Poland aims to cap 2027 natural gas prices for some users funded by windfall levy

By Reuters News

- Poland aims to set a maximum price on natural gas for protected end-users including households in 2027, due to risks related to the situation in the Strait of Hormuz, with compensation to companies financed from a windfall levy on gas importers, the outlines of a draft government bill showed on Friday.

  • The outlines said a significant risk factor is the disruption to the transport of liquefied natural gas through the strait, which has reduced supplies and exerted upward pressure on gas prices in Europe and Asia.

  • According to the proposal, Poland's natural gas supplies were diversified and secure but potential spikes in market prices could negatively impact end-users, such as households, housing cooperatives and associations, and entities that carry out important public utility functions.

  • The draft outlines include a compensation system for gaseous fuel-traders, intended to cover the price difference resulting from the price cap.

  • The compensation would be financed through a windfall levy amounting to 10% of the net revenues of energy companies that hold a licence for the cross-border trading of natural gas and sell high-methane natural gas on the domestic market.

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