Has the polish energy storage electricity price policy been adjusted

Should energy and gas prices be phased out in Poland?

We estimate that the around 80% price overhang for the energy component of the electricity bill and around 60% for natural gas can be phased out gradually in order to smooth the upward pressure on other prices. Poland needs electricity and gas price adjustments, but not another shock.

Does Poland need electricity and gas price adjustments?

Poland needs electricity and gas price adjustments, but not another shock. Therefore, unless market prices decline substantially, the authorities will be forced to undertake further measures to contain the scale of the energy price adjustments from July 2024 onwards. We expect the adjustment to take place in several steps.

How will Poland's electricity price freeze affect inflation?

Poland’s new government has decided to extend the electricity and natural gas price freeze to households by six months - until mid-2024. This decision prevents an abrupt upward price adjustment, but gradual hikes are pending. This will affect next year’s inflation path and possibly reduce the central bank's readiness to cut interest rates

What happened to electricity prices in Poland in 2022-23?

The household increase in electricity and natural gas prices was contained in 2022-23 as tariffs to households were frozen at 2021 levels, which still remain regulated in Poland. In September 2022, the energy price in the electricity tariff was frozen at PLN412/MWh for 2023 for annual consumption below 2500MWh per household.

What is Poland's energy policy?

Poland’s energy policy aims to decarbonise its electricity supply and increase electrification, while maintaining electricity security and affordability for consumers. The number of prosumers – those who both consume and produce power - is expected to increase rapidly to 1 million in 2025.

How did Poland deal with high energy prices in 2021?

Poland’s former government enacted policy measures to mitigate the effects of high energy prices, especially the rise in natural gas prices driven by Gazprom in late 2021, and after the outbreak of the Russian war in Ukraine in February 2022.