Energy Weekly Publication #30 Capacity charge for 2024

11 September 2023

The President of the Energy Regulatory Office has announced the amount of the capacity charge for 2024. The market regulator has indicated that the capacity charge rate for flat-rate customers (e.g. household customers) will be a maximum of PLN 14.90, and for other customers the rate will be PLN 0.1267 for each kWh of consumed electricity.

The program of support for capacity suppliers, provided for in the provisions of the Capacity Market Act, is aimed at ensuring energy security by maintaining flexible reserves used in times of increased electricity demand, as well as the construction of new and modernization of existing generating units.

Ensuring the stability of the supply of electricity to end-users is performer, among others, by distribution system operators, who collect a capacity charge from entities connected to the grid. This charge is then transferred to the transmission system operator, responsible for capacity market in Poland.

The amount of the capacity charge depends, inter alia, on the level of forecast bills, annual electricity consumption, as well as the expected costs of operating the capacity market. The power charge rates are determined separately for end customers billed proportionally for each kWh of electricity consumed during peak demand hours and customers billed on a flat rate basis based on annual electricity consumption levels.

The Act provides regulations to support consumers with so-called flat electricity consumption profiles, in which the difference in average electricity consumption between the hours covered by the capacity charge (peak demand hours) and other hours is a maximum of 15%.

The target unified method of calculating the capacity charge from 1 January 2028 will be the product of the rate, the amount of energy consumed during peak demand hours and the qualification factor of the specific consumer.

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Marek Grzywacz, Ph.D., Counsel

Małgorzata Biszczanik, Intern