Background information

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

21 December 2022 The Act on the special protection of certain consumers of gaseous fuels in 2023 in view of the situation on the gas market enters into force. It allows to introduce a maximum gas price for vulnerable customers in 2023 and VAT refunds for low-income households.

Content of measure

In 2023, a maximum price for gaseous fuels of PLN 200.17/MWh has been introduced and distribution charge rates has been frozen. The additional charges applied by the sellers will remain at the 2022 level, so the gaseous fuel prices in 2023 applied in settlements with the most vulnerable customers will correspond to those in 2022. The maximum price will be applied to all customers who currently benefit from tariff protection, that is:

• Households.
• Housing communities and cooperatives and other entities that produce heat locally for households in cooperatives.
• Entities that provide key services to the public, i.e., among others, health care units, social assistance, entities of the education and higher education system, nurseries, churches or NGOs.

Low-income households that heat with gas can also receive a refund of the VAT (23%) they pay on their natural gas supply in 2023. The refund is available to those households whose average monthly income does not exceed PLN 2,100 in a single-person household or PLN 1,500 per person in a multi-person household. The tax refund will be delegated to local authorities.

For the natural gas price cap in 2023, the government expects to spend PLN 30 billion (€6.289 billion as of 19 February 2023). VAT refunds on gas in 2023 are expected to cost PLN 612 million (€128 million).

Use of measure

The government estimates that around 300,000 households will benefit from VAT refunds on gas.

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 Local / regional government	National funds

Social partners

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

	Trade unions	Employers' organisations
Role	No involvement	No involvement
Form	Not applicable	Not applicable

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

• No involvement
• Main level of involvement: N/A

Involvement

Unknown.

Views and reactions

Unknown.

Sectors and occupations

This case is not occupation-specific.

Sources

• 20 December 2022: The President signed the act on special protection of gaseous fuel consumers in 2023. (www.gov.pl)
• 20 December 2022: Ustawa z dnia 15 grudnia 2022 r. o szczególnej ochronie niektórych odbiorców paliw gazowych w 2023 r. w związku z sytuacją na rynku gazu (isap.sejm.gov.pl)
• 29 December 2022: Minister Moskwa: We will spend over PLN 100 billion on reducing energy prices in two years (businessinsider.com.pl)