Poland to subsidise coal for local gov'ts

2022-10-13 20:17 update: 2022-10-16, 13:22
Photo PAP/Leszek Szymański
Photo PAP/Leszek Szymański
The government will spend about PLN 3 billion (EUR 0.62 billion) from the state budget on coal subsidies for local governments, Mateusz Morawiecki, the prime minister, has said.

Morawiecki said at a press conference in Otwock near Warsaw on Thursday that Polish consumers still lacked 3 million tonnes of coal before the winter season.

"Considering the fact that on average we subsidise each tonne by PLN 1,000 (EUR 206), the total cost for the budget will be at the level of PLN 3 billion," the prime minister said.

According to Morawiecki, the money will come from this year's budget.

"We'll probably manage to fit it in the budget without the need to amend it," Morawiecki said.

The prime minister also vowed to keep the price of coal at a stable level of PLN 1,500 (EUR 309) per tonne for local governments.

"The price of imported coal is high but we're launching intervention measures to lower it," he said. "Whether the importer brings coal at a cost of PLN 2,400, PLN 2,500 or PLN 2,700 per tonne, we'll reduce the price each time to PLN 1,500 gross."

Local governments will be able to re-sell the coal to residents at a price not higher than PLN 2,000 (EUR 412) per tonne, according to Morawiecki.

Additionally, to limit the impact of surging electricity prices on the so-called sensitive institutions, such as kindergartens, schools, care centres or hospitals, these institutions will enjoy a reduced tariff regardless of how much electricity they use, the prime minister said.

However, this measure hinges on a decision by the European Commission, which currently allows for applying reduced tariffs only to 80 percent of use.

"I can say today that in all probability, and based on the information that we have, we'll not be applying this limit," Morawiecki said. "The European Commission has imposed this 80 percent limit, but we'll be lifting it."

"A requirement to present a savings plan will replace it," he added.

The prices of coal, natural gas and oil shot up after Russia invaded Ukraine. Poland has banned imports of Russian coal, which has meant finding alternative suppliers and streamlining the distribution of the commodity. (PAP)