Electricity price increases. How much more will a statistical family pay? Calculations

  • In December, the President of the Energy Regulatory Office approved new electricity sales and distribution tariffs for customers from G tariff groups
  • The main reason for the increase in energy prices is the rising prices of carbon dioxide emission allowances
  • The solutions prepared by the government will make increases in electricity prices much less noticeable for Polish households
  • – Polish families will be protected against surges in energy prices, declares Prime Minister Mateusz Morawiecki

Amendments to the excise tax and retail sales tax act are a reaction to the rising prices of fuel and electricity. Their goal is to protect the budgets of households and businesses.

According to the calculations of the Polish Electricity Association, the monthly bill of a typical family in the G11 tariff group consuming 1.8 MWh of electricity per year will increase by an average of approx. PLN 21. However, this cost can be reduced in the first quarter, thanks to the so-called anti-inflationary shield and compensation. – Thanks to the government’s protective measures, tax cuts and the Anti-Inflation Shield, Polish families will be protected against abrupt increases in energy prices – Prime Minister Mateusz Morawiecki said during the December press conference.

Photo: Polish Electricity Association

Change in energy prices in 2022

READ MORE: Energy prices will rise. New calculation

As PGE reminds, in 2022 it will also be possible to pay energy bills with the help of the cover supplement prepared under the government’s Anti-Inflation Shield. The support is targeted at middle and low income households. Its amount depends on the number of people in the household and the income threshold. “In order to use the cover allowance, you will have to go to a social welfare center in your area and submit an appropriate application,” adds PGE.

Photo: Polish Electricity Association

How will the electricity bill for the household change?

What are the causes of the increases in electricity prices?

The increases in the average rates are mainly due to sharp jumps in the prices of CO2 emission allowances. The purchase of these allowances is necessary for the production of energy in coal or gas power plants. Nevertheless, it is worth noting that the increase in energy prices affects most European Union countries – not only those whose energy mix is ​​dominated by conventional sources.

Important reasons for the increases in energy prices are also currently the increase in the prices of energy raw materials, lower production of energy from renewable sources and increased demand in 2021 related to the post-Soviet economic recovery.

Photo: Polish Electricity Association

What makes up the price of energy?

59 percent the average energy price is the aforementioned costs of CO2 emission allowances resulting from the EU climate policy; 25 percent are other costs related to energy production; 8 percent are the costs of investing in renewable energy and energy efficiency resulting from the EU climate policy; 6 percent are the costs of energy sellers (customer service, employment); 1 percent it’s the excise duty; 1 percent is the margin of energy sellers.

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About Eric Wilson

The variety offered by video games never ceases to amaze him. He loves OutRun's drifting as well as the contemplative walks of Dear Esther. Immersing himself in other worlds is an incomparable feeling for him: he understood it by playing for the first time in Shenmue.

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