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Quarrel in the government. There is no consensus on electricity prices

There is no agreement in the government on further actions regarding electricity prices. The Ministry of Climate and Environment has prepared a draft act, but other ministries have raised numerous objections to it.

The government still does not have full agreement on electricity prices in the second half of 2024. It is true that the Ministry of Climate and Environment has already prepared a draft of the measures, but other ministries and even the Office of Competition and Consumer Protection have raised numerous reservations. – Business Insider reports.

Electricity prices in 2024

Let us remind you that currently the electricity price freeze applies only until the last day of June and up to the limit of 1,500 kWh for households. Thanks to this, we pay PLN 412 per MWh, although market prices are approximately 739 MWh. If such amounts came into force in the second half of the year, it would mean higher bills for Poles by up to 70%.

Meanwhile, the Ministry of Climate and Environment has prepared a draft law that is intended to solve the problem of energy prices. In total, three mechanisms were prepared. The first is to freeze the price at PLN 500 per MWh for households. The second is an energy voucher in the amount of PLN 300-600 for those most in need.

The third pillar of the Ministry of Climate's project is the obligation of energy companies to set new tariffs from July until the end of 2025. This idea raises the greatest controversy and opposition from the interested parties themselves. PGE, Enea, Energa and Tauron mostly bought energy last year, when rates were much higher. This is why the tariff for the second half of the year is higher than current exchange prices.

Other ministries also have problems with the bill. According to the Ministry of Finance, the costs of implementing all the ideas were incorrectly calculated. An additional PLN 1.8 billion was found, which was not included in the act. In turn, the Ministry of Family, Labor and Social Policy draws attention to the need to adapt IT systems to efficiently award energy vouchers.

However, the Office of Competition and Consumer Protection reminds that reduced energy prices can no longer apply to small and medium-sized companies, at least without the provisions on state aid. Previously, it was possible because the European Union allowed it, but at the end of 2023 this was no longer true.

Therefore, the final shape of the draft act of the Ministry of Climate and Environment will be decided almost until the very end. We are still not sure what the new regulations will ultimately look like.

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