Poland's deputy climate minister assesses extension of energy shields may be needed

"The decision on the extension of these shields - in terms of the maximum price, but also probably in terms of the reduction of taxation, because the reduction of the capacity fee to zero is a de facto reduction of the taxation of energy prices - will be made after the recalculation of tariffs, which is to take place in the middle of this year, and then concrete decisions will be on the table," Motyka said.

He pointed out that prices on the wholesale market are lower than they were just a few months ago.

"But not yet so low as to guarantee these prices at a lower level than what they were before," the deputy minister of climate and environment assessed.

"Therefore, such support today provides certainty, stability and a guarantee that prices will not rise, which are the main inflation-creating medium, so we will take these measures also acting against inflation. For today, everything indicates that this support should be extended," he pointed out.

Motyka stressed that making a final decision on the matter in June, after the recalculation of tariffs, was included in the scope of action of Poland's Ministry of Climate and Environment (MKiS).

On March 10, the climate minister Paulina Hennig-Kloska told journalists that she hoped that in the last quarter of this year, the energy companies' tariffs would come down to the maximum price set by the law and no further energy price freezes would be needed.

She noted at the time that the research done at the companies shows that this is a possibility.

According to the current legislation, the maximum price of energy for households at PLN 500 (EUR 119.15) per MWh will be in force until the end of September 2025. Until June this year, the zero rate of the so-called capacity fee for households is to be maintained.

jz/ ao/