Poland plans to freeze in 2023 electricity prices at current levels for households consuming less energy, the ruling Law and Justice (PiS) leader said on Tuesday, as the government looks for ways to shield consumers from soaring prices.
PiS has seen a drop in public support as energy costs soared following the war in Ukraine, driving Polish inflation to its highest in over two decades, with prices up 16.1% year-on-year in August.
"We have taken steps to ensure that electricity for each family, for a household up to 2,000 kilowatt (hours), is at a fixed price and, in fact, the current one," Jaroslaw Kaczynski said during a meeting with voters.
"If someone reduces consumption compared to the previous year by at least 10%, he will receive an additional discount," he added.
Kaczynski said the move would result in keeping prices stable for around two thirds of Polish households, while more measures would be presented later this week by Prime Minister Mateusz Morawiecki.
The move adds to a series of steps taken by the government such as tax breaks, fuel subsidies for households, and other measures.
In August, Morawiecki said energy companies would have to absorb some of the support cost through lower hikes in energy tariffs.
The PiS leader also said that the government is in talks with state-controlled banks aimed at increasing interest rates offered to clients both on old and new deposits to 7-8%.