REPUBLIC OF LITHUANIA
LAW ON HEAT SECTOR
20 May 2003 No IX-1565
Vilnius
( A new version of 20 November 2007 No X-1329)
(as last amended on 12 May 2009 No XI –250)
Article 1. New Version of the Law of the Republic of Lithuania on Heat Sector
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 consumers, their interrelationship and responsibility.
2. Objectives of the Law:
5) when producing heat, to increase the use of indigenous fuel, bio fuel and renewable energy resources;
Article 2.Definitions
1. Heat supply system shall mean the organisational-technical complex designated to produce and supply heat to the consumers, which is controlled by the heat supplier and consists of the heat transfer system and one or more heat producers connected to the system.
2. Method of Supply with hot water shall mean the buying from hot water supplier of centrally produced hot water or buying of heat for producing hot water and the purchase of drinking water for producing hot water from the supplier of drinking water or the individual production of hot water at the place of its consumption using other energy sources (gas, electricity, solid fuels) for heating drinking water up to the temperature set by the hygiene standards.
3. Commercial hot water meter shall mean the appliances for metering commercial amount of hot water consumed by the consumers according to the readings whereof payments shall be made to the supplier for the consumed hot water.
4. according to the readings of which whereof payments shall be made to the supplier for the consumed heat.
5. Combined heat and power production (cogeneration) shall mean the production of heat and electric energy during a combined technological cycle.
6. Combined heat and power producer shall mean an undertaking or its establishment whose principal activity is heat and power generation.
7. Domestic heat consumer shall mean a natural person using heat and/or hot water for his residential needs.
8. Hot water shall mean water prepared from drinking water by heating it to the temperature set by the hygiene standards.
9. Hot water supplier shall mean a legal person supplying hot water to the consumers according to purchase-sale contracts.
10. Supply of hot water shall mean delivery of hot water prepared in a centralised manner and its sale to hot water consumers.
11. Variable component of hot water price shall mean the changing component of hot water expressed in an equation which is applied not more often than once a month when calculating the specific amount of the component taking into account the changes of price of the supplied heat and drinking water.
12. Variable component of basic price of heat shall mean the variable part of the basic price of heat expressed in an equation adjusted annually taking into account the changes of the fuel structure and tasks of operational efficiency set by the National Control Commission for Prices and Energy according to the description approved by the Comparative Analysis Description and applied not more often than once every month estimating the specific amount of the specific variable component taking into account the changes of fuel and prices of heat bought from independent producers.
13. 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 consumer who uses the heat supply system as the reserve heating method
14. Competitive heat consumer shall mean heat consumer within the competitive zone of heat supply established in the special plan of the heat sector approved by the municipal council or any other heat consumer set by the National Control Commission for Prices and Energy consuming more than 1 percent of the amount of heat sold last calendar year.
15. Notice of payment for heat shall mean the information notice prepared for the domestic consumer by the heat supplier in the form prescribed by the Government or by the institution authorised by it and having the mandatory particulars of accounting documents, regarding the calculated amounts payable by the consumer for the heat supplied for heating and/or for the production of hot water supplied to it during the billing period
16. Consumers entitled to continuous supply with heat shall mean the institutions of the Government or those authorised by it, the agencies and organisations provided for in the lists approved by municipalities, for whom the continuous supply with heat is indispensable.
17. Retained amount of hot water shall mean the difference between the amount of drinking water for producing hot water exceeding the permissible error of metering data measured by the inlet in the apartment block and the total metering data of hot water of the apartment block.
18. Independent heat producer shall be a legal person producing and selling heat and/or hot water to a heat supplier or, holding a heat supply licence, to the heat consumer.
19. 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 appliances installed in the hot water supply system
20. 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. The inlet of the building shall separate it from suppliers’ network.
21. Supervisor (operator) of heating and hot water system of a building shall mean a natural or legal person or a branch set up in Lithuania by a legal person or any other organisation of the state which is a signatory of the EEA, who are engaged in the business of supervision (operation) of systems and certified according to the established procedure
22. Fixed component of hot water price shall mean the fixed portion of hot water price calculated for the period of effectiveness of hot water price.
23. Fixed component of basic price of heat shall mean the fixed portion of basic price of heat applied in the second and other years of its effectiveness when recalculating its fixed amount for the year.
24. Heating bill shall mean the document complying with the Law of the Republic of Lithuania on Principles of Accounting indicating the amount of heat or hot water supplied to the consumer during the settlement period, the price thereof and the amount payable by the consumer.
25. Heating season shall mean time period the beginning and end whereof shall be established by the resolution of the executive institution of the municipality in accordance with the outdoor temperature defined by Construction Technical Regulations prescribing the time when it is mandatory to start and when it is permitted to terminate the heating of certain municipal buildings.
26. Heating medium shall mean specially prepared water, hot water, steam, condensate, other liquid or gas used to transfer heat energy.
27. Basic price of heat shall mean long term price of heat composed of fixed term and variable basic price of heat components calculated according to the methodologies approved by the National Control Commission for Prices and Energy for the recording of prices of heat and hot water for a period not shorter than 3 years and not longer than 5 years. The said period shall be chosen by the municipal councils or in the cases provided in paragraphs 11 and 12 of Article 32 of this Law - by the undertakings. Both components of the price shall be applied for calculating heat prices.
28. Heat dividers shall mean indirect measuring appliances the system whereof together with the accounting appliance as an additional part shall be used for allocating the measured energy amount.
29. Binomial price of heat shall mean the price of heat consisting of the following components: the fixed amount payable in litas for kW per month and the variable component payable in centas for kWh per month.
