The Act on Subsidies to Coal. The design went to the Sejm – Economy today

A government bill on special consumer protection solutions for certain solid fuels has been submitted to the Sejm in view of the market situation for these fuels. It provides compensation for sellers who are put up for sale at a price that does not exceed PLN 966.60 per gross ton of solid fuels such as coal, briquettes or pellets, containing at least 85% coal.

Additional payment details

Compensation applies to solid fuels mined in Poland or imported in the period from April 16, 2022 to December 31, 2022.

The fee is a maximum of PLN 750 gross per ton for the sale of no more than 3 tons of solid fuel per household – or so it stated in the draft.

Which companies receive subsidies?

Entities eligible for reimbursement are entrepreneurs engaged in the marketing of fuels and registered in the Central Register of Excise Organizations. The condition for obtaining compensation from such an entrepreneur is the sale of solid fuels to households at a price not exceeding PLN 996.60 gross per tonne. Sale at a higher price does not entitle to compensation – emphasized in the invoice.

According to the announcement of the chairman of the Central Statistical Office of January 13, 2022, PLN 996.60 is the average annual average sales price per ton of coal in 2021.

Households

The allowance entitles the owner to the sale of coal to those households whose main source of heating is “a solid fuel boiler, fireplace, goat, air heater, stove, stove, coal stove or solid fuel tile stove fired with solid fuel”. These sources must be reported to the central register of emissivity of buildings.

Sellers must invoice for the sale of solid fuel at a price not exceeding PLN 996.60 gross per tonne. When purchasing, a household member is obliged to provide the entrepreneur with the quantity of fuel that he has purchased from the date of entry into force of the Act, intended for the household’s own needs, as well as a statement on heat sources or fuel combustion sources and a copy of the declaration on heat sources or sources of fuel combustion.

When to submit applications?

The fee will be paid by the Settlement Administrator at the request of the seller. Applications can be submitted between 1 and 20 January 2023.

The project stipulates that the total cost of compensation should not exceed PLN 3 billion. They are paid from the Price Difference Payment Fund, to which additional funds from the COVID-19 Control Fund are transferred. If the total amount of compensation determined on the basis of applications to the R is higher, it will be reduced proportionally so that the total amount is equal to the maximum limit of the resources.

Volunteer registration at the post office

The project assumes the creation of a special database of people interested in purchasing solid fuel for their household needs, in which everyone will have to register. Registration must be done electronically or through the offices of Poczta Polska.

As stated in the Regulatory Impact Assessment, according to GUS data, in 2020 the number of households using coal for any purpose was 5.166 million, and for 4.634 million it was the primary medium for space heating. The consumption of coal in households in 2020 in turn amounted to 8.670 million tons and the average consumption per household in 2020 was about 3 tons.

According to the RIA estimates from the Ministry of Climate, the number of households using coal for any heating purpose was 4.3 million in 2021, in 3.8 million it was the basic medium for heating rooms.

The MKiŚ estimates household coal consumption at 7.4 million tons. On June 8, 2022, the number of declarations to the Central Emission Registration Buildings amounted to approximately 4.2 million, including approximately 1.8 million coal and coal-fired boilers – stated in the RIA.

Also read:

PAP / PR24.pl / mk

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