Bulgaria Law on Energy (Chapter One-Seven)
LAW ON ENERGY
Chapter One General Provisions
Chapter Two Energy Policy
Chapter Three Regulation of activities in the energy sector
Chapter Four Licenses
Chapter Five Real rights
Chapter Six Obligations to the public
Chapter Seven Sheduled outage regime, temporary interruption or limitation
Chapter Eight Control in the energy sector
Chapter Nine Electricity industry
Chapter Ten Heat supply
Chapter Eleven Promotion of power generation from renewable energy resources and combined genaration
Chapter Twelve Gas supply
Chapter Thirteen Compulsory administrative measures
Chapter Fourteen Administrative penal provisions
This Law governs the public relationships related to the activities of generation, import and export, transmission, transit transmission, distribution of electric and heat energy and natural gas, trade with electric and heat energy and natural gas, and use of renewable energy resources, as well as the authorities of state bodies in defining of the energy policy, regulation and control functions.
(1) The main objectives of this Law are to create conditions for:
1. High-quality and secure supply of electricity and heat energy and natural gas to the general public;
2. Energy development and the energy security of the country through efficient utilization of energy and energy resources;
3. Creation and development of a competitive and financially stable energy market;
4. Supply of energy at minimal costs;
5. Sustainable development in the utilization of renewable energy sources, including generation of electricity from renewable energy sources in the interests of environmental protection;
6. Promotion of the cogeneration of electricity and heat energy.
(2) The generation, import, export, transmission, transit transmission, distribution and trade with electricity and heat energy and natural gas shall be carried out under the guaranteed protection of the life and health of citizens, the property, the environment, the interests of consumers and the national interests.
State Governance of the Energy Sector
(1) The Council of Ministers defines the state policy in the energy sector.
(2) The Council of Ministers adopts the Energy Strategy of the Republic of Bulgaria upon a proposal of the Minister of Energy and Energy Resources that shall state basic objectives goals, stages, means and methods for the development of the energy sector.
(1) The energy policy of the country is implemented by the Minister of Energy and Energy Resources.
(2) The Minister of Energy and Energy Resources:
1. Develops and submits for adoption by the Council of Ministers the Energy Strategy of the Republic of Bulgaria;
2. Adopts the short, medium and long-term energy balances forecasts for the country in pursuant to the adopted strategy;
3. Submits for approval by the to the Council of Ministers a list of energy facilities of strategic national importance;
4. Defines, with an order, the mandatory indicators on the reliability of electricity supply;
5. Approves an inventory of the required new electricity generation capacity only in cases, where the security of electricity supply cannot be guaranteed through the currently applicable licensing regime under this Law and promulgates such inventory in the State Gazette;
6. Submits for approval by the Council of Ministers an inventory of new distinct service territories for the distribution of natural gas and for modification of existing distinct service territories for distribution of natural gas for which no license has been issued, and promulgates this inventory in the State Gazette;
7. Approves restructuring programs and strategies for the energy sector;
8. Defines the overall annual quota for the mandatory acquisition of electricity from generators that utilize primary local energy sources (of fuel), of up to 15 percent of the combined primary energy required for the generation of electricity, that is consumed in the country in each calendar year, for reasons of reliability of supply;
9. Develops and submits for adoption by the Council of Ministers national long and short term programs for the promotion of use of renewable energy resources;
10. Develops and submits for adoption by the Council of Ministers national indicative targets for promotion of the consumption of electricity generated from renewable energy resources and prepares annual reports for the accomplishment of such targets;
11. Defines mandatory minimum quantities for the generation of electricity from renewable energy sources and for high-efficiency cogeneration;
12. Develops proposals for the establishment and maintenance of national energy reserves and war-time energy reserves;
13. Approves the norms for the storage of fuel reserves necessary for secure energy supply;
14. Submits to the Council of Ministers proposals for state subsidies to certain operators and/or activities in the energy sector;
15. Exercises control function in the cases defined under this Law;
16. Issues permits for the prospecting and exploration of energy resources and organizes procedures for the granting of concessions for extraction of energy resources and for construction of hydropower generation facilities;
17. Publishes an annual bulletin on the status and development of the energy sector;
18. Formulates and implements the state policy related to activities of transmission of oil and oil products through transmission pipelines within and through the territory of the country;
19. Issues the secondary normative acts provided for in this Law in the areas of its competence;
20. Represents the Republic of Bulgaria in international organizations on energy matters;
21. Exercises other authority conferred pursuant to other normative acts.
(3) The Energy Strategy adopted by the Council of Ministers under Article 4, para. 2, item 1 shall be promulgated in the State Gazette.
