By Patryk Wasilewski
WARSAW--Parts of the Polish gas market, which is dominated by
state-controlled monopoly Polskie Gornictwo Naftowe i Gazownictwo
SA (PGN.WA), could start to be opened up at the beginning of next
year, the head of the country's energy regulator URE said
Thursday.
Poland's gas market is entirely regulated with URE setting gas
prices for both corporate and individual clients as PGNiG is the
sole supplier of natural gas.
"I think we will start opening up the first segments of the
wholesale market in the first quarter and later on, depending on
the pace of developments in the gas market, we will get to the
retail market over the years," Marek Woszczyk told TVN CNBC.
In the electricity market, prices for corporate clients are
unregulated, but individuals are protected by the regulator with
state-set prices.
Mr. Woszczyk reiterated he expects to cut the price of natural
gas in January next year after PGNiG struck a deal with OAO Gazprom
(GAZP.RS) to lower the price of gas it imports from Russia by over
10%.
And because of ongoing changes in the European gas market, the
outlook for Polish shale-gas developments and the waning role of
oil-indexed long-term supply contracts, the January price reduction
could be the start of a multi-year cycle of price cuts, Mr.
Woszczyk said.
Write to Patryk Wasilewski at patryk.wasilewski@dowjones.com
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