From 1 January 2025, micro, small and medium-sized enterprises, as well as agricultural producers not included in tariff group G, must be billed at market rates. Whilst households will continue to benefit from frozen energy prices (at PLN 0.5000 net per 1 kWh) until the end of September 2025, the entities mentioned above have not been included in this support scheme. The lack of protective mechanisms results in significant cost increases for businesses, which may lead to financial difficulties, particularly in energy-intensive sectors.
What will drive up energy costs for businesses?
- Increases in distribution tariffs – The President of the Energy Regulatory Office has approved new tariffs for the largest electricity distributors, which will result in higher charges for businesses
- Increase in the RES levy – From 1 January 2025, the RES levy (intended to support energy generation from renewable sources) has risen from PLN 0/MWh to PLN 3.50/MWh, which will also affect bill amounts
- No energy price freeze – Businesses will be billed for electricity at current market prices, which may be volatile and significantly higher than the previous regulated rates. The decision to freeze energy prices for households until 30 September 2025 leaves other entities in uncertainty regarding future tariffs. There is a risk that the planned market analyses may result in further increases in energy prices towards the end of this year
- Capacity charge – As one of the items appearing on electricity bills from 2021, it is intended to finance energy security. For non-flat-rate customers, the capacity charge rate will depend on the amount of electricity drawn from the grid during selected hours of the day (on working days from 07:00 to 21:59). According to a statement by the President of the Energy Regulatory Office (URE), in 2025 the rate will be PLN 0.1412/kWh, representing an increase of approximately PLN 0.015/kWh compared to the rate applicable in 2024 (PLN 126.73/MWh). This rate applies to industrial customers and large enterprises.
What might the projected energy prices for businesses be?
Due to the changes mentioned earlier, electricity prices may rise significantly in the new year, by as much as several dozen per cent. Estimates suggest that rates could reach as high as PLN 2,000/MWh, which represents a significant burden on corporate budgets.
By way of comparison, the maximum prices set for selected entities are:
- PLN 500/MWh – for eligible customers, as defined in the Act of 27 October 2022 on extraordinary measures aimed at limiting electricity prices and supporting certain customers in 2023 and 2024; this applies, for example, to households and public institutions
- PLN 693/MWh – for other consumers not covered by the protective mechanism in the form of frozen energy prices
It is worth noting that the above figures do not include VAT and excise duty, which further increases the final cost of energy for businesses.
Consequences of terminating an electricity supply contract
In the face of rising energy costs, many businesses are beginning to scrutinise their electricity supply contracts in detail, looking for opportunities to terminate their electricity contracts. When making such a decision, particular attention should be paid to the contract term, as this has a decisive impact on any additional costs associated with early termination.
In the case of fixed-term contracts, terminating an electricity contract may entail the payment of compensation. Under the Energy Law, the end user may terminate a fixed-term contract without incurring costs or compensation, other than those specified in the contract. This means that it is worth thoroughly analysing the terms of the contract in advance for any provisions allowing the energy supplier to charge compensation as a contractual penalty for early termination of a business electricity contract. In the case of a domestic electricity customer and an electricity customer who is a micro-enterprise or small enterprise, to the extent that they consume electricity for the purposes of their core business, the amount of such costs and compensation may not exceed the amount of direct economic losses incurred by the energy supplier as a result of the termination of a fixed-term contract by the customer. The premise of direct losses incurred by the energy supplier is therefore crucial here, as if the sales period for subsequent years has not yet commenced, the calculation of such compensation appears to be unfounded, since the energy supplier has not yet incurred any direct losses. However, the question of whether compensation should be calculated and the amount thereof is, in the vast majority of cases, a matter of dispute between the customer and the energy company.
If, on the other hand, the contract was concluded for an indefinite period, energy law provisions allow the end consumer to terminate the electricity contract without incurring costs. However, they are obliged to pay for the energy consumed and for the services provided in relation to its transmission or distribution.
Returning to the issue of higher electricity costs, when terminating an energy supply contract, it is worth bearing in mind that if, after terminating the energy supply contract, the customer does not enter into a new contract with another energy supplier relatively quickly, they may be subject to the so-called reserve tariff, the rates of which are usually higher than those offered in standard contracts. As a result, they may face an increase in their monthly electricity costs.
If you are considering terminating your electricity supply contract, please contact HWW Hewelt Wojnowski Lindner & Partners to ensure your company receives professional support.
Specializes in corporate services for business entities and personal data protection. Assists the firm's clients in the preparation of all corporate documentation, including the registration of commercial companies and the further registration of changes, and provides ongoing and comprehensive advice on business. Provides advice in carrying out transformation processes of commercial companies, including transformations and mergers. Prepares and gives opinions on contracts, regulations and current documentation…
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