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Electricity prices in 2022. Rafał Gawin, the President of the ERO, in an interview with “Rzeczpospolita”

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In the case of the electricity trading tariff, the increase will be two-digit – said Rafał Gawin, President of the Energy Regulatory Office in an interview with Rzeczpospolita. – We want to publish new tariff rates for next year by 17 December – he added.

The President of the Energy Regulatory Office was asked by Rzeczpospolita when the new electricity tariffs will be known.

– The deadline for submitting tariff applications that have just been received by us results from legal regulations, according to which the company submits the application to the regulator no later than two months before the expiry of the current tariff. For the regulator, the benchmark for assessing the content of these applications is primarily the power exchange market and electricity quotations. We plan to finish tariff proceedings on time and we do not expect delays. We plan to publish new tariffs (for 2022) by December 17, so that they can be introduced by companies from January 1, Gawin said in an interview with Rzeczpospolita published on Tuesday.

Double-digit increase in energy prices

Asked whether, taking into account market conditions, the electricity tariff will be higher, the head of the Energy Regulatory Office replied: “There is no doubt about it”.

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– She’ll be taller. The increase will be double-digit in the electricity trading tariff itself. It will not be the same increase corresponding to the level of inflation as it was in the previous year. However, it is difficult to precisely determine what the final increase in the tariff will be. It is the trading companies that need to evaluate their costs. The tariff application is prepared by the company and it knows what costs will be incurred. In the tariff process, it is the company that submits the application, in which it can show us lower or higher costs in relation to our “model” company – he explained.

The spokesman of the Energy Regulatory Office, Agnieszka Głośniewska, asked by us last week what increases in energy prices are requested by individual companies, replied that “the applications have just been submitted to the Regulator”. “We analyze the documents submitted by sellers and distributors” – she added.

The President of the Energy Regulatory Office accepts tariff applications, then they are analyzed and approved, or the president calls on the trading companies to correct them. An energy enterprise may introduce a tariff to be applied not earlier than after 14 days and not later than 45 days from the date of its publication by the President of the ERO.

Applications to the ERO are submitted by state-controlled sellers: Enea, Energa Obrót, PGE Obrót and Tauron Sprzedaż. In turn, for example, Innogy, which will soon operate under the name E.ON Polska, is one of the energy companies that shapes the price list itself. For this purpose, he does not have to submit a tariff application to the ERO.

Electricity price increases are inevitable

Gawin already spoke in September about the fact that electricity prices will rise next year. – These will not be increases reflecting the level of inflation, but much higher. There are different numbers and we are actually moving at a two-digit level rather than a single-digit one – emphasized the president of the ERO in an interview with “Dziennik Gazeta Prawna”.

During the September European Economic Congress in Katowice, the head of the ERO’s market development and consumer affairs department, Małgorzata Kozak pointed out that energy prices should rise. As she said, the whole of Europe is currently struggling with the problem of rising energy prices – in some countries prices reach up to EUR 150 per megawatt hour.

– Therefore, the regulator cannot close itself to the problems of companies – she said. – It cannot be said that these will be such gigantic increases (…). Let’s see what the companies will bring in the tariffs, what will be the justification for the applications, and at what time the purchases were made – she explained.

Enea CEO Paweł Szczeszek informed in September that Enea would apply for an increase in the electricity tariff for households. She would be interested in increasing it by nearly 40 percent.

– Hypothetically, if the tariff increased by 40 percent, the bill would increase by 20 percent. According to media statements, it will be difficult to achieve such an increase, of the order of 40 percent, and I do not hide that we would be interested in an increase close to this value – said Szczeszek.

Tauron also announced that it would prepare a tariff application that takes into account “objective factors” conditioning the expected increase in electricity prices.

Electricity price increases – forecasts

Analysts of the Polish Economic Institute forecast that electricity prices for households in 2022 will increase by 12%.

“The amount of the increases will depend on the decision of the President of the Energy Regulatory Office. The decision is made on the basis of the costs of energy generation and distribution. The largest price increases are related to charges for CO2 emissions and, indirectly, the increase in the cost of coal. Press comments indicate that energy companies want to apply for tariff increases. by 20-30 percent ” – it was written.

“The final increase in bills will be lower – the increases will reach 12 percent. The URE’s decision will probably be in the range of 10-15 percent. Currently, we already know the effect of increasing the capacity fee – with average consumption it will increase the bill by about 1.5 percent. This will add an additional 0, 1 point to inflation “- added.

The authors of the report emphasize that the greatest uncertainty accompanies changes in gas prices – PIE forecasts indicate quarterly increases of 6-7 percent.

“A large increase in costs will be associated with fluctuations in gas prices on commodity markets – since the beginning of the year they have increased by 460% (…) The assumption of a gradual nature of the increases is dictated by the likely adoption of regulations that will prevent abrupt changes. After the implementation of similar changes, similar We will also experience price increases in 2023. ” – it was written.

“It should be remembered that in 2024 the EU directive will finish regulating the market for households. However, the increase in natural gas prices for enterprises will be higher, which will translate into higher food prices for consumers,” he added.

Project of compensation for increases in electricity prices

Last week, Deputy Finance Minister Piotr Patkowski informed that a project of compensation for people at risk of energy poverty is ready, in its current version it concerns approx. 1 million households and the cost is approx. PLN 1.5 billion.

-However, the prime minister recently said that this amount of aid would increase to PLN 3 billion. We would like to expand the circle of people who will receive help. It will be an energy voucher, the purpose of which is to cushion the increase in the prices of heat, gas and gasoline. We will not bind Poles with the purpose for which they are to allocate these funds, but we will provide Poles with vouchers, and they will decide what to allocate these funds for, said the deputy minister.

He explained that the amount of the support will be paid monthly and its amount will depend on the size of the household.

Patkowski noted that work on other solutions is underway. – We know the social feeling of inflation. And we are considering other solutions, we will analyze and communicate them – he said. However, he ruled out a reduction of VAT on electricity to 0%, because, as he added, “it is inconsistent with EU regulations”.

According to the draft amendment to the Energy Law presented earlier by the Ministry of Climate and Environment, the group of entitled to receive an energy allowance would be expanded (the income criterion was assumed: PLN 1563 in a single-person household and PLN 1115 / person in a multi-person household). According to the assumptions, the subsidies are to range from PLN 324 to PLN 876 per year.

In December 2019, Deputy Prime Minister Jacek Sasin promised that energy prices for individual consumers would not increase in 2020. – Increase for individual recipients will not be – he assured. Meanwhile, the bills have risen.

At the same time, a concept of compensation for pay rises appeared in the government. In January, Sasin announced that the compensations would be directed to “almost everyone”, but because Poland is limited by EU regulations on illegal state aid for energy companies, “the popularity of these compensations cannot be complete”.


Main photo source: Shutterstock

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