Polish utilities fall as power price cut plan sparks losses fears

Ipopema Securities SA

07/11/2025 11:26

** Shares in Polish state-owned utilities PGE PGE.WA, Enea ENAE.WA and Tauron TPE.WA slide, dragging Poland's WIG-Energy .ENER index down as much as 5.3%, on proposal for electricity price cut

** Polish President Karol Nawrocki said he would propose a law to cut electricity prices for 2025 by 33%, a campaign promise the market had "forgotten about," triggering the sell-off, Ipopema Securities analyst Robert Maj says

** "If there is no compensation for energy companies, there will be huge losses," Maj says, estimating a potential loss of over 1 billion zlotys ($275 million) for Tauron and around 1 billion for Enea

** While the proposed bill may be presented on Friday, Maj notes it is uncertain whether it would pass through parliament, but still creates significant regulatory risk for the sector

** PGE is down 5.2%, Tauron slips 3.7% and Enea is down 3.8% at 1058 GMT

($1 = 0.8571 euros)

 (Reporting by Marta Maciag)

 ((marta.maciag@thomsonreuters.com;))