Licence for distribution of gaseous fuels (DPG)

Do you run a business? Are you planning to distribute gaseous fuels? First, you need to obtain a relevant licence.

How to proceed

What you should know and who can use this service

Distribution of gaseous fuels is transport of gaseous fuels through distribution networks for the purpose of their delivering to customers (with the exclusion of the sale of gaseous fuels).

The licence is issued by the President of the Energy Regulatory Office (URE) by means of a decision.

You can obtain the licence if you:

• have a registered office or place of residence in the territory of a Member State of the European Union, the Swiss Confederation or a Member State of the European Free Trade Association (EFTA) - a party to the Agreement on the European Economic Area
• have financial resources in the amount that guarantees the proper performance of the activity or you can document your ability to raise such funds
• have the technical capacities that guarantee the proper performance of the activity
• will ensure employment of people with relevant professional qualifications as regards the operation of networks, equipment, and installations
• have obtained a decision on land development conditions or decision on the location
• you have no arrears in payments to the State budget or you have obtained an exemption, deferral or consent to spread the payment into instalments as regards tax arrears, or the enforcement of the decision of the competent tax authority was suspended in full.

Distribution of gaseous fuels through networks with capacity below 1MJ/s does not require a licence.

When you should complete this procedure

Obtain the licence before the start of business activity of distribution of gaseous fuels.

Where you can complete this procedure

URZĄD REGULACJI ENERGETYKI Ul. Towarowa 25a, 00-869 Warszawa

What to do step by step

1. Prepare and submit your application for a licence

The application for a licence for distribution of gaseous fuels (GDP) should be submitted to the Energy Regulatory Office. Each entity wishing to be granted the licence should prepare the application on their own, there is no one application form.

The application should include:

• name of the applicant, registered office, address of the branch in Poland or the place of residence, as well as names and surnames of representatives appointed to act on behalf of the business operator, and their addresses
• subject and scope of the applicant's business activity for which the licence is to be issued, and the development plan project as regards meeting the present and future energy demand
• for business operators - information on the activities of the applicant so far, including financial statements for the past 3 years
• the period for which the licence is to be granted, including its start date
• the amount of funds at the disposal of the applicant, in order to ensure the proper performance of the activity under the application
• the number in the register of business operators of the National Court Register (KRS), if assigned, or the number in an equivalent register of a Member State of the European Union, the Swiss Confederation or a Member State of the European Free Trade Association (EFTA) - a party to the Agreement on the European Economic Area

Documents

Time limit

Obtain the licence before the start of business activity of distribution of gaseous fuels.

2. Formal verification of the application

If the application has any formal defects, the office will ask you to correct it within a specified time limit. You will have at least 21 days to correct the application, counted from the date of receiving the request. If you fail to do so within the specified time limit, the office will not further process your application and you will not be granted the licence.

If you have not paid the fee for the licence, the office will set you a payment deadline (7-14 days). If you fail to pay the fee by the deadline, the office will return your application.

Please note! The lack of payment of the fee for the power of attorney will not result in the return of the application. The Energy Regulatory Office will further process your case, however, it will also notify the city office to which the fee should have been paid of the lack of such payment. The office will start enforcement proceedings.

3. Procedure of granting the licence

If your application has no formal defects or they have been corrected, the Energy Regulatory Office institutes the administrative procedure of granting the licence. The office may request that you participate in the office's activities and provide explanations personally, by an attorney or in writing.

Documents

4. The Office will check whether you can be granted the licence

Opinion on the licence

The Energy Regulatory Office requests the competent Voivodeship Board (with jurisdiction over the location of the facility) for an opinion on the licence. The Voivodeship Board issues its opinion in the form of a decision within 14 days. If the opinion is not issued within 14 days, it is deemed that the Board has issued a positive opinion.

Assessment of the application

URE examines the submitted documents. Before deciding on granting of the licence, the Office will check whether you have met all the requirements to be granted the licence and whether there are any circumstances which according to law make it impossible.

Additional financial security for third party claims

The Energy Regulatory Office may make the granting of the licence dependent on the submission of additional financial security, aimed at satisfying any possible claims of any third persons. Such claims may arise due to improper performance of the activity to be licensed, for instance environmental damage. In such an event, you will receive a decision on the requirement to submit a security. You cannot submit a complaint against this decision. You can only challenge it in your appeal against the decision on the licence.

The Office will notify the parties of having collected all materials for the case

The licensing authority will inform of the possibility of reading the evidence materials for the case. It will also notify of any requirements that are not met or proved as of the date of such notification and if such requirements are not met or proved, this may affect the decision on the application.

The party may submit additional materials in order to prove that such requirements are met, within the time limit set for such response on the gathered evidence and materials (Article 79 of the Code of Administrative Procedure).

