The company’s business is the production of electricity from gas generated by the separation of wet natural gas, extracted as a by-product of oil production on offshore production platforms located in the Baltic Sea. The peculiarities and innovative nature of this business model have caused significant regulatory concerns, particularly with regard to obligations under the provisions on emergency measures to limit electricity prices.
Despite the request to the Settlement Administrator S.A., the company did not obtain a clear position on the obligation to make allowances for the Difference Payment Fund. In this situation, HWW carried out a detailed, multi-faceted analysis of domestic and EU laws and the client’s operating model.
The analysis confirmed that, in principle, the company’s activities are subject to mandatory write-offs to the Fund, in accordance with Article 21 (1) (10) of the Law of October 27, 2022 on emergency measures to reduce the level of electricity prices and support certain consumers. At the same time, however, the law firm’s team identified a key and so far unexploited legal avenue – the possibility of qualifying the company’s activities as a demonstration project, within the meaning of Article 22 (2) of the indicated Law and Article 2 (24) of Regulation (EU) 2019/943 of the European Parliament and the Council.
As a result, the HWW Law Firm developed and implemented a legal strategy aimed at obtaining the company’s status as a demonstration project, which allows the company to exclude the obligation to make deductions for the Difference Payment Fund.
Obtaining the status of a demonstration project is of strategic importance not only for the Client itself, but also for the entire energy market in Poland and Europe. This status is currently held by only a limited number of entities in the EU, and is associated with the possibility of obtaining significant financial support from EU funds earmarked for research and development in the energy sector. The project thus constitutes an important regulatory precedent and an example of an effective combination of innovative technological solutions and advanced legal advice.
Aleksandra Lindner – Partner, Attorney at Law, Court Mediator; Zuzanna Bokina-Kiełbasa – Legal Counsel, Managing Associate Corporate&Energy Team; Adrian Łukasik – Legal Counsel, Senior Associate were responsible for handling the case on the Law Firm’s side.
Running a company with a matter to resolve?
That is where most conversations with a lawyer begin. Describe the matter in your own words. We will check whether we can help and set out the scope, the price and the timing of the advice. The quote commits you to nothing, and you do not need to know the law, that part is on us.
- 1 Talk
You tell us what is going on, in your own words.
- 2 What next
We tell you your options and what it costs.
- 3 We act
You give the go-ahead and the matter is ours.
Would you rather talk right away? Book a consultation.
Aleksandra Lindner is a Polish advocate (adwokat), a partner at HWW and a court mediator. She advises on corporate matters, M&A transactions, contracts and disputes, and heads the firm’s energy law practice covering electricity, gas, heat and flexibility services. Distinguished in the DGP 2026 Index of Law Firms and Lawyers of the Future in the category “Energy and green transformation”.
Aleksandra Lindner’s experience and publications →
