New electricity tariffs for households

On 1 January 2022, new electricity tariffs for households come into force. Approved by the President of the Energy Regulatory Office, the changes in the tariffs for electricity sale and distribution will translate into an increase in electricity bills by about 24%. An average household will pay about PLN 21 more per month than in 2021, but thanks to the government's shielding measures, the increase will be only about PLN 6 per month by the end of March 2022.

The electricity bill for the G tariff, i.e. households, consists of energy sales and distribution costs. The amount paid for the energy consumed accounts for about half of the bill, the remainder being distribution costs.

According to the calculations of the Polish Electricity Association, the monthly bill of a typical family in the tariff group G11, consuming 1.8 MWh of electricity per month, will increase on average by about 21 PLN. Thanks to the government's so-called "anti-inflation shield" and compensations, however, the increase in the first quarter of 2022 will be less severe and will amount to only about PLN 6 per month.

Although the decision of the President of the Energy Regulatory Office concerns only the four largest energy sellers in the country, which are obliged to approve their tariffs by the regulator, the changes in electricity prices concern all sellers in Poland. Residents of other European countries are also affected by the rising costs of energy production. The widespread increase in energy prices is due to rising prices of energy raw materials and a sharp jump in the price of carbon dioxide emission allowances in the EU ETS system. Approx. Some 70% of energy produced in Poland comes from coal-fired power stations. These power plants buy CO2These prices have risen dramatically this year from around EUR 30 to as much as EUR 90 per tonne. These prices are almost 20 times higher than four years ago. As a result, the cost of generating electricity consists mainly of the cost of purchasing CO2.

Apart from the increase in the price of carbon dioxide emission allowances, the cost of energy production has also been affected by the lower production of electricity from renewable sources over the last year and by the economic recovery, which has increased demand for energy. A significant factor is also the increase in the price of raw materials, including gas, which is an important energy resource for many EU economies.

Last year, increases in electricity prices affected the inhabitants of most European Union countries. Some of them, like Poland, have decided to implement protective measures which, thanks to support systems authorised by the European Commission, will reduce the costs of price rises for households. Thanks to them, in Poland, in the first months of 2022 the costs of price rises will be reduced by around 60 per cent. The bill introducing the so-called "anti-inflation shield", passed by the MPs, has already been submitted to the Senate. Its provisions will exempt from excise duty electricity sold to households in the first months of 2022 and will reduce the excise duty rate for other consumers.