Polish Energy Group is the future of Polish power

It has declared that the National Grid (PSE) will be an integrator of the Polish Energy Group (PGE), which is the be the largest company in the sector in the future. The group will have two development scenarios. The first of them envisages that energy prices in Poland will grow by a 3% over CPI within the first few years, then in line with the rate of inflation and then they will record declining dynamics. According to PSE, PGE will post a profit of zl.870 million in 2007 (the first year following integration), while the figure will rise to zl.1.8 billion in 2009. After 10 years of existence, the group will bring its shareholders over zl.3.5 billion in profits each year. The earnings would be higher if the company did not have to bear the cost of dissolving long-term energy contracts, the so-called KDT, which were opposed by the EU. Within the first five years PGE will have at its disposal zl.3.5 billion for investments annually, while amortization will consume zl.2-2.5 billion per annum. (Puls Biznesu, pp. 1, 4) M.M.