30. Heat and/or hot water consumption purchase-sale agreement shall mean the agreement concluded between the heat supplier or producer and the domestic consumer or the legal person consuming heat and/or hot water in rooms with no commercial heat and/or hot water meters installed.
31. Heat unit shall mean a complex of technical measures for the production, transmission or storage of heat and/or hot water.
32.Heat inlet shall mean the heat transfer arm, the shut-off and accounting appliances inclusive, connecting the heat installations and heat transfer network
33. Heat transfer shall mean transmission of heat by heating medium through the heat trans pipeline.
34. Heat transfer network shall mean the system of interconnected pipelines and appliances assigned to transmit heat by the heating medium from the heat producer to its consumers.
35 Place of heat purchase-sale shall mean the place of piping of the heating medium where the supplier sells heat to the consumer.
36. Heat point shall mean the facility of heat transfer network transforming the heat received with the heating medium for the delivery to the heating appliances of the building.
37. Heat supplier shall mean a legal person supplying heat to the consumers under purchase-sale agreements.
39. Heat supply licence shall mean the document granting the licence holder the right to get involved in the heat supply business in a defined service area.
40. Termination of heat supply shall mean the dismounting of pipelines through which the heating medium is transmitted thus making the heat supply technically impossible.
41. Heat Sector Development Plan shall mean the Government Programme Document for implementing national energy strategy in the heat sector.
42. Special plan of the heat sector shall mean the special planning document of municipalities defining the existing and projected new areas of heat consumers, identifying the possible and alternative methods of heating and the purpose of which is satisfying the consumers’ needs for heat at lowest costs and within the limits of permissible environmental impact.
43. Heat sector shall mean a component part of the energy sector directly connected with the production, transmission, supply and consumption of heat and hot water.
44. Heat consumer shall mean a legal or a natural person whose heating appliances are connected in the prescribed manner either to the heat transmission network or to the heating of buildings and hot water systems .
45. Monomial price of heat shall mean the price of heat composed of the fixed and variable components paid in centas for a
46. Supply-consumption limit shall be the place of the heating medium piping up to which the supplier delivers heat to the consumer.
47. 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 agreement or other agreement for the transfer of management.
CHAPTER TWO
MANAGEMENT OF THE HEAT SECTOR
Article 3. Competition in the Heat Sector
1. Competition between the suppliers of alternative energies for satisfying the consumers’ heat demand shall be implemented taking into account the suppliers’ special plans in the heat sector, meeting the consumers’ needs at the lowest cost, ensuring safe supply and not exceeding the permissible negative impact on the environment according to the emission norms in force and reviewing the external costs as well as other measures prescribed by law. The consumers of heat shall have the right to choose heat suppliers of alternative energies, to install the local heating system provided this does not run counter to the territorial planning documents.
3. The hot water preparation and supply shall be based on the competition when the consumers choose the supplier of hot water or the method of being supplied with hot water. The National Control Commission for Prices and Energy and municipal institutions shall provide for the measures to promote competition in hot water sector and ensure their implementation.
Article 4. Promotion of Cogeneration as well as Heat Production from Bio fuel and Renewable Sources of Energy
2. The Government or the institution authorised by it, taking regard of the necessity to efficiently use electric energy and heat production capacities, shall set the scope of and procedure for the procurement of electricity from co generators of heat and electricity.
Article 5. The Right of the Organisations Protecting the Rights of Heat Consumers to Control the Activities of Heat Suppliers
The organisations and institutions protecting the rights of heat consumers shall be entitled to obtain from heat suppliers and producers as well as state and municipal institutions information on the activities of supply and production of heat, the services offered and other information necessary for protecting the rights of heat consumers and for submitting tenders to state and municipal institutions.
Article 6. Heat Board
1. The Heat Board shall be a collegiate body having an advisory right and operating on a voluntary basis composed of a group of representatives of institutions and organisations directly related to heat sector (including the non-governmental organisations protecting the rights of consumers) submitting proposals to the minister of energy on material issues of heat sector strategy.
Article 7 Special Plans of the Municipal Heat Sector
1. Municipalities shall manage the heat sector according to the special plans of the municipal 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 the heat sector special plans approved by the Law on Territorial Planning, this Law and by the Ministers of Environment and of Energy.
3. The main objective of the heat sector special plan shall be to meet the consumer needs at the lowest cost and not exceeding the permitted limit of the negative impact on the environment. 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 (building density, compactness of the building area, the number of storeys, the specifics of the development), as well as other criteria which do not endanger the principle of technological neutrality. The existing and planned new territories of heat consumers shall identify the important technical solutions on the use of alternative energy or fuel prescribed for this particular territory in order to meet the needs of heat of the consumers of this particular territory.
4. The special plan of the municipal heat sector shall be drawn up with the participation of heat, electricity and gas supply undertakings located in the municipality territory and other entities related to the heat sector as well as the organisations protecting the rights of heat consumers. Electric, geothermal and other organic heat sources may be throughout the territory of the municipality.
5. Special plans of the heat sector shall be adjusted at least every 5 years having regard to the technological development of heat production and transmission, competitive environment, heat production price movements, changes in the environmental contamination and other factors of relevance for territorial planning.
Article 8.Special Plans of the Municipal Heat Sector and National Energy Targets
1. For implementing the state strategy of the heat sector and for harmonising the decisions provided for in the special plans of the municipal heat sector the Government shall approve, on the recommendation of the Minister of Energy, the heat sector development directions.
