Distribution systems

3 dni temu

In the first half of 2024, the Polish Power Grids expect to issue Connection Conditions for distribution systems for 258 applications with a total capacity of 69,391 MW.

In 2007, there was a division of energy companies that supplied electrical energy to end consumers into two independent entities:

An electrical energy trading company (seller), which is a business that trades electrical energy on the electrical energy market.

Participants in this market include:

electrical energy producers,
trading companies,
end consumers,
entities responsible for organizing trade and settlements.

Trading companies offer electrical energy to consumers, competing with each other on price and contract terms. In this area, there is the possibility of freely choosing a supplier on competitive terms.

Distribution System Operator (DSO) is a network company responsible for the technical infrastructure (distribution system) used for the physical flow and distribution of electrical energy.

This infrastructure includes, among others:

overhead and underground lines,
power substations
connections,
metering systems.

DSO is a natural monopoly because, due to the physical connection of the consumer’s installation to the network, there are no technical possibilities to change your DSO.

Explanation of abbreviations:

In simple terms, a distribution system is a designated electrical power network managed by DSO. DSO must hold a license for energy distribution, and its operations are regulated by the Energy Regulatory Office (ERO).

DSOp – Distribution System Operator, whose distribution network is directly connected to the Transmission System Operator’s (TSO) network. An example of a DSOp is TAURON Dystrybucja S.A.DSOn – Distribution System Operator whose distribution network has no direct connection with the TSO’s transmission grid.

Niezależność Operatora Systemu Dystrybucyjnego	Independence of the Distribution System Operator
Spółka Obrotu	Trading Company
oferuje towar	offers goods
oferuje usługę kompleksową	offers comprehensive service
w zakresie dystrybucji w imieniu i na rzecz OSD	within the scope of distribution for and on behalf of DSO
Operator Systemu Dystrybucyjnego	Distribution System Operator
oferuje dostawę – usługę dystrybucji	offers delivery – distribution service
zakup I sprzedaż energii elektrycznej	purchase and sale of electrical energy
wystawianie faktur, inkaso, windykacja za energię elektryczną	issuing invoices, collection, debt recovery for electrical energy
obsługa klientów obrotu	customer service for trading
zakup i sprzedaż energii elektrycznej w ramach usługi kompleksowej	purchase and sale of electrical energy as part of a comprehensive service
świadczenie usługi kompleksowej, w zakresie dystrybucji – w imieniu i na rzecz OSD	provision of a comprehensive service, in the area of distribution – for and on behalf of DSO
wystawianie faktur, inkaso, windykacja za usługę kompleksową	issuing invoices, collection, debt recovery for the comprehensive service
obsługa klientów kompleksowych	comprehensive customers service
Sprzedaż energii dla gospodarstw domowych – taryfa G	Energy sales for households – tariff G
zarządzanie majątkiem sieciowym, jego eksploatację, konserwację i remonty	management of network assets, their operation, maintenance, and repairs
zarządzane ruchem sieci,	network traffic management,
rozwój sieci i inwestycje, przyłączanie do sieci,	network development and projects, network connections,
obsługa i odczyty układów pomiarowych	reading and measurement of metering systems
obsługa umów przyłączeniowych i usług dystrybucji	handling of connection agreements and distribution services

Division of distribution systems:

DSOp after connecting to the TSO network and DSOn after connecting to the DSOp network, issue connection conditions for recipients and sources within their connection capacity.

Within the existing distribution system, a so-called Closed Distribution System (CDS) may be established (since 2021 in energy law), meaning a designated area of the distribution network within an industrial plant, commercial facility, or place of providing shared services.

The purpose of introducing closed distribution systems was to enable entities operating energy assets to independently manage the network within their business activities. This involves certain regulatory concessions compared to traditional operator activities, but still necessitates fulfilling a range of obligations.

Sources:

If you have any questions or concerns regarding the above matter, please do not hesitate to contact our experts:

Piotr Włodawiec: wlodawiec[at]prokurent.com

Łukasz Moczydłowski: moczydlowski [at] prokurent.com

Paweł Wróblewski: 'p.wroblewski [at] elbudbis.pl

Authors:

Piotr Włodawiec – Attorney-at-law / Senior Partner

Łukasz Moczydłowski – Attorney-at-law / Senior Partner

Paweł Wróblewski – CEO ElbudBis

Relkonds

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