Changing energy supplier - how should it be done legally? Guidebook

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Why should you consider switching energy retailers?

We all pay our electricity bills, but in an era of ever-increasing energy prices, these charges can prove particularly burdensome. It is worth knowing that everyone - consumers and companies alike - has the right to choose their electricity supplier. This stems from the TPA (Third-Party Access) principle introduced in 2009. The principle guarantees all consumers the possibility of choosing a different electricity supplier than the one currently providing the service.
Such a change can be made on one's own by concluding a contract with the new seller and terminating the contract with the previous seller. The second solution is to grant a power of attorney to the previous seller, who will do it for you.

Although each electricity retailer is subject to the supervision of the President of the Energy Regulatory Office, individual price lists may differ. If you feel that your company is paying too high a bill, you can easily switch to a different seller. This is particularly important for companies with particularly high electricity demands, such as manufacturing or food processing companies. Furthermore, in the B2B sector, the President of the ERO does not approve tariffs in the same way as for consumers. This means that there is a considerable risk of overpaying for electricity. While maximum prices are currently in place, they are transitional.
The concept of electricity supplier should not be equated with electricity seller. The Energy Law1 uses the term energy seller. However, these terms are often equated with each other and both have entered the vernacular. Technically, the supplier is the Distribution System Operator. There are only a few such companies and they are assigned to specific regions in Poland.

Step by step: switching energy supplier legally

Changing electricity supplier itself is not particularly complicated and you will complete it in just a few steps:

• the first step is to terminate the contract with your existing supplier. The new contract comes into force on the expiry date of the previous one so that the continuity of energy supply is maintained. In the case of the first change, the comprehensive contract is terminated - not only the terms of energy sale, but also the distribution service contract;
• the second step is to conclude an energy distribution service agreement and provide information on the selection of a new seller;
• the third step is to replace the meters, if necessary and dictated by the tariff change. For companies, there are three tariffs - A, B and C - along with individual sub-types (e.g. A21, A22 and A23).

The previous electricity retailer provides the new retailer with information on the status of the meters. On this basis, a settlement is made and you may receive an overpayment (or underpayment). The difference should be settled within a maximum of 42 days from the date of the change.
Importantly, electricity consumers are not burdened with the costs of meter replacement. As a rule, these are borne by the operator, OSD, who adjusts the metering and billing systems to the technical requirements set out in the IRiESP and IRiESD documents. The cost of replacing the meter is borne by the customer if they are classified in connection group II or III.
If you do not want to take the time to go through all the formalities yourself, you can give your existing energy supplier a power of attorney to act on your behalf.

Changing electricity supplier - what documents do I need?

If you have decided to grant a power of attorney, in fact most of the formalities happen automatically. The application you submit is formally verified by the DSO. After assessment, information about the approval of the application is sent to the customer and the new seller. If the application is rejected (e.g. due to formal deficiencies or the lack of a general agreement with a given seller), the procedure is interrupted and has to be repeated.
If you want to carry out the whole procedure yourself, there will of course be more formalities. On your own, you have to terminate the previous contract and conclude another one.

Comparing offers - how do I choose the best energy retailer?

If you have found a new offer that seems interesting, make sure you analyse all its parameters. Pay particular attention to:

• the duration of the contract and the notice period;
• contractual penalties for early termination;
• the charges for the different tariffs;
• the amount of the retail charge;
• additional services offered by the supplier, such as a fixed price guarantee.

You may find that by changing the tariff and its type, you will save a lot. In the case of business tariffs, it is worth negotiating. Your existing supplier may be able to offer you a slightly lower price per kilowatt hour if you submit offers from competitors.
An attractive alternative to switching energy retailers may be to enter into a PPA, for example with a photovoltaic electricity supplier. Renewable energy sources are often a more stable solution than access to the classic electricity grid.

Change of electricity seller regulations - what do you need to know?

The possibility of changing electricity seller is provided for in Article 4j of the Energy Law. It is quite an extensive regulation, so we will only highlight its most relevant parts.
First and foremost, you have the right to switch, even if your existing seller claims otherwise. At the same time, the company selling electricity must ensure transparency. The terms and conditions for offering energy supply must be clear, transparent and ensure equal treatment of customers.
If you terminate a contract concluded for an indefinite period, you always do so free of charge. If you terminate a contract with a fixed term, you must expect contractual penalties, but only those that are explicit in the contract. The seller may not apply any hidden sanctions.

When terminating your contract, you have the right to indicate the day on which the electricity will stop being supplied and the contract will be terminated. If you do not do this, the default will be the last day of the month following the month in which you gave notice. For example, giving notice on 10 June will cause the contract to terminate on 31 July.
We draw your particular attention to Article 4j(6) of the Energy Law, which will change as of 1 July 2024. In its new version, the regulation is supposed to allow the change of electricity seller no later than seven days from the date of informing the relevant operator of the conclusion of a sales agreement or a comprehensive agreement. In practice, this means that, as a company, you will be able to adapt more flexibly to market conditions and the current economic climate.

Time to switch - how long does it take to switch energy retailers?

In theory, switching energy retailers should go quickly and smoothly. The Energy Law states that in the case of the first change of energy seller, the deadline should not exceed 30 days. Subsequent changes should be within 14 days. What about practice?
Unfortunately, in reality, it turns out that switching can take twice as long. This is the case even in situations where the energy consumer gives a power of attorney, so most of the actions are carried out, as it were, automatically.
Need help changing your electricity supplier? Contact us, we will prepare a personalised offer for you.

 

1. https://isap.sejm.gov.pl/isap.nsf/DocDetails.xsp?id=wdu19970540348 [dostęp: 19.03.2024 r.]