Poland’s new government has decided to postpone the implementation of the plan to separate state-owned utilities’ coal-fired power plants and merge them into a new state-run entity, without proposing an alternative strategy. Industry Minister Marzena Czarnecka indicated the government’s interest in acquiring coal assets from state-controlled power utilities, which led to a surge in their share prices. Czarnecka emphasized the need for any acquisition to align with coal supplies from Polish mines during an interview with TVP Info television. State-controlled utilities, facing declining profitability, have been pushing for a swift spin-off of their coal-fired power plants, particularly after Czarnecka’s previous statement suggesting mines should be linked to utilities. Following this announcement, shares of Poland’s major utility companies, PGE and Tauron, experienced notable increases in trading. Fitch Ratings previously warned of potential credit downgrades for Polish utilities unless the government presents an alternative to the previous administration’s plan for spinning off coal assets.
