Household electricity prices in recent months bore little relation to real production costs, were kept artificially low and treated as an interface with voters. State intervention in this area in 2022 was necessary - due to unprecedented price increases in the markets, although reservations can be raised about the amount and manner of implementation of assistance to consumers. Mechanisms for freezing energy prices were planned until the end of 2023 - and if they expire, electricity prices for households could rise by as much as 68% in January. The protracted process of appointing a new government leaves no time to decide what to do next. The impact of the price hike should be mitigated. We propose a package of solutions: an energy voucher, support for distribution tariffs, additional money for improving energy efficiency in buildings and a special tariff for heating buildings with electricity. The measures can be financed with money from the National Reconstruction Plan and from state budget revenues from the sale of CO2 emission allowances.
How to escape the household energy price trap?
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Date of publication:: 3 November 2023
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Joanna Pandera, Marcin Dusiło, Konstancja Ziółkowska