|
|
Republic of Lithuania
LAW ON HEAT SECTOR
20 May 2003 No IX-1565
Vilnius
CHAPTER ONE
GENERAL PROVISIONS
Article 1. Purpose and Objectives of the Law
1. This Law shall regulate state management of the heat sector, the activities of the heat sector entities, their relations with heat customers, their interrelationship and responsibility.
2. Objectives of the Law:
5) when producing heat, to increase the use of indigenous fuel, biofuel and renewable energy resources;
Article 2. Definitions
1. Commercial heat and/or hot water meters shall mean the meters of heat and/or hot water supplied to customers; the readings of these meters shall be used for effecting payment to the supplier.
2. Basic heat price shall mean long-term price of heat production and/or transmission calculated according to the heat and hot water pricing methods approved by the National Control Commission for Prices and Energy, set by the Commission for a not shorter than 3-year period and used every year recalculating the prices of heat production and/or heat transmission.
3. Cogeneration of heat and electricity shall mean the production of heat and electric energy during a combined technological cycle.
4. Cogenerator of heat and electricity shall mean an undertaking or its establishment whose principal activity is heat and electricity production.
5. Domestic heat customer shall mean a natural person using heat and/or hot water for his domestic needs.
6. Hot water shall mean the drinking water heated up to the temperature established by the hygiene norms.
7. Hot water supplier shall mean a legal person supplying hot water under hot water purchase-sale contract or a heat supplier supplying hot water under heat and hot water consumption purchase-sales contract.
8. Compensation for reserve capacity shall mean compensation of additional costs related to the reserve capacity calculated according to the methodology approved by the Government or the institution authorised by it, payable by the customer who uses the heat supply system as the stand-by heating method.
9. Notice of payment for heat shall mean the information notice issued by the heat supplier for the domestic customer in the form prescribed by the Government or by the institution authorised by it and having the obligatory particulars of accounting documents regarding the calculated amounts payable by the customer for the heat and/or hot water supplied to the customer during the billing period.
10. Customers entitled to uninterruptible heat supply shall mean the offices and organisations on the lists of customers approved by the municipalities which require uninterruptible heat supply.
11. Independent heat producer shall be a legal person producing and selling heat and/or hot water to a heat supplier or heat customer provided that the independent heat producer holds a heat supply licence.
12. Method of heating of a building shall be a technical solution for heating the interior of a building as defined in the design documentation, including the heating equipment installed in the hot water supply system.
13. Heating and hot water system of a building shall be the complex of technical facilities installed in the building intended for the delivery to the premises of heat transmitted to or produced in the building and/or delivery of hot water to the premises.
14. Person responsible for the maintenance of the heating and hot water system of the building shall mean a natural or a legal person meeting the established qualification requirements for the operation of heating and hot water systems of buildings and providing maintenance services of the system.
15. Heat bill shall mean the document conforming to the requirements of the Law on Accounting regarding the heat or hot water supplied to the customer during the billing period, the price thereof and the amount payable by the customer.
16. Heating season shall mean time period the beginning and end whereof shall be established by municipal resolutions taking into account the outdoor temperature defined by construction technical regulations prescribing the time when it is obligatory to start and when it is permitted to terminate heating of certain municipal buildings.
17. Heat carrier shall mean specially prepared water, drinking water, steam, other liquid or gas used to transport heat energy.
18. Heat equipment shall mean a combination of technical facilities assigned for production, transport or storage of heat and/or hot water.
19. District heating feeder shall mean the branch of heat transmission network up to the primary closing valves in the building, shutting off the heating equipment of the building from the heat transmission network.
20. Heat transmission shall mean transportation of heat by the heat carrier through the heat transmission network.
21. Heat transmission network shall mean the system of interconnected pipelines and equipment intended to transport heat by the heat carrier from the heat producer to heat customers.
22. Heating unit shall mean the equipment of heating and hot water system connected to the heat feeder, transforming the heat energy transported by the heat carrier and delivering it to the heating appliances in the building.
