The European Commission has sent Poland a reasoned opinion, thus commencing a second stage of the infringement procedure against the Polish electricity taxation system. Under EU law, excise duty on electricity is chargeable at the time of supply by the distributor or redistributors, making them liable to pay the tax. In Poland, however, excise duty on electricity is charged to the producer at the time of supply. By not aligning its electricity taxation system by 1 January 2006, Poland failed to meet its obligations under the Energy Tax Directive (Directive 2003/96/EC). In November 2006, the Commission formally opened an infringement procedure against Poland by sending a letter of formal notice. Due to the fact that Poland’s reply was not satisfactory the Commission has issued Poland with a reasoned opinion. If Poland does not comply with this opinion, the Commission will place the matter before the European Court of Justice.