In January, a debate on power industry swept through the mass media. The pretext for it was the Ministry’s plan for distribution of carbon dioxide emission limit allotments, which foresees radical cuts in the limits for our industry and considerably higher limits for other industrial sectors. On this occasion we heard various arguments why it has to be so. For us, the gravest accusation was that the power industry for years has not done anything to protect the environment and modernise the sector.

This statement was hurtful for power engineers in most domestic companies. It is impossible not to notice investments worth billions PLN and the emissions reduced several times over. Of course, we realise that due to EU regulations and the age of most power block in Poland we must continue our investments, and we do that in spite of adversities. The best example is our block in Łagisza.

The final decision as to how the limits are to be divided is to be made in February. If the December plan stands, it will mean that either we cap our output (in 2007, PKE (Południowy Koncern Energetyczny - Southern Poland Power Company) was assigned limits allowing us to produce 23 TWh of energy, this year the limits will last only for 17 TWh) – which is rather unlikely, or we will have to buy additional concessions. The latter means drastic rise in power prices... A rise that will affect our customers, make the media tear the industry to shreds and yet yield us no profit at all. We will simply use that money to pay companies in other sectors which were given higher limits than they need (they will earn on trading the limits with us, but… they will also pay much higher energy bills), in particular to European producers.

Due to the new distribution of emission limits there will be more Polish funds for investments, but… those will be investments carried out in Europe by European concerns, which have not been lacking money for that purpose already and now will make additional earnings at our expense. The European power industry faces further growth; we face the struggle with banks for each penny.

When power engineers – drawing from many years of their experience in endeavours to close the financing for construction of blocks in PAK, Łagisza and Bełchatów – appealed to cabinet after cabinet to create mechanism to stimulate the investment in new capabilities, they most certainly did not have this kind of solution in mind.

Jan Kurp