"There will be a price increase". Zero VAT only until the end of the year. As of 1 January, a crucial increase in prices

The Polish Chamber of Commerce Cieplovacja Polskie expresses concerns about the expiry of the current provisions governing the freezing of heat prices, which could consequence in a abrupt increase in prices at the beginning of the fresh year – the portal “lega artis” states. This situation is presently uncertain, as it is uncertain whether the current strategy will be extended for another year.

The current mechanics that controls heat prices is valid until 31 December. However, it is not certain that these provisions will proceed for a further period. The Chamber of Economics of Polish Heating points out that the absence of specified an extension could lead to a script which they think is rather unambiguous.

Jacek Szymczak, president of the IGCP, speaking for the ‘PB’, provides for a possible price increase which, however, may vary depending on the heating company. This suggests that specified a situation would not be uniform and price differences could vary according to the circumstantial characteristics of individual companies in the heating industry.

Heat prices. Is there a 2024 jump?

According to the mechanics for freezing heat prices for the current year, the increase in heat prices was to be limited to a maximum of 40 percent compared to the level of September 2022. However, although prices have shown a decline in planet markets, they stay higher than the mention point of 1 year ago.

It is worth noting that the fall in prices does not immediately translate into benefits for heating plants, as they have longer contracts for the acquisition of coal and gas. What we see present as a drop in natural materials prices does not necessarily translate into immediate benefits for these institutions," Szymczak explains.

According to the information contained in the article, the price of coal purchased by the Polish Mining Group is oscillating within the scope of PLN 39 per gigadżul (GJ), but offers for subsequent quarters and the coming year are oscillating by about PLN 10/GJ below. The price of coal in the planet markets is in turn around PLN 22 per GJ, excluding transport costs.

It is worth noting that the share of coal in the Polish heating sector in 2022 was 66.2 percent. Green heat sources represent only 10 percent of the Polish market, and their main origin is biomass. This proportion shows the crucial dominance of coal as the main energy origin in the heating sector.

The task was brought into the Sejm

The draft amendment to the law on the freezing of energy, gas and heat prices, which went to the Sejm, aims to extend price protection to 2024 for various groups specified as households, susceptible customers and farmers. It is the thought of the government, even though the ruling organization has no majority, which makes its admission a challenge.

In the Sejm, they propose that the existing rules be maintained at least by the mediate of next year. specified a step would aim to mitigate the price jump for consumers and would give time to make a fresh system. Their main argument is simply a change to the safeguard mechanics to aid only the most deprived, namely those experiencing energy poverty. They besides want to change ways of calculating compensation for companies so that they do not endure the consequences of these changes.

Criticism is about the current model, which does not give companies the chance to go to zero – they are always at a loss. These losses can scope even respective million zlotys, forcing companies to rapidly debt themselves to keep liquidity.

Interestingly, the Sejm again recommends reducing the temperature in heated rooms. The average temperature in Polish homes is 22 degrees in the winter, but could be reduced to 20 degrees, which would bring financial and wellness benefits to people.