The Ministry of Climate has also announced that all subsidies currently in place to support less well-off households will expire from mid-2025.

To reduce the severity of the increases, the government says that subsidies will be replaced by reduced tariffs and an energy voucher, the draft law for which will be discussed on Tuesday.

A statement released by the ministry said: “Taking into account the current market conditions, it is assumed that, as a result, the tariff could be significantly reduced from the current level of PLN 739/MWh to the estimated level below 600 zlotys (€138.2)/MWh.”

“Additionally, it was assumed that the maximum price for electricity would be extended in the period July-December 2024, at the level of 500 zlotys (€115.7)/MWh for households (moving away from the mechanism of freezing prices and fee rates) and at the level of 693 zlotys (€160)/MWh for local government units and public utility entities, as well as the SME sector.”

The situation would be similar with gas, with a lack of protective state measures meaning that from July 1, 2024, consumers would be hit with a bill 15% higher than in the first half of the year.

Between January 1 and June 30, 2025, this is expected to increase by 30%.

A ministry statement said: “the increase in prices is a consequence of the expected increase in the single-element price resulting from the maximum prices and rates.”