Law On Heat (No. IX-1565)

The present Law shall regulate the state management in the heat sector, the activity of subjects of economy acting in the heat sector, their relationship with heat consumers, their interrelationship and responsibilities. The objectives of the Law: (a) to guarantee the reliable and high quality least-cost heat supply to consumers; (b) to legally establish the reasonable competition in the heat sector; (c) to defend the rights and legitimate interests of heat consumers; (d) to improve the efficiency of heat production, transmission and consumption; (e) to increase the utilization of local fuel, biomass and renewable energy resources in heat production; (f) to reduce the negative impact of heat energy industry on the environment. The Law consists of 11 Chapters divided into 36 articles dealing with the following matters: general provisions (Chapt. 1, arts. 1 and 2); management (Chapt. 2, arts. 3 – 6); planning (Chapt. 3, arts. 7 and 8); heat supply (Chapt. 4, arts. 9 – 17); agreements with heat consumers (Chapt. 5, arts. 18 and 19); heating in blocks of flats (Chapt. 6, arts. 20 – 24); disconnection of heat consumers’ equipment from heat supply system (Chapt. 7, arts. 25 – 27); licences and permits (Chapt. 8, arts. 28 and 29); heat prices and tariffs, cost estimates and investments (Chapt. 9, arts. 30 – 33); assignment of management rights in heat sector (Chapt. 10, arts. 34 and 35); final provisions (Chapt. 11, art. 36). The Law is applicable to heat and electric energy production during a combined technological cycle. The cogeneration of heat and electricity shall be assigned to the public service obligations. The heat supply shall be carried out in conformity with the heat supply license. The heat supplier’s licensing rules shall be approved by the Government. The heat supply license to the heat supplier supplying not less than 5 GWh of heat per year shall be issued by the National Control Commission for Prices and Energy, to the heat supplier supplying less than this quantity – by the municipality. Competition between suppliers of alternative energy sources, meeting the needs of heat consumers, shall be implemented taking into account heat management measures and actions specified in special heat management plans, meeting consumers' heat needs at the lowest cost, ensuring secure supply and not exceeding the permitted negative impact on the environment, estimating external costs, as well as other measures established by this Law. Heat consumers have the right to choose heat suppliers of alternative energy sources, to install a local heating system, provided that this does not contradict the spatial planning documents. The Heat Council is a collegial group of representatives of institutions and organizations directly involved in the heat sector (including non-governmental organizations protecting consumer rights) with the right to an advisory vote and operating on a public basis, submitting proposals to the Minister of Energy on important state heat issues.