Background information

Due to the Russian invasion of Ukraine and other political and economic factors, the cost of electricity has increased significantly in 2022 and 2023. To protect households and businesses from high electricity prices, the government has introduced a number of regulations.

On 18 October 2022, the Act on Special Arrangements for the Protection of Electricity Consumers 2023 due to the electricity market situation entered into force.

Content of measure

Electricity prices for households will be frozen at 2022 levels in 2023 and the government will compensate electricity suppliers accordingly. The frozen prices will apply up to a consumption level of 2,000 KWh. Above this level, households will pay higher charges in line with the 2023 tariff. However, there will be a higher annual limit on electricity consumption for households with people with disabilities (2.6 KWh) and for farmers with three or more families (3,000 KWh).

Households using electricity for heating (including the use of heat pumps) will also receive a one-off electricity subsidy of PLN 1,000. If the household's annual electricity consumption exceeds 5,000 KWh, the supplement will be PLN 1,500.

Energy saving will also be rewarded. Households that in 2023 consume no more than 90% of the energy consumed in 2022 will receive a special discount in 2024 of 10% of the total cost of electricity consumption in 2023.

The maximum price for electricity has been extended to the second half of 2024 and 2025. The price for households has been set at PLN 500/MWh (€116.82 as of 13 December 2024). In addition, a one-off cash benefit has been introduced for approximately 3.5 million lower-income households. There will be two income thresholds:
- up to PLN 2,500 (€548.1 as of 13 December 2024) per person for one-person households, - up to PLN 1700 (€397.2 as of 13 December 2024) per person for multi-person households.

The support will be available to, among others, pensioners with a benefit below the minimum pension and pensioners whose benefit is equal to the lowest pension (currently PLN 1780.96 (€ 416.1 as of 13 December 2024)).

Use of measure

The government estimates that almost 17 million households in Poland will benefit from the electricity price freeze in 2023.

Target groups

Workers	Businesses	Citizens
Does not apply to workers	Does not apply to businesses	Applies to all citizens

Actors and funding

Actors	Funding
National government Company / Companies	National funds

Social partners

Social partners' role in designing the measure and form of involvement:

	Trade unions	Employers' organisations
Role	Unknown	Unknown
Form	Not applicable	Not applicable

Social partners' role in the implementation, monitoring and assessment phase:

• Unknown
• Main level of involvement: N/A

Involvement

Unknown.

Views and reactions

Unknown.

Sectors and occupations

This case is not occupation-specific.

Sources

• 07 October 2022: Act freezing electricity prices adopted by the Sejm (www.gov.pl)
• 14 October 2022: Act protecting electricity consumers signed by the President of the Republic of Poland (www.gov.pl)
• 19 November 2024: Government passed bill to freeze energy prices for households in 2025 - we care about the stability of Polish families (www.gov.pl)