Yesterday, i.e. on March 9, 2023, the first reading of the Government draft act on the preparation and implementation of investments in the field of pumped-storage power plants and accompanying investments took place. The project mainly concerns the simplification and improvement of administrative procedures related to the preparation and implementation of investments in the field of pumped-storage power plants (ESP) and accompanying investments.
The draft was subject to public consultations and inter-ministerial arrangements, which began in November 2022. It was then referred to the Legal Committee for consideration and finally adopted by the Council of Ministers on February 28, 2023 and sent to the Sejm on March 3, 2023.
At the final stage of work, the Draft was supplemented with provisions amending the Act of 27 October 2022 on emergency measures aimed at limiting electricity prices and support for certain consumers in 2023 (hereinafter: “Act on emergency measures”).
Art. 40 of the Draft provides for the exclusion of the obligation to transfer a write-off to the Fund in relation to electricity producers in renewable energy source installations that are owned, managed or used by a state legal person within the meaning of Art. 3 sec. 1 of the Act of December 16, 2016 on the principles of state property management.
According to Art. 42 of the Draft, in the case of already transferred contributions to the Fund by the mentioned entities, the Settlement Manager is obliged to return the funds.
The draft has raised numerous controversies, including non-compliance with Council Regulation (EU) 2022/1854 of 6 October 2022 on emergency intervention to solve the problem of high energy prices (hereinafter: “Regulation”) in terms of proportionality and non-discrimination rules. In addition, in the opinion of the Association, establishing an exemption from the obligation to transfer a write-off to the Fund within the meaning of the Act on emergency measures for energy producers in renewable energy installations that are owned, managed or used by a state legal person meets the conditions for state aid, which should be subject to notification to the European Commission in order to be considered compatible with the EU internal market.
The above doubts were shared by representatives of the Legislative Office of the Sejm during the first reading.
No amendments were made to the draft during the first reading. The second reading is to be held during the next plenary session of the Sejm, which is scheduled for April 12-14, 2023.