The Polish government has announced plans to cap electricity prices for households, small and medium-sized firms and entities for public use such as hospitals, schools, universities and churches amid a surge in energy prices that has left many worrying about their bills this autumn and winter.
“This is a storm which is affecting all of us but we’re doing all we can to support companies and Poles,” Prime Minister Mateusz Morawiecki told reporters yesterday while outlining the plans.
The government has already moved to partially freeze electricity prices for households, but many businesses have been warning that, without similar protection, they could fold. Some universities have been switching to online learning to avoid the soaring costs of powering and heating buildings.
Under the government’s new planned cap, which still needs to be approved by parliament, the maximum price of electricity for local governments, micro, small and medium-sized enterprises, as well as a range of “public use entities” (podmioty użyteczności publicznej) will be set at 785 zloty (€161) per megawatt hour (MWh) for up to 90% of average energy use.
Those classified as public use entities include education, childcare and healthcare facilities, sheltered housing, as well as churches and other religious organisations. The maximum price would still see the power bills of many hospitals double next year, reports broadcaster TVN24.
The government has also announced further support for households, in addition to last month’s decision to freeze electricity prices in 2023 at this year’s levels for the first 2,000 kilowatt-hours (kWh) used (with slightly higher limits for disabled people and farmers).
Yesterday, the government said it would set maximum electricity prices for households which exceed the 2,000 kWh limit at 693 zloty (€142) per MWh. The price caps will be in force for the whole of next year.
💡 Rząd odpowiada na kryzys energetyczny ⤵
➡ mechanizm maksymalnej ceny energii elektrycznej nie wyższej niż 693 zł/MWh dla gospodarstw domowych 🏘 pic.twitter.com/ofBByCldRM— Kancelaria Premiera (@PremierRP) October 11, 2022
Development minister Waldemar Buda said that the maximum price of energy will cover firms that have signed contracts with energy companies for higher rates, reports RMF24.
In addition to its electricity price freezes, the government has also previously introduced measures to help meet rising heating bills. An initial allowance for the purchase of coal – which around one third of Polish households use for heating – was followed by similar measures for other fuels.
The government has also earmarked an additional 13.7 billion zloty for local authorities facing soaring energy bills. However, last week representatives of local authorities from around Poland held a protest in Warsaw, arguing that the government had not done enough to help them meet rising costs.
Main image credit: MKiS (under CC BY-NC-ND 3.0 PL)
Peter Kononczuk is senior editor at Notes from Poland. He was previously a journalist for Agence France-Presse (AFP) in London and Warsaw.
