Energy Newsletter. Update of the National Energy and Climate Plan (NECP)

On July 28, 2025, the Ministry of Climate and Environment approved a new version of the draft update of the National Energy and Climate Plan until 2030, with a perspective to 2040 (NECP). The updated plan sets a more ambitious direction for Poland’s energy transition – it foresees, among others, a share of renewable energy sources (RES) in electricity generation exceeding 50% by 2030 and a reduction of greenhouse gas emissions by 53.9% (compared to 1990).

The foundation of the NECP is six pillars of energy transformation:

• Lowering energy prices – striving for lower energy generation costs and reduced prices for consumers;
• Modernization of the grid and development of energy storage – upgrading electricity infrastructure and expanding energy storage for system stability;
• Accelerated RES development and electrification – intensifying investments in green energy (wind, solar, etc.) and electrification of the heating and transport sectors;
• Improving energy efficiency – increasing the efficiency of energy use in the economy (e.g., building thermal modernization, industrial upgrades);
• Support for innovative technologies – development of new solutions (e.g., green hydrogen, CCS/CCUS) and a major financial plan for the transition;
• Just social transition – ensuring that changes are socially fair (protection of mining regions, reducing energy poverty).

The plan assumes that already in 2030, more than half (51.8%) of electricity in Poland will be generated from RES, and by 2040 this share will rise to nearly 80%.

In the heating sector, there will also be a sharp increase in the role of renewables – according to the document, RES production is to reach a 36.7% share in district heating by 2030 and 67.6% by 2040. This transformation will be accompanied by a complete phase-out of coal as a fuel. The Ministry of Climate and Environment assumes that the operation of coal-fired CHP plants will end around 2035, and from 2040 all electricity will come from low- and zero-emission sources. Natural gas will serve as a transitional fuel, with its consumption expected to peak between 2025 and 2030, and then systematically decline. As a result of these changes, it is expected that fossil fuel imports will decrease by about 37% by 2040, strengthening the country’s energy security and reducing dependence on foreign raw materials.

Implementation of the NECP involves massive investments – the total volume of outlays by 2030 is estimated at about PLN 1.1 trillion. This is the largest modernization undertaking in Poland since 1989. These funds will be directed not only to new generation capacities, but also, for example, to the modernization of power grids, mass thermal modernization of buildings, development of energy storage, as well as hydrogen and biomethane technologies.

The new NECP will be consistent with the EU’s climate and energy objectives – in particular with the “Fit for 55” package and the revised RES directive. Poland has committed to a 53.9% reduction in emissions by 2030 and to achieve a RES share higher than the binding EU target.

The NECP considers two scenarios for the transformation’s development. The WEM scenario (with existing measures – “business as usual”) is the baseline development path. According to estimates, the WEM scenario will allow for about a 43% reduction in emissions by 2030 (compared to 1990). The WAM scenario (with additional measures – active transformation scenario) assumes the implementation of additional policy and investment instruments to accelerate decarbonization. As a result, in the WAM variant, it is possible to more fully achieve the EU targets – emission reduction reaches the aforementioned 53.9%, while the share of energy production from RES rises to 51.8% (2030) and 79.8% (2040), respectively.

It is expected that the WAM scenario will be the proper path for Poland’s transformation – active climate and energy policy is to bring higher economic growth, better quality of life, and lower energy bills for citizens.

Adoption of the NECP will mean both challenges and new opportunities for business. For the energy sector, the plan may represent the largest investment stimulus in decades – especially in the areas of RES, energy storage, grid modernization, and the implementation of new technologies. Power system operators and energy companies must prepare for accelerated decarbonization and adapt their business models to achieve a low-emission energy mix. Meanwhile, industry and energy-intensive enterprises can expect lower energy costs and a reduced carbon footprint in the coming years, which will improve their competitive position in the EU market and facilitate access to sustainable financing (ESG). The government emphasizes that the energy transition will become a new engine of the economy, potentially increasing GDP growth by 3.6% per year (more than twice the EU average).

One of the main declared effects of the plan is to lower energy costs and bills for end users. According to forecasts, the unit cost of electricity production is to fall by about 11% by 2030 and 31% by 2040 (in the WAM scenario), mainly thanks to cheaper RES energy and lower emission costs. This will translate into real savings for consumers: average household electricity bills are expected to be about 6% lower in 2030, 18% lower in 2035, and 27% lower in 2040 (compared to current levels). Similar reductions in energy prices will be felt by businesses – for industry, bills may fall by 9%, 21%, and 28% in 2030/2035/2040, and in the services sector by 7%, 20%, and 29%. The plan also foresees a package of protective and social measures to ensure a just transition – including subsidies for home thermal modernization, the introduction of social tariffs for the most vulnerable, investments in the energy efficiency of municipal housing, and other initiatives aimed at reducing energy poverty and improving air quality.

The update of the NECP adopted by the Ministry of Climate and Environment may set a clear and long-term direction for Poland’s energy and climate policy. For businesses, this will mean the need to take into account new realities – from more ambitious emission reduction targets, through intensive RES and infrastructure development, to new legal regulations. The work on updating the NECP is now being taken over by the newly established Ministry of Energy, which has declared its intention to re-analyze the document and present it to the Council of Ministers in October this year.

Draft NECP 2030 Update Adopted by Ministry of Climate - KPMG Poland

On June 25, 2025, the Sejm adopted an act amending the Act on Investments in Wind Power Plants and certain other acts (the Act amending the Act on investments in wind power plants and certain other acts). The act provides for the abolition of the 10H rule introduced in 2016 and reduces the minimum distance from residential buildings to 500 meters (compared to the currently applicable 700 meters). These restrictions also apply to the location of wind farms in MRT and MCTR airspaces and near national roads, with the possibility of exceptions approved by the General Director for National Roads and Motorways. The changes also include rules regarding the distance from power grids and allow for environmental and planning procedures to be conducted in parallel. The act also introduces simplified rules for repowering, i.e., replacing older turbines with new ones.

Apart from regulations strictly related to the construction of wind turbines, the act also contains provisions extending, until the fourth quarter of 2025, the freeze on electricity prices for households at the net level of PLN 500 per MWh, which was previously in force until the end of September.

On August 21, 2025, the President of the Republic of Poland announced that he had vetoed the bill. The Minister of Climate and Environment declared that the Ministry of Climate and Environment would continue working on the bill so that it could be submitted to the Sejm as early as September.

On August 6, 2025, the Act of August 5, 2025 amending the Act on reserves of crude oil, petroleum products and natural gas, as well as the rules of conduct in situations of threat to the fuel security of the state and disruptions on the oil market and certain other acts (amending Act) was submitted for the President’s signature.

The amending Act introduces a number of changes regarding the rules of conduct in situations of threat to the fuel security of the state. The key changes include: the rules for maintaining mandatory reserves of crude oil and petroleum products – in Article 24a of the Act on Mandatory Reserves, the deadline for delivering to Poland the mandatory gas reserves held outside the territory of the Republic of Poland (in the EU, EFTA or EEA) has been extended from 40 to 50 days. After the amendment, the possibility of using these reserves will depend on the consent of the minister responsible for energy raw materials (the Minister of Energy) to be granted within 30 days from the submission of the application, and after obtaining the opinion of the gas transmission system operator (Gaz-System), to be issued within 14 days. Failure to issue either the opinion or the decision within the indicated deadlines will be deemed as tacit consent. Additionally, the requirement to reserve capacity on interconnectors will be abolished, which is crucial to enable entities to use the purchased capacities maintained in case of crisis also for commercial purposes. New deadlines and rules for calculating the required amount of reserves have also been introduced (by June 30 of a given calendar year, to the level resulting from calculations made in accordance with section 3b or 3k. In the period from January 1 to June 29 of a given calendar year, the data for calculating the required amount of mandatory reserves are determined on the basis of the volume of crude oil or fuel imports, or fuel production, in the penultimate calendar year).