2. Special plans of the municipal heat sector shall be in conformity with the state strategy, national energy goals and the heat sector development directions approved 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 consumers according to their needs for heating, ventilation of the premises, and of hot water preparation.
Article 10. Buying up of Heat from Independent Producers
1. The suppliers of heat shall, according to the procedure established by the Government for the buying up of heat into the heat supply systems, buy up from independent producers heat which meets the quality, reliability of supply, environmental 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 buy up heat proposed by the independent heat producer meeting the set requirements, 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 National Control Commission for Prices and Energy shall examine the complaints by the independent heat producer or heat supplier according to pre-litigation procedure.
Article 11.The Place of Purchase-Sale of Heat and the Supply-Consumption Limit between the Heat Supplier and Heat Consumer
1. . The heat supplier shall be responsible for the delivery to the heat consumer of the heating medium of the specified quality up to the supply and consumption limit. The contracts with the consumer must comply with the provisions of the Civil Code and other legal acts regulating the drawing up of consumer contracts.
2. The place of purchase-sale of heat and the supply-consumption limit shall be set in the pipeline of the heating medium where the supplier’s appliances are connected to the consumer’s appliances or to the appliances owned by the consumer or belonging to the consumer by joint-partial ownership right. The accounting appliances shall be installed at the place of heat purchase-sale. If there is no technical possibility to install the accounting appliances at the place of heat purchase-sale, the costs of heat losses incurred in the sections between the place of heat purchase-sale and the accounting appliance shall be borne by the owner of piping. The supply-consumption limit may be set by contracts in the place other than the place of heat purchase-sale.In such case the additional costs of delivery of heat up to the supply-consumption limit by the appliances owned by the consumer or belonging to him by joint-partial ownership right shall be covered by these consumers. For the purpose of choosing the heat supply-consumption limit priority shall be given to a domestic heat consumer.
3. If the heating medium delivered to the building is also released to the heating, ventilation and/or hot water appliances installed in the building, the heat supplier shall have the right, having filed a written request with the owners of the building, to verify whether or not there are any leaks in the heating medium in any place of heating or hot water system of the building.
Article 12. Settlement with Heat Supplier
1. The heat consumers shall fully remunerate the heat supplier for the used heat according to the readings of commercial heat and/or hot water meters installed at the place of purchase-sale of heat.
2. If there are more than one heat consumer in the building, the entire amount of heat consumed in the building shall be assigned (divided) among the consumers, and every consumer shall pay for the amount of heat assigned to him, having measured, assessed or otherwise established, according to the methods recommended to apply or otherwise harmonised with the National Control Commission for Prices and Energy, what share of all jointly consumed heat is attributed to the heat consumer. The heat consumers shall choose the method of measuring, establishing or assessing the shares according to the procedure set by the Civil Code for decision-making from the methods recommended for application by the National Control Commission for Prices and Energy. Other methods may be applied only upon their harmonisation with the National Control Commission for Prices and Energy. Until the consumers have chosen the method, the method of heating the building and hot water system as well as the installed commercial heat and/or hot water meters, corresponding to the installed hot water meters, shall be applied.
3. The document of settlement shall be the heat bill. Accurate, clear and detailed information must be presented in the bill made out to the domestic consumer on the basis whereof the heat supplier calculated the payment amount the consumer has to pay for the heat used for heating the premises and for the amount of heat used by him for the heating of hot water as well as for maintaining the temperature of the water. The submitted information must be sufficient for the consumer to be able to check whether the fees have been correctly calculated for him. The municipal institutions shall be entitled to determine that domestic heat consumers be issued notice of payment for heat instead of the heat bill. At the request of the domestic consumer of heat the supplier of heat must issue the heat bill after the consumer pays for the supplier‘s additional costs related to the supply account. On the demand of the domestic heat consumer the heat supplier must issue the bill after the consumer covers the supplier’s costs related to heat bill. The municipal institution determines that the domestic heat consumer should be issued notices of payment for heat services instead of heat bills, the heat price shall be excluded from the consumer's billing costs for heat and their presentation to the consumer.
Article 13. Seasonal Character of Heat Supply
1. The heat consumers 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 consumers 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 publicly inform the heat supplier of their decision according to the procedure laid down in the Heat Supply and Consumption Rules approved by the Minister of Energy and the heat supplier shall implement the decision not later than within 2 working days.
3. During the heating season the heating medium must be delivered for heating the apartments and other premises in an apartment block. The apartments and other premises shall be heated if this is not objected to by the majority of the owners of the apartments in the building, who are not in arrears in payment to the heat supplier for heat.
Article 14. Suspension of Delivery of Heat and/or Hot Water to Heat Consumers 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 consumer 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 consumer who has arrears in payment.
2. The heat supplier’s obligation to notify in writing the consumer 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.
Article 15. Organising the Supply of Hot Water in Apartment Blocks
1. The consumers in apartment blocks may choose the method of supply with hot water or the supplier of hot water according to the procedure established in Article 4.85 of the Civil Code and conclude with him a contract for the purchase-sale of hot water. The chosen supplier of hot water shall install commercial meters of hot water consumed by the consumer, shall conclude contracts and buy drinking water necessary for heating the hot water and heat or any other energy from the relevant suppliers. The amount of bought drinking water shall be determined according to the readings of commercial hot water meters installed by the hot water supplier in the building before the hot water appliances, and in the absence of such or if it is broken according to the norms approved by the National Control Commission for Prices and Energy. The amount of hot water sold to the consumers shall be determined according to the readings of hot water meters installed in the premises of consumers. The price of hot water, the procedure of delivering the notices of the consumed hot water and payment for the consumed hot water shall be set in the contract between the supplier and consumers of hot water. Setting the fees for hot water the amount of heat consumed with the retained hot water may be attributed and allocated for payment to the consumers only in case the suppliers have met all their obligations concerning putting in order the accounting of heat in the building. In case the consumers of the apartment block choose the heat supplier as their hot water supplier, the supplier of heat must conclude with consumers of the apartment block a hot water purchase-sale contract.
