POLAND Law and Practice Contributed by: Tomasz Młodawski, Krzysztof Cichocki, Łukasz Wyszomirski and Krzysztof Fasula, Sołtysiński Kawecki & Szlęzak
Principles Applied The President of ERO applies the principles of cost- reflectiveness, non-discrimination and transparency in setting distribution tariffs. Tariffs are required to be just and reasonable, and must reflect the justified costs of operating and developing the distribution network. They apply equally to all users connected to the rele- vant distribution network under comparable terms and conditions. The regulatory methodology is designed to incentivise DSOs to improve operational efficiency and service quality, including through quality incen- tive mechanisms linked to continuity-of-supply indi- ces (SAIDI/SAIFI). Appeals and Complaints Tariff decisions of the President of ERO are subject to appeal to the District Court in Warsaw, which con- ducts a substantive review of the legality and merits of the regulatory decision. Users may also file com- plaints with ERO against DSOs for non-compliance with licence conditions, discriminatory treatment, or breach of the approved tariff. ERO may impose administrative financial penalties on DSOs for such violations.
requests a shorter period, and are renewable. The President of ERO supervises compliance with licence conditions and applicable regulatory obligations, including functional unbundling requirements – par- ticularly management independence and non-disclo- sure of commercially sensitive information to affili- ated supply entities, quality-of-service standards and reporting obligations. The exclusivity is balanced by statutory obligations to provide non-discriminatory third-party access to the network on regulated tariff terms, in accordance with the Energy Law and applicable EU electricity market legislation. 5.6 Electricity Distribution System Charges and Terms of Service Tariff Setting Distribution charges are regulated tariffs approved by the President of ERO and are not subject to individual negotiation. Each DSO submits a tariff proposal to the President of ERO, setting out its distribution net- work operating costs, capital expenditure programme, and proposed return on the regulatory asset base. Approved tariffs are published and take effect for a defined regulatory period, typically one year, although multi-year regulatory periods are under development in line with EU regulatory best practice. Tariffs are structured by a customer group (voltage level, con- tracted capacity) and comprise a fixed capacity com- ponent and a variable energy throughput component.
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