UPDATE 1-Poland eases power consumption limits as hot weather continues

(Adds detail, regional outlook)
By Agnieszka Barteczko
WARSAW, Aug 11 (Reuters) - Poland's grid operator PSE
expects to start lifting power consumption restrictions later on
Tuesday after a heat wave forced it to cut supply to industry
this week for the first time in more than a decade.
The heat wave and lack of rain has cut water levels in
rivers used to cool coal-fired power plants from which Poland
generates about 90 percent of its electricity
"The situation at the weekend was dramatic and consequently
we were forced to introduce (most severe restrictions) of power
supply," PSE chief Henryk Majchrzak told reporters. "After this
decision we managed to stabilise the system at a secure level."
Data from Poland's power exchange showed planned and
unplanned outages would fall to 3.9 gigawatts on Wednesday from
6.4 GW the day before.
Day ahead prices on the POLPX exchange were more than 80
percent higher on Monday to 484 zlotys per megawatt hour (MWh)
before they retreated to 162.78 zlotys on Tuesday.
PSE said it planned to start easing consumption limits for
large customers starting from 1500 GMT on Tuesday until 0800 GMT
Wednesday if no major unplanned outages occur. Limits are likely
to be further reduced on Wednesday, PSE said.
Poland's biggest power consumers are railway group PKP and
Europe's second biggest copper producer KGHM KGH.WA .
The heat wave is forecast to continue with temperatures
forecast to rise towards 40 degrees Celsius this week after
topping 30 degrees last week, according to Poland's meteorology
institute. It said the high temperatures would last into next
week causing a further drop in river water levels.
Temperatures have soared above 30 degrees Celsius for much
of the region, but other countries have not experienced similar
power emergencies.
Czech grid operator CEPS said it was delivering more than
1,000 MWh of emergency supplies to neighbouring Poland, adding
the heat was not affecting local power plants.
In Romania, the hot temperatures were normal for the time of
year in southern Europe and the country's two nuclear reactors
were running as planned.
A spokeswoman for Hungary's transmission system operator
said consumption was increasing due to the temperatures but the
network remained stable.
Output at Serbia's biggest hydro power plant Djerdap 1 has
been reduced by a third over the past few weeks due to lower
water levels on the Danube river, a spokeswoman for Serbia's
power utility EPS said.
A forest fire on Monday between Bosnia and Montenegro caused
a glitch on a 110 kV power line, forcing Montenegro's power
utility EPCG to limit supply temporarily to four coastal towns.
The fault was fixed quickly and normal supply was restored the
same day.