UPDATE 1-PGNiG looks to pass on price cut to customers

Tue Nov 27, 2012 11:54am EST

Related Topics

* Files for 3.3 pct cut for industrial users, 10 pct for individuals

* Motion a result of lower delivery prices in Gazprom deal

* Polish PM says regulator URE will OK the cuts before year-end (Adds more detail, Prime Minister comment)

WARSAW, Nov 27 (Reuters) - Polish gas monopoly PGNiG said it wanted to pass on a price cut from a recently revised deal with Russian supplier Gazprom to business and residential users.

State-controlled PGNiG said on Tuesday it had asked the energy regulator for permission to cut the price 10 percent for individual households from next year and by 3.3 percent for industrial users.

"We are in touch with (regulator) URE and we think PGNiG's motion will be accepted," Prime Minister Donald Tusk told a news conference.

Poland uses less than 15 billion cubic metres of gas annually, most of it from Russia. Earlier this month, PGNiG settled with Gazprom on a price cut of more than 15 percent under a long-term contract.

Thanks to that deal, PGNiG said 2012 core earnings would rise 2.5-3.0 billion zlotys ($791-$950 million), which will be included in fourth-quarter results.

Individual users are said to represent a third of PGNiG's sales volume. PKN Orlen, the country's top refiner, and leading chemicals makers Pulawy and Tarnow are among its biggest industrial clients. ($1 = 3.1592 zlotys) (Reporting by Maciej Onoszko and Adrian Krajewski; Editing by Dan Lalor)

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.