Euroil: Poland shields small businesses from gas price spike

Poland has slashed gas prices for small businesses in an effort to shield them from the energy crisis unfolding across Europe.

Consumers across the continent face higher gas and power bills this year, following a sharp rebound in demand as coronavirus (COVID-19) restrictions have been eased. A number of business groups in Poland have warned that some of their members may have to wind down their operations or file for bankruptcy this year as a result.

On order of the government, Poland’s national gas company PGNiG announced on January 14 it would cut gas prices for small businesses by a quarter, as part of a series of measures to support vulnerable energy consumers. The cut will apply until the end of February.

“I ordered PGNiG to take steps that will reduce gas prices by a fourth for business customers, e.g. bakeries, hairdressers, service premises,” Polish State Assets Minister Jacek Sasin reported on social media.

Warsaw has also introduced a new law to protect public institutions such as hospitals from the gas price spike. 

Poland generates the bulk of its electricity and heat from coal, but under its latest strategy it is carving out a greater role for natural gas. In past years, gas has outcompeted coal in Europe, partly as a result of higher carbon costs, while it also produces fewer emissions. But higher gas prices this year have at times reversed the situation.

Poland gets most of its gas from Russia, but also relies on LNG imports, domestic production and other sources to meet demand.

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