EU Approves Law to Free up Polish Power Market

The European Commission today approved Poland's plans to scrap its system of long-term power contracts, ending a long running dispute and opening up the way for power trading in the country. The EU has been pressing Poland for years to end the agreements, signed between generators and the national power grid in the 1990s to guarantee huge loans for overhaul of its communist-era infrastructure, writes Forbes.

The long-term Power Purchase Agreements (PPAs),cover almost half the Polish power generation market.

The new agreements on the annulment of the PPAs will finish by 1 January 2008 and become effective on 1 April 2008 at the latest says Forbes.