Prime Minister Donald Tusk announced a decision to supply relief to millions of households in Poland. Electricity prices for individual customers will stay frozen until the end of 2025. Although this decision protects consumers from sharp increases, it besides has serious financial consequences for the state and challenges for energy companies.
Current without increases by the end of 2025
During the Council of Ministers gathering on 25 June 2025 Prime Minister Donald Tusk announced the key decision of the government to extend freezing of electricity prices for households. The erstwhile solution was to expire at the end of September 2025, but the government decided to proceed it until the end of December 2025.
‘Individual electricity customers can sleep peacefully", said the Prime Minister, announcing an extension of the protective mechanism.
The maximum price remains at 500 PLN net per megawatt hour, which means real savings for the average household, even in the order of respective 100 zlotys per year.
Decision after marketplace analysis and tariff proposals
The government decision is based on data provided by Ministry of Climate, directed by Paulina Hennig-Kloska. Already in June, the Minister indicated that analysis of the fresh tariffs proposed by energy companies will be key to taking the final position.
Instead of waiting for tariff applications after 30 September, the government decided to extend the existing rates immediately.
Possible stabilisation besides after 2025
Prime Minister Tusk besides announced that the government would proceed to monitor the marketplace situation and does not exclude further freezing of prices in 2026if marketplace conditions allow. specified developments may be affected by:
- The fall in energy prices in the wholesale market, observed in fresh months,
- Mild Winterwhich reduced energy demand,
- Increase in the share of renewable energy sources (RES) in an energy mix,
- Stability of the geopolitical situationwhich reduced the prices of energy natural materials.
With these trends, the government sees a real chance for maintaining favourable conditions for consumers besides after the end of 2025.
Energy companies under pressure
In the light of existing provisions, alleged Public sellers must submit new tariffs to the president of the Energy Regulatory Office (URE). The deadline for submitting applications has been postponed of late July at the end of 2025which gives companies time to adapt to the fresh situation.
But at the same time they are in a hard position. They must:
- Cover the increasing costs of infrastructure investments and energy transformation,
- It is not possible to transfer costs to individual customers.
In this context, the analysis of their tariff proposals after 2025 will be decisive for the state's further pricing policy.
Unprotected entrepreneurs
It is worth pointing out that Price frost only applies to individual customers. Entrepreneurs and public institutions they will proceed to be obliged to pay market prices, which presently exceeds the level of 500 PLN/MWh.
That means:
- Companies – especially SMEs – request to face higher energy billswhich may affect their profitability,
- Increases in operating costs can be passed on to consumers in the form of higher prices for services and goods.
The government argues that household protection has Social priority – Households do not have the anticipation of optimizing as companies that can invest in energy efficiency or photovoltaics.
Energy shield costing the budget
Expanding the energy shield by the end of 2025 is not only a social decision, but besides a social decision. significant burden on the state budget. The difference between the marketplace price and the frozen price must be covered by public funds. Experts estimation it could mean expenditures up to PLN billion.
The Minister of Finance will face:
- Finding sources of backing for this protection,
- Budget balances with expanding expenditure on defence and social investment.
The question arises as to whether extending the shield in subsequent years will be possible without severe cuts in another areas or without expanding the deficit.
Power fee returns July 1
Despite the extension of the price freeze, As of 1 July 2025, the alleged power levy returns. This means an additional burden order several to respective zlotys per month for each household. Although comparatively small, this is an crucial component of the full cost of energy for consumers.
What's next?
Government announces Current monitoring of the energy market and readiness for further intervention, if necessary. Key will be data coming from energy companies and the situation on the natural materials markets. Although the decision to extend the frost gives breath for the coming months, long-term energy safety will require further action and compromise, both social and financial.
Continued here:
The government continues to frost electricity prices. Energy cheaper than it might have seemed.
