Rising gas prices could drive Polish energy companies out of business — RT Business News

Soaring natural gas prices could push smaller Polish energy companies out of business, according to Petr Wozniak, the former head of state oil and gas company PGNIG.

Wozniak said the problem stems from energy companies buying gas on the European spot market, where prices have been rising for months.

« Thus, the prices that the companies will have to pay on the spot market to buy gas will increase more and more… There is a serious threat here that the companies will not have enough money to pay the guarantees. Such a company will then be forced to withdraw from the call for tenders… If it has nowhere to buy gas, it cannot sell it to the end customer. Sole proprietorships can go bankrupt« Wozniak warned in an interview with radio station RMF FM, adding that »at the turn of the year, we can expect very strong price increases.

Earlier it was reported that PGNiG was actively taking out loans to buy on the spot market after refusing to pay rubles for Russian gas supplies. In the past two months, the company has signed four loan agreements with various financial institutions worth several billion euros.

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