23. Heat supplier shall mean a legal person having control over the heat transmission network and organising the operation of the network by producing (purchasing) heat and supplying it to customers.
24. Heat supply shall mean the delivery and sale of district heating and/or hot water to the heat customers.
25. Heat supply licence shall mean the document granting the licence holder the right to engage in the heat supply business in a defined service area.
26. Termination of heat supply shall mean the dismounting of the pipeline through which the heat carrier is transported thus making the heat supply technically impossible.
27. Heat supply system shall mean the organisational-technical measures intended to supply heat to the customers, which is controlled by the heat supplier and consists of the heat transmission network and one or more heat producers connected to the network.
28. Heat Sector National Development Plan shall mean the Government Programme Document for the implementation of the national energy strategy in the heat sector.
29. Special plan of the heat sector shall mean the special planning document of municipalities defining the newly planned areas of heat customers, identifying the possible and alternative methods of heating and the purpose of which shall be satisfying the customers’ demand for heat at lowest costs and within the limits of permissible negative environmental impact.
30. Heat sector shall mean a constituent part of the energy sector directly connected with the production, transmission, supply and consumption of heat and hot water.
31. Heat consumption purchase-sale contract shall mean the contract concluded between the heat supplier or producer and the domestic customer or the legal person who consumes heat and/or hot water in the premises with no commercial meters installed.
32. Heat customer shall mean a legal or a natural person who has the heating equipment used by him connected in the prescribed manner either to the heat transmission network or to the heating and hot water systems of the building.
33. Supply-consumption boundary shall be the location in the heat carrier’s pipelines up to which the supplier shall be responsible for the supply of heat and hot water.
34. Transfer of management shall mean transfer to the economic entity of the management right of the heat sector or its part on the basis of a lease or concession contract or other agreement for the transfer of management.
Article 3. Competition in the Heat Sector
1. The competition between the suppliers of alternative types of energy aimed at satisfying the needs of customers for heat shall be implemented by special plans of the heat sector at least costs to the customer, ensuring safety of supply and not exceeding the permitted environmental impact according to the effective pollution norms and by other means prescribed by this Law. The heat customers shall have the right to choose the heat suppliers of different types of alternative energy, to install the local heating system provided this does not rub counter to the territorial planning documents.
2. The heat production shall be based on competition between the heat producers. When reorganising or privatising heat supply undertakings managed by municipalities, the municipalities shall ensure that the undertakings managed by them own heat transmission network through which not less than 5 GWh of heat is sold per year and not less than 30 percent of heat production capacity required to satisfy the customers’ heat demand, including the required heat capacity reserve.
3. The preparation and supply of hot water shall be based on competition with the customers choosing the supplier of hot water or the method of being supplied with hot water. The municipality shall promote competition in the hot water sector.
Article 4. Promotion of Cogeneration of Heat and Electricity as well as Heat Production from Biofuel and Renewable Sources of Energy
2. The Government or the institution authorised by it shall set the scope of and procedure for the procurement of electricity from cogenerators of heat and electricity taking regard of the necessity to efficiently use the electric energy and heat production capacities.
Article 5. The Right of the Organisations Protecting the Rights of Heat Customers to Control the Activities of Heat Suppliers
1. The organisations and institutions protecting the rights of heat customers shall be entitled to receive from heat suppliers and producers data about the heat supply and production activities and to submit proposals to state and municipal institutions.
2. If the Supervisory Boards are formed in the municipality-controlled heat production and supply undertakings, the municipality shall propose that the heat customers organisations and institutions nominate the candidates to members of Supervisory Boards of these undertakings. Having received the nominations the municipalities shall ensure that these organisations and institutions be represented on the Supervisory Boards.
Article 6. Heat Energy Council
1. The Heat Energy Council shall be a collegiate body functioning in a deliberative capacity on a voluntary basis; it shall consist of a group of representatives of institutions directly related to the heat sector under the Ministry of Economy, providing the Minister of Economy with proposals on urgent state strategy issues in the heat sector.
Article 7. Special Plans of the Municipal Heat Sector
1. Municipalities shall manage the heat sector according to the special plans of the heat sector approved by municipal councils.
