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Polish government introduces new measures to tackle energy crisis

Prime Minister Mateusz Morawiecki presented new government measures as part of the “Solidarity Shield” during a press conference on Thursday. Measures aimed at freezing power prices for households and providing support for energy intensive companies will cost Poland over PLN 30 billion (EUR 6.34 billion).

Warsaw plans to freeze prices for households using up to 2000 kilowatt-hours a year. In addition, a 10 percent cut in electricity use will be rewarded with a 10 percent price cut as an additional incentive to save energy.

Moreover, the energy limit for households with disabled people, families with more than two children, and for agriculture farms will be increased to 2600 kilowatt-hours a year, as these households normally use more energy.

Combined, all these support measures are a huge cost, adding it all and including support for energy intensive companies tops PLN 30 billion,” Mateusz Morawiecki said during a press briefing.

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“After all, the security of Polish families, the security of jobs, of Poles is directly related to the security of entrepreneurs, their competitiveness, their ability to survive, especially those who consume the most energy,” he emphasised.

Companies and citizens using coal for heating have been among the most exposed to these surging prices.

Other measures

Other measures announced Thursday include mandatory savings of 10 percent on electricity use by government offices and municipal administration. Morawiecki said that 66 percent of Polish households should see unchanged power bills in the coming year.

Poland has already earmarked PLN 1.5 billion (EUR 317 mln) for coal subsidies for households and additional PLN 13.7 billion (EUR 2.9 bn) for municipalities grappling with the burden of soaring energy bills.

Separately the country has provided its state-controlled gas company PGNiG with up to PLN 55 billion (EUR 11.6 bn) of state guarantees to secure financing for liquidity. It also created a PLN 10 billion (EUR 2.1 bn) fund to compensate for the differences between gas prices on the market and those charged by the companies to household customers.

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