Support will be provided to companies from sectors that are highly dependent on fluctuations in natural gas and electricity prices. The Council of Ministers will allocate 5 billion zlotys for these purposes.
On January 3, the Council of Ministers approved the Resolution approving the state program “Assistance to energy-intensive industries in connection with the sudden increase in prices for natural gas and electricity in 2022”.
PLN 5 billion for companies
The Minister of Development and Technology submitted a draft resolution on supporting companies in energy-intensive industries. As we read in the communique after the meeting of the Council of Ministers “The government will provide financial support to Polish energy-intensive companies in connection with the increase in energy and natural gas prices in 2022. Support will allow enterprises to maintain liquidity, profitability, jobs and production capacity in times of crisis. It is expected that about 1,000 enterprises will receive support, most of which will be large companies. The government will allocate more than 5 billion zł for the program.
The war in Ukraine caused turbulence in the energy market
The resolution is a reaction to the situation in the energy market. Russia’s energy blackmail, followed by the Kremlin’s unjustified military invasion of Ukraine, has skyrocketed natural gas, oil and electricity prices. Many companies began to record gigantic losses because of this.
On the Polish Energy Exchange, the average gas price in August 2022 was PLN 1,105 per MWh, which is 421 percent higher than in August 2022. higher than a year earlier. In the same month, electricity cost PLN 1,391/MWh, i.e. 263% more than the previous month. more than a year earlier. This means, for example, a significant increase in the cost of production for industrial enterprises.
The most important decisions of the resolution:
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The government will help Polish energy-intensive enterprises in connection with the increase in energy and natural gas prices in 2022. Financial support will allow companies to maintain liquidity, profitability, jobs and production capacity.
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Enterprises with a sufficiently high share of energy and gas costs in the cost of products operating in the industries listed in the program will be eligible for assistance. These sectors have been identified by the European Commission as the most vulnerable to loss of competitiveness due to rising energy prices.
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The maximum amount of support will be 4 million euros per capital group or a company not included in the capital group. For companies that show a decrease in EBITDA of at least 40 percent. between 2021 and 2022 - or between the second half of these years - the upper limit of support will be 50 million euros. The exact amount of support will be calculated based on eligible costs according to the formula provided in the program.
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Assistance will be provided at the request of the company.
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It is assumed that about 1,000 enterprises will be able to receive support, most of which will be large companies.
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In total, the government will allocate more than 5 billion zł for the implementation of the program.
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Entrepreneurs entitled to purchase electricity at a fixed maximum price, in accordance with the Law of October 27, 2022 on emergency measures aimed at limiting electricity prices and supporting individual recipients in 2023, will only be able to apply for assistance when purchasing natural gas. costs.
Source: Wprost
