PGNiG faces tighter margins as gas prices rise

Revenues from sales grew by 28% and totaled zl.11 billion. However, the company's operating costs also increased by as much as 30%, mostly due to the higher cost of gas imported from Russia. The cost may increase further since PGNiG is negotiating a contract with RosUkrEnergo on gas supplies for next year and it is quite certain that PGNiG will have to pay more than it has to date. In order to compensate for the increased cost of imported gas, the company wants to increase the price of gas for domestic recipients. It had earlier applied to the Energy Regulatory Office (URE) for consent for a 4.9% increase of the price of gas in Q4, 2006, but the regulator rejected the request. "We are finishing work on a new tariff application. I cannot reveal any details," declared Cyryl Fedorowicz, the head of PGNiG's economic department. (Puls Biznesu, p. 9) E.B.