(1) The list of strategic facilities of national importance in the energy sector under Article 4, para. 2, item 3 is prepared on an annual basis by the Ministry of Energy and Energy Resources and is submitted by the Minister of Energy and Energy Resources for approval by the Council of Ministers.
(2) Persons, performing activities under this Law by means of facilities included in the list under para. 1 enjoy protection which includes:
1. organization and control of physical protection (security) of facilities, implemented by bodies of the Ministry of Interior;
2. Information security implemented by way of administrative, organizational and technical measures.
(3) The protection under para. 2 above shall be at the expense of persons performing the activities under this Law by means of facilities included in the list under para. 1.
(1) Mayors of municipalities require from energy companies, operating on their territories, forecasts of the development of demand of electricity and natural gas, programs and plans for electricity, heat energy and natural gas supply.
(2) Mayors of municipalities, on the basis of proposals from energy companies, are obliged to provide, in the master and detailed urban development plans, public works required for the implementation of the programs and plans under para. 1 above.
(3) Mayors of municipalities shall ensure the construction, operation, maintenance and development of the facilities for outdoor lighting on the territory of the municipality of real property constituting public municipal property.
(1) In implementing the state policy for the energy sector, the Minister of Energy and Energy Resources may be assisted by industrial branch chambers and organizations of persons working in the energy sector.
(2) Employers in the energy sector may set up and participate in industrial branch chambers and organizations of the people working in the energy sector.
(3) The industrial branch chambers and organizations of the persons working in the energy sector shall be registered under the terms and conditions of the Law on Not for Profit Legal Entities.
(4) The industrial branch chambers and organizations of the persons working in the energy sector:
1. Have the objective of representing and protecting the common interests of their members;
2. May negotiate with trade unions issues of common interest and be parties in signing a collective industrial branch labor agreements;
3. Develop rules for good manufacturing practices, models of systems for risk analysis of energy generation, as well as other professional criteria;
4. Participate in the development of strategies, analyses, programs and opinions on the development of the industrial branch and cooperate in their implementation;
5. Create data bases on professionals within the industrial branch available to assist energy generators as well with state bodies;
6. Develop a Code of Ethics providing for the professional ethics in the industrial branch and preventing unfair competition between energy producers;
7. Notify competent state bodies regarding violations committed in the production of and trade with energy and natural gas;
8. Provide opinions on any amendments to normative acts for the respective industrial branch;
9. Organize and hold professional training;
10. Perform other functions provided by law.
(5) The state bodies and the management bodies of the industrial branch chambers and organizations of the persons working in the energy sector work collaboratively and notify each other of violations found in the production of and/or trade in energy and natural gas.
(6) The state bodies, institutions and departments, the bodies of local self-government and local administration work collaboratively and provide to the industrial branch chambers of organizations of the persons working in the energy sector the information that they require to perform their functions pursuant to this Law.
Energy Forecasting and Planning
(1) The Ministry of Energy and Energy Resources develops the Energy Strategy of the Republic of Bulgaria.
(2) The Ministry of Energy and Energy Resources develops programs and strategies for the restructuring of the energy sector that shall be approved by the Minister of Energy and Energy Resources based upon the Energy Strategy of the Republic of Bulgaria. The privatization of commercial companies in the energy sector is performed according to the programs and strategies for restructuring of the energy sector, approved by the Minister of Energy and Energy Resources.
(3) The overall forecast energy balances of the country are of a short medium and long-term. These are developed based upon:
1. Forecasts, studies and plans of companies engaged in the activities related to extraction, processing, transformation, transmission and distribution of fuels and energy;
2. Information from the overall indicative energy balances;
3. Information provided by the National Statistical Institute.
(4) The Minister of Energy and Energy Resources determines the need for the construction of new generation capacity and approves the inventory under Article 4, para. 2, item 5 based upon:
1. The general forecast energy balances;
2. The mandatory indicators for the reliability of the electricity supply;
3. The plan for the construction of new generation capacities at lowest cost developed by the energy company licensed for electricity transmission.
