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Power engineering. The government wants coal companies to pay a solidarity contribution

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Excess income of coal companies will be charged with a solidarity contribution of 33 percent. The funds will be used to finance the reduction of electricity prices for households and sensitive entities, the Prime Minister’s office announced on Monday.

The communiqué stated that excess income is income that exceeds 120 percent of average income earned in the previous 4 years. As reported, the government wants large coal companies to share excess profits and partially finance the reduction electricity prices for citizens.

Solidarity contribution for companies

“Entities that mine, produce or trade coal will pay a solidarity contribution from extraordinary profits obtained in 2022.” – it was written.

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“The funds from the extraordinary profits of coal companies will be used to partially finance the reduction of electricity prices for households and sensitive entities” – added.

On Monday, the government adopted an amendment to the Act on the Protection of Electricity Consumers in 2023, which will introduce, among others, higher electricity consumption limits at frozen prices. The SME sector, local governments and some public utilities will pay less for electricity.

Energy consumption limits

In accordance with the solutions adopted by the government, the electricity consumption limit for households will increase this year from 2,000 to 3,000 kWh. For families with a disabled person, this limit increases to 3600 kWh, and for farmers and holders of the Large Family Card to 4000 kWh.

From October 1, 2023, the maximum price for energy will be reduced from PLN 785/MWh to PLN 693/MWh.

Main photo source: Shutterstock

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