Polish energy law

Chapter 1 : General Provisions

Art. 1

1. The Act defines the principles of development of state energy policy, principles and terms of supply and use of fuels and energy, including heat and operation of energy enterprises, and also determines organs appropriate in issues of fuels and energy economy.

2. The purpose of the Act is creation of the conditions to provide for sustainable development of the country, energy security, efficient and rational use of fuels and energy, development of competition, counteracting negative consequences of existence of natural monopolies, consideration of natural environment protection requirements and obligations stemming from international agreements and protection of customers' interests and minimization of costs.

3. The Act does not apply to:

1). exploitation of fuels from deposits and their storage in the scope regulated by the Act of 4th February 1994 ''Geological and Mining Law'' (Journal of Laws of 1994 No. 27, item 96 and of 1996 No 106 item 496)

2). use of nuclear energy in the scope regulated by the Act 10th April 1986 ''Atomic Law'' (Journal of Laws of 1986 No 12, item 70, amendments: of 1987 No. 33, item 180, of 1991 No.8, item 28, of 1994 No.90 item 418 , of 1995 No 104 item 515 and of 1996 No 24 item 110 and No 106 item 496).

Art. 2

1. The Council of Ministers shall determine, in the way of an ordinance, which provisions of the Act do not apply to organizational entities subject to the Minister of National Defense, Police, State Fire Brigades, Border Guard, and military troops subject to the Minister of Interior and Administration, organizational units of the State Security Office and organizational entities in the penitentiary system subject to the Minister of Justice and shall determine organs appropriate for fuels and energy economy regulation in those entities.

2. The Council of Ministers may determine by means of the ordinance, special conditions for connection and supply of fuels and energy and requirements for equipment and installations for organizational entities subject to the Ministers of National Defense, Police, State Fire Brigades, Border Guard, military troops subject to the Minister of Interior and Administration, units of the State Security Office and in the penitentiary system organizational entities subject to the Minister of Justice.

Art. 3

1. Terms used in the Act shall mean:

1. energy - any form of processed energy,

2. heat - thermal energy in hot water or steam or other carrying agents,

3. fuels - solid, liquid, and gaseous fuels that serve as chemical energy carrying agents,

4. transmission - the transport of fuels or energy by means of a grid,

5. distribution - partitioning and supply of fuels and energy to customers by means of a grid,

6. trade - economic activity consisting of wholesaling or retailing of fuels and energy,

7. energy processes - technical processes within the field of production, transformation, transmission, storage, distribution or use of energy or fuels,

8. heat supply - energy processes related to supply of heat to customers,

9. equipment - technical equipment used in energy processes,

10. installations - equipment with interconnecting facilities,

11. the grid - interconnected and cooperating installations used to transmit or distribute energy or fuels, belonging to the energy enterprises,

12. energy enterprise - a business entity whose business is production, transformation, storage, transmission, distribution of energy or fuels or trade in fuels and energy,

13. customer - anyone who receives or derives energy or fuels upon contract with an energy enterprise,

14. commune - communes and communal associations and societies in the scope regulated by law on local government of 8 March 1990 (Journal of Law of 1996 No 13 item 74, No 58 item 261),

15. regulation - an application of legal instruments determined by the Act, including licensing, to ensure appropriate fuels and energy management and protection of the customers' interests,

16. energy security - the extent to which there is a provision for a given situation, of economy enabling full coverage of customers' current and anticipated demands for fuels and energy in a technically and economically justified manner, with observance of environmental protection requirements,

17. tariff - the set of prices and fees and conditions of their application prepared by an energy enterprise, introduced as binding for as determined groups of customers, according to the procedure determined in the Act,

18. illegal drawing of fuels or energy - drawing of energy without conclusion of the contract with the energy enterprise or contrary to the contract,

19. grid operation - grid work management,

20. unconventional source of energy - the source which does not uses burning of organic fossil fuels in the processing,

21. renewable source of energy - the source using in the processing non accumulated solar energy in the various forms in particular energy of rivers, wind, biomass, energy of the radiation of the sun in solar batteries.

Art. 4

1. Energy enterprises whose business is transmission and distribution of electric fuels and energy to customers shall be obliged to maintain the ability of equipment, installations and grids to provide supplies in a continuous and reliable manner, with the observance of binding quality requirements.

2. Energy enterprises whose business is transmission and distribution of fuels and energy are under the obligation to render to all entities services of transmission of fuels and energy, domestically exploited or produced, considering technical and economic conditions, upon terms agreed by the parties in the way of contracts.

3. Rendering of services mentioned in s.2 must riot reduce reliability of supplies and quality of fuels and energy below the limit determined in the provisions of law and may not cause unfavorable changes in price and scope of supply of fuels and energy to other entities connected to the grid.

Chapter 2 : Fuels and Energy Supply

Art. 5

1. Supply of fuels and energy takes place on the basis of contracts.

2. Contracts mentioned in s.1 should consider the principles determined in the Act and licenses and should contain at least: clauses on the quantity, quality, reliability, continuity of supply and reception, price and way of settlement, liability of parties for breach of terms of contracts, period of their duration and conditions for their termination.

Art. 6

1. The authorized representatives of the energy enterprises whose business is transmission and distribution of gaseous fuels, electric energy or heat, shall control the metering facilities, conformity of contracts and correctness of settlement.

2. The employees of the energy enterprises upon presentation of the relevant identification and written authorization issued by the energy enterprise have the right:

1) to enter the area of the real property or premises where the control is to be done,

2) to inspect equipment that is the property of the energy enterprise and also to perform the works necessary for its operation or maintenance and to perform necessary examinations or measuring.

