At the beginning of the new year, we are facing electricity price increases. Experts say that this is a foregone conclusion and that both businesses and households have to reckon with higher electricity prices.
In November, the President of the Energy Regulatory Office (URE) received applications from the largest energy suppliers in Poland, i.e., PGE, Enea, Energa and Tauron, with proposals of electricity price increases in 2020. The information that the aforementioned companies are proposing energy price increases of approximately 40% has been leaked to the public. Will this happen? It is highly likely.
Does history like to repeat itself?
At the end of 2018, the situation was similar. Suppliers also submitted applications to the ERO with a proposal to increase electricity prices, but it did not materialise. All due to the government, which almost at the last minute passed a law freezing electricity prices for households. In addition, a guarantee of electricity prices at the level in force in June 2018 was also offered to micro and small entrepreneurs as well as farmers, hospitals and local government units, but only if they submitted a final customer declaration by 13 August. Upon positive acceptance of such an application, the government granted them a subsidy for the purchase of electricity.
In 2020, companies will no longer receive this type of assistance. The government is unlikely to subsidise electricity prices for households anymore, as last year’s energy price subsidy cost it as much as PLN 4 billion. That is why individual consumers should already bear in mind that electricity prices will go up.
Experts believe that it is impossible to avoid increases. Even if the government decides to freeze electricity prices once again, it cannot continue indefinitely. The later consumers feel it, the worse for them, because then it will be a huge jump for them.
Why is energy getting more expensive?
The main culprit is the Polish energy model, most of which is based on coal. As a result, suppliers have to buy CO2 emission rights on energy exchanges. These rights are becoming more expensive every year. Therefore, until the decarbonisation process begins in Poland, low energy prices will remain just our pious wish.
The only way to avoid high electricity prices is to invest in renewable energy sources. Solar energy is one of them. We encourage you to contact our advisors, who will help you choose your installation.