High energy prices. Local governments organize tenders. Up to ten times more expensive for electricity than today – the local government’s map of increases

Some local government officials – such as those from Poznań – believe that the proposed electricity prices are a misunderstanding. Others – like those in Koszalin – are desperately looking for savings. Still others – as in the case of Bydgoszcz – have doubts whether the tenders for the purchase of electricity are fair. It is already known that local governments will have to pay several times more for electricity than before. In the record-breaking Piotrków Trybunalski, the bills are to rise tenfold.

How much more will local governments have to pay?tvn24.pl

Piotr Krzystek, president Bristles speaks directly about “commuting local governments”. In the city, you will have to pay close for electricity four times morethan before. This year, Szczecin paid about PLN 34 million for energy supplies for three companies (Zakład Wodociągów i Kanalizacji, Szczecin Trams and the Public Roads and Transport Authority). Next year it would be 85 million more. And this is not the end, because the city has not yet opened the tender envelopes for the largest purchasing group, including, among others, schools and cultural institutions. He has until October for this.

In a much better situation, it is 170 kilometers away Szczecinek. There will be no increases at the moment, because – as Mateusz Ludewicz, the press spokesman of the municipality explains – the city signed a two-year contract, a tender was announced and Szczecinek will still benefit from the old contract for a year.

Koszalin has to sign a new contract and local government officials have already announced that they are looking for savings. The offer for the purchase of electricity for the next year amounts to PLN 63 million. It’s over four times more than this year. Local government officials admit that they expected a raise, but not so much. They announce that the high price may force only some street lamps, abandoning the inclusion of holiday illuminations; from Monday, the time during which the water park operates will be shortened by one hour.

Four times as much he is to pay for electricity next year too Kolobrzeg. The price for the two-year energy supply has soared from PLN 2.7 million to PLN 9 million over two years. In this year’s tender, the offer of the supplier Energa-Obrót was the best. The most expensive bidder offered PLN 13 million for two years.

Read also: Polish gas storage facilities are one of the smallest in Europe

We are moving to the Tri-City. Local government z Gdansk and Sopot so far they do not know if and how much it will be more expensive. The rates will not be known until the end of September, when the offers will be opened. This is followed by officials from Gdynia. The offer of the operator Energa-Obrót is more than five times higher from what they paid in 2022. If it was adopted, from the 461 zlotys paid this year per megawatt hour, the next one would have to pay 2,450 zlotys. The amount proposed by the tenderer exceeds the amount estimated by the Gdynia authorities.

According to forecasts, the local government in Gorzow Wielkopolski. In Poznan The increases caused a shock so great that the city plans to cancel the tender for the supply of electricity. According to the results of the proceedings to date, the city would have to pay 409 million zlotys for energy, i.e. almost five times more than today. President Jacek Jaśkowiak called the rates “speculative”. Local government officials in Gniezno and Bydgoszcz, where a new tender is currently being prepared. The mayor of the city hopes that this time more than one state-owned energy company will join him, and the prices will be more reasonable, because – as mayor Rafał Bruski argues – 500 percent raise “nothing to do with reality”:

Bydgoszcz has canceled the tender for the purchase of electricity

– Inflation is not that high, and the prices of electricity on power exchanges, i.e. the one that can be bought immediately, are definitely lower than those offered to the city by the state-owned company – indicates the president. The local government official shares his doubts with tvn24.pl whether the tenders for the purchase of electricity are fair:

– Why is it that one state-owned company takes part in tenders, and why are these prices so high? the president asks.

Read also: Street lighting, school buses, winter road maintenance … Local governments are cutting expenses

The new, draconian rates will also hit the w Toruń, where is the price of energy is supposed to jump six times. Last year, they paid 30 groszy per kilowatt hour. In the first quarter of this year, the price was PLN 0.19, and in the third quarter of this year it was already PLN 1.02. Now the city is in the tender for the fourth quarter – the president of the city expects that it will be necessary to pay PLN 1.9.

How much more will local governments have to pay?tvn24.pl

As in Poznań, local government officials from Olsztyn. In the procedure for supplying buildings for the purchasing group in which the city is located, the prices increased more than five times (by 540 percent). The cost of street lighting has soared by 380 percent. According to the president of Olsztyn, Piotr Grzymowicz, the raise is “unacceptable”. The new procedure should be announced at the end of September, and its settlement is expected at the end of November.

The “judgment for the self-government” is spoken of in v Radom. The city may pay for electricity next year nine times more. The city got only one offer for the supply of electricity. “This is a robbery in broad daylight and a verdict on the local government. Only for street lighting we would have to pay 65 million zlotys more. This is more than we spend on culture and sport in Radom. its inhabitants! ” – the vice-president of Radom, Mateusz Tyczyński, sounded the alarm on Facebook.

Rafał Jedwabny on the energy crisis

Rafał Jedwabny on the energy crisis TVN24

The largest in Poland Warsaw it will have to pay almost three times as much for electricity as before. According to Monika Beuth, a spokeswoman for the capital city hall, electricity bills will increase by 280 percent. – This is the result of the tender of the Warsaw Purchasing Group, which was carefully resolved early, before the summer holidays – Beuth informed. She stressed that if the tender were to be decided now, the raise would be higher. The Warsaw Purchasing Group includes approximately 850 municipal institutions, including the Warsaw Metro and Warsaw Trams.

