MOT AND KW CALLED ON THE CARPET IN BRUSSELS

Energy groups managed to survive the pressure that Ministry of Treasury has being putting on them for the last couple weeks and appears that after all Nowa Kompania Węglowa will be established using public funds. 3 and a half weeks before the deadline, Krzysztof Sędzikowski (CEO of KW) and Wojciech Kowalczyk (MoT, responsible for coal mining sector restructuring) are heading to Brussels to discuss the fragile subject of public aid that will be handed over to Silesian producer.

Both gentlemen, according to the industry rumors, were suppose to resign from their positions last week and both denied of doing so. Tomorrow (8.09) they will be meeting in EU capital to find out how the European Commission’s land lies on the subject.

According to the new plan, NKW would be financed by three entities: Węglokoks, Polish Enterprises Investment Fund (FIPP) and TF Silesia. Although it sound solid, the main problem might be with the cash. Before the new strategy was announced, some energy groups were declaring help by moving some assets to the NKW, but MoT rejected the offers since the cash is the only thing that matters at the moment.

It seems like getting the 1.5 billion PLN that NKW officially needs for establishing the operations for 2016 is a mission impossible. Some unofficial speculations suggest that Ministry together with its agencies would try to maneuver a bit with the state owned companies and funds, but in the end NKW can count only for cash injection of little more that a half what it actually needs. At the beginning of December, Miner’s Day benefits would cost NKW around 300 million, which means that actually at the moment Nowa Kompania Węglowa would start with only 0.5 billion PLN.

One third of what NKW demands would allow it to conduct all operations until January (best case scenario). What would happen next would probably be a thorn in new political crew’s side. Still, to survive until the October’s election, Sędzikowski and Kowalczyk have to placate the European Union, which is now looking disapprovingly at the new President’s recent declarations of Poland standing still behind its coal based fuel mix.

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