3. The Minister of Economy shall determine in the way of the ordinance, detailed rules of inspection as well as samples of inspection minutes and authorizations to control.

Art. 7

1. Energy enterprises whose business is transmission and distribution of gaseous fuels, electric energy and heat have an obligation to conclude contracts for sale of energy or fuels or contracts for transmission services with customers or entities requesting connection to the grid, if it is technically and economically feasible to supply energy or fuels and the applicant meets the requirements for being connected to the grid and taking over the supply.

2. The obligation mentioned in s.1 does not concern a situation in which the requesting entity does not have a legal title to the object to which gaseous fuels, electric energy or heat are to be supplied.

3. Enterprises referred to in s.1 shall be obliged to meet the technical conditions of supply of energy and gaseous fuels upon terms specified in the separate provisions of law and in a license.

4. Energy Enterprises whose business is transmission and distribution of gaseous fuels, electric energy or heat have an obligation to provide for implementation and financing of the entire construction and development of grid, including connections, upon the condition that they are foreseen in the local physical plans, upon the terms determined in the provisions mentioned in art. 9 and 46 and in the plan mentioned in art. 20.

5. The implementation and financing of development of the grids, which development is not anticipated in the local development plans, is subject to agreement of the interested parties.

Art. 8

1. Disputes concerning services mentioned in art. 4 s.2, refusal of connection to the grid, refusal of conclusion of the electric energy, gaseous fuels or heat sale contract and unjustified discontinuity of their supplies are decided by the Chairman of the Energy Regulatory Authority upon the motion of one of the parties.

2. In cases referred to in s.1, the Chairman of the Energy Regulatory Authority, upon motion of one of the parties, may determine terms of commencing or continuing of supplies or rendering the transmission services until the case is finally resolved.

Art. 9

1. With respect to gaseous fuels and electric energy and heat the Minister of Economy will determine, in the way of an ordinance, specific terms for connection of entities to the grid, coverage of connection costs, trade of electric energy and gaseous fuels and heat, transmission services, grid operation and quality standards of customer service.

2. With respect to gaseous fuels and electric energy the Minister of Economy will determine, in the way of an ordinance, specific terms for development planning and investment financing.

3. With respect to liquid and solid fuels the Minister of Economy shall determine by the way of an ordinance detailed conditions for wholesale trade of solid and liquid fuels.

4. The Minister of Economy may, in the way of an ordinance impose on the energy enterprises dealing with trade of electric energy and heat, the obligation to purchase electric energy and heat produced by unconventional sources including renewable sources, and determine detailed scope of this obligation.

5. The Minister of Economy, in liaison with the Minister of Transportation and Maritime Economy, may determine in the way of an ordinance, detailed conditions for:

1) development planning and operation of pipelines used for transmission of liquid fuels and investment financing,

2) rendering liquid fuels transmission services through pipelines.

Art. 10

1. Energy enterprises generating electric energy or heat and involved in exploitation and distribution of gaseous fuels are under the obligation to maintain reserves of fuel in the amount sufficient to assure the continuity of electric energy, gaseous fuels and heat supply to the customers.

2. The Minister of Economy shall set by way of an ordinance:

1. size of fuel reserves mentioned in s.1,

2. the way of creation and control of reserve levels.

3. Outlays for purchase and maintenance of reserves mentioned in s.1 and 2 shall be included in the operational costs of energy enterprises.

Art. 11

1. The Council of Ministers may in the way of an ordinance, upon the motion of the Minister of Economy introduce for a defined period of time on the territory of the entire country or parts thereof, limitations in sales of solid or liquid fuels and limitations in supply and drawing of gaseous fuels, electric energy and heat in case of:

1. threat to the energy security of the state, consisting in the threat of a long term imbalance in the fuel and energy market,

2. threat to peoples safety,

3. danger of considerable material losses.

2. The Council of Ministers shall in the way of the ordinance set detailed principles and way of introducing limitations mentioned in s.1 and organs authorized to control compliance with of the introduced limitation.

3. Energy enterprises are not liable for the consequences of the limitations introduced by the ordinance mentioned in s.1.

Chapter 3: Energy Policy

Art. 12

1. The Minister of Economy is the supreme government administration organ appropriate in energy policy issues.

2. The tasks of Minister of Economy in the energy policy issues cover:

1. preparation in liaison with appropriate ministers of energy policy guidelines and coordination of their implementation,

2. determination of detailed conditions of operation and planning of the development of fuels and energy supply systems according to the scope and mode established in the Act,

3. supervision over operation of the national energy systems in the scope determined by the Act,

4. cooperation with voivods and local government organizations in the scope of planning and implementation of fuel and energy supply systems,

5. coordination of cooperation with international governmental organizations.

3. The Minister of Economy may set, by way of a ruling, national committees of such organizations for cooperation with international organizations, mentioned in s.2 p.5 above.

Art. 13

1. The Council of Ministers, upon a motion of the Minister of Economy shall determine the state energy policy guidelines.

2. The Minister of Economy in liaison with the Minister of Finance, every second year, submits to the Council of Ministers the assessment of implementation of the state energy policy guidelines, mentioned in s.1 above, together with possible proposals of their correction and short term prognosis for the period no longer than 5 years.

3. The Council of Ministers every two years submits to Sejm the assessment of the of the implementation of the state energy policy guidelines, proposals for their corrections and the short term prognosis for development of the energy sector.

