Prime Minister speaking at the Port of Gdańsk about government solutions for municipalities and residents regarding coal distribution
05.12.2022
Russia has deliberately thrown Europe into an energy crisis. This requires mobilisation from the entire public administration – the government and local governments. Our government has created an effective mechanism for distributing coal to citizens. Thanks to a subsidy from the state budget, local governments can buy coal from importers well below the market price – up to PLN 1,500 per tonne. This means better access to that commodity and lower prices for citizens. This is not the only government action aimed at protecting households from rising coal prices. We have also introduced a one-off coal allowance of PLN 3,000.
“There are certain times in history when the government has to take the helm very firmly in its own hands to propose its own solutions and then implement them effectively. The commodity market has descended into chaos and confusion after Russia's attack on Ukraine. No normal market mechanisms were present there. It was necessary to replace them with the mechanisms of a functional state," said the Prime Minister, summarising the government's actions in dealing with the international energy crisis.
Coal Act – allowing local governments to sell coal to residents at no more than PLN 2,000 per tonne
To support the supply of solid fuels to households, we have introduced, among other things, a financial allowance and the temporary authorisation of the use of lignite in households. In addition to this, the Act on preferential purchase of solid fuel by households came into force on 3 November 2022. It allows local governments to sell coal to residents at no more than PLN 2,000 per tonne.
The demand form in the cieplo.gov.pl system was filled in by 2,387 municipalities. Agreements have been signed with 1,885 municipalities. In this framework:
- The first delivery was made in 500 municipalities,
- municipalities received deliveries of 90,605 tonnes of coal,
- order processing began in 88 municipalities.
Carbon allowance – protecting households
Households must be protected from rising coal prices, which is why we have introduced a one-off coal allowance of PLN 3,000. Applications for the allowance could be submitted until 30 November 2022.
The allowance is available to households whose main source of heating is a solid fuel boiler, fireplace, freestanding stove, air heater, kitchen range, cooker, coal stove or solid-fuel tiled stove – fuelled with hard coal, briquette or pellet containing at least 85 per cent hard coal.
The rule "One household = one application" applies.
The allowance will be paid within 2 months of the date of application, no later than by 30 December 2022.
Meetings regarding coal purchases held at the Chancellery of the Prime Minister
“We are not turning a blind eye; instead, we are rolling up our sleeves and moving forward. We are implementing what must be arranged by the state in a situation when the market does not work and market mechanisms are violated," the Prime Minister continued.
The government constantly analyses the situation in the coal market to be able to react quickly to changing circumstances. Since July, regular meetings on coal purchases have been held at the Chancellery of the Prime Minister (KPRM). They are attended, among others, by representatives of state-owned companies, including representatives of the Ministry of State Assets and other entities involved in the process of coal purchase and distribution. This enables efficient management of the process.
Lower energy prices for Poles
Poland is presenting one of the most comprehensive packages of economy support in Europe. We are protecting Poles against the energy crisis and, through the measures proposed, we are directly supporting e.g. local governments.
The Council of Ministers has established and proposed a maximum electricity price for local governments, among others, at PLN 785 per MWh. This means limiting price increases by up to 70 per cent. This is a major relief for local government budgets and allows them to ensure continuity of service for their residents.
We are freezing energy prices in 2023:
- up to 2,000 kWh per year for all households,
- up to 2,600 kWh per year for households with people with disabilities,
- up to 3,000 kWh per year for families with the Large Family Card and farmers.
Everyone will benefit, and if someone exceeds the limit, the maximum price for electricity is set at PLN 693 per MWh.