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POLAND FREEZES GAS PRICES IN 2023 FOR HOUSEHOLDS, SCHOOLS, HOSPITALS AND
CHURCHES

Dec 21, 2022 | Business, Energy & Climate, Politics, Society

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President Andrzej Duda has signed into law a freeze on gas prices for households
as well as certain other entities, including hospitals, churches, schools and
nurseries. However, unlike a previously introduced cap on electricity prices,
the new measures do not apply to small and medium-sized enterprises.

“The law aims to further minimise price increases for the most vulnerable
customers, as well as to increase the country’s energy security,” the
president’s chancellery wrote in a statement.



In 2023, gas sellers will be obliged to apply a maximum price of 200.17 zloty
per MWh, the same as the maximum for 2022. Without the new law, the maximum
price would have risen to 649,9 zł/MWh. Distribution charge rates will also be
frozen at 2022 levels.

The law also introduces a VAT refund on gas for households that use it as their
main source of heating and whose average monthly income does not exceed 2,100
zloty (€449) for one-person households and 1,500 zloty (€321) per person for
multi-person households.

The climate ministry estimates that around 300,000 people will be able to
benefit from the VAT refund. The new law as a whole – including the price freeze
– will cost the government an estimated 30 billion zloty (€6.4 billion) in 2023.

> Polish parliament approves caps on coal and electricity prices



All political groups in parliament voted in favour of the law earlier this month
apart from the far-right Confederation (Konfederacja), whose MPs abstained.

During parliamentary work, the opposition sought to extend the law to also cover
micro, small and medium-sized enterprises. The ruling Law and Justice (PiS)
party, however, rejected that change. According to deputy finance minister Artur
Soboń, extending the gas price cap to companies “would be going too far”.

KZRSS Społem, a co-operative that represents 120 bakeries – businesses which are
particularly sensitive to rises in gas prices – has warned that rejection of the
amendment could see bread prices triple in the space of a few weeks.



“Not only does the fate of thousands of Polish bakers depend on your decision,
but above all whether, from 1 January 2023, the poorest and most vulnerable
Poles will be able to afford bread,” said KZRSS Społem, quoted by Dziennik
Wschodni.

Poland, like other European countries, has faced soaring energy prices this
year, triggered in particular by the fallout from Russia’s invasion of Ukraine.
Last month, energy prices were 36.8% higher than a year earlier.

The government has introduced a number of measures aimed at easing the burden of
rising prices, including offering allowances for coal and other fuels, delaying
the phasing out of coal for electricity generation, freezing electricity prices,
and encouraging reductions in energy usage.

> Inflation dampens Poles’ Christmas cheer



Main photo credit: KWON JUNHO / Unsplash 

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Alicja Ptak

Alicja Ptak is senior editor at Notes from Poland and a multimedia journalist.
She previously worked for Reuters.






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Senior Research Fellow at the Global Europe Centre, University of Kent.

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politics and history.

Stanley has spent more than ten years living in Poland, mostly based in Kraków
and Bielsko-Biała. He founded Notes from Poland in 2014 as a blog dedicated to
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He is the Chair of the Board of the Notes from Poland Foundation.

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Maria Wilczek is deputy editor of Notes from Poland. She also contributes
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Times, Politico Europe, The Spectator and Gazeta Wyborcza. She was previously
Marjorie Deane fellow at The Economist in London (2018) and a business
consultant at the Boston Consulting Group in Warsaw. Maria is a graduate of the
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UNESCO Professor at the Jagiellonian University and Professor Emeritus at
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