Limitation of electricity prices

From November 2022, regulations limiting the amount of electricity prices for certain recipients have been in force (Act of 27 October 2022 on emergency measures aimed at limiting electricity prices and support for certain recipients in 2023 (Journal of Laws of 2022 item 2243)).

The regulations limit the level of electricity prices to PLN 785/MWh, among others for the SME sector, farmers, local government units, clinics and hospitals - the so-called eligible recipients.

The restriction applies in the period from December 1, 2022 to December 31, 2023.

Declaration

The condition for the eligible recipient to benefit from the electricity price limitation is submitting a statement to the energy company from which the eligible recipient purchases electricity.

Although this declaration should be submitted by November 30, 2022, even if the eligible recipient has not submitted the declaration within this period, it does not lose the possibility of taking advantage of the price limitation. If the statement is submitted later, the eligible recipient may take advantage of the price limitation from the month following the month in which the statement is submitted.

For example, if the eligible recipient submits a declaration to the electricity supplier in January 2023, he will be able to benefit from the price limitation from February 2023.

Compensation

The introduction of a price cap for eligible recipients means that the electricity seller bears the costs of the difference between the maximum price and the costs of its production or purchase from the energy producer.

An electricity seller who applies maximum prices in contracts with eligible recipients is entitled to receive compensation.

Applications for the payment of compensation and advance payments on account of compensation are submitted to the settlement administrator (Zarządca Rozliczeń S.A.) exclusively through the electronic platform provided by this entity (available at: https://prad.zrsa.pl).