Press articles and reports

Gas Industry Commitments under the Law on Electro Mobility and Alternative Fuels

Adam Wawrzynowicz i Tomasz Brzeziński Magazynu Izby Gospodarczej Gazownictwa „Przegląd gazowniczy” nr 2/2017, s. 20-21

Published on April 27, 2017 in the Public Information Bulletin of the Government Legislation Centre, the draft law on electro mobility and alternative fuels envisages, inter alia, new responsibilities for the gas distribution system operators to develop refueling infrastructure for CNG and LPG vehicles. The bill seeks to implement EP / Council Directive 2014/94/EU of 22 October 2014 on the development of alternative fuels infrastructure.

Published on April 27, 2017 in the Public Information Bulletin of the Government Legislation Centre, the draft law on electro mobility and alternative fuels envisages, inter alia, new responsibilities for the gas distribution system operators to develop refueling infrastructure for CNG and LPG vehicles. The bill seeks to implement EP / Council Directive 2014/94/EU of 22 October 2014 on the development of alternative fuels infrastructure.

Under the Directive, the Member States were obliged, inter alia, to create a sufficient number of LNG and CNG refueling points and to provide relevant information to users of alternative fuel vehicles. The draft law on electro mobility and alternative fuels imposes a number of obligations related to the implementation of the tasks set out in the Directive for distribution system operators. An article by Adam Wawrzynowicz and Tomasz Brzezinski discusses the particular responsibilities of the DSOs as envisaged in this project.

The article by W&W’s Adam Wawrzynowicz and Tomasz Brzezinski, entitled “Gas Industry Commitments under the Electro Mobility and Alternative Fuels Act” was published in the latest issue of the Gazette of the Chamber of Commerce of the Gas Industry, “Przegląd Gazowniczy” no 2/2017, p.20-21.

PROPOSAL FOR DETARIFFICATION OF THE GAS MARKET

ADAM WAWRZYNOWICZ „Przegląd gazowniczy” nr 2/2016

In April of this year, the website of the Government Legislation Centre published a draft bill amending the “Energy Law” by introducing detariffication on the gas market and releasing energy companies from the obligation to submit tariffs for approval by the President of the Energy Regulatory Office. The proposed amendment will enter into force on 1st October 2016.

In April of this year, the website of the Government Legislation Centre published a draft bill amending the “Energy Law” by introducing detariffication on the gas market and releasing energy companies from the obligation to submit tariffs for approval by the President of the Energy Regulatory Office. The bill is a response by the Polish government to the ruling of the Court of Justice of the EU of 10 September 2015. (Case C-36/14, Commission v Poland). According to the ruling, with the unlimited in time, statutory obligation by a state authority to approve tariffs for trade in natural gas for all customers, the Republic of Poland is in breach of European Union law.

The proposed amendment aims for the gradual detariffication  of natural gas trading and the eventual total abandonment of natural gas price regulating. The draft bill also provides for the obligation to adapt natural gas sale contracts and comprehensive agreements to the requirements of detariffication. Adam Wawrzynowicz’s article discusses the scope and schedule of detariffication and assesses the changes and the proposed date of entry into force of the Act.

The article by W&W’s Adam Wawrzynowicz, “Proposed detariffication in the gas market” was published in the latest edition of the magazine of the Chamber of the Natural Gas Industry “Przegląd gazowniczy” No. 2/2016, pp. 38 – 40.

LEGAL ASPECTS OF THE IMPLEMENTATION OF SUPPORT MECHANISMS FOR THE OPERATION OF THE SWINOUJSCIU LNG TERMINAL

ADAM WAWRZYNOWICZ, TOMASZ BRZEZIŃSKI „Nafta-Gaz” Nr 6/2016

As a new entry point to the national transmission system (NTS)The Swinoujscie LNG terminal is crucial for Polish energy security and , the full potential of the terminal building as an instrument of Polish energy security depends upon the demand for the services of the terminal, which will be determined by, among others, the attractiveness of the price of deliveries through the terminal compared to deliveries by other entry points to the NTS.

The article “Legal aspects of the implementation of support mechanisms for the operation of the Swinoujscie LNG terminal ” by W&W’s Adam Wawrzynowicz and Tomasz Brzezinski appeared in the June issue of the monthly ” Nafta-Gaz ” (No. 6/2016), published by the Publishing House of the Institute of Oil and Gas – The National Research Institute.

