President’s duties
The President of Energy Regulatory Office is a central body of state administration nominated on the basis of the Energy Law (The Energy Law Act of 10 April 1997; Journal of Law of 2022, item 1385, as amended), responsible for regulation in energy sector as well as promotion of competition. The President of URE regulates activities of energy enterprises aiming to balance interests of energy companies and customers.
The President of ERO is appointed by the Prime Minister for a 5-year term in office and may be reappointed only once. President of ERO is selected through an open and competitive recruitment process.
ERO is financed through the state budget which is approved by the Parliament.
The tasks and powers of the President of URE are tightly linked to the national energy policy, i.e. the economic environment for the operation of energy companies, market framework and requirements arising from the obligation to adapt Polish law to EU legislation. Activities pursued by the independent regulatory authority are aimed at the objectives set by the legislator and focused on creating conditions for sustainable development of the country, ensuring energy security, efficient and rational use of fuels and energy, developing competition, counteracting the negative effects of natural monopolies, taking into account the requirements of environmental protection, obligations resulting from international agreements and balancing the interests of energy companies as well as fuel and energy consumers.
Over the course of more than two decades of the Regulator’s activity, the Energy Law has been amended several times. As a consequence of successive legislative changes, the scope of tasks assigned to the President of URE has increased significantly.
Currently, under Article 23(2) of the Energy Law, the President of URE has the power to:
1. grant and revoke concessions;
2. approve and oversee the application of the tariffs for gaseous fuels, electricity and heat in terms of compliance with the principles set out in the Act and its implementing regulations, including the review and verification of eligible costs used by energy companies for the calculation of prices and tariff rates;
3. determine:
- corrective coefficients accounting for the expected efficiency improvement of an energy company and the change in the conditions under which such company carries out the relevant economic activity;
- term of application of the tariffs and corrective coefficients;
- level of reasonable return on equity for energy companies which present their tariffs for approval;
- maximum share of fixed charges in the total charges in respect of transmission or distribution services for individual customer groups in the tariffs for gaseous fuels and electricity, where the protection of customer interest so requires;
- reference factor applicable to sales revenue projections to be used in the calculation of prices and tariffs for heat for cogeneration units;
4. draw up guidelines and recommendations to ensure the consistency of development plans prepared by natural gas and electric power transmission and distribution companies;
5. monitor the fulfilment of the obligation to sell energy in accordance with the principles set out in Article 49a(1) by energy companies engaged in electricity generation;
6. monitor the performance by energy companies engaged in gas trading with regard to their obligation to sell high-methane natural gas in accordance with the principles set out in Article 49b(1);
7. consult draft development plans of energy companies;
8. designate transmission system operators, distribution system operators, storage system operators, natural gas liquefaction system operators and combined system operators, and publish their address details, information on area of operation and the period for which they have been designated system operators in the URE Bulletin as well as on its website in the Public Information Bulletin;
9. grant certificates of independence;
10. monitor the performance of obligations under the Act and operatorship agreement by the transmission network owner and the gas transmission system operator, including the monitoring the relationship between the transmission network owner and the gas transmission system operator and the mutual information flow;
11. report to the European Commission on the designation of transmission system operators;
12. issue a decision establishing the content of the operatorship agreement in respect of the gas transmission system operator in case of failure to receive, within 90 days before the expiry date of the existing agreement, information on the execution of a subsequent operatorship agreement in respect of the gas transmission system;
13. grant and revoke exemptions from the obligation to provide services in respect of gas and power transmission or distribution, storage of gaseous fuels, natural gas transportation or natural gas liquefaction or LNG regasification services;
14. approve network codes for transmission and distribution systems, storage facilities and LNG facilities, as well as amendments thereto;
15. organise and conduct tenders for:
a. selection of suppliers of last resort,
b. development of new electricity generation capacity and implementation of projects aimed at reduction of electricity demand;
16. monitor customer service standards and verity, at customer’s request, adherence to quality specifications of gaseous fuels and electricity;
17. monitor the performance by the electricity transmission system operator or the electricity interconnection system operator and other electricity market participants of the obligations arising from the provisions of Regulation 714/2009, and perform other duties of the regulatory authority arising from that Regulation;
18. monitor the performance by the gas transmission system operator or the combined gas system operator and other gas market participants of their respective obligations under Regulation 715/2009, carry out other duties of the regulatory authority under that Regulation and approve the relevant points within the transmission system which are subject to the obligation referred to in Article 18 of that Regulation;
19. approve capacity allocation and congestion management methodologies defined in accordance with the provisions of Regulation 714/2009 or Regulation 715/2009;
20. resolve cases upon requests of electricity system operators to whose networks equipment, installations or networks referred to in the Network Codes Regulations (Regulation 2016/631, Regulation 2016/1388, Regulation 2016/1447) are connected, with regard to the assessment of whether such equipment, installations or networks fulfil the requirements to be regarded either existing or newly built;
21. approve generally applicable requirements, as defined by the electricity transmission system operator;
22. resolve cases within the scope of Article 7(8) of Regulation 2016/631, Article 6(8) of Regulation 2016/1388 and Article 5(8) of Regulation 2016/1447;