Art. 14

The state energy policy guidelines mentioned in art. 15 have in purpose:

1. formulation for long-term period, not shorter than 15 years, of national fuels and energy economy development forecasts, based on assessments of energy security of the state,

2. determination of long-term state action program in order to implement recommendations stemming from point 1.

Art. 15

The state energy policy guidelines mentioned in art. 13 shall be developed according to the principle of the sustainable development of the country and shall determine in particular:

1. an assessment of the energy security of the state,

2. a forecast of domestic demand for fuels and energy considering the forecasted gross national product growth,

3. a forecast of fuels and energy imports and exports,

4. a forecast of production capacity of fuels and energy sources,

5. an investment policy,

6. activities in environment protection matters,

7. development of unconventional sources of energy including renewable sources,

8. a policy of rationalization of use of fuels and energy, considering promotion of energy efficient construction,

9. a licensing policy of activities of energy enterprises,

10. a pricing policy,

11. an obligatory reserves of fuels policy,

12. an energy sector ownership transformations policy,

13. the need for proposals relating to international cooperation,

14. the need for proposals relating to research and development,

15. the need for proposals for amendments to legal regulations.

Art. 16

1. Energy enterprises dealing with transmission or distribution of gaseous fuels or electric energy, prepare for the territory of their operation development plans to meet present and future demand for gaseous fuels and electric energy and to determine the way of financing of implementation of those plans, with the consideration of the local development plan of the commune.

2. Plans, mentioned in s.1, shall cover in particular:

1. anticipated scope of gaseous fuels and electric energy supplies,

2. undertakings for modernization and development of existing or construction grids and possible new sources of electric energy or gaseous fuels, including unconventional sources,

3. undertakings rationalizing the consumption of fuels and energy by customers,

4. a forecasted means of investment financing,

5. anticipated incomes necessary for implementation of plans.

3. Plans mentioned in s.1 above, are subject to agreement with the Chairman of Energy Regulatory Authority.

Art. 17

Voivods shall coordinate heat supply planning within voivodships and supervise conformance of beat supply plans with the state energy policy guidelines and the law in force.

Art. 18

1. Exclusive tasks of communes in the field of electric energy and heat supply consist of:

1. planning and organization of heat supply on the territory of commune,

2. planning and organization of lighting of public places and financing of lighting of streets, squares and roads located within a territory of the commune except for highways.

2.Communes shall carry out tasks mentioned in s.1 in accordance with the state energy policy guidelines and the local land use plan.

3. The expenditures for implementation of the tasks, mentioned in s.1 and 2 in respect of the lighting of streets, places and roads which are not communal assets shall be covered by the state budget.

4. The Minister of Finance shall determine, in the way of an ordinance, rules and deadlines for transfer of financial resources for the purposes mentioned in s.3.

Art. 19

1. Commune's board shall prepare draft guidelines for heat supply plan, hereinafter referred to as \"the draft guidelines\".

2. The draft guidelines shall be prepared for area of entire commune or its part.

3. The draft guidelines shall determine:

1. an assessment of the present situation and forecasted changes in heat demand,

2. undertakings rationalizing use of heat by customers and users,

3. possibilities of use of existing excess heat and local energy resources with particular consideration to co-generation of electric energy and heat and use of waste heat from industrial installations.

4. the scope of cooperation with other communes.

4. Energy enterprises shall reveal free of charge any information and proposals necessary for preparation of the draft guidelines.

5. The draft guidelines shall be agreed with the voivod in respect of conformance with the state energy policy.

6. The draft guidelines shall be made available for public review for 21 days, to be announced in the manner usually used in particular township.

7. Persons and organizational units interested in the heat supply within an area of commune, have the right to submit comments and reservations to the draft guidelines.

8. Commune's Council adopts guidelines for the heat supply plan, deciding on motions, comments and reservations submitted during the public availability of the draft guidelines .

Art. 20

1. Commune's board shall work out the heat supply plan basing on the guidelines mentioned in art. 19.

2. The draft heat supply plan shall contain:

1. proposals in respect of development and modernization of particular systems of heat supply including the economical justification,

2. the time schedule of implementation of the tasks,

3. anticipated costs of implementation of the heat supply plan and sources of their financing.

3. The Commune's Board submits the draft heat supply to the voivod in order to confirm its conformity with the guidelines, mentioned in art. 19.

4. Commune's Council adopts heat supply plan.

5. The activity in respect of heat supply run within the territory of commune shall conform provisions of the plan mentioned in s.4.

Chapter 4: The Organ for Energy and Fuels Economy Regulation

Art. 21

1. The tasks in the scope of regulation of the energy economy regulation and development of competition shall be implemented by the Chairman of the Energy Regulatory Authority hereinafter referred to as "the Chairman of ERA".

2. The Chairman of "ERA", is a central government administration organ appointed for 5 years by the Chairman of the Council of Ministers.

3. The Chairman of ERA may be removed by before the lapse of the term he was appointed only in the case of disease making him incapable to perform his duties, major violation of his duties, commitment of the crime determined in the enforceable judgment, or resignation

4. The Chairman of ERA performs the tasks, mentioned in s.1, supported by the Energy Regulatory Authority hereinafter referred as "ERA".

5. The Deputy Chairman of ERA is appointed and removed by the Chairman of Council of Ministers upon the motion of the Chairman of ERA.

6. The organization and mode of operation of ERA shall be determined in the statute granted by the Chairman of the Council of Ministers, in the way of the ordinance.

Art. 22

1. The Chairman of ERA may set up regional branches of ERA and determines their seats and territorial and material jurisdiction.

