Electricity prices for local governments will not fall for now. The government is throwing up its hands

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Electricity prices for local governments will not fall for now. The government is throwing up its hands

Electricity prices for local governments will not fall for now. The government is throwing up its hands
  • The Ministry of Climate and Environment did not present a proposal regarding the maximum energy price, citing the lack of consent from the Ministry of Finance.
  • Some local governments currently pay as much as PLN 1,200 per 1 MWh and - as the local government website indicates - they desperately need support.
  • The local government side accuses the government of arrogance and announces further pressure for specific actions.

The June Joint Government and Local Government Commission had on its agenda the issue of setting the maximum price of electricity for local government units . It was expected that the Ministry of Finance or the Ministry of Climate and Environment would present specific proposals to local government officials. However, this did not happen.

Aleksandra Świderska, director of the energy department at the Ministry of Climate and Environment, explained that she could not, on behalf of the ministry, present a clear position regarding the freezing of energy prices for local governments, because they had not received confirmation from the Ministry of Finance that it was possible.

Considering the excessive deficit procedure we are in and the stabilization of the expenditure rule, we cannot take any step without the express consent of the Minister of Finance, which we have not received yet.

- she argued.

Maximum electricity prices are not a big burden for the state budget

Let us recall that the maximum price of electricity for local governments in the first quarter of this year was PLN 693/MWh. Since April 1, cities that signed multi-year contracts for electricity supply during the period of drastic jump in electricity prices are now paying as much as PLN 1,200 per 1 MWh and - as the local government website indicates - are in desperate need of support.

Świderska admitted that setting a maximum price for the state budget would not be a big burden. - Based on data for the first quarter of 2025, we can expect how much support would cost in the three remaining quarters. It would be a relatively small cost of PLN 80 million - she explained.

Andrzej Ciopiński from the Ministry of Finance said that the ministry has not yet made a final decision on this matter.

We would rather be inclined to maintain the solution that is currently in place, which was also a kind of compromise or a response to the needs of local governments. I am talking about extending the shield to the first quarter of this year

- Ciopiński argued.

Arkadiusz Chęciński, co-chair of the KWRiST and the mayor of Sosnowiec, was outraged by the passivity of the Ministry of Finance in this matter.

Some local governments pay outrageous amounts for electricity and, just so everyone understands, we are talking about tens of millions of złoty, which can be a huge problem for small local governments.

- he pointed out.

In his opinion, the point about setting the maximum price for electricity should not be on the Commission's agenda at all, but since the government side included this point, then - as he promised - the local government side will ask about it during each meeting.

Curiosity and arrogance - local government officials are not satisfied with the government's actions

The plenipotentiary for legislation and secretary of the local government side of the KWRiST, Marek Wójcik, stated in turn that the actions of the Ministry of Climate and Environment in this matter can already be called arrogance. - We kindly ask you to review your attitude in this respect - he appealed to the government side.

Świderska indicated at the time that the ministry was also considering including the Ministry of State Assets in the discussion, which could "force" energy companies to lower their prices. And at the moment, local governments can themselves put pressure on energy suppliers, who, when "appropriately pressed," will lower their rates.

At these words Chęciński wrung his hands.

At a time when we want to reach an agreement, saying that if local governments protest, the energy company will give in is ridiculous.

- he concluded.

He also added that the Ministry of Assets cannot impose on energy companies a reduction in prices for local governments.

The local government side repeated its appeal to the government to prepare a specific proposal in the coming weeks regarding setting the maximum price for local governments, thus closing the discussion.

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