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    Gas Price Hikes Set to Hit Polish Households from July

    Starting in July, millions of households across Poland will see a significant increase in their gas bills. Polskie Górnictwo Naftowe i Gazownictwo (PGNiG), the national oil and gas company, has announced new rates that will result in over a 50% increase in gas prices.

    Notifications were sent out this week, informing customers of the upcoming changes. Despite new tariffs for gas sales and distribution being in effect since January 1st, protective measures had shielded many from price hikes during the first half of the year. This protection stems from a law enacted on December 15, 2022, allowing households and certain other consumers to benefit from lower gas prices. The protected rate was set at 24.62 groszy per kWh (including tax), with subscription and distribution fees remaining at 2022 levels.

    However, this protection is set to expire for many consumers starting in July. Consequently, gas bills will rise significantly, with the most noticeable impact likely during the colder months when heating needs increase.

    PGNiG Obrót Detaliczny has detailed the increases: the price for high-methane gas in group E will rise by approximately 45%, from 24.62 groszy to 35.79 groszy per kWh (tax included). Subscription fees will also see an uptick; for example, the W-1.1 group will experience a 1.5% increase from 4.06 zł to 4.12 zł per month.

    Similar hikes will apply to nitrogen-rich gas. For subgroup Lw (tariff group Z), prices will increase from 24.62 groszy to 35.79 groszy per kWh, and for subgroup Ls (tariff group S), from 24.62 groszy to 36.29 groszy per kWh.

    Consumers currently under tariff protection should brace for an average bill increase of about 50%.

    To mitigate the impact, a narrow group of eligible households might receive a one-time energy voucher in late 2024. This voucher is intended to compensate for the partial deregulation of electricity prices from July 1, 2024. Single-person households with a monthly income not exceeding 2500 zł and multi-person households with an average income per person not exceeding 1700 zł in 2023 will qualify for this assistance upon application.

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