(5) The Minister of Energy and Energy Resources implements the national energy policy on the energy development of the country under efficient utilization of energy and energy resources and meeting the needs of the general public for electricity and heat energy and natural gas and solid fuels based upon general forecast energy balances and according to the Energy Strategy, adopted by the Council of Ministers.
(6) The Minister of Energy and Energy Resources publishes the energy policy in the bulletin under Article 4, para. 2, item 17, as well as on the official Internet page of the Ministry of Energy and Energy Resources.
(1) Companies performing activities related to extraction, processing and trade with fuels, transformation, transmission, distribution and trade with energy and natural gas:
1. Develop studies and analyses, prepare short, medium and long-term forecasts of extraction, processing and trade with fuels and energy and adopt plans to secure these;
2. Prepare, at least once every two years, and submit to the Minister of Energy and Energy Resources plans for the rehabilitation, for measures to enhance the efficiency of existing generation capacity and networks, and for the construction of new capacities and networks and lowest costs. The plans shall include technological, economic, financial and environmental impact analysis and alternatives for energy savings.
(2) The forecasts under para. 1 herein above, including the preliminary studies and list of needed new generation capacity and networks, and natural gas storage facilities, shall be submitted as follows:
1. To the Minister of Energy and Energy Resources
2. To the State Energy Regulation Commission;
3. To the mayors of the respective municipalities in compliance with the obligations under para. 6;
4. To the transmission companies;
5. To the respective distribution companies.
(3) The content, structure, procedure and terms for providing the information under para. 1 are set in an ordinance of the Minister of Energy and Energy Resources.
REGULATION OF ACTIVITIES IN THE ENERGY SECTOR
State Energy Regulation Commission
(1) The State Energy Regulation Commission hereinafter referred to as the "Commission" regulates energy sector activities.
(2) The Commission is an independent specialized state body - a legal person with a office located in Sofia.
(1) The Commission is a collective body, consisting of seven members, including a Chairman and a Deputy Chairman.
(2) The Chairman, the Deputy Chairman and the members of the Commission are appointed and discharged with a resolution of the Council of Ministers and are appointed with an order of the Prime Minister.
(3) The term of office of the members of the Commission is 5 years.
(1) Eligible for appointment to the Commission are physically able Bulgarian citizens educated at the university level with an educational qualification "master" degree and at least one of which shall be a legally competent lawyer and one economist:
1. With professional experience and/or length of service of at least 10 years, of which at least three years in the energy sector;
2. That has not been imprisoned for a premeditated offence.
(2) Members of the Commission may not:
1. Be sole traders, shareholders, partners, managers, procurators or members of management or supervisory bodies, as well as liquidators and consultants of commercial companies engaged in activities subject to licensing under this Law;
2. Hold other paid office with the exception of academic research or teaching.
(3) Members of the Commission may be discharged prior to the expiration of their term of appointment only:
1. Upon resignation;
2. Upon discovering discrepancies with the requirements to occupy under this Law;
3. Upon factual impossibility to perform the duties for more than 6 months;
4. When sentenced to a prison term for a premeditated offense.
(4) In the cases under para 3, the Council of Ministers select a new Commissioner for the remainder of the original term of appointment.
(5) The remuneration of the Members of the Commission is set as follows:
1. For the Chairman 每 93% of three average monthly salaries of persons employed under labor or service contracts in the public sector as reported by the National Statistical Institute;
2. For the Deputy Chairman 每 90% of three average monthly salaries of persons employed under labor or service contracts in the public sector as reported by the National Statistical Institute;
3. For other Members of the Commission 每 85% of three average monthly salaries of persons employed under labor or service contracts in the public sector as reported by the National Statistical Institute;
(1) The Commission is a permanent body and is in session when at least four of the Members are present.
(2) The Commission adopts decisions motivated by a written opinion, which are individual or common administrative acts, with a majority of at least 4 votes.
(3) Commission sessions are open to the public, when reviewing applications or requests on:
1. The issuance, revision, amendment, withdrawal and termination of licenses;
2. Approval of prices proposed by the energy companies.
(4) In certain cases the Commission may decide that the sessions under para. 3 be closed to the public and can be attended only by Members of the Commission and the parties in the proceeding.
(5) The decisions of the Commission under para. 3 are announced in open sessions.
(6) The Commission applies the procedural rules under this Law and in cases that are not regulated by them 每 the provisions of the Law on Administrative Procedure.
(7) Decisions of the Commission, including silent refusal, are subject to appeal before the Supreme Administrative Court. Appeals do not suspend enforcement of the decisions.
