A Hike in Electricity Prices Expected

No good news for companies in Poland because of an expected hike in electricity prices. Business owners should brace themselves for a drastic increase of the price of electric energy. Some industry experts suspect electricity prices may go up by as much as fifty percent! If this prediction comes true, this will be a big shock for entrepreneurs, not to mention average consumers. Media in Poland keep asking whether the government is going to do something about the upcoming hike and take some steps to protect energy recipients.

Why will Poles have to pay more for electricity? All is due to the rising cost of coal (80 percent of electric power produced in the country comes from coal power stations) as well as EU carbon emissions price. The latter reached a 10-year high this year. Higher cost of energy will translate into increased cost of production of goods, so companies will be forced either to cut other costs or, what is more probable, change the prices of their products.

Another industry under pressure will be transportation. Consumers may expect higher prices of train tickets. It was recently speculated that some rail companies can receive electricity bills 80 percent higher than today. The hike in electricity prices is expected to have big impact on investment figures as well.

The government is urged to do something to cushion the upcoming blow. There are plans to prepare a compensation scheme that will cover some of the cost of the price hike for small and medium companies as well as certain institution, such as hospitals, hospices and other care facilities. However, the draft of the state budget for 2019 does not set aside any funds for this purpose. The Minister of Energy, Krzysztof Tchórzewski, said that next year the government intends to spend around four billion PLN on compensations.

Business Implications for Poland

Economic and regulatory developments in Poland have broad implications for businesses operating in the country. Poland’s economy, the largest in Central and Eastern Europe, continues to attract international investors and entrepreneurs seeking EU market access, competitive costs, and a skilled workforce of over 17 million workers.

For foreign companies and entrepreneurs doing business in Poland, staying informed about economic trends, regulatory changes, and market dynamics is essential for strategic decision-making. Whether you are considering entering the Polish market, expanding existing operations, or optimizing your corporate structure, professional advisory support can help navigate the complexities of the Polish business environment.

Poland offers a comprehensive business infrastructure including special economic zones with tax incentives, a well-developed banking system, modern office space in major cities, and a legal framework aligned with EU standards. These factors, combined with Poland’s strategic geographic position between Western and Eastern Europe, make it an attractive hub for businesses targeting the broader European market.

If you are doing business in Poland or considering entering the Polish market, Zalewski Consulting can help. Learn more about our corporate tax advisory, or contact us for a free consultation.