2. Until the consumer chooses the supplier of hot water or the method of supply of hot water, hot water shall be supplied by the supplier of heat. The hot water supplier shall install in apartment blocks and other premises hot water meters, monitor the meters and carry out the conformity check on the apartment blocks, if contracts for installing, supervising and carrying out conformity check on them in apartment blocks if contracts concluded before the entry into force of this law do not provide otherwise ..
3.The municipal council shall set the fee for servicing the hot water meters according to the methodology approved by the Commission.
4. The temperature, pressure and hygiene indicators of hot water must be in keeping with the requirements laid down by legal acts. The mutual relations, competence, rights and duties in the system of hot water supply of heat, hot water suppliers and the operator of the building heating and hot water system shall be established in the Heat Supply and Consumption Rules approved by the Minister of Energy.
Article 16. Responsibility for Commercial Heat and Hot Water Meters
1. The supplier of heat shall bear the cost of installing heat meters, ensure their appropriate technical condition, the established accuracy of measuring and organise the control..
2. In the apartment blocks commercial heat meters shall be installed at the place of purchase – sale of heat.
3. If there are technical possibilities in apartment blocks and the consumers so desire, the heat suppliers shall install at the consumer’s residence or in other premises the meters of consumed heat at the supply-consumption limit. The costs of installing, monitoring and control of these meters shall be included in the costs of sale of heat or the consumers of a separate group may be charged separately. The readings of these accounting meters shall be used to divide the amount of heat established by the meters to domestic heat consumers.
4. The supplier of hot water or in the case established in paragraph 2 of Article 15 of this Law or the current supplier shall install in the consumer’s residence or in other premises hot water meters at the place of supply-consumption limit. The costs of installing, monitoring and control of these accounting appliances shall be included in the cost of servicing hot water accounting meters. The readings of these meters shall be used for settlement with hot water suppliers for the amount of drinking water consumed for heating hot water and the amount of heat consumed with hot water for dividing it among the domestic heat consumers.
5. The heat and hot water accounting meters as well as the instruments registering the parameters of the heating medium delivered to the heat point of the building shall be the object of control of the Lithuanian Metrology Inspectorate. The Lithuanian Metrology Inspectorate shall control the terms of control of these instruments.
6.The conditions for gaining access, according to the procedure established by laws to the premises belonging to the consumer of heat and/or hot water by persons authorised by the supplier of hot water and/or heat or the supervisor (operator) of heating and hot water system of a building shall be established in the contracts, so that they could monitor and check the accounting heat and hot water meters.
Article 17. Consumers Entitled to Uninterruptible Heat Supply
The consumers entitled to uninterruptible heat supply must be ensured of technical possibilities of uninterruptible supply of heat when it is temporarily not possible to make use of the main system of heat supply The uninterruptible heat supply shall be secured either by connecting the heat consumer’s appliances by separate feeders to the parts of heat transmission network that, in case of technical failure, may be operated autonomously or by installing reserve heating facilities. When reserve heat facilities are installed, the consumers entitled to uninterruptible heat supply shall be considered making use of both the main source of heat supply and the reserve heat supply method for heating their building. In case the consumers of uninterruptible heat supply are using the heat supply system only as the reserve type of heating, they shall pay the heat supplier a compensation for the reserve capacity. The Ministers of Environment and of Health shall establish a list of healthcare institutions for which reserve heating facility is necessary
Article 18. Termination of Heat Supply
1. The heat supplier shall be entitled to terminate heat supply only in agreement with the consumers, except in cases when the State Energy Inspectorate under the Ministry of Energy establishes defects of the consumer’s appliances which may result in an accident or which endanger the life or safety of people. The heat supplier shall notify the interested heat consumers and the municipality of the scheduled termination of heat supply agreed with the consumers not later than 12 months prior to the scheduled termination date.
Article 19. 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 consumers 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 (hereafter – the Board) and shall publish them in the official gazette “Valstybės žinios”.
5. If the owners of an apartment block do not decide on the conclusion of purchase-sale contracts according to the individually discussed terms, temporarily, until the contracts are concluded, the interrelations between the suppliers and consumers shall be based on standard terms of heat purchase-sale contracts concluded with domestic heat consumers.
Article 20. Supervision of Heating of Buildings and Hot Water Systems
1. The heating and hot water systems of apartment blocks connected to the heat supply system belonging by the right of common joint ownership to the owners of flats and other premises must be supervised (operated) by the controller of the system (operator). He shall be chosen according to the procedure of decision-making established in Article 4.85 of the Civil Code by the apartment block operator of joint-partial ownership right – the community of apartment block owners or the owners of flats or other premises and conclude with him a civil contract for heating the apartment block and for supervising (operating) the hot water system. A contract for the maintenance of the apartment block heating and hot water system shall be concluded with the person. The community of owners of apartment block and/or the administrator of objects of communal use may be the supervisor (operator) of heating of the building and hot water system.
2. If the apartment owners do not decide what supervisor of heating and hot water system they should choose and for this reason the contract of supervision of the system is not concluded, the heating and hot water system shall be temporarily, until such an operator is chosen, supervised by the current operator. The contracts for heating and supervision of hot water system of the apartment block and the contracts for consumption purchase-sale of heat shall be concluded separately
3. The supervision of heating and hot water system of the building shall be performed according to the procedure established by the Government or the institution authorised by it.
