This is particularly important information for businesses operating in the Republic of Poland, which must prepare for higher electricity prices from 1 January 2025. Whilst households are covered by a maximum electricity price of PLN 500/MWh for the period from 1 January 2025 to 30 September 2025, price freeze mechanisms for businesses, including micro, small and medium-sized enterprises (SMEs), have not been extended.
How much will businesses pay for electricity?
This means that from 1 January 2025, businesses must pay market rates for electricity. The absence of a price freeze for most businesses means that from January 2025 they can expect drastic cost increases. Forecasts suggest that energy prices could rise significantly, by as much as several dozen per cent, due to the need to bill for electricity consumption based on current market rates and additional charges, such as the capacity charge. The capacity charge, which was introduced in 2021, was intended to finance the energy transition and stabilise the energy system. Under the Act, the collection of the capacity charge has been suspended in respect of end users referred to in Article 89a(2)(1) of the Act of 8 December 2017 on the capacity market (Journal of Laws of 2023, item 2131). For many businesses, this may pose a significant financial challenge, forcing them to rethink their energy cost management strategies, as electricity prices could rise to as much as PLN 2,000/MWh.
Under the adopted Act, in 2025 the main beneficiaries of the protective mechanisms will remain households and selected public institutions, such as schools and hospitals. In 2025, the maximum price under the Act will be:
- PLN 500/MWh – for eligible customers referred to in point 2(a) of the Act of 27 October 2022;
- PLN 693/MWh – for other customers listed in Article 2(2)(d)–(f) of the Act of 27 October 2022.
Importantly, the above maximum rates do not include value added tax (VAT) or excise duty.
The maximum price referred to above will apply:
- from 1 January 2025 to 30 September 2025 – in the case of eligible customers within the meaning of the Act of 27 October 2022;
- from 1 January 2025 to 31 March 2025 – in the case of other eligible customers, i.e. those listed in Article 2(2)(d)–(f) of the Act of 27 October 2022.
Electricity prices – aid for small and medium-sized enterprises
In the context of the changes introduced by the Act, with regard to businesses, it should be noted that the Act has introduced an obligation to submit so-called information on de minimis aid for micro, small and medium-sized enterprises which, in the period from 1 July 2024 to 31 December 2024, benefited from a maximum electricity price of PLN 693/MWh. The deadline for submitting the information is 28 February 2025.
De minimis aid is granted together with the settlement document and is equivalent to the amount of compensation applied in respect of the maximum price (pursuant to the Act of 27 October 2022) in settlements with that enterprise for the period from 1 July 2024 to 31 December 2024.
The value of the de minimis aid granted to a given trader is the equivalent of the total amount of compensation for the application of the maximum price in settlements with that trader, collected by the entity granting the aid, i.e. the seller, for the period from 1 July 2024 to 31 December 2024. The date on which the de minimis aid is granted is the date on which the Settlement Administrator approves the application for settlement of compensation for the application of the maximum price to the trader.
If the application for compensation is approved, the Settlement Administrator approves the application and pays the compensation within 30 days of receiving a correctly completed application for compensation. Following final settlement with the Settlement Administrator, the seller provides information on the amount of support granted under de minimis aid.
Importantly, if a trader has previously submitted a declaration of using the maximum price but fails to submit the required declaration by 28 February 2025, the seller will add to the invoices the difference between the maximum price and the price resulting from the contract in settlements from 1 July 2024 to 31 December 2024, together with statutory interest.
This obligation arises from a new regulation introduced by the Act, which was not known to businesses at the time they decided to make use of the maximum price. The declaration must be submitted on the form and supplemented with detailed information regarding the support provided. The entity granting the aid, on the basis of the information provided, verifies the eligibility for state aid, including whether the state aid granted to a given business exceeds the permissible de minimis aid limits.
In summary, it should be noted that the legislator’s decision not to apply maximum electricity prices to businesses is a solution that is inadequate for the current market situation faced by many businesses. The current situation and the dynamics of changes in the energy market make it impossible to predict how electricity prices will develop in the long term. Admittedly, during 2024, electricity prices on the Polish Power Exchange were significantly lower than the frozen rate of PLN 693/MWh. However, it should be borne in mind that businesses which do not purchase electricity under the SPOT model are exposed to rising electricity bills from 1 January 2025, as a result of contracts concluded prior to the introduction of the energy shield.
The legislator’s decision to withdraw protective measures for businesses may have far-reaching consequences, including an increase in the prices of goods and services, which in the long term will also affect the financial situation of households.
There is no doubt that electricity prices will vary depending on the region, the seller and the electricity supplier. However, it is worth remembering that a business is not obliged to use the services of local energy companies exclusively. In accordance with Directive (EU) 2019/944 of 5 June 2019 on common rules for the internal market in electricity and amending Directive 2012/27/EU, a business is free to choose any supplier, without territorial restrictions as is the case with distribution system operators, that offers the most favourable contractual terms.
Rising electricity prices – what can businesses do? Terminating an electricity contract
In view of the above, it is recommended that businesses take a number of steps to minimise electricity costs, including, first and foremost, ongoing monitoring of the electricity market and regular tracking of prices and offers from energy suppliers, which may help in finding more favourable contract terms, as well as undertaking energy efficiency investments through equipment modernisation or the optimisation of production processes. Terminating a business electricity contract may prove to be a favourable option. HWW Hewelt Wojnowski Lindner i Wspólnicy offers assistance with this process. If you are interested in withdrawing from an electricity contract, cancelling an electricity contract, or terminating an electricity contract, we encourage you to contact our firm.
He gained his professional experience in one of Lublin's renowned law firms, dealing with civil and business law in its broadest sense. At the law firm Hewelt Wojnowski i Wspólnicy spółka komandytowa, he deals on a daily basis with current counseling in the field of business and the development of corporate documentation of companies, such as. Company agreements, bylaws of company bodies, agreements regulating relations between shareholders, resolutions of company bodies, M&A transactions. In addition to…
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