PGNiG given go-ahead to raise domestic gas prices, cut charges for industry

Polish Oil and Gas (PGNiG) has received permission from the Energy Regulation Office (URE) to increase gas prices for households by up to 10%, starting next month. The most significant increase will be in the monthly flat rate charge, which in some cases will rise by over 100%. The increase in VAT will also contribute to the higher gas prices. According to the URE, which sets the official ceiling for prices charged by PGNiG, a new quarterly tariff will allow charges for industrial customers to be cut by as much as 10.7% through the elimination of cross subsidies. Currently Poland's industrial customers subsidize household consumers, who account for less than a third of PGNiG's annual gas sales. In view of their imminent European Union (EU) accession, Poland and other countries in the region need to eliminate cross subsidies in their monopolized natural gas sectors. (Gazeta Wyborcza, p. 18; Reuters) M.T.