Unbundling – A step forward or exclusion of small operators?

For some time now, industry experts, as well as entrepreneurs, have increasingly noticed inequalities in access to EU funds for energy modernisation.

According to reports, more than PLN 4 billion of energy innovation funds could only go to state-owned energy giants, leaving smaller operators in the shade.

The allegations relate to five programmes from the Modernisation Fund, with criticism focusing on the condition of so-called‘unbundling‘, a restriction that requires power distribution companies to separate production from energy distribution, thereby excluding smaller companies serving fewer than 100,000 customers.

While the principle of unbundling makes sense, its consequences can lead to discrimination against smaller players in the energy market. In practice, this may violate the basic principles of the use of funds, as noted by Dr Magdalena Porzezynska, legal counsel.