Lower house passes bill limiting district heating prices

The Sejm, the lower house of the Polish parliament, has passed an amendment that puts a cap of 40 percent on increases in district heating prices.

The bill gained the overwhelming support of 441 MPs in the 460-member lower house on Thursday night, with eight abstentions.

The 40-percent rise cap applies to individual consumers, with the reference price being set as of September 30, 2022. The regulation will be in force between February 1 and December 31, 2023.

Heating companies will be reimbursed for the difference between their actual cost and the capped increase. The total compensation for heat producers has been raised to PLN 14.5 billion (EUR 3.08 billion) by the Thursday amendment from PLN 10 billion (EUR 2.12 billion) set in the original bill of September 2022.

Heating prices have soared owing to steep rises in the prices of energy as economies emerged from coronavirus lockdowns and had limited access to fuels due to sanctions imposed on Russia for its invasion of Ukraine.