WARSAW, Aug 19 (Reuters) - Poland plans to restore the obligation for the majority of the electricity generated by power companies to be sold on a power exchange to boost market transparency, the energy ministry said on Tuesday.
The previous government scrapped the obligation to trade all power output on the country's power exchange from 2023, reducing competition for state-controlled energy companies.
As result power companies sold more than 70% of their power through bilateral contracts in 2023, though some corporate consumers have reported difficulties in clinching purchase agreements and prices have become susceptible to speculative activity, the ministry said as it submitted its legislative proposal on Tuesday.
The proposal, which needs to be approved by the cabinet, passed in parliament and signed by the president to become law, calls for 55% of power output to be traded on the exchange.
The relevant obligation for natural gas would rise to 85% from the current 55%, boosting market transparency and competition, resulting in lower wholesale gas prices, the ministry said.
(Reporting by Marek Strzelecki
Editing by David Goodman)
((Marek.Strzelecki@thomsonreuters.com;))