HWW Hewelt Wojnowski Lindner i Wspólnicy sp.k. conducts tariff proceedings before the President of the Energy Regulatory Office (URE) concerning heat or electricity. Matters are led by Aleksandra Lindner, partner and adwokat (Polish advocate).
What this matter requires of counsel
Approval of the tariff
Energy undertakings holding a licence as a rule set and submit tariffs to the President of URE for approval (Article 47(1) of the Polish Energy Law (Prawo energetyczne)). Counsel reviews the licence scope, the activity, and the customer groups. For heat generation, counsel reviews the capacity of sources, supplies, and agreements (Article 47(1c) and (1d) of the Energy Law). Tariffs for trading in gaseous fuels as a rule do not require approval (Article 47(1a) of the Energy Law). The exception covers tariffs applied until 31 December 2027 for households and other customers referred to in Article 62b(1)(2) of the Energy Law. The President of URE may exempt an energy undertaking operating in competitive conditions from submitting tariffs (Article 49(1) of the Energy Law).
When to prepare the application
It is worth preparing the calculation of the first tariff before obtaining the licence, because the time limit for the application is short. An energy undertaking applies for its first tariff without delay after obtaining the licence, and at the latest within 30 days (Article 47(1b) of the Energy Law). A timely application permits advance-payment settlements until the tariff is approved and implemented, with the duty to settle overpayments for the whole period under the approved tariff (Article 47(1b) of the Energy Law). The undertaking submits the next tariff or an amendment at the latest two months before the previous one expires, or at the request of the President of URE (Article 47(1) of the Energy Law). Failure to meet the deadlines for the next tariff or an amendment risks a financial penalty (Article 56(1)(5a) of the Energy Law).
How to justify costs
The finance function shows the allocation of shared costs to activities and customer groups. Counsel reconstructs the calculation from the accounting records (Article 44(1)(1) of the Energy Law). The tariff is to cover justified costs and a justified return on the capital employed, and to protect customers against unjustified prices and fee rates (Article 45(1)(1) and (3) of the Energy Law). The President of URE verifies costs against financial statements and operational and financial plans, also by comparison (Article 47(2e) of the Energy Law). Counsel reviews the existing calculation for heat from cogeneration. A move to cost-based calculation excludes a return to the method of Article 47(2f) of the Energy Law in subsequent tariffs (Article 47(2f¹) of the Energy Law).
The decision and settlements
Counsel agrees the schedule of settlements and notifications. The proceedings are governed by the Code of Administrative Procedure, with a separate route of challenge (Article 30(1) of the Energy Law). The President of URE approves the tariff or refuses to approve it if it is inconsistent with Articles 44 to 46 of the Energy Law (Article 47(2) of the Energy Law). The President of URE announces the tariff in the URE Bulletin within 14 days of approval (Article 47(3)(1) of the Energy Law). The undertaking introduces the tariff after 14 days have passed, and at the latest on the 45th day from publication (Article 47(4) of the Energy Law). An undertaking engaged in gaseous fuel transmission introduces the tariff on the date set in the decision, no earlier than 14 days after publication (Article 47(5) of the Energy Law).
An electricity supplier notifies customers of a change in prices or fee rates, its reasons and conditions, except for contracts with a dynamic price (Article 5(6)(2) of the Energy Law). The supplier notifies households one month, and other final customers two weeks, before the change (Article 5(6)(2)(a) and (b) of the Energy Law). If tariff proceedings threaten the deadline, the undertaking notifies customers without delay after their conclusion (Article 47(6) of the Energy Law).
The appeal and the existing tariff
Counsel assesses the basis of the refusal before further settlements. An appeal from the decision of the President of URE lies to the Regional Court in Warsaw, Court of Competition and Consumer Protection. The time limit is 14 days from delivery of the decision (Article 30(2) of the Energy Law). When its term expires, the existing tariff continues to apply until the new tariff takes effect, if no decision has been issued or appeal proceedings are pending (Article 47(2c) of the Energy Law). The exception concerns a refusal justified by the need to reduce prices and fee rates below the existing ones, resulting from documented and described changes in the conditions of the activity (Article 47(2d) of the Energy Law).
How to assess counsel for this matter
The management board can ask a law firm three questions and request an answer using its own tariff as an example:
- Will counsel identify the missing cost evidence and the legal arguments?
- Will counsel indicate, using a request as an example, the data to agree, the persons responsible, and the method of approving the response?
- Will counsel present a schedule for publication, the start of settlements, the assessment of the decision, and the appeal deadline?
What we have done in this area
A company took over the role of operator of a medium-voltage distribution network. HWW prepared the application for approval of the first tariff for electricity distribution services, together with the descriptive part and the draft tariff. In 2023 and 2024, HWW conducted the tariff proceedings before the President of URE, including responses to requests. In parallel, it pursued the application to designate the company as a distribution system operator.
Offer and contact
We describe the scope, the fee and how to instruct us in the Tariff proceedings before the President of the Energy Regulatory Office (URE) offer. For the first conversation, the licence, the current tariff with its calculation, financial statements, the operational and financial plan, and correspondence with the President of URE are enough. You can describe the matter in the form or call +48 22 100 42 24.