Electricity prices in 2024. The government wants to freeze rates, also for farmers! – AgroNews – Agricultural news

The government plans to extend the frozen prices, among others. electricity for 2024. The list of legislative works includes information about work on the draft act on this matter.

Without shields, electricity prices could increase by as much as 70 percent in 2024

The extension of the functioning of the protective mechanisms proposed in the amendment to the Act affects one of the most basic needs of modern societies, which is access to energy carriers. Solutions prepared in the draft act in 2024 they will ensure protection of a wide group of beneficiaries against increases in the costs of electricity, gas fuels and heat while maintaining a balance between the financial capacity of households, prices of energy carriers on the markets and the total costs of the support system charged to the state budget – emphasized in the project.

“Freezing” prices and fee rates assumes maintaining the rates at the 2022 level

The designed solution is a modified continuation of the existing support for household consumers, including support for energy consumption for needs similar to those consumed in households (e.g. common parts of buildings, garages, summer houses, collective residences).

“Freezing” prices and distribution fee rates assumes that regardless of the increase in electricity prices and distribution fee rates in the tariffs for 2024, settlements with customers provide for the stabilization of their bills for energy trading and distribution at the level of prices and tariff rates from 2022 ., in particular through:

• The obligation for energy enterprises to use electricity prices in the tariffs approved for 2022 for these enterprises in settlements with household customers in 2024, or – in the absence of approved tariffs for 2022 – average prices from the approved tariffs to be used for 2022 for four ex officio sellers, within the limit.
• Obligation of distribution system operators in settlements in 2024 with household customers to use the rates applicable in the tariffs approved for 2022, within the limit.
• Introduction of a compensation system for trading and distribution enterprises, where the entity responsible for paying compensation will be the Settlement Administrator SA

The regulation in question guarantees the use of electricity prices and distribution fees from 2022 in settlements with customers for supplies in 2024, within the limit of 3 MWh.

Energy prices: Additional support

Additional support was also provided for households conducting agricultural activity, families with a Large Family Card, as well as disabled people, for whom the limit of preferential electricity consumption was increased from 3 to 4 MWh or 3.6 MWh, respectively, taking into account their increased needs for electricity consumption. If the above recipients will acquire rights to an increased preferential limit of electricity consumption (4 MWh or 3.6 MWh) during 2024, this limit applies in proportion to the number of months in 2024 in which they met the requirements for acquiring these rights.

Electricity – maximum price

Designed solutions for the protection of public utility entities performing services key roles public authorities, in particular in the field of health, education and family and care policy, local government units
territorial scope to the extent to which they consume electricity for the implementation of public tasks, agricultural producers, the so-called sensitive recipients and micro, small and medium-sized enterprises assume that regardless of the increase in energy prices
electricity on the wholesale market in 2024, in settlements with these customers, the price for trading in electricity is not higher than the so-called maximum price set at PLN 693/MWh. The maximum price of PLN 693/MWh will also apply to settlements for household customers after they exceed the statutory limits.

The draft amendment to the Act assumes:

• Obligation to use in settlements with the above-mentioned recipients of prices not higher than the maximum price in the period from January 1, 2024 to December 31, 2024 for the consumption of electricity at the energy consumption point in the indicated scope.
• Introduction of a compensation system for trading enterprises, where the entity responsible for paying compensation will be the Settlement Administrator SA

  Amount of compensation will be calculated by energy sellers. They will be due for each calendar month from the date the authorized entity begins to apply the maximum prices for electricity trading in settlements with eligible customers.

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  The proposed regulation also includes a procedure specifying, among others: the deadline, scope and procedure for submitting applications for compensation payment and the rules for their verification by the Settlement Administrator SA

  The support will contribute to alleviating the rising costs of purchasing electricity in the above-mentioned areas. entities resulting in particular from the increase in energy purchase prices on the wholesale market, which translates into the prices in contracts concluded by these entities with sellers for the sale of electricity.

Gas fuels – maximum price

The submitted draft law will make it possible to provide household consumers of gas fuels and entities providing key public services with supplies of gas fuels at a stable price level in 2024, under the rules applicable in 2023.

Heat – price stabilization

The regulations proposed in the draft act will ensure the extension of support for heat consumers throughout 2024 under the current rules. This means limiting the negative social effects and the risk of a significant increase in energy poverty caused by the energy crisis causing dynamic increases in heat prices.

The proposed law provides maintaining the prices and fee rates for the supplied system heat borne by these consumers at a level no higher than the prices and fee rates applicable to heat consumers on September 30, 2022, increased by 40% in each tariff group in a given heating system. For the heat recipient who is an authorized entity, this means that throughout 2024, prices and rates for the supplied heat will remain at a level no higher than the ceiling specified in the provisions of the Act.

AM/AgroNews Editorial Office