Polish prime minister unveils plan to cap energy prices

WARSAW

The Polish prime minister on Thursday announced a government plan to cap rises in energy prices.

"We present the 'Solidarity Shield' to protect Poles from the sharp, 3-4-fold, increases in energy prices," Mateusz Morawiecki told a news conference in Warsaw.

If annual consumption per household does not exceed 2,000 kilowatt-hours, energy will be set at a guaranteed price.

"I know there is high inflation, and we want to choke it. So all households without exception will have a guaranteed electricity price for up to 2,000 kWh per year. This is a saving of 150 Poland zloty (€32) per month," Morawiecki said.

Inflation in Poland has been running at over 14% in recent months.

In the case of households with at least one disabled person and those with at least three children, the price cap will be higher.

"In the case of households with people with disabilities, it will be 2,600 kWh. Similarly, in the case of 3+ families, i.e. those where there are three or more children, there is also a limit up to 2,600 kWh," the prime minister said.

Morawiecki also announced mandatory electricity savings in the state administration by 10% from Oct. 1.

He also unveiled a new support scheme worth 5-6 billion Poland zloty (€1.1–1.3 billion), covering the most energy-intensive companies.

"The package for energy-intensive enterprises is very important for supply chains," Development Minister Waldemar Buda said on Thursday.

The aid system will cover steel mills, as well as producers of glass, ceramics, and nitrogen.

Buda added that the program would start later this year, although it still needs authorization from the European Commission.