2. Special Plans of the Heat Sector shall be drawn up according to the Rules of Drawing up of Special Plans of the Heat Sector approved by the Law on Territorial Planning, this Law and the Ministers of Environment and of Economy.
3. The main objective of the Special Plan of the Heat Sector is to meet the needs of heat customers at lowest costs and within the limits of permissible negative environmental impact. The special heat plans shall be drawn up in compliance with the provisions on air pollution of the Law on the Protection of the Ambient Air, the Law on the Assessment of Impact of Projected Economic Activity on the Environment and the criteria of urban planning (the building density, the number of storeys, the specifics of construction), as well as other criteria. The projected territories of heat customers and principal technical solutions for the use of alternative energy or fuel prescribed for this particular territory in order to meet the demand for heat of the customers of this particular territory shall be defined in the Special Plan of the Heat Sector. This provision shall not be applied with respect to individual residential houses, except for those that are being built in the new territories.
4. The special plan of the municipal heat sector shall be drawn up with the participation of heat and gas supply undertakings located in the territory of the municipality as well as other entities related to the heat sector and heat customer protection organisations. The ecologically clean heat energy sources (electric, geothermal, etc.) shall be permitted in the entire territory of the municipality.
5. Special Plans of the Heat Sector shall be revised at least every 5 years taking into account the development of heat production and transmission technologies, changes in the environmental pollution and other factors important for territorial planning as provided for in the Rules for the Drawing up of Special Plans of the Heat Sector.
Article 8. Special Plans of the Municipal Heat Sector and National Energy Objectives
1. The Government shall approve, on the recommendation of the Minister of Economy, the National Heat Sector Development Plans for implementing state strategy in the heat sector and for coordinating the decisions provided for in the plans of the municipal heat sector with the national energy objectives.
2. Special plans of the municipal heat sector shall be in conformity with the state strategy, national energy objectives and the heat sector development plans approve by the Government.
Article 9. Organising the Supply of Heat
The municipality, following the heat sector special plan, shall organise the supply of heat to heat customers according to their demand for heat for the purpose of heating, conditioning, and preparation of hot water.
Article 10. Purchasing of Heat from Independent Producers
1. The suppliers of heat shall, according to the procedure established by the Government for the purchasing of heat into the heat supply systems, purchase from the independent producers heat which meets the quality, reliability of supply, environmental protection requirements and is sold at a lower price than the producers’ comparative heat production costs or heat selling prices of other independent producers.
2. If the heat supplier refuses to purchase heat meeting the set requirements proposed by the independent heat producer, the producer shall have the right to lodge a complaint against the supplier’s decision with the National Control Commission for Prices and Energy. The Commission shall take a decision on the complaint of the independent producer not later than within 20 calendar days from its registration with the Commission. The National Control Commission for Prices and Energy shall be entitled to obligate the heat supplier to purchase heat from the independent heat producer at the price offered by him to the heat supplier or at the price and on the conditions set by the Commission.
Article 11. Supply and Consumption Boundary between the Supplier and Customer of Heat
1. The heat supplier shall be responsible for the delivery to the heat customers of the heat carrier of the established quality up to the supply and consumption boundary.
2. The supply and consumption boundary shall be established on the points of the heat carrier’s supply and return pipelines, where the commercial heat meter is connected to the customer’s heat equipment, provided it is installed on the feeder into the house or in the customer’s apartment. Other heat supply and consumption boundary may be established in the agreements. The priority of choosing the heat supply and consumption boundary shall be given to a domestic heat customer.
3. If the heat carrier delivered to the building is also released to the heating, conditioning and/or hot water equipment installed in the building, the heat supplier shall have the right, having lodged a written request with the owners of the building, to be granted access to any point of the heating or hot water system for inspecting the leakages of the hot water carrier.
Article 12. Settlement of Payments with Heat Supplier
1. The heat customers shall settle payments with the heat supplier for the supplied heat and/or hot water according to the meter readings of the commercial heat and/or hot water supplied, unless the contracts establish otherwise.
