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Tuesday, May 21, 2024

Act on heat prices. The Senate’s proposals on VAT rates, the answer of the Sejm majority

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On Wednesday, the Sejm adopted some of the Senate’s amendments to the amendment to the act on special solutions in the field of certain heat sources. MEPs rejected an amendment providing for a reduction to 5 percent of the VAT rate on district heating, gas and electricity.

On Wednesday afternoon, the Senate introduced a number of amendments to the act amending the act on special solutions in the field of certain heat sources, proposing, among others, down to 5 percent. VAT rates for network heat, gas and electricity. The bill with amendments was supported by 97 senators, no one was against or abstained.

The Senate’s amendments were considered by the deputies on the same day. The amendments adopted by the Sejm are of ordering, legislative and editorial nature. Amendments, providing for a reduction from 1 March to 31 December 2023 from 23 to 5 percent. rates VAT for system heat, gas, electricity and heating oil were rejected. The bill will now go to the president.

Heat price increase limit

The new regulations introduce a mechanism to limit the increase in heat prices for consumers. It provides that the increase in prices for the supply of system heat, including all fees and rates imposed on the recipient, may not be greater than 40%. compared to the prices applicable on September 30, 2022. Energy companies will receive compensation so that the recipient – who is an authorized entity – will not be charged with an excessive increase in heating costs.

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The Act introduces maximum prices for the supply of heat by energy companies with regard to some recipients intended for residential and public utility purposes. The mechanism of the maximum heat supply price is to be applied from February 1 to December 31, 2023.

Pursuant to the Act of September 2022, PLN 10 billion was allocated for compensation for heat producers, allowances for households and sensitive entities. The adopted amendment raises this amount to PLN 14.5 billion. The Regulatory Impact Assessment indicated that for 2023. additional expenditure is planned in the amount of PLN 4.5 billion.

Compensation payment

According to the amendment, within 10 days from the entry into force of the Act, the President of the Energy Regulatory Office will calculate and publish information on the maximum price of heat supply by energy companies holding a license and operating in the field of heat sales.

Compensation for the sale of heat at a legally limited price will be paid to these enterprises by the Settlement Manager. Companies that do not hold a concession will determine the maximum heat supply price on their own. Compensation will be paid by the competent commune head, mayor or president after verification of the maximum calculated heat supply price.

Read also: New gas rates for bakeries and pastry shops. Parliament gave the green light

Main photo source: Shutterstock

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