Freeze on electricity prices

The bill introduces a maximum price for electricity sold to eligible consumers until 2023. The maximum prices will apply to the following entities:

The bill reads that the first group of eligible consumers will not enjoy the maximum price until they exceed a specific threshold of energy consumption (2 MWh in the case of households).  If their energy consumption is below that threshold, they will continue to pay the 2022 rates. 

For enterprises and other sensitive consumers, the maximum price will apply from 1 December 2022 to 31 December 2023. In some cases, it will be possible to use the maximum price before 1 December 2022. 

Power companies will be entitled to compensation for applying the maximum prices. Compensation for electricity sold to households and private consumers will be calculated on the basis of the difference between the maximum price and the reference price (arising from the tariff approved by the President of the ERO). Compensation for electricity sold to micro, small and medium-sized enterprises and other entities will follow different rules. 

Power companies will be entitled to apply for an advance payment on account of the compensation. The compensation itself will be settled on a monthly basis, also upon application of the eligible entity.      

        

The bill introduces also major obligations for renewable power producers. They will be required to pay contributions to the Price Difference Payment Fund in an amount linked to the volume of sold electricity.  The bill, however, allows an exemption from this requirement. The exemption is offered to production units with a total installed capacity of not more than 1MW and renewable energy installations benefiting from incentives (including RES auctions). It applies to the portion of sold electricity that is incentivised. 

Rödl & Partner experts keep abreast of legal developments in the energy sector and analyse them on an on-going basis. If you have any questions, please do not hesitate to contact us.