Article 21. Institutions Adjudicating Disputes, their Rights and Duties
1. Disputes arising from contractual relations between domestic consumers and heat and hot water suppliers, suppliers of care services, out-of-court adjudication of disputes shall be performed by the following state and municipal institutions:
1) State Energy Inspectorate under the Ministry of Energy – on the failures of energy objects, appliances, and accounting instruments, requirements of operating, energy quality, energy accounting and payment for the infringement of the consumed energy, accidents, energy disconnections, energy suspension or limitation, on the act or omission of the supervisor of heat or hot water systems;
2) the National Control Commission for Prices and Energy – for the acts or omission of energy enterprises supplying, distributing, transmitting, storing the energy, on the refusal to let them use the network and systems, on the joining, on the balancing of energy delivery flows, price and tariff application;
3) The executive institution of the municipality – for the organisation of heat and hot water supply, on the setting of tariffs of apartment block heating and hot water system supervision, for setting the powers of officials performing administrative oversight and the procedure for performing the oversight;
Article 22. Notifying the Consumers
1. Heat and/or hot water supply enterprises shall notify the consumers of the services provided by the enterprise, the conditions of providing the services, the charges for the provision of services, the terms and conditions of connecting to the systems and the projected amendments to contract conditions.
2. Heat and/or hot water supply enterprises and independent producers of heat provided in paragraph 3 of Article 10 of this Law shall annually publicly notify the consumers of the set components of heat and hot water price. The components of price shall come into effect as from the first day of next month.
3. As the prices of heat and/or hot water change, the producers of heat and/or hot water and the independent producers of heat provided for in paragraph 3 of Article 10 of this Law shall by the 25 day of the month publicly inform the consumers, the municipalities and the National Control Commission for Prices and Energy of the calculated heat and hot water prices. The prices for heat and hot water shall enter into effect on the first day of the next month.
Article 23. Obligatory Requirements for Apartment Block Heating and Hot Water System
1. The Government or the institution authorised by it shall establish the obligatory requirements of apartment block heating and hot water system.
2. Obligatory requirements of apartment bock heating shall cover the consumers` technical possibilities to regulate the consumption of heat in the apartment block. The change of the apartment block according to obligatory requirements must be supported according to the procedure established by the Government.
Article 24. Facilities of Apartment Block Heat Point
1. The owners of flats and premises in apartment block shall manage, use and dispose of the heat facilities of the heat point by the right of joint ownership.
2. If the owners of flats and premises in apartment block do not manage the heat facilities of the heat point by the right of joint ownership, the right of joint ownership may be acquired:
1) by buying up from third persons, according to the procedure of hire-purchase of things prescribed by the Civil Code, the renovated facilities of heat points in accordance with the residual value of the facilities;
Article 25. Settlement for Heating of General Use Premises of Apartment Block
The owner of a flat and/or other premises of an apartment block shall bear the costs of the proportion of heat born by him, used for heating general use premises of the apartment block; whatever the method used to heat the premises owned by him.
Article 26. The Right of Heat Supplier, Supervisor of Heating and Hot Water System or Supplier of Hot Water to Enter the Flat and other Premises Belonging to the Owners of these other Premises
1.The persons authorised by the supplier of heat, the supervisor of heating of the house and hot water system or the supplier of hot water shall have the right, having presented a written application not later than before 24 hours to the owner of the flat and/or other premises, to enter the premises owned by the owner for examination or repairing heating and hot water system or instruments of accounting as well as suspend the supply of hot water to an over-indebted owner.
2. If the owners of flats and/or other premises refuse entry to persons authorised by supplier of heat, supervisor of heating of the building and hot water system or representatives authorised by the supplier of hot water according to the submitted written application to the premises belonging to the owners, the supplier of heat, the supervisor of heating of the building and of the hot water system or the supplier of hot water, having recorded the owners` refusal according to the Heat Supply and Consumption Rules approved by the Minister of Energy shall have the right to establish the amount of heat and hot water consumed by the owners of these premises in accordance with the methodology set for such cases by the National Control Commission for Prices and Energy.
Article 27. Rights and Duties of a Heat Consumer in an Apartment Block
1. A consumer of heat in an apartment block shall have the right to:
1) set up, together with other owners of flats and other premises of the building,. according to the procedure established by law the Association of Apartment Block Owners or conclude a joint activity agreement regarding the heating of the building and management of the hot water system and other objects of common use;
2) decide together with other owners of apartment block flats and other premises to change the method of heating the entire building, its chapter or block;
3. Heat consumers in apartment blocks must pay the portion of expenditure related to heating of the building and renovation of hot water system so that it would comply with the obligatory requirements.
4. If it has not been established otherwise by agreements, the decision concerning the amount of hot water supplied in apartment blocks provided that it does not conflict with the requirements set by legal acts, the supervisor of heating of the building and hot water system (operator) shall take the decisions having regard to the applications of heat consumers that are not indebted.
5. Unless otherwise agreed by the owners of apartment block, heating in the apartment block shall be regulated in such a way that it would comply with the hygiene norms established by legal acts in flats which meet the technical requirements of construction related to heat saving and in which the ordinary heat saving measures are implemented.
6. Implementing the rights and duties of heat and hot water consumers provided for in this and other articles of this law on the supply of energy (by heat and hot water), on the heating of the building and management of hot water system, the solutions of heating of the building and hot water system management and use shall be adopted mutatis mutandis according to the procedure established in Article 4.85 of the Civil Code according to the decision making procedure established in the Article.
