Unlike the termination of a contract, notice of termination and withdrawal are unilateral declarations of intent by one of the parties and do not require the consent of the other party to be valid. Notice of termination takes effect prospectively and results in the cessation of services on a specified date. Contracts often specify a notice period, which is the time between one party giving notice of termination and the moment the contract ceases to have effect. It is important to remember that during the notice period the contract remains in force, and the parties are obliged to comply with its provisions until it is terminated.
Withdrawal from a contract results in its annulment and is therefore retrospective in nature, relating to the past. Withdrawal from a contract produces legal effects as if the contract had never been concluded, which may be regarded as a form of ‘termination’ of the contract with retroactive effect, covering the period from the moment of its conclusion. The consequences of this action involve the obligation to mutually return the benefits received by the parties under the contract. In practice, in the case of electricity supply contracts, this means the obligation to pay for the electricity consumed up to the moment the notice of withdrawal is given.
The consumer’s right to withdraw from an electricity supply contract
In accordance with the provisions of the Act of 30 May 2014 on consumer rights (i.e. Journal of Laws of 2024, item 1796), a consumer who has concluded a distance contract or a contract outside business premises has the right to withdraw from the contract within 14 days of its conclusion, without having to state a reason for doing so.
The period for withdrawal from the contract begins on the date of conclusion of the contract; in the case of contracts for the sale of goods, it begins on the date the consumer takes possession of the goods. With regard to an electricity supply contract, this period runs from the moment of its conclusion.
Under the regulations, the energy supplier is obliged to provide the consumer with full information regarding the right to withdraw from the electricity contract no later than at the time of conclusion of the contract. This information should include: the deadline for withdrawing from the electricity contract, the procedure for exercising the right of withdrawal, and a model withdrawal form. The supplier is also obliged to provide details identifying the company, the subject of the service, the price and the duration of the contract. All information must be provided to the consumer in writing or, if the consumer agrees, on another durable medium, in a clear and simple manner.
A notice of withdrawal from an energy supply contract must be submitted in writing to the energy supplier with whom the contract was concluded. This notice may be delivered in person at the supplier’s premises, by post (preferably with proof of delivery) or submitted electronically – if the supplier provides this option. If the notice is submitted electronically, the supplier is obliged to confirm receipt of the notice on a durable medium without delay.
Pursuant to Article 31(1) of the Consumer Rights Act, in the event of a valid withdrawal from a distance contract for electricity or a contract concluded outside the trader’s premises, the contract is deemed not to have been concluded. This means that an electricity supply contract concluded under these conditions is cancelled, as if it had never been concluded. In practical terms, this means that in the event of a valid withdrawal, the consumer will not be obliged to pay for electricity that they have not used since the contract was concluded.
In summary, the right to withdraw from an electricity contract gives the consumer the option to withdraw from a distance or off-premises electricity supply contract within 14 days. If the energy supplier has failed to provide information on the right of withdrawal, this period may be extended to up to 12 months. However, it is important that the consumer submits the relevant notice of withdrawal within the time limit specified by law, which will allow them to avoid the obligations arising from the contract, and the contract will be deemed not to have been concluded.
The right of a business to withdraw from an electricity supply contract
Pursuant to Article 395 of the Act of 23 April 1964 – Civil Code (i.e. Journal of Laws of 2024, item 1061, as amended), the parties to a contract may stipulate in its terms the right to withdraw from the contract within a specified period. This right is exercised by submitting a declaration to the other party to the contract. If the right of withdrawal is exercised, the contract is deemed not to have been concluded. This effect is analogous to the effect of a consumer’s withdrawal from a contract under the provisions of the Consumer Rights Act.
Pursuant to Article 221 of the Civil Code: “A consumer is defined as a natural person entering into a legal transaction with a trader that is not directly related to their business or professional activity.” Entrepreneurs entering into fixed-term contracts, including electricity supply contracts, may exercise the right to withdraw from the contract, provided that the contract is not directly related to the entrepreneur’s business activities. This means that entrepreneurs may exercise the right to withdraw in the case of contracts concluded for private purposes, not directly related to their professional activities.
It is worth noting, however, that entrepreneurs conducting business activities in the form of commercial law companies (e.g. general partnerships, professional partnerships, limited partnerships, limited partnerships with share capital, limited liability companies or joint-stock companies) do not have the right to withdraw from a distance contract for electricity. Therefore, for such entities, the possibility of exercising the right to withdraw from the contract is excluded, as the legislator restricts this right exclusively to natural persons conducting business activity as sole traders.
With regard to distance contracts, entrepreneurs who do not operate as a commercial company may exercise the right of withdrawal on the same terms as consumers, provided that the contract is not of a professional nature. This means that an entrepreneur who enters into an electricity supply contract for their own use, rather than as part of their business activities, may exercise the right of withdrawal within 14 days of the contract being concluded.
HWW Hewelt Wojnowski Lindner i Wspólnicy has extensive experience in advising on energy law. If you are therefore interested in terminating a business electricity contract, please contact us and we will help you effectively terminate your electricity contract.
She gained experience in providing day-to-day legal services to individuals and entrepreneurs at a number of law firms in Warsaw specializing in corporate law and family law. At the firm, she provides services to entrepreneurs and individual clients in the field of contract and business law. As part of her professional practice, among other things, she analyzes, reviews and creates civil law contracts, prepares legal opinions in the field of civil and business law, and drafts and prepares corporate documents,…
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