Energy recovery without new excise duty obligations

According to current case law and the interpretation of Article 11(2) of the Excise Duty Act, electricity recovered through recuperation does not constitute a new volume of energy subject to taxation.

Excise duty arises only when the electricity is released by the distribution system operator, i.e. when its quantity and value are actually settled. The energy fed into the grid (recovered) is in fact the same energy that was previously consumed, so there is no new generation within the meaning of the Act.
This approach confirms the favourable position for railway companies and traction system operators who recover energy from vehicle braking.
If your company settles electricity based on the recuperation process, it is worth verifying the method of calculating excise duty and the documentation from the DSO.

Need advice? Contact our experts Sebastian Gumiela and Dominika Kamińska.

Translated with DeepL.com (free version)