It should be emphasized that the original draft of the amending Act envisaged the complete repeal of Article 24a, due to its being challenged by the European Commission as violating the principles of non-discrimination and favoring companies maintaining gas reserves in Poland, which ultimately resulted in proceedings before the Court of Justice of the European Union. The adoption of the amendment in a version that significantly relaxes the current requirements for maintaining gas reserves outside the territory of Poland may therefore be an important argument for the European Commission to discontinue the proceedings before the Court.

With regard to procedures and plans in the event of disruptions in the supply of natural gas to the gas system or an unforeseen increase in natural gas consumption by customers, the amending Act introduces an obligation to update these procedures in order to ensure the continuity of natural gas supply (Article 49 of the Act on Mandatory Reserves). New rules have also been introduced concerning the preparation of restriction plans (Article 58 of the Act on Mandatory Reserves), which must be approved by the President of the Energy Regulatory Office (ERO), and operators are required to inform customers of the maximum gas consumption limits set for them within 30 days of obtaining such approval. The amending Act also expands the catalogue of entities to which the restrictions resulting from the plans do not apply (protected customers within the framework of solidarity support and system operators with respect to gas consumption for their own needs in natural gas storage facilities).

The newly added Article 54a of the Act on Mandatory Reserves introduces an obligation for gas and electricity system operators to cooperate in order to ensure the supply of gas and electricity during periods when restrictions are in force, in particular by: (i) agreeing on the conditions for network operation between the systems; (ii) ensuring the quality control and accuracy of measurements of natural gas flows between gas systems; (iii) providing, at the request of the gas transmission system operator or the combined gas system operator, the necessary information for the implementation of restrictions; (iv) determining daily and hourly quantities of natural gas that enable the operation of generation units using natural gas for electricity production.

Changes have also been introduced to definitions, as well as new rules regarding financial penalties for non-compliance with obligations related to the transmission and distribution of natural gas.

The amending act enters into force 7 days after its promulgation, with mandatory reserves of crude oil or fuels for the year 2025 required to be adjusted within 14 days of the act’s entry into force. Restriction plans approved to date will remain in force, while new plans should be prepared and submitted to the President of the ERO for approval by November 15, 2025, and procedures ensuring gas supply continuity must be developed by October 1, 2025. Additionally, according to the transitional provisions, existing implementing regulations will remain in force until new ones come into effect, but for no longer than 36 months from the act’s entry into force. From that moment, customers — except for households — will have 14 days to submit a declaration regarding their status as a protected customer.

On September 7, 2025, the Regulation of the Minister of Climate and Environment of May 30, 2025, on the detailed quality and dimensional characteristics of energy wood (Journal of Laws of 2025 poz. 746) enters into force. The regulation aims to improve the efficiency of wood raw material use, ensuring it is utilized in the longest possible (cascading) value chain before being used for energy purposes.

The regulation prohibits the processing of high-quality wood for the purpose of classifying it as energy wood for combustion. In other words, it will no longer be possible to burn wood that could be better used in industry, for example, in furniture production. The goal is to avoid burning high-quality wood that has more valuable applications.

The regulation sets out the following criteria for energy wood, understood as wood raw material that is not suitable for industrial use or whose use in sectors other than energy is limited:

• a lower diameter of less than 5 centimeters without bark or 7 centimeters with bark, regardless of wood length, or a length of up to 2 meters and an upper diameter equal to or less than 5 centimeters without bark or 7 centimeters with bark, and 
• the presence of at least one of the following wood defects:
  • unilateral curvature of at least 15 centimeters per linear meter of wood, 
  • multi-sided curvature of at least 10 centimeters per linear meter of wood, 
  • soft rot affecting at least 30% of the cross-sectional area of one of the wood’s ends.

In the case of by-products from wood processing, the following may be classified as energy wood:

• wood residues that cannot be classified, remaining after tree felling or raw material handling; 
• wood waste or residues from agricultural production; 
• by-products from wood processing not contaminated with unnatural substances;
• wood-based waste contaminated with unnatural substances; 
• raw material from energy crops, including short-rotation coppices; 
• raw material obtained as a result of remedial actions against invasive alien species.

In reference to energy wood held by energy producers before the Regulation enters into force, the provisions of the regulation do not apply.

The new regulations are expected to have a positive impact on the timber market by limiting logging solely for the needs of the professional energy sector, which will translate into better protection of forest ecosystems. The new rules will also improve the situation of wood industry enterprises by increasing the availability of high-quality wood and reducing competition from the energy sector. According to the expectations of the Ministry of Climate and Environment, this should contribute to the development of the wood industry and strengthen competition in this sector.

On July 29, 2025, the Act of June 25, 2025 amending the Geological and Mining Law (“GMLA”) entered into force, partially implementing into Polish law Regulation (EU) 2024/1787 of the European Parliament and of the Council of 13 June 2024 on the reduction of methane emissions in the energy sector and amending Regulation (EU) 2019/942 (the “Methane Regulation”).

The Methane Regulation entered into force on August 4, 2024, and sets out provisions aimed at reducing methane emissions in the energy sector in the EU. In particular, it obliges operators to monitor and report their methane emissions to the competent authorities, as well as to take all appropriate measures to limit and eliminate methane emissions in the course of their activities (including detection and repair of leaks, restrictions on venting and flaring, requirements for combustion efficiency, and reporting of events related to venting and flaring).

The provisions of the Methane Regulation apply directly in Member States without the need for implementation into national legal systems. Nevertheless, pursuant to Article 33, Member States are required to establish and notify the Commission, by August 5, 2025, on the rules regarding penalties applicable in the event of breaches of the Methane Regulation and to take the necessary measures to ensure their enforcement, including granting the appropriate powers to national competent authorities.

The amendment added paragraph 1a to Article 165 of the GMLA, specifying that the competent authority for monitoring and enforcing the Methane Regulation is the President of the Higher Mining Authority. The act entered into force on the day following its promulgation.

The amendment to the GMLA constitutes the first stage of the implementation procedure for the Methane Regulation. In the second stage, further amendments to national regulations are planned, aiming, among other things, to introduce sanctions for breaches of the Regulation and to regulate the rules for publishing a list of inactive and abandoned wells or closed mines.

At the beginning of August, public consultations concluded on the draft regulation on the technical conditions to be met by buildings and their location (list number 58), which includes new requirements regarding energy savings, thermal insulation, and the development of electromobility. The proposed changes are related to the implementation of EU regulations into Polish law, primarily concerning the energy performance of buildings (Directive (EU) 2024/1275 of the European Parliament and of the Council of 24 April 2024 on the energy performance of buildings).

