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What goes on in Poland on the 2nd of February.
The Prime Minister promises weapons and criticizes Nord Stream 2 in Kiev
During his visit to Kiev, Prime Minister Mateusz Morawiecki talked about the scope of military aid for the Armed Forces of Ukraine from Poland. This is the first visit of a Polish Prime Minister to Ukraine in seven years. He criticized Nord Stream 2 and talked about a new Polish-Ukrainian gas pipeline.
The promised military aid will include tens of thousands of ammunition of various caliber (artillery, anti-aircraft and shooting), GROM launchers and anti-aircraft missiles, light mortars and unmanned aerial vehicles. The prime minister did not mention the specific numbers of equipment and its type. It has been indicated that it was Ukraine’s turn to decide what specific equipment and weapons it needed.
Morawiecki also talked about threats in the field of energy and supplies, including gas. The Prime Minister said that Poland was already helping with gas supplies and has signed an agreement with Ukraine on the transfer of gas from the West to the East.
“But we talked with the prime minister about expanding the capacity as soon as possible, building a gas pipeline that would be able to pump large volumes of gas in the near future,” he added. It is worth recalling that discussions are underway on the construction of a new Poland-Ukraine gas pipeline that could constitute another supply route.
In the context of gas, the head of the Polish government also referred to Nord Stream 2, which, in his opinion, “is a powerful threat to peace throughout Europe.”
Brussels responds to Poland: Blaming the EU for rising energy prices is a mistake
According to EU officials, climate policy is responsible for a 20 percent increase in energy prices in Poland. This is a response to the information campaign of energy companies. “This is a misinterpretation of the data. Such a message can confuse energy consumers,” says a source in Brussels.
The 60 percent of manufacturing costs do not translate into a 60 percent increase in energy prices. Even if the prices of the increase in CO2 emission allowances in December 2021 were record high, they did not translate into higher energy prices. Another element of the energy price is network costs in 32 percent. Poland is one of the largest beneficiaries of EU funds and therefore this share is lower than it would be without them. The third component is taxes and charges that account for 46 percent of energy costs in Poland. Poles have fees to promote renewable sources (12 percent of all loads) and a capacity fee from the capacity market.
“You cannot confuse the cost of cotton with the final price of clothing,” explains the source in Brussels. According to them, the price of CO2 emission allowances translates into about 20 percent of the energy price on the power bills in Poland. The wholesale price is 32 percent of that price. The last quarter of 2021 saw a significant increase in energy prices due to greater global energy demand as well as higher gas prices. Production from emission sources increased and CO2 emission allowances went up as well.
The EU ETS emissions trading system provides funds for the energy transition, including the protection of the most vulnerable customers against the increase in energy prices in defense against energy poverty. “In the European Union there are over 30 million citizens considered to be in a state of energy poverty and this problem has been going on for many years in many countries,” the source emphasized. “We need structural solutions from the European Commission, Member States and local governments,” explains the source in Brussels. “Poland can use funds to fight energy poverty. It can support bills, but it can also reduce taxes and other burdens. It remains to be decided whether the Member States want to invest in reducing energy consumption through thermal modernization and other investments of this type,” they add.
