The power concern Południowy Koncern Energetyczny has reached agreement with the banks and the power group Polska Grupa Energetyczna (earlier electrical power networks Polskie Sieci Elektroenergetyczne) in respect of the termination of long-term contracts. Hereby we have met the statutory deadline for the termination of these contracts. In result, from the second quarter of the year on, the contracts stop to exist. We will be selling all the production on the market.

The contracts have been signed by our power plants and heat and power stations mainly in the 90ies of the 20th century and provided an indemnity for the investments we have made. Last year - mainly for the reason of pressure from the European Union - a bill stipulating the procedures and the financial conditions of the termination of these agreements was passed. According to the experts the termination of long-term contracts will definitely speed up the introduction of market mechanisms in our branch.

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