Proposed charges could raise power costs by up to 60%

Power plants could face bankruptcy if the Sejm decides to charge them hundreds of millions of zloty for draining off cooling water. The Sejm draft of amendments to the law on water usage, calls for introduction of a charge for draining off the water. According to the proposal, the charge could reach as much as zl.1.40 per cubic meter, which would translate into millions in extra costs. For example, the Patnow-Adamow-Konin (PAK) power plant conglomerate estimates that it would have to pay some zl.840 million a year for draining off cooling water, while the coal used to fuel the plant costs zl.635 million. Other power plants estimate that the cost of producing energy would increase by some 40% to 60%. Proponents of the bill claim that the zl.1.40 fee is only a maximum, while it would actually be much lower. However, an anonymous expert said that just the possibility of the government charging such huge fees would increase the risk borne by potential investors and would therefore hamper privatization of the energy sector. (Puls Biznesu, p.4) T.J.