2. In case there are more than one heat customer in the building, the entire quantity of heat consumed in the building, established according to the commercial meter readings, shall be allocated/divided between the customers, while each customer shall pay for the quantity of heat allocated to him upon metering, calculating or otherwise evaluating according to the methods recommended to be applied by the National Control Commission for Prices and Energy or agreed with it, what proportion of the total quantity of consumed heat has to be assigned to this particular heat customer. The method for metering, calculating or evaluating the said proportions shall be selected by the heat customers from the methods recommended by the National Control Commission for Prices and Energy. Other methods proposed by the heat customers may be applied only upon agreement thereof with the National Control Commission for Prices and Energy.
3. The document of settlement of payments for the supplied heat shall be the heat bill. The municipality shall be entitled to prescribe that the domestic customers be issued notices of payment for heat services instead of heat bills. Upon the request of a domestic heat customer the heat supplier shall issue the bill when the customer pays for the related additional costs of the supplier. If the municipality establishes that the domestic heat customers should be issued notices of payment for heat services instead of heat bills, the heat price shall exclude the customer’s billing costs for heat and/or hot water.
Article 13. Seasonal Character of Heat Supply
1. The heat customers shall be entitled to decide on the start-up and end of heating of their buildings, except for the offices specified by the municipalities, for which the start-up and end of the heating season shall be decided by the municipality.
2. If the heat customers who are entitled to decide on the start-up or end of heating of their buildings decide to commence or end the heating of their buildings at the time other than the start-up and end of the heating season specified by municipalities, they shall, not later than 2 working days prior to the implementation of the decision, notify the heat supplier of their decision according to the procedure laid down in the Heat Supply and Consumption Rules approved by the Minister of Economy.
Article 14. Suspension of Delivery of Heat and/or Hot Water to Heat Customers who are in Arrears
1.The heat supplier shall be entitled to suspend, according to the procedure established in the contracts, the delivery of heat and/or hot water to the heating and/or hot water facilities of a heat customer having arrears in payment, if he failed to pay his heating bills for over 30 calendar days counting from the last day permitted for paying the bill. In a multi-apartment building it shall only be permitted to suspend the delivery of hot water to the facilities of a customer who has arrears in payment.
2. The heat supplier’s obligation to notify in writing the customer with payment arrears of the scheduled suspension of delivery of heat and/or hot water not later than 10 days before the date of suspension shall be laid down in the contracts.
3. The heat supplier’s costs incurred through the renewed delivery of heat and/or hot water shall be reimbursed by the customer.
Article 15. Responsibility for Commercial Heat and Hot Water Meters
1. The heat and/or hot water supplier shall at his own expense install commercial heat and/or hot water meters, ensure their proper technical condition, the required measurement accuracy and shall arrange their verification.
2. The commercial heat and hot water meters as well as the meters registering the parameters of heat carrier delivered into the district heating unit of the building shall be subject to the state metrological control of measuring instruments. The time limits of verification of the instruments shall be subject to the control of the National Metrology Inspectorate under the Ministry of Justice.
Article 16. Customers Entitled to Uninterruptible Heat Supply
The customers entitled to uninterruptible heat supply shall be ensured technical possibilities for uninterruptible heat supply when temporarily it is not possible to use the main heat supply source. The uninterruptible heat supply shall be secured either by connecting the heat customer’s equipment by separate feeders to the parts of heat transmission network that, in case of technical failure, may be operated autonomously or by installing stand-by heating facilities. When the stand-by heating method is installed, the customers entitled to uninterruptible heat supply shall be considered making use of both the main source of heat supply and the stand-by heat supply method for heating their building. In case the customers of uninterruptible heat supply are using the heat supply system only as the stand-by type of heating, they shall pay the heat supplier a compensation for the reserve capacity. The Ministers of Environment and Health shall draw up the list of health care institutions which should be provided stand-by method of heating.
