EC urges Poland to change end-user price regulation schemes.

By bne IntelliNews April 7, 2011
The European Commission has formally requested Poland - alongside Italy and Romania - to bring their national legislation on regulated end-user energy prices in line with EU rules, the Commission has announced. EU law on the internal energy market foresees that prices are set primarily by supply and demand. "End-user prices set by state intervention put obstacles to new market entrants and therefore deprive consumers and companies of their right to choose the best service on the market," it argued. If the member states do not comply with their legal obligations within two months, the Commission may refer them to the Court of Justice. The EC notes that the Polish energy law requires energy enterprises to specify the end-user prices for gas and obtain a prior approval from the national regulatory authority. Also new entrants have to obtain this approval before entering the market. In addition, the measure does not sufficiently differentiate between different customer groups and the scope is too broad. tom

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