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Amendments to Polish energy law

On June 14 2000 amendments to the Energy Law came into force in Poland. The main changes include bringing more transparency to the relations between power companies and consumers, encouraging and facilitating reductions of costs of power networks' development, protecting consumers against excessive increases of power prices and giving more attention to environment-friendly power resources.

In order to avoid litigation relating to unilateral changes of power prices and payment rates, the amended act provides for compulsory determination of the conditions of such operations in the agreements for power supply. On the other hand, power suppliers have been explicitly given the right to withhold supplies when consumers' installations are the cause of a direct threat to life, health or environment, or in cases of illegal power consumption. To enable consumers to have a control over the costs of their connections to power networks, the new act introduced an explicit obligation to conclude contracts for such operations. New regulations are also expected to encourage power companies to seek reductions in the costs of construction and extension of their networks. Moreover, it has been determined that the costs of developing the capacity of power suppliers cannot cause excessive increases of power prices. A certain liberalization of the principles of heat production licencing is to be noted, too. Finally, the obligation to purchase electric power and heat from alternative and renewable resources has been imposed on companies trading in or transmitting and distributing electric power or heat.

Ludomir Biedecki

Wierzbowski & Szubielska
Tel: +48 22 5234 111
Fax: +48 22 5234 755

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