Poland to cap coal prices for local gov'ts says PM

The prime minister admitted that Poland was still struggling with coal distribution. Leszek Szymański/PAP

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

Poland relies heavily on coal in electricity production and faces shortages due to an embargo on Russian coal imposed when Russia invaded Ukraine and, as a consequence, is now paying high prices for the commodity.

Local governments have voiced concerns that the high prices may adversely affect their operation and their communities.

At a meeting with local officials, the prime minister promised to address the issue. "In order for the price to be the best possible for residents we will suggest a law that will offer a subsidy to keep the price around PLN 2,000," Morawiecki said.

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

The prime minister admitted that Poland was still struggling with coal distribution. "There are huge heaps of coal on wharves," Morawiecki said. "But for the coal to reach residents, we must rely on support from those who are the closest to the residents, their local governments."