Financial penalties for energy companies for delay in issuance of connection conditions

The amendment to the Construction Law adopted by the Sejm and the Senate, currently awaiting the signature of the President of the Republic of Poland, provides, inter alia, for the introduction to the Energy Law Act of provisions on the basis of which energy companies will be punished with administrative fines for delayed issuing of conditions for connection to the electricity, gas and heating networks.

The amount of the penalty imposed for the delay in issuing the connection conditions may not be lower than PLN 1,500 for each day of delay, but no more than 15% of the income of the punished entrepreneur in the previous tax year. The fine shall be imposed by the President of the Energy Regulatory Office by means of an administrative decision.

The changes introduced are undoubtedly aimed at disciplining energy companies to process applications for issuing connection conditions in a timely manner in order to ensure the efficiency of the investment process.

In addition, the amendment sets new deadlines for energy companies to issue grid connection conditions, i.e.

Conditions for connection to the power grid:
a) 21 days from the date of submission of the application by the applicant belonging to the V or VI connection group, connected to the network with a voltage not higher than 1 kV;
b) 30 days from the date of submission of the application by the applicant included in the IV connection group, connected to the network with a voltage not higher than 1 kV;
c) 60 days from the date of submission of the application by the applicant included in the III or VI connection group, connected to the network with a voltage above 1 kV, not equipped with a source;
d) 120 days from the date of submission of the application by the applicant included in the III or VI connection group – for an object connected to the network with a voltage higher than 1kV equipped with a source;
e) 150 days from the date of submission of the application by the applicant belonging to the first or second connection group.

Conditions for connecting to the gas network:
a) 30 days from the date of submission of the application by the applicant belonging to connection group B, subgroup I;
b) 60 days from the date of submission of the application by the applicant belonging to connection group A or connection group B of subgroup II;
c) 90 days from the date of submission of the application by the applicant belonging to connection group C.

Conditions for connecting to the heating network:
a) 30 days from the date of submission of the application, where heat nodes supplying heat recipient facilities are to be connected to the heating network and when the installation at the recipient’s facility is to be connected to the external receiving installation behind the group node belonging to the energy company;
b) 3 months from the date of submission of the application, if heat sources are to be connected to the heating network.

However, it should be remembered that the deadlines for issuing grid connection conditions do not include the periods provided for in the law to perform specific activities, deadlines for completing the application for grid connection conditions, delays periods caused by the fault of the entity requesting connection or due to independent reasons from an energy company. In addition, the provisions of the Energy Law Act entitle an energy company in particularly justified cases to extend by a maximum of half the time limits provided for in the Act for the issue of connection conditions.