Polish energy policy resists Russian blackmail

The influential Polish weekly magazine "Gazeta Polska" published in its latest issue for November 2-8, 2022, an analytical article entitled "Should energy be expensive?".

The article states that the energy crisis in Europe is a consequence of russian blackmail connected with the aggression against Ukraine. The Kremlin, acting purposefully and deliberately, is trying to destabilize the West, cause chaos and turn the public opinion of European countries against Ukraine.

The article states that even before the war in Ukraine, Gazprom began to gradually reduce the amount of natural gas supplied to European consumers. If in August 2021 the volume of gas from russia to the EU amounted to about 400M cubic meters per day, then in late July 2022 it fell to 100M cubic meters, which triggered  a sharp increase in prices for this product.

It is noted that, fortunately, Poland had began to introduce a policy of diversification of gas sources long before the Russian attack on Ukraine. Turning to many gas suppliers, Poland ensured its energy independence from russia. Back in 2015, when the Law and Justice party took power in Poland, the percentage of russian gas in Polish imports reached 90%. The government made a decision on independence from russian raw materials. Reverse mergers with the Czech Republic, Slovakia, and Germany were implemented. Gasoline was built from Norway to the Danish and Polish markets (the so-called Baltik Pipe). This makes it possible to supply up to 2.4B cubic meters per year. Further contracts provide Poland with natural gas and make it possible to completely stop importing russian gas.

At the same time, the article states that, in addition to the war in Ukraine and moscow's actions, the rise in energy prices is influenced by the policies of the European Union, in particular the greenhouse gas emissions trading system to prevent climate change. What started as a regional system ended up with a sharp rise in energy prices for countries like Poland that had a high level of coal use in their energy balance and were just beginning their energy transformation.           

Poland is opposing the EU policy and the artificial increase in CO2 emission trading prices, as poor countries become poorer and rich countries become richer.

The article gives an example: the richest 1% of humanity is responsible for 17% of global CO2 emissions, while the EU produces 8% of global emissions only.

Poland is calling for an end to the barbaric trading of CO2 emissions.

The Polish government is trying to introduce such legal changes in regulatory policy so that to assure citizens of lower electricity prices. Self-government bodies, hospitals, schools, small and medium-sized companies will pay for energy at a level close to pre-war. Additional payments for the purchase of coal will be a great support for Polish households.

The Seimas has adopted a resolution on electricity price cap. "This resolution is another government response to the geopolitical situation, the energy crisis caused by the russian aggression against Ukraine. This will be real support for Polish households," Minister Anna Moskwa says.

According to the previously adopted resolution of the Seimas, signed by the President of the Republic of Poland, electricity prices will be frozen in 2023. 17  million Polish households will benefit from this benefit, for which the government has allocated 23B zlotys.

Jerzy Slonevskyi, IMF columnist