Energy producers need to become more competitive warns regulator

According to the Energy Regulation Office (URE), energy producers recorded profits of zł. 1.6 billion in 2002, mostly through selling power in long-term contracts to the National Grid (PSE). "The energy producing sector is inefficient. Similar costs in EU states are lower and if domestic producers do not restructure, than they will be pushed out of the common market in the future," warned URE president Leszek Juchniewicz. The situation of energy distributors was much worse, as revenues from their basic activities are regulated. "Last year producers earned zł. 1.5 million on transferring energy, while at the same time distribution companies lost zł. 209 million," explained the URE president. He admitted that energy price increases far exceed the rate of inflation, but the main problem is the bad financial condition of customers rather than the greed of distributors. (Puls Biznesu, p. 6) M.M.