2. Directors of the ERA regional branches are appointed and removed by the Chairman of ERA.

3. Vice directors of the ERA regional branches are appointed and removed by the Chairman of ERA upon the motion of directors of those branches

Art. 23

1. The Chairman of ERA regulates activities of energy enterprises according to state energy policy guidelines and the Act, aiming at balancing of interests of energy enterprises and customers of fuels and energy.

2. The tasks and duties of the Chairman of ERA shall be in particular:

1. issuing, refusal of issuance, amending and withdrawal of licenses,

2. approval and control of tariffs of electric energy and gaseous fuels and heat, considering their consistence with principles set up in art. 45 & 46, and approval and control of lignite prices upon the principles mentioned in art.48,

3. agreement of draft plans mentioned in art. 16,

4. control of quality customer service standards in respect of electric energy and gaseous fuels,

5. resolving disputes within the scope determined in art. 8 s.1,

6. imposing fines upon principles provided in the Act,

7. cooperation with the relevant organs in counteracting monopolistic practices of energy enterprises,

8. publishing information with a view to improving energy efficiency and fuels utilization,

9. gathering and processing information relating to energy economy.

10. control of qualifications of persons, mentioned in art. 54.

Art. 24

1. By the end of the first quarter of each year the Chairman of ERA shall submit to the Chairman of the Council of Ministers a report on its activities.

2. The Chairman of ERA shall submit to the Minister of Economy, upon his demand, information in the field of its operation.

Art. 25

1. The Consultative Council hereinafter referred to as "the Council" is affiliated with the Chairman of ERA.

2. The Council is composed of 7 members appointed and removed by the Chairman of the Council of Ministers among the candidates proposed by the national professional energy organizations and national organization to whose statutory task belongs protection of the interests of consumers.

3. The Chairman of the Council is appointed and removed by the Chairman of the Council of Ministers.

4. The term of the Council lasts five years.

Art. 26

1. Organization and mode of operation of the Council shall be determined in its bylaws adopted by the Council.

2. The Chairman of ERA facilitates the works of the Council.

3. The Chairman of ERA determines amounts and rules for remuneration and reimbursement of travel costs occurred by the Council members participating in its works.

4. The Chairman of the Council of Ministers, by means of the ordinance, shall determine the detailed procedure for appointment and removal of the Council members.

Art. 27

1. The Council is empowered to express its opinion in all matters which belong to the tasks of the Chairman of ERA.

2. In particular the task of the Council covers taking positions in the matters submitted by the Chairman of ERA.

Art. 28

In the matters covered by the license the Chairman of ERA may request from energy enterprises information concerning their activities with due regard to the provisions of law on state and commercial secrets.

Art. 29

1. The provisions of remuneration of employees of the state budget financed staff do not apply to the to ERA staff.

2. The Chairman of the Council of Ministers shall determine in the way of an ordinance the rules for remuneration of the ERA employees, considering wages in the energy and fuels sector.

Art. 30

1. The provisions of the Administrative Procedure Code on procedure shall be applied to the proceedings before ERA, with the reservation of s.2 - 4.

2. Decision of the of the Chairman of ERA maybe appealed to the Warsaw Voivodship Court - the Antimonopoly Court within two weeks from the date of the delivery of the decision.

3. The proceedings in the case of appeal of the decision of the Chairman of ERA shall be governed by the provisions of the Civil Procedure Code on the commercial cases.

4. The provisions of s.2 and 3 shall be respectively applied to the rulings of the Chairman of ERA which can be complained, but the complaint shall be submitted within 7 days deadline.

Art. 31

1. ERA shall publish a Bulletin of Energy Regulatory Authority, hereinafter referred to \"the ERA Bulletin\".

2. ERA shall publish in the ERA Bulletin reports mentioned in art. 24.

3. ERA shall publish in the Bulletin, information on:

1. entities applying for a license,

2. decisions in matters of licenses and tariffs together with a justification,

3. decisions on disputes taken by the Chairman of ERA.

4. In a case of heat, information mentioned in sec. 3 are published in the territorially appropriate Voivodship Official Journal.

5. The Chairman of ERA may order in the way of a ruling to publish regional or sector editions of the ERA Bulletin, and determine their scope and terms of publication of announcements.

Chapter 5: Licenses and Tariffs

Art. 32

1. Conducting of the economy activities in the following areas requires obtaining a license:

1. production of energy and fuels except for: production of solid fuels, generation of electric energy in sources of capacity of less than 1 MW, production of gaseous fuels from the liquid gas, generation of heat in sources of the capacity smaller then 1 MW,

2. storage of gaseous and liquid fuels except for : local storage of liquid gas in the grid of capacity less then 1 MJ/s and storage of liquid fuels in the retail trade,

3. transmission and distribution of fuels and energy except for: transmission and distribution of gaseous fuels in the grids of capacity less then 1 MJ/s and distribution of heat from the group terminals by recipient's installations,

4. trade in energy and fuels except for: trade of solid fuels, trade of electric energy by means of the installations of voltage lower then l kV, being a property of the customer, trade of gaseous fuels, if the annual value of trade does not exceed equivalent of 25000 ECU, retail trade of liquid fuels.

2. The Minister of Economy may determine, in the way of an ordinance, particular types of economic activities of energy enterprises mentioned in s.1, which do not require licensing.

Art. 33

1. The Chairman of ERA shall grant licenses if the applicant:

1. has its registered office or place of residence in the Republic of Poland;

2. is in possession of the relevant funds or is able to ensure a possibility of acquisition of funds, in the amount which guarantees a proper performance of the activity,

3. is in possession of technical capability guaranteeing a proper performance of the activity,

4. proves that employed personnel are in possession of the relevant qualifications, mentioned in art. 54,

5. has obtained a decision on Terms of Development of the Area.

