Annual energy consumption limits at the 2022 rate for households
The electricity consumption limit for households in 2023, under which rates equal to those in the tariff applicable on 1 January 2022 will apply, is 2 MWh for individual tariff groups. At the same time, for certain groups, these limits are more favourable:
- 3 MWh – this is the limit for agricultural holdings or specialised agricultural production units not engaged in any other economic activity, where the energy consumption points, in addition to the residential building, are also used to account for electricity consumed by equipment and installations located on the agricultural holding’s land,
- 3 MWh for a household holding, on the date the Act comes into force (i.e. 18 October 2022), a Large Family Card as a family with many children,
- 2.6 MWh – for a household in which one member holds, on the date of entry into force of the Act (i.e. 18 October 2022), a certificate of significant or moderate disability.
A customer who meets the conditions for benefiting from higher annual energy consumption limits at 2022 prices and wishes to benefit from these higher limits is required to submit a declaration to the energy company confirming that they meet the conditions for being recognised as a customer eligible for the higher limits. Where a customer has entered into a separate electricity supply contract and a distribution service contract, they must submit separate declarations.
Maximum electricity tariffs
Once a household exceeds the electricity consumption limits, the energy supplier will be able to apply rates other than those in force in 2022. However, these rates cannot be arbitrary, as maximum electricity sales prices have been introduced for use in settlements with eligible customers. For households, this price is PLN 693/MWh.
The maximum prices were set out in the Act of 27 October 2022 on extraordinary measures aimed at limiting electricity prices and supporting certain customers in 2023 (at the time of publication, the Act is awaiting the President’s signature).
This Act also provides for a maximum price for micro, small and medium-sized enterprises, as well as local government bodies and local government entities, including budgetary units, and this stands at PLN 785/MWh. The maximum prices for these entities apply from 1 December 2022 to 31 December 2023.
Energy billing for prosumers
In view of the above limits on annual electricity consumption, the situation for prosumers is taking an interesting turn. There had been some uncertainty in this regard, which the Ministry of Climate and Environment has recently addressed by issuing a statement. First and foremost, the situation for prosumers will vary depending on whether they are billed under net metering (prosumers who registered their micro-installations by 31 March 2022) or net billing (prosumers who registered their micro-installations after 31 March 2022).
In the case of net metering, in the context of the limit to which the guaranteed price applies, consumption will be determined after balancing the energy fed into and drawn from the grid (i.e. at a ratio of 1:0.8 for installations not exceeding 10 kW or 1:0.7 for installations exceeding 10 kW). If a consumer has generated 4 MWh of energy and drawn 5 MWh from the grid, they will remain within the 2 MWh limit. However, consumption exceeding the limit will require payment for the energy at a price set by the energy company, though not higher than the maximum price, i.e. PLN 693 per MWh.
In the case of net metering, surplus electricity generated is sold back to the grid at market prices set for each month (the average price of energy from the exchange market). According to a statement from the Ministry of Climate and Environment, the consumption threshold for such consumers will apply to the total amount of electricity drawn from the grid. Above this threshold, these customers will be able to purchase electricity at a guaranteed price of PLN 693 per MWh, thanks to the provisions of the Act on Extraordinary Measures Aimed at Limiting Electricity Prices and Supporting Certain Customers in 2023.
Frequently asked questions
What is the basic energy consumption limit at 2022 prices for an ordinary household?
The basic annual electricity consumption limit for which 2022 prices apply is 2 MWh. This means that up to this amount of electricity consumption, you pay the rates known from the tariff in effect on January 1, 2022.
Can I obtain a higher energy consumption limit with the Large Family Card?
Yes, a household holding a Large Family Card on the date the act entered into force has an increased limit of 3 MWh. To benefit from this relief, an appropriate declaration must be submitted to the energy company.
How much does energy cost after exceeding the consumption limit?
After exceeding the applicable consumption limit, different rates apply, which cannot, however, be arbitrary. The maximum electricity price for households is 693 PLN per megawatt-hour.
How is the energy consumption limit settled for a prosumer using net-metering?
In the net-metering system, consumption is determined after balancing energy fed into the grid and drawn from it, according to specified coefficients. If after such settlement the result does not exceed the limit, you pay the 2022 rate, and the surplus above the limit is settled at the maximum price.
How does limit settlement look for a prosumer in the net-billing system?
For prosumers in the net-billing system, the consumption threshold refers to the total amount of energy drawn from the grid, regardless of the surplus produced. Energy drawn above this threshold may be settled at the guaranteed maximum price of 693 PLN per megawatt-hour.
A matter in energy or renewables law?
That is where most conversations with a lawyer begin. A consultation is paid, PLN 600 net. You pay for a real opinion: whether you have a legal problem, what you can do about it and roughly what it costs. It ties you to nothing further, and you do not need to know the law, that part is on us.
- 1 Talk
You tell us what is going on, in your own words.
- 2 What next
We tell you your options and what it costs.
- 3 We act
You give the go-ahead and the matter is ours.
She specializes in commercial and civil law. She has gained experience in Warsaw law firms providing comprehensive services to companies and a law firm specializing in labor law. She has extensive experience in corporate consulting. She has participated in mergers and acquisitions at every stage of the process, from pre-transaction legal examination to fulfillment of regulatory requirements related to the transformation process. She prepares and reviews contracts entered into by clients and advises in cases of…
View profile →
