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Electricity bills after suspension of the capacity fee. URE presented estimates

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The suspension of the capacity fee referred to in the Energy Voucher Act will limit the increase in bills by approximately one quarter, said Rafał Gawin, president of the Energy Regulatory Office. At the same time, he emphasized that this year's reduction should not result in an increase in this fee in 2025.

The energy voucher act, which is awaiting the president's decision, provides for, among other things, abolition of the capacity fee in the second half of 2024, paid by households. The amendment regarding the exemption from the capacity fee was proposed in the Senate and then supported by the Sejm. This solution was not included in the original government submission.

“The amendment regarding the capacity fee will result in… the increase in the electricity bill in the second half of 2024 will be on average a quarter lowerthan assumed in the draft act,” Gawin said.

Read also: The Sejm adopted the Senate's amendments to the act on protecting electricity consumers

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Electricity bills will be lower

The fee rates are set for each year by the President of the Energy Regulatory Office; in 2024, they range from PLN 2.66 to PLN 14.90 net per month, depending on the household's electricity consumption. Temporary suspension of the capacity fee will last from July 1 to December 31, 2024.

At the same time, the President of the Energy Regulatory Office predicts that the amendment should not result in an increase in the capacity fee in 2025 due to the lower forecast costs of the capacity market in 2025 compared to the current year.

According to the estimates of the Forum Energii think-tank, the cost of the capacity market, i.e. the execution of payments resulting from contracts concluded in the past at the main and additional auctions, amounted to PLN 5.3 billion in 2023, this year it should be PLN 5.7 billion, and in 2025 this cost should drop to PLN 5.3 billion.

What is a capacity fee?

According to the Capacity Market Act, power is a commodity that can be bought and sold. Generation units – selected during the auction to perform the so-called capacity obligation, consisting in the readiness to supply electrical power to the system and the obligation to actually supply power during the period of threat – are rewarded for this.

The capacity market has been operating since the beginning of 2021. To cover its costs, electricity consumers, including households, pay additional fees.

Energy voucher and freezing of energy prices in 2024

The Energy Voucher Act assumes: introduction of a maximum price for electricity in the period July-December 2024. at the level of PLN 500/MWh for households and at the level of PLN 693/MWh for local government units and public utility entities, as well as for small and medium-sized enterprises.

The Act imposes on the so-called obliged sellers of electricity and gas to submit applications to the President of the Energy Regulatory Office to change their tariffs under the threat of losing compensation for selling energy below tariff prices.

The tariffs of obligated electricity sellers are currently PLN 739 per MWh. As previously reported by the President of the Energy Regulatory Office, the regulator's analyzes indicate that the average tariff price of electricity for households in the tariff for the second half of 2024 and 2025 may be below PLN 600 per MWh.

Main photo source: Shutterstock



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