2. A license issued pursuant to sec. I does not exempt from the requirement to obtain licenses or permits according to any other regulation of law.

3. A license may not be awarded to the person who:

1. who is subject to bankruptcy or liquidation procedure,

2. was withheld a license for the activity covered by the Act over the last 10 years,

3. was subject to the enforceable conviction for the offense which consequences are related to the economic activity covered by the Act.

4. In deciding on licensing are considered: a social interest and the state energy policy guidelines.

Art. 34

1. On having been granted licenses energy enterprises shall pay annual fees to the state budget, burdening their operational costs.

2. The level of the annual fees shall be calculated in the such manner, that their total value does not exceed costs of the regulation.

3. The Council of Ministers shall set by way of an ordinance the procedure of setting by the Chairman of ERA fees mentioned in s.1.

Art. 35

1. An application for granting a license should contain, in particular:

1. name of the entity, its seat or place of residence and first and last names of attorneys authorized to perform legal acts on behalf of the economic entity, if appointed,

2. specification of the objective of business for activity to be licensed, and plan mentioned in art. 16,

3. information concerning the operations of the entity to date including financial reports for last 3 years if the entity conducted an economic activity,

4. specification of time for which the license is to be awarded including the date of commencement of operations,

5. specification of funds at the disposal of the applying entity in order to ensure an appropriate conduct of operations covered by the application,

6. statistical identification number in the domestic register of the entities conducting an economic activity.

2. The Chairman of ERA may request additional information and documents to make it probable that the applicant shall meet requirements stemming from the regulations.

3. The Chairman of ERA shall refuse to issue a license, if an applicant does riot meet conditions required by provisions of law.

Art. 36

Licenses shall be issued for a defined period of time, not shorter than 10 years and not longer than 50 years.

Art. 37

1. A license should determine:

1. name of the enterprise as well as its registered office or place of residence;

2. an objective and scope of activities covered by the license;

3. date of commencing operations covered by the license and conditions of performance of activity;

4. period for which the license is valid;

5. particular terms of performance of activity covered by the license, having in purpose the proper service of customers;

6. the environmental protection safeguards during the licensed operations and after their termination;

7. statistical identification number in the domestic register of the entities conducting an economic activity.

2. License should also determine conditions of termination of energy enterprises' operation after the expiry of the licenses or after their withdrawal.

3. The Chairman of ERA shall send a copy of issued licenses to an appropriate voivodship statistic office.

Art. 38

Granting a license may be related to setting up a collateral in order to satisfy the claims of third parties arising due to improper performance of the activity covered by the license, including harm to environment.

Art. 39

An energy enterprise may apply for the extension of his license not later than 18 months before its expiration.

Art. 40

1. The Chairman of ERA may order the former licensee, despite the expiration of his license, to continue rendering of services for a period not longer than 24 months, if social interest requires so.

2. If the activity conducted upon terms determined in s.1 brings an energy enterprise a loss, coverage of losses is due from the State Treasury in the amount limited just to justified costs of the activity determined in the license, performed with maintenance of due diligence.

3. Costs, mentioned in s.2, are subject to approval of the Chairman of ERA.

Art. 41

1. The Chairman of ERA may amend the terms of the issued license ex officio or upon the motion of the energy enterprise.

2. The Chairman of ERA may amend the terms of the license ex officio or withdraw the license:

1. due to requirements of defense and security of the state, determined in the separate provisions,

2. in case of a split of licensees or their merger with other entities,

3. The regulatory organ withdraws a license:

1. in the event of termination of the economic activity covered by the license,

2. in the event of an enforceable court ruling banning the conducting of the economic activity covered by the license,

3. if the activity conducted by him grossly violates the terms of the license, and the licensed enterprise has failed to remove the shortcomings revealed by the regulatory organ within the prescribed deadline,

4. The Chairman of ERA notifies about withdrawal of the license an appropriate voivodship statistic office.

Art. 42

The license issued on the basis of the Act shall expire upon the lapse of time for which it has been issued or on the day of striking the licensed enterprise out of the appropriate register or books.

Art. 43

1. Whoever intends to conduct an economic activity consisting in production, transformation, storage, transmission, distribution and trade in fuels or energy subject to licensing may apply for the issue of a license promise.

2. A promise shall be issued by the Chairman of ERA in the way of an administrative decision.

3. in the promise the period of its validity is determined, however it must not be shorter than 6 months.

4. During the period of a promise's validity the license to conduct activity laid down in the promise must not be refused, unless the legal or factual status described in the application for the promise has changed.

5. To the application for issuance of the promise provisions of art. 37 of the Act apply appropriately.

Art. 44

Energy enterprises are obliged, within enterprise accounts plan, to keep accounts in such a manner as to enable a calculation of their fixed costs, variable costs and revenues, separately for production, transmission and distribution, for each kind of fuels and energy, and also with respect to particular tariffs.

Art. 45

1. Tariffs for gaseous fuels, electric energy and heat and gaseous fuels, mentioned in art. 47 s.1 should ensure:

1. coverage of justified costs of energy enterprises' operation in the field of production, transformation., storage, transmission, distribution or trade of fuels and energy and costs of development and environmental protection,

2. protection of interest of customers from unjustified level of prices.

2. Tariffs for gaseous fuels, electric energy and heat, mentioned in s.1, may include costs of co-financing by energy enterprises of projects and services which purpose is to reduce energy and fuel consumption by customers and which provide an economically justified alternative for avoidance of development of new sources of energy or grid.

