Following an in-depth state aid investigation, the EC has concluded that long-term power purchase agreements (PPAs) of electricity entered between the Poland-based network operator and generators constituted unlawful and incompatible aid. The EC requested that Poland terminate those agreements, effective April 1, 2008. The EC found that such contracts significantly foreclose the market from new entrants. In addition, the EC approved a system of compensation for the “stranded costs” that will arise due to cancellation of the PPAs and which cannot be recouped by the generators.