The parties:

• have the right to participate at every stage of the case and to submit their response to the gathered evidence and materials, before the licence is granted
• have the right to access the case files for viewing and submit requests and objections (Article 10(1) of the Code of Administrative Procedure)

If during the procedure of granting the licence you are accused of an offence related to your business activity, URE will suspend the procedure. Such suspension will last until the preparatory or court proceedings are closed. The procedure will be suspended also if the same occurs as regards the members of the supervisory board or persons authorised to represent your business.

Documents

5. Granting of the licence for distribution of gaseous fuels

If the application you have submitted meets the requirements resulting from law, the office will grant you the licence. You will receive it in the form of a decision.

After the licence is granted, the Office will enter your business in the register of businesses holding a licence for distribution of gaseous fuels. This register is kept by the Energy Regulatory Office (URE).

URE will issue a decision refusing to grant the licence if you have not met the requirements specified in the legal provisions. The Office will notify the European Commission, through the Minister for Energy, of the decision refusing to grant the licence. The notification will include the reasons for refusing to grant the licence.

The Office will refuse to grant the licence if:

• your business is subject to bankruptcy or liquidation proceedings
• within the last 3 years your licence for the activity carried out under the Act "Energy Law" was revoked due to:
  • a gross infringement of the licence conditions or other conditions of the licensed business activity specified in law
  • not having removed within the set time limit of circumstances or a legal status incompliant with the licence conditions or legal provisions on the licensed business activity
• in the last 3 years you have been removed from the register of regulated activity due to a ban on carrying out the activity covered by the entry in the register, due to:
  • submission of a false statement on meeting the requirements required by law for such activity
  • not having removed the infringements as regards such activity within the set time limit
  • a gross infringement of the conditions of such activity
• you have been sentenced by a final court decision for an offence or a tax offence related to your business activity. If the applicant is a company, a foreign business operator or a branch of a foreign business operator, then this applies also to the persons authorised to represent such entities and the members of their supervisory boards
• you are not registered as a VAT payer
• if another entity or person with significant impact on your business or having control or joint control over your business, has been in the last 3 years sentenced with a final court decision for an offence or a tax offence related to your business activity specified in the Act "Energy Law". The issue of control has been regulated in the Act of 29 September 1994 on accounting.

Also, the licence will not be granted if you have not met the requirements necessary for the licence to be issued.

Documents

How much you will have to pay

616 zł

The fee should be paid upon submitting the application for a licence. You can attach the confirmation of the bank transfer as a confirmation of fee payment.

The fee should be paid to the account of the City Office of the capital city of Warsaw - Taxpayer Services Centre.

Power of attorney

If you wish to be represented by an attorney-in-fact, remember to enclose the power of attorney and proof of payment of stamp duty for power of attorney (PLN 17). You do not have to pay the stamp duty if the power of attorney is granted to your spouse, children, parents or siblings.

Practical information on the power of attorney can be found here.

How long you will have to wait

Your case will be settled within one month. This period may be extended to two months, subject to notification by the official.

How can you appeal

You can appeal against the decision on the licence for distribution of gaseous fuels within 2 weeks from the date of receiving the decision.

The appeal should be submitted through the Energy Regulatory Office. It will be examined by the Regional Court in Warsaw - the Competition and Consumer Protection Court. The appeal should include the number of the case and of the decision you are appealing against, a description of charges, their concise justification, and any evidence

Also, indicate whether you request the decision to be revoked or changed in whole or in part. The court fee for the appeal is PLN 1000. The appeal is examined according to the Code of Civil Procedure.

If the Energy Regulatory Office agrees with your appeal, it may revoke or change the decision in full or in part, without forwarding the case files to the court. It will then send you a new decision, against which you will have the right to appeal.

Good to know

Other documents and permits

When you hold a licence for distribution of gaseous fuels, you still have to obtain other licences and permits specified in separate provisions. In particular, please note that the services of distribution of gaseous fuels may be performed only by an operator of the distribution system (OSD) indicated by the President of the Energy Regulatory Office. Therefore, the sole licence for distribution of gaseous fuels does not authorise you to perform the licensed activity. You need to obtain the OSD status as well, in accordance with Article 9h of the Act "Energy Law".

Licence fees

Upon being granted the licence for distribution of gaseous fuels, you are required to calculate and pay the annual licence fee. The fee should be paid by 15 April every year.

The manner of calculating the fee is specified in the Regulation of the Council of Ministers of 12 October 2021 on the licence fee.

Changes to the licence

Submit an application to change the licence details if any of the following changes:

• name of your business
• address of your registered office or place of residence
• the number in the National Court Register or an equivalent register in other countries
• tax identification number (NIP)

Submit your application no later than 7 days of the occurrence of such changes.

The Energy Regulatory Office may change the licence conditions upon your request, for instance as regards the manner of distribution of gaseous fuels.

Where to look for information

You will find more information in the information package published on the website of URE.