Article 17. Termination of Heat Supply
1. The heat supplier shall be entitled to terminate heat supply only upon having agreed the termination with the customers, except in cases when the State Energy Inspectorate under the Ministry of Economy establishes defects of the customer’s equipment which may result in an accident or which endanger the life or safety of people. The heat supplier shall notify the interested heat customers and the municipality of the scheduled termination of heat supply agreed with the customers not later than 12 months prior to the scheduled termination date.
Article 18. Standard Terms of Heat Purchase-Sale Contracts
2. Standard conditions shall be in effect for heat purchase-sale contracts to the extent they are not contrary to the terms individually agreed on by the parties and to laws.
3. The following shall be established in heat purchase-sale contracts:
4. Standard terms of heat purchase-sale contracts shall be approved by the Government or the institution authorised by it and published in the official gazette “Valstybės žinios”. The standard terms of heat purchase-sale contracts concluded with domestic customers shall be approved by the Government or the institution authorised by it having agreed these with the National Consumer Protection Board under the Ministry of Justice and shall publish them in the official gazette “Valstybės žinios”.
Article 19. Maintenance of Heating and Hot Water Systems in a Building
1. The heating and hot water systems of multi-apartment buildings connected to the heat supply system shall be maintained by the controller of the system (operator) chosen by the owners of the apartments and other premises. A contract for the maintenance of the multi-apartment building heating and hot water system shall be concluded with the person. The contract shall be drawn up, on the decision of the owners of the apartments and other premises, by the board of the association of the owners of apartments and other premises (the association chairman), by the person authorised by the partners to the joint activities agreement concluded for the management of the facilities of common use or the administrator of the facilities of common use. The above contracts shall be drawn up according to the procedure established in paragraphs 1, 2 and 4 of Article 18 of this Law.
2. If the apartment owners have not decided on the choice of the controller of the heating and hot water system of the building and for this reason a contract for the maintenance of the system has not been concluded, then temporarily, till the choice is made, the heat supplier shall also be the controller (operator) of the heating and hot water system of the multi-apartment building, to the owners of whose apartments and other premises he supplies heat. The contracts for the maintenance of the heating and hot water system of the multi-apartment building shall be concluded separately from the heat and/or hot water purchase-sale contracts.
Article 20. Obligatory Requirements for Heating and Hot Water Systems in Multi-Apartment Buildings
1. The Government or the institution authorised by it shall set the obligatory requirements for heating and hot water systems in multi-apartment buildings
2.Obligatory requirements for heating and hot water systems in multi-apartment buildings shall include the customers’ technical possibilities to regulate heat consumption in the building. The refurbishment of the building in conformity with the obligatory requirements may be supported following the procedure established by the Government.
Article 21. Method of Heating of a Multi-Apartment Building
1. The owners of apartments and other premises in a multi-apartment building shall be heat customers heating the apartments and other premises by way of heating the building or by applying other technical solutions.
Article 22. The Right of the Heat Supplier or the Person Responsible for the Maintenance of the Heating and Hot Water System to have Access to Privately Owned Apartments and other Premises
1. The persons authorised by the heat supplier or the person responsible for the maintenance of the heating and hot water system, upon lodging a written request with the owner of the apartment and/or other premises, shall be entitled to enter the privately owned premises for inspection or repair of the heating and hot water system or meters as well as to suspend the delivery of hot water if the owner has arrears in payment.
2. 2. If the owners of apartments and/or other premises refuse to grant access, as requested in writing, to the authorised representatives of the heat supplier or person responsible for the maintenance of the heating and hot water system of the house, the heat supplier or the person responsible for the heating and the hot water system of the house, having registered the owners’ refusal of access according to the Rules of Provision and Consumption of Heat approved by the Minister of Economy, shall have the right to apply with respect to the evaluation of the quantity of heat consumed by the owners of the premises the methodology specifically established for such cases by the National Control Commission for Prices and Energy.
