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Polish gov’t backs plans to cap coal, energy prices

14.10.2022 19:00
Poland’s government on Friday approved plans to cap the prices of electricity and coal in a bid to protect households, local governments and businesses from rising energy costs driven by Russia’s war on Ukraine.
Polands Prime Minister Mateusz Marowiecki (centre) chairs a meeting of government ministers in Warsaw on Friday, October 14, 2022.
Poland's Prime Minister Mateusz Marowiecki (centre) chairs a meeting of government ministers in Warsaw on Friday, October 14, 2022.Twitter/Chancellery of the Prime Minister of Poland

The move was announced by Climate and Environment Minister Anna Moskwa, public broadcaster Polish Radio’s IAR news agency reported.

Energy price cap

Moskwa told a media briefing that the energy price-cap initiative marked “another step in efforts to protect energy consumers.”

Under the plan, first unveiled on Tuesday, the price of energy for local governments, small and medium-sized companies as well as "sensitive recipients" such as schools and hospitals will be capped at PLN 785 (EUR 163) per 1 MWh, officials said.

Meanwhile, the price of energy consumed by households, above a limit established in an earlier energy price-freeze bill, will be capped at PLN 693 (EUR 144) per 1 MWh, reporters were told.

Under the energy price-freeze bill, households in 2023 will pay this year’s price for energy, up to a consumption limit of 2 MWh per household (2.6 MWh in the case of families with members with disabilities and 3 MWh for large families and farmers). 

Now the government has decided that energy consumed above that limit will cost no more than PLN 693 per 1 MWh.

President signs energy price-freeze bill into law

President Andrzej Duda on Friday signed the energy price-freeze bill into law. This measure includes a one-off electricity allowance of PLN 1,000 (EUR 210) for those who use electricity for heating.

For households that consume over 5 MWh of energy per year, the allowance rises to PLN 1,500 (EUR 315), the PAP news agency reported.

Coal price cap

Meanwhile, the government on Friday also adopted the coal price-cap bill, under which local governments will pay no more than PLN 1,500 (EUR 311) per tonne of coal, which they will then distribute to households at a maximum price of PLN 2,000 (EUR 415) per tonne, the IAR news agency reported.

In August, Poland introduced a one-off allowance of PLN 3,000 (EUR 620) for all families that use coal to heat their homes.        

Friday was day 233 of the Russian invasion of Ukraine.


Source: IAR, PAP, tvpparlament.pl