23. resolve disputes concerning refusal to execute a network connection agreement, sales agreement, transmission or distribution service agreement for fuels or energy, natural gas transportation service agreement, gaseous fuel storage service agreement, agreement on access to a part of gaseous fuel storage facility, natural gas liquefaction service agreement or a comprehensive agreement, in case of unwarranted suspension of the supply of gaseous fuel or electric power, refusal to connect a renewable energy source installation to the grid on a priority basis, or a refusal to connect a micro-installation, failure to connect a micro-installation despite the lapse of a statutory time limit, unwarranted curtailment of operation or disconnection of a micro-installation from the grid, or refusal to amend a network connection agreement for a renewable energy source, as regards the date of the first electricity delivery to the grid;
24. assess fines as stipulated by the Act;
25. taking action to shape, protect and stimulate competition in the electricity and gaseous fuels market, including:
a. removing existing market barriers to the exercise of end consumers’ right to the change of supplier,
b. ensuring equal treatment of system users by distribution and transmission system operators;
26. cooperate with competent authorities in countering anticompetitive practices of energy companies;
27. cooperate with the Financial Supervision Authority;
28. cooperate with the regulatory authorities of the Member States of the European Union or the Member States of the European Free Trade Agreement (EFTA) – Parties to the Agreement on the European Economic Area and with the Agency for the Cooperation of Energy Regulators (ACER), in particular as regards the development and application of network codes and the approval of congestion management methodologies developed in accordance with the provisions of Regulation 714/2009 and Regulation 715/2009, as well as the integration of national energy sectors at regional level and with a view to the consistent application of EU [policies] to interconnection pipelines;
29. enter into agreements with regulatory authorities of European Union member states or member states of the European Free Trade Agreement (EFTA)- the parties to the agreement on the European Economic Zone with a view to closer regulatory cooperation;
30. make submissions to the Agency for the Cooperation of Energy Regulators (ACER) concerning the conformity of decisions issued by other regulatory authorities with the guidelines referred to in Regulation 714/2009 or Regulation 715/2009, and notify the European Commission of their non-conformity;
31. establish audit methodology and take measures to stimulate efficiency improvement in energy companies;
32. determine and publish indices and reference prices relevant to the tariff design process;
33. publish information conducive to the improvement fuel and energy efficiency;
34. collect and process information on energy companies, including the calculation and publication of the following data by 31 March each year:
a. average selling price of electricity on the competitive market and the method of its calculation,
b. average selling price of heat generated in units other than cogeneration units controlled by concession holders including:
- coal- and lignite-fired units,
- gas-fired units,
- fuel oil-fired units,
- RES installations,
- average price of electricity to a household customer including the electricity distribution service charge, calculated on the basis of prices set out in comprehensive agreements,
- in previous calendar year;
35. collect and process information concerning energy companies, including the calculation and publication, within 90 days of the end of each quarter, of the average prices for the sale of electricity on the competitive market in the preceding quarter, and the related calculation methodology;
36. collect data on the volume of electricity imported in a given quarter from non-EU countries and send relevant reports to the European Commission;
37. carry out the tasks, duties and exercise the powers of a regulatory authority as set forth in a binding manner in the REMIT;
38. monitor the operation of the gas and electricity system in terms of:
a. rules for the management and allocation of interconnection capacity in cooperation with the competent authorities of the Member States of the European Union or the Member States of the European Free Trade Association (EFTA) – Parties to the Agreement on the European Economic Area,
b. mechanisms for gas or electricity system balancing and congestion management in the national gas and electricity system,
c. conditions for the connection of entities to the network as well as the execution of connections and network repairs,
d. performance of the disclosure obligation of transmission and distribution system operators regarding information relating to interconnections, network use and allocation of capacity to the parties to gas or electricity transmission contracts, with due regard to the need to ensure confidentiality of commercially sensitive information,
e. terms and conditions of gas storage services, natural gas liquefaction services and other services provided by energy companies,
f. security of gas and electricity supply,
g. fulfilment of their respective tasks by transmission and distribution system operators,
h. fulfilment of the accounting obligations set out in Article 44 by energy companies;
39. exercise control over energy companies or importers in accordance with the principles set out in the Act;
40. keep the following in digital form:
a. register of importers,
b. list of entities that have applied for the granting, amendment or revocation of a concession, or for the granting or amendment of a concession promise,
c. register of energy companies holding concessions,
d. list of entities holding a concession promise,
d. list of the entities which had been subject to a concession procedure which was subsequently discontinued or concluded with a refusal to grant the concession, or with the application having being left unconsidered,
f. list of energy companies whose concession has been withdrawn,
g. list of entities whose concession expired, indicating the basis for and date of concession expiry;
41. engage in communication with a view to protecting the legitimate interests of household consumers of gaseous fuels, electricity or heat, specifically by publishing information on the URE’s website on recurring or significant problems leading to disputes between energy consumers and household consumers of gaseous fuels, electricity or heat, as well as on energy companies against whom legitimate complaints concerning the above issues have been lodged by these consumers;
42. issue decisions recognising a distribution system as closed one, and monitor the prices and tariffs applied in such a system;
43. grant of the certificate of independence referred to in Article 9h upon application by an energy company holding a concession for the storage of gaseous fuels in storage facilities;
42. carry out other tasks as defined in the Act or separate legislation.
