Tauron demands 1.3 bln zloty in damages over power unit it says is faulty

Mostostal Warszawa SA

11/01/2023 11:35

WARSAW, Jan 11 (Reuters) - Polish power utility Tauron
 TPE.WA  demanded 1.3 billion zloty  ($299 million) in damages
and penalty fees from a consortium of Rafako  RFK.WA  and
Mostostal Warszawa  MSWP.WA  that built a 910 megawatt (MW)
power unit it deems faulty.
     The coal-fired unit, built in 2020, has undergone several
prolonged outages since commissioning. Last year, the
state-controlled utility said it suffered a margin loss of 285
million zloty after a generator was halted for several weeks
amid soaring power prices.
    Tauron and the Rafako-led consortium have been arguing for
months about the source of the problem. 
    The consortium blames the utility for supplying substandard
quality coal for the unit, which may have damaged boiler, while
Tauron claims the faults were owed to the contractors and design
mistakes.
    "Rafako has received a long list of faults that have not
been eliminated to date," Tauron said in a statement, adding it
would give the consortium 30 days for payment. 
    "Design faults are impacting the operation, efficiency and
economics of the unit."
    Rafako and Mostostal Warszawa were not immediately available
for comment.
    ($1 = 4.3522 zlotys)
 (Reporting by Marek Strzelecki and Anna Koper; editing by Jason
Neely)
 ((Marek.Strzelecki@thomsonreuters.com;))