EC investigates energy plants zł.16 billion compensation

The Polish government plans to give the plants zł.14-16 billion, as compensation for termination of favorable long-term contracts for supplying energy. The contracts were signed back in the 1990s, but had to be terminated as they do not comply with EU regulations. The government claims that compensation for these lost rights does not constitute state aid to enterprises and does not require the Commission's approval. However, the Commission declared it would seek to establish whether the compensation actually reflects the true value of what was lost in the terminated contracts. (Rzeczpospolita, May 8-9, p. B2) T.J.