High energy prices driving away foreign investors?

The news raised eyebrows among Poland's energy companies and some experts, which claim energy costs are too low. However, there are indications these are not isolated cases. The companies in question are Hemlock Semiconductor Corp (HSC) of the US, one of the world's leading silicon producers, which had planned to spend up to USD2 billion (zł.4.9 billion) on a cutting-edge silicon plant employing 600 people; and Umoe of Norway, which is looking for a location for a EUR 360 million (zł.1.3 billion) solar panel plant employing 520 workers. HSC pulled the plug on the project late last year, while Umoe, which was considering locations in Lower Silesia, is reportedly unhappy with energy costs and is about to withdraw. Wojciech Szelągowski, Vice-President of PAIiIZ, the state investment promotion agency, admits several other companies previously cited energy costs as a factor in scrapping planned investments in Poland, with some opting for France instead thanks to its cheap, state-subsidized energy. Szelągowski argues Poland's power generators should become more flexible in negotiating discounts with large potential foreign users. But some experts suggest demands for lower energy prices are used by investors as a bargaining tactic and are not always reasonable. (Puls Biznesu, p. 4, 5) R.M.