Polish government, unions sign social contract on power plants overhaul

Energa S A

22/12/2022 12:23

WARSAW, Dec 22 (Reuters) - The Polish government and
trade unions signed a contract guaranteeing terms of employment
for tens of thousands of workers at utilities and lignite mines,
a milestone in a planned overhaul of one of Europe's most
coal-dependent energy sectors.
    Poland plants to spin off state-owned utilities' coal-fired
power plants to a new state-owned company, NABE, making it
easier for Warsaw to focus on green energy, as many banks stay
clear of financing coal-dependent companies.
    The process, initially set to be completed earlier this
year, has been delayed several times amid negotiations with
trade unions that took 18 months, and due diligence over the
assets to be spun off.
    "Today we have overcome the biggest hurdle to the process.
We are speeding up energy transformation, while fostering job
security of tens of thousands of people working in the
industry," Deputy Prime Minister Jacek Sasin told a news
briefing.  
    Poland generates more than 70% of its electricity from
highly polluting coal, but plans to boost its emissions-free
generation by developing nuclear power and renewables.
    The transfer of the assets is now expected to be completed
in the first quarter of 2023. NABE may employ as much as 20,000
workers from state-controlled utilities that manage over 70 coal
fired power units.
 (Reporting by Marek Strzelecki
Editing by Peter Graff)
 ((Marek.Strzelecki@thomsonreuters.com;))