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Frozen Electricity Prices and Increased Consumption Limits: What You Need to Know in 2023

Author: twitter.com/MKiS The Sejm passed an amendment to the Act on the Protection of Energy Consumers in 2023, which introduces higher consumption limits with a frozen electricity price

Freezing electricity prices with a higher consumption limit for households, but also lowering the maximum price for electricity, e.g. for companies – On July 13, the Sejm adopted an amendment to the Act on the Protection of Electricity Consumers in 2023. What will be the higher consumption limits with frozen prices? Who will pay less for electricity?

Contents

Frozen electricity prices with a higher consumption limit – what?For whom will lower electricity prices still in 2023?Financing the cover from the solidarity contribution

– We react to the market situation on an ongoing basis and, as far as possible, try to ensure that each element of economic life is as little affected as possible by the effects of the ongoing energy war. Therefore, after half a year of operation of the mechanism limiting the amount of electricity prices, we have analyzed it and we see that it provides real support for Polish families – explained Anna Moscow, head of the Ministry of Climate and Environment.

On July 13, 2023, the Sejm passed amendment to the Act on the Protection of Electricity Consumers in 2023. As a result of this amendment, electricity consumption limits for households are increasing, with electricity prices frozen at the level of 2022. Small and medium-sized companies, local governments and some public utilities will pay less for electricity.

Frozen electricity prices with a higher consumption limit – what?

– The power system in Poland works stably, and the budget situation allows it, which is why we decided to increase the annual electricity consumption limits at frozen prices – confirmed Anna Moscow

Let us remind you that in 2022 regulations were adopted that allowed electricity prices to be frozen up to certain consumption limits during the year:

2 thousand kWh – the basic limit applicable to all households, 2.6 thousand. kWh for households with people with disabilities, up to 3 thousand. kWh for families with a Large Family Card and for farmers.

In accordance with the regulations, in 2023 the price of electricity up to the consumption limits is PLN 414/MWh net, and after exceeding PLN 689/MWh net.

The new regulations increase the annual consumption limits for all these groups by 1000 kWh. So they will take:

basic limit for households 3000 kWhfor households with a disabled person – 3600 kWhfor holders of the Large Family Card and people who run farms – 4000 kWh. Author: Ministry of Climate and Environment

New, higher limits will be available in 2023. Even if the recipient of electricity – even before the entry into force of the new act – exceeded the current limit, the energy seller will settle the additional volume of energy as part of the correction of invoices.

For whom will lower electricity prices still in 2023?

The amendment to the Act also introduces a reduction in the maximum electricity prices from PLN 785/MWh to PLN 693/MWh. They will pay less for electricity:

local governments, small and medium-sized enterprises, sensitive entities, i.e. schools, kindergartens, nurseries, hospitals, night shelters or facilities for the care of the disabled.

Lower electricity prices will apply from October 1, 2023.

As Minister Anna Moscow reminds, the government continues to encourage energy savings, which is associated with a discount on electricity.

– It’s enough that in the period from October 1, 2022 to December 31, 2023 we will reduce the electricity consumption by at least 10 percent. Then we will receive an additional discount of 10%. the entire electricity bill, which will be settled in 2024. Saving and efficient use of electricity allows not only to reduce bills, but also to protect the environment – he emphasizes.

Author: Ministry of Climate and Environment

Financing the cover from the solidarity contribution

Shielding support for households in the form of increasing the electricity consumption limit covered by the price freeze and lowering the maximum electricity prices for sensitive entities and the SME sector is to be financed from the so-called solidarity contribution. They will be required to pay it companies from the coal sector.

The introduction of the compulsory contribution is an EU solution to the debates about the need for the so-called windfall tax, that is excess profit tax. This is related to the record profits of energy companies, which were recorded as a result of the energy crisis after the Russian invasion of Ukraine.

The project also assumes that the tax will be paid to Price Difference Payout Fund excess income generated in 2022 from activities in the coal sector.

Source: Ministry of Climate and Environment

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2023-07-15 01:33:40
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