Brussels, 24/11/2005 (Agence Europe) - The European Commission has decided to open a new investigation into long-term electricity purchasing contracts in Poland and compensation paid should these contracts be cancelled. Agreements concluded between the public network operator Polskie Sieci Energetyczne S.A. (PSE) and electricity producers cover almost half of the production market, which could restrict the entrance of new competitors, the Commission notes, which also fears that competition may be distorted. The agreements, which were signed between 1994 and 1998, will expire between 2005 and 2027. They oblige PSE to buy a certain quantity of electricity at a set price and provide compensation in case of contract cancellation, but the Commission is not certain that this aid fulfils the conditions of the methodology for the analysis of State aid related to stranded costs. Interested third parties are invited to submit their comments.