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Increase in electricity prices. Politicians tone down their emotions

Wzrost cen prądu. Politycy tonują emocje

MP Monika Pawłowska appealed to the Minister of Climate and Environment regarding the drastic increases in energy and gas prices.

From July 1, we will see a wave of gigantic price increases for energy, gas, water…?

The MP writes in her interpellation:

" We are receiving disturbing information that prices for electricity, natural gas and district heating will increase by up to 80%. The government reassured us that we are not threatened with such large increases. It explained that a longer freezing of electricity prices is not necessary, that prices on the markets are currently lower than before the energy crisis, and electricity bills should not increase by more than PLN 30 after July 1. Meanwhile, from July 1, electricity prices for households, according to the proposal of Donald Tusk's government, are to be PLN 500 per MWh. Citizen's initiative "Stop the increases from July" proposes PLN 412 per MWh. However, the government proposes electricity for entrepreneurs and local governments at PLN 693 per MWh. The "Stop price increases from July" initiative wants the price for companies and local governments to be PLN 500 per MWh Donald Tusk's government assumes increases of over 30% in electricity prices. Everything indicates that from July 1 we will see a wave of gigantic price increases for energy, gas, water and sewage," points out MP Monika Pawłowska.

Let us remind you that from April 1 there is no zero VAT on food, which has led to an increase in food prices. Fuel prices are also getting higher. Gas prices are also to increase from July 1.

– The KO, Third Way and Left government offers gas at a price of PLN 290.97 per MWh. The social civic initiative assumes maintaining gas prices at PLN 200.17 per MWh. More expensive electricity always equals expensive food. Protect the weakest and most needy – appeals the MP.

What does the government respond to these appeals?

What will real electricity prices be in the second half of 2024?

Miłosz Motyka, Undersecretary of State at the Ministry of Climate and Environment, reassures the MP. He reports that currently the situation on the electricity market is better than in December last year, and both the so-called prices in spot transactions and futures contracts.

The politician explains that the government is aware that electricity prices may still be too high for some consumers, which is why it adopted the Act on energy vouchers and amending certain acts in order to limit the prices of electricity, natural gas and district heating (Journal of Laws U. 2024, item 859), which entered into force on June 13 this year. Act
has introduced solutions that respond to the need to provide further support for energy consumers in the second half of 2024.
– Failure to introduce protective solutions would mean that from July 1, 2024, the price for electricity for households would increase from PLN 412 to PLN 739/MWh, and the total energy bill (including the costs of its distribution) would increase by approximately 68%. However, thanks to the support mechanisms included in the act, Poles will not experience a sharp increase in energy costs, it says.

Maximum electricity price in the second half of 2024.

In accordance with the protective solutions adopted by the Government of the Republic of Poland, the maximum price for household electricity consumers will drop in the second half of 2024 from PLN 693 to PLN 500/MWh and will be applied without a limit, i.e. from the first kWh consumed .

– Moreover, the observed drop in wholesale prices will allow for a significant reduction in tariffs for households (which will be enabled by the introduced regulations). We expect that the President of the Energy Regulatory Office will approve tariffs at a lower level than currently, which will reduce the amount of compensation for energy sellers and at the same time contribute to reducing the budget costs of the implemented solutions. Thanks to this support, the increase in electricity bills for all households will be much lower than in the absence of statutory intervention and will amount to approximately 25% compared to the first half of 2024, when prices were frozen at the level of 2022 – wrote the politician.

These solutions are addressed to all households, without exception, as well as to the SME and local government sectors.

Who is the energy voucher for? What thresholds?

On May 23, an energy voucher was introduced, i.e. a one-off cash benefit granted for the period from July 1 to December 31 this year.
It is estimated that approximately 3.5 million households will benefit from the energy voucher, i.e. approximately 28% of all households in Poland, including approximately 1.3-1.4 million households that are in energy poverty.

In the case of the introduced energy voucher, it was established that people with lower incomes will be able to benefit from such a benefit after meeting the criterion: up to PLN 2,500 in income for single-person households and up to PLN 1,700 per person in multi-person households.

An important issue regarding energy vouchers is the "one zloty for one zloty" principle, thanks to which, if someone exceeds the income threshold, they will not receive a negative decision, but the amount of the voucher will be reduced by the value of exceeding the indicated threshold.
The amount of the voucher will depend on the number of people in the household:
-PLN 300 for single-person households,
-PLN 400 for 2-3 persons,
-PLN 500 for 4-5 persons,
-600 PLN for 6 persons and larger.

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