Electricity prices for individual consumers in Poland are set by the Energy Regulatory Office. It does this at the request of energy suppliers. Due to the more expensive energy on the wholesale market, the requests for increases were high. The ERO took into account the market situation and agreed to the price increase. The tariff for 2022 was shown in mid-December 2021.
Electricity prices. How much will they be?
According to URE data, electricity prices are to increase by 24 percent. This means that the bills will increase by an average of PLN 21 net per month. A common solution is billing every other month. In this case, we will pay statistically PLN 42 net more.
At the beginning of the year, due to the anti-inflationary shield in place, suppliers will not add VAT to the above-mentioned amount. Its rate has been temporarily reduced from 23 to 5 percent. However, after the end of the quarter, sellers will return to previous settlements.
The table summarizes the changes in the net payment of the distribution bill to customers. Source: ERO
What does the PLN 21 raise? The rate for distribution increases by 9%, i.e. by PLN 4-4.50 net per month. The selling rate, which is 37% higher, is much more impacting on the price of electricity. It is on average PLN 17 net per month more. In total, this gives an average amount of increases of PLN 21.
URE still protects the majority of Poles against drastic increases
Price increases may be more severe for those who do not use the tariffs regulated by the Energy Regulatory Office. As explained by the Energy Regulatory Office, the tariffs approved by the Regulator in four so-called ex officio sellers, they apply to 9.8 million recipients in households. It’s 63 percent. with 15.6 million of all customers in the group of households.
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However, the ERO does not affect the prices for entrepreneurs, which is an element of the liberalization of the energy market. More than 37 percent of the free-market offers that are not subject to approval by the President of the Energy Regulatory Authority (ERO). consumers in households in our country (over 5.8 million). From January 1, 2024, also prices for individual customers will be determined according to market rules, without top-down regulations of the ERO.
Electricity prices and the anti-inflation shield
As part of the so-called of the anti-inflationary shield, the government has planned a reduction in the VAT rate on energy sales from 23 to 5 percent in the first quarter of 2022. and exempting households from excise duty on energy by the end of May 2022. In addition, 7 million Poles will be able to take advantage of protection allowances in 2022.
The reduced VAT rate will translate into the final bill of consumers – electricity recipients. This means that the real change in recipients’ payments may be different than indicated in this information – informs the Office in a release.