Capacity charge: who will pay the most and how can costs be reduced?

Capacity charge: who will pay the most and how can costs be reduced?

The capacity market charge is a component of the electricity bill that has been in force in Poland since 2021. It was introduced alongside the launch of the capacity market - a mechanism designed to ensure the security of electricity supply by compensating generation units for maintaining readiness to produce electricity. As a result, electricity consumers finance not only the generation and transmission of electricity itself, but also the maintenance of adequate reserve capacity within the national power system. Funds collected through the capacity market charge are allocated to entities that commit to delivering capacity during periods of peak electricity demand. This enables the transmission system operator to reduce the risk of power shortages and system failures.

Who pays the capacity market charge?

The capacity market charge applies to all electricity consumers in Poland. It is paid by households, businesses, public institutions, and industrial facilities alike. However, the method used to calculate the charge varies depending on the consumer group.

For households, the charge is a fixed monthly fee determined by annual electricity consumption. For businesses and other non-household consumers, however, the charge is calculated based on the amount of electricity drawn from the grid during specific hours of the day designated as peak demand periods. From an industrial perspective, this means that the amount of the capacity market charge depends not only on total electricity consumption but, above all, on the consumption profile.

How much is the capacity charge in 2026?

The President of the Energy Regulatory Office (URE) has published the capacity market charge rates applicable from 1 January to 31 December 2026. Compared to 2025, these rates represent a significant increase in costs for all consumer groups (for businesses, the increase amounts to approximately 55.4% year-to-year).

Rates for households

The monthly net capacity market charge is:

  • PLN 4.29 per month – for annual consumption below 500 kWh,
  • PLN 10.31 per month – for annual consumption between 500 and 1,200 kWh,
  • PLN 17.18 per month – for annual consumption between 1,200 and 2,800 kWh,
  • PLN 24.05 per month – for annual consumption above 2,800 kWh.

Rate for businesses

The following rate applies to consumers other than households:

  • PLN 0.2194/kWh net, equivalent to PLN 219.40/MWh.

The charge is calculated based on electricity drawn from the grid on working days during peak demand hours, which currently cover the period from 7:00 a.m. to 10:00 p.m. For energy-intensive businesses, this may represent a very significant component of total energy costs. For example, a facility that consumes 1,000 MWh of electricity during chargeable hours over the course of a year will incur an additional cost of approximately PLN 219,000 net.

Why does the capacity market charge matter for industry?

In many companies, energy cost analyses focus primarily on the price of active energy. However, with the capacity market charge increasing by approximately 55% in 2026 compared to the previous year, it is becoming one of the key cost components. The highest costs will be borne by consumers whose largest share of electricity consumption occurs on working days between 7:00 a.m. and 10:00 p.m.

Przemysław Kurylas
Industrial facilities operating on single-shift or double-shift schedules, where production takes place mainly during daytime hours, are the most exposed to the highest capacity market charges. In such cases, the vast majority of electricity consumed is subject to the charge. By contrast, companies that use energy management systems and flexible production schedules can partially reduce the impact of this charge on their overall operating costs.
Przemysław Kurylas Operating Director

Can the capacity market charge be avoided?

Completely avoiding the capacity market charge is extremely difficult, as it is a regulated and mandatory component of electricity bills. However, several solutions can help reduce its impact.

Shifting consumption outside chargeable hours

The simplest way to reduce the capacity market charge is to limit electricity consumption during the hours when the charge applies. In practice, this may involve:

  • modifying the operating schedules of energy-intensive equipment,
  • running technological processes during nighttime hours,
  • using energy storage systems to cover part of daytime demand,
  • scheduling electric vehicle charging outside peak periods.

The greater the share of electricity consumption shifted outside the chargeable period, the lower the resulting cost.

On-site energy generation

Photovoltaic systems, cogeneration units, and other generation sources can reduce the amount of electricity drawn from the grid during hours subject to the capacity market charge.

For manufacturing companies in particular, covering daytime electricity demand with energy generated by photovoltaic installationscan be highly beneficial. Every kilowatt-hour that reduces grid consumption during chargeable hours lowers the basis for calculating the charge.

It should be noted, however, that a PV installation alone does not eliminate the charge entirely. If a company continues to draw electricity from the grid during chargeable hours, the charge will still apply, although at a lower level. The actual effect depends on the production profile, the level of self-consumption, and how well the generating asset's operating profile matches the facility's energy demand profile.