3. Tariffs for gaseous fuels, electric energy and heat, mentioned in s.1, may include cost of co-financing by energy enterprises undertakings related to development of unconventional energy sector.

4. Energy enterprises, mentioned in s.1, shall differ tariffs for gaseous fuels, electric energy and heat for different groups of customers, exclusively on justified costs relating to providing the services, unless otherwise provided in the provisions of law.

Art. 46

The Minister of Economy with respect to gaseous fuels and electric energy and heat, in liaison with the Minister of Finance after having sought the opinion of the Chairman of ERA, shall determine, in the way of an ordinance, respectively detailed terms of formulation of tariffs and set up rules of settlement in trade of gaseous fuels, electric energy and heat, including rules for settlement with the individual customers in the premises.

Art. 47

1. Energy enterprises possessing licenses, shall formulate tariffs for gaseous fuels and electric energy and heat, which are subject to approval of the Chairman of ERA.

2. The Chairman of ERA shall approve the tariff or refuse to approve it within the deadline of 30 days, if found inconsistent with principles and provisions mentioned in art. 45 & 46.

3. The Chairman of ERA publishes approved tariffs for gaseous fuels, electric energy and heat on the expense of the energy enterprise within 14 days deadline.

4. The tariff must not be in force earlier than after 14 days from its publication.

Art. 48

1. The prices of lignite charged by mines to the power plants are subject to approval of the Chairman of ERA.

2. The provisions of art. 45 and 47 s.2-4 apply respectively to the approval of prices, mentioned in s.1.

3. The Minister of Economy shall determine, in the way of an ordinance, detailed rules for formulation of the lignite price.

Art. 49

The Chairman of ERA may release an energy enterprise from the obligation of submission of tariffs for approval if it finds this enterprise to operate on the competitive market, or may withdraw granted release when the conditions which justified release disappear.

Art. 50

In the matters not regulated by provisions of this chapter the provisions of the Economic Activity Act of 23rd December 1988 (Journal of Laws No 41, item 324 of 1990 No. 26, item 149, No. 34, item 198 and No. 86, item 504, of 1991 No. 31, item 128, No. 41, item 179, No. 73, item 321, No. 106, item 457 and No. 107, item 460, of 1993, No 28, item 127, No 47, item 212, No. 134, item 646, of 1994 No 27 item 96, of 1995 No. 60 item 3 10, No. 85 item 426, No. 90 item 446, No. 141 item 700 and No. 147 item 713 and of 1996 No. 41 item 177, No. 45 item 199 and of 1997 No. 9 item 44 and no 23 item 117) apply appropriately.

Chapter 6: Equipment, Installations, Grids and their Operation

Art. 51

Designing, production, import, construction and operation of installations and equipment should ensure a rational and efficient use of fuels and energy with a maintenance of:

1. reliable cooperation with the grid,

2. safety of operation and neighborhood and compliance with environmental protection and cultural landscape requirements,

3. consistency with requirements of separate regulations, particularly provisions on anti-shock prevention, fire prevention, technical supervision, provisions of the Construction Law, the Act on Cultural Heritage Protection and Museums, Polish Standards introduced for obligatory application and other provisions of law stemming from the technology of production of energy and kind of the applied fuel.

Art. 52

1. Manufacturers and importers of equipment shall specify in their technical documentation the quantity of fuels and energy consumption in relation to the obtained result provided by the equipment in the typical conditions of use, hereinafter referred to as "the energy efficiency".

2. Producers and importers of equipment offered on the market shall display their energy efficiency by means of a label and technical characteristic.

3. The document confirming the conformity with the requirements, is a certificate of conformity with those requirements obtained according to the provisions of the Act of 3 April 1993 on Researches and Certification (J.L. No. 55. item 250. of 1994 No. 27 item 96 and of 1996 No. 106 item 496).

4. The Minister of Economy shall determine in the way of an ordinance:

1. requirements in the field of the energy efficiency which should be met by specific items of equipment mentioned in s.1,

2. requirements concerning application of labels and technical characteristics mentioned in s.2.

Art. 53

It is prohibited to introduce into the domestic market equipment which does not meet the requirements mentioned in art. 52.

Art. 54

1. Persons handling operation of particular installations and equipment, determined in the provisions mentioned in s.6, are under the obligation to have additional qualifications confirmed with certificates issued by qualification commissions.

2. It is prohibited to employ in the sole operation of grid and equipment and installations determined in the provisions of law, mentioned in s.6, persons without qualifications mentioned in s.1.

3. Qualification commissions are established by:

1. The Chairman of ERA, with the reservation to p.2 and 3,

2. appropriate ministers, mentioned in art. 2, in the scope of operation of electric, gaseous and heat equipment and installations in the organizational units subject to these ministers,

3. Minister of Transportation and Maritime Economy in the scope of operation of installations and equipment applied in the rail transportation organizational units.

4. Confirmation of qualifications mentioned in s.1 is charged with a fee collected from the person making applications for confirmation of qualifications.

5. The fees mentioned in s.3 constitute an income of the organizational units within which qualification commissions are established.

6. The Minister of Economy in liaison with the Minister of Transportation and Maritime Economy and Minister of National Defense, in the way of an ordinance shall determine: qualification requirements, mentioned in s.1, the procedure for their confirmation and kinds of installations and equipment operation of which requires additional qualifications, organizational units within which qualification commissions are established and the amount of fee charged for confirmation of qualifications.

Art. 55

The Minister of Economy in liaison with appropriate ministers may determine, in the way of an ordinance, obligatory requirements concerning the quality of fuels arid way of control of observance of those requirements.

