22.11.2021

December 17. About the day when the light goes out in Poland

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Adam Wlizło

Member of the Board

40% increase in electricity prices in our homes? Media inform that the largest energy sellers in the country expect such growth.

We will probably find out what level of increases we will actually face next year on Friday 17 December - this is the last day on which the President of the Energy Regulatory Office may decide to approve the tariffs so that the new prices will apply from the first day of the new year. Considering the scale of the planned increases, the lights will go out in many Polish houses.

How is it with these prices? Is the so-called ex officio sellers (they are subject to the obligation to set prices with the President of the Energy Regulatory Office) have a basis to demand such high prices?

When applying for a price change, sellers present to the President of the ERO calculations in which they show the actual costs incurred by them (the so-called justified costs of purchasing energy, property rights, excise duty and service) and the assumed margin level. The two most significant price drivers: energy and property rights, recorded record increases in wholesale markets this year, and they are directly responsible for the price levels we will face next year. Remember, however, that a 40% increase in energy prices translates into a 20% increase in the total bill (approximately half of the total amount is related to the supply of energy to our homes - in this area there is not such a huge increase as in the case of the bill itself. energy).

Now everything is in the hands of the President of the ERO - we are waiting for his decision. It is unlikely that he will agree with the sellers' original demands. However, it should not be expected that the increases will be lower than 20% - after all, the role of the President of the ERO is to balance the interests of the parties, both consumers and sellers.

The highly probable scenario is that energy companies, faced with a real loss on the sale of energy to households (this will certainly occur if tariffs with a price increase lower than 40% are approved), will try to recover money in other sales areas. We will be encouraged more than usual to take advantage of super promotional offers bundled with a price guarantee, plumber and insurance. Let us approach this type of offer with caution - they are usually much more expensive than the tariff prices (an additional commercial fee is often added, which is not present in the case of tariffs approved by the President of the ERO). Remember that the purpose of selling such offers is to repair the portfolio of sellers, not buyers.

Small entrepreneurs who buy energy based on standard price lists, which already reach the level of PLN 600 / MWh (at the beginning of this year, prices were around PLN 430-470 / MWh, of course in a package with an additional trade fee, of course) will also get some access. I am talking about accountants, hairdressers and other types of small business activities that rarely decide to switch suppliers.

Behind the little interest in switching the supplier is the fear of problems with the electricity supply and incorrect invoicing, as well as the trust placed in the existing sellers, which, unfortunately, is often weakened as a result of increasing, often unjustified, increases. In fact, switching vendor is very simple, usually safe and saves you a lot of money. It is worth getting a few offers from the market and considering changing the seller. When deciding to buy electricity from a new supplier, pay attention to its credibility, in particular its financial condition and reputation (the market regulator has already received several concessions for the sale of electricity this year due to the sellers' financial problems).

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Are you an entrepreneur? Are you interested in securing energy and gas prices for 2025 and subsequent years? Are you watching the situation on global markets with concern and wondering how the possible development of the geopolitical crisis may affect media prices?

Enfree Webinar - Discover Savings: Strategies to Reduce Energy and Gas Costs.

June, 6th 2024 | 11:00 - 12:00


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Arkadiusz Somnicki and Adam Wlizło will present proven strategies and innovative solutions that generate real savings.

The agenda includes,among others:
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💡The future of energy prices: the role of photovoltaics in shaping the market.
💡Q&A session.

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