PGNiG Looks to Pass on Price Cut to Customers

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% for individual households from next year and by 3.3% 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 meters of gas annually, most of it from Russia. Earlier this month, PGNiG settled with Gazprom on a price cut of more than 15% 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.