The opposition’s bill to freeze energy prices has drawn sharp criticism for overlooking small and medium-sized businesses; Climate Minister Anna Łukaszewska-Trzeciakowska warned that such a move could push these enterprises out of the market entirely.
Energy prices and wind turbines – a split agenda
On November 28, lawmakers from Polska 2050-TD and KO submitted to the Sejm a draft amendment to the law supporting energy consumers. The proposal would extend the energy price freeze through June 30, 2024, while also placing limits on the development of power plants, wind farms, and wind turbines in Poland. The plan faced criticism from PiS politicians alike.
The initial reading of the KO, Polski 2050, and PSL bill was slated for the Sejm’s upcoming session.
Robert Biedroń, co-chair of the New Left, told TVN24 that the two strands would be treated separately: the wind-turbine legislation would become a stand-alone law, and the price-freeze measure would be considered at a later session.
“A six-month project”
According to Minister Łukaszewska-Trzeciakowska, the opposition’s bill is concise, comprehensive, and avoids dilution with narrow interests. It would give all energy consumers clarity about their bills for the next year, enabling households, small and medium-sized businesses, local authorities, sensitive institutions, schools, kindergartens, and orphanages to plan their budgets with certainty about energy, heating, and gas costs.
She spoke to Telewizja Trwam about the plan, noting that the opposing project is a temporary measure with a six-month horizon. She warned that six months brings still more ambiguity, and that rates could rise as the year progresses, a consequence she says would be harmful and unpredictable given recent volatile events.
“We will pay more for basic services”
The minister pointed out that the draft plan from the new parliamentary majority entirely omits small and medium-sized businesses. Hairdressers, small shops, tailors, car mechanics, and others would not benefit from the proposed protections. Without relief, these businesses might struggle to cover bills and could disappear from the economy. Higher energy costs would likely be passed on to customers, meaning people could end up paying more for a haircut, a repair, or a loaf of bread. The minister said changes to these provisions will be pursued.
Two intertwined projects
The opposing bill estimates that six months of protective measures would cost PLN 16.5 billion. It proposes extending the household price cap from PLN 412 per MWh net to mid-2024, and maintaining a higher ceiling of PLN 693 per MWh beyond the limit, applicable to local authorities and public utilities as well. The package also preserves mechanisms to reduce gas and heat prices and references the COVID-19 Fund as a potential financing source, alongside the gas contribution to the Price Difference Fund for 2022 and other reserves.
Meanwhile, the government’s own bill on energy consumer protection is set for its first Sejm reading and would extend current rules through 2024. It carries a projected cost of over PLN 31 billion, with PLN 25.5 billion in 2024 and PLN 5.6 billion in 2026, funded from the state budget. Officials noted that cost calculations assume possible tariff changes in 2024, as approved by the chair of the Energy Regulatory Office.
READ ALSO: Tusk’s coalition under scrutiny from business groups? Schreiber: Entrepreneurs are largely excluded from the freezing plan
Source notes: wPolityce