Business Owners and Farmers Must Submit Declarations to Avoid Drastic Electricity Price Hikes

The mechanism protecting electricity consumers in Poland imposes an obligation on selected groups of entities to actively confirm their status as eligible customers. This group primarily includes micro, small, and medium-sized enterprises, as well as public utility institutions and individual farmers. The document takes the form of a declaration confirming that the conditions for being billed at the maximum price are met. Failure to fulfill this obligation by June 30, 2026, results in an automatic switch to market rates, which the media refer to as „horror bills”. Energy sellers are not authorized to independently extend the protection without a written declaration from the end consumer, making the upcoming date an unpassable boundary for maintaining the financial stability of many companies. The agricultural sector, including owners of cold storage facilities and farms, is particularly vulnerable to the consequences of missing this deadline, as the nature of production activity generates enormous power demand. The lack of a proper entry in the systems of trading companies can lead to a loss of farm profitability within a short time. Parallel to the business protection system, the state implements support programs for those most in need of medical assistance. PFRON has announced a call for applications for a PLN 600 subsidy towards bills for people using oxygen concentrators or respirators. In this case, the procedure is significantly less time-restrictive, as applications can be submitted until December 31, 2026. The electricity price freeze mechanisms in Poland are part of a broad protective strategy introduced after 2022 in response to the energy crisis triggered by Russia's aggression against Ukraine and the resulting destabilization of commodity markets. Experts emphasize that declarations can be submitted in two ways: traditionally by post or electronically, provided a qualified signature or trusted profile is used. The sharp increase in energy prices affecting unprepared entities results not only from the cost of purchasing raw materials but also from high prices of CO2 emission allowances. For the SME sector, maintaining preferential rates is crucial for preserving financial liquidity. The Ministry of Climate and Environment appeals for checking one's contracts and consumer status to avoid mass submission of documents in the last week of June, which could paralyze the customer service offices of the largest energy companies in the country.