Chapter 7 : Fines

Art. 56

1. A fine is imposed on anyone who:

1) does not obey the duties stemming from the cooperation with the units authorized to dispatch electric energy or gaseous fuels, introduced on the virtue of art. 9 s.1 and 2,

2) does not obey the duty to keep reserves of fuel, introduced on the virtue of art. 10,

3) does not apply the limitations in supply of fuels and energy, introduced on the basis of art. 11,

4) refuses to enter the contract mentioned in art. 7 s.1, due to unjustified reasons,

5) charges the prices and tariffs not obeying the duty to submit the tariff to the Chairman of ERA for approval and duty of their publication, mentioned in art. 47,

6) charges prices and tariffs higher than approved,

7) refuses to reveal information required on the virtue of the art. 28,

8) runs accounts contrary to principles set up in art. 44,

9) employs personnel without qualifications required by the Act,

10) does not maintain the objects, equipment and installations in the proper technical shape,

11) introduces into domestic market equipment not conforming requirements set up in art. 52,

12) does not obey the obligations stemming from the license,

13. implements actions in respect of heat supply, contrary to heat supply plan, mentioned in art. 20 s.4.

2. The fine, mentioned in s.1, shall be imposed by the Chairman of ERA.

3. The fine mentioned in s.1 imposed on an energy enterprise must not exceed the value of 15% of revenues of the fined enterprise obtained in the previous tax year and if the fine is related to the activities, the amount of the fine must not exceed the value of 15% of revenues of the fined enterprise obtained from the licensed activity in the previous tax year.

4. Fine is paid from an income after taxation or from another form of surplus of income over expenses less taxes and shall be contributed to the relevant treasury office account.

5. Irrespective of the fine determined in s.3 and 4 the Chairman of ERA, may impose a fine on a manager of an economic entity, however such fine must not be in excess of 300% of his monthly remuneration.

6. Imposing fine, the Chairman of ERA takes into consideration a degree of the social harm of the action, prior behavior of the entity and its financial standing.

7. Fines mentioned in s.1, are subject to execution according to provisions on execution proceedings in administration.

Art. 57

1. In a case of an illegal drawing of energy or fuels from the grid an energy enterprise may charge for the illegally derived energy or fuels using lumped rates provided for under the tariffs or recover damages upon general principles.

2. Lump rated fees mentioned in s.1 are subject to execution according to provisions on execution proceedings in administration.

Chapter 8 : Changes in Binding Regulations, Interim and Concluding Provisions

Art. 58

In the act of 17 November 1964 Civil Procedure Code (Journal of Laws No. 43 item 43, of 1965 No. 15 item 113, of 1974 no. 27 item 157, No. 39 item 321, of 1975 No. 45 item 234, of 1982 No. 11 item 82, No. 30 item 210, of 1983 No. 5 item 33, of 1984 No. 45 item 241 and 242, of 1985 No. 20 item 86, of 1987 No. 21 item 123, of 1988 No. 41 item 324, of 1989 No. 4 item 21, No. 33 item 175, of 1990 No. 14 item 88, No. 34 item 198, No. 53 item 306, No. 55 item 318, No. 79 item 464, of 1991 No. 7 item 24, No. 22 item 92, No. 115 item 496, of 1993 No. 12 item 53, of 1995 No. 105 item 509, of 1995 No. 83 item 417 of 1996 No. 24 item 110, No. 43 item 189, No 73 item 350 and No 149 item 703) shall be amended as follows:

1. in art. 479.1 in §2 in s.3 after the word "monopolistic" the words "and the Energy Law" are added,

2. the title of the chapter 2 of the schedule IV of the Title VII of the first volume of the first part shall read as follows: "Chapter 2. The proceedings in the cases within the scope of the counteracting monopolistic practices and in the cases of regulation of the energy sector."

3. art. 479.28 §1 shall read as follows: "§1. The decision of the Chairman of the Office for Protection of Competition and Consumers and its branches as well as decisions of the Chairman of the Energy Regulatory Authority and its branches, hereinafter referred to in the provisions of this chapter as "the Chairman" may be appealed to the Voivodship Court in Warsaw - the Antimonopoly Court within two weeks counting from the day of the handing over of the decisions."

4. in art. 469.29 §1 & §2, in art. 479.30 and in art. 479.33 and art. 479.34 the words "the Antimonopoly Office" shall be replaced by the words "the Chairman",

5. art. 479.31 §1 shall read as follows: "§1 In the cases in the scope of the counteracting monopolistic practices and in the cases in the scope of regulation of energy sector the parties are also the Chairman and the interested party.",

6. art. 479.32 shall read as follows: "Art. 479.32. As the plenipotentiary of the Chairman may be appointed an employee of his office".

Art. 59

In the Law on Prices of 26th February 1982 (Journal of Laws of 1988 No. 27, item 195, amended: of 1990 No 34, item 198, No 43, item 253, of 1991 No 100, item 442, of 1993 No 11, item 50, of 1994 No. 111, item 536, of 1996 No. 106 item 496), in art. 25 s.1 in s.3 the full stop is replaced by a comma and a new subsection 4 is hereby added, which reads as follows: "4) prices and tariffs formulated on the basis of the Act "Energy Law".

Art. 60

In the Law of 29th April 1985 on Land Management and Real Estate Expropriation (Journal of Laws of 1991 No. 30, item 127, am.: No. 103, item 446 and No. 107, item 464, of 1992 No. 91, item 455, of 1993 No 47 item 212 and No. 131 item 629, of 1994 No. 123 item 608, of 1995 No. 99 item 486, of 1996 No. 5 item 33, No. 90 item 405 and No. 106 item 496) the following amendments are hereby made:

1. in art. 46, s.2, a new subsection 4a is added, which reads as follows: "4a) energy equipment and installations used for production of fuels and energy and to supply fuels and energy by means of the grid."