Article 28. Rights, Duties and Responsibility to Domestic Consumer of Heat and/or Hot Water Supplier
1. The supplier of heat and/or hot water must sell to the domestic consumer of heat the amount of heat and/or hot water provided for in the contract complying with the heat and/or hot water supply arrangements harmonised by the parties. The amount of supplied and consumed amount of heat and/or hot water shall be established according to the readings of accounting instruments or in other way prescribed by the treaty.
2. The supplier of heat and/or hot water must ensure:
1) the state of repair of the network of transmission of heat and/or hot water complying with the requirements of legal acts;
2) the state of repair of commercial heat and/or hot water meters complying with the requirements of legal acts;
3. The supplier of heat and/or hot water shall install in the specified locality of the project of the structure (or its part) commercial heat and/or hot water meters.
4. The supplier of heat and/or hot water shall compensate in the manner established by law for the damage incurred by the domestic consumer due to sub-standard heat and/or hot water.
Article 29. Termination of Heat Purchase - Sale Contracts on the Consumer‘s
Initiative
1. The heat consumer, having changed the method of heating of the flat (flats), other premises and supply with hot water, shall have the right to terminate the contract for the purchase-sale of heat and/or hot water. The method for heating the flat (flats) and other premises shall be changed according to the procedure established by the Law of the Republic of Lithuania on Construction when renewing the building (engineering systems).
2. When after renovating the building (engineering systems) the heating of the entire building or the method of serving hot water is changed, the contracts of the owners of flats and other premises and of the supplier of heat and/or hot water shall be considered terminated from the moment of recognition of the building as fit for use.
3. When after renovating the building (engineering systems) the heating of not the entire building or the method of serving hot water is changed, from the moment of recognition of the building as fit for use the contracts of the owners of the flats and other premises whose method of heating has been changed and of the supplier of heat and/or hot water shall be considered terminated. The owners of these flats and other premises shall pay to the suppliers of heat and/or hot water according to the procedure approved by the Minister of Energy
CHAPTER NINE
LICENCES AND PERMITS
Article 30. Licensing of Activities in Heat Economy Sector
2. The procedure and rules for issuing licences shall be approved by the Government. The licences for the supplier of heat supplying at least 10 GWh heat per year, taking into account the recommendations of municipal institution shall be issued, their validity shall be suspended, the licensed activities shall be controlled by the National Commission for the control of prices and energy. The licences for the supplier of less heat shall be issued, suspended, cancelled and the institute of the municipality shall control the licensed activities.
3. The licences shall be issued taking into account the security of activities, reliability, the principles of effectiveness and non discrimination.
4. The licence holder must implement the following conditions of the licensed activities:
1) ensure the risk of operating activities. The amount of insurance must be not less that the amount of licensed activities used for licensed activities;
2) ensure the development of operating network, connect the consumers` and producers` equipment located in their territory to heat transmission network according to appropriate standard documents;
3) supply heat at the prices set in compliance with pricing methodology of establishing Heat and Hot Water Pricing approved by the National Control Commission for Prices and Energy;
4) handle separate from other types of activity accounting of heat supply costs, perform the audit of licensed activities costs and publicly announce the data about the costs of heat production and heat transfer costs;
5) coordinate with the institution, which issued the licence the plans of management and operation of assets and submit according to the established procedure to the institution that issued the licence information about the plans of management and operation of held assets and submit according to the established procedure to the institution that issued the licence information about their implementation;
7) submit to state and municipal institutions information necessary for the implementation of duties established by laws and other legal acts. The supplier of heat must submit the required information within ten working days from the receipt of the demand, if there are no valid reasons for which a longer term is established.;
Article 31. Certification of Supervisors (Operators) of Heat Equipment
The persons supervising (operating) heat equipment shall be certified according to the procedure established by the Minister of Energy by the State Energy Inspectorate under the Ministry of Energy.
Article 32. Heat Pricing
1. Heat prices shall be monomial or binomial. The heat consumer shall pay for the consumed heat energy according to the monomial or binomial price alternatively set according to the procedure referred to in paragraphs 5, 6 and 7 of this Article.
2. The prices of heat and/or hot water shall be based by the supplier on the necessary prices (rationed by the state) of the preparation (buying), transfer, installation of heat and/or hot water commercial meters, their review and inspection, preparation of accounts (payment notices) for heat and/or hot water and presentation to the consumer as well as accounting costs. The costs of heating of the buildings and of the supervision and reconstruction of hot water systems as well as the property rents not related to the activities of supply of heat and/or hot water may not be included in the prices of heat and hot water. Income from emission trading allowances or their costs shall be assessed calculating the prices of heat according to the procedure established in the methodology of setting the prices of heat.
3. In view of the sustained losses the costs of heat may be differentiated according to heat supply systems, consumer groups, the place of purchase-sale of heat, the ownership of heat point, and the supply-consumption limit, the scope of heat consumption, heating mediums and their quality, the reliability of supply, the seasonal character, periodicity of consumption and types of accounting. When differentiating the prices, cross-subsidisation between groups of consumers shall be prohibited.
