# Poland Faces Second-Highest Electricity Costs in EU Relative to Income High taxes and coal reliance drive electricity prices to near-record levels for Polish households. - **Source:** [Notes from Poland](https://notesfrompoland.com) - **Published:** 2026-11-03 - **Topic:** [Business](https://brifing.si/c/business) - **Original article:** - **On Brifing:** https://brifing.si/s/43021c29-b49d-4466-924c-abbe3a0513f5 ## Purchasing Power Disparity Poland recorded the second-highest household electricity prices in the European Union during the first half of 2026 when adjusted for purchasing power standards. While nominal prices ranked seventh, the cost of living adjustment reveals a significant burden on citizens. Only Romania currently faces higher electricity costs than Polish households within the bloc. ## Coal Dependency Impacts Poland remains heavily reliant on coal, which generated over half of the nation's power last year. This dependency forces generators to pay substantial fees under the EU Emissions Trading System. These carbon costs are passed directly to consumers, contributing to the highest share of taxes and levies on electricity bills in the EU. ## Tax Burden Analysis Taxes and levies accounted for 39% of the final electricity price in Poland during the first half of 2026. This figure significantly exceeds the EU-wide average of 18.6% and Germany's 23.6%. Without these specific charges, the nominal price of electricity in Poland would have actually fallen below the European Union average of €20.27. ## Subsidies and Market Distortion Despite high consumer prices, the state provides billions of zloty in annual subsidies to the domestic coal mining sector. Think tank experts note that mines often sell coal to power stations below extraction costs. This complex financial structure shields consumers from the full cost of coal production while simultaneously inflating final retail electricity bills. ## Political Pressure Mounting Energy costs have become a central point of political contention ahead of next year's parliamentary elections. Opposition parties frequently criticize EU climate policies, labeling them as unfair financial burdens. Analysts anticipate that the government may face intense pressure to reduce specific distribution charges in 2027 to alleviate the financial strain on households. ## Energy Transition Challenges Poland is currently balancing the high costs of maintaining aging coal-fired power stations with the need to fund a rapid energy transition. The state budget, already facing deficits, struggles to manage these competing financial demands. Journalists note that only one-third of Poland's current electricity generation is derived from carbon-free, renewable, or nuclear sources. ## Renewable Energy Progress Despite current challenges, Poland has made significant strides in diversifying its energy mix. Renewable energy share rose from 9% in 2015 to 29% in 2024. The nation recently launched its first offshore wind farm in the Baltic Sea, marking a critical step toward reducing long-term dependence on expensive, carbon-intensive domestic coal mining operations. ## Long-term Strategic Outlook Poland's national energy plan aims to reduce coal's share to 0-5% by 2040. Future capacity will rely on a mix of nuclear, gas, and expanded wind and solar infrastructure. This transition is essential for stabilizing long-term electricity prices and decoupling the national economy from the volatile costs associated with traditional coal-fired power generation. ## Sources covering this story - https://notesfrompoland.com/2026/11/03/poland-has-eus-second-highest-electricity-prices-accounting-for-cost-of-living/ — --- _Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._