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Eurofound's EU PolicyWatch collates information on the responses of government and social partners to the COVID-19 crisis, the war in Ukraine, rising inflation, as well as gathering examples of company practices aimed at mitigating the social and economic impacts.

Factsheet for measure PL-2023-37/3339 Updated – measures in Poland

12% retroactive cut in household electricity prices in 2023

12% obniżka cen prądu dla gospodarstw domowych w 2023 r.

Country Poland , applies nationwide
Time period Temporary, 16 September 2023 – 31 December 2024
Context War in Ukraine, Cost of Living Crisis
Type Legislations or other statutory regulations
Category Promoting the economic, labour market and social recovery into a green future
– Support for energy bills
Author Monika Helak (Polityka Insight) and Eurofound
Measure added 31 October 2023 (updated 25 April 2024)

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 16 September 2023 the Ordinance of the Minister for Climate and Environment of 9 September 2023 amending the Ordinance on the Method of Determining and Calculating Tariffs and the Method of Settlement in Electricity Trading (Dz.U. 2023 poz. 1847) entered into force.

Content of measure

Under the scheme, a household will be eligible for a 12% reduction on its electricity bill in 2023, for consumption of up to 2,523 kWh. To qualify, the household must meet one of six conditions set out in the Ordinance.

These conditions are

  • a 5% reduction in consumption for at least three consecutive months during the first three quarters of 2023;
  • confirming the accuracy of their details held by the electricity retailer;
  • agreeing to receive correspondence, including VAT invoices, electronically;
  • agree to receive information from the seller on products and services offered by the seller;
  • declaring to be a so-called prosumer, entitled to frozen prices within a limit higher than the basic consumption.

The reduction will take effect immediately, at the latest on the last invoice issued for 2023.

The companies selling electricity will be responsible for financing the reduction.

Updates

The following updates to this measure have been made after it came into effect.

01 March 2024

The current energy price freeze mechanism for households and vulnerable consumers will end by 30 June 2024. The government plans to scrap the energy price freeze mechanism in a way that is acceptable to consumers. At the same time, the government announces that vulnerable consumers will continue to be protected.

Use of measure

The ordinance does not include estimates of the number of people covered by the price reduction. According to the Central Statistical Office, there are approximately 13.6 million households in Poland in 2021. All of them may be now eligible for the price reduction.

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
Companies

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

Social partners were not involved in designing the measure.

Views and reactions

There is no public information on the social partners' views on the measure.

Sources

  • 09 September 2023: Ordinance of the Minister for Climate and Environment of 9 September 2023 amending the Ordinance on the Method of Determining and Calculating Tariffs and the Method of Settlement in Electricity Trading (isap.sejm.gov.pl)
  • 27 February 2024: Ceny prądu już nie spadną (www.ure.gov.pl)
  • 01 March 2024: Od lipca podwyżki cen prądu. Paulina Hennig-Kloska wskazała kwotę https://www.polsatnews.pl/wiadomosc/2024-02-29/od-lipca-podwyzki-cen-pradu-paulina-hennig-kloska-wskazala-kwote/ (www.polsatnews.pl)
  • 01 March 2024: Ile zapłacimy za prąd w drugiej połowie roku? "Stopniowe wychodzenie z mrożenia" Czytaj więcej na https://biznes.interia.pl/gospodarka/news-ile-zaplacimy-za-prad-w-drugiej-polowie-roku-stopniowe-wycho,nId,7359123#utm_source=paste&utm_medium=paste&utm_campaign=safari (biznes.interia.pl)

Citation

Eurofound (2023), 12% retroactive cut in household electricity prices in 2023, measure PL-2023-37/3339 (measures in Poland), EU PolicyWatch, Dublin, https://static.eurofound.europa.eu/covid19db/cases/PL-2023-37_3339.html

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Disclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process.