Article 23. Rights and Duties of a Heat Customer in a Multi-Apartment Building
1. The heat customer in a multi-apartment building shall have the right to:
1) together with other owners of apartments and other premises of the building choose or replace the person responsible for the heating and hot water system of the building;
2) individually or together with other owners of the apartments and other premises of the building take a decision to change the method of heating of the apartment, premises or the entire building and implement the decision following the procedure established by Articles 25, 26 and 27 of this Law;
Article 24. The Heat Supplier’s Rights, Duties and Responsibilities to a Domestic Customer
1. The heat and/or hot water supplier must sell to a domestic customer the quantity of heat and/or hot water provided for in the contract in accordance with the heat and/or hot water supply regimen agreed between the parties. The quantity of supplied and consumed heat and/or hot water shall be established according to the meter readings or in any other way defined in the contract.
2. The supplier of heat and/or hot water must ensure:
1) the technical condition of heat and/or hot water transmission network up to the supply and consumption boundary, in compliance with the requirements of legal acts;
2) the technical condition of commercial heat and/or hot water meters complying with the requirements of legal acts;
3. The heat and/or hot water supplier shall install commercial heat and/or hot water meters at the location indicated in the contract.
4. The heat and/or hot water supplier must compensate in the manner laid down by laws for the damage sustained by the domestic customer due to low quality heat and/or hot water.
Article 25. Termination of Heat Purchase-Sale Contracts on the Customer’s Initiative
1. The heat customers shall have the right to terminate the heat purchase-sale contracts according to the terms of their termination laid down in the contracts or, if the terms are not laid down in the contracts, according to the conditions and following the procedure specified by laws.
2. The domestic heat customers, except for those residing in multi-apartment buildings, shall be entitled to unilaterally terminate the heat purchase and sale contracts having notified thereof the heat supplier at least before a month. The owners of apartments and other premises in multi-apartment buildings shall agree with the municipality, according to the procedure laid down in Article 26 of this Law, their decision on the termination of heat purchase-sale contract and on the intended change of the method of heating of separate apartments and other premises in the building.
Article 26. The Municipalities’ Decision to Change the Method of Heating in Individual Apartments or other Premises in Multi-Apartment Buildings
1. The municipality shall take a decision on the applications of the owners of separate apartments or other premises to agree the termination of heat purchase-sale contract and the desired changing of the method of heating of separate apartments and other premises in multi-apartment buildings not later than within 30 calendar days from the day of registration with the municipality of the owner’s application.
2. If, upon the termination of the heat purchase-sale contract and upon changing the method of heating of the apartment or other premises on the application of the owner of the apartment or other premises, other owners of apartments or other premises in the building incur additional expenses, the municipality shall present to the concerned owner the breakdown of the expenses calculated according to the method of calculation of compensation for reserve capacity. In this case the municipality shall have the right to agree the termination of the contract and the change of the method of heating of a separate apartment or other premises in a multi-apartment building, for the heating whereof the heat supply system is used, for the interested owner of the apartment or other premises only after this owner and the board (association chairman) of the association of the owners of the apartments and other premises or the person authorised by the partners to the joint activities agreement concluded for the management of the facilities of common use or the administrator of the facilities of common use conclude a contract for the reimbursement of additional expenses to the owners of other apartments or other premises in the building.
Article 27. The Municipality’s Decision on the Changing of the Method of Heating for the Entire Building
1. The municipality shall, not later than within 30 calendar days from the day of registration with the municipality of the heat customer’s application, make a decision on the heat customer’s (or customers’ in multi-apartment buildings, hereafter – the customer’s) application to harmonise the termination of the heat purchase-sale contract and the intended changing of the method of heating in the entire building.
2. If the heat customer’s choice is not in keeping with the special plan of the municipal heat sector or if compliance with his request would increase the total heating costs determined in accordance with the economic evaluation methods of disconnection of heat customers’ equipment from heat supply systems (self-disconnection methods) approved by the Minister of Economy, also in view of the environmental impacts, the municipality shall have the right to defer the implementation of the building heating method chosen by the heat customer, presenting the heat customer with a justification of the decision.