Despite the expansion of the gas interconnectors on its western and southern borders, Poland is still overly dependent on gas supplies from the east and at risk of disruption of supply due to the geopolitical situation. In this context, the LNG terminal in Swinoujscie is crucial for Polish energy security as a new entry point to the national transmission system (NTS) providing access to the global LNG market and offering opportunities for the diversification of gas supply sources. At the same time, the full potential of the terminal building as an instrument of Polish energy security depends upon the demand for the services of the terminal, which will be determined by, among others, the attractiveness of the price of deliveries through the terminal compared to deliveries by other entry points to the NTS.

The article presents a framework for the potential implementation of mechanisms to increase the competitiveness and availability of the LNG terminal to market participants. In addition to legislation, it considers the jurisprudence of the Court of Justice of the European Union and the European Commission, to be considered for possible support mechanism implementation plans in Poland for the operation of the terminal. The article cites the example of the successful implementation of the support system for the Klaipėda LNG terminal  notified to the European Commission in 2013.

THE NEXT STEPS IN THE IMPLEMENTATION OF REMIT – REPORTING OF TRANSACTIONS IN WHOLESALE MARKETS ENERGY AND KEY DATA

TOMASZ BRZEZIŃSKI, ANNA MATHEWS „Nowa energia” nr 4/2015

From the 7th October 2015, many power companies will be obliged to report transactions and fundamental data to the Agency for the Cooperation of Energy Regulators (ACER). These obligations arise from the provisions of the EU “REMIT” Regulation.

Regulation (EU) No 1227/2011 of the European Parliament and of the Council on wholesale energy market integrity and transparency (REMIT), which exists to improve the transparency of the wholesale electricity and gas markets, imposes numerous responsibilities on market participants. The parts of the Regulation relating to standard contracts will come into force as early as 7 October 2015 while those relating to concluding back-loaded OTC contracts will come into force on 7 April 2016. The Act regulating in detail the procedure for REMIT reporting is Commission Implementing Regulation (EU) No 1348/2014.

The article appearing in the magazine “Nowa energia” focuses on the practical aspects of the implementation duties and primarily analyzes what the standard reporting contracts and basic data to be sent to ACER will consist of. It covers, among others, what services the Polish Power Exchange, which has already acquired the status of an RRM (Registered Reporting Mechanism), will supply and how to start reporting a transaction through this platform. The article focuses on the backloading of individual contracts, and what role ARIS will play in the reporting process.

A number of practical tips are contained in the article. It underlines the fact that some of the fundamental data is already collected by specialized entities and institutions under the provisions of European and EU legislation. These include ENTSO for Electricity, ENTSO for Gas and LNG system and storage operators, which pass on some of the fundamental data to ACER in the name of market participants.

The article “The Next Steps in the Implementation of Remit – The Reporting of Transactions in Wholesale Energy Markets and Fundamental Data” by W&W’s Tomasz Brzezinski and Anna Mathews was published in the latest issue of the bimonthly publication ” Nowa energia ” No. 4/2015.

DRAFT OF NEW DIVERSIFICATION REGULATION

KAMIL IWICKI „Nowa Energia” nr 02-03/2015

The Regulation of the Council of Ministers dated 24 October 2000, on the minimum level of diversification of sources of imported gas is one of the barriers to the development of a competitive natural gas market in Poland. Therefore, at the beginning of 2015, the Ministry of Economy started work on the draft for a new Regulation to repeal and replace the current act. A move that has been long-awaited by the gas industry.

The article from W&W’S Kamil Iwicki  covers the most important provisions of the current Regulation, and forms the conclusion that such provisions are inadequate for the present situation on the natural gas market, in particular in relation to the ever greater degree of competitiveness in the market. The present arrangements for gas supply diversification are discussed and reasons are given for why the obligations laid down in the Regulation are very difficult to implement by Polish energy companies. The article also indicates that there are further reasons why it was decided to prepare a new Regulation.

The article analyzes the changes which have necessitated the establishment of a new draft of the Regulation and examines the current problems of interpretation and application of the 2000 Regulation. The most frequent complaints in relation to the current diversification Regulation concern the difficulties of interpretation and in particular the interpretation of fundamental concepts such as “import” or “country of origin of gas” which are not defined in the 2000 Regulation or in the Energy Law. The draft Regulation is an attempt to address these ambiguities.

