Poland to freeze electricity prices for

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Poland intends to freeze electricity prices next year at the current level, for households that consume less energy, as the Government seeks ways to mitigate the effect of rising inflation on consumers, reports Reuters.

In August, the annual inflation rate in Poland stood at 16.1%, the highest level in over two decades.

“We are taking measures to ensure that the electricity for each family, for a household that consumes up to 2,000 kilowatt-hours (kWh), is at a fixed price, in fact at the current price,” announced Jaroslaw Kaczynski, the leader of the conservative Lege party and Justice (PiS), the most important formation within the ruling coalition in Poland.

He added: “If someone reduces their consumption by at least 10%, compared to the previous year, they will receive an additional discount.”

Kaczynski explained that the decision will result in stable prices for around two-thirds of Polish households, with a series of energy measures to be unveiled this week by Prime Minister Mateusz Morawiecki.

The government in Warsaw adopted tax breaks, fuel subsidies for households, and other measures to mitigate the effect of rising energy prices.

In August, Morawiecki announced that energy companies will have to absorb part of the costs through lower increases in energy tariffs.

Also, Kaczynski declared that the Executive is discussing with the state banks the increase to 7%-8% of the interest rates offered to customers on old and new deposits.