Legal Alert | Draft new regulations on maximum energy prices for SMEs and selected public-social sector customers

I. Status of work

The Sejm has adopted the Law on Emergency Measures to Reduce Electricity Prices and to Support Certain Consumers in 2023. The Draft freezes electricity prices for selected consumers and introduces energy price discounts for micro, small, and medium-sized entrepreneurs (SMEs) and selected public-social sector consumers.

Below we present information on the planned solutions, based on the information available at the moment. The final solutions will result from the adopted legislation and may differ from the information below. The Senate is currently working on the bill.

II. What will be the maximum prices and discounts on the price of energy?

The draft proposes to set the maximum Energy prices at the level of

  • PLN 693 /MWh – for eligible customers consuming energy in households, and
  • PLN 785 /MWh – for other eligible customers, including SMEs and selected public-social sector customers.

In addition, the Draft introduces additional discount for SMEs that reduced power consumption in 2023. The condition for granting the discount is the power consumption in 2023 at the level not exceeding 90% of the annual average volume consumed in 2018-2022, and the amount of the discount is 10% of the total price for electricity purchase payable for the period 1 January 2023 – 31 December 2023. Settlement of the discount is to take place in 2024.

III. For what period will the maximum prices be applied

Electricity companies will apply the maximum prices in principle for the period 1 December 2022 – 31 December 2023 and, if an energy sales contract/complex agreement was concluded after 23 February 2022, also in the period from the date of the agreement until 30 November 2022.

The settlement of the discount for the 10% reduction in power consumption by SMEs in 2023 is in turn scheduled for 2024.

IV. Who will be entitled to reduced energy prices?

Maximum prices will be available for:

  1. final customers purchasing electricity for household consumption (to the extent they consume electricity above the maximum electricity consumption limits set out in the Act of 7 October 2022 on special solutions to protect electricity consumers in 2023 in connection with the situation on the electricity market);
  2. SMEs, including agricultural producers who are natural persons, to the extent that they consume electricity for their primary activities;
  3. local government units and entities providing services to these units (including local government budgetary establishments, local government budgetary units, and municipal companies), to the extent that they consume electricity to perform mandated tasks and their own tasks, including services of general economic interest; and
  4. the public utilities indicated in the project, which carry out, i.a. health, educational, cultural, and social activities, to the extent that they consume electricity to provide services/basic activities/non-business activities indicated in the project (depending on the entity).

In turn, SMEs whose level of electricity consumption in the period 1 January 2023 – 31 December 2023 does not exceed 90% of the average annual power consumption in the period 1 January 2018 – 31 December 2022, will be eligible for the discount.

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