Ministries present competing plans for future of energy distributors

Energy sector analysts have positively evaluated the plan for transforming energy distribution companies which was prepared by the Treasury Ministry. They claim it is more realistic than the one proposed by the Economy M inistry. Moreover, the Treasury Ministry version is supported by the energy sector. The project under the auspices of the Economy Ministry envisages the creation of two large energy groups - a western and eastern one consisting of non-privatized distribution companies. On the other hand, the Treasury Ministry proposes the creation of five groups headed by the leading co mpanies. "Both concepts are good, however the version submitted by the Treasury is more realistic. It will be difficult to build such big str uctures as proposed by the Economy Ministry. With such a number of man agements and trade unions it will be difficult to reach an agreement fast, or reach one at all," said an energy sector insider who wished to remain anonymous. "Sector consolidation is inevitable but the state would not be able to manage such an operation efficiently. Consolidation on such a scale is hazardous. It would be better if the burden was taken by future investors who would either win or lose," said an analyst. (Puls Biznesu, p. 4) A.Z.