Curbing energy prices will cost Poland more than 30 billion zlotys-BM

Curbing energy prices will cost Poland more than 30 billion zlotys-BM

WARSAW (Reuters) – Prime Minister Mateusz Morawiecki said on Thursday that measures aimed at freezing electricity prices for households and providing subsidies for energy-intensive companies would cost Poland more than 30 billion zlotys ($6.35 billion).

The country plans to freeze prices for households using up to 2,000 kWh per year. Additionally, a 10% reduction in electricity use will be rewarded with a 10% price reduction as an incentive to save energy.

“Combining all these support measures is a huge cost,” Morawiecki said at a press briefing, adding it all, including subsidies for energy-intensive companies exceeding 30 billion zlotys.

Like all members of the European Union, Poland has felt the pinch of the energy crisis. The state protects homes by regulating gas and energy prices, but companies and Poles who use coal for heating were among the most vulnerable to price hikes.

Other measures announced on Thursday include a mandatory 10% savings on electricity use by government offices and municipal administration. Morawiecki said 66% of Polish households will pay their electricity bills unchanged next year.

Poland has already earmarked 11.5 billion zlotys for coal subsidies for homes and an additional 13.7 billion for municipalities battling the burden of high energy bills.

Separately, the state-controlled gas company PGNiG provided up to 55 billion zlotys of state guarantees to secure funding for liquidity and created a fund of 10 billion zlotys to compensate for the difference between market gas prices and those that the company charges for domestic customers.

(1 dollar = 4.7242 zlotys)

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