Energy Prices and Proposals in Poland: Government Plans and Reactions

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We promised voters that anyone breaking the law would be held accountable, said Paulina Hennig-Kloska, the Minister of Climate and Environment, addressing Polsat News. She referred to the actions taken by services at Zbigniew Ziobro’s residence to illustrate the point.

She stressed that society expects accountability and that the rule of law requires clear responses. She added that opponents who claim to have clean hands should not fear scrutiny and will defend their cases in court.

Action on energy prices

The government plans to review the energy price package after the Christmas holidays, the minister announced. Aid for those most in need would come in the form of energy vouchers. One option would extend support to about 3.5 million households.

Currently, energy, gas, and heat prices are frozen under anti-inflation shields introduced by the previous administration; these provisions expire mid-year.

Prices after adjustment will be acceptable to most households, with energy vouchers available for those who need additional help. The minister noted an income criterion will apply when issuing the vouchers, calculated per person in a household and with extra bonuses for single-person families, particularly seniors who spend a large share of income on heat and power. The budget will determine the scale of aid.

She emphasized that the government would make decisions based on what is affordable. Two options are under consideration. The basic variant would provide social assistance to 3.5 million households and would involve a one-time voucher payment.

Regarding pricing itself, the administration proposed new tariff calculations to lower energy and gas costs as the fuel market stabilizes, even though new gas tariffs appeared earlier in the year.

The draft laws are slated for submission to the government in early April with a goal to complete the legislative process by mid-May. At the start of April, the wind farm law is expected to enter inter-ministerial consultations as discussions near completion. The plan would set a 500-meter buffer to protect future onshore wind development, acknowledging wind energy as a critical, underrepresented part of the national energy balance.

Help for energy companies

Hennig-Kloska also noted that a draft law on prosumers and support for energy companies undergoing transformation has been added to the government’s legislative agenda. The ministry is awaiting formal entry into force.

In late 2023, a law was adopted to maintain current protections for electricity, gas, and heat consumers through the first half of 2024. The regulations included caps on electricity prices for households and small to medium-sized businesses, with a ceiling of PLN 412 per megawatt-hour staying in place up to a defined consumption threshold.

At the end of November the year prior, MPs from Polski2050-TD and KO proposed amendments to extend the electricity price freeze through June 30, 2024, and to liberalize some aspects of wind farm development. The proposal also sought to widen the catalog of strategic investments to include wind farms, potentially removing the need to assess alignment with local spatial plans. PiS politicians criticized the proposal.

READ ALSO: Tusk stirs debate again: it concerns the Public Prosecution Service tackling dishonest politicians, a topic recently seen the other way around. (Polsat News report) [source attribution: Polsat News]

mly/PAP/Polsat News

Source: wPolityce

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