If it weren’t for the public subsidy for power plants, energy could be PLN 20-21 per MWh cheaper, the energy regulatory office URE estimates. This means 10 percent less than next year’s prices. Power plants have a right for state subsidies because of the expiration of long-term contracts. However, they demand nearly PLN 2.4bn from the state in 2009.
“Producers entitled to get public subsidies do not operate alone but within consolidated groups”, Mariusz Swora, URE CEO said.
He believes that groups should support power plants which are not able to earn their money. Meanwhile, energy producers want to raise prices by several dozens percent and at the same time they ask for public subsidies. PGE wants PLN 1.57bn of state subsidy next year. Tauron, another state-owned energy group, expects PLN 309m. Smaller, independent energy producers expect much less, including Elcho (PLN 185m), PAK (PLN 118m), Nowa Sarzyna (PLN 116m) or EC Zielona Groa (PLN 67m). Kozienice power plant, part of listed Enea group, had the right to ask for PLN 103m. It did not ask for any subsidy, however.
(PLN 1 = EUR 0.252)