The Energy Regulatory Office has the first proposals on energy prices for 2024. According to media reports, the included increases will be “significant”.
The chairman of the Energy Regulatory Office (URE) received the first requests from companies about household energy prices for next year. The increases included will be “significant”, according to information from the Business Insider (BI) portal.
Experts cited in the material estimate increases will reach 70%. or more, but Poles may not be affected if the new government maintains subsidies on electricity bills.
According to information from BI, the first applications were submitted to the regulator on Friday. The full set of documents must be delivered to the Energy Regulation Agency by the end of the day on Tuesday. Four companies controlled by the Ministry of Finance must submit tariffs for approval: Polska Grupa Energetyczna, Enea, Tauron and Energa. “None of them officially inform about the proposed prices, but the companies admit that the rates will be higher than Poles see on their bills today,” we read in the article.
Electricity bill next year. Poles will pay more
– The increases will be significant – said a representative of one of the energy companies, quoted by Business Insider. Experts estimate that the increase in the energy price itself, which accounts for about half of the entire electricity bill, could be as much as 70%. or more.
“According to PGE, the average price of contracts for 2024 in the first half of the year was 738 PLN/MWh. This is definitely more than what households pay today – the frozen rates are around 414 PLN/MWh. Stock prices fell below PLN 700, but “they still remain above the PLN 600/MWh mark. Experts have no doubt that rates could increase by 70 percent or more, also taking into account the increase in the operating costs of the companies and their margins,” the portal wrote.
Santander BM analyst Paweł Puchalski warns that it is currently more difficult to estimate next year’s rates than in previous years. He points out that the exchange obligation has been abolished and that electricity sellers no longer record energy in annual contracts on a scale as in previous years.
– Looking at the exchange rates in the contracts for 2024, the rates should be higher than 600 PLN/MWh. However, it is not known what tariffs the chairman of the Energy Regulatory Office will ultimately agree to and whether the new government will decide to freeze electricity prices further, Puchalski told Business Insider.
The new government will make the decision
How much we will pay for electricity in 2024 will in practice be determined by the new government, which may introduce protective shields. Such mechanisms are operational this year and as a result, we do not see on our bills the real rates approved a year ago by the Chairman of the Energy Regulatory Office for energy companies, the portal points out.
It reminds that the officially approved tariffs for households for 2023 are record-breaking and range from PLN 1,057 to PLN 1,130/MWh. This is the result of the energy crisis and a sharp increase in electricity prices on the stock exchange in 2022, mainly due to unrest in the gas market across Europe.
Source: Do Rzeczy
Roy Brown is a renowned economist and author at The Nation View. He has a deep understanding of the global economy and its intricacies. He writes about a wide range of economic topics, including monetary policy, fiscal policy, international trade, and labor markets.