The article, “The draft of the new diversification Regulation” was published in the latest issue of the magazine “Nowa Energia ” No. 02-03 / 2015, p. 24 – 26.

WHITE PAPER ON PUBLIC CONTRACTS AND NEW DIRECTIVE

KATARZYNA DZIĄĆKO „Energetyka Cieplna i Zawodowa” nr 3/2015

GAS TRADING OBLIGATION AS AN INSTRUMENT OF GAS MARKET LIBERALIZATION

WOJCIECH BIGAJ Edited volume "Legal Conditions of Competition in the Gas Market" (ISBN 978-83-255-6723-1), edited by. B. Popowska, prof. E. Kosinski, Dr. P. Lissoni (Poznan University of Adam Mickiewicz), published by CH Beck 2015.

The gas trading obligation in Poland was introduced by the amendment to the Energy Law which came into force on 09.11.2013. The implementation of the obligation for the public trading of natural gas was to create competitive conditions in the wholesale market for natural gas, which in the longer term are to lead to the release of natural gas prices from the administrative control of the state.

The article describes the effects of the functioning of the trading obligation on competition in the gas market. It also indicates the origin of these obligations, as well as the legal regulation commitments relating specifically to gas (power generators have been under a public trading obligation since 2010).

The article by W&W’s Wojciech Bigaj on gas trading obligations is published in the edited volume “Legal Conditions of Competition in the Gas Market” (ISBN 978-83-255-6723-1), edited by. B. Popowska, prof. E. Kosinski, Dr. P. Lissoni (Poznan University of Adam Mickiewicz), published by CH Beck 2015.

The edited volume is a summary of the discussions held during the National Scientific Conference -“Competition in the Gas Market. Legal Conditions.”, which was held on the 3rd and 4th March 2013 in the Faculty of Law of Poznan University of Adam Mickiewicz. The event was under the honorary patronage of the Minister of Economy, the Minister of the Treasury, the Ministry of Justice, the President of the Energy Regulatory Office, the President of the OCCP, and others. Wojciech Bigaj was a speaker at the Conference and presented a paper entitled, “The Small Energy Tripack as an instrument for the liberalization of the gas market.”

THE COMING INTO FORCE OF REMIT – THE MONITORING SYSTEM FOR THE WHOLESALE ENERGY AND GAS MARKETS. AN ANALYSIS OF THE DUTIES OF MARKET PARTICIPANTS

TOMASZ BRZEZIŃSKI AND ANNA MATHEWS Collective work "Zarządzanie energią i teleinformatyka ZET 2015" (ISBN 978-83-937928-7-0), edited by. Assoc. Eng. Henry Kaproń (Warsaw University of Technology)

REMIT entered into force in 2011. However, some of the responsibilities set out therein were only clarified after approval by the European Commission Implementing Regulation of December 2014. The aim of REMIT is to increase the integrity and transparency of wholesale energy markets, in the interests of end users, through the fostering of open and fair competition.

The main duties introduced by REMIT include the obligation to publically publish internal information, the prohibition of insider trading, and the imposition of non-manipulation in wholesale energy markets. Furthermore, the REMIT Implementing Regulation imposes an obligation to report transactions to the regulatory agency –  ACER, and imposes the obligation to provide basic data on the capacity and use of facilities, as well as the obligation for the registration of market participants in the register maintained by the Energy Regulatory Office (URE).

The article describes each of the above duties, giving also the penalties for non-compliance or violations. Proposals for criminal and administrative penalties were included in the draft amendment to the Energy Law to implement REMIT.

The authors also identified the REMIT competent authorities for monitoring wholesale energy markets as the Agency for the Cooperation of Energy Regulators (ACER) and the national regulatory authority (in Poland this being the URE).

The article by Tomasz Brzezinski and Anna Mathews of W&W on the obligations imposed by REMIT for energy companies appeared in the collective work “Zarządzanie energią i teleinformatyka ZET 2015″ edited by prof. Assoc. Eng. Henry Kaproń (University of Warsaw).

The entire article is available in PDF format below.

