Energy Regulatory Office Capacity levy for 2025 published by President of URE - News -

The capacity levy is intended to provide for the cost of energy security. At the end of September this year, the President of URE set its level for 2025.^[1] In the second half of this year, by decision of the legislature, the capacity levy has not been applied. In contrast, starting from 1 January 2025, most household customers^[2] will pay the capacity levy at an average level of PLN 11.44 net excl. VAT.

The capacity levy has been one of the items on electricity bills since 2021, according to the Capacity Market Act^[3] adopted in 2017, which introduced a mechanism to remunerate power generators for their readiness to supply capacity to the grid. The main rationale behind the introduction of the levy was the need to ensure stability and security of electricity supply.

Capacity levy in 2025

In calculating the level of the capacity levy, the regulator took into account, among other things, the value of the capacity contracts concluded in the 2025 auction, the costs arising from multi-year contracts concluded in previous auctions^[4], and the significantly lower electricity consumption (by 9 per cent) by consumers during certain hours of the day^[5].

For consumers in groups G and C1 (with contracted capacity of up to 16 kW), the flat-rate capacity levy per point of consumption will raise depending on the level of consumption. For the largest group of consumers, the increase over the rate approved for 2024 will be PLN 0.80. The detailed schedule of charges depending on the level of energy consumption is shown in the table.

Table 1. Capacity levy rates in 2021-2025 for flat-rate consumers depending on consumption level [in PLN/month; excl. VAT].

For non-flat-rate consumers, the rate of the capacity levy will depend on the amount of electricity taken from the grid during selected hours of the day (on working days from 7am to 9.59pm). Next year, it will amount to PLN 0.1412/kWh, an increase of approximately PLN 0.015/kWh compared to the 2024 rate (from PLN 126.73/MWh). This rate applies to industrial and large business customers.

Flat-rate levy vs. levy calculated according to the individual consumption curve

The flat-rate levy, expressed in PLN per month and dependent on annual energy consumption, covers consumers in tariff group G, including households, as well as electricity consumers in tariff group C1 with contracted capacity of up to 16 kW.

The level of the charge for consumers other than those charged at the fixed rate depends on the amount of electricity they use during selected hours of the day and their individual consumption curve, i.e. the difference between their consumption during peak demand hours and their consumption during the remaining hours of the day. According to this dimension, the Act discerns four consumer groups:

• a group where the difference between the amount of electricity consumed on weekdays during selected hours of the day and outside of these hours is less than 5 %;
• a group where the difference is at least 5 percent but less than 10 percent;
• a group where the difference at least 10 percent but less than 15 percent; and
• the fourth group where the difference is at least 15 per cent.

Each group has an adjustment coefficient applied to the reference rate of the capacity levy, ranging from 0.17 for customers with the most stable consumption profile to 1 for customers with the highest variability of the electricity consumption level throughout the day.

The aim of such a solution is to promote stable and conscious electricity consumption, which should have a positive effect on the balancing of electricity demand, and security of supply.

The division into flat-rate consumers and other consumers, for whom the amount of the capacity levy will depend on electricity consumption during hours announced by the President of URE as peak demand hours, will remain in force until the end of 2027[6]. However, starting from 1 January 2028, the level of the capacity levy for all electricity consumers, including households, will depend on the consumption profile (the more stable the profile, the lower the levy).

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• The support scheme for capacity providers is expected to operate until 2047.
• The cost of the capacity market in 2024 was nearly PLN 6.1bn compared to PLN 5.3bn in 2023. The value of capacity obligations contracted in auctions for 2025 is just over PLN 6.4 billion.
• More information about the capacity market can be found on the websites of URE and Polskie Sieci Elektroenergetyczne.

^[1] Article 74(4)(1) and Article 89a(1) of the aforementioned Capacity Market Act.
^[2] With electricity consumption volume ranging between 1200 kWh to 2800 kWh.
^[3] Capacity Market Act of 8 December 2017 (Dz.U.2023.2131 consolidated text).
^[4] The total cost of the capacity market in a given delivery year, for the purpose of calculating the capacity levy rates, is calculated by the President of URE according to the formula set out in Article 74 of the Capacity Market Act.
^[5] Hours of the day when electricity demand in the system is at the peak level (Article 74(4) of the Capacity Market Act).[6] The peak demand hours of the day remain unchanged. This period covers 15 consecutive hours of each working day (excluding public holidays). The first of these hours starts at 7am and the fifteenth at 9pm.