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 Emergency Electricity Price Restraint Regulations.
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.
Expert in energy, commercial and business law - She has extensive experience in the areas of energy, commercial and business law, gained both at renowned Warsaw law firms and by serving as in-house lawyer at leading energy, financial and new technology companies. Her professional practice focuses on providing comprehensive legal services to corporations, managing mergers and acquisitions (M&A) transactions, transformations of commercial companies, and in resolving corporate disputes.
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