Polish government to extend freeze on household electricity prices

The Polish government has decided to extend the current freeze on electricity prices for households by nine months, through the end of September next year. This is according to a draft law approved by the Polish cabinet today, Reuters reports. The price for households will therefore remain at 500 zlotys (about CZK 2,900) per megawatt-hour. However, the government will end subsidies for other consumers, citing more favorable conditions on the electricity market, PAP reports.

Without state support, households would have to pay 623 zlotys (about CZK 3,600) per megawatt-hour, according to the government. “Electricity prices for Polish households will not rise next year. We are freezing them for nine months,” Polish Prime Minister Donald Tusk said.

The proposed extension of the household electricity price freeze is expected to cost the Polish state budget about five billion zlotys (about CZK 29 billion) next year, PAP reports. Poland capped electricity prices for households and small and medium-sized businesses in 2022. The state budget compensates power companies for the impact of the measure.

Tusk predicted that market electricity prices should fall by September. “Another freeze may therefore not be necessary,” he added. “But if it is, we will discuss it,” he promised.