Vast majority of households will not feel electricity price hikes: minister

The Polish State Assets Minister Jacek Sasin said in an interview that the draft of the law introducing compensations for the increasing prices of the electricity is to be ready within a fortnight.

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Mr Sasin told private TV station Polsat News that the authors of the draft are working on technical details of the document. He stressed that the compensation will be addressed to household consumers who remain in the first income tax bracket, which means their annual income does not exceed PLN 85,528 (EUR 20,202.9).

According to the minister, as much as 98 percent of the Polish households will not suffer from the higher bills, thanks to the new regulations prepared by the government.

“To those whose income exceeds the first tax bracket, PLN 100 [EUR 23] per year is not that much,” he said.

The maximum cost of compensations may reach some PLN 3 bn (EUR 710 mln), however, as Mr Sasin added, in reality, the cost maybe half of that sum. Full compensations for electricity price hikes in 2020 will be paid in 2021.

“We have done everything to prevent increases in prices for electricity, but we cannot renounce reality. The prices are going up not only in Poland but in the whole of Europe, also because of the climate policy of the European Union,” Mr Sasin said.

He stressed that the new law has to be prepared in a way that “would not encourage the European Commission” to accuse it of being forbidden public support.