Natural gas – gas prices. Climate Minister Anna Moscow on a tariff freeze in 2023

Gas tariffs will be frozen. We are working on the state budget to be able to take into account the potential amount. We will be presenting this solution in September in order to responsibly indicate the budgetary consequences, said Anna Moskwa, Minister of Climate and Environment. She stressed that there is “internal discussion on the level of freezing tariff gas prices” in the government. The calculations of the portal show that without the government’s intervention, the cost of heating the house with gas could increase fivefold.

In the Dutch TTF hub, gas contracts are traded at record prices. On Friday, prices exceeded EUR 300 per MWh, compared to EUR 50 a year ago.

The situation in the gas markets will become even more tense when the Russian energy giant Gazprom will close the entire Nord Stream 1 gas pipeline for three days. Between August 31 and September 2, no gas will flow to German due to maintenance works, according to a Gazprom announcement. European authorities fear that after the completion of these works, gas supplies from Russia may not be resumed. Already, 20 percent of gas flows through Nord Stream 1 to Germany. gas pipeline capacity.

“In Europe we are reaching the point where the level energy prices translates into a drastic decrease in energy demand (demand crunch). It may also mean the end of increases in energy commodity prices, “Bank Pekao analysts noted in Friday’s entry.

High gas prices – plants suspend production

In Poland, Grupa Azoty announced this week that the plant for the production of nitrogen fertilizers, caprolactam and polyamide 6 was stopped. In turn, the plants in Puławy, which are part of the capital group, reduced the production of ammonia to about 10 percent. production capacity and withheld some production in the plastics and agro segments.

Zakłady Azotowe Kędzierzyn has reduced the operation of the installation in the fertilizer production unit to a minimum. The production of nitrogen fertilizers was also temporarily suspended by Anwil, a company from the PKN Orlen capital group.

Both companies explain the decision with unprecedented growth natural gas prices.

At the same time, both companies are suppliers of liquid carbon dioxide and dry ice. They are missing strongly will hit the Polish food industry.

How much can the cost of heating a house increase?

At the same time, gas is tariffed for consumers, which means that any increase in prices requires the consent of the Energy Regulatory Office. The ERO examines, inter alia, whether the requested increase is justified by higher costs. Additionally, the government may take protective measures, which happened this year. It is about compensating lower prices for gas sellers.

The calculations of the industry portal show that the cost of heating a house with natural gas in 2023 will increase from PLN 5,000 to PLN 25,000. PLN, as long as the government does not take any intervention measures. “This would ruin the budgets of 2 million households. However, an attempt to freeze gas prices will devastate the state budget, because, together with the lost VAT, it would reduce it by PLN 60 billion, i.e. nearly 10 percent.” – it was written.

Carbon additive and other heating additives

Apart from gas, other energy sources are also becoming more expensive. From August 17 this year. the submission of applications for the payment of a one-time carbon allowance in the amount of PLN 3,000 has started zloty. The Act provides that the coal allowance is granted to households for which the main source of heating is a solid fuel boiler, fireplace, goat, air heater, kitchen stove, stove, coal stove or solid fuel tiled stove – powered by coal, briquette or pellets, containing at least 85% hard coal. From the date of submitting a correctly completed application, the commune will have 30 days to pay the funds.

Also read: Carbon additive. How to submit an application online, and how in a paper version?

At the same time, work is underway to introduce household allowances for heating houses with fuels other than coal. A government bill on this matter was submitted to the Sejm on Thursday. According to the project, a one-time allowance will amount to: 3 thousand. PLN if the main source of heat is a solid fuel boiler powered by wood pellets or another type of biomass; 1 thousand PLN when the main source of heat is a solid fuel boiler, fireplace, goat, air heater, kitchen hearth, stove or solid fuel tiled stove, powered by lump wood; PLN 500 if the main heat source is a gas boiler powered by liquefied LPG, and PLN 2,000 PLN if the main source of heat is an oil boiler. The Sejm is to deal with the bill during the meeting scheduled for September 2.

For the above-mentioned additives, including the carbon allowance, the application deadline is November 30th.

Main photo source: Shutterstock

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