Changes to the billing of prosumers: Key principles
Pursuant to the currently applicable provisions, i.e. Article 4b(1) of the Act of 20 February 2015 on renewable energy sources (i.e. Journal of Laws of 2023, item 1436, as amended; hereinafter referred to as the ‘RES Act’) the value of electricity fed into the grid by renewable energy prosumers (RES) and collective RES prosumers is calculated on the basis of the monthly market price of electricity (RCEm). From 1 July 2024, these calculations will be based on the market price of electricity (RCE).
To increase the cost-effectiveness of prosumers’ settlements under the net-billing system, it is proposed to amend the provisions of the Renewable Energy Sources Act. This change will enable prosumers who were settled according to the RCEm prior to 1 July 2024 to continue using this settlement system. However, prosumers will be able to switch to the new billing system based on the market price of electricity (RCE) by submitting an appropriate declaration to their energy supplier.
Pursuant to Article 4b(2a) of the Draft Amendment, if the declaration referred to above is submitted, the change in the method of determining the value of electricity will take effect from the first billing period following the billing period in which the declaration was submitted. It should be emphasised, however, that in accordance with Article 4b(2b) of the Draft Amendment, once a declaration regarding a change in the method of determining the value of electricity has been submitted, it will not be possible to submit such a declaration again.
One of the key elements designed to encourage prosumers to switch billing systems will be the possibility of increasing the refund for unused funds relating to electricity fed into the grid. Under the new system – in accordance with Article 4(11a) of the Draft Amendment – this refund may amount to up to 30% of the value of the energy over the following 12 months (the so-called overpayment). If a prosumer decides to remain with the current billing system, the amount of the overpayment refund will not increase and will continue to be a maximum of 20%.
Key changes in the draft amendment
The proposed changes set out in Article 4c(4) of the Draft Amendment also provide for the introduction of a mechanism increasing the value of the prosumer deposit for a given calendar month by a correction factor of 1.23. This value will be credited to the prosumer account in the following calendar month, which will improve the cost-effectiveness of settlements under the net-billing system by reducing the difference between the market price of energy for the prosumer and the rate offered by the operator under its tariff.
The amendment also provides for changes to Article 4c(9) of the RES Act to resolve the issue of settling energy surpluses arising from the net-metering system. Under the net-metering system, surpluses in electricity generation were utilised in such a way that electricity not consumed on an ongoing basis was fed into the so-called distribution network storage, from which electricity could be withdrawn during the year by paying 80% or 70% of the value of the electricity, depending on the capacity of the photovoltaic installation.
At the beginning of April 2022, a net-billing system was introduced, under which prosumers could sell surplus electricity to the network operator at a strictly defined price, whilst paying for the electricity they consumed from the supplier without any discounts – that is, including distribution charges.
Changes to prosumer billing
Under the planned amendment, following the change to the billing system for electricity fed into the grid, the value of unused electricity will be credited to the prosumer’s account based on the average monthly market price applicable in the month preceding the change to the billing system.
Furthermore, as part of the amendment, the rules governing market adjustments to electricity prices are to be modified. The adjusted value of these prices is calculated if there is a change in the data used to determine prices – for example, following a correction provided by the electricity distribution system operator. Currently, a price adjustment must be calculated if the difference between it and the previously calculated price exceeds 0.1%.
Introducing a change to the measurement data correction threshold from 0.1% to 2% will enable a reduction in the number of necessary settlement adjustments, which in turn will lower the costs associated with settling accounts for prosumers operating under the net-billing system.
Summary
The changes to prosumer billing, resulting from the amendment to the Renewable Energy Sources Act, aim to improve the cost-effectiveness and transparency of this system. The new regulations offer more benefits to prosumers, whilst at the same time presenting them with new challenges related to the need to make decisions regarding the choice of billing system. The amendment is a step forward towards increasing the share of renewable energy sources in Poland.
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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