The latest report from Poland’s Office of Competition and Consumer Protection shows that 2013 state aid in the country exceeded 20 billion pln, with regional aid contributing the most.

The President of the UOKiK is responsible for monitoring state aid and for preparing an annual report. According to the latest one, in 2013 the total value of aid reached 20.62 bn zł. This is lower than the 21.80 bn zł granted in 2012. The total includes aid to the transport sector, which reached 4.05 bn zł, roughly 300 million more than a year earlier. Of the 2013 total, 57 percent went to railway companies. The analysis of the aid presented in the report and the press note did not include the aid provided in the transport sector.

As in previous years, tax breaks and subsidies were the most commonly used form of aid, constituting 97.8 percent of the total aid.

Among the institutions providing aid in 2013, the biggest contribution, at 3.23 bn zl, came from the President of the State Fund for the Rehabilitation of the Disabled (PFRON). It was used almost entirely to finance the remuneration of disabled persons. The President of the Polish Agency for Enterprise Development contributed 2.72 bn zł while voivodship marshals distributed 2.48 bn zł (in 2012 - 2.52 bn zł). The Minister of Economy granted 0.75 bn zł less in aid than it did in 2012 (1.33 vs 2.08 bn zł).

4.99 bn zł was distributed as horizontal aid, 820 million less than in 2012. The largest amounts went to employment efforts (3.37 bn zł vs 3.07 bn zł in 2012), research & development work (0.93 bn zł vs 1.27 bn zł), and training (0.40 bn zł vs 0.44 bn zł). Aid for environmental protection saw the largest decrease, from 0.28 bn zł in 2012 to 0.04 in 2013).

Sector aid also decreased to 1.71 bn zł from 3.09 in 2012. The biggest decrease was to aid in the energy sector due to voluntary termination of long-term agreements for the sale of power and electric energy. Aid granted to entities operating in the gas sector was 0.47 bn zł, with the largest amount committed to construction of the regasification terminal for the Polskie LNG company, a liquefied natural gas terminal company (0.27 bn zł). The mining sector aid was granted 0.39 bn zł, with the the largest beneficiary being Spółka Restrukturyzacji Kopalń, a mine restructuring company (0.37 bn zł).

The value of the regional aid came in at 9 billion zł, 750 million more than in 2012. The increase is mostly the result of more funds going to support new investments. The President of the Polish Agency for Enterprise Development, voivodship marshals, and the tax authorities were the leading aid providers. The three provided, 2.6, 2.4, and 1.33 billion zł, respectively.

Aid by voivodships

The biggest average value of aid per one registered entrepreneur was given in the Subcarpathian voivodship - 8.8 th zł, and then in the Łódz voivodship - 6 th zł, Silesia - 5.5 th zł and the Lubusz and Warmian-Masurian provinces - 4.5 th zł, each. The lowest value of aid per one entrepreneur was given to entrepreneurs from the Opole - 2.3 th zł, and the West Pomeranian and Lesser Poland voivodships - 2.9 th zł each.

Aid by beneficiaries

In 2013, large enterprises received 40 percent of the total aid (6.5 bn zł), a decline from 2012 when they garnered more than half of the funds. Medium-sized enterprises were given about 4.34 bn zł (26.2 percent of the total aid value), small enterprises received 3.43 bn zł (20.7 percent), and micro enterprises 2.29 bn zł (13.8 percent).

The biggest beneficiaries of aid, both rail transport companies, were the Przewozy Regionalne company, which received 960 million zł, and the carrier PKP Intercity, granted 0.60 bn zł. These were followed by two companies involved in mining and energy: Spółka Restrukturyzacji Kopalń (0.37 bn zł) and PGE Górnictwo i Energetyka Konwencjonalna (0.32 bn zł) and Telewizja Polska (0.28 bn zł), Polish public broadcasting corporation.

Reporting

Pursuant to the law, the aid providing entities are required to report to the UOKiK President the aid they provide or information on a refusal to provide aid within a given reporting period. This should be done using the SHRIMP application (the abbreviation stands for the System of Aid Scheduling, Reporting and Monitoring). SHRIMP allows the entity which provides the aid to enter aid information directly in the online mode.

Additional information for the media:

Małgorzata Cieloch, Spokesperson for the UOKiK
Plac Powstańców Warszawy 1
00-950 Warsaw, Poland
Phone: +48 22 827 28 92, +48 22  55 60 106, +48 22 55 60 314
Fax: +48 22 826 11 86
E-mail: [SCODE]bWFsZ29yemF0YS5jaWVsb2NoQHVva2lrLmdvdi5wbA==[ECODE]