Solidarity contribution. The government wants to introduce a new fee for the coal sector, reaction to the Warsaw Stock Exchange

On Friday morning, the list of legislative works of the Council of Ministers included information about the planned draft act amending the act on special solutions for the protection of electricity consumers in 2023 in connection with the situation on the electricity market and certain other acts. The Ministry of Climate and Environment is responsible for preparing the solutions.

The draft regulation assumes the introduction of a solidarity contribution system for large entities from the coal sector in 2023, the information reads. The system is to consist in “implementing a mechanism for determining entities that received unjustified excessive income in 2022, in relation to the EU classification described in EU Council Regulation No. 2022/1854” and “the obligation to pay the Price Difference Payment Fund of excess income earned in 2022 as a result of operating in the coal sector”.

The planned date of adoption of the project by the government is the third quarter of 2023.

The introduction of the solidarity contribution “for large entities from the coal sector” met with investors’ reaction.

JSW shares listed on the Warsaw Stock Exchange on Friday around 12:30 p.m. fell by nearly 5 percent. Marcin Mierzwa, an analyst at stooq.pl, wrote in a comment about the “government” shot in the knee at JSW’s share price.

As he pointed out, the information about the work on the solidarity contribution brought JSW’s exchange rate “in a few minutes to the level of about PLN 36”. “If JSW’s share price remains below the level of PLN 38.5 today, from the point of view of technical analysis, the way to a fall to the zone of PLN 32-33 will be opened. This is the second ‘information blow’ for JSW’s share price in a month ” – pointed out the analyst.