U.S. PSEG Global fears annulment of long-term contracts

Such a decision will liberalize the energy market, but will also have a negative impact on the whole industry. According to initial estimates, the investor will demand between $370 - 420 million in compensation for liquidating the long-term contracts. "Our liabilities to banks for the loan granted for the Chorzów investment stand at $270 million, but we must add extra costs. In case we do not pay installments, the costs of breaking the credit agreement can amount to $80 - 120 million. Besides that, the bank can take over the investment, and in this case we will lose our own funds invested in the project," explained Adam Milczarczyk, managing director of PSEG in Poland. Tadeusz Soroka, deputy Treasury Minister announced that the amount of compensation will be negotiated and will be paid out by National Grid (PSE). (Puls Biznesu, pp. 1, 6) A.K.