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Poland to grant one-time payment to households to compensate for rising coal prices

The general view of the Wujek coal mine is seen at sunset in Katowice, Poland October 16, 2108. REUTERS/Kacper Pempel

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WARSAW, July 19 (Reuters) – Poland plans to offer households a one-time payment of 3,000 zlotys ($635) to help cover the rising cost of coal, according to a bill published on Monday evening, as the country is facing soaring energy prices. following the war in Ukraine.

Due to their high quality, imports of Russian coal were mainly used by individual households and heating installations in small towns before they were banned in April.

The subsequent spike in prices due to the shortfall has left many Poles worried that they will not be able to heat their homes in the winter.

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“The proposed regulation aims to help a large group of households in Poland, including the most energy poor, to cover part of the costs resulting from the increase in prices on the energy market,” says the law Project.

The subsidy will be available for households where coal is the main source of heat, and the deadline for submitting applications would be November 30.

The proposal is expected to be accepted by the government on Tuesday, then will be put to a vote in parliament.

Poland depends on coal for about 80% of its electricity production. Although it is the largest fuel producer in the European Union, it still imported more than 8 million tonnes of Russian coal in 2021 and faces a deficit of up to 11 million tonnes this year due to the decline in local production.

It introduced subsidies aimed at keeping prices for small shoppers at last year’s level earlier this month, but retailers are reluctant to participate in the scheme because the payments are not offsetting the surge in market prices. Read more

It has also taken steps to stimulate imports from other sources.

($1 = 4.7223 zlotys)

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Reporting by Alan Charlish and Anna Koper; Editing by Jan Harvey

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