Government finalizes its strategy on the power sector

The government yesterday finally accepted amendments to the document laying out its strategy in the power sector. The major assumptions for the power an d gas industries are based on the separation of distribution and sales activ ities. The privatization of STOEN, the Warsaw power supplier, and the G-8, w ill continue. All power companies will have to prepare and implement three y ear employment reduction programs. The government also wants to reduce inves tments, especially those that could result in more power being generated. Th e plan includes a merger of brown coal mines with power plants, that use thi s fuel. The shares of the Adamow and Konin coal mines will be sold, while Be lchatow, Turow and Opole plants will remain as strategic enterprises owned b y the State Treasury. Other power plants will be privatized at a later date through the sale of at least a majority stake. The existing power distributo rs will be a foundation to create companies that deal with distribution and to develop the distribution infrastructure. Subsidiary companies, dealing wi th sales of power will be separated from power distributors and be privatize d. Following this the State Treasury wants to withdraw from the distribution sector. Mines will probably be grouped together in three or four companies a nd then be privatized. Polskie Gornictwo Naftowe i Gazownictwo (PGNiG) will be split and focus mostly on gas storage, distribution and handling of long- term import contracts. (Rzeczpospolita, p. B2) P.W.