“There will be financial shortfalls.” Nearly PLN 8 billion was missing for energy subsidies

At the end of last year, the government adopted solutions regarding ring-fencing mechanisms regarding energy prices. However, it turns out that almost PLN 8 billion was missing for electricity and gas subsidies. However, there is a way out of this situation.

The aim of the law is to limit the impact of increases in the prices of electricity, gas and heat on the most sensitive customers of these products, including recipients who are households, during the period from January 1, 2024 to June 30, 2024. . , local government units and public utility entities. This goal should be achieved by maintaining the current protection of the most sensitive electricity, gas and heat consumers, compensation for energy and heating companies, and introducing additional solutions to correct those currently used.

Will there be no money for subsidies?

However, according to money.pl, the government has encountered serious problems with the source of financing for the shields intended to protect Polish families from energy price increases. There was a legal loophole in the regulations left by the cabinet of Mateusz Morawiecki.

“The then government already knew that the budget for this purpose had a deficit of PLN 7.9 billion. Therefore, the legislation introducing the shields included a mechanism that allows funds to be disbursed outside the budget. According to experts, this was a pitfall for the current government,” we read on the website.

The Ministry of Climate and Environment told journalists that revenue from energy companies’ profits did not provide sufficient resources to cover the need to finance protective shields. Therefore, the law prepared by the previous government included a provision allowing financing from the COVID-19 Countermeasure Fund.

– The current government had no choice but to finance expenditure on subsidies to freeze the prices of energy, gas and heat, because there was no money for this in the adopted budget – said Paweł Wojciechowski, former Minister of Finance.

Source: Do Rzeczy

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