Electricity, gas hikes to hit Polish households

Gas bills are poised to rise by 54 percent. Wojciech Olkuśnik/PAP

Electricity bills will rise by about 24 percent net and gas bills will surge by 54 percent net next year after Poland's regulator approved new tariffs as power producers struggle with high prices for natural gas and EU CO2 emission rights.

Poland's energy regulator, the URE, announced the decision on Friday.

The new tariffs mean that "from January 1, 2022 an average total increase of an average household... will be 24 percent compared to 2021," the URE said.

Among the reasons for the raise, the URE named rising prices of future contracts for electricity and the soaring prices of the EU's CO2 emissions, which tripled between May 2019 and November 2021.

Gas bills are poised to rise even more, by 54 percent.

"The continuing increases in gas prices on the Energy Commodity Exchange... is the main reason for the rise of prices for individual consumers," URE said.

The government has introduced some relief measures for gas consumers, including a lower VAT rate, but those are unlikely to offset the hikes and will expire after the first three months of 2022.