Energy Regulatory Office New tariff for PGNiG OD - News -

The tariff of PGNiG OD new tariff for the sale of gaseous fuels will apply from 1 July 2024 to 30 June 2025.

The tariff proceedings conducted by the Regulator were forced by the Energy Voucher Act^[1], according to which PGNiG OD’s existing tariff goes out of force on 30 June 2024. Importantly, due to the legislator's freezing of gas prices in the first half of 2024^[2], the PGNiG OD’s tariff approved by the President of the ERO in December 2023 and amended in February this year., has not been yet reflected in the gas bills for residential customers and other eligible users.

What does a gas bill consist of?

The total bill for households is made up of commodity charges, distribution service charges and fixed monthly fees. As of 1 July 2024, the maximum gas price for household customers set at 200.17 PLN/MWh will cease to apply. The distribution charges of Polska Spółka Gazownictwa, the company^[3], responsible for gas distribution in most parts of Poland, which were approved by the President of URE for 2024 in December 2023. will also be unfrozen in the second half of the year. The fixed monthly fee, however, remains frozen until 31 December 2024^[4].

What will be the level of the distribution charge and the fixed monthly fee starting from 1 July?

Starting from 1 July 2024, the distribution tariff rates will be determined according to the unfrozen Tariff No. 12 for distribution services of gaseous fuels of PSG, as approved by the President of URE. In this tariff, the rates of charges (both fixed and variable) are differentiated according to the tariff group, distribution area and type of gas supplied.

The averaged distribution charge rates from 1 July will be: 126.69 PLN/MWh for tariff group W-1.1, 67.86 PLN/MWh for group W-2.1 and 65.23 PLN/MWh for group W-3.1. Compared to the frozen distribution charge rates, this means an increase in the average distribution service charge rate for high-methane gas of around 27 per cent.

Fig. 1. Average net PSG distribution charge rates until the end of June 2024 and from 1 July 2024.

The fixed monthly fee rates, on the other hand, remained unchanged and are (excl. VAT):

• PLN 3.35 for tariff group W-1.1,
• PLN 5.49 for group W-2.1,
• PLN 6.4 for group W-3.6.

How will natural gas prices for residential customers change from 1 July 2024?

In the PGNiG OD tariff approved today by the President of the ERO, the price of natural gas for individual consumers will be 239 PLN/MWh. Against the existing tariff for 2024, this represents a price decrease of almost 18 per cent. (from 290.97 PLN/MWh). However, as the gas price freeze at PLN 200.17/MWh was in place until the end of June 2024, for residential customers this means an effective average increase of 19 per cent starting from 1 July this year.

Fig. 2. Price of high-methane gas until the end of June 2024 (frozen) and from 1 July 2024 (PGNiG OD tariff approved by the President of URE)

For the average household customer, the bill for gas purchased from PGNiG OD and delivered by the largest distributor, PSG, will therefore increase, on average, by 20 per cent from 1 July 2024.

Table 1. Increase in monthly payments from 1 July 2024 for PGNiG OD customers using PSG services

The decision of the President of URE, together with the approved tariff, are available on the URE’S website.

What price will apply for customers of other gas retail suppliers?

From 1 July to 31 December 2024, the gas price approved in the tariff for PGNiG OD will at the same time be the maximum price for other companies supplying natural gas to individual customers and other eligible entities. These suppliers will be allowed to sell gas at a lower price, but in that case they will not be entitled to compensation for lost profits.

***

• All prices approved and published by the Regulator are exclusive of VAT.
• The total gas bill for households is made up of the commodity charges, monthly fees and gas distribution Ramonita charges (based on the rates set out in the tariff of the distribution system operator, e.g. Polska Spółka Gazownictwa).
• In Poland, the companies of the Orlen Group have a dominant position in the supply of gas to final customers and the provision of gas distribution services with PGNiG’s share in gas sales of around 90 per cent in 2023.
• The President of URE approves tariffs for the supply natural gas (only for households and customers carrying out vital public services) as well as for the gas distribution services (for all customer groups).
• According to the current legislation, the tariffs for the supply of gas to household customers and customers carrying out vital public services will be approved by the Regulator for the last time for 2027. However, tariffs for the use of gas infrastructure (storage, transmission, distribution and liquefaction and regasification) will continue to be regulated.

^[1] Act of 23 May 2024 on the energy voucher and on the amendment of certain acts to reduce the price of electricity, natural gas and system heat (Journal of Laws 2024, item 859).
^[2] Act of 7 December 2023 on amending laws to support consumers of electricity, gaseous fuels and heat (Journal of Laws 2023, item 2760).
^[3] In accordance with Article 3(7a) of the Act of 15 December 2022 on special protection accordance with Article certain consumers of gaseous fuels in 2023 and in 2024 in connection with the situation on the gas market (Journal of Laws of 2024, item 303).
^[4] According to Article 3(6) of the aforementioned act of 15 December 2022, the fixed monthly fee remains frozen at the level of 1 January 2022.