Coal prices in the Polish market break records. Heat plants increase costs. Is this the reason for the high bills?

“We have record prices for Polish raw materials, although they are still lower than at ARA ports. Did this factor contribute to the increase in energy bills?” – asks Dziennik.pl. The portal cites an Instrat analysis, which notes that “it is not energy, but mining will become the main winner in the increase in electricity prices.”

According to the mentioned report Polish hard coal mines have negotiated an increase in selling prices by more than 40 percent. and high corrections for imported coal in previous months. In the reply sent to the Dziennik.pl portal, Polska Grupa Górnicza writes about the campaign against the local mining industry and adds that it offers cheaper coal for Poland’s power and heating sectors.

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As Anna Senderowicz of PKO BP notes, since the beginning of the year, coal prices on the Polish market have been steadily increasing, but the growth dynamics have been lower compared to world markets. This is a result of local suppliers renegotiating previously concluded contracts and increasing the share of imported raw materials in the supply of energy producers. In her view, this will increase the operating costs of electricity and heat producers.

“This is a particular problem for heating plants, which have been running on the edge of profitability for years. More expensive coal will also hurt the margins of the power plants supplied with it” – wrote Dziennik.pl.

The lower price of heat will apply to the so-called qualified customers, that is, when the heat is intended for residential purposes and public utilities. Tariffs calculated by companies and approved by the ERO Head will continue to be approved after administrative procedures in accordance with applicable regulations.