2. in art. 70 is added s.4 which reads as follows: "If the negotiations, mentioned in s.1 last longer than three months, the provisions of art. 67 apply respectively."

Art. 61

In the Economic Activity Act of 23rd December 1988 (Journal of Laws No. 41, item 324, of 1990 No. 26, item 149, No. 34, item 198 and No. 86, item 504, of 1991 No. 31, item 128, No. 41, item 179, No. 73, item 321, No. 106, item 457 and No. 107, item 460, of 1993, No 28, item 127, No 47, item 212, No. 134, item 646, of 1994 No. 27 item 96, of 1995 No. 60 item 310, No. 85 item 426, No.90 item 446, No. 141 item 700, No. 147 item 713 and of 1996 No. 41 item 177 No. 45 item 199 and of 1997 No. item ), in art. 11 the following amendments are made:

1. in s.1 in point 16 the full stop is replaced with a comma and point 17 is added, which reads as follows: "17) production, transformation, storage, transmission, distribution and trade of fuels and energy"

2. it is added s.9 which reads as follows: "9. Principles of granting licenses and particular kinds of activities not requiring licenses, mentioned in s.1 point 17 are determined by the provisions of the Energy Law".

Art. 62

In the law of 5 January 1991 the Law on State Budget (Journal of Laws of 1993 No. 72 item 344, of 1994 No. 76 item 344, No. 121 item 591, No. 133 item 685, of 1995 No. 78 item 390, No. 124 item 601 and No. 132 item 640 and of 1996 No. 89 item. 402, No. 106 item 496, No. 132 item 621 and No. 139 item 647) in art. 31 sec. 3 p.2 after the words "the National Council of Radio and Television" a comma is added and the words "the Energy Regulatory Authority".

Art. 63

The Council of Ministers shall determine in the way of an ordinance the way of financing of the Energy Regulatory Authority during its organization process.

Art. 64

The first term of the Consultative Council lasts for 4 years.

Art. 65

The Minister of Economy shall determine in the way of an ordinance the time schedule, covering the period no longer then eight years counting from the date of entry of the Act into force, for obtaining by particular groups of customers the right to benefit from transmission services, mentioned in art. 4 s.2, according to the level of their annual purchases of gaseous fuels, electric energy, or heat.

Art. 66

1. Legal or natural persons, and other organizational units without legal personality, who till the day of this Act coming into force, had from their own funds constructed and are owners or users of installations or equipment which may constitute a part of the grid, may within 2 years of the Act's coming into. force transfer the said installations and equipment upon the charge and agreed terms to the energy enterprise which obtained a license for distribution of fuels and energy.

2. Transferred installations and equipment, mentioned in s.1, should conform technical conditions determined in the provisions of law. Costs of the upgrading those installations and equipment to the shape conforming required conditions shall be born by the transferring person or entity.

Art. 67

1. Within 18 months as from the entry into force of the present Act, the Chairman of ERA will grant ex officio licenses to all energy enterprises operating on the day of entry into force of the Act, provided they meet conditions as determined in the Act.

2. Enterprises mentioned in s.1 conduct their activity on principles as up to now, till they are granted a license.

Art. 68

1. As from the day of entry into force of the Act abolished shall be District Inspectorates of Energy Management set up by the Energy Management Act of 6th April 1984 (Journal of Laws No. 21, item 96, am: of 1987, No 33, item 180, of 1988, No. 19, item 132, of 1989, No 35, item 192, of 1990, No. 14, item 89, No 34, item 198).

2. Tasks and responsibilities of the liquidator of the District Inspectorates of Energy Management is entrusted to the Minister of Economy.

3. The liquidator shall prepare a closing balance.

Art. 69

1. The Minister of Finance and appropriate ministers retain the right to fix tariffs for gaseous fuels, electric energy, and heat, according to rules and procedure mentioned in the act referred to in the art. 59, within the period of 24 months counting from the date of entry of this Act into force.

2. The Council of Ministers may determine in the way of an ordinance dates, not exceeding the period determined in s.1, beyond which the Minister of Finance will cease setting prices and tariffs mentioned in s.1.

Art. 70

1. Acts of secondary legislation issued or maintained in force under the Act of 6th of April 1984 on Energy Management (Journal of Laws No. 21, item 96, amended in 1987, No. 33, item 180, of 1988, No. 19, item 132, of 1989, No. 35, item 192, of 1990, No. 14, item 89, No. 34, item 19 shall remain in force, until they are replaced by acts issued on the virtue of the Act, unless they are inconsistent with its provisions but for no longer then a period of six months from the day of entry of this act into force.

2. The certificates confirming qualifications issued on the basis of the existing laws are valid unless they expire but no longer then until 31 December 1999.

Art. 71

Hereby expire:

1. Act of 28th June 1950 on the Common Electrification of Villages and Settlements (Journal of Laws of 1954 No. 32, item 135, of 1975 No. 17, item 94)

2. Energy Management Act of 6th of April 1984 (Journal of Laws No. 21, item 96, amended in 1987, No. 33, item 180, of 1988, No. 19, item 132, of 1989, No. 35, item 192, of 1990, No. 14, item 89, No. 34, item 198).

Art. 72

The Act enters into force within 6 months as from the day of promulgation except for art. 21 which comes into force on the day of the promulgation of the Act