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What factors impact the changes in energy prices? The commentary of our expert

‘It is difficult to predict a specific pace of price increases as it depends on the Regulator’s decisions, as well as on the temporary market fluctuations. However, if we take a look at the forecasts for the next 2-4 years, it becomes evident that Polish consumers will pay more for the unit of energy than they pay today’, assesses Aleksander Śniegocki, the manager of ‘Energy and Climate’ project in WiseEuropa, in an interview with the Newseria Biznes agency.

‘There is a prolonged tendency of prices on the wholesale market to decline. This is due to the emergence of renewable energy sources, such as wind turbines and photovoltaic panels, that produce energy at practically no cost, consequently driving the more expensive power plants out of the market and causing the average price of energy to decrease. Additionally, the demand for energy is also lower than expected. The price for the final customer, on the other hand, after including all taxes, fees and various subsidies, shows a tendency to increase, not only in Poland, but also in Europe’, explains our expert.

Energy prices are governed by the Energy Regulatory Office (URE) and change every half a year. Therefore, they will not have been altered by the end of 2016. However, according to Śniegocki, further decisions of URE may entail some price increases. ‘It may happen, for instance, due to the government’s plans to introduce power market, i.e. a mechanism that is supposed to finance investments in new power plants. This mechanism needs to be financed with bills’, says Śniegocki.

According to the legal and economic analysis of assumptions, prepared by the Regulatory Assistance Project and ClientEarth, the cost of introducing the power market, such as proposed by the Ministry of Energy at the beginning of July, amounts to 80-90 billion PLN in the years 2021-2030, while the energy bills may be higher by 280-340 PLN a year, i.e. by roughly 20%.


The text  above are an excerpt from an interview (PL) with Alexander Śniegocki: An inevitable increase in energy prices. The increases will finance investments necessary for a stable power supply, for NEWSERIA BIZNES Agency.

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