• The President of UOKiK, Tomasz Chróstny, has initiated an investigation into the practices of Polskie Sieci Elektroenergetyczne.
• Doubts have arisen regarding the implementation of the mechanism for redispatching renewable energy generation units and energy storage facilities.
• UOKiK is investigating whether some energy producers may have been treated unequally.

Polskie Sieci Elektroenergetyczne is the operator of Poland’s electricity transmission system. By law, only one entity may operate in this capacity in the country. As a result, such a company may hold a dominant position on the market, which, under antitrust law, must not be abused. PSE’s tasks include, among others, adjusting the amount of energy produced to match consumption, that is, balancing the power system. An imbalance between energy production and demand can lead to system disruptions, including power outages.

One way of balancing electricity is the so-called non-market mechanism for redispatching renewable energy sources (RES). This involves temporarily shutting down or limiting the operation of RES installations to balance the system or prevent grid overloads. However, this may have negative consequences for energy producers, including reduced revenue from energy sales.

The President of UOKiK received complaints from entrepreneurs involved in renewable energy production that their generation facilities were subject to redispatching more frequently than others, without justification. This could adversely affect their market position relative to competitors. Consequently, UOKiK is investigating whether the orders to switch off or reduce electricity generation in renewable energy installations were issued by PSE in a proportionate, consistent, and non-discriminatory manner for each entrepreneur.

– We do not question the role of PSE in ensuring the security and stability of Poland’s power system, nor do we question the tools available to the transmission system operator for this purpose. We are examining whether the redispatching mechanism was used in a transparent and non-discriminatory manner – says Tomasz Chróstny, President of UOKiK.

Problems related to redispatching are a relatively new phenomenon on the Polish market and are a consequence of the dynamic development of generation capacity in renewable energy sources, in particular prosumer capacity. This issue is also known to the Energy Regulatory Office, which, as the regulator of the energy sector, is taking its own measures in this area. The President of UOKiK, on the other hand, wants to support processes aimed at regulating the rules for applying the redispatching mechanism so as to ensure a level playing field for all entrepreneurs.

Under the Competition and Consumer Protection Act, an entrepreneur holding a dominant position in a given market may not abuse that position to the detriment of its contractors, competitors, and consumers.

Report a breach of competition law

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