SURVEYING AFTER THE AMENDMENT – CONCERNS AND PROBLEMS ASSOCIATED WITH THE AMENDMENT OF THE SURVEYING AND CARTOGRAPHIC ACT

AGATA DOMAŃSKA „Energetyka cieplna i zawodowa” nr 1/2015

The Amendment to the Surveying and Cartography act of 5 June 2014 introduces significant changes to the system of purchaser’s access to surveying data as well as the fees. The author extensively discusses these two important issues, and also discusses how to solve the problems caused by the absence of transitional provisions in the Amendment. Also included is how the changes affect the situation of energy companies and deals with the distribution of gaseous fuels or energy.

The Amendment to the Surveying and Cartographic Act partially entered into force in July 2014 with the remainder coming into force on 1st January 2015.

The author analysis the changes to the Act and considers their current legal status: “Before the coming into force of the Amendment, survey data was acquired on the basis of a civil law contract, while the Amendment introduced a type of special license for the buyers to use the data – the buyers became licensees. A requirement for a civil contract was changed to an administration process.”

The provisions governing fees before the Amendment were the provisions of the Regulations of the Minister of Infrastructure of 19 February 2004. On charges for surveying and cartographic activities and information provision, as well as for the commissioning of maps and extracts from land registration records, the Amendment of 2014 eliminated the distinction between basic fees and operational charges. There were also changes to the regulations concerning charges.

The author indicates that the biggest weakness of the Amendment is the lack of transitional provisions. Consequently there are no regulations on how to treat the new rules in relation to civil law contracts concluded under the previous regime. It is also noted that the fees paid prior to the Amendment were under a method of calculation which has changed considerably. Some of the administrators of data – regional councils (starostwo powiatowe)- acting on behalf of the Treasury,  have considered civil contracts null and void from the date of entry into force of the Amendment, although the Amendment itself does not give any basis for this policy. Also, the Amendment does not provide for the updating of data and therefore the buyer is not able to receive updates as guaranteed in the their contract. As pointed out by the author – “At the moment, the local authority district offices are refusing to update the data on the basis of agreements for access to data and they are initiating administrative legal proceedings.”

The article discusses the legal gap created because of the absence of transitional provisions in the amended Act, taking into account, in the author’s opinion, the position of the Chief Surveyor, amongst others.

The article ” Surveying after the Amendment – Concerns and problems associated with the Amendment of the Surveying and Cartographic Act ” was published in the latest issue of the bimonthly ” Energetyka cieplna i zawodowa ” (No. 1/2015). We invite you to familiarize yourself with the contents of the article, which is available on our website in PDF form.

IMPROVING MARKET CONTRACTORS – AMENDMENTS TO THE “PUBLIC PROCUREMENT LAW”

CATHERINE DZIĄĆKO „Energetyka cieplna i zawodowa” No. 8/2014

The paper primarily focuses on the remuneration obligations payable to the contractor in contracts concluded for a period longer than 12 months, as specified in the new paragraph 5 of the amended Article 142 of the PPL. The author argues that the changes associated with the price adjustment mechanisms of long-term contracts “can cause the greatest economic consequences for economic operators on the market.”

The paper primarily focuses on the remuneration obligations payable to the contractor in contracts concluded for a period longer than 12 months, as specified in the new paragraph 5 of the amended Article 142 of the PPL. The author argues that the changes associated with the price adjustment mechanisms of long-term contracts “can cause the greatest economic consequences for economic operators on the market.”

There already is, of course, the possibility for the ‘alignment’ of remuneration in the form of an automatic price adjustment mechanism or the opportunity to amend a contract, which may be introduced to an agreement on the basis of Article 358 (1), paragraph 2 of the “Civil Code”. However, the application of the provisions on increasing the remuneration for the contractor has, so far, proved very popular because of the difficulties of precise budgeting.

Attention is also given to the transitional provisions relating to long-term contracts which were concluded before the entry into force of the amended provisions of the PPL. These transitional provisions allow parties to an agreement to renegotiate salaries.

The paper concludes that the introduced amendments will significantly contribute to the proper development of economic operators in the energy industry.

Article Fri. “Improving market performers” was published in the latest issue of the bimonthly “Thermal energy and professional” (No. 8/2014). We encourage you to read the publication in the magazine or to download an article by Catherine Dziąćko from our website (PDF below)

“Improving Market Contractors” is published in the latest issue of the bimonthly publication “Energetyka cieplna i zawodowa” (No. 8/2014). The whole article (Polish language version) can be viewed in the publications section of our website.