Coal: the Polish government backtracks on its subsidy system

Coal: the Polish government backtracks on its subsidy system

The Polish government should explore alternatives to replace embargoed Russian coal and address high coal prices. So claimed Prime Minister Mateusz Morawiecki after a subsidy scheme introduced last month came to light ” problem ” for Warsaw.

To halt rising coal prices, the government introduced a subsidy system last month. Each coal trader who maintains prices at a level not exceeding 996 zlotys (208 €) per ton receives a supplement of 1073 zł (224 €) from the government. However, this solution is not profitable for most dealers and few of them have decided to join the government system.

“It is indeed problematic to create a system in which a consumer can buy coal at a regular price”, admitted Mr. Morawiecki, quoted by the information platform Wirtualna Polska. According to him, the failure of the system is attributable to the dealers, who do not show “no willingness to cooperate” with the government.

The cabinet therefore decided to think about other means of compensating households for the high price of coal. New ideas will be presented soon, Morawiecki said.

Dealers say it’s unfair to blame them. A dealer who joined the government system will have to pay several hundred additional zlotys out of pocket and will only receive the supplement at the end of the year, one of them explained. “With this system, each of us would go bankrupt”he told Wirtualna Polska.

“I don’t want subsidies. Let the government or state enterprises provide cheap coal instead”he added.

Mr. Morawiecki has already informed state companies that they must increase their coal imports. Due to the Russian coal embargo, Poland is looking for other trading partners.

According to the maritime information service Portal Morski, Polish ports are expecting 12 ships with coal deliveries from all over the world. So far, Poland has imported coal from Australia, Indonesia, South Africa, Mozambique, Canada, Colombia, the Netherlands and other countries.

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