Concession vs. obligation worth remembering

It is worth remembering, however, that obtaining a license is often not the end of the obligations related to it. Many entrepreneurs do not read the concession document, which may later cause some problems.

For example, in accordance with Art. 56 sec. 1 point 12 of the Energy Law Act, anyone who fails to comply with the obligations arising from the concession is subject to a financial penalty.

Meanwhile, a provision similar to the following can be found in some licenses related to fuel and energy trading:

“The concessionaire is obliged, within 14 days from the occurrence of significant changes in the activities covered by this concession (in particular those relating to the extension or limitation of the scope of this activity, data of persons authorized or members of the body authorized to represent the concessionaire), notify in writing to the President of the Energy Regulatory Office about these changes, at the same time submitting – in the event that this change causes the need to change the provisions of this license – an application for its change”.

This means that the ERO President should be informed not only of changes in the body authorized to represent the entity, but also of the appointment of a proxy. The establishment of proxies is a very common activity, so special attention should be paid to the above obligation.

Failure to submit relevant information is subject to a fine, the amount of which in section 1 points 7, 7a and 12, may not be lower than PLN 2,000 and higher than 15% of the revenue of the penalized entrepreneur, achieved in the previous tax year, and if the fine is related to the activity conducted on the basis of a concession, the amount of the fine may not be lower than PLN 2,000 and may not be higher than 15% of the revenue of the fined entrepreneur, resulting from licensed activity, achieved in the previous tax year.

It is therefore always worthwhile to check what obligations have been imposed on us in the license, so as to avoid the imposition of a fine, the amount of which can be substantial.