New tariffs for electricity and gas were approved for 2024. Gas and energy by 30% cheaper

The president of the Energy Regulatory Office has just approved fresh tariffs for the sale of electricity and distribution gas for key energy sector entities specified as PGNiG Retail Trading and Polish Gas manufacture Company.

Despite the lower fares, home recipients will not see a simplification in their bills. Despite falling tariffs, they are inactive higher than the level at which they were legally frozen the erstwhile year and will proceed to be maintained until the end of June 2024.

President URE consulted and approved tariffs on the sale of electricity to 4 main sellers of the office: PGE Turnover, Tauron Sales, Enea and Energia Turnover. In addition, the regulator approved tariffs for the 5 largest energy distributors: PGE, Tauron, Enea, Energia and Stoen Operator.

Electricity up to 30% cheaper

In view of the observed price decreases in the wholesale marketplace compared to the prices resulting from contracts concluded in 2022, president URE approved fresh energy prices in seller tariffs for 2024, which are lower by awesome 31.3% compared to tariffs approved for 2023.

At the same time, it is worth noting that the distribution tariffs slightly, on average by about 2.9 percent year-on-year, show small growth. This phenomenon is due to the request for investments by enterprises liable for network infrastructure, who are obliged to invest in expansion and modernisation of transmission and distribution networks. In addition, the increase of the transmission strategy operator's fees, i.e. Polish Power Networks, and general inflation, besides influence the level of distribution tariffs.

It is worth noting that, despite the approval of the tariffs for 2023, they were not actually utilized to settle with the recipients due to the alleged statutory price freeze. Recipients pay fixed amounts of PLN 412/MWh to certain energy consumption limits this year and above those limits of PLN 693/MWh. Rafał Gavin, president of the Energy Regulatory Office, emphasises that although approved tariffs for 2024 are lower than those for 2023, this does not mean a circumstantial simplification in the accounts for the customers covered by the freezing of prices, including tariff tariffs. This points to crucial aspects related to the regulatory context and the actual impact of tariffs on energy costs for consumers.

Gas will be cheaper in 2024

The president of the Energy Regulatory Office has just approved fresh tariffs for the largest players in the sector gas, i.e. PGNiG Retail and Polish Gas Company. These tariffs find the charges for the distribution of gas fuels to different client groups and distribution areas.

In short, the tariff for gas distribution from the Polish Gas Company provides for an average increase of distribution fees of about 5% compared to the erstwhile year. These rates vary by tariff group, distribution area and kind gas. For example, for any groups specified as W-1.1 or W-2.1, average fee rates increased by 5.17% and 4.56% respectively.

However, gas prices to customers benefiting from PGNiG IP tariffs were reduced by about 34% compared to erstwhile rates. This means that for tariff groups W-1.1, W-2.1 and W-3.6 prices will fall to PLN 318.14/MWh from erstwhile PLN 484.47/MWh.

It is worth noting that although the tariffs for 2023 were not applied, due to the freezing of prices, the customers paid 200.17 PLN/MWh for gas this year. The now approved tariffs for 2024 are lower than those for 2023, but do not mean a simplification in the accounts for the customers covered by the price freeze.

Interestingly, work on a bill extending the freezing of energy and gas prices for the first six months of 2024 has just ended in parliament. This means that by this period the maximum prices of 2023 will apply, which was initiated by the Act of December 2022 concerning the peculiar protection of certain gas fuel customers in 2023.