The Polish government’s plans to merge its largest power utilities appear to have been delayed by protests against the move.

Bloomberg reports that Poland‘s Treasury Ministry’s proposal has led to protests within the ruling party as well as concerns from unions on the potential impact.

The government wants to merge its biggest utility PGE SA with Energa SA, while combining Tauron Polska Energia SA and Enea SA, Kazimierz Grajcarek of the Solidarity union said last week after discussing the proposals with the ministry.
The ministry, in charge of state-owned assets, had first planned to announce the details of the consolidation by the end of last month and later postponed the presentation until this week.

Poland, whose power generators plan to spend $27bn to upgrade their facilities by 2020, is seeking to consolidate the industry to help it compete in Europe and get cheaper financing.

Mayors of Gdansk, Gdynia and Sopot last week sent a letter to the ministry demanding Gdansk-based Energa remain a separate entity, according to Gdynia City’s website.

Whichever merger method the government selects, the utilities will continue to function as separate legal entities and keep paying taxes locally, Treasury Minister Wlodzimierz Karpinski said in a Feb. 2 interview with Gazeta Wyborcza.

The four Polish power companies have a combined market value of $16.7 billion.