Polish gas tariff exposes chem firms to cross-subsidies - bank

18 December 2012 15:34  [Source: ICIS news]

LONDON (ICIS)--The chemical sector and other industries in Poland will be made to cross-subsidise residential consumers of gas as a result of a new tariff structure approved by the country’s energy regulator, an investment bank said on Tuesday.

“The tariff decision [of the Energy Regulatory Office of Poland] distorts the structure of the tariffs and penalises industrial users, which are now cross-subsidising the low residential rates,” noted Robert Rethy, an analyst at Prague-based WOOD & Company.

The new gas tariff - to be applied in Poland from 1 January 2013 and valid until 30 September 2013 - will see industrial gas prices reduced by 3.3% and the residential gas price cut by 10%, the regulator said.

Prior to the approval of the new tariff, the Polish chemical industry was involved in last-minute lobbying in an attempt at securing a greater reduction than 3.3%.

The gas price cuts have been made possible by the resolution in early November of a longstanding pricing dispute between Russia's Gazprom and Polish gas monopoly PGNiG which has reduced what Poland must pay for exported Russian gas.

By: Will Conroy
+44 20 8652 3214

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