The Energy Regulatory Authority requests explanations from entrepreneurs
Recently, a number of entrepreneurs have received requests from the Energy Regulatory Authority (“URE”) for explanations regarding their consumption of natural gas for purposes other than energy generation. The requests raise doubts, because of the unclear provisions of the Energy Efficiency Act and information about high penalties which may be imposed on entrepreneurs.
Entrepreneurs are obliged to submit statements on the volume of consumption for purposes other than energy generation to natural gas suppliers. The statements are used to determine the suppliers’ obligations regarding the establishment and presentation for redemption of the energy efficiency certificates, and they are the basis for calculation of the replacement fee to be paid by the suppliers to the President of the Energy Regulatory Authority.
Filing the statement gives rise to some problems, as the Act on Energy Efficiency provides no definition of consumption of gas for energy-generation purposes or for other purposes. Some entrepreneurs interpret the consumption of gas for energy generation as its consumption for heating only. This interpretation was negatively verified by the URE President. It is assumed that “the purpose of energy generation” means the use of heat energy generated by gas burning. It is irrelevant whether it was used for heating, or e.g. in production. A purpose other than energy generation is an activity which does not result in generation of energy. In other words, it means consumption of gas as a raw material (e.g. in production of ammonia, rubber, plastics, paints, varnishes, electrodes).
The URE verifies compliance of the statements on gas consumption for purposes other than energy generation with the factual situation, and checks whether the entrepreneur has complied with the obligations and calculated the amount of the replacement fee. Provision of false data may result in the URE President imposing an administrative fine of max. 10% of the entrepreneur’s last tax year’s revenue.
Thus, if you are an entrepreneur, we recommend that you check whether your statements on gas consumption for purposes other than energy generation are consistent with the above definition of “purposes other than energy generation”. If they are not, the statements submitted to the supplier and URE may need to be verified.
If you have received a request from URE or you need to determine whether you have been using gas for purposes of energy generation or otherwise, please contact us.
KONTAKT
E: aleksandra.kalinowska@pl.Andersen.com
T: +48 22 690 08 70
M: +48 724 440 693