POLAND Law and Practice Contributed by: Tomasz Młodawski, Krzysztof Cichocki, Łukasz Wyszomirski and Krzysztof Fasula, Sołtysiński Kawecki & Szlęzak
The transmission licence issued by the President of ERO requires: • compliance with applicable grid codes and techni- cal standards; • the maintenance of system reliability obligations; • compliance with interconnection requirements; and • regular reporting to the President of ERO. Amendments to approvals are granted by way of an administrative decision issued by the competent authority upon application by the project developer. Modifications to environmental decisions are possi- ble where the proposed change does not constitute a material alteration requiring a new environmental impact assessment; otherwise, a new or amended EIA procedure with public participation is required. Amendments to the transmission licence similarly require a formal application to and an administrative decision by the President of ERO. 4.4 Eminent Domain, Condemnation and Expropriation Rights to Construct and Operate Transmission Lines and Associated Facilities Land rights for the construction and operation of transmission infrastructure are primarily acquired through negotiated arrangements. The principal mechanism is the voluntary establish- ment of a transmission easement under the Civil Code, granting the TSO the right to install, operate and maintain transmission infrastructure on private land in exchange for agreed compensation paid to the landowner. Where voluntary agreement cannot be reached, the TSO may seek the establishment of a transmission easement by way of court order under the Civil Code, or may pursue compulsory acquisition through statu- tory procedures under the Transmission Network Investment Act. In the latter case, the competent voivode may establish a compulsory transmission easement or, where strictly necessary for the imple- mentation of the project, authorise expropriation of the required property rights in accordance with appli- cable public purpose requirements.
Compensation is determined based on market value assessed by a licensed property valuer in accordance with statutory valuation principles. It is awarded by administrative decision and paid in accordance with applicable statutory rules. Landowners are entitled to challenge both the establishment of the easement or expropriation decision and the level of compensation before the administrative courts, without prejudice to construction works proceeding under the applicable legal framework. 4.5 Monopoly Rights to Provide Transmission Services The Energy Law provides that there can be only one TSO in Poland, and that this TSO must be a state- owned company. In practice, the TSO function is held by PSE S.A. under the relevant transmission licence and the decision on the appointment of the TSO (both decisions issued by the President of ERO). The transmission monopoly is subject to regulatory oversight by the President of ERO and must be exer- cised in compliance with the principles of third-party access and non-discrimination. Transmission ser- vices are rendered based on the tariff approved by the President of ERO under a revenue cap regulatory mechanism, ensuring that the economic benefits of the monopoly position are controlled in the interest of network users. 4.6 Transmission Charges and Terms of Service Transmission tariffs in Poland are regulated by the President of ERO based on the model that allows for the recovery of the justified costs of regulated activity together with the justified return on capital invested (revenue cap regulatory framework). In practice, the TSO develops a draft tariff and submits this tariff to the President of ERO for review. The approved tariff is published and applied on an annual basis. The terms and conditions for the provision of trans- mission services are governed by the Grid Code, which is prepared by the TSO and approved by the President of ERO. The Grid Code is binding on all enti- ties connected to or using the transmission network, and sets out the technical, operational and access requirements applicable to system users. Access to
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