Regulatory environment

Purpose of the regulation

In the period from 1 July 2024 to 30 June 2025, heating fee rates gradually increased to the levels established in the Act. Energy companies are required to apply to eligible customers prices and rates for supplied heat no higher than the limit indicated in the Act, receiving compensation in return. 

Heating fee rates until 30 June 2024:

• PLN 150.95/GJ net for heat generated in heat sources fired with natural gas or fuel oil;
•  PLN 103.82/GJ net for heat generated in other heat sources;
  Heat rates from 1 July 2024 to 31 December 2024 for all heat sources: PLN 119.39/GJ net.

Heat rates from 1 January 2025 to 30 June 2025 for all heat sources: PLN 134.97/GJ net.

Impact on KOGENERACJA Group

The price level in accordance with the 22nd Tariff for heat approved by the President of the Energy Regulatory Authority, as amended, did not exceed the average heat generation price with compensation in 2024. In the case of heat generated in the sources of EC Zielona Góra S.A., the heat price with compensation was applied only to heat consumers from local gas boiler plants starting from 1 October 2022. Since 1 July 2024, in relation to heat generated in EC Zawidawie, its price exceeds the values specified in the discussed protective mechanism, therefore the average generation price with compensation is applied in settlements with consumers.

Purpose of the regulation

The Act introduced maximum heat supply prices, i.e. prices and fee rates from the tariff applicable on 30 September 2022 in that system, with respect to both heat generation and its transmission and distribution, increased by 40%. The limitation of heat price increases related to end users, i.e. households and public utility companies listed in the Act

Impact on KOGENERACJA Group

The price level in accordance with the 24th Tariff for heat approved by the President of the Energy Regulatory Authority and corresponding to the change in the Heat Tariff applicable since exceeded 40% (and 46% since 1 July 2024) of the increase in prices and fee rates applicable on 30 September 2022. The excess of the maximum heat supply price has applied to heat consumers from individual tariff groups.

The level of heat prices in the subsidiary EC Zielona Góra S.A. resulting from the XXIV Heat Tariff in force since 1 January 2024 exceeded 40% (and 46% from 1 July 2024) of the increase in prices and fee rates in force on 30 September 2022 in the period to 30 June 2024. The excess of the maximum heat supply price concerned consumers of heat from local gas boiler plants from 1 October 2022, and consumers of heat from the heating network from 17 January 2023. From 1 July 2024, the maximum heat supply prices will apply only to eligible consumers of district heat.

The level of heat prices in the subsidiary EC Zielona Góra S.A. resulting from the XXIV Heat Tariff in force since 1 January 2024 exceeded 40% (and 46% from 1 July 2024) of the increase in prices and fee rates in force on 30 September 2022 in the period to 30 June 2024. The excess of the maximum heat supply price concerned consumers of heat from local gas boiler plants from 1 October 2022, and consumers of heat from the heating network from 17 January 2023. From 1 July 2024, the maximum heat supply prices will apply only to eligible consumers of district heat. 

Purpose of the regulation

The aim of the Act was to introduce a protective mechanism to minimise electricity price increases. The revenues of generators and sellers have been limited, while the obtained funds have been redistributed to end consumers. The mechanism provides that regardless of the increase in electricity prices on the wholesale market, the following maximum (capped) price will be applied in settlements with eligible customers: PLN 693 /MWh; The tariff price and maximum price freezing mechanism is valid until 30 September 2025.

Impact on KOGENERACJA Group

In the case of KOGENERACJA Group, end consumers of electricity are not households. In 2024, in the Parent Company, one consumer was covered by the support mechanism in accordance with Article 2 point 2 letters b and c.

The level of electricity consumption by the eligible customer in the period from 1 January 2023 to 31 December 2023 at the energy consumption point amounted to no more than 90% of the average annual electricity consumption of such customer in the period from 1 January 2018 to 31 December 2022

Purpose of the regulation

The Act introduced the obligation for electricity producers and companies involved in electricity trading to make monthly allocations to the Price Difference Payment Fund. The funds transferred to the Fund were used to compensate for the difference between the market price of electricity sold and the statutory price limit, as well as to finance other activities related to the electricity market. The obligation to make the allocations to the Fund concerned the period from 1 December 2022 to 31 December 2023.

Impact on KOGENERACJA Group

The final settlement of the allocation took place in June 2024 and reduced costs by PLN 13,806 thousand.

Purpose of the regulation

The Act introduces regulations aimed at accelerating the issuing of permits in the area of RES by shortening the applicable deadlines for the indicated proceedings and provides that the activities relating to the construction or modernisation of RES installations and devices and installations necessary to connect a given RES installation to the grid, as well as heat pump installations with a capacity of up to 50 MW are considered of an overriding public interest. The Act entered into force on 28 December 2024.

Purpose of the regulation

The draft regulation constitutes the implementation of the statutory authorisation contained in Article 59 paragraph 3 of the Act of 14 December 2018 on the promotion of electricity from high‑efficiency cogeneration, which imposes on the minister responsible for energy the obligation to determine, by way of a regulation, the maximum values of investment costs and operating costs of building and operating a new comparable cogeneration unit. The amendment to the regulation consisted in updating the rates specified in the regulation; transitional provisions were also added to prevent a situation in which entities implementing investments under the current legal status could negatively impact the effects of the change in regulations. The update of the rates specified in the regulation results from changes in the conditions for implementing investments in the combined heat and power plant sector and for the operation of this type of installations

Purpose of the regulation