February 16, 2010
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PGNiG Seeks Permission to Raise Gas Prices

Polish gas monopoly PGNiG PGNI.WA has asked the local energy regulator to clear a tariff hike to make up for losses on imports.

Slawomir Hinc declined to specify the planned increase, but said on Friday the tariff would be valid for six months.

By 1101 GMT, shares in PGNiG were up 2.9 percent, the biggest risers among Warsaw's blue chips.

"We confirm PGNiG has filed its tariff proposal today," regulator URE spokesman Agnieszka Glosniewska said, but did not elaborate.

The current tariff, cut by 9 percent in mid-2009, expires at end-March. PGNiG Chief Executive Michal Szubski told Reuters last month he saw no reason for it to be reduced further. [ID:nLDE60A1MB]

The company's import costs are susceptible to a weakening zloty and rising oil prices, while the tariffs it can charge are set by the state energy regulator URE, which has refused to raise them as often or as high as PGNiG would like.

PGNiG imports over two-thirds of the natural gas it sells from Russia at prices which are tied to oil CLc1, with a nine-month delay. (Reporting by Pawel Bernat, additional reporting and writing by Adrian Krajewski, editing by Will Waterman)

Copyright 2010.Reuters. All rights reserved.


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