000 new licenses.
4. The Regulator is actively participating in the preparation of the solution of long term power purchase agreements which has been slowed down due to resistance of banks and power companies. However the proposition to solve the problem prepared by the Polish administration is seen to be an example of illegal public help by the European Commission. The compromise is expected to be implemented at the and of this year

Spring 2004: Long Term Power Purchase Agreements

On the 6th of January 2004, a draft bill terminating Long Term Power Purchasing Agreements has been adopted by the Polish Government and subsequently sent to the Parliament.

The efforts to address the LT PPAs have been taken by the Government since the second quarter of 2002. Estimated amount of compensations due to LT PPAs termination may reach, approximately, 15 billion PLN (Euro 3,09 billion). Application of the above mentioned program is considered a big chance to foster competitive electricity market development in Poland.

The motion aimed at the assessment of the draft bill consistency with EU rules in the field of state aid has been put forward by European Commission. The procedure is expected to be launched upon Poland’s accession to the European Community.

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For additional information on Poland, please refer to the full Membership Profile.

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