Stoen investor TBA this week

The Treasury Ministry is due to reveal its choice of bidder in the privatization of Warsaw power distributor Stoen this week. Though the decision could be delayed, analysts hope that the government will finally bring key elements of its power sector strategy to light. After 12 years of reluctant reform, the ability of the Polish electric power sector to compete on the European Union (EU) market remains hindered by low viability, limited competitiveness and reliance on power-purchase agreements (PPA) that guarantee generators prices above market levels. Although the government announced its revised power sector strategy for the restructuring, consolidating and limiting the privatization of generators, distributors and suppliers in April, few details of the plan have come to light. "Two of the most important obstacles for the energy sector are slow privatization and the engagement of the state as the majority owner of power plants and distributors and long-term power purchasing contracts that prevent any kind of move toward market-oriented trading," said Arkadiusz Wicik, an analyst at U.S. credit rating agency Fitch Ratings in Poland.