The President of Poland’s Office of Competition and Consumer Protection (UOKiK) has initiated (26 November) antitrust proceedings against Wodociągi Zachodniopomorskie, a water utility company serving 28 municipalities in the Zachodniopomorskie region of Poland.
The investigation concerns allegations that the company improperly required residents to bear the costs of repairing water pipe failures on segments of pipelines beyond their property boundaries.
Allegations of Market Abuse
According to UOKiK, this practice may constitute abuse of a dominant market position, as rulings from Poland’s Supreme Court have consistently established that water utilities are responsible for the costs of such repairs.
“The Supreme Court has clearly ruled that water utilities should bear the costs of repairing pipeline segments beyond property boundaries. Consequently, I have launched antitrust proceedings against the company, which could face penalties of up to 10% of its annual revenue,” said Tomasz Chróstny, President of UOKiK.
Legal Context
A 2017 resolution by the Supreme Court clarified the definition and ownership of water connections and established that utilities assume control of pipeline segments upon their connection to the main water network. Subsequent rulings reinforced this position, stipulating that water utilities must cover repair costs for pipeline segments located outside customer property boundaries.
Charging residents for such costs, according to UOKiK, may violate competition laws by improperly shifting financial responsibilities onto consumers.
Role of Wody Polskie
The regulatory framework for water and wastewater services in Poland has been overseen since 2018 by the State Water Holding Wody Polskie. This authority is responsible for:
- Approving water and sewage service tariffs set by utilities.
- Reviewing regulations for water delivery and sewage collection services.
- Resolving disputes between utilities and customers regarding issues such as service agreements, disconnections, or property connections.
Next Steps
Wodociągi Zachodniopomorskie has been notified of the proceedings and will have the opportunity to present its defense. If found guilty of abusing its market position, the company could face significant fines and be required to revise its practices to comply with legal standards.
Source: https://uokik.gov.pl/wodociagi-zachodniopomorskie-prezes-uokik-wszczyna-postepowanie
