Why will many companies not have a chance to lower the electricity price? The reason may be the notice period of the applicable contract.



Arkadiusz Somnicki

Member of the Board

High electricity prices have increased the interest of entrepreneurs in purchasing electricity from alternative sellers. Those who postpone the decision to purchase energy for the second half of the year may encounter an unpleasant surprise - they will not be able to take advantage of attractive price offers. Why? There are still thousands of energy purchase agreements with a multi-month notice period, often with effect at the end of the year. The consequence will be the need to purchase electricity from the current seller for the next 12 months..

This situation applies in particular to companies that have never changed their energy supplier and as a result have not changed the energy purchase agreement for many years (data of the Energy Regulatory Office indicate that from 2007 to 10.2021 only 0.2 million customers from tariff groups A , B and C changed the seller - approx. 8% of Polish enterprises). It should be borne in mind that provisions on several-month notice periods with effect at the end of the year may also be found in newly signed contracts, concluded e.g. when changing the supplier.

For example, a company with a 6-month notice period in the current energy purchase agreement with effect at the end of the year, which receives an attractive offer for 2023 from a competitive seller in July, will not be able to take advantage of it. In this case, the company will have to buy energy for 2023 from the current seller (unless it pays him a penalty for breaking the existing contract) and the price that the company will see on invoices next year will depend only on his will. The current market situation is so dynamic that the price received from the current seller and the price obtainable on the competitive market may vary by several dozen, and in extreme cases even several hundred percent. The contract for 2024 will be another opportunity to purchase energy at a favorable price.

The sellers' motivation to propose attractive prices is the greater, the more they are aware that they can be easily changed to others..

We encourage entrepreneurs to check the provisions regarding the notice period in their contracts as soon as possible. If this period is several months, the company should already contact the current electricity supplier in order to change the contractual terms. If he does not want to establish new terms, it is worth thinking about terminating the contract, which is not synonymous with the end of cooperation. Such a maneuver gives entrepreneurs the opportunity to choose a new seller for the next year. It often turns out that the current seller, leaning against the wall, submits an offer to sign a new contract, but on favorable terms.

Zobacz również

Więcej aktualności


About cheap energy for 2023, or what to do to take advantage of preferential prices

The guaranteed maximum sale price will apply in the period from December 1, 2022 to the end of 2023. Some companies will also be able to benefit from compensation for energy purchases in the previous months of 2022. These are companies that signed a sales contract for 2022 after February 24, 2022 or those that signed a contract for 2022 earlier, but this contract allowed the purchase based on the so-called stock exchange model, under which at least one tranche of energy purchase for 2022 was made after February 24, 2022.

In the event that the entrepreneur is late with submitting the declaration by November 30, 2022, and provides the seller with the document at a later date, the purchase of energy at a preferential price will be made from the next month (e.g. entrepreneurs who submit a declaration in December may count on the application of the maximum price in settlements from January 2023).

Czytaj dalej


cPPA contracts – an opportunity for cheap energy from renewable energy sources

The cPPA (Corporate Power Purchase Agreements) contracts entered the Polish power industry's salons just a few years ago. The first ones willing to take advantage of the contracts were market leaders who created the trend of co-responsibility for the environment, as well as entrepreneurs for whom it was important to guarantee a fixed purchase price for at least a few consecutive years. These contracts are usually concluded for a period of 5-10 years, which results from the requirements set by RES producers (by concluding such contracts, RES producers allow financing of the sources being built, mainly photovoltaic and wind farms).

Czytaj dalej


Energy prices for 2023. About the risk of purchasing energy at SPOT market prices

How is it with these energy prices? Buy energy for 2023 now or wait until autumn to buy energy with the hope of lowering prices? Make a purchase at a predetermined price or choose a pricing mechanism based on stock indices? Should you decide to buy energy based on long-term cPPA contracts or decide to invest in your own energy generation sources?

The answer to all questions is: it depends. On a macro scale, it depends on geopolitics. Prices of coal, gas, emission allowances. The situation on European markets and the increasing uncertainty of raw material supplies. EU or local political decisions accelerating or inhibiting the development of the energy sector. On a micro scale, it depends on the situation of a specific company. Its business profile, current and expected financial situation, market awareness as well as the risk appetite of its management.

Czytaj dalej