(8) The common administrative acts of the Commission that set the rules under this Law are promulgated in the State Gazette.
(1) The Commission conducts a procedure for public discussions with interested parties when developing drafts of the common administrative acts under in this Law, as well as when on other matters of public significance for the development of the energy sector.
(2) Interested parties under para. 1 are the state bodies, the industrial branch organizations, the energy companies, the eligible consumers and the consumer organizations directly related to the developed draft.
(3) The Commission discusses with the interested parties the basic principles proposed within the draft and sets a period for providing opinions on the proposed draft of not less than 14 days.
(4) The Commission reviews all of the opinions submitted by interested parties and responds with opinions that are published on its the Internet page.
(1) The Commission publishes its policies and the practice in the implementation of its normative acts and opinions on their amendment in the bulletin published by the Commission or by other appropriate means.
(2) The bulletin of the Commission is published every 6 months on the Commission Internet website.
(1) The Commission is supported by an administration.
(2) The activities of the Commission, the structure and organization of its administration, are defined in an Organizational Charter adopted by the Council of Ministers.
(3) The prohibitions pursuant to Article12, para. 2, items 1 and 2 shall apply to persons employed within the specialized administration..
The Members of the Commission, as well as employees of its administration, are obliged to abide by professional ethics rules adopted by the Commission.
(1) The information accumulated, generated and safeguarded by the Commission for the purposes of regulation, which if disclosed may harm the commercial interests of the applicants and licensees, is classified information and shall be an official secret.
(2) Commercial information, subject to publication under this or under another Law, is not an official secret.
(3) Information that is an official secret may not be disclosed except to the judiciary or other public bodies pursuant to established legal procedures.
(1) State bodies energy companies and public officials shall assist the Commission in the performance of its functions.
(2) The Commission may collaborate with persons representing and protecting consumers' interests in the performance of its functions.
The Chairman of the Commission:
1. Organizes and manages the activities of the Commission and its administration according to this Law and the Commission's decisions;
2. Represents the Commission before third parties;
3. Appoints and dismisses the employees of the administration;
4. Submits to the Council of Ministers an annual report on the activities of the Commission;
5. Organizes the process for the drafting the budget and submits it for review and adoption by the Commission;
6. Is responsible for the implementation, completion and reporting of the budget of the Commission;
7. Submits the annual report and the periodic financial statements for adoption by the Commission.
Powers of the Commission
In the regulation of the activities of generation, transmission and distribution of electricity, transmission and distribution of natural gas, trade with electricity and natural gas, generation and transmission of heat energy, the Commission:
1. Issues, revises, amends, suspends, terminates and withdraws licenses in the cases defined under this Law;
2. Adopts and publishes basic guidelines for its activities;
3. Drafts the secondary normative acts under this Law;
4. Approves the general terms of the contracts under this Law;
5. Exercises control in the cases provided for in this Law;
6. Performs price regulation in the cases provided for in this Law;
7. Sets the rules for trade with electricity and natural gas [Market Rules] and the technical rules for the networks [Grid Code], proposed by energy companies, and controls the compliance with these rules;
8. Adopts and controls the implementation of a methodology for setting of prices for balancing electricity as part of the rules for trade with electricity under item 7;
9. Sets the rules for access to the electricity and natural gas transmission networks, respectively to the electricity and natural gas distribution networks [Rules on Network Access];
10. Decides on the classification of the electricity lines, heat energy pipelines, natural gas pipelines and their ancillary facilities within the transmission or distribution networks proposed by the transmission or distribution companies and issues mandatory directives for their acquisition and/or providing access to them;
11. Carries out the tenders under Article 46;
12. Develops and controls compliance with the rules on supply of electricity, heat energy and natural gas to consumers, including the quality of service standards;
13. Reviews the requests of energy companies for compensation of nonrecoverable [stranded] costs and decides on the amount of the justified nonrecoverable costs, as well as on the manner of their compensation;
14. Issues certificates to producers for the origin of the commodity electricity that is generated from renewable energy resources and by way of cogeneration of electricity and heat energy;
15. Issues Green Certificates to producers of electricity utilizing renewable energy resources and generating electricity and heat energy in combined cycle method;
16. Sets according to a methodology adopted by the Commission the permissible allowances for technological losses of electricity in the process of its generation, transmission and distribution, in the process of generation and transmission of heat energy and in the process of transmission, distribution and storage of natural gas,;
17. Sets the availability and technical parameters for the generation of electricity under which producers may enter in transactions with eligible consumers, electricity traders and other producers pursuant to the conditions of the rules under Article 91, para. 2 or to participate in an organized market;
18. Approves the division, separation, consolidation or merger of energy companies licensed under this Law;
19. Approves the transactions with property utilized in the performing the licensed activities [Capital improvements and lending operations] in the cases provided for in this Law, as well as in other transactions that may affect the security of because of the indebtedness of energy companies;
20. Approves the draft annual budget of the Commission and the financial report of the Commission submitted by the Chairman and the report under Article 20, item 4;
