Polish Utilities Loss Exceeds $1.5 Billion as Outlook Ebbs
- Producers post first combined net loss in at least seven years
- Utilities ask government to introduce market support mechanism
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The combined net loss of Polish utilities topped 6 billion zloty ($1.52 billion) last year as a gloomier outlook for power prices drove the companies into asset write-offs.
The loss stands in a stark contrast with at least seven years of uninterrupted combined profits for the power industry, where coal-fired facilities prevail. The new management boards at the mainly state-controlled groups, appointed by the Law & Justice government, see “unfavorable” market conditions cutting the value of their electricity generation assets and possibly altering their investment decisions. Almost all of them asked the cabinet of Beata Szydlo to introduce a support system for the traditional power generation.