Report SK&S | Obligation for energy companies to “contribute to the Fund” to finance the “price freeze” for households, SMEs, and selected public-social sector end-users in 2023

The bill on extraordinary measures to reduce electricity price levels and support certain end-users in 2023 was adopted by the Parliament and will be referred to the President. The Bill establishes rules to “contribute to the Fund” to finance the “price freeze” for households, SMEs, and selected public-social sector end-users in 2023. The Bill aims to implement Article 6 of Council Regulation 2022/1854 concerning the mandatory cap on market revenues and the distribution of excess revenues to electricity end-users.

The Bill proposes the introduction of maximal electricity prices of PLN 693/MWh for households and PLN 785/MWh for micro businesses, SMEs, and selected public-social sector end-users.

According to the Bill, companies that are engaged in electricity trading and are obliged to apply maximum prices will be entitled to compensation. To finance the compensation, the legislator intends to impose an obligation on energy companies engaged in electricity generation or trading to “contribute the Price Difference Payment Fund” for the period from 1 December 2022 to 30 June 2023.

Regardless of the above, the Bill provides a solution that allows, in the event of shortages in the market of ammonia water necessary for the proper operation of equipment to reduce nitrogen oxide emissions into the air, the temporary admission to operation of generating units, with a capacity of 50 MW or more, fuelled by hard coal.

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