The draft provides that buildings should be equipped with systems enabling the control and monitoring of energy consumption, which allows for optimization of usage and increased savings (e.g., §189, §375). It also specifies requirements for the thermal insulation of buildings — thermal insulation of pipelines, fittings, and equipment must comply with the conditions set out in the Polish Standard on thermal insulation and the provisions of the regulation, with the aim of reducing heat losses (§134(4)). Water heating system pipes must be protected against freezing and excessive heat loss. Additionally, the draft requires that construction plots provide for the installation of charging points and the necessary cabling along with duct infrastructure at parking spaces for cars and places for bicycles (§15(1)(2)).

The draft regulation also contains a number of provisions regarding the installation of electric energy storage systems based on battery storage (Chapter 12), including the mandatory requirement that buildings with battery energy storage be equipped with an emergency switch, accessible to rescue teams and protected against accidental power-off, which disconnects the system from all input and output circuits (§310); where applicable, detection devices enabling the detection of gas concentrations (§311); and a BMS (Battery Management System) that meets safety requirements for lithium batteries (§312). The regulation also specifies requirements for the storage enclosure (made of non-combustible materials, protected against mechanical damage, and ensuring adequate ventilation in rooms), conditions for installation inside and outside the building, as well as minimum distances between the energy storage system and the building or neighboring tanks: from 3 to 20 meters, depending on battery capacity.

The next stage of the legislative process is to submit the draft to the Committees for further review.

On July 29, 2025, a draft (regulation amending the regulation on the detailed scope and method of conducting energy efficiency audits and methods for calculating energy savings list number 1270) (the “Regulation”) was published on the website of the Government Legislation Centre.

The purpose of the amendment is to update the reference in §14(2) of the Regulation to the legal act specifying the values that enable the conversion of energy units contained in liquid fuels, in connection with the expiration of previous provisions concerning the methodology for calculating greenhouse gas emissions.

On July 1, 2025, the Regulation of the Minister of Climate and Environment of July 4, 2022, on the methodology for calculating greenhouse gas emissions, specifying their emission factors and the calorific value for individual fuels and the energy value of electricity (Journal of Laws 2025, item 1494), issued pursuant to Article 30h of the Act of August 25, 2006, on the system of monitoring and controlling the quality of fuels (Journal of Laws 2023, item 846), indicated in this provision, expired.

After the amendment, the values that enable the conversion of energy units contained in liquid fuels are specified by the Regulation of the Minister of Climate and Environment of April 18, 2025, on the energy value of individual biocomponents, liquid biofuels, recycled carbon liquid fuels, recycled carbon gaseous fuels, other renewable fuels, liquid fuels, and electricity from renewable energy sources (Journal of Laws 2025, item 545), issued pursuant to Article 23(3) of the Act of August 25, 2006, on biocomponents and liquid biofuels (consolidated text: Journal of Laws 2024, item 20, as amended).

The new regulations specify the energy values of biocomponents and biofuels—at levels similar or close to the previous indicators, taking into account changes in the Act on Biocomponents and Liquid Biofuels. Additionally, the new provisions allow for the completion of ongoing energy efficiency audits without the need to adapt them to the new guidelines, in order to avoid prolonging their preparation time and increasing costs.

The draft is currently at the consultation stage.

In the second half of May, a draft act amending the Act on Waste Electrical and Electronic Equipment and certain other acts was published in the register of legislative and program works of the Council of Ministers (UC97).

The draft act introduces changes to several key laws concerning waste management, including the Act on Waste Electrical and Electronic Equipment. The main objective of the act is to align Polish law with Directive (EU) 2024/884 of the European Parliament and of the Council of 13 March 2024¹, which amends previous provisions regarding waste electrical and electronic equipment. These changes are necessary in connection with the judgment of the Court of Justice of the EU, which declared part of the 2012 directive concerning photovoltaic panels invalid due to unjustified retroactive effect³.

To this end, the draft provides, among other things, for the modification of the cut-off dates defining what is considered "historical equipment." Under the current legal framework, the cut-off date determining the distribution of responsibilities for the management of waste electrical and electronic equipment and the achievement of minimum collection and recycling rates between the producer and the owner (user) of the equipment is August 13, 2005. After the amendment, the division of responsibilities will be maintained, but the change in cut-off dates will mean that the following will be considered "historical equipment":

1.     household equipment listed in Annex 6 to the Act of 11 September 2015 on Waste Electrical and Electronic Equipment (the “WEEE Act”) (including large and small household appliances, IT and telecommunications equipment, lighting equipment, toys, recreational and sports equipment) placed on the market up to August 13, 2005;

2.     photovoltaic panels intended for households, placed on the market before January 1, 2016;

3.     other household equipment not listed in Annex 6 to the WEEE Act, placed on the market before January 1, 2018.

As a result of the planned changes, users of equipment not intended for household use will be obliged to bear the costs associated with the disposal of photovoltaic panels placed on the market between August 13, 2005 and December 31, 2015, as well as other devices not included in Annex 6 to the WEEE Act, if they were placed on the market between August 13, 2005 and December 31, 2017. At the same time, this responsibility will be removed from entities that placed such equipment on the market. In addition, the draft provides for the maintenance of the obligation for producers to achieve minimum collection, recovery, and recycling rates, in accordance with EU and national law requirements, which is intended to support the stability of the WEEE management system.

Additionally, the draft aims to improve the transposition of Article 8a(5), third paragraph, of Directive (EU) 2018/851 of May 30, 2018, which concerns the institution of an authorized representative. Currently, the lack of such an institution in Polish law (apart from the WEEE Act) makes it difficult for entrepreneurs from outside Poland to appoint an entity responsible for fulfilling obligations related to placing products on the market. Thanks to the amendment, this provision will also be introduced into the Packaging Management Act and the Act on the Recycling of End-of-Life Vehicles, which will align the standards in these acts with those in the WEEE Act. Thanks to the institution of the authorized representative, distributors and importers will be released from direct obligations, but failure to appoint such a representative may result in penalties ranging from PLN 15,000 to PLN 500,000.

The draft does not include changes to the Act on Batteries and Accumulators, as this act is planned to be repealed in connection with the new EU regulation on batteries, which will apply directly. The introduction of the institution of an authorized representative in this area will be included in a future act transposing the new regulation.

¹ Directive (EU) 2024/884 of the European Parliament and of the Council of 13 March 2024 amending Directive 2012/19/EU on waste electrical and electronic equipment (WEEE) (Text with EEA relevance) (Journal of Laws of EU.L 884  of 19.3.2024, p. 884).

² Judgment of the Court of Justice of the European Union of January 25, 2022, in case file no. C-181/20.

Work is ongoing on the draft act amending the Act on the Functioning of Hard Coal Mining and the Personal Income Tax Act (UD167). The aim of the draft is to increase the efficiency of state budget subsidies allocated for the reduction of production capacity and grants related to the phasing out of mining activities. This concerns 12 underground mining facilities belonging to State Treasury companies that extract hard coal other than coking coal. These actions are in line with the schedule included in the 2021 social agreement regarding the transformation of the hard coal mining sector and the transformation processes of the Silesian Voivodeship. The exception is the KWK Bobrek-Piekary mining facility, which, due to geological and mining reasons, will cease operations earlier than planned.

The draft act supports the implementation of strategic government documents, such as the National Energy and Climate Plan until 2030 (NECP), which assumes a gradual departure from hard coal as an energy resource. The act also provides for benefits for employees of liquidated facilities, such as mining leave and severance payments, aimed at minimizing the negative social effects of the closure of the facilities.