3. According to paragraph 2 of this Article, the municipality shall have the right to defer, on the decision of the municipal council, the implementation of the building heating method which the heat customer is desirous to change, but for no longer than 2 years counting from the day of registration with the municipality of the heat customer’s application. The period of deferral shall depend of the effect of the disconnected customer’s equipment on the increase of average costs of the rest of customers of the heat supply system and shall be established based on the disconnection methods. After the expiration of the deferral period the municipality shall issue the heat customer with an authorisation to disconnect his heat equipment from the heat supply system.
4. If the changing of the method of heating of the building (disconnection of the heat customers’ equipment from the heat supply system) increases the average heat supply costs for the rest of the heat system customers, established according to the methods of self-disconnection, the municipality shall be entitled to agree the change of the method of heating of the building (disconnection of heat equipment) only provided the customer and heat supplier have presented an agreement on the compensation of the increased costs. The amount of the compensation provided for in the agreement shall not exceed the amount of compensation for reserve capacity payable by the disconnecting heat customer. The payment of the set compensation shall be started from the day of disconnection of the heat customer’s equipment from heat supply system and shall not be paid longer than for two years. In case the implementation of the heat customer’s request to change the building heating method has been deferred according to paragraph 2 of this Article, the provisions of this paragraph shall not be applied. The provisions of this paragraph shall not be applied with respect to the owners of apartments and other premises in multi-apartment houses.
Article 28. Heat Supply Licence
2. Heat supply licensing rules shall be approved by the Government. The heat supplier supplying annually not less than 5 GWh of heat shall be issued a heat supply licence by the National Control Commission for Prices and Energy, while the heat supplier supplying a smaller quantity of heat shall be issued a licence by the municipality.
Article 29. Permits for the Heat Equipment Maintenance Business
Permits for the heat equipment maintenance business shall be issued by the State Energy Inspectorate under the Ministry of Economy in accordance with the procedure laid down by the Minister of Economy.
Article 30. Heat Pricing
1. Heat and hot water prices shall be single-component or double-component. The heat customer shall pay for the consumed heat or hot water a single-component or double-component price, at his choice, set according to the procedure regulated in paragraphs 5, 6 and 7 of this Article.
2. The heat and/or hot water prices may be differentiated according to the heat supply systems, customer groups, the scope of heat consumption, heat carriers and their quality, reliability of supply, seasonal character, periodicity of consumption and accounting methods.
3. The heat and/or hot water prices shall be based on the supplier’s obligatory (state rationed) costs of heat or hot water preparation (purchase), transmission, installation, maintenance and verification of commercial heat and/or hot water meters, customer billing (issuing of payment notices) for heat and/or hot water as well as the accounting costs. The costs of heating of buildings and hot water system maintenance and refurbishment shall not be included in the heat and hot water prices.
4. The heat supplier selling not less than 5 GWh of heat energy per year shall prepare in accordance with the methods of pricing of heat and/or hot water and submit for approval to the National Control Commission for Prices and Energy the basic prices of heat and/or hot water for a not shorter than 3 year period. Organisations for the protection of heat customers shall be invited to participate in setting the basic prices. At the same time supply efficiency indicators shall be set. The basic prices set by the National Control Commission for Prices and Energy shall be published in the “Information supplement” to the “Official Gazette.” The heat supplier who has control over the heat supply systems located in different municipalities may submit for approval to the National Control Commission for Prices and Energy different basic prices for these systems. When submitting a proposal to set different basic prices for heat supply systems located in different municipalities, the heat supplier must submit such a proposal for all heat supply systems located in different municipalities.
5. Municipal councils shall set the following:
1) in accordance with the basic prices set by the National Control Commission for Prices and Energy as well as with the methods for setting heat and/or hot water prices - the heat and/or hot water prices to be charged by each heat and/or hot water undertaking controlled by the municipality and selling not less than 5 GWh of heat per year;
2) in accordance to with the methods of setting the prices of heat and/or hot water – the prices of heat and/or hot water supplied by the municipality controlled undertakings to be charged by every heat and/or hot water supplier selling less than 5 GWh of heat per year;
3) in accordance with the methods of setting maximum tariffs for the maintenance of heating and hot water systems in multi-apartment buildings, approved by the National Control Commission for Prices and Energy, the maximum tariffs for the maintenance of heating and/or hot water systems in multi-apartment buildings.
