Let there be light ... so long as you're not old, sick or poor
Loving wife: "Honey, did you pay the electric bill this month?"
Innocent husband: "Yes, honey."
Doubting wife: "Are you sure?"
Unsure husband: "Uhh ... why do you ask?"
Angry wife: "Come home and you'll see why, but you'd better bring a flashlight!"
Guilty husband: "Ooops ... I think I have to work late tonight."
Sound familiar? Hopefully not, but as this year advances more couples may be having this conversation. And so, too, may company presidents and their accounts payable department. Why? As of January 1, 2003 new amendments to the energy law allow power companies to pull the plug on delinquent customers. But couldn't they do this before? Yes, but only if contractually agreed to between the parties.
Now, energy suppliers have a statutory right to disconnect a customer's electricity, gas, or heating on grounds of non-payment. And if payment is not made within 30 days of its due date, the supplier may disconnect the service following a two-week grace period.
Any exceptions to this rule? Yes. Power to a company or state agency crucial to maintaining the country's defence preparedness may not be disconnected for non-payment. What about the poor and elderly? No. The poor and elderly are not crucial to the defence of the country. What about hospitals? Not crucial either. Orphanages? Ditto. But doesn't this violate the spirit of EU regulations, not to mention the proposed amendments to Directives 96/92/EC (electricity) and 98/30/EC (gas) currently being considered by the European Parliament and Council? Yes. In addition to imposing a requirement on member states to protect "vulnerable customers" from disconnection, the EU is considering the adoption of an amendment to require member states to "take appropriate measures to protect customers in remote areas," including the necessity to "appoint a power supplier of last resort." Will the country have to revise its law once again when it joins the EU? Of course. Are you surprised about that? No.
Despite these apparent shortcomings in the country's revised energy law, these amendments have taken a step in the right direction to increase competition in the electricity and gas sectors. Companies that use at least 10 gigawatts of electricity on an annual basis are now free to choose their supplier. According to the most recent EU Commission "Report on Poland's Progress Towards Accession," approximately 51% of our market is free to choose its supplier. The other half is still bound by long-term energy supply agreements between the Polish Power Grid and electricity producers. Unfortunately, these amendments do not grant individual consumers the right to choose their power supplier.
Any other surprises included in these amendments? Yes. Take, for instance, the example of the absent-minded husband, who despite his wife's repeated reminders to pay the electric bill, occasionally pays more than 30 days late, but before the two-week deadline notice. He thinks everything is fine. He paid the bill, albeit a little late, and the lights are still on and his wife is none the wiser to his procrastination. Life is good, at least until the wife answers the knock on the front door to find a technician from the power company standing in front of her.
Technician: "I'm here to install your new pay-as-you-go electric payment system."
Curious wife: " I didn't order anything."
Technician: "Due to the fact that your husband has twice paid your electric bill late during the past year, you will only be able to use as much electricity as you pay for in advance. This device will measure the amount of energy consumption by the minute. Once you have exceeded the amount for which you have prepaid, this device will automatically turn off your power."
Soon to be former wife: "Do you know a good divorce attorney?"
My legal advice to the husband who tends to forget to pay the utility bills? Listen to your wife. And pray for the referendum vote to be a great big "yes."
This article was written by Paul Fogo, a senior attorney at the law firm of Miller, Canfield, Paddock & Stone, with the assistance of Marcin Jakubaszek, an associate attorney.
Innocent husband: "Yes, honey."
Doubting wife: "Are you sure?"
Unsure husband: "Uhh ... why do you ask?"
Angry wife: "Come home and you'll see why, but you'd better bring a flashlight!"
Guilty husband: "Ooops ... I think I have to work late tonight."
Sound familiar? Hopefully not, but as this year advances more couples may be having this conversation. And so, too, may company presidents and their accounts payable department. Why? As of January 1, 2003 new amendments to the energy law allow power companies to pull the plug on delinquent customers. But couldn't they do this before? Yes, but only if contractually agreed to between the parties.
Now, energy suppliers have a statutory right to disconnect a customer's electricity, gas, or heating on grounds of non-payment. And if payment is not made within 30 days of its due date, the supplier may disconnect the service following a two-week grace period.
Any exceptions to this rule? Yes. Power to a company or state agency crucial to maintaining the country's defence preparedness may not be disconnected for non-payment. What about the poor and elderly? No. The poor and elderly are not crucial to the defence of the country. What about hospitals? Not crucial either. Orphanages? Ditto. But doesn't this violate the spirit of EU regulations, not to mention the proposed amendments to Directives 96/92/EC (electricity) and 98/30/EC (gas) currently being considered by the European Parliament and Council? Yes. In addition to imposing a requirement on member states to protect "vulnerable customers" from disconnection, the EU is considering the adoption of an amendment to require member states to "take appropriate measures to protect customers in remote areas," including the necessity to "appoint a power supplier of last resort." Will the country have to revise its law once again when it joins the EU? Of course. Are you surprised about that? No.
Despite these apparent shortcomings in the country's revised energy law, these amendments have taken a step in the right direction to increase competition in the electricity and gas sectors. Companies that use at least 10 gigawatts of electricity on an annual basis are now free to choose their supplier. According to the most recent EU Commission "Report on Poland's Progress Towards Accession," approximately 51% of our market is free to choose its supplier. The other half is still bound by long-term energy supply agreements between the Polish Power Grid and electricity producers. Unfortunately, these amendments do not grant individual consumers the right to choose their power supplier.
Any other surprises included in these amendments? Yes. Take, for instance, the example of the absent-minded husband, who despite his wife's repeated reminders to pay the electric bill, occasionally pays more than 30 days late, but before the two-week deadline notice. He thinks everything is fine. He paid the bill, albeit a little late, and the lights are still on and his wife is none the wiser to his procrastination. Life is good, at least until the wife answers the knock on the front door to find a technician from the power company standing in front of her.
Technician: "I'm here to install your new pay-as-you-go electric payment system."
Curious wife: " I didn't order anything."
Technician: "Due to the fact that your husband has twice paid your electric bill late during the past year, you will only be able to use as much electricity as you pay for in advance. This device will measure the amount of energy consumption by the minute. Once you have exceeded the amount for which you have prepaid, this device will automatically turn off your power."
Soon to be former wife: "Do you know a good divorce attorney?"
My legal advice to the husband who tends to forget to pay the utility bills? Listen to your wife. And pray for the referendum vote to be a great big "yes."
This article was written by Paul Fogo, a senior attorney at the law firm of Miller, Canfield, Paddock & Stone, with the assistance of Marcin Jakubaszek, an associate attorney.