The complete list of tasks carried out by President of URE is set out in the Energy Law and the provisions of separate acts and EU regulations:
1. Act of 20 February 2015 on Renewable Energy Sources,
2. Act of 20 May 2016 on energy efficiency,
3. Act of 25 August 2006 on biocomponents and liquid biofuels,
4. Act of 16 February 2007 stocks of crude oil, petroleum products and natural gas, the principles of proceeding in circumstances of a threat to the fuel security of the State and disruption on the petroleum market.
5. Act of 29 June 2007 on the rules governing the covering of costs incurred by generators in connection with the early termination of capacity and power purchase agreements,
6. Act of 29 June 1995 on public statistics,
7. Act of 29 January 2004 – Public Procurement Law,
8. Act of 25 August 2006 on the quality monitoring and control system for fuels,
9. Act of 23 September 2016 on out-of-court resolution of consumer disputes,
10. Act of 8 December 2017 on the capacity market,
11. Act of 11 January 2018 on electromobility and alternative fuels,
12. Act of 14 December 2018 on the promotion of electricity from high-efficiency cogeneration,
13. Act of 28 December 2018 amending the Excise Duty Act and certain other acts,
14. Act of 19 July 2019 on the compensation scheme for energy-intensive sectors and sub-sectors,
15. Act of 17 December 2020 on the promotion of electricity generation in offshore wind farms,.
16. Regulation (EU) No 347/2013 of the European Parliament and of the Council of 17 April 2013 on guidelines for trans-European energy infrastructure and repealing Decision No 1364/2006/EC and amending Regulations (EC) No 713/2009, (EC) No No 714/2009 and (EC) No 715/2009 ,
17. Commission Regulation (EU) No 543/2013 of 14 June 2013 on submission and publication of data on electricity markets and amending Annex I to Regulation (EC) No 714/2009 of the European Parliament and of the Council,
18. Regulation (EC) No 715/2009 of the European Parliament and of the Council of 13 July 2009 on conditions for access to the natural gas transmission networks and repealing Regulation (EC) No 1775/2005,
19. Commission Regulation (EU) No 2015/1222 of 24 July 2015 laying down guidelines on capacity allocation and congestion management,
20. Commission Regulation (EU) No 2016/631 of 14 April 2016 establishing a network code on requirements for grid connection of generators,
21. Commission Regulation (EU) No 2016/1388 of 17 August 2016 establishing a network code on demand connection,
22. Commission Regulation (EU) No 2016/1447 of 26 August 2016 establishing a network code on requirements for grid connection of high voltage direct current systems and direct current-connected power park modules,
23. Commission Regulation (EU) No 2016/1719 of 26 September 2016 establishing a guideline on forward capacity allocation,
24. Commission Regulation (EU) No 2017/1485 of 2 August 2017 establishing a guideline on electricity transmission system operation,
25. Regulation (EU) No 2017/1938 of the European Parliament and of the Council of 25 October 2017 concerning measures to safeguard the security of gas supply and repealing Regulation (EU) No 994/2010,
26. Commission Regulation (EU) No 2017/2195 of 23 November 2017 establishing a guideline on electricity balancing,
27. Commission Regulation (EU) No 2017/2196 of 24 November 2017 establishing a network code on electricity emergency and restoration,
28. Regulation (EU) No 2019/941 of the European Parliament and of the Council of 5 June 2019 on risk-preparedness in the electricity sector and repealing Directive 2005/89/EC.
29. Regulation (EU) No 2019/943 of the European Parliament and of the Council of 5 June 2019 on the internal market for electricity,
30. BAL Regulation – Commission Regulation (EU) No 312/2014 of 26 March 2014 establishing a network code on gas balancing of transmission networks,
31. CAM Regulation – Commission Regulation (EU) No 2017/459 of 16 March 2017 establishing a network code on capacity allocation mechanisms in gas transmission systems and repealing Regulation (EU) No 984/2013.
32. IO Regulation – Commission Regulation (EU) No 2015/703 of 30 April 2015 establishing a network code on interoperability and data exchange rules,
33. NC TAR Regulation – Commission Regulation (EU) No 2017/460 of 16 March 2017 establishing a network code on harmonized transmission tariff structures for gas,
34. REMIT – Regulation (EU) No 1227/2011 of the European Parliament and of the Council of 25 October 2011 on wholesale energy market integrity and transparency,
35. Regulation (EU) 2019/942 of the European Parliament and of the Council of 5 June 2019 establishing a European Union Agency for the Cooperation of Energy Regulators.