Energy prices in the hands of the president. A sudden increase can be expected in the fall

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• Under the current regulations, the freezing mechanism applies to households, which means that they are billed at a rate of PLN 500 net per MWh until the end of September this year.
• If the wind farm bill with an amendment regarding energy prices is vetoed by the president or for some reason does not come into force by September 30 this year, a sudden increase in prices can be expected, although according to experts, these do not have to be significant increases.
• The solution may be to sign a contract guaranteeing a fixed price, but in return the energy supplier may expect the customer to, for example, purchase additional services or pay an additional fee.

The government members were counting on market energy prices to be at such a level that further freezing would not be necessary, but unfortunately they did not fall. Prime Minister Donald Tusk announced a few days ago that the mechanism would be extended until the end of the year. The decision was presented in the form of a parliamentary amendment to the act on investments in wind farms, which the Sejm has already voted on.

According to the government, this will ensure timely implementation of changes regarding the extension of the freezing mechanism. Meanwhile, President Andrzej Duda is not a supporter of liberalizing the regulations regarding wind turbines and considered that by adding an amendment on energy prices, the government has put him against the wall .

"The mechanism for freezing energy prices for households could have been extended earlier by a special legal act. In my opinion, it cannot be ruled out that the appearance of these provisions in the final stretch, as part of the draft act amending, among others, the "windmill act", may serve to exert additional pressure on its signing by the president ," comments Dr. Jakub Plebański, an expert in energy law, senior lawyer at Rödl & Partner law firm, for the Prawo.pl portal.

From October 1, prices may increase, but not necessarily significantly

At the request of the portal, experts have therefore analysed what energy prices may look like in the last months of the year if the president vetoes the act or, for other reasons, it does not come into force by the end of September this year (it will still be processed by the Senate before it reaches the president's desk).

"Then, from 1 October, the existing agreements with sellers will remain in force and will be settled based on the price from the tariffs specified in these agreements. However, when settling on the basis of the tariff, it is possible to adjust energy prices ," explains Dr. Plebański.

This is because on October 1, 2025, updated energy tariffs will come into force , which energy companies are to submit to the President of the Energy Regulatory Office by July 31, 2025.

Switching off the freezing mechanism may therefore result in a sudden increase in bills, although these do not have to be drastic increases. Dr. Plebański reminds that the tariff mechanism serves, among other things, to take into account social factors.

"On the other hand, the state is providing for an additional allocation of funds in the event of an extension of the price freeze mechanism, in order to compensate trading companies for the costs of applying statutory rates. This suggests that prices in the new tariffs will be higher than those resulting from the freeze mechanism," the expert says.

According to Martyna Popiołek-Dębska, a legal adviser running the MPD law firm, quoted by Prawo.pl, in order to minimize the risk of price increases, the consumer should take steps to conclude the most advantageous electricity supply contract possible .

"First of all, you should start by comparing the offers and terms of the contract of competing entities - the differences, whether with a variable or guaranteed price, can be significant . As a result, changing the energy supplier may turn out to be financially beneficial," says attorney Popiołek-Dębska.

The solution may be to sign a contract guaranteeing a fixed price, but in return the energy supplier may expect the customer to, for example, purchase additional services or pay an additional fee . It may also happen that market prices will soon fall and under the above agreement you will have to pay more than those who have not opted for a fixed price.

Dr. Plebański points out that, in accordance with energy law , the final recipient may terminate a contract concluded for an indefinite period without incurring costs . Changing the supplier in a fixed-term contract may, however, mean the need to incur additional costs.

"A common practice is to have price guarantee agreements that include contractual penalties for early termination - this may discourage people from changing the supplier despite unfavourable price conditions," Martyna Popiołek-Dębska points out to "Prawo.pl", adding, however, that such an agreement makes it easier to control energy expenses and eliminates the need to analyse variable prices on the energy market.