Back to the insights archive
Legal updates

High penalties for trading “kicks” – is this the end of the smokin' poisoners?

Air pollution is still an extremely up-to-date topic, with severe penalties for possible regulatory deficiencies.

Air pollution is still an extremely up-to-date topic, with severe penalties for possible regulatory deficiencies.

It is therefore worth looking at what has changed significantly in legislation aimed at combating polluted air and inefficient heating boilers, commonly referred to as "cinders".

Air pollution is still an extremely up-to-date topic, with severe penalties for possible regulatory deficiencies. It is therefore worth looking at what has changed significantly in legislation aimed at combating polluted air and inefficient heating boilers, commonly referred to as "cinders".

Although the amendment of the Act – Environmental Law entered into force in part already 23 November 2019, It's just with 1 January 2020 is fully valid. The amendment aims to seal gaps and ensure feasibility, the requirements of the Regulation of the Minister of Development and Finance dated 1 August 2017 on requirements for solid fuel boilers (hereinafter referred to as ‘the Regulation’) and implementing Union law.

The amendment is also intended to contribute to an effective control of the compliance of solid fuel boilers with a rated heat output of not more than 500 kW

End of imports of ‘copies’

So far, the restrictive requirements were not covered by heating boilers which were lawfully manufactured or authorised in another Member State of the European Union (EU). This exception also applied to products from Turkey or boilers lawfully produced in the Member State of the European Free Trade Agreement (EFTA) which is party to the Agreement on the European Economic Area (EEA).

This allowed for the introduction on the market of boilers which deviated from the requirements of the Regulation, the emission threshold and combustion efficiency. In view of the need to reduce the negative impact of non-compliant boilers on the environment and on human health and life, the legislator has introduced new rules limiting the possibility of domestic introduction of solid fuel boilers with a rated heat output of not more than 500 kW if they do not comply with the Regulation.

With the entry into force of the amendment, even products produced or authorised in the European Union, Turkey or produced in an EEA EFTA State must comply with standards in the Regulation if they are to be placed on the market. As a result, a gap in the law has been removed, allowing for the rather free circulation of "diggers" in the territory of Poland.

Eco-security Trade Inspection

The amendment is also intended to contribute to an effective control of the compliance of solid fuel boilers with a rated heat output of not more than 500 kW. Standing on guard of the trading of boilers of adequate quality (and on the occasion of cleaner air) will be entrusted to the Commercial Inspection.

If the boiler does not meet the relevant standards, the Commercial Inspection shall be entitled to restrict the placing on the market of equipment and to impose administrative fines. More precisely, the administrative penalty will be imposed by the Provincial Inspector of the Commercial Inspection by decision.

‘Cinderette’ will not pay – fines from 10,000 PLN

Administrative fines may be imposed by the Commercial Inspectorate mentioned above on an entrepreneur who will place a boiler on the market which does not meet the requirements of the Regulation.

An entrepreneur who accepts the placing on the market of boilers which do not comply with the Regulation shall be liable to a fine of 5% revenue generated in the previous calendar year. However, the fine may not be less than 10,000 PLN.

The legislator also envisaged a solution in case the entrepreneur did not achieve income or conduct business activity – then the administrative penalty is 10,000 PLN.

No smoke without fire

In the current state of the law, consumers have been very often placed on the market (including to a large extent consumers) by heating boilers which do not meet the highest requirements (fifth) heating efficiency classes. Although the revision of the Environmental Law will certainly contribute to a reduction in the circulation of "diggers", the restriction on turnover will not extinguish the focus of the problem itself, but only slightly dispel the smoke of symptoms.

It should be remembered that most often the choice of boiler and fuel is determined by factors such as price and availability – so long as the balance of profitability (even the deluded one), will lean towards inefficient furnaces or it will not be possible to use other heating sources (although gas or urban ones), so long the problem of "coils" will not be solved – even by statutory instruments

Author: Michał Skwarek - Council applicant in the legal department Russell Bedford Poland. Graduated from the Faculty of Law and Administration of the University of Warsaw.

Continue exploring our insights.

View the full archive
Legal updates

Obligations of traders to provide non-cash payments

As part of the amendment package under the noisy name Polish Deal, which most of the solutions entered into force at the beginning of January 2022, to stimulate a new impetus for the gradually growing trend in the market for non-cash payments, and at the same time to counter and combat the gray...

Legal updates

Deduction – what is involved and when possible

Deduction is a legal institution regulated in Article 498-505 KC.

Legal updates

Business secrecy in the context of changes to the Public Finance Act - comment

From 1 July 2022 information on all contracts exceeding the value 500 PLN, which from the beginning of this year have been concluded by public authorities (including JST), will be public and will be entered in the register kept by the Minister of Finance.