Energy regulator approves gas distribution tariff increase for 2025

URE confirmed on Tuesday that the President of URE has approved the 2025 distribution tariff for Polska Spółka Gazownictwa.

PSG is the gas distribution system operator in Poland, delivering gas to 7.5 million customers through over 210,000 kilometers of pipelines. Orlen owns 100% of the shares in the company.

"The new tariff foresees an average increase of approximately 24.7% in distribution fees compared to the rates approved in tariff number 12, excluding charges for coke gas," URE stated.

"As a result, from the beginning of 2025, gas bills for the most common tariff groups will increase by about 2.60 PLN to nearly 30 PLN per month," URE added, noting that tariff number 13 for gas distribution services by PSG will apply from January 1 to December 31, 2025.

URE pointed out that the total gas bill consists of the costs of purchasing the gas and the costs of its distribution (transportation). From the beginning of 2025, the distribution tariff in groups W-1.1, W-2.1, and W-3.6 will account for approximately 25-36% of the total gas bill.

URE also mentioned that the gas sales tariff approved in June 2024 for PGNiG Obrót Detaliczny will still apply in the first half of next year.

From January 1, 2025, for customers under the PSG tariff and PGNiG OD tariff, as well as for the frozen subscription fee rates, the charges will rise by an average of 7.84% for customers in group W-1.1, 5.36% for customers in group W-2.1, and 5.25% for customers in group W-3.6 compared to the rates applied in the second half of 2024.

The Energy Regulatory Office (URE) reminded that the W-1.1 tariff group includes consumers who use gas for cooking. The W-2.1 group consists of individuals who use gas for both cooking and water heating. The W-3.6 group covers consumers who use the largest amounts of gas, including for heating their homes.

The regulator also pointed out that distribution fees, which consist of both fixed and variable distribution charges, may vary depending on the consumer's location (tariff area).

The President of URE approves tariffs for gas distribution services for all customer groups. However, tariffs for the sale of natural gas are only approved for households and consumers performing essential public utility tasks.

URE also added that tariffs for the sale of gas will be last approved for 2027. However, tariffs for using gas infrastructure (storage, transmission, distribution, and related to liquefaction and regasification) will continue to be approved.

Earlier on Tuesday, the URE chief also has approved tariffs for distribution companies.

"The President of the Energy Regulatory Office has approved tariffs for the five largest distribution companies (Enea Operator, Energa Operator, PGE Dystrybucja, Tauron Dystrybucja, Stoen Operator)," the URE statement said.

It was also noted that "the average annual distribution charges for households will not increase."

The Energy Regulatory Office (URE) explains that the total cost of an electricity bill consists of the costs of purchasing energy and the costs of its distribution (transport).

The President of the Energy Regulatory Office (URE) approves tariffs for both energy sales (for household consumers using tariffs from designated suppliers) and distribution services (for all consumer groups).

"Following the legislator's decision in November, the price for 1 MWh of electricity consumption has been frozen at 500 PLN/MWh until the end of September 2025. This means the price will remain the same as in the second half of 2024. Meanwhile, the distribution cost is determined by tariffs approved by the President of URE. On December 16, the Regulator approved distribution rates for the five largest companies for 2025. Consequently, the average annual distribution rates on household bills (Group G) in 2025 will not increase," the statement added.