PGNiG may need state aid. It is about billions of zlotys

The draft law adopted by the government on Tuesday, January 11, excluding an increase in gas prices and tariffs this year means that the state will most likely have to financially support Polskie Górnictwo Naftowe i Gazownictwo. The aid may amount to even several billion zlotys.

  • The gas prices in the tariffs do not cover the actual value of the raw material.
  • PGNiG cannot count on a price increase this year.
  • The state is giving the company a helping hand.

Why could PGNiG count on help? Let’s start with last year’s gas price increases. For tariff customers, they ranged from 41 to 58 percent. However, from the point of view of PGNiG, this is not much! Non-tariff customers receive new price lists, in which they have to pay up to several hundred percent more for gas.

Also read: We will pay 41-58 percent more for gas.

– The problem is that such increases should also receive other gas customers, including tariff customers. Otherwise, PGNiG will have a problem – an analyst who asked for anonymity told us in December when the tariffs were announced.

What’s the thing? Although tariff customers consume relatively small amounts of gas, due to their number – over 6 million – it is billions of cubic meters of gas per year.

Meanwhile, even after the increases, they will pay for it below the market price. In practice, this means that the differences in the market price of gas will be covered by PGNiG.

Moreover, in accordance with the adopted bill, by the end of 2023, tariff protection will be covered, inter alia, by hospitals, schools, nurseries, kindergartens and orphanages. This means that these institutions will pay for gas at the same rates as individual consumers.

– The draft provides that the prices of gaseous fuels will be frozen at the level of the prices included in the tariff of the last resort supplier, set for the period from January 1 to December 31, 2022. This price is a maximum price, which means that for customers who previously concluded an agreement with a supplier that foresees a lower price, the lower price is applied until the expiry of the contract – emphasizes the Government Information Center.

As emphasized by CIR, the proposed solutions exclude the possibility of increasing the prices and tariff rates of gaseous fuel in 2022. percent income.

This is terrible news for PGNiG. They mean that this company will bear a significant part of the cost of expensive gas.

In the worst scenario – that is, the still very high gas prices – it could happen that PGNiG will have liquidity problems.

– For political reasons, the scale of the December increase in gas prices, although significant, did not meet the actual needs of PGNiG – emphasized our interlocutor.

Hence, for gas sellers who sell to tariff customers, the government has prepared a compensation system at the level of approx. PLN 10 billion. Most of them would go to PGNiG. – Moreover, the State Treasury will guarantee the obligations of the gas fuel supplier from the gas fuel office due to bonds or loans incurred on the domestic or foreign market until January 1, 2026 – indicated the CIR.

In total, according to our interlocutor’s estimates, state aid for PGNiG may amount to up to PLN 18 billion in various forms. Of course, its scale will depend on how gas prices will develop this year.

The aid itself would not be easy to implement either. It should be remembered that the European Commission would certainly be interested in this matter.

About Eric Wilson

The variety offered by video games never ceases to amaze him. He loves OutRun's drifting as well as the contemplative walks of Dear Esther. Immersing himself in other worlds is an incomparable feeling for him: he understood it by playing for the first time in Shenmue.

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