Poles to face heat price increases

The new tariffs of energy companies in July were approved by the President of the Energy Regulatory Office. As the representatives of PGE Energia Ciepła emphasized, there is no freedom in shaping heat prices, because everything is regulated by the ordinance, and price increases are primarily the result of a several-fold increase in the prices of CO2 and coal emissions. Only the price of carbon dioxide emission allowances has risen from around €5 to €25 per tonne since 2017, and has been approaching 30 in recent weeks. This forces energy companies to make new, environmentally friendly investments. PGE EC's strategy assumes gradual conversion of heating to cheaper and more environmentally friendly gas.

“The European Union's climate and energy policy requires actions that are costly. Therefore, it should be expected that the prices of energy and heat pill increase, but thanks to that we will breathe cleaner air,” Przemysław Kołodziejak, acting President of the Management Board of PGE Energia Ciepła, stressed.

Heat prices are a derivative of many factors, including market situation, legal regulations, increase in production costs and ongoing investments. In recent years, the costs of fuel and CO2 emission allowances have had the greatest impact on them. The increase in the purchase price of coal in 2017-2019 amounted to almost 20 percent. In the case of PGE Energia Ciepła, the average increase in the price of heat produced, for example, in a CHP plant in Rzeszów in 2018–2019 was less than 1 percent, while inflation alone in this period was around 3.6%. The tariff approved in mid-July by the President of the Energy Regulatory Office will mean a price increase of several percent.

(Newseria)