Poland has advanced draft legislation to reduce energy costs for energy-intensive industries, with the proposed measures aligned with the EU’s Clean Industrial Deal State Aid Framework and funded partly through higher corporate income tax on companies generating exceptionally significant profits.
Poland’s government has advanced a draft legislative proposal (Draft Act UD459) to support energy-intensive industries facing global competition disadvantages because electricity costs are nearly double those in competing regions.
Draft Act UD459 establishes support mechanisms aligned with the European Commission’s Clean Industrial Deal State Aid Framework (CISAF), published in Official Journal C/2025/3602 on 4 July 2025 and adopted in June 2025.
Funding mechanism and windfall taxation
The legislation proposes amendments to the Corporate Income Tax Act (enacted 15 February 1992, Journal of Laws of 2026, item 554) to increase the CIT rate on companies generating exceptionally significant profits.
The rationale reflects two distinct circumstances: sustained competitive disadvantages in the industrial sector combined with extraordinary financial results in certain economic segments, particularly energy and fuel trading.
Commodity market disruptions triggered by Persian Gulf region tensions and the effective blockade of the Strait of Hormuz—through which nearly 20% of global oil supply flows—caused dramatic price volatility.
Brent crude oil prices rose from approximately USD 65 per barrel in January 2026 to USD 126 per barrel in March 2026, generating trading margins in European markets that exceeded historical averages by several multiples. These windfall gains provide a revenue source for targeted industrial support without expanding public spending.
Energy sector financial dynamics
Distribution companies within Poland’s energy sector have benefited from regulated tariff systems administered by the Energy Regulatory Office (URE). The tariff framework guarantees returns on capital through rising distribution charges, ensuring stable revenues independent of broader economic conditions.
This monopolistic model contrasts sharply with energy-intensive industry operations, where rising input costs directly threaten viability. The proposed legislation aims to redirect windfall gains from this stable segment toward support for industrial competitiveness and modernisation investments.
Energy transition investment requirements
Beyond immediate cost relief, the draft act emphasises stimulating targeted investment activity by enterprises in modernising energy-intensive production processes. The legislation creates mechanisms for broader cooperation between industrial entities and third parties with expertise in energy transition project implementation.
