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There will be increases in electricity prices. The President of the Energy Regulatory Office talks about double-digit increases

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Next year we will see increases in electricity prices. – These will not be increases reflecting the level of inflation, but much higher. There are different numbers and we are actually moving on a two-digit level rather than a single-digit one. – said the President of the Energy Regulatory Office Rafał Gawin in an interview with “Dziennik Gazeta Prawna”.

Rafał Gawin in an interview for “DGP” admitted that “we do not have any signals of what these increases will be.” – We will probably find out about it when the companies actually submit their tariff applications. It is not surprising that these increases will not reflect inflation, but will be much higher. There are different numbers and we are actually moving on a two-digit level rather than a single-digit one – he emphasized.

Electricity price increases – tariff applications are expected in November

He pointed out that it is never the case that the benchmark for tariffs for the whole year is the energy exchange price at a given moment. – Every rational and responsible entrepreneur contracts energy purchases in his portfolio and this contracting is spread over time – he buys energy at a different price. Due to the upward trend for a long time, the portfolios of energy companies include lower-valued and more expensive contracts that are concluded on an ongoing basis. If we take the latter as a reference point, we can probably talk about maximum increases. However, taking into account that other contracts were also concluded for the needs of customers, we expect that the proposed tariffs will not only reflect the current energy price quotations, said Gawin.

The President of the Energy Regulatory Office added that “as far as the next tariff process is concerned, we expect formal actions in November” – This is usually the time when tariff proceedings in the trading part begin. Will these negotiations (of energy companies with the ERO – ed.) Be tough? I think that today probably everyone is aware that it is more expensive and that the costs and rising energy prices must be reflected in the tariffs – he said.

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Gawin also referred to the demand to release energy prices for households. – We are observing the progressive self-liberation of the market, almost 40 percent. customers use the market offers of electricity sellers. In my opinion, there is still considerable potential for this percentage to increase significantly with some effort on the part of energy companies. When the work on the mechanism of protecting vulnerable consumers, i.e. those at risk of energy poverty, is completed and the market will free itself to 50, 60 or 70 percent, it seems that it will be a good time to talk about its full release – stated.


Jacek Sasin on electricity price increases

The inevitable increase in electricity prices was inevitable last week by Deputy Prime Minister Jacek Sasin at the Economic Forum in Karpacz. However, he did not specify the scale of the increase. – I would not like to prejudge. The expectations of energy companies will be specified by the companies themselves in tariff applications to the ERO. Commercial law companies cannot contribute to their business, they must also invest so that energy prices can be lower in the future. The inevitable logic is that this growth has to come, ‘he said.

– Energy companies are in a quite difficult income situation, they have to reduce their operating costs so that the scale of energy price increases is as low as possible. However, I do not want to predict what the companies will report. They are still estimating it – he added.

Tariff Applications

The President of the Energy Regulatory Office accepts tariff applications, then they are analyzed and either approved, or the president calls on the trading companies to correct them. An energy undertaking 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 is one of the energy companies that shapes the price list itself. For this purpose, it does not have to submit a tariff application to the ERO.

The calculations of the Energy Regulatory Office show that this year electricity bills for households increased by an average of PLN 8 per month, i.e. about 10 percent.

Dziennik Gazeta Prawna, TVN24 Biznes

Main photo source: Shutterstock

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