President signs bill capping electricity prices throughout 2019

Polish President Andrzej Duda has signed an amendment to the act regulating energy prices that would freeze electricity prices throughout 2019 for households, micro and small businesses, hospitals and public sector finance units including local government offices, the president’s office stated on Friday.

These clients, with the exception of households, will have to submit a special declaration on compliance with statutory requirements.

The enforced changes would mean that throughout 2019, prices will not increase for 15.1 million households, Energy Minister Krzysztof Tchórzewski had said earlier.

He added that, from July 1, the capped prices would also cover around 1,000 hospitals, 61,400 public sector finance institutions including local government bodies, almost two million micro-enterprises and 57,000 small businesses.

Minister Tchórzewski stated that because of the amendment to the act all electricity consumers will save PLN 8 billion (EUR 1.88 bn) during 2019.

However, from July 1, electricity sellers will no longer be required to offer electricity prices at the level of June 30, 2018, to medium and large enterprises.

The explanatory memorandum of the amendment indicates that given the situation on the wholesale electricity market throughout Europe, there is a high probability that from July 2019, electricity sellers will charge medium and large enterprises more for electricity.

For medium and large enterprises, the bill introduces the possibility of applying for partial compensation for electricity consumed, within the EU framework. This compensation is limited to EUR 200,000 in three tax years.