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Curbing power prices will cost Poland over 30 billion zloty-PM

Friday, September 16, 2022
Curbing power prices will cost Poland over 30 billion zloty-PM © Reuters. FILE PHOTO: Polish Prime Minister Mateusz Morawiecki speaks during a joint news briefing with Latvian President Egils Levits and Ukraine's President Volodymyr Zelenskiy, amid Russia's attack on Ukraine, in Kyiv, Ukraine September 9, 2022. REUTERS/Valenty

WARSAW (Reuters) - Measures aimed at freezing power prices for households and providing support for energy intensive companies will cost Poland over 30 billion zlotys ($6.35 billion), Prime Minister Mateusz Morawiecki said on Thursday.

The country plans to freeze prices for households using up to 2000 kilowatt-hours a year. In addition, a 10% cut in electricity use will be rewarded with a 10% price cut as an incentive to save energy.

"Combined all these support measures are a huge cost, adding it all and including support for energy intensive companies tops 30 billion zloty," Morawiecki told a news briefing.

Like all European Union members Poland has felt the pinch of the energy crisis. The country protects households by regulating gas and power prices but companies and Poles using coal for heating have been among the most exposed to surging prices.

Other measures announced Thursday include mandatory savings of 10% of electricity use by government offices and municipal administration. Morawiecki said that 66% of Polish households will pay unchanged power bills next year.

Poland has already earmarked 11.5 billion zloty for coal subsidies for households and additional 13.7 billion for municipalities grappling with the burden of soaring energy bills.

Separately it has provided state-controlled gas company PGNiG with up to 55 billion zloty of state guarantees to secure financing for liquidity and created a 10 billion zloty fund to compensate the difference between gas prices on the market and those the company charges to household customers.

($1 = 4.7242 zlotys)

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 EUR/JPY142.80↑ Buy
 EUR/CHF0.9768↑ Buy
 Gold1,711.60Neutral
 Silver21.027↑ Buy
 Copper3.4655Neutral
 Crude Oil WTI83.90↑ Sell
 Brent Oil89.30↑ Sell
 Natural Gas6.469↑ Sell
 US Coffee C215.55↑ Sell
 Euro Stoxx 503,342.17↑ Sell
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 FTSE 1006,908.76Neutral
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 BASF40.940↑ Sell
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 Allianz161.54Neutral
 Adidas119.00↑ Buy
 Lufthansa5.716Sell
 Siemens AG100.92↑ Sell
 Deutsche Bank AG7.630↑ Sell
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# So hôm qua # Chênh TG
SJC Eximbank6,550/ 6,630
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SJC HCM6,540/ 6,640
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SJC Hanoi6,540/ 6,642
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