A novelty in the draft is that the liquidation of facilities will be carried out by mining entrepreneurs themselves, rather than by Spółka Restrukturyzacji Kopalń S.A. Liquidation will be financed from the mining facility liquidation fund and other own resources of the entrepreneur, and after their exhaustion, from budget subsidies and other sources. The draft also introduces regulations aimed at eliminating situations where subsidies are spent on current operating costs instead of reducing production capacity.

The proposed changes also take into account the transfer of real estate belonging to mining enterprises for public purposes and stimulating economic activity. Some of the changes are of an organizational nature, removing unnecessary provisions. State aid provided for in the draft may be granted after obtaining the consent of the European Commission, in accordance with EU state aid regulations.

Currently, the draft act is being processed by the Standing Committee of the Council of Ministers.

On July 21, 2025, the assumptions for the draft of the new Act on Batteries and Waste Batteries (UC107) were published. The aim of the changes is to implement EU Regulation 2023/1542 and to comprehensively reform the battery market in Poland. The new act will replace the existing regulations and introduce a number of new obligations for producers, importers, and producer responsibility organizations (PROs). The key assumptions of the draft include, among others:

•       New obligations for producers

Every battery producer will be required to participate in a PRO system — by signing an agreement with a specialized organization responsible for the collection and recycling of batteries. The draft also provides for regular audits of these organizations as well as detailed rules for reporting and environmental reporting.

•       Fee and deposit system

The draft introduces two main fees: a product fee (for entities not meeting the required collection rates for portable batteries and LMT batteries) and a deposit (security) fee for the sale of large automotive batteries. The new financing system is intended to improve recycling and limit illegal waste storage.

•       Stricter environmental requirements

Businesses will be required, among other things, to report the carbon footprint of batteries, ensure the possibility of removing batteries from devices, and limit the content of hazardous substances. There will also be new obligations regarding battery passports and higher requirements for the storage and processing of waste batteries.

•       New supervisory authorities and sanctions

The act will designate a new supervisory authority and establish a system of administrative sanctions for non-compliance. An authority responsible for accrediting conformity assessment bodies will also be appointed.

The draft act is expected to be submitted to the Polish Parliament in the fourth quarter of 2025, and if the legislative process proceeds smoothly, the new regulations could enter into force as early as the turn of 2025/2026. It is worth noting that, thanks to the “Omnibus IV” package, some obligations (e.g., due diligence) have been postponed to 2027, giving businesses additional time to prepare procedures and implement changes.

The planned changes mean that production processes will need to be adapted, environmental reporting modernized, and new solutions introduced for the collection and recycling of batteries. Businesses should already begin preparations for the new requirements — such as selecting a PRO, analyzing costs, and preparing reporting systems and supplier verification procedures.

On June 17, 2025, the so-called deregulatory draft of the Construction Law (i.e., the draft act amending the Construction Law and certain other acts, print no. 1379), prepared by the Minister of Development and Technology, was submitted to the Polish Parliament. It is currently at the first reading stage in the Deregulation Committee and the Infrastructure Committee.

The proposed changes, which are significant for the energy sector, include an exemption from the requirement to obtain a building permit for construction works involving the installation of:

1. heat pumps,

2. free-standing solar collectors,

3. photovoltaic devices with an installed electrical capacity not exceeding 150 kW,

4. electricity storage systems with a nominal capacity not exceeding 20 kWh,

5. technical devices with masts on a building structure, used to generate electricity from wind energy with a capacity not exceeding that of a micro-installation (i.e., 50 kW) and a total height not exceeding 3 meters, except for structures located in areas covered by a public airport master plan.

However, these works will still be subject to the obligation to notify the architectural and construction administration authority pursuant to Article 30 of the Construction Law. For photovoltaic devices with an installed electrical capacity greater than 6.5 kW, there will be a requirement to obtain approval from a fire safety expert regarding the compliance of the project with fire protection requirements, as well as to notify the State Fire Service upon completion of the installation and commencement of use, providing the fire service with a plan of the photovoltaic installation for rescue teams.

An important change is also the introduction of the so-called “yellow card” institution, meaning that the investor receives a warning from the building supervision authority about the need to bring the construction into compliance with the building permit, project documentation, or legal regulations. According to the proposed amendment, the investor may receive such a warning before the initiation of formal proceedings under Articles 50-51 of the Construction Law.

The “yellow card” institution will primarily apply in cases of significant deviation from the project documentation. During the construction process, it sometimes happens that a change classified by the designer as insignificant is considered by the building supervision authority to be significant, requiring an amendment to the building permit. After the amendment enters into force, the investor will be able to receive a warning as a notice from the authority about the classification of the change and to remedy its effects. It seems reasonable that the investor should also be able, after receiving the warning, to apply for a substitute permit. Unfortunately, the amendment does not grant the investor such a right, which limits the benefits of the new institution.The amendment to the Construction Law is beneficial, with the “yellow card” institution being an important change.

(Nowelizacja prawa budowlanego korzystna, ważną zmianą instytucja "żółtej kartki" - KPMG (opinia) | Biznes PAP)

On June 26, 2025, the third draft act amending the Environmental Protection Law and certain other acts (UDER39) was published on the website of the Government Legislation Centre. The aim is to eliminate competence disputes and clarify the responsibilities of authorities regarding the issuance of integrated permits for installations storing more than 50 tons of hazardous waste, as well as to enable voivodeship marshals to carry out supervisory tasks over the correctness of confirming the recycling of packaging waste (facilitating the annulment of DPR/EDPR documents by voivodeship marshals).

The key change is another extension—this time until December 31, 2027—of the validity of permits for the collection or processing of waste. This is intended to prevent situations in which companies would have to cease operations due to lengthy proceedings for new decisions. After January 1, 2028, these decisions will expire by law, with no possibility of further extension. 

On July 9th of this year, the Act amending the Public Procurement Law and the Act on Concession Contracts for Construction Works or Services (hereinafter: the "Amending Act") was adopted. On August 4th of this year, it was submitted to the President for signature.

With regard to public procurement law, the introduced amendment primarily concerns the regulation of access to the EU public procurement market for so-called "contractors from third countries," i.e., contractors from countries with which the European Union (hereinafter: "EU") is not bound by any international agreement guaranteeing, on the basis of reciprocity and equality, access to the public procurement market.

The lack of specific regulations regarding the legal situation of these contractors in relation to the obligation to comply with the same requirements and standards as those imposed on contractors from EU countries created a risk of unequal competition in the public procurement market, and consequently limited the participation of EU contractors, including Polish ones, in the development of the EU economy.

Previous Legal Status

Under EU legislation, the issue of access to public procurement by entities from third countries is indirectly regulated by the Directive of the European Parliament and of the Council of 26 February 2014 on public procurement, i.e., Directive 2014/24/EU (hereinafter: the "Classic Directive")³ and Directive 2014/25/EU (hereinafter: the "Sectoral Directive")⁴. These legal acts require that certain non-EU contractors, i.e., entities from countries that are parties to the GPA Agreement, i.e., the World Trade Organization Government Procurement Agreement, are treated no less favorably than EU contractors.

However, the EU directives do not refer to contractors from third countries that are neither EU members nor parties to the GPA Agreement or bilateral agreements concluded by the EU. Moreover, the current provisions of Polish law, when defining a contractor, also do not refer to the issue of the contractor’s origin. It is often pointed out that for contractors from third countries, the Polish public procurement market is "open," meaning that access to public procurement is granted on an equal basis, regardless of the contractor’s origin.

