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Heating. Heat prices – new solutions. Project assumptions

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The end of the current heat price mechanism with compensation and the introduction of a new mechanism, which is to be in force until the end of 2023 – these are the assumptions of the project, which were published in the government’s list of legislative works. The proposed regulations are intended to limit the increase in heat prices for citizens.

On Monday, the government’s list of legislative works announced work on the draft amendment to the Act on special solutions in the field of certain heat sources in connection with the situation on the fuel market and some other acts.

As explained, it is designed to “provide support to households and utilities by reducing the fees resulting from the increase fuel priceswhich translates into average prices for the generation and supply of heat.

Heat prices – new solutions

“Observed growth energy prices of its carriers on global markets from 2022 is the result of the impact of a number of overlapping factors, mainly the armed invasion Russia to Ukraine and, to a lesser extent, economic recovery after the COVID-19 pandemic. The actions initiated by the Russian Federation had a negative impact on the amount and unpredictability of gas prices, and then also other raw materials, in particular hard coal. In addition, the economic recovery resulting in an increase in demand for all fuels put pressure on their prices.

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It was added that the ongoing reconstruction of the sources and directions of supply of hydrocarbons and fuels causes additional pressure resulting from the costs of adjusting entrepreneurs to the new situation. This pressure is intensified by the rising costs of emission allowances and the costs of importing fuels from new directions.

The authors of the project indicated that as a result of these circumstances, “heat energy prices for citizens increased to levels higher than assumed when designing the currently applicable support mechanism, at the same time affecting the financial burden on citizens of the Republic of Poland”. “It is not without significance that this exceptional situation is prolonged, and the impact on energy prices was postponed due to, for example, long-term contracts for fuel supplies concluded before the crisis. The above leads to a situation when citizens receive bills at the peak of the heating season containing new, significantly increased prices for heat supply.

The list argues that the new regulations will allow to reduce the financial burden related to heat charges borne by households or public utility institutions. “Thus, this solution will ensure energy security of heat supplies, as it reduces the risk of payment backlogs in the event of excessive bills for the supplied heat being charged to consumers. It should also be taken into account that the solution in question will give an anti-inflationary impulse, limiting its growth or its reduction,” it said.

The list shows that the current mechanism of the average heat generation price with compensation will be replaced by another one. The old mechanism will be completed and settled as at 31 January 2023.

“The draft regulation will be in force from February 1, 2023 to December 31, 2023 and will provide support to households and public utility entities by covering part of the heat recipients’ receivables from energy companies conducting non-licensed and licensed activities in the field of heat generation resulting from the increase in heating costs by leveling, in order to limit the increase in heat charges at a certain level.

Higher heat prices

It was added that the new regulations will also cover cases of applying prices higher than the maximum in the period from October 1, 2022.

“Thanks to the designed support mechanism, if there is an increase in heat supply prices, including all fees and rates imposed on the heat recipient, by more than 40% compared to the prices applicable as at September 30, 2022, energy companies will receive compensation so that the recipient contained in the catalog of authorized entities has not been burdened with an excessive increase in heating costs.At the same time, the mechanism of limiting the level of heat prices is maintained, taking into account prices and rates for heat generation and transmission fees, depending on which, so that the mechanism is ultimately the most advantageous for the heat consumer. heat prices for consumers for housing and public utility purposes will be limited to a fixed level, which will depend on historical heat supply prices.

Minister of Climate and Environment Anna Moscow informed on Friday – confirming earlier PAP reports – that the ministry will soon present additional regulations to protect heat consumers even more. “We will provide compensation and limit increases for citizens,” the minister tweeted on Friday.

The assistance will include residents of blocks of flats – recipients of system heat, as well as the so-called sensitive recipients, i.e. schools, hospitals or nurseries.

Main photo source: Shutterstock

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