Electricity prices. “A day like this is just an exception”

Electricity prices in Poland (EUR 91 per MWh) are among the highest on the wholesale market in Europe – according to data from the European Commission (EC). It's more expensive only in Ireland and in Italy – said “Rzeczpospolita”.

“This will not be changed by the exceptional November 1, when electricity prices in Poland were the lowest in Europe (outside Scandinavia): at the level of EUR 38.3 per MWh. This was the result of good weather conditions for wind and solar sources. (.. .) Such a day is only an exception,” the newspaper noted.

“However, when it comes to final prices for households, in Poland they are still among the lowest in Europe and amount to less than EUR 200/MWh. The European average for Q2 is EUR 239, and Germany pays the most for electricity – nearly EUR 390 ” – noted in “Rz”.

– Data (from the wholesale market) is important, for example, for large business, i.e. for companies that buy energy directly on the stock exchange and, for example, have various operating strategies, including purchasing additional energy on a daily basis – Robert Tomaszewski from Polityka Insight. He explained that wholesale prices are important for individual customers because energy companies buy energy at them and then sell them to direct customers.

– So if in Poland energy prices remain at high levels for many days, many weeks, it is indeed an indication that consumers will also pay more – explains Tomaszewski and immediately warns: – But there are a number of protective mechanisms: the most important one is such that energy prices for households in Poland are tariffed, so each year the president of the Energy Regulatory Office must agree to the specific rate we pay.

Read also: Poland has “the most expensive electricity in Europe”. What does this map show?>>>

According to applicable regulations, the freezing of energy prices for households ends this year. Currently, it is PLN 500 per MWh. If this price is not maintained, households will pay the tariff price of the Energy Regulatory Office of PLN 623. This is valid until mid-2025.

The newspaper pointed out that the Ministry of Climate and Environment is looking for money to further freeze energy prices for next year. “Approximately PLN 5-6 billion will be needed, and only PLN 2 billion is reserved in the budget for this purpose,” the daily reported.

Paulina Hennig-Kloska, Minister of Climate and Environment, recalled in an interview for Gazeta Wyborcza that “price interventions were used during the energy crisis.” She pointed out that “today, in a situation of a stabilizing energy market, price freezing must be gradually phased out.”

– In this process, it is necessary to take into account the different life situations of citizens to see whether they will be able to pay their bills. Therefore, unlike our predecessors, we are diversifying the support rules for electricity consumers and have introduced an energy voucher, support with an income threshold, which has been used by over 2.4 million households, she said.

Hennig-Kloska pointed out that the initial costs of introducing the shields amounted to PLN 33 billion. – Next year we estimate that the maximum package would amount to PLN 5 billion. This shows what a path we have come. Free market offers for small companies and local governments are already well below the frozen rates, she noted.

The President of the Energy Regulatory Office, Rafał Gawin, said on Monday that “there is room” for the state to abandon intervention activities in the energy market and allow the market to operate. – Regulated prices included in tariffs do not necessarily have to be low enough. You can actually find very competitive offers on the market, Gawin said.

He reminded that “the tariff is only the customer's choice, it is not compulsory.” The obligation applies to enterprises that must calculate the tariff. The recipient has the right to choose a seller or even take advantage of the market offer from the same seller, he emphasized.