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Government working out solutions to mitigate energy and heat price increases

by Dignity News
The Polish government is analysing solutions to significantly broaden the package of measures to mitigate the effects of the price hike in energy and heat. The situation in the energy sector was one of the topics of the Council of Ministers’ meeting.

The ‘Dziennik Gazeta Prawna’ (DGP) reports that on the one hand, this involves allowances for further types of fuel other than coal and the preparation of a system of subsidies for heating plants. On the other hand, the option of freezing tariffs for energy and gas is also under serious consideration.

The president of the Polish Energy Group, Wojciech Dąbrowski, has announced that he will not be submitting a proposal to increase electricity tariffs for next year. Tariffs can be frozen in two ways. Either by a decision of the President of the Energy Regulatory Office, or by adopting a law setting price levels and offering compensation to companies.

The measures prepared by the government are to be worked out in the coming weeks – so that they can enter the Sejm in September, for a session planned for 14-16 September.

Calculations reached by DGP show that freezing gas prices only for households would cost the budget PLN 23 bln (paid in compensation to suppliers). In the case of electricity, it is PLN 13 billion. As the newspaper writes, the possible extension of these solutions to small and medium-sized companies, which is also being analysed by the government, will mean an additional expenditure of PLN 36 billion.

According to information obtained by DGP, it is possible that already at today’s (2 August) meeting of the government it will adopt a draft law assuming subsidies for the purchase of fuel by Polish heating plants to mitigate price increases for end users. Government estimates say that heating a 55 sq m flat this year will cost PLN 1582. The forecast for next year already says about 2028 PLN.

Adrian Andrzejewski

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