URE predicts energy cost increases of 9% to 11% in 2002

The Energy Regulation Office (URE) has forecast increases of 9% to 11% in the cost of energy in 2002. According to URE, last year's gross profit for the sector amounted to zl. 847.9 million, zl. 291 million higher than in 2000. Demand for energy decreased by 1.8% in the same period. URE Chairman Leszek Juchniewicz says the sector's improving results are due to price increases and not cost policy rationalization. "The sector has great possibilities to cut costs," says Juchniewicz. "This particularly concerns coal prices, which are established according to cartel rules, and their increase from zl. 145 to zl. 152 per ton is much too high." In his opinion, the Economy Ministry should significantly limit the coal sector's appetite for raising prices. Other cost-saving measures, according to Juchowicz, could be found in lowering Polish State Railways (PKP) fares. The URE chairman plans to transfer the energy excise tax from producers to end users, but will also limit other costs so as to prevent energy prices from growing more than 11%. (Puls Biznesu, p. 5) M.T.