Groundbreaking CJEU Case Law

The impetus for regulating, at the national level, more precisely the legal situation of contractors from third countries and their participation in public procurement in the European market were two judgments of the Court of Justice of the European Union (hereinafter: "CJEU" or "the Court"), i.e., the CJEU judgment of 22 October 2024 in case C-652/22⁵ and the CJEU judgment of 13 March 2025 in case C-266/22⁶.

In these judgments, the Court stated that setting the conditions under which contractors from third countries may participate in public procurement procedures at the EU level falls under the common commercial policy and is within the exclusive competence of the EU. The CJEU emphasized that contractors with whom the EU has not concluded any international agreement on mutual and equal access to the public procurement market are not guaranteed access to such a market. However, they may apply for public contracts in EU Member States, provided that such access is granted to them by the contracting authority. The same applies to procedures for the conclusion of concession contracts for construction works or services.

Key Changes in Public Procurement Law

Following the Court’s judgments, the Public Procurement Office issued its positions on the matter, which are to serve as an interpretation of the applicable provisions in light of the Court’s judgments⁷. Despite these positions, contracting authorities faced numerous doubts regarding the participation of third countries in public procurement procedures and issues concerning the right to appeal against contracting authorities’ decisions. As a result of these doubts, and in order to standardize the rules for dealing with contractors from third countries, the Amending Act was adopted, introducing two key provisions on this issue, i.e., Articles 16a and 16b.

Article 16a sets out the principle that, when awarding public contracts and organizing competitions, contractors from countries with which the EU has concluded the WTO Government Procurement Agreement or other international agreements guaranteeing reciprocal and equal access to the public procurement market, as well as construction works, supplies, and services originating from those countries, should be treated the same as contractors from the EU and works, supplies, and services originating from the EU. This imposes an obligation on contracting authorities to treat equally both EU contractors and contractors from third countries that are parties to the GPA or other international agreements concluded by the EU.

Article 16b, in turn, allows the contracting authority to admit to the procedure contractors from other third countries that are not covered by any international agreement guaranteeing reciprocal and equal access to the public procurement market, provided that this is specified in the procurement documents or contract notice. Additionally, with respect to these contractors, the contracting authority is entitled to set contract conditions less favorable than those provided for contractors who are EU members, parties to the GPA, or bilateral agreements concluded by the EU.

Furthermore, under the Amending Act, a new ground for rejecting an offer has been added, namely, the contracting authority rejects the offer of contractors from third countries not covered by the above-mentioned agreements if such contractors have not been admitted to apply for the contract or to conclude a concession contract.

It should also be noted that, by decision of the legislator, the legal remedies specified in Title IX of the Act of 11 September 2019 – Public Procurement Law⁸ do not apply to contractors, competition participants, or other entities from third countries that are not parties to international agreements. In this situation, an appeal to the National Appeals Chamber will not be available to such entities.

Moreover, in the case of contracts in the fields of defense and security, the contracting authority, with respect to contractors from other third countries not covered by the above-mentioned agreements, or works, supplies, and services originating from those countries, may also set contract conditions less favorable than those for contractors from EU, EEA countries, or countries with which the EU or Poland has concluded an international agreement concerning such contracts or works, supplies, and services from those countries.

Effects of the Introduced Changes

The provisions introduced into the Polish legal system, especially in the area of public procurement law, undoubtedly contribute to strengthening the transparency of conducted procedures. They indicate that it is the contracting authority who is entitled to determine the group of contractors who may apply for a contract. However, it should be noted that there are no specific criteria addressed to the contracting authority that would define the scope of its powers in shaping the group of contractors, which leaves some dissatisfaction.

³ Directive 2014/24/EU of the European Parliament and of the Council of 26 February 2014 on public procurement and repealing Directive 2004/18/EC

⁴ Directive 2014/25/EU of the European Parliament and of the Council of 26 February 2014 on procurement by entities operating in the water, energy, transport and postal services sectors and repealing Directive 2004/17/EC

⁵ Judgment of the CJEU of 22 October 2024 in case C-652/22 Kolin Inşaat Turizm Sanayi ve Ticaret AȘ v. Državna komisija za kontrolu postupaka javne nabave (ECLI:EU:C:2024:910).

⁶ Judgment of the CJEU of 13 March 2025 in case C-266/22 CRRC Qingdao Sifang et al. CO LTD and Astra Vagoane Călători S.A. v. Autoritatea pentru Reformă Feroviară and Alstom Ferroviaria S.P.A. (ECLI:EU:C:2025:178).

⁷ Judgment of the court (Grand Chamber) 22 October 2024 in Case C‑652/22,

⁸ The Act of 11 September 2019 – Public Procurement Law (Journal of Laws of 2024, item 1320, as amended)

On July 8, 2025, the European Commission announced the long-awaited Action Plan for the Chemical Industry, which is a key element of the EU’s strategy for sustainable development and innovation in the chemical sector. The new plan aims to strengthen the competitiveness of the industry, support the energy transition, decarbonization, and the development of the market for green products. An important aspect is also the simplification of regulations and the reduction of administrative burdens, while maintaining a high level of product safety.

The Plan provides, among other things, for the creation of an alliance of Member States and stakeholders to protect key production capacities in the chemical sector, as well as the coordination of investments and EU projects. Measures have also been announced to reduce energy costs, accelerate investment procedures, and support innovation, including through EU innovation hubs and increased research funding.

A key element of the Plan is the so-called Omnibus VI package, a set of legislative simplifications concerning, among others, the labeling of chemicals (CLP), cosmetic products, and fertilizers. The changes include greater flexibility in labeling, simplification of advertising and distance selling requirements, and the digitization of procedures in the chemical market. For the cosmetics sector, the plan foresees simplified procedures for the approval of new ingredients and reduced reporting obligations, while for fertilizer producers, some registration requirements will be lifted and further digitization will be implemented.

In the coming months, the Commission also plans to revise the REACH regulation and take further measures to limit PFAS emissions, while maintaining the possibility of their use in critical applications.

The new regulations are expected to bring real benefits to businesses—primarily by simplifying procedures, reducing costs and administrative burdens, and increasing the transparency of requirements. It is estimated that the implementation of these changes will allow the industry to save up to EUR 363 million annually, which will translate into increased competitiveness and operational efficiency for companies operating in the chemical, cosmetics, and related sectors.

European Chemicals Industry Action Plan - KPMG Poland

In June 2025, the European Commission proposed a significant amendment to two key directives regulating the transfer of defence products and public procurement in the security and defence sector (Directive 2009/43/EC and Directive 2009/81/EC). This proposal, as part of the "Defence Readiness Omnibus" package, aims to increase Europe's defence readiness by simplifying and harmonizing administrative procedures, speeding up the delivery of military equipment, and facilitating cooperation between Member States and the defence industry.

Changes to Directive 2009/43/EC – Transfers of Defence Products

The most important change is the move away from individual licenses for each product transfer in favor of general licenses, which will allow certified entities to freely transfer approved defence products between EU countries without the need to obtain consent each time. Control will be shifted to the post-delivery stage (ex post model), which is expected to significantly shorten the waiting time for cross-border deliveries (currently 6–7 weeks).

