Factsheet for measure
PL-2023-1/3090
–
Updated
– measures in Poland
Capping of electricity prices for households and small business
Ograniczenie cen prądu dla gospodarstw domowych i małych firm
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 4 November 2022, the Act on Emergency Measures to Cap Electricity prices and Support Certain Consumers in 2023 (Dz.U. 2022 poz. 2243) entered into force.
Content of measure
The law introduces a maximum price for electricity, which will be:
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PLN 693/MWh for households.
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PLN 785/MWh for other eligible consumers.
The maximum price will be applied by sellers in contracts with:
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Households - from the moment consumption exceeds the limit of 2,000-3,000 KWh set by the Electricity Price Freeze Act (see case [PL-2023-1/3073]), until 31 December 2023.
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Public utilities and local authorities - from 24 February 2022 until 31 December 2023.
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Small and medium-sized enterprises - from 24 February 2022 to 31 December 2023.
Among the vulnerable entities, the Act recognises hospitals and clinics, social welfare centres, schools, kindergartens, crèches and universities, churches or other religious associations, 24-hour care facilities for the disabled, sick or elderly, family welfare homes, water supply, collective transport, sewerage, street lighting, cultural institutions, physical culture facilities including swimming pools, trade unions, animal shelters.
Electricity trading companies, i.e. the so-called eligible entities, are entitled to compensation paid by the Settlement Administrator through the Price Difference Payment Fund.
The government expects to spend PLN 46 billion (€9.463 billion as of 19 February 2023) on capping electricity prices.
Updates
The following updates to this measure have been made after it came into effect.
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19 September 2023
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On 16 August 2023, the Sejm adopted an amendment to the Act on Special Solutions for the Protection of Electricity Consumers in 2023 (Dz.U. 2023 poz. 1785). Most of its provisions entered into force on 19 September 2023.
The amendment includes an increase in the limits of electricity consumption covered by the maximum price for large families and persons with disabilities.
Also, in Q4 2023, the maximum price of electricity for small and medium-sized enterprises, public utilities and local authorities will be reduced from PLN 785/MWh to PLN 693/MWh. As a result, these entities will pay the same price for electricity as households.
The amendment also introduces a tax on windfall profits of selected energy companies in 2022. However, the largest companies will be exempted from this levy due to specific criteria, including the use of state aid in 2022. As a result, only one of them - Jastrzębska Spółka Węglowa - will pay a tax of around PLN 1.6 billion.
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Use of measure
Uknown.
Target groups
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Workers
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Businesses
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Citizens
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Does not apply to workers
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SMEs
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Applies to all citizens
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Actors and funding
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Actors
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Funding
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National government
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National funds
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Social partners
Social partners' role in
designing the measure
and form of involvement:
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Trade unions
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Employers' organisations
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Role
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No involvement
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No involvement
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Form
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Not applicable
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Not applicable
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Social partners' role in the
implementation, monitoring and assessment phase:
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No involvement
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Main level of involvement: N/A
Involvement
No involvement.
Views and reactions
Uknown.
Sectors and occupations
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This case is sector-specific
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Economic area
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Sector (NACE level 2)
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D - Electricity, Gas, Steam And Air Conditioning Supply
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D35 Electricity, gas, steam and air conditioning supply
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This case is not occupation-specific.
Sources
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20 October 2022: The Sejm adopted an act limiting the amount of electricity prices
(www.gov.pl)
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29 December 2022: Minister Moskwa: We will spend over PLN 100 billion on reducing energy prices in two years
(businessinsider.com.pl)
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16 November 2023: Act of 16 August 2023 amending the Act on special solutions for the protection of electricity consumers in 2023 in connection with the situation on the electricity market and certain other acts.
(isap.sejm.gov.pl)