4. The supplier of heat who annually sells at least 10 GWh of heat, shall, according to the methodologies of pricing and taking into account the notes of municipal institution and the National Control Commission for Prices and Energy, prepare and present to the National Control Commission for Prices and Energy and the municipal institution a draft of the heat reference price. The municipal institution shall not later than within 30 days present to the Commission documents of the harmonisation of the reference price and/or valid notes. The Commission having considered the valid notes of the municipal institution or having failed to receive the notes within 30 days shall not later than within 15 days set the Basic price of heat. The organisations protecting consumer rights shall be invited to participate in setting the Basic price of heat. At the same time the supply effectiveness indicators shall be set. The National Control Commission for Prices and Energy shall announce the set Basic price of heat in the “Information messages”- a supplement to “Vaklstybės žinios” (the official gazette). The heat suppliers managing the heat provision systems located in separate municipalities, may propose to the National Control Commission for Prices and Energy to set different reference heat submission systems the prices of heat for these systems. The heat supplier, submitting a proposal concerning separate reference prices of heat to heat supply systems located in different municipalities must present it concerning all heat supply systems located in different municipalities. The heat supplier or the municipality shall have the right to lodge an appeal in court against the National Control Commission for Prices and Energy regarding the set reference prices of heat.
5. The municipal councils shall set:
1) in accordance with the Basic price of heat set by the National Control Commission for Prices and Energy and the methodology of setting the heat prices – the components of heat prices for each supplier of heat, annually selling at least 10 GWh of heat. In the first year of validity of reference prices of heat the municipal council shall not later than before at least 30 days set the components of heat price, taking regard of the reference prices of heat set by the Commission. The prices for heat set by the municipal council shall be valid not longer than 12 months from the day of their entry into force. If the municipal council fails to set the heat prices for the first year of validity of the reference prices during the specified period, the Commission shall unilaterally set the heat prices equivalent to reference heat prices. The components of heat prices set unilaterally by the Commission shall be announced publicly and applied from the first day of the next month. The appeals concerning the components of heat prices set by the municipal council shall be reviewed according to pre-litigation procedure by the National Control Commission for Prices and Energy;
2) in accordance with the Methodology of Setting Heat Prices – the reference prices of heat and annually revised components of heat prices and to every supplier of heat who annually sells less than 10 GWh of heat and informs thereof the National Control Commission for Prices and Energy not later than within 10 working days. The appeals concerning the components of heat prices set by the municipal council shall be reviewed according to pre-litigation procedure by the National Control Commission for Prices and Energy;
3) the components of heat prices set by the municipal council shall be valid not longer than 12 moths from the days of their entry into force;
4) in accordance with the methodology of establishment of maximum tariffs of apartment block heating and supervision (operation) of hot water systems approved by the National Control Commission for Prices and Energy set the maximum tariffs of apartment block heating and hot water systems supervision (operation). The tariffs shall be differentiated taking into account the ownership right of facilities installed in the apartment block.
6. The suppliers of heat annually selling at least 10 GWh of heat shall present to the National Control Commission for Prices and Energy and the municipality the recalculated drafts of heat price components and their substantiation, other suppliers of heat – only to the municipality. The municipal council shall within 30 days set the components of heat prices.
7. The suppliers of heat selling at least 10 GWh of heat shall present to the National Control Commission for Prices and Energy within 10 calendar days from the establishment of the heat price components. The Commission shall specify to the municipality the existing violations of establishment of heat price components. The municipality must eliminate them not later than within 30 calendar days. If the municipality fails to eliminate the specified violations or to timely establish the heat price components, the Commission shall become entitled to unilaterally establish the provisional heat price components. They shall be in effect until the violations specified by the Commission are eliminated but not longer than 12 months from the day of their coming into force.
8. The new heat consumers who are connected to heat supply system shall be allowed to establish the heat prices for not longer than 3 years based on the costs necessary for the supplier (rationed by the state) of marginal costs of heat supply to these consumers.
9. The supplier of hot water, invoking the methodology of establishing hot water prices approved by the National Control Commission for Prices and Energy, shall prepare and present to the Commission and/or the municipal institution the draft of the hot water components. If the hot water supplier is also the supplier of heat selling annually not less than 10 GWh or supplies hot water in the territory of this heat supplier, the municipal institution shall not later than within 30 days present to the Commission in the territory of this heat supplier documents of harmonisation of hot water price components, and/or municipal institution shall not later than within 30 days present to the Commission the documents of harmonisation of components of hot water and/or based on commentaries. Having considered the commentaries of the municipal institution or in the absence of such information within 30 days shall, not later than within 15 days set the components of hot water price. For other suppliers of hot water the components of hot water price shall be set by the municipal council.
10. The competitive consumers of heat shall be set the price of heat that must cover the heat production and individual transfer costs. Supplier of heat upon harmonisation shall set the price of heat thereof with the National Control Commission for Prices and Energy. The heat price shall be set by the supplier of heat upon harmonisation thereof with the National Control Commission for Prices and Energy. If no other heat price has been set, the competitive heat consumer shall pay for the consumed heat at the prices of heat set also to other heat consumers.
11. If the supplier of heat, whose more than 1/2 of shares are owned by one or several municipalities and who manages heat supply systems and presents identical components of heat prices for all municipalities, the components of heat price shall be set by the supplier of heat according to the procedure established in the statute of the enterprise having calculated them according to the methodology of setting heat prices. In this case when setting the heat price components the procedure of setting heat price components provided for in paragraphs 4, 5, 6 and 7 provided in this Article shall apply mutatis mutandi, while the municipal councils shall not participate in the procedure.
12. The independent producer of heat provided in paragraph 3 of Article 10 of this Law shall set the components of heat production price according to the statute of the enterprise upon calculating them in compliance with the procedure established in the methodology of Setting the Prices of Produced Heat. In this case when establishing the components of heat production prices the procedure of establishing the components of heat production prices provided in paragraphs 4, 5, 6 and 7 of this Article shall be mutatis mutandis applied, while the municipal councils shall not participate in the procedure.
