Supplier compensation for price caps changes as government clarifies key ambiguities

This Wednesday, the government approved the first amendment to the government regulation setting out the detailed procedure for compensation provided to energy suppliers in connection with electricity and gas price caps. The regulation has only been in force since the beginning of January this year and is intended to remain in force until the end of the year, when the price caps also expire.

The original wording of the regulation, under which electricity and gas suppliers are compensated for demonstrable losses and reasonable profit caused by the introduction of price caps, lasted two months. The regulation is crucial for suppliers that are still charging prices above the price cap.

Under the regulation, suppliers are compensated based on the type of supply contracts they have concluded with their customers. Supply contracts are divided into categories according to their characteristics. For each category, the regulation sets out the procedure and, where applicable, limits on the amount of compensation.