Anna Moskwa told a press conference that under the new regulations district system heating cost hikes would be capped at 40 percent.
Radek Pietruszka/PAP

Poland’s energy market regulator URE will block price hikes on district system heating, the climate and environment minister said on Friday.

Anna Moskwa told a press conference that under the new regulations district system heating cost hikes would be capped at 40 percent.

She said the new laws were part of a complex legislative package addressed to all heating users.

She added that energy costs were driven by rising gas and coal prices, and announced government compensation to heating plants who had planned to raise their tariffs above 40 percent.

Moskwa also said that the state budget cost of the extra heat tariff protection for households is estimated at over PLN 9 billion (EUR 1.9 billion).

Earlier on Friday, Moskwa said Poland will offer a one-off allowance to all households with heating sources not covered with tariffs, with the subsidies to amount to PLN 3,000 (EUR 638) for pellet users, PLN 2,000 (EUR 425) for heating oil, PLN 1,000 (EUR 212) for timber and up to PLN 500 (EUR 106) for liquefied petroleum gas (LPG).