November 1st wholesale electricity prices in Poland, excluding Scandinavia, were the lowest in Europe – PLN 38.30 euro per MWh. This was the result of good weather conditions in the country, which powered photovoltaics and windmills – reports “Rzeczpospolita”. However, in retail, Poles are painfully affected by energy price increases, even despite the government's protective shields. Where is the truth about energy prices in our country?
Electricity prices in Poland are both the lowest and highest in Europe. What is it about?
Let's start with the lowest energy prices in Europe on November 1. Good weather conditions and holidays meant that demand in the country was low and, at the same time, production from renewable energy sources was high. Poland could therefore export electricity abroad. All these factors contributed to exceptionally low prices. Importantly, we are talking about stock exchange and wholesale trade. November 1, however, was an exception to the rule, because, as the daily reminds, according to the European Commission data for the second quarter of this year, only the Irish and Italians have higher wholesale energy prices. On average we pay 91 euros per MWh, not 38.30 like last Friday.
For most citizens, however, what matters is how wholesale prices translate into final prices. And to put it simply – what is the price of electricity on the bill. And it turns out that final prices in Poland are among the lowest in Europe. Poles pay less than EUR 200/MWh. The European average is EUR 239, and Germany pays the highest – almost EUR 390.
It is also worth remembering that the purchasing power of money in Poland is still lower than in the West. When converted into euros, we often do extremely well in similar rankings. However, when we come back to Polish ground and we stop comparing ourselves, it is clear that electricity is still too expensive for many people, as evidenced by numerous personal stories of Poles – an example below.
Electricity subsidies will be gradually phased out
As you might guess, the difference between one of the highest wholesale electricity prices in Europe and one of the lowest in final bills is the result of government subsidies. Households currently pay PLN 500 per MWh (without consumption limits). However, the government wants to phase out subsidies, as informed by the Minister of Climate and Environment, Paulina Hennig-Kloska.
– Today, in a situation of stabilizing energy market, price freezing must be gradually phased out. In this process, citizens' different life situations must be taken into account to see whether they will be able to pay their bills. Therefore, unlike our predecessors, we are differentiating the rules of support for electricity consumers – commented the Minister of Climate when asked about the sense of continuing to freeze prices. In 2025, electricity subsidies are still to be in place, but only “to a certain extent”, said Hennig-Kloska.