Poland to offer refunds if coal prices exceed PLN 2,000

Poland to offer refunds if coal prices exceed PLN 2,000

The prime minister, Mateusz Morawiecki, said that the government has prepared a bill that will give refunds to local governments if the price of coal they need to purchase exceeds PLN 2,000 EUR 413 per tonne.

Poland relies heavily on coal in electricity production, but is facing a shortage of Russian coal due to an embargo on Russian coal imposed when Russia invaded Ukraine and is now paying high prices for the commodity.

Local governments have expressed concerns that the high prices could adversely affect their operations and their communities.

The prime minister promised to address the issue at a meeting with local officials. In order for the price to be the best possible for residents, we will propose a law that will allow a subsidy to keep the price around PLN 2,000, according to Morawiecki.

If imported coal costs PLN 2,500 or PLN 2,300, we will pay the difference to local governments so that they have enough funds for transporting it to the place that the local government chooses for local distribution, Morawiecki went on to say.