Energy Regulatory Office Electricity market: President of URE approves distribution tariffs for 2025 - News -

The total amount of the electricity bill comprises the cost of purchase and distribution (transport). The President of URE approves tariffs for both the supply (for household consumers charged according to the tariffs of the so-called last resort suppliers) and the distribution service (for all consumer groups).

In line with the Parliament’s November decision, the price of one MWh of electricity was frozen at PLN 500/MWh until the end of September 2025[1]. This means that the price will be the same as in the second half of 2024. The price for distribution, on the other hand, results from the tariff rates approved by the President of URE. On 16 December, the Regulator approved distribution rates for the five largest companies for 2025. As a result, the average annual distribution charges paid by household customers (Group G) will not increase in 2025.

Fig. 1. Summary of changes in average annual distribution charges for groups A, B, C and G

What are the components the electricity distribution tariff?

The rates set out in the approved tariffs of distribution system operators take into account their operating costs of licensed activities. Also included in the distribution tariffs are other charges resulting from legal regulations, which are itemised on the electricity bill but are not passed on to the distributors, i.e.:

• the cogeneration charge rate, which will be reduced from 6.18 PLN/MWh to 3 PLN/MWh in 2025. The charge is related to a scheme supporting electricity produced in co-generation units,
• the capacity levy rate – by the end of June 2025[2] this charge for households will be PLN 0. The capacity levy is intended to provide for the cost of energy security. This is a mechanism to remunerate power generators for their readiness to provide capacity to the grid. The main rationale behind the introduction of the levy was the need to ensure stability and security of electricity supply,
• RES charge – increase from 0 PLN/MWh to 3.50 PLN/MWh. The aim of its introduction was to support the generation of electricity from renewable sources and the operation of mechanisms that help ensure an adequate share of ‘green energy’ in the national energy mix,
• quality charge – previously now this was a charge for the use of the power grid.

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• The tariffs approved by the Regulator are exclusive of VAT and excise duty.
• In Poland, there were approximately 17.2 million household customers as at 2023. According to data from tariffs approved by the Regulator, the average consumption in Group G in 2023 was 2 MWh.
• The G11 group (with a constant electricity price throughout day) accounted for 88 per cent of G-group customers (around 15.1 million). The average annual electricity consumption volume in the G11 group in 2023 was 1.8 MWh.
• The average annual consumption volume in the G12 group was in 2023. 3.2 MWh.

^[1] In accordance with the new Act of 27 November 2024 amending the Act on emergency measures aimed at limiting the level of electricity prices and support for certain consumers in 2023 and 2024, and certain other acts.
^[2] In accordance with the new Act of 27 November 2024 amending the Act on emergency measures aimed at limiting the level of electricity prices and support for certain consumers in 2023 and 2024, and certain other acts.

Electricity market: President of URE approves distribution tariffs for 2025 - News - Energy Regulatory Office