PGNiG applies to increase prices as profits slump
Not surprisingly this had an impact on the company's share price which yesterday closed 3.33 percent down, while a few days ago its price suffered due to an information leak which is being investigated by the Financial Supervision Commission (KNF).
The management board explained that the lower profits are related to the high cost of imported gas that is mainly purchased from Russia, but the firm expects that the price growth surge will end around the turn of the 2009. In the meantime the firm has applied to the market regulator to allow it to raise prices by an average of 17.5 percent. If the Energy Regulation Office (URE) approves the change, the new prices would be binding as of October.
However, a formal reply will take up to 30 days, but the regulator has indicated that the answer will be negative. If the decision would turn out to be favorable for the firm, fees for an average consumer would go up by a maximum of 10 percent.
Sources: Parkiet, Puls Biznesu, Rzeczpospolita (M.M.)
The management board explained that the lower profits are related to the high cost of imported gas that is mainly purchased from Russia, but the firm expects that the price growth surge will end around the turn of the 2009. In the meantime the firm has applied to the market regulator to allow it to raise prices by an average of 17.5 percent. If the Energy Regulation Office (URE) approves the change, the new prices would be binding as of October.
However, a formal reply will take up to 30 days, but the regulator has indicated that the answer will be negative. If the decision would turn out to be favorable for the firm, fees for an average consumer would go up by a maximum of 10 percent.
Sources: Parkiet, Puls Biznesu, Rzeczpospolita (M.M.)