21. Exercises other authorities provided by law.
(1) The Commission reviews complaints by consumers against licensees or by licensees against other licensees, related to performance of the licensed activity.
(2) Upon receipt of a complaint, the Chairman of the Commission orders an inquiry pursuant to the procedures of Chapter Eight.
(3) The Commission may facilitate a voluntary settlement to the dispute within two months of receipt of a complaint under para. 1. The Commission may extend this period for an additional two-month period if the subject of dispute requires collection of additional data and information.
(4) In cases where the dispute has been resolved through a written agreement between the parties to the dispute and any of the parties has failed to comply with its obligations under such agreement, the other party may seek resolution of the dispute that was subject of the agreement in a court of law.
(5) The procedure for the filing of complaints, their review by the Commission and for voluntary dispute settlement is regulated in the ordinance under Article 60.
(1) In exercising its regulatory authority pursuant to this Law the Commission is guided by the following general principles:
1. Preventing and not allowing limitation or obstruction of competition within the energy market;
2. Balancing the interests of energy companies and consumers;
3. Providing for equal treatment of various categories of energy companies and between groups of consumers;
4. Creating incentives for efficient operation of regulated energy companies;
5. Creating incentives for the development of a competitive market for activities in the energy sector, conditions permitting.
(2) In the implementation of the principle under para. 1, item 1, the Commission may request that the Commission for Protection of Competition for initiation of proceedings under the Law on the Protection of Competition.
(1) In implementing its authority under Article 21, item 17, the Commission follows the following principles:
1. Fair allocation of the economic consequences of the phased-in market opening among all parties to transactions with electricity;
2. Providing for equal conditions for participating in transactions at freely negotiated prices, as compared to the transactions to which the public provider or the public suppliers of electricity; are a party/
3. Providing for a balanced adjustment of end-user prices, taking into account the public service obligations of the public provider or the public suppliers.
(2) The conditions for the eligibility to participate in transactions pursuant to Article 100, para. 1 as well as the conditions on network access shall be defined with rules adopted by the Commission.
(1) The Commission maintains public registers of:
1. Issued licenses, including a record of all licensees, licenses that are issued and other circumstances;
2. Issued certificates of origin, including a record of the principal of the generation capacity, as well as the quantities of electricity for which the certificate was issued and the period of generation;
3. Issued Green Certificates, including a record of the principal of the generation capacity are as well as the quantities of electricity for which the certificate was issued and the period of generation;
4. Transactions with Green Certificates, including a record of the principal of the Green Certificate, as well as its buyer and the quantity of electricity that was subject to the underlying transaction;
5. Licenses issued by the Commission under this Law.
(2) The circumstances subject to recording under para. 1, items 1 and 5, the procedure for entering a record in the register and obtaining information are defined with the ordinance under Article 60. The circumstances subject to recording under para. 1, items 2, 3 and 4, the procedure for entering a record in the register and obtaining information are defined out in the ordinance under Article 161, para. 4.
(3) Decisions of the Commission for issuing, revising, amending and terminating of licenses, as well as its decisions on the approval of prices are published in the bulletin of the Commission.
Financing of the Commission. Fees
(1) The activities of the Commission and its administration are financed from the income specified under Article 27, para. 1.
(2) The Commission is a first-level spender of budgetary credits.
(1) The income to the budget of the Commission is generated from:
1. Fees, collected by the Commission under Article 28 and any interest thereon;
2. Twenty percent of the fines and property sanctions provided for in this Law;
3. Gifts from persons not subject to licensing under this Law or their affiliates within the meaning of the Commercial Code.
(2) No gift may be accepted from persons that are subject to licensing under this Law or from their affiliates within the meaning of the Commercial Code.
