Observations on reductions from a capacity mechanism levy for energy intensive users in Poland

After putting in place a capacity mechanism, Poland plans to reduce the amount of the capacity levy that some energy-intensive industries would have to pay for financing the scheme. ClientEarth has made observations to the Commission that such reductions should be carefully assessed in light of State aid rules, as they directly affect the financing of the capacity market, dis-incentivise energy intensive users from reducing their consumption during peak hours and will increase the price of energy for other consumers, including households and small businesses. We recommend that the Commission does not authorise the scheme, as it would create a negative precedent at a time where reduction of energy consumption is critically needed.