HWW Hewelt Wojnowski Lindner i Wspólnicy sp.k. helps obtain a licence to trade in electricity or gas. Matters are led by Aleksandra Lindner, partner and adwokat (Polish advocate).
What this matter requires of counsel
Scope and conditions
Trading in electricity and gaseous fuels requires a licence from the President of the Energy Regulatory Office (URE), with the exceptions in Article 32(1)(4) of the Polish Energy Law (Prawo energetyczne). The management board presents the purchase and sales plan, the products, and the countries of supply. Counsel maps transactions to the licence scope and checks the exclusions, also when the activity changes.
The company has financial resources ensuring the proper performance of the activity, or documents the possibility of obtaining them (Article 33(1)(2) of the Energy Law). The company has technical capabilities ensuring the proper performance of the activity (Article 33(1)(3) of the Energy Law). A company in bankruptcy proceedings or in liquidation, or not registered as a VAT taxpayer, will not obtain a licence (Article 33(3)(1) and (4) of the Energy Law).
The licence application
The application indicates the scope of the activity, the available resources, the licence period, and the date of starting the activity (Article 35(1)(2), (4) and (5) of the Energy Law). A company conducting business activity presents financial statements for the last 3 years (Article 35(1)(3) of the Energy Law).
An application concerning trading in natural gas with foreign countries indicates the planned average daily import from its start until 31 March of the following year (Article 35(1a) of the Energy Law). An application concerning export only does not require this information (Article 35(1aa) of the Energy Law). Counsel distinguishes import, export, and both directions before determining the need for a forecast.
Requests and the decision
The President of URE sets at least 21 days from delivery of the request to complete the application (Article 35(2a) of the Energy Law). An application not correctly completed within the time limit is left unexamined (Article 35(2b) of the Energy Law). The President of URE may make the licence conditional on financial security for third-party claims arising from improper performance of the activity (Article 38(1) of the Energy Law). The security is at least 1/12 of the highest annual revenue from the licensed activity planned for the next 3 calendar years (Article 38(2) of the Energy Law). The President of URE sets at least 30 days to indicate that revenue, on pain of the application being left unexamined (Article 38(3) of the Energy Law).
The tariff and the hedging strategy
The President of URE may exempt an undertaking operating in competitive conditions from submitting tariffs for approval (Article 49(1) of the Energy Law). An electricity trading undertaking without an exemption files a tariff application without delay, and at the latest 30 days from obtaining the licence (Article 47(1b) of the Energy Law). Tariffs in trading in gaseous fuels as a rule do not require approval (Article 47(1a) of the Energy Law). The obligation remains until 31 December 2027 for tariffs concerning the customers indicated in Article 62b(1)(2) of the Energy Law.
An electricity trading undertaking prepares and applies a hedging strategy (Article 10e(1) of the Energy Law). With traders, counsel analyses the profitability of contracts with customers under changes in wholesale prices, and liquidity on the day-ahead and intraday markets (Article 10e(2)(1) and (2) of the Energy Law). The undertaking submits the strategy to the President of URE every 3 years, by 15 December of the year preceding its period of validity (Article 10e(4) of the Energy Law). The undertaking files an annual report on the implementation of the strategy for the previous year by 30 April (Article 10e(6) of the Energy Law).
REMIT, CEREMP, and licence obligations
A market participant submits the registration form before a transaction subject to ACER reporting (Article 9(4) REMIT; Article 23a(1) and (2) of the Energy Law). A market participant from the EU registers in its country of establishment or residence (Article 9(1) REMIT, as amended by Regulation (EU) 2024/1106). A market participant entering wholesale transactions without the required entry is subject to a financial penalty (Article 56(1)(42) of the Energy Law).
The President of URE revokes the licence for trading in natural gas with foreign countries for failing to maintain mandatory stocks or failing to ensure their required availability (Article 41(2a) of the Energy Law). After a change of name or registered office, the company files an application to amend the licence within 7 days at the latest (Article 37(2c) read with Article 37(1)(1) of the Energy Law).
How to assess counsel for this matter
- Counsel presents a mapping of transactions to the licence scope, with the basis for each exclusion.
- Counsel separates the resources held from planned financing and indicates the documents confirming each item.
- Counsel indicates who will deliver the data for responses to requests, and when.
- Counsel presents a schedule of obligations before trading starts and after the decision, with the basis for each deadline.
Offer and contact
We describe the scope, the fee and how to instruct us in the Licence for trading in electricity and gas offer. You can describe the matter in the form or call +48 22 100 42 24.