13. The supplier of hot water whose more than ½ of shares are owned by one or several municipalities and who supplies hot water in different municipalities, shall set the components of hot water according to the procedure established in the statutes of the enterprise, having calculated them according to the Methodology of Hot Water Prices Establishment and having calculated them in agreement with the National Control Commission for Prices and Energy. In this case the paragraph 9 of this Article shall not be applied.
14.Changing heat and/or hot water prices, the enterprises:
1) in the light of the set components of heat prices, the changed fuel prices and the changed prices of purchased heat, shall calculate and publicly announce by the 25 day of the month the amounts of the variable components of heat prices and the final heat prices;
15. The enterprises shall present by the 10 day of the month to the National Control Commission for Prices and Energy and/or municipalities information about the fuel prices, the prices of heat bought up from other, independent heat producers not provided in paragraph 3 of Article 10 of this law and decisions of municipal councils concerning of the new prices of drinking water.
16. The National Control Commission for Prices and Energy shall by the 20 day of the month publicly inform of the prices of fuel, heat bought up from other heat producers not provided for in Paragraph 3 of Article 10 of this Law and drinking water to be used when calculating the prices of heat and hot water.
17. The National Control Commission for Prices and Energy and municipalities shall control whether enterprises correctly calculate the amount of variable component of heat and hot water prices and the application of heat and hot water prices.
18. The costs incurred but not covered during the period of validity of components of heat and hot water prices or the additional revenue generated by the actual prices of fuel, bought heat, drinking water and setting the prices of heat or hot water should include the difference in prices, assessed when calculating the heat or hot water price components of the future period.
I
Article 33. Maximum Heat Consumption Rates in Apartment Blocks
1. The National Control Commission for Prices and Energy shall set and as necessary amen the maximum heat consumption rates for heating the apartment block flats and other premises. The rates shall be publicly announced. They shall be applied in apartment blocks whose systems of heating and/or hot water systems do not comply with the mandatory requirements. The suppliers of heat shall have no right to demand that the owners of flats of such apartment blocks and other premises pay for the consumed amount of heat exceeding the maximum rates of heat consumption. At the request of owners of apartment bock flats and other premises the State Energy Inspectorate under the Ministry of Energy shall establish whether the systems of heating and hot water complies with the mandatory requirements.
2. The municipal institution based on the programme of funding the modernisation of apartment blocks, approved by the Government, shall have the right to authorise the owners of flats and other premises of the apartment block where the maximum heat consumption rate has been exceeded, to reconstruct the heating of the building and/or hot water system in compliance with the mandatory requirements. The term of authorisation for owners of flats and other premises may not be shorter than 18 months.
3. If the owners of flats and other premises fail to fulfil within the period set in Paragraph 2 of this Article the authorisation prescribed by the municipality, the municipality shall acquire the right not to apply to the apartment block the maximum rates of heat consumption.
Article 34. Cost Accounting of Heat Supply
1. If the supplier of heat manages more than one heat supply system, in which at least 10 GWh of heat are sold per year, the operating accounts corresponding to each of these activities of every system shall be accounted for separately. In the bookkeeping, estimates of revenue and expenditure shall be prepared according to separate municipalities
2. If in the heat supply system in which at least 10 GWh of heat are sold per year and the heat supplier also produces heat, the operating accounts corresponding to each of heat production and heat transmission activities shall be managed separately.
3. The information of heat suppliers relating to their licensed activities or activities the prices whereof are regulated shall be public. State and municipal institutions performing according to the procedure established by law the functions entrusted to them shall have the right to receive from the suppliers of heat or hot water and heating of the building and supervisors of hot water system all financial reports and other documents relating to regulated activities. The data of the suppliers of heat concerning the costs of heat production and heat transfer shall be announced publicly.
Article 35. Coordination of Investment Plans
The investment plans shall be coordinated with the municipal council according to the procedure established by it. The appeals of heat suppliers concerning the decisions of municipal councils coordinating investment plans shall be examined by the National Control Commission for Prices and Energy according to pre-litigation procedure
Article 36. Preparation of Contracts
1. The municipal institution shall ensure the public discussion of drafted contracts on the transfer of management of the heat sector or its part.
Article 37. The Requirements to the Transferee of the Management
1. The entity, which is the transferee of the management, shall effect procurement arrangements according to the Law on Public Procurement.
2. The National Control Commission for Prices and Energy and municipal institutions must supervise and control according to their competence the pricing of the entities, which took over the management.
3. At the expiration of the management transfer period the value of the assets, the management whereof has been transferred, shall not be less than at the moment of concluding the transfer contract.
4. At the expiration of the management transfer period the entity, which took over the management, shall be prohibited to transfer together with assets being transferred the undercharged financial commitment or other obligations connected with the management of transferred assets
5. The amount of investment in the assets made by the person which took over the management shall be indicated in the contract of asset transfer over the transfer period. It shall be calculated as the increase in asset value over the management period plus the financial commitments related to the assets, which were to be covered under the contact by the management transferee and regardless of the increase in asset value because of its indexing in the period of management transfer.
6. When reorganising or privatising the heat supply enterprises controlled by the municipalities, it should be ensured that the heat supply enterprises controlled by them should own heat transfer networks whereby at least 10 GWh of heat is sold annually and not less than 30 percent of heat production capacity required for meeting the consumers’ needs are owned in every network, including the necessary heat capacity reserve.
I promulgate this Law passed by the Seimas of the Republic of Lithuania PRESIDENT OF THE REPUBLIC VALDAS ADAMKUS