Warmer, warmer, getting warmer

The ongoing energy crisis is translating into end-user prices and regulatory interventions, not only in electricity and gas. The heating sector is also facing major changes, and the legislation is the beginning of these changes, analyses mec. Joanna Bernat, partner at BWW & Wspólnicy law firm.

The compensation mechanism for heat, introduced by the law of 15 September 2022, has not worked in practice. Therefore, on 8 February 2023, this law was amended by the Sejm and awaits the President’s signature. The new heating subsidy rules enter into force at the beginning of March this year and are expected to remain in force until the end of 2023.

They guarantee that the new maximum prices for the supply of heat to households and public utilities will not be allowed to rise above 40 per cent in relation to the prices and rates of heat charges applicable on 30 September 2022, calculated individually for each tariff group within the district heating system by the President of URE.

The difference between the heat supply price calculated in this way for consumers and the price resulting from the tariff will be covered for the energy companies from the COVID-19 Fund. The energy companies will receive an appropriate compensation so that consumers are not overcharged. They, like the industry as a whole, face enormous challenges.

The challenges are set by climate policy and the energy transition, as described, for example, in the very demanding ‘Fit For 55’ package, which is slowly, but steadily, being processed at EU level. The question is, how do these requirements relate to reality?

The Polish Association of Combined Heat and Power Plants (PTEZ) points out in the report that meeting the challenges will be costly and, even despite external funding for this purpose, the health of companies is particularly important.