July 31, 2018 / 8:16 AM / in 3 months

Poland to trade all electricity on exchange to prevent price surge

WARSAW, July 31 (Reuters) - Polish power companies will have to sell all electricity they produce except for green energy on a power exchange in order to prevent further price surges, energy ministry said on Monday evening.

Currently Poland’s power companies, which are mostly state-run utilities, are obliged to sell 30 percent of their electricity output on the power exchange.

The relatively small supply often translates into unexpected and significant price movements.

“I hope that increasing this obligation will stabilise wholesale electricity prices and will prevent their unjustified growth in 2019,” Energy Minister Krzysztof Tchorzewski was quoted as saying in a statement.

The ministry said it has asked state-run energy groups to start selling all of their electricity via the exchange starting from August 1.

Power prices in Poland have jumped in the past few months due to rising coal prices and carbon emission costs. The energy market regulator is investigating the matter.

Poland generates most of its electricity from coal, but shrinking deposits and rising emission costs have prompted the government to look to cleaner sources of energy. (Reporting by Agnieszka Barteczko)

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