Additionally, administrative procedures for certified defence sector enterprises will be simplified—they will be subject to fewer formalities, and the scope of general and global licenses will be expanded. In practice, this means that certified companies will be able to carry out military equipment deliveries within the EU more quickly and efficiently, strengthening the resilience of the European supply chain and allowing for flexible redirection of resources where they are most needed.

The draft also provides for new exemptions from the licensing requirement for transfers related to projects financed by the European Defence Fund (EDF), structural industrial partnerships, EU/EDA agencies, and in situations requiring urgent crisis response. Member States will be able to issue additional national general licenses, and the European Commission will be empowered to adopt delegated acts on less significant elements of the licensing regime. Furthermore, information obligations will be simplified—ex ante documentation will be replaced by ex post (audit) control.

Changes to Directive 2009/81/EC – Defence Procurement

In the area of public procurement in the defence and security sector, the proposal provides for raising the EU thresholds—for services and supplies from €443,000 to €900,000, and for construction works from €5,538,000 to €7,000,000. Contracts below these values may be awarded more quickly, according to national procedures, which will reduce the number of tenders subject to time-consuming EU procedures and speed up urgent purchases.

There will also be the possibility to use negotiated procedures without publication in the case of contracts awarded as part of cooperation between Member States, as well as simplifications for innovation partnerships and procurement of innovative products or services resulting from research and development. The new regulations are intended to promote speed and flexibility of action, especially when purchasing modern technologies (e.g. drones or cybersecurity solutions), so that regulations do not block the implementation of innovation.

Additionally, the proposal provides for:

• Introduction of the classic open procedure and a fully electronic Dynamic Purchasing System (DPS) for defence contracts.
• A fast-track for purchasing results of parallel R&D projects, with the possibility of concluding contracts up to ten times the original research value.
• A temporary derogation (until the end of 2028) allowing the use of the negotiated procedure without publication for joint purchases carried out by at least three Member States.
• The possibility to join cooperative programs after the R&D phase without the need to repeat the tender procedure.
• Recognition of central purchasing bodies and extension of the maximum duration of framework agreements to 10 years for long-term platforms and service contracts.
• Harmonized rules for calculating the value of DPS and innovation partnerships and reduced reporting obligations to the Commission.

Impact on Industry and Contracting Authorities

For companies in the defence sector, the new regulations mean faster purchasing decisions, easier cross-border trade, and simplified procedures, especially for certified entities. Enterprises should ensure they obtain the appropriate certificates and adapt their procedures to the new ex post control and transfer recording rules. It will also be easier to create and participate in international industrial consortia.

Government institutions responsible for defence procurement will gain greater flexibility and new tools for faster and more effective contract execution, especially for lower-value or innovative technology contracts. Joint procurement and longer framework agreements will allow for better coordination and savings.

Legislative Process and Significance of the Changes

The European Commission’s proposal is currently the subject of legislative negotiations at the EU level and must be adopted by the European Parliament and the Council. Only after its adoption and transposition into national law will the simplified rules become binding. Market participants should monitor the legislative process and actively participate in consultations.

Zmiany w zakresie europejskiej obronności - KPMG Poland

The Ministry of Climate and Environment has clarified interpretative doubts arising from Article 48a(1) of the Act of 14 December 2012 on Waste (the Waste Act), which imposes an obligation on waste holders required to obtain a waste permit to establish security for claims.

The interpretation of this provision raised doubts because some authorities required security for claims both for the mass of waste received and for waste generated as a result of processing, while others required it only for waste received for collection or processing.

In its position of May 30, 2025, presented in response to parliamentary inquiry no. 9775 made by Mr. Dariusz Piontkowski, the Ministry of Climate and Environment indicated that the obligation to establish security for claims in the case of waste storage does not cover waste generated in a processing installation, provided that such waste is not intended for further processing at the same site. This is because the accumulation of waste generated in the processing process constitutes preliminary storage of waste by the producer (Article 3(5)(a) of the Waste Act). Such collection of waste is not subject to the requirement to obtain a permit for the collection or processing of waste (Article 45(1)(10) of the Waste Act). Meanwhile, the obligation to establish security for claims, as referred to in Article 48a of the Waste Act, applies only to waste holders required to obtain a permit for the collection or processing of waste, with the exception of landfill operators.

Therefore, if waste generated in the process of waste processing remains at the place of its generation and will not be subjected to further processing, this constitutes preliminary storage, which is not subject to the obligation to establish security for claims for such generated waste.

The Ministry is also considering publishing official legal explanations on its website to facilitate the application of these provisions by authorities and businesses.

Interpelacja nr 9775 - Sejm Rzeczypospolitej Polskie

In recent months, a new practice has been observed among the Voivodeship Inspectorates of Environmental (WIEP) Protection regarding the management of waste electrical and electronic equipment (WEEE), which may have a significant impact on the WEEE management sector.

The interpretative change presented, among others, by some Voivodeship Inspectorates of Environmental Protection consists in demanding that all fractions resulting from WEEE processing be transferred directly to final recyclers or recovery installations, bypassing specialized intermediaries. This new practice is inconsistent with the previously established, long-standing market practice, in which intermediaries—who collect various waste fractions and prepare them for final processing—play an important role in the WEEE processing chain.

In practice, individual fractions (e.g., cables, fluorescent lamps, plastics, electronic components) require further processing in specialized facilities before they become fully-fledged secondary raw materials that can be accepted by recyclers or steelworks. The new interpretation does not take into account the specifics of the market and the logistics of waste management, imposing a model that is, in practice, unworkable for the vast majority of companies operating in the WEEE processing sector. In everyday operations, this would mean, for example, the need to deliver steel scrap directly to steelworks. However, this is physically impossible, as steelworks, being huge enterprises, cooperate only with large suppliers and do not accept small quantities of scrap from individual processing plants. Even the largest WEEE installations are unable to offer quantities corresponding to the monthly demand of such recipients—their offered quantities constitute only a fraction of what steelworks or cement plants require. Intermediaries play a key role here, aggregating smaller batches of waste and ensuring appropriate logistics and compliance with the technological requirements of large industrial installations.

The introduction of the obligation to transfer all WEEE fractions directly to recyclers threatens to seriously paralyze the industry. For most processing plants, meeting these requirements is practically impossible for logistical and economic reasons, which may result in the disruption of the collection of used equipment from companies and consumers. Restricting legal waste management channels also increases the risk of the development of the grey market and the rise of illegal practices. Additionally, the new requirements mean higher operational costs for businesses, which may be passed on to end users.

The industry points out that the new interpretation is not supported by legal provisions — neither the Waste Act nor the Act on Waste Electrical and Electronic Equipment provides for the exclusive obligation to transfer waste directly from the processing plant to the recycler. The previous practice—considered correct and in accordance with the letter of the law — allowed for the transfer of fractions to specialized intermediaries responsible for the proper preparation of waste for further recovery and recycling.

The change in the approach of the WIEP regarding the management of WEEE waste fractions raises serious concerns in the recycling industry and among lawyers specializing in environmental law. It is necessary to call for a prompt clarification of the matter at the central level — both by the Chief Inspectorate of Environmental Protection and the Ministry of Climate and Environment, as well as possible appeals to the voivodeship inspectorates for a unified interpretation. In the interest of the industry and the stability of the waste management system, it is crucial to clarify doubts as soon as possible and ensure legal predictability.

“The basis for an entry in the land and mortgage register cannot be a copy of a document certified as a true copy by a notary.”

