According to data from the Central Statistical Office, in 2023, despite the Solidarity Shield, the average annual increase in energy prices on the retail market amounted to 17.5%. According to data from the largest electricity distributors in Poland, the average rate for 1 kWh in the most popular G11 tariff in the first half of 2024 will be approximately 90 groszy gross. After exceeding the consumption of 1,500 kWh, it is approximately PLN 1.3 gross. This is practically double the 2022 rate and poses a serious threat to household budgets.
- According to forecast calculations, the largest increases in electricity prices and increased energy bills may affect households that consume approximately 1,500 kWh annually. Their bills may increase by up to 80%. after June 30, 2024
- In turn, larger families that consume approximately 4,000 kWh per year are talking about a four-person family in a house with an area of approximately 150 m2.2 they will probably have to take into account an increase in electricity bills of approximately 57%. in the second half of 2024
- It is worth noting that PLN 0.41 per 1 kWh is a frozen price that we have been using since last year, and this privilege will be available to us only until June 30, 2024. To this rate we must add the cost of distribution and VAT, which according to the tariffs presented by the largest electricity sellers will amount to approximately PLN 0.90 gross per kWh.
- The next six months, despite the lack of decline in energy prices, are relatively stable for Poles. We will not notice any changes until mid-year, because this will be the time when a similar rate for 1 kWh applies compared to 2023.
- Most households in the country are within the statutory limit of 1,500 kWh or 2,000 kWh, and the biggest changes in energy price increases occur only when it is exceeded.
- The announcement of the Ministry of Environmental Protection shows that the aid will be directed to energy-poor social groups. It is also not known whether the freezing of electricity prices will cover farmers and large families from July to December 2024 – we can only wait and watch.
Unfortunately, despite the extension of the Solidarity Shield, users still have to take into account high electricity prices. It is worth noting that PLN 0.41 per kWh is a frozen price that we have been using since last year, and this privilege will be available to us until June 30, 2024.
To this rate we must add the cost of distribution and VAT, which, according to the tariffs presented by the largest electricity sellers, will amount to approximately PLN 0.90 gross per kWh.
The next six months, despite the lack of decline in energy prices, are relatively stable for Poles. We will not notice the changes until the middle of the year, because this will be the time when a similar rate for 1 kWh applies compared to 2023. Most households in the country are within the statutory limit of 1,500 kWh or 2,000 kWh, and changes only appear when it is exceeded.
In 2-3 weeks we will know who will be subject to the freezing of electricity prices until December 2024.
At the moment, there is no clear answer as to what electricity rates will be like in the second half of this year. The government announces that it plans to systematically introduce market rates for energy. In 2-3 weeks we will learn about another project on freezing electricity prices.
The announcement of the Ministry of Environmental Protection shows that the aid will be directed to energy-poor social groups. This meant that the income criterion may play the greatest importance when freezing energy prices from July 2024. It is also not known whether the freezing of electricity prices will cover farmers and large families from July to December 2024 – we can only wait and watch.
The same applies to households that consume only 1,500 kWh per year and have been automatically subject to freezing energy prices. Here, too, the income criterion will be decisive, determining whether the Ministry of Infrastructure and Environment will classify a given household as energy poor.
The forecasts will be more specific after the end of the winter season, which is currently taking its toll and the demand for energy is growing.
Will household electricity bills increase by up to 80% after electricity prices are unfreezed?
However, according to forecast calculations, the largest increases in electricity prices and increased energy bills may affect households that consume approximately 1,500 kWh annually. In their case, electricity bills may increase by up to 80%. after June 30, 2024
In turn, larger families and farmers (using electricity only for private needs and not for agricultural activities)which consume approximately 4,000 kWh per year, we are talking about a family of four in a house with an area of approximately 150 m22 they will probably have to take into account an increase in electricity bills of approximately 57%. in the second half of 2024
According to the WiseEuropa report: Energy poverty, pensioners spend the most on energy in relation to their disposable income (18%). Their situation is significantly influenced by changes in energy costs. According to estimates, as many as 25% of this group may be energy poor.
It cannot be denied that increasingly higher energy prices are caused by the postponed energy transformation and the geopolitical situation. Unfortunately, with the withdrawal of the program freezing energy prices, the phenomenon of energy poverty will become more pronounced, which, according to the definition, concerns households that cannot provide a sufficient level of heat, cooling and electricity in the building they live in.
What is energy poverty?
The latest data provided by the Central Statistical Office show that as many as 10.8% of households in Poland face energy poverty. In order to better illustrate this problem, it is worth referring to the results of a study conducted this year by the Masovian Center for Social Policy.
Energy poverty – relative poverty, in which a household cannot afford energy or energy services to meet its basic daily needs: heating/cooling, cooking, lighting, etc. – as defined by Wikipedia.
It shows that as many as 7.1% of respondents are unable to meet their basic energy needs. However, 38.1% meet these needs, but must implement them in a very economical way.
Freezing energy prices does not work in the long term. We should take systemic actions that will help us eliminate the phenomenon of energy poverty, in which less wealthy people and seniors suffer the most. Insulating buildings, replacing installations, especially in multi-family buildings, such as apartment blocks from the 1980s, are just a few of the necessary steps that should be taken. In the fight against the problem, improving the technical standard of buildings and the level of their energy efficiency is absolutely essential – explains Tomasz Walczak, CTO of Euros Energy.
Undoubtedly, this fight requires a nationwide strategy and a permanent, long-term support system and, above all, subsidies for investments related to improving energy efficiency. It is still necessary to promote energy-efficient construction. According to the report, as many as 16.9% of Masovia’s inhabitants live in uninsulated buildings.
Currently, Poles can take advantage of several programs proposed by the state, including: “Mazowsze for clean heat” and those created by entrepreneurs, including: FREE modernization that transforms residential blocks into completely energy-independent and self-sufficient facilities with an individual heat source based on renewable energy sources. In order to minimize this phenomenon, it is first of all necessary to modernize the central heating system in old blocks of flats and houses, both single and multi-family.
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