We have protected Poles from the crisis

In 2022, just as we were beginning to return to normality and rebuild our lives after the COVID-19 pandemic, Russia attacked Ukraine. The war across our eastern border posed further challenges for Europe - not only in terms of security, but also when it comes to economy.

The energy blackmail used by the Kremlin was intended to raise prices in Europe, to make access to key raw materials more difficult and dependent, and to weaken Poland and European countries. Putin wanted the winter to show the weakness of our country.

“Putin knew that without energy resources it was easy to create complete chaos,” pointed out Prime Minister Mateusz Morawiecki.

We, however, have successfully defended ourselves against this blackmail and protected the Polish people from the effects of the crisis that was triggered and exacerbated by Russia.

Government Solidarity Shield

We have halted the rise in energy prices by introducing the Government Solidarity Shield, which protects around 10 million households. It guarantees a fixed price for electricity, thanks to which an average Polish family will save as much as PLN 2,000 a year.

“Today we have some of the cheapest electricity in Europe for households, some of the cheapest thermal energy, some of the cheapest fuel prices. We act immediately as soon as there is a problem,” stressed Prime Minister Mateusz Morawiecki.

Institutions such as schools, nurseries, cultural institutions or hospitals were not forgotten. The facilities have benefited from, among other things, frozen energy prices and allowances for vulnerable entities.

We have also offered support to businesses that have benefited from reduced energy prices under the Government Solidarity Shield - this is a reduction in bill increases of up to 70 per cent. Up to 99.8 per cent of all businesses will benefit from the solution.

Examples of savings for entities thanks to the Government Solidarity Shield

• A catering establishment with an estimated annual electricity consumption of 56.4 MWh will save PLN 18,600 on its bills with the support.
• A school with an estimated annual electricity consumption of 200 MWh will save PLN 66,000 on its bills with the support.
• A hospital with an estimated annual electricity consumption of 2,000 MWh will save PLN 660,000 on its bills thanks to the support.

Find out more about the Government Solidarity Shield.

 

Government Energy Shield

Polish homes were warm during the winter – it was ensured, among other things, thanks to the one-off allowances the government offered Poles under the Government Energy Shield:

• cash allowances for home heating
• limiting heat price increases to a maximum of 40%
• freezing of gas prices

These are the most important solutions that have helped Poles this heating season.

“Several million Polish families have benefited from protective allowances, from special subsidies. They continue to benefit from subsidies from the Polish budget, so that the high, Russian inflation we are facing will hurt at least a little less. Because that is our trademark - when things are going very badly around us, when one crisis follows another - we act. We do not pretend that there is no crisis around us,” said the head of government.

The Coal Allowance Act and effective cooperation between government and local government ensured that there was enough coal for all Poles. The efficient distribution of coal went hand in hand with a reduction in its price. The coal allowance of PLN 3,000 and the maximum price set by the government meant that the actual cost of a tonne of coal was only around PLN 1,000 this winter.

“At this point I would also like to thank the local governments. The process of distributing coal and various other energy carriers was done through proper organisation of the entire logistics process,” said the Prime Minister.

The government has also ensured security of gas supply through the construction of the Baltic Pipe pipeline and the Świnoujście gas port. Our country has become independent of Russian raw materials - this increases the energy security of Poles.

Find out more about the Government Energy Shield.

 

Government Anti-Inflation Shield

Poles have also experienced lower everyday prices thanks to the Government's Anti-Inflation Shield, which curbs inflation by reducing product prices. In 2022, as part of the Government Anti-Inflation Shield, we reduced VAT on many products and fuels. As a result, Polish women and men, among others, can buy products at a lower price than without government intervention.

“We decided to act immediately: we reduced VAT on heat, on electricity, on gas, on fuel, but not only - we also reduced VAT to zero on food, on basic food products. We also reduced VAT on fertilisers in order to make bread cost as low as possible, even though it is more expensive,” concluded Prime Minister Mateusz Morawiecki.

Poland has extended the 0% VAT rate on food products (e.g. meat and fish, dairy products, vegetables and fruit) until mid-2023. So far, thanks to this measure, Poles saved more than PLN 7.6 billion.

 

Find out more about the Government Anti-Inflation Shield.

 

Details of the measures introduced by the government can be found on the Chronimy Rodziny (Protecting Families) website.