Polish gas market liberalisation as early as 2017

Some of the provisions amending the energy law, as well as some other related acts appointed at the end of November enters into force as early as 1 January 2017. The process will initially concern only the companies that sell gas wholesale, the obligation to get approval of the tariffs for households will exist for seven more years. The reason behind starting work on the implementation of the changes was EU Justice Tribunal stating that current regulations are not fully compatible with the EU laws within the scope of creating unified gas market. The system of regulated gas prices present in Poland needs to be changed.

Introduction of the new legal provisions means regular removal of successive obligations put currently on entrepreneurs with regard to setting and approving by the President of Energy Regulatory Office gas price tariffs. Liberalisation of natural gas prices was assumed, and letting the regulation go was planned to happen at different dates, with divisions into different groups of consumers. Initially, liberalisation of the prices will concern trade enterprises, which conduct sale in the so-called virtual point, e.g. power exchange. In the group, there are also enterprises trading in liquefied natural gas LNG, compressed natural gas CNG, and also in the case of wholesale market sales in the form of tenders, public procurement and auctions.

Another stage of price liberalisation is to take place in October 2017 and concern the remaining consumers, yet still omitting households. For this group, the changes are planned for as late as January 2024, and the time is to allow them to properly acquaint themselves with the new rules and use the held rights, e.g. with regard to the choice of the entity from which they decide to buy the gas, consciously.

It also should be noted that the provisions included in the amendments are to also bring a visible increase in the effectiveness of fighting the grey market of fuel trade and also constitute a substantial part of the process of correcting the so-called National Index Target, which presents guidelines with regard to the minimum level of biocomponents and other sustainable fuels in comparison with the total amount of liquid fuels and biofuels that is used within a year in transport. Government regulation on National Index Target for 2017 set the amount at 7.8 percent, yet the planned amendments assume keeping the index amount at the current level of 7.1 percent.

Investment Outlook and Business Perspective

Poland remains one of the most attractive investment destinations in the European Union. With GDP exceeding EUR 650 billion, Poland is the sixth largest economy in the EU and the largest in Central and Eastern Europe. The country has maintained positive economic growth for over three decades, including through multiple global crises.

Foreign direct investment in Poland continues to grow, driven by the country’s strategic location, skilled workforce, EU membership, competitive costs, and improving infrastructure. Key sectors attracting investment include manufacturing, technology, business services, logistics, and financial services.

For investors considering entry into the Polish market, proper structuring of the investment vehicle is crucial. The choice between a sp. z o.o. (LLC), S.A. (joint-stock company), branch office, or joint venture depends on the investment size, sector, tax considerations, and long-term strategic objectives. Professional advisory can help optimize the structure from both operational and tax perspectives.

If you are doing business in Poland or considering entering the Polish market, Zalewski Consulting can help. Learn more about our legal advisory services, or contact us for a free consultation.