A Game Changer in Our “Direct Line” Saga?

The long-running saga of the direct line continues. After years of seemingly endless discussions on reviving the dormant provisions of the Energy Law, a glimmer of hope appeared in September 2023. A legislative amendment was introduced allowing renewable energy installations (RES) to be connected directly to consumers via direct line/private wire. There was cautious optimism.

Unfortunately, that optimism proved short-lived. The introduction of the so-called «solidarity charge» on electricity delivered through a direct line effectively discouraged interest. To illustrate: as of early June 2025 — more than 20 months after the amended rules took effect — only three direct lines had been registered in Poland, with a combined length of just 109 meters. Sounds like a joke, but sadly, it isn’t. For a deeper dive into the reasons behind this failure, I invite you to read my earlier article: https://tundraadvisory.com/en/direct-line-a-forgotten-provision/.

An Unexpected Twist

In late May 2025, the draft UDER 35 Act was published as part of a broader deregulation package. And it might just be the game changer in our ongoing direct line story.

Put simply, the draft legislation proposes that electricity supplied via a direct line would no longer be subject to the solidarity charge. Given the long history of resistance — particularly from the power sector — this shift in attitude is hard to believe.

A Promising Start

So, what steps must a company take if it wants to source electricity via a direct line?

The draft law requires the company to apply to the Minister for a promise to establish a Sustainable Industrial Development Zone. The key condition mentioned: the planned construction of a direct line.

But what comes next? The draft offers no clarity on the criteria the Minister will use to issue such a promise. It refers vaguely to Article 12a(5) of the Act on the Principles of Development Policy, which governs the designation of strategic intervention areas defined in the country’s medium-term development strategy. Reading the provisions of the draft Act literally, one may get the impression that any company will be entitled to submit an application and that there is no requirement to be located within the area of strategic intervention — which is likely not the case.

Growing Doubts

According to the explanatory note attached to the draft law, the aim is to support companies in southern Poland, where access to cheap energy is limited, while RES investments are mostly concentrated in the north. It also refers to support for SMEs and smaller towns aiming to attract industry. Based on this, strategic intervention areas could be defined both geographically and by business profile.

The problem? That medium-term development strategy doesn’t exist yet. As of May 2025, the Ministry of Funds and Regional Policy promises it will be finalized by mid-2025.

Or Perhaps a Promising End?

We’ll need to closely monitor how the strategy is formulated. Let’s hope it’s flexible enough to allow a wide range of companies to apply for the establishment of Sustainable Industrial Development Zones. Ministerial declarations on how the new regulation will be interpreted also be key — because legislation is one thing, and how it’s applied in practice is often quite another.

The coming months should bring some clarity. Hopefully, decisions will be made in the spirit of common sense. Still, having taken part in discussions on this topic over the years, I’m not ready to be a blind optimist just yet.

Post scriptum

A few days ago, the Ministry of Development and Technology announced its intention to introduce a guaranteed low price of PLN 250/MWh for 5 years, in the form of a contract for difference for selected, energy-intensive industries. Obtaining such a contract will depend on actions aimed at increasing purchases/obtaining energy from renewable energy sources. The proposed regulations regarding the direct line fit perfectly into this proposal for a contract for difference.

Grzegorz Skarżyński
Partner
Tundra Advisory