Changes to energy legislation in Poland

On 10 December 2021 there entered into force the amendment of the Polish law on energy. The changes introduced by this amendment, which relate to the principles of tariff calculation, aim to avoid the risk of a single cumulative increase in gas prices for households in 2022, while ensuring that gas sellers can cover their costs of purchasing gas for their customers in the long term. As a result, household gas prices may fall at some point, but revenue will be recovered in subsequent years by applying prices that take account of such latent costs. This means that gas prices in these years will be higher than the current cost of buying this fuel, even if wholesale gas prices fall again.

New tariff system

The new mechanism incorporated to the tariff system is a one-of-a-kind solution deriving from the existing state of the national and European gas markets. It assures that gas sellers can carry forward the present rise in raw material purchase prices over the next few years rather than simply factoring them into the tariff as it is now calculated. Until 30 June 2022, gas sellers may submit to the President of the Polish Office for Energy Regulation a gas sales tariff for households calculated only on the basis of a proportion of the justified costs, i.e. a proportion of the gas procurement costs. On the other hand, the seller will be able to cover the part of the costs not included in the current tariff for the next three years, i.e. until the end of 2025, either from the tariffs applicable from the beginning of 2023, or from the prices and charges set on competitive markets.