The structure of electricity production in Poland has not changed dramatically recently. Approximately 93% of electricity is currently produced from coal and lignite. Environmental charges have a significantly impact on costs of production. This paper analyses the impact of environmental charges influenced by coal quality on the production cost of power generation. A simulation of the impact of coal quality (Q, A, S) on the environmental charges was carried out. The study was extended by the analysis based on improved relationship between coal quality and emission charges. The calculations included also charges related to the NOx, CO and CO2. The results are presented per 1 ton of coal burned and per 1 MWh of electricity produced.