Coal allowance – a new form of support

24 August 2022 | Knowledge, News

Although the heating season will only start in a few months’ time, there is already a lot of talk about it in many homes today. Uncertainty and fluctuations in the energy market are raising concerns about whether it will be possible to keep warm in the autumn and coming winter.

What are the causes of the problems?

Problems with energy availability are commonly attributed to current events such as the Russian aggression in Ukraine. However, the conflict has only magnified and accelerated phenomena that were already on the horizon – e.g. problems arising from existing market models or the energy transition process, namely the volatility and increase of energy prices and the challenges of generating sufficient amounts of energy, due, for example, to the scarcity of fossil fuels, for which a reduction in extraction is being sought.

Coping with these challenges

State aid is subject to various restrictions, making it impossible to propose a financial support mechanism for businesses, and moreover would be extremely time-consuming and more difficult than providing assistance to individual consumers. Undoubtedly, these circumstances may underlie the recently introduced coal allowance.

What is the coal allowance?

This is a benefit of PLN 3,000 for applicable households, introduced by the Coal Allowance Act of 5 August 2022.

This benefit is available to households whose main source of heating is:

  • a solid fuel boiler,
  • fireplace,
  • freestanding stove,
  • air heater,
  • kitchen range,
  • cook stove,
  • coal cooker, or
  • solid fuel fired tiled stove,

– powered by solid fuels and registered or reported in the Central Emission Register of Buildings (CEEB).

Coal allowance – deadline for applications

Applications for the coal allowance can be made until 30 November 2022. The allowance should be paid up to one month from the date of application.

Importantly, the new law does not provide any way of verifying what the money from the coal allowance is actually used for, and so the funds do not have to be actually used to purchase coal and may be spent on basically anything.

The model application is set out in the Ordinance of the Minister of Climate and Environment of 16 August 2022 on the model application for the payment of the coal allowance (Journal of Laws, item 1712).

What about other sources of heat?

One of the most frequently raised objections to this solution is that other sources of heat in households, which are also affected by the inevitable price increases, have been overlooked. What’s more, thanks to programmes such as ‘Czyste Powietrze’ (Clean Air), many people have upgraded their heating systems, replacing coal-fired stoves with other, less emitting devices. And this, in the current legal environment, makes them ineligible for the coal allowance.

According to media reports, the government is currently working on supplementary arrangements, whereby support would also be provided for heat sources including:

  • pellets – in the amount of PLN 3,000.
  • chunk wood – PLN 1,000.
  • fuel oil – PLN 2,000.
  • LPG – PLN 500.

Is the coal allowance a good idea?

The proposed support has a number of drawbacks that make it questionable as to whether the coal allowance will have the intended effect. We share our detailed thoughts on the new allowance in an article prepared for @Stowarzyszenie „Z energią o prawie” (Association ‘With Energy about the Law’).

Source: @Stowarzyszenie „Z energią o prawie” (Association ‘With Energy about the Law’).
Date: 3 August 2022


K&P’s Energy Practice keeps abreast of energy market issues in Poland and around the world.

If you have any questions about the upcoming changes in law, contact us directly:

Wojciech Wrochna

Bartosz Brzyski

Latest Knowledge

Whistleblower bill back in the Sejm

On 23 May, the Sejm (the lower house of the Polish Parliament) passed a bill on the protection of whistleblowers. We summarise what has changed from the previous versions, what needs special attention and what amendments the Senate has made.

Belka tax cut and what this means for companies

The Minister of Finance has announced a plan to reduce the Belka tax, to come into effect on 1 January 2025. And although he has said that the groundwork is already being laid, he has not yet revealed all the details of the proposed changes.

Liability of management board members

The liability of management board members is a complex and multifaceted issue. It is therefore worth taking a closer look at these issues, especially in light of recent developments.

Effectively managing collective redundancies

The labour market is seeing an increased number of collective redundancies. We check what rules govern collective redundancies and what obligations must be fulfilled in order to carry them out effectively.

SME Fund – Tomasz Szambelan accredited IP Scan provider

Tomasz Szambelan has been included in the list of accredited IP Scan providers maintained by the Polish Patent Office. The IP Scan service is part of the grant scheme for the filing of trade marks, designs and inventions from the European SME Fund.

New rules for setting fines for businesses by the President of UOKiK

At the beginning of April 2024, the President of the Office of Competition and Consumer Protection (UOKiK) published new clarifications on the determination of the amount of fines in cases related to the conclusion of agreements restrictive of competition and the abuse of dominant position.

Contact us:

Wojciech Wrochna, LL.M.

Wojciech Wrochna, LL.M.

Partner, Head of Energy, Infrastructure & Environment Practices Group

+48 734 189 743