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How to calculate the price cap – new regulation

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​by Jakub Plebański

14 November 2022


On 9 November 2022, the Council of Ministers published a regulation on how to calculate the price cap. It will be used to calculate the amount of contribution payable by renewable energy producers towards the Price Difference Payment Fund.
 
The Fund has been designed to impose a cap on revenues of renewable energy producers. The government believes that revenues beyond the imposed cap should be used to support other energy market participants.
 

Basis for setting caps


According to the regulation, the revenue cap will be set using reference prices for energy from renewable sources as defined in Article 77(3)(1) of the RES Act, determined as of the date of calculating the contribution to the Fund.
 
For energy producers that use the auction system – with respect to the volume sold by them outside that system – the cap will be set using the auction bid price indexed by the inflation rate from the previous calendar year, as announced by the President of the Central Statistical Office.  
 
If you have any questions about new regulatory obligations imposed on energy companies – please contact us.


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