On July 11, 2025, the Supreme Court adopted a resolution stating that a copy of a document certified as a true copy by a notary cannot serve as the basis for an entry in the land and mortgage register. The resolution was issued in response to a legal question submitted to the Supreme Court by the District Court in Gliwice, which had doubts as to whether it was possible to delete a mortgage from the land and mortgage register solely on the basis of a notarial copy of the creditor’s consent to the deletion, when the original consent was not submitted to the court.

This may also have significant implications for transactions and contractual relations in the energy sector. It is worth noting that, in the case of RES (renewable energy sources) investments, securing rights to the land for the investment is often based, among other things, on lease agreements, which — to strengthen their effectiveness — can be disclosed in the land and mortgage register of the property. The requirement to present the original lease agreement when making an entry in the land and mortgage register leads to the need to prepare multiple original copies — including several for court purposes. In the case of older agreements, where the lessee holds only one original copy, submitting it to the court may deprive them of the ability to later document the terms of the agreement. Additionally, when applying for administrative decisions, authorities may also require the presentation of the original, and obtaining a copy from the land and mortgage register files is not always easy. The need to prepare a document with notarial certification of the signature in multiple original copies translates into additional costs—each original requiring notarial certification of the signature involves fees that can reach several hundred PLN per copy.

Najnowsze orzeczenia

Individual interpretation of 22 July 2025, No. 0114-KDIP2-2.4010.296.2025.1.AP

The interpretation concerned a company planning to join an energy cooperative in order to obtain more favourable conditions for the purchase/sale of energy from renewable sources. The applicant asked whether membership in the cooperative excludes the possibility to benefit from Estonian CIT.

The company pointed out that the energy cooperative is not explicitly mentioned in the CIT legislation as an entity whose shareholding excludes lump-sum taxation of income.

The director of the CIT agreed with the applicant's argumentation. The interpretation emphasised that under Article 28j(1)(5) of the CIT Act, the exclusion applies only to shares in companies. A cooperative is not a 'company' within the meaning of the Act, so membership in such a cooperative does not exclude the right to Estonian CIT.

In addition, the Director of the CIT assessed that the electricity payments made to the energy cooperative do not constitute so-called 'hidden profits' within the meaning of Article 28m of the CIT Act - they are related to actual deductible costs.

Key findings:

• Membership in an energy cooperative does not exclude the possibility of taxing the company's income with a lump sum tax (Estonian CIT)
• The cooperative is not listed in Article 28j(1)(5) of the CIT Act as an entity whose shareholding prevents it from benefiting from Estonian CIT
• The cooperative is not a "company" within the meaning of Article 4a(21) of the CIT Act
• Payment by the Company taxed with lump sum on the income of the companies - member of the energy cooperative for electricity to the energy cooperative does not constitute hidden profits referred to in Article 28m(1)(2) in connection with Article 28m(3) of the CIT Act, and therefore is not subject to taxation with lump sum on the income of the companies.

Individual interpretation of 1 August 2025, ref. 0111-KDIB3-3.4013.160.2025.1.AM

Individual interpretation of 1 August 2025, ref. 0111-KDIB3-3.4013.165.2025.1.PJ

Individual interpretation of 1 August 2025, ref. 0111-KDIB3-3.4013.157.2025.1.EP

Individual interpretation of 1 August 2025, ref. 0111-KDIB3-3.4013.161.2025.1.MPU

I. Commissioning of the installation prior to obtaining a licence

During the commissioning and testing period of the energy storage installation - which includes commissioning work, functional tests and trial operation - the Company does not yet hold an electricity storage licence. Pursuant to Article 9(1)(3) of the Excise Duty Act, only the consumption of electricity by an entity holding a concession is subject to taxation. At the pre-concession start-up stage, the company is not registered in the Central Register of Excise Entities nor does it meet the concession requirement set out in Article 32(1)(2)(a) of the Energy Law, so it does not acquire the status of an excise tax payer. Consequently, any energy taken for the purposes of commissioning and technological tests is not covered by the scope of excise taxation - these activities do not give rise to any tax obligation.

II. Operation of the storage facility after the concession has been obtained

Once an entity obtains a concession to store electricity, it becomes an excise taxpayer in accordance with Article 13(1)(2) of the Excise Duty Act. From that moment on, each kilowatt-hour of energy taken from the grid for storage, including that consumed in the course of daily operation, generates a tax obligation as of the date of consumption (Article 11(1)(3)). The authority stressed that the provision of Article 9(2), which excludes from taxation only technological losses, does not provide for an exemption for energy actually consumed by the storage facilities or for auxiliary energy used in operating the storage process.

III. Technological costs and auxiliary consumption

Also under consideration by the Director of National Fiscal Information was the situation of the use of energy in the operation of the warehouse to supply auxiliary equipment: control and automation systems, cooling units, back-up power systems, monitoring and security systems. The authority considered that this consumption, irrespective of its purpose (maintaining readiness, sustaining the parameters of the installation or operating auxiliary equipment), constituted 'consumption of electricity by a licensed entity' within the meaning of Article 9(1)(3) of the Excise Duty Act. The authority therefore ruled out the possibility of applying the exemption, as the excise legislation does not contain separate reliefs for auxiliary consumption in energy storage.

IV. Technological losses

The only category of energy which - despite the concession - is not subject to excise duty is the so-called technological losses. Pursuant to Article 9(2) of the Excise Duty Act, those quantities lost in the process of transmission, distribution or storage as a result of technical characteristics of the infrastructure are not considered energy consumption. However, the authority has imposed two key conditions:

1. keeping detailed technical records of losses during the storage cycle,
2. having operational records confirming the volume and cause of these losses.

It is only when both requirements are met - reliable recording of losses and transparent justification of their source - that actual technological losses can be exempted from excise duty. Otherwise, any losses are regarded as de facto taxable consumption.

Individual interpretation of 1 August 2025, ref. 0111-KDIB3-3.4013.162.2025.1.AW

The subject of the interpretation was the situation of a company selling electricity and entities with electricity storage facilities, holding a licence to store electricity within the meaning of the Energy Law. The question was whether the sale of electricity to a company holding a concession for the storage of electricity is subject to excise duty on the part of the Applicant.

The vendor company argued that the sale of energy to purchasers with end-buyer status is subject to excise duty, while sales of energy to purchasers without such status are not subject to excise duty. In the planned sales model, those to whom electricity will be sold hold (or will hold at the time of sale) concessions for the storage of electricity, and this status will be verified each time by the Company. This means that these companies will not have the status of final buyer within the meaning of Article 2(1)(19) of the Excise Duty Act of 6 December 2008 (i.e. Journal of Laws of 2025, item 126, as amended).

In view of the above, the sale of electricity by the Applicant to the above entities will not be subject to excise duty. Hence, according to the Applicant, in the described situation, it will not be obliged to calculate and pay excise duty.

The Director of the National Fiscal Information Chamber agreed with the Applicant, indicating that the Applicant, as an entity holding a concession, and therefore not having the status of a final buyer, plans to sell the electricity it purchases to entities which also hold a concession within the meaning of the Energy Law. Thus, these sales in the described future event will not constitute an activity subject to excise duty under Article 9 of the Excise Duty Act. Consequently, the planned sale of electricity by the Applicant to entities holding a concession for the storage of electricity will not constitute a sale to a final purchaser, and thus will not be subject to excise duty.