The chart presented below illustrates four alternative energy consumption profile management scenarios for a sample company with annual electricity consumption of 43 GWh. The amount of the capacity market charge—calculated here using the rates applicable in 2026—does not depend solely on the volume of electricity consumed, but rather on how evenly electricity demand is distributed throughout the day on working days. The end user is automatically assigned to one of four statutory categories (from K1 to K4) based on the percentage deviation between average power demand during peak hours (7:00 a.m.–10:00 p.m.) and average power demand outside those hours on working days.

In the least favourable K4 scenario, where the company operates intensively during the day (4.96 MW) and reduces activity at night (4.20 MW), the difference reaches as much as 18%, resulting in the full capacity market charge of nearly PLN 4 million per year.

By contrast, the K1 scenario illustrates a situation in which the same facility uses its own generation source during daytime hours to reduce dependence on the external grid. As a result, average peak-period demand falls to 4.52 MW and becomes almost perfectly aligned with nighttime demand of 4.51 MW. Since the resulting difference is effectively zero and therefore remains below the statutory threshold of 5%, the company qualifies for the maximum discount of up to 83%. Consequently, the annual capacity market charge is reduced dramatically—from the initial PLN 4 million to just PLN 615,000. This specific case demonstrates that the key to achieving savings is not reducing production, but rather effectively smoothing the daily power demand profile.

Reduction of capacity charge
Reduction of capacity charge using on-site energy source

Energy storage systems

Energy storage systems make it possible to store energy during periods of lower demand or high renewable generation and then use it during peak hours. This enables a company to reduce electricity consumption from the grid precisely when the capacity market charge applies. However, the economic viability of such a solution requires an analysis of the consumption profile, storage costs, charging strategy, and the expected number of operating cycles.

Energy management systems

In large industrial facilities, implementing an energy monitoring and management system can be an effective solution. Analysing the energy consumption profile makes it possible to identify the processes generating the highest capacity market charge costs and determine the potential for optimisation. In many cases, simply adjusting the operating schedules of selected equipment can deliver measurable savings without the need for costly investments.

The capacity market charge and energy audits

In many industrial facilities, costs associated with the capacity market charge can reach tens or even hundreds of thousands of zlotys per year. As a result, reducing these costs has become one of the key areas for identifying savings opportunities. A Company Energy Audit makes it possible to analyse the facility’s energy consumption profile in detail and determine what proportion of electricity consumption occurs during the hours subject to the capacity market charge. By using data from metering systems and monitoring platforms, it is possible to identify the technological processes, installations, and equipment responsible for the highest electricity consumption between 7:00 a.m. and 10:00 p.m. on working days.

The analysis should not be limited solely to evaluating total energy consumption. It is equally important to determine whether selected production processes can be partially shifted to nighttime hours or weekends without adversely affecting the facility’s production schedule. In many companies, significant savings potential lies in adjusting the operating schedules of compressors, pumps, refrigeration systems, ventilation systems, and energy-intensive technological processes.

An audit also enables an assessment of how investments in on-site generation assets may affect the level of the capacity market charge. This primarily concerns photovoltaic installations, cogeneration systems, and energy storage facilities. For companies whose consumption profile aligns with PV generation output, it is possible to reduce the amount of electricity drawn from the grid during chargeable hours and, consequently, lower the charge itself. Energy storage systems provide even greater flexibility by enabling stored energy to be used during periods when grid electricity consumption is most expensive.

Another important aspect of an audit is verifying whether a company is eligible for relief schemes available to energy-intensive businesses. By analysing energy intensity indicators and the company’s business structure, it is possible to assess whether the facility meets the requirements for applying reduction coefficients that decrease the capacity market charge. For large energy consumers, the benefits resulting from such relief schemes may be comparable to those achieved through technical investments.

Summary

The capacity market charge is becoming one of the more significant components of electricity bills. In 2026, the rate for businesses amounts to PLN 0.2194/kWh of electricity consumed during chargeable hours, while households pay between PLN 4.29 and PLN 24.05 per month depending on their level of electricity consumption.

Under a modern approach to energy management, the capacity market charge should not be viewed merely as an unavoidable component of the electricity bill. It is a parameter that can be analysed and optimised in much the same way as energy consumption, contracted capacity, or distribution costs. A properly conducted industrial energy audit can therefore not only identify opportunities to reduce energy consumption but also highlight measures that lower regulatory costs, whose importance for industry will continue to grow alongside rising energy prices and system charges.

Although the capacity market charge cannot be eliminated entirely, businesses can effectively reduce its impact by optimising their energy consumption profiles, implementing on-site generation sources, deploying energy storage systems, and introducing energy management systems.

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