In our latest post of the series on new energy requirements introduced by Lex RES III, we focus on a range of changes and new obligations for electricity and gas traders. These measures respond to the collapse of several electricity and gas (“commodity”) traders at the end of 2021 and the beginning of 2022, while simultaneously enhancing customer protection:
- New applicants for commodity trading licences (“trading licence”) must now provide the Energy Regulatory Office (ERO), among other things, with proof of higher education qualifications and three years of industry experience (either the applicant or its responsible representative).
- The ERO will not grant a trading licence to the applicant who has failed its business in the energy sector in the past five years (e.g., it ended bankrupt, the ERO revoked its licence, or was a member of a statutory body of a company whose licence was revoked by the ERO).
- Traders are now obliged to publish their price lists and all contractual documentation for commodity supplies, including any changes, on their websites.
- Electricity traders must refrain from discriminatory practices or limitations against electricity sharing by their customers (addressing the practice of some traders who prohibit or limit their customers from electricity sharing in contractual documentation or penalize them in supply prices).
- Traders must establish the so-called ‘security index value’ (details specified in an ERO decree), i.e., the percentage of the commodity quantity that the trader has contractually secured for supplies to its customers, report it to the ERO, and publish it on its website (responding to situations where historically some traders did not have secured commodity quantities corresponding to their contractual obligations to their customers).
- Failure to provide commodity supply billing or resolve complaints within statutory time limits in relation to consumers will now be penalized.
- Traders must provide customers with confirmation of the guarantees of origin of the commodity applied to the supply of the commodity.
- Traders must refrain from practices that would limit or disadvantage customers regarding aggregation or flexibility provided by the latter.
- Selected electricity traders are obliged to offer electricity supplies at both fixed and variable prices and enter into respective contracts with customers upon their request.
- Traders must provide the ERO with information about their commodity supply offers for the purpose of comparison in the comparator operated on the ERO website.
Traders may face penalties of up to CZK 50 million or 1% of their net turnover achieved for the last completed accounting period for non-compliance with the new obligations.
For assistance in implementing new regulatory requirements into your business models and contractual documentation (including general terms and conditions), feel free to contact our specialised energy law team. We will be happy to assist you.
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