Individual interpretation of 4 August 2025, ref. 0114-KDIP2-2.4010.298.2025.1.SJ

The subject of the case was the tax qualification of the costs of purchasing electricity by an energy trading company in a situation where part of the megawatt hours purchased were not resold on the market - due to errors of the transmission system operator (DSO). The company argued that, despite the lack of direct revenue from the sale of this energy, it should be entitled to include these expenses as tax-deductible costs under CIT.

The applicant, which is a professional energy trader, indicated that the purchase of energy was aimed at further resale and generating revenue from sales on the wholesale market and to end users. However - due to unintentional errors of the DSO (e.g. misallocation of power, delays in the transmission of data) - part of the purchased energy could not be transferred to customers.

The tax authority (the Director of the KIS) confirmed in an interpretation that expenses incurred for the purchase of energy that was not ultimately resold (and did not generate revenue in the same period) may be recognised as a deductible cost - provided that the reasons for this situation are properly documented (e.g. OSD notes, operational correspondence). The director emphasised that it is crucial to demonstrate the economic purpose of the company's action (aiming to sell) and evidence of the impossibility of realising sales for reasons beyond the taxpayer's control.

The interpretation solves the hitherto disputed problem of the so-called 'empty turnover costs' in the energy industry and allows accounting for an operating loss in CIT if such a situation is actually documented.

Judgment of the Supreme Administrative Court of 19 March 2025, ref. I FSK 477/24

The Supreme Administrative Court issued an important ruling for practice, in which it determined that compensation paid to electricity and gas companies in connection with the application of maximum prices - in the legal state in force until 30 June 2024. - were not subject to value added tax. This judgment is of significant importance for entrepreneurs who paid VAT on the compensation they received only out of caution, influenced by the unfavourable position of the tax authorities.

Background of the case

Compensation for energy companies was introduced by special laws as an instrument to neutralise the negative financial effects of a reduction in the sale price of electricity and gas for consumers. The design of these benefits has from the outset raised doubts as to whether they should be qualified as grants, subsidies or other surcharges of a similar nature directly affecting the price - and thus subject to VAT under Article 29a(1) of the VAT Act.

The provisions of the special laws, as in force until 30 June 2024, clearly indicated that the compensation in question did not constitute grants, subventions or other subsidies of a similar nature and were not subject to VAT. The situation changed only from 1 July 2024, when the legislator explicitly indicated the obligation to add VAT to the compensation amounts.

Position of the tax authorities

Despite the above wording of the legislation, the tax authorities assumed that the compensations should be treated as surcharges related to the price of energy, which consequently led to their inclusion in the VAT tax base. In doing so, it was argued that the lack of an exemption in the VAT Act prevents the application of the regulations of special laws in respect of this tax.

Settlement by administrative courts

The case which was the subject of the NSA's decision concerned an individual interpretation issued by the Director of the National Fiscal Information. Earlier, the Provincial Administrative Court in Warsaw had overruled the interpretation, deeming the position of the tax authority to be incorrect. The cassation appeal of the authority was submitted to the Supreme Administrative Court.

The NSA fully shared the argumentation of the WSA and dismissed the cassation complaint of the authority. In a verbal justification, the court indicated that:

• Compensations received before 1 July 2024 did not fall into the category of benefits defined in Article 29a(1) of the VAT Act.
• They were compensatory in nature, paid post factum on the basis of statutory provisions and not an element in the calculation of the price of a supply of goods or services.
• The express exclusion of VAT taxation in special laws is of a universal nature and is binding on the tax authorities.
• The absence of an analogous provision in the VAT Act does not entitle the authorities to disregard the applicable special regulation.

Significance of the judgment for practice

The NSA's ruling sets an important direction of interpretation, emphasising the precedence of special provisions over the interpretation practice of the authorities. It is a clear signal that, in the legal state prior to 1 July 2024, entrepreneurs who have taxed VAT compensation 'for security' may consider filing a request for a declaration of overpayment and obtaining a refund.

At the same time, it is worth remembering that as of 1 July 2024, the legislator has made it mandatory to include VAT in the compensation amounts, which means a complete change in the tax regime for these benefits.

Judgment of the WSA in Łódź of 8 July 2025, ref. I SA/Łd 274/25

The court issued an important ruling for the e-mobility industry, in which it determined that an electric vehicle (EV) charging station constitutes a construction within the meaning of the Construction Law and is fully subject to property tax. The ruling is of key importance for investors and station operators, undermining the previous practice of limiting the tax base only to the foundation or civil part of the device.

Background of the case

An entrepreneur operating a network of EV charging stations challenged the decision of the tax authority, which held that the entire technical value of the station - including the pole, wiring, switchgear, control equipment - should be treated as a structure and subject to property tax. The applicant argued that only the building part (foundation) should be subject to the tax, while the rest of the installation should be considered technical equipment not subject to the tax.

An interesting aspect of the case is its procedural course. In the original ruling (I SA/Łd 292/24), the Wojewódzki Sąd Administracyjny w Łodzi assumed that a charging station for electric vehicles is not subject to real estate tax, subject to the exclusion of infrastructural elements such as the foundation or analogous surface. However, this decision, favourable from the point of view of the taxpayer, was challenged by the tax authority. The Supreme Administrative Court, in its ruling III FSK 1300/24, held that the WSA in Łódź did not correctly analyse the qualification of the charging station as a free-standing technical device and therefore the ruling was reversed.

Tax authorities' position

The tax authority referred to the literal wording of the provisions of the construction law and technical interpretations, considering the whole station as a construction. It emphasised that modern EV charging stations are integrated structures, meeting the definition of a structure both as to function and technical structure.

Settlement of administrative courts

The WSA in Łódź shared the position of the authority and dismissed the entrepreneur's complaint. In a clear justification, the court indicated that:

• The entire EV charging station meets the definition of a structure within the meaning of the construction law.
• There are no grounds for separating only the foundation part from taxation, as the station as a whole performs the functions of a technical building to be subject to real estate tax.
• The approach limiting taxation only to the foundations is erroneous and has no legal justification.

Significance of the judgment for practice

The amendment to the Act on Local Taxes and Fees of 1 January 2025 introduced to Article 1a(1)(2) of the Act on Local Taxes and Fees of 12 January 1991 (i.e. Journal of Laws of 2025, item 707) a closed catalogue of constructions, enumerating in Annex 4 the facilities subject to real estate tax. Electric vehicle charging stations were not listed therein, which, following the intention of the legislator, left their tax status unclear.

At the same time, the legislator provided for the taxation of 'construction facilities', which prompted some tax authorities to classify charging stations in this category. The July judgment of the WSA in Łódź (I SA/Łd 274/25) confirms that the jurisprudence on this issue is divided. On the one hand, there is a doctrinal view that in the case of an independently sited station - as a technical device - only its construction part (foundation and support structure) is subject to taxation, while on the other hand there is no shortage of rulings recognising the entire installation as a construction, subject to full taxation on its technical value. This divergence of interpretation, compounded by the lack of legislative changes during the recent reform (despite the reported proposal to explicitly exclude non-structural elements of the station), means that the tax assessment of each individual investment requires detailed legal analysis. Taxpayers and advisers should therefore develop a precise justification for the qualification of the construction parts of stations, taking into account both the definitions in the Local Taxes and Fees Act of 12 January 1991 and the provisions of the Construction Law and the jurisprudence of the administrative courts to date.