The Impact of the Legal Status of Transmission System Operators on the Integration of the Internal Energy Market, as Exemplified by the Polish Electricity Transmission System Operator

Abstract

Aim: The aim of this article is to demonstrate the importance of interconnections for the functioning and further integration of the internal energy market and to analyze the impact of the legal status of electricity transmission system operators on the integration of the internal energy market.

Methodology: This article was prepared using a legal-dogmatic approach.

Results: The integration of the internal energy market provides numerous benefits to its participants, leading to increased energy supply security and price convergence. It also enables the efficient use of energy from renewable sources, whose share in the EU’s energy mix is steadily increasing. Despite this, market integration is proceeding more slowly than originally anticipated, primarily due to insufficient capacity of existing interconnections, the construction and development of which fall under the responsibilities of the TSO. An analysis of the legal status of the Polish electricity transmission system operator has shown that significant obstacles limiting investments in interconnections within Poland include the Polish TSO operating under a legal monopoly, which also covers the construction and operation of interconnections, as well as flawed ownership unbundling that does not ensure the operator’s full independence from other entities operating in the domestic energy market.

Implications and recommendations: It appears necessary to adapt national regulations to the current needs and challenges of the internal market and to structure them in such a way that they better support investment in interconnections. This should be achieved primarily by abolishing the TSO monopoly, which will enable independent investors to invest in interconnections and act as operators of such facilities, as well as by reducing the State Treasury’s stake in the ownership structure of companies operating in the Polish energy market.

Originality/value: This publication offers a critical analysis of Poland’s energy sector regulations in terms of their effectiveness in achieving both pan-European and national objectives. In light of the ongoing energy crisis, the need for legislative changes aimed at enhancing energy security, as demonstrated in this article, remains particularly relevant.