The latest report of the Office of Competition and Consumer Protection revealed that the amount of state aid granted in 2010 exceeded PLN 24 billion. Mostly the funds were awarded to undertakings from Mazowieckie, Śląskie and Łódzkie voivodeships

The President of UOKiK takes responsibility for state aid monitoring and drawing up the annual report. According to the latest report, the total value of aid granted in 2010 was PLN 24.09 billion, compared to PLN 19.17 billion in the preceding year. In 2010 nearly PLN 3 billion constituted the aid granted to transport. According to criteria applied by the European Commission, the analyses of granted aid are carried out with the exclusion of transport sector. Most common form of assistance were (similarly to the years 2005-2009) tax concessions and grants (91.3 percent of aid value excluding aid in transport).

Among the institutions providing aid in the preceding year, marshals of voivodeships ranked first – they provided support in the amount of PLN 4.66 billion, i.e. over PLN 1 billion more than in 2009. Subsequent positions are occupied by the Chief Executive Officer of the Polish Agency for Enterprise Development (PLN 3.28 billion) and the Chairman of Supervisory Board of the State Fund for Rehabilitation of Disabled Persons (PLN 2.86 billion). It should be emhasized that the aid granted in 2010 by the Minister of Economy increased over 80 percent compared to the preceding year (nearly PLN 2 billion). For the first time the aid (PLN 1.18 billion) was granted by the Director of Instytut Nafty i Gazu (the Oil and Gas Institute) to entities operating in natural gas sector.

Over PLN 6.22 billion was distributed under the horizontal aid, compared to PLN 5.37 billion the previous year. Greatest amounts were allocated to employment (increase form PLN 2.79 billion in 2009 to PLN 2.98 billion in 2010), environmental protection (increase form PLN 1.37 billion to PLN 1.48 billion), R&D (increase form PLN 335.4 mln to PLN 517.7 mln). There was decrease in value of aid for trainings – form PLN 671.6 mln in 2009 to PLN 446,7 mln the following year.

Regarding the sectoral aid, the funds increased from PLN 2.66 billion in 2009 to PLN 3.39 billion in the following year. The highest support was granted to energy companies as a compensation for their voluntary termination of long-term agreements on power and electric energy sale (PLN 1.30 billion). In 2010 the aid was for the first time granted to undertakings operating in the sector of natural gas (PLN 1.18 billion).

The value of regional aid totalled PLN 10.72 billion, a year before – PLN 7.75 billion. Most of these resources – PLN 4.4 billion – was allocated by the marshals of voivodeships. The Chief Executive Officer of the Polish Agency for Enterprise Development (PARP) earmarked PLN 2.82 billion for entrepreneurs for research, counseling and trainings. The Minister of Economy assumed PLN 1.07 billion to support investments in the production of electric energy or heat from renewable sources of energy as well as for investments of paramount importance for the economy.

Aid and voivodeships

The entrepreneurs from Mazowieckie (PLN 4.77 billion), Śląskie (PLN 3.16 billion) and Łódzkie (PLN 1.63 billion) were in the lead. The smallest support was granted to entrepreneurs from the following voivodeships: Lubuskie (PLN 499.8 mln), Podlaskie (PLN 478.7 mln) and Świętokrzyskie (PLN 468.2 mln). The highest increase in aid granted was recorded in Zachodniopomorskie voivodeship, where it increased twofold – from PLN 401.5 mln in 2009 to PLN 904.9 mln a year later.

Aid and beneficiaries

The biggest aid beneficiary (including the the aid in transport sector) was the biofuel producer, PKN Orlen (PLN 906.8 mln). The railway company Przewozy Regionalne ranked second with PLN 905.6 million. Next in line are PGNiG – PLN 606 mln, Operator Gazociągów Przesyłowych Gaz-System – PLN 577 mln, PKP Intercity – PLN 432.7 mln, Grupa Lotos (biofuel producer) – PLN 391.7 mln and Południowy Koncern Energetyczny – PLN 386.8 mln.

In 2010 large businesses were the beneficiaries of about half of aid granted. Support for entities with strong market position may pose a greater risk of distortion of competition than in the case of small and medium-sized enterprises. For this reason UOKiK is concerned about great amounts of aid granted to large businesses. Last years it showed a steady growth from 50.9 percent in 2008, 53.9 percent in 2009 to 55.1 percent in 2010. The positive fact is that private enterprises benefited from the greatest support – ca. 70 percent of the total aid. State-owned enterprises, sole shareholder companies of the Treasury and local government units received in total only 8.3 percent of the total value of state aid. This is a good trend as private entities ensure a better use of resources.

New aid schemes and more effective exploitation of the already existing ones cause that each year the value of aid granted to undertakings is growing steadily. In 2010 there were 145 aid schemes – 850 bodies granted aid to 90 thousand beneficiaries.

Additional information for the media:
Małgorzata Cieloch, Spokesperson for UOKiK
Department of International Relations and Communication
Pl. Powstańców Warszawy 1, 00-950 Warszawa
Tel. +48 22 827 28 92, 55 60 106, 55 60 430
faks +48 22 826 11 86
E-mail: malgorzata.cieloch@uokik.gov.pl