In brief

• The Senate proposed amendments to the act on support for energy-intensive enterprises and referred the bill back to the Budget and Public Finance Committee and the National Economy and Innovation Committee.
• The programme is to operate in 2027–2030, with a budget of PLN 4.8 billion: PLN 800 million in 2027, PLN 1.6 billion each in 2028 and 2029, and PLN 800 million in 2030.
• Beneficiaries will have to allocate at least 50 percent of the equivalent of the aid to decarbonisation, energy efficiency, renewable energy sources, energy storage or demand flexibility.
• The bill also provides for a change to CIT, which is to provide funds for financing the programme.

Amendments in the Senate

On Tuesday, senators debated the act on support for enterprises from energy-intensive sectors that bear high electricity costs. Amendments were submitted concerning the rules for implementing the investment obligation set out in the act and the possibility of extending aid to companies that produce energy themselves (Ustawa o wsparciu przedsiębiorstw energochłonnych do poprawki. Senat skierował ją do komisji – energetyka24.com). After the debate, the bill was referred again to the Budget and Public Finance Committee and the National Economy and Innovation Committee.

Rules and amounts

The provisions are to introduce an aid mechanism for energy-intensive consumers covering the years 2027–2030. The programme's budget reaches PLN 4.8 billion, and the funds are spread over four years:

• 2027: PLN 800 million
• 2028: PLN 1.6 billion
• 2029: PLN 1.6 billion
• 2030: PLN 800 million

The aid is temporary. A condition for receiving it is directing at least half of the equivalent of the support to the purposes specified in the provisions, including decarbonisation, improving energy efficiency, developing renewable energy sources, energy storage, or increasing demand flexibility.

Taxes for businesses

The bill also includes a change to CIT, which is to cover some taxpayers and provide funds for financing the programme.

Market context

The issue arises against the backdrop of sharp fluctuations in energy prices. After the switch to winter time, wholesale prices in some hours rose by more than 200 percent compared with the previous week, and on Wednesday evening the price approached PLN 3.3 per kWh (Drastyczne podwyżki po zmianie czasu. Ceny prądu wzrosły nawet o 200 proc. – dorzeczy.pl). According to Łukasz Czekała, president of Optimal Energy, such a jump has no clear justification in market events.

For energy-intensive businesses, the cost of electricity during peak hours can quickly translate into a company's results. The support programme is meant to cushion the effects of such fluctuations.

What next

The bill will now return to committee work. Only after the committees' decisions will the bill go back to a vote, and its entry into force depends on the further course of parliamentary work.