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Poland wants to subsidise coal to prevent price speculation

“It will not be the money that will be given directly into the citizen’s hand,” said Moskwa, explaining that to benefit from the subsidy, consumers will either have to buy the coal from a seller that joined the subsidy programme or order it from the Polish Mining Group (PGG).

The Polish government wants to subsidise coal for household and housing cooperatives amid rising coal prices and shortages caused by the Russian coal embargo, Energy Minister Anna Moskwa announced Tuesday. Under the government’s plan, consumers can buy up to three tonnes of coal per household for a maximum price of 996 zlotys (€214). The sellers that keep the price at this level will receive up to 750 zlotys (€161) in compensation.

“It will not be the money that will be given directly into the citizen’s hand,” said Moskwa, explaining that to benefit from the subsidy, consumers will either have to buy the coal from a seller that joined the subsidy programme or order it from the Polish Mining Group (PGG). Since April, in response to the Russian invasion of Ukraine, Poland introduced a ban on Russian coal imports, used mostly for heating houses and some power plants. This contributed to rising prices, as shortages on the market led to price speculation. While coal from the mine costs about 1,000 zlotys (€214), coal dealers often offered the product two or three times as much. The overall cost of the subsidy programme will amount to three billion zlotys (about €643 million), according to the prime minister’s office.

In 2021, Poland imported about six million tonnes of Russian coal, bringing Russian companies an income of $500 million. The government announced it would replace the Russian coal with supplies from the US, Colombia, Indonesia and South Africa. Moskwa said that the draft bill introducing the subsidy programme will have to be passed by the parliament and signed by the president before it comes into effect.

https://www.euractiv.com/section/energy-environment/news/poland-wants-to-subsidise-coal-to-prevent-price-speculation/

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