Today the Sejm passed a law freezing household electricity prices at PLN 500 per MWh net until the end of September 2025. Local authorities and public utilities will also have frozen energy prices until the end of March next year.
412 MPs voted in favor of adopting the law, three were against and 14 abstained. The bill now goes to the Senate for consideration.
The amendment to the Law on Emergency Measures, aimed at limiting electricity prices and supporting certain consumers in 2023 and 2024, and certain other laws, primarily provides for maintaining the maximum electricity price at PLN 500 per MWh net until end of September 2025 for households.
Amendment concerning local authorities
During the parliamentary work, an amendment to the project was introduced which stipulates that local government units and sensitive entities can benefit from the maximum price of PLN 693 per MWh net, but only until the end of March 2025. This solution will cost an amount of PLN 693 per MWh net . another PLN 150 million, for which he agreed with the government.
The law also stipulates that electricity sellers must ex officio submit applications to the Chairman of the Energy Regulation Bureau before April 30, 2025 to change their tariffs, valid until the end of 2025. If the trading company required to do so does not submit it. Upon application, payment will be of compensation for the sale of energy below the tariff price is suspended.
Capacity compensation
The new regulations also provide for the extension until mid-2025 of the exemption from the capacity fee for customers who purchase electricity for their own use from consumption points with a voltage of up to 1 kV. These recipients are mainly households.
When the capacity fee was suspended in mid-2024, it ranged from PLN 2.66 to PLN 14.9 net per month, depending on the energy consumption in a given household. The capacity payment goes to transport company PSE. The law stipulates that PSE will receive compensation from the COVID-19 fund.
The government estimated the cost of protective solutions for households until September 30, 2025 at PLN 3.732 billion, including another PLN 150 million for local authorities and public utilities, and another PLN 398 million in 2026 for the subsequent settlement of compensation. In total it amounts to PLN 3.98 billion. The cost of suspending the capacity fee until mid-2025 was calculated at PLN 1.476 billion. In total, the entire intervention will cost just over PLN 5.6 billion.
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Source: wPolityce
Emma Matthew is a political analyst for “Social Bites”. With a keen understanding of the inner workings of government and a passion for politics, she provides insightful and informative coverage of the latest political developments.