There will be no 50% increase in electricity prices. from January 1, 2026 – assured the Minister of Energy Miłosz Motyka on Monday. He hopes that the energy prices approved by the President of the Energy Regulatory Office will be lower than currently. He also assessed that the defense industry should be excluded from the CO2 emission allowance trading system.
CBAM and steel market protection
On Monday, Minister of Energy Miłosz Motyka was asked on Radio ZET why the carbon border tax (CBAM – Carbon Border Adjustment Mechanism) did not cover steel products, although it covered, among others, steel and aluminum. On Friday, the Sejm adopted the act implementing CBAM.
– First of all, the quota for steel products is halved, and above this quota there will be 50 percent. higher customs duties. In our opinion, this is already a good starting proposition – said Motyka. He added that the problem should be solved at the European level by further reducing the quota.
– We, as the Ministry of Energy, propose that on the one hand, on the other hand, that the level of customs duties be also higher than this quota and, thirdly, that not only the steel itself, but also coking coal and coke be included in it – said the minister. He added that this demand will be raised by Poland “at the stage of work in the European Parliament and at the stage of work of energy ministers of member states.”
CBAM will be imposed on goods entering the customs territory of the European Union from the following sectors: cement, electricity, fertilizers, cast iron and steel, aluminum and hydrogen. CBAM for importers of goods from countries not covered by the EU ETS (European Emissions Trading Scheme) is to be calculated on the basis of default emission factors for a given country and a given good from that country or on the basis of actual emission factors, which will be subject to verification.
ETS reforms: price cap and exception for the arms industry
When asked about his assessment of the EU ETS system (European CO2 Emissions Trading System), Motyka said that it was a system that “requires refinement.” He pointed out that the so-called price corridors for CO2 emission allowances and – as he said – such a solution “is possible”. The minister explained that a price limit should be introduced to EUR 55-60 per tonne of CO2 emission allowances. – This should be an item (CO2 emission allowances – PAP) that should not be subject to speculation in any way. Or if the price of emission allowances is too high, additional limits (emission allowances – PAP) should be released to lower this price – says the Minister of Energy.
In its analysis of the effects of the implementation of the Fit For 55 package, the European Commission forecasts energy prices in the EU at a constant level of EUR 130 per MWh until 2050. In November 2025, the price of CO2 emission allowances (EUA) in the EU ETS was around EUR 80-81 per tonne of CO2.
The minister noted that the ECJ “should exclude the arms industry, it should not include it.” According to Motyka, the ETS is intended to encourage energy transformation, but should not be a tool that is an “excessive burden”.
Electricity bills: stabilization instead of increases
The minister also assured that “there will be no 50% increases in electricity prices from January 1.” – We hope that the prices approved by the president of the Energy Regulatory Office will be lower than those that are frozen today – he pointed out. When asked how much electricity prices would increase, he repeated that “electricity will not increase in price.”
Pursuant to the Act, household consumers have the right to take advantage of tariff offers from official suppliers until the end of the year, with a frozen price of PLN 500 per MWh. The difference between the tariff and the frozen price is paid by the state to the seller.
Criticism of the president's project of reductions
The Minister of Energy was also asked about the presidential bill reducing energy prices by 33 percent. – This is a temporary solution. Reducing these fees will mean that you will have to pay for the capacity market and network investments from another source anyway, because the investments will not finance themselves, said Motyka.
In his opinion, the presidential project is underdeveloped in terms of its impact on public finances. – It is incorrectly calculated and should be returned to the applicant to complete the regulatory impact assessment; reducing the state budget by a dozen, or at least PLN 14 billion, VAT loss – said Motyka.
He stated that the project may also be submitted to a parliamentary committee. – There we will learn the details of how the president wants to fill the VAT gap – said Motyka.
The president's draft amendment to the act lowering energy prices was submitted to the Sejm on November 12 this year. As a result of implementing the solutions proposed therein, households would pay approximately 33% for electricity. less, and enterprises by about 20 percent. less. The draft amendment provides, among others: reducing the VAT rate on electricity from 23%. up to 5 percent and various types of fees that affect the level of the energy bill. (PAP)
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