The President has now signed the Energy Deregulation Act (UDER92). The new provisions cover both the relationships between energy undertakings and consumers, and matters relating to investment, district heating, and the administrative obligations of energy market participants. The Act introduces changes in the areas of billing, communication with consumers, grid connection, and the operations of undertakings in the energy and district heating sectors. We set out the key points to note.
Presentation of energy bills
One of the changes concerns the new manner of presenting electricity bills. On the first page of the document, suppliers are now required to include a summary containing the most important billing information. Amongst other things, consumers will be able to find therein, the total amount due, the cost of energy and its distribution, as well as the contract period. The solution is intended to enable consumers to familiarise themselves with the key billing information more quickly, without having to review the document in its entirety.
Communication with consumers
Electronic communication is to be the primary means of exchanging information between energy undertakings and consumers. At the same time, the possibility of using paper correspondence will be retained for those who do not wish to or are unable to use electronic means. The new provisions establish rules governing the use of both communication channels.
Grid connections
The changes will also affect the process of connecting new consumers to the network and commencing electricity supply. Distribution system operators are required to install meters within a period not exceeding 21 days from the date of receipt of notification of the conclusion of an energy supply agreement. This may be of significance for residential, commercial, and industrial investment projects requiring connection to the electricity network.
Fixed-term contracts
The new provisions clarify the rules governing early termination of fixed-term contracts. They concern in particular the costs associated with early termination of a contract and the scope of information to be provided to consumers regarding the financial consequences of such a decision. The aim of these changes is to establish clear rules for informing consumers of the consequences of early termination and to reduce ambiguity in this regard.
District heating
A significant proportion of the new regulations concern the district heating sector, and introduce a definition of heat and cold storage, defining the legal status of installations used for the storage of thermal energy and cold.
The amendment also covers matters relating to:
- The use of electric boilers
- The rules for calculating return on capital for district heating undertakings
- The operation of high-efficiency cogeneration
The changes relate to the rules governing the operations of district heating undertakings and selected technologies used for energy generation and storage.
Heat supply for industrial purposes
The Act also contains provisions relating to the supply of heat used directly in technological processes. In certain cases, exemptions will be possible from tariffs approved by the President of the Energy Regulatory Office. Provision has also been made for a reduction of certain licensing obligations relating to the generation of heat intended for industrial purposes. These provisions concern the rules for conducting business in the field of generation and supply of heat used in technological processes.
Reduction of administrative and reporting obligations
One of the objectives of the Act is to reduce selected administrative and reporting obligations imposed on energy market participants. The changes include the simplification of certain procedures relating to conducting business in the energy market. They apply to both energy undertakings and other entities subject to sector-specific regulations.
Mandatory natural gas reserves
The Act also contains provisions concerning the system for maintaining mandatory natural gas reserves. The mechanisms enabling the maintenance of strategic reserves of this resource have been retained. The amendment also addresses selected issues relating to energy storage and the functioning of the district heating sector, including solutions concerning technologies that enhance the flexibility of the energy system.
Significance of the changes introduced
The Energy Deregulation Act covers a number of areas of energy market operations without altering its fundamental principles. It concerns, amongst other things, the manner of presenting bills, communicating with consumers, grid connection, the activities of district heating undertakings, and selected administrative obligations.
In accordance with the legislature’s stated objectives, the solutions adopted are intended to lead to the simplification of certain procedures and the adaptation of selected regulations to the current conditions governing the functioning of the energy market. The changes introduced cover both matters of significance from the perspective of end consumers and issues relating to the conduct of business and the implementation of investments in the energy sector.
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