6. The suppliers of heat and hot water, selling not less than 5 GWh of heat per year, according to the basic prices set by the National Control Commission for Prices and Energy and according to the methods of price setting for heat and/or hot water, shall set, in the manner specified in the Articles of Association of the undertaking, the prices of heat and/or hot water supplied by the undertaking.
7. The suppliers of heat and hot water, selling less than 5 GWh of heat per year, shall, based on the methods of setting prices for heat and hot water, set, in the manner prescribed in the Articles of Association of the undertaking, the price of heat and/or hot water supplied by the undertaking.
8. The heat and/or hot water suppliers shall inform the National Control Commission for Prices and Energy of the set prices and tariffs and their justification within 10 calendar days from the date of fixing the prices and tariffs, but not later than 30 calendar days before their effective date. The National Control Commission for Prices and Energy shall advise the suppliers of the existing violations of price or tariff setting. The suppliers must do away with the violations within 30 calendar days. If the suppliers fail to do so, the National Control Commission for Prices and Energy shall acquire the right to unilaterally set the temporal prices. They shall be in effect until the specified violations are done away with.
Article 31. Maximum Heat Consumption Norms in Multi-Apartment Buildings
1. The National Control Commission for Prices and Energy shall set and, as necessary, change the maximum heat consumption norms for the heating of apartments and other premises in multi-apartment buildings. These norms shall be announced publicly. They shall be applied in multi-apartment buildings whose heating and/or hot water systems do not correspond to the obligatory requirements. The heat supplier shall not be entitled to demand that the owners of apartments and other premises in such buildings pay for the consumed quantity of heat an amount exceeding the maximum norms of heat consumption. At the residents’ request the State Energy Inspectorate under the Ministry of Economy shall determine whether or not the heating and hot water systems of the building comply with the obligatory requirements.
2. The municipality shall be entitled to obligate the owners of apartments and other premises in the building, where the established heat consumption norm was exceeded, to reconstruct the heating and/or hot water system according to the obligatory requirements. The period for which the obligation is imposed on the owners of apartments and other premises may not be shorter than 18 months.
Article 32. Accounting of Heat Supply Costs
1. If the heat supplier has control over more than one heat supply system, selling not less than 5 GWh of heat per year, the unbundled accounting of the costs in each system shall be carried out.
2. If the heat supplier, selling in a heat supply system not less than 5 GWh of heat per year also produces heat, he shall carry out the unbundled accounting of heat production and heat transmission costs. If the heat supplier also provides the heat customers’ heating and hot water systems with maintenance services, he shall carry out unbundled accounting of the maintenance costs.
Article 33. Harmonization of Investment Projects
Investment projects shall be harmonized in accordance with the procedure established by the National Control Commission for Prices and Energy.
Article 34. Preparation of Agreements
1. The municipality shall ensure a public discussion of drafted agreements on the transfer of management of the heat sector or its part.
Article 35. Requirements for the Transferee of Management
1. The management transferee shall carry out procurement in accordance with the Law on Public Procurement.
2. The management transferee who is supplying heat shall at least every 5 years harmonize the basic heat production and heat transmission prices with the National Control Commission for Prices and Energy. The provisions set forth in items 1 and 2 of paragraph 5 of Article30 shall not be applied to the entity.
3. At the expiration of the management transfer period, the value of the assets the management whereof was transferred shall not be less than at the moment of concluding the transfer agreement.
4. At the expiration of the management transfer period the transferee shall be prohibited to transfer together with the assets being transferred the undischarged financial commitments or other obligations connected to the management of the transferred assets.
5. The amount of investments made by the transferee during the management period into the assets, the management whereof has been transferred, shall be specified in the agreement for the transfer of management. It shall be calculated as the increase in value of the assets during the management period, adding the financial commitments related to the assets which, according to the agreement, had to be paid by the transferee regardless of the increase in value of the assets due to their indexation during the management transfer period.
Article 36. Entry into Force of the Law