Wholesale electricity prices in Poland increased by 90% in the year to September and have hit their highest level in at least two decades. Amid a global energy crisis and rising prices across Europe, Poland has also ramped up its exports of electricity to the highest level in 15 years.
The wholesale price of electricity on Warsaw’s power exchange (TGE) reached an average of 465.70 zloty per MWh in September, reports WysokieNapiecie, an energy news service. The peak price was 495,33 zloty per MWh.
Wholesale electricity prices in Poland between 2000 and 2021
September’s average figure was almost double that recorded a year ago, when it stood at 243.90 zł/MWh, as well as more than triple the April 2021 price of 150 zł/MWh, when demand had dropped during the lockdown.
The record figure in September follows months of steady increases and further hikes are expected. Deliveries for 2022-2025 are currently priced at 400/MWh on average.
The Energy Regulatory Office (URE), a state agency, has in past days decided to raise a power levy paid by wholesale electricity buyers during peak hours from 76.20 zloty to 102.60 zloty.
Coal stockpiles grow in Poland amid lockdown, rising electricity imports and shift to cleaner energy
Prices, however, remain lower than in many European countries, where they reached as high as 1,000 zloty per MWh in early October. The increase has been driven by a worldwide squeeze on gas supplies and compounded in Europe by rising prices of carbon permits under the EU’s emissions trading scheme.
As a result, Poland has been exporting electricity at its highest level in 15 years, at 825 GWh net, according to early estimates based on data from grid operator PSE. This is in turn further driving domestic price rises, reports WysokieNapiecie.
W Niemczech, Niderlandach, Belgii, Austrii, Włoszech, Słowenii i Chorwacji cena MWh energii elektrycznej z dostawną na jutro przebiła 300 euro.
300 EURO!!! (ok. 1400 zł)
This is Sparta pic.twitter.com/KUHtxH9oqV
— Robert Tomaszewski (@robertomasz) October 6, 2021
Poland still relies on coal for almost 70% of its energy production, by far the highest proportion in the EU. Last year, its electricity prices grew faster than in any other EU country, according to a recent report by the state auditor, which found that the government had broken its promise to protect households from rises.
In August the Polish state energy giant PGE called for an end to controls on electricity prices for households to help utilities bear the additional costs linked to the EU’s climate targets.
Under the current system, electricity sellers submit applications to URE with proposals for new tariffs for households, which officials must then approve. Wholesale prices are decided through market mechanisms.
Main image credit: krzys16/Pixabay (under Pixabay License)
Maria Wilczek is deputy editor of Notes from Poland. She is a regular writer for The Times, The Economist and Al Jazeera English, and has also featured in Foreign Policy, Politico Europe, The Spectator and Gazeta Wyborcza.
