Government approves new energy privatization plan

The government yesterday approved an amended electricity sector privatization program, under which the sale of generating plants will be brought forward, while the more lucrative distributors will be held back. The Treasury plans to offer 45% of seven energy generators and combined heat and power plants (CHP) this year, and 25% of a single distributor. The domestic power sector is expected to become highly profitable with its liberalization, following years of low profitability caused by caps on consumer prices and the high costs of modernization. Under the government's amended plan, five CHPs and two large generators, the Skawina and Rybnik plants, as well as distributor the G-8 Group, are being privatized this year. Several more generators and CHPs will be sold off next year, as well as Warsaw-based distributor STOEN and the G-4 Group. Finally, in 2003, the Southern Energy Concern, Opole and Turow generators will be privatized, along with four regional distribution groups. (Gazeta Wyborcza, p. 23, Reuters) M.K.