The tender for energy will not be written for it Białystok. The city – according to Agnieszka Zabrocka from the Białystok municipality – buys electricity and gas on the Polish Power Exchange at the most convenient time, depending on when the price is the lowest. – The city does not conclude a contract with the supplier for the entire year, but buys energy in tranches, so it is difficult for us to estimate what costs will be incurred – says Zabrocka. The city expects that it will have to be allocated for the purchase twice morej than this year.

How much more will local governments have to pay?tvn24.pl

Five times more he was supposed to pay for the electricity Wroclaw. In the tender for next year, only one offer was submitted – from PGE Obrót – for the amount of PLN 405 million, which is an increase of over 500 percent year on year. The tender was annulled, but before the next decision, President Jacek Sutryk talks about the need to save: he announces that, as part of looking for savings, the city will not organize a New Year’s Eve party in the Market Square and will also resign from several other events.

Łódź he does not know yet what stakes the residents will have to face. This year, you had to pay PLN 509.3 for one megawatt hour. According to the calculations of councilors – taking into account the estimated increase in electricity prices – in 2023 the city must provide for this purpose in the budget from PLN 228 to 262 million. For comparison – this year PLN 58 million was spent on this purpose. Łódź – like many other local governments – buys electricity as part of a purchasing group.

Record-breaking – ten-fold increases are preparing in Piotrków Trybunalski. The only energy supplier that joined the tender announced by the purchasing group, which includes, among others, the city and the starosty, offered the price 1040 percent higher from the current one. Ireneusz Czerwiński, secretary of the Board of the Piotrkowski County, speaks of the “incomprehensible approach” of the government energy agency that offers such amounts. Here too – as in Wrocław or Poznań – a new tender will be held.

How much more will local governments have to pay?tvn24.pl

A new tender for the purchase of electricity is also announced in Sandomierz. Local government officials associated with the Sandomierz Procurement Group did not accept the new electricity prices, which was proposed by the only bidder in the tender: Tauron. The complex offer is almost eight times higher from the current one. Until now, they paid annually over PLN 5 million, now they have been offered an offer of over PLN 39 million. Marcin Piwnik, the starost of Sandomierz, appeals to the prime minister to freeze the price of energy and expresses his surprise as to why such high prices come from in a situation where “energy companies are very profitable”.

Also Tarnow he is getting ready to look desperately for savings. According to forecasts, the city will spend PLN 49 million on the purchase of electricity for its units next year. This is almost 30 million more than this year.

Industry he also has to choose a new electricity supplier, but it is not easy. The offer that came to the city shows that the cost of one megawatt hour is to increase from PLN 300 to PLN 2,200. – So far, we have paid about two million zlotys for street lighting alone. If we were to enter into a bargain agreement, the cost would be would have increased sevenfold – says Witold Wołczyk from Przemyśl magistrate.

Świeradów-Zdrój is starting to save due to inflation and the energy crisis

Świeradów-Zdrój is starting to save due to inflation and the energy crisisTVN24

The contract for next year was concluded in Zamosc. It will be almost three times more expensive than it is today. Piotr Orzechowski, deputy mayor of the city, informs that an agreement has been signed with PGE Obrót. Powering the city’s technical infrastructure, which includes street and park lighting as well as illumination of buildings, will cost PLN 7 million 858 thousand. This year it was PLN 2 million 745 thousand.

Operators: who paid less will feel the changes more

How is it that cities receive such different offers from operators? Piotr Ludwiczak from Enea informs that the offers for local governments are in fact similar, and the differences result from the “base effect”:

– It is about different parameters in the existing contracts and those resulting from the current conditions. The existing agreements were also concluded by local governments on market conditions, which also changed, although not as dynamically and abruptly as in recent months. Local governments that previously had lower rates feel more change today, says Ludwiczak.

Dark streets of Polish cities

Dark streets of Polish citiesTVN24

In his communiqué, he points out that the large increases are a consequence of the energy crisis in Europe, which began with the Russian invasion of Ukraine.

Also read: The Prime Minister announces a new mechanism for calculating energy prices

– Energy prices are also significantly influenced by the high cost of CO2 emissions in the EU. Currently, prices change from day to day. The challenge is the very high volatility of prices on the stock exchange and record-low turnover. Purchase of energy in order to secure the terms of the contract extends over time, which means that the price of electricity includes the risk of price changes – emphasizes Piotr Ludwiczak.

The president of Tauron, Paweł Szczeszek, explains the increases in a similar way. He talks about very high coal prices, which are passed on to the cost of obtaining energy. He denies that there were high profits in energy companies:

– This is a misunderstanding of the situation. Our margins are close to zero – assured Szczeszek.

What are the reasons for the differences in energy prices for local governments?  The president of Tauron explains

What are the reasons for the differences in energy prices for local governments? The president of Tauron explainsTVN24

Main photo source: Shutterstock, tvn24.pl