(3) The funds under para.1 shall be expended for:
1. Financing the activities of the Commission and its administration, including the performance of studies, analyses and assessments associated with the regulatory activities under this Law;
2. Capital expenditure for the development of material assets;
3. Enhancing the qualification of the persons employed within the administration;
4. Supplementary monetary incentives pursuant to a procedure defined in the Organizational Charter.
(4) The funds under para. 3, item 4 shall be set in the amount of up to 25% of the annual payroll cost and shall be part of the budget of the Commission for that respective year.
(5) If the annual income from fees under this Law exceeds or are not sufficient to cover the necessary costs under the budget of the Commission for the following calendar year, the Chairman of the Commission may propose a reassessment of the size of collected fees.
(1) In exercising its regulatory authorities the Commission collects fees for review of applications, issuance of certificates under this Law, sale of documents for tenders under Chapter Four, Section II and licensing fees.
(2) The amounts of the fees under para.1, the procedure and deadlines for payment thereof are set in a tariff approved by the Council of Ministers upon a proposal from the Commission.
(1) Fees for review of applications are paid upon their filing.
(2) Persons, obtaining licenses, pay licensing fees for each license issued, as well as for modifications to the licenses in the cases, listed in the tariff.
(3) Licensing fees are:
1. Initial 每 for issuance or modification of licenses, including the expenses for their preparation and expenses for the regulatory activity under the licenses until the end of the current year;
2. Annual - including expenses for the regulatory activity under the licenses for the respective year;
(4) Annual fees for the term of the license as well as for the terms of any extension thereof are paid by the licensee for every year following the year of its issuance.
(5) Licensing fees are determined depending on the type of licensed activity performed and are differentiated on the basis of criteria determined by the tariff under Article 28, para. 2.
(1) The following prices are subject to regulation by the Commission:
1. At which producers sell electricity to the public provider and/or public suppliers;
2. At which producers sell heat energy to the heat transmission company;
3. At which the heat transmission company sells heat energy to consumers;
4. At which the public provider sells electricity to public suppliers, to consumers, connected to the transmission network and to the transmission, respectively the distributor company, in order to cover the technological costs of transmission;
5. At which the public provider sells natural gas to public suppliers of natural gas and to consumers connected to the natural gas transmission network;
6. At which public providers sell electricity and natural gas to consumers connected to the respective distribution networks or to public suppliers;
7. For transmission of electricity and natural gas to consumers through the respective transmission and/or distribution networks, except for the prices of transit transmission;
8. For connection to the networks;
9. For storage of natural gas.
(2) Prices of electricity under para. 1, items 1, 4 and 6 are subject to regulation until all consumers attain the status of eligible consumers.
(3) Prices of natural gas under para. 1, items 5 and 6 are subject to regulation until all consumers acquire the status of eligible consumers.
(4) Prices of energy, natural gas and services, provided by the energy companies, are not subject to regulation by the Commission, when the latter establishes the existence of competition creating prerequisites for free negotiation of the prices on market terms for the respective activity of the energy sector.
In exercising its price regulation authority, in addition to the principles under Article 23, the Commission is also guided by the following general principles:
1. Prices shall be non-discriminatory, based on objective criteria and determined in a transparent manner;
2. Prices of energy companies shall recover the economically justified operational costs, including costs of:
a) Management, operation and maintenance of energy facilities;
b) Maintenance of reserve and regulating capacities, required for ensuring reliable supply to consumers;
c) Supply and maintenance of fuel reserves;
f) Storage and processing of spent nuclear fuel and radioactive waste, decommissioning of nuclear facilities and nuclear safety.
3. Apart from the costs under item 2, prices shall include nonrecoverable costs related to the transition to a competitive energy market as well as costs resulting from meeting obligations towards the public, related to reliability of supply;
4. Prices must ensure an economically justified rate of capital return;
5. Prices for the individual groups of consumers shall conform to the costs of delivery of energy and natural gas to these consumers;
6. Avoidance of cross-subsidizing through the prices:
a) Between individual groups of consumers;
b) For integrated energy companies 每 between individual activities, subject to licensing under this Law and/or between activities, subject to licensing under this Law and other activities.
(1) The Commission may regulate prices by determining an upper limit for prices or income by setting efficiency indicators for energy companies, indicators of comparability between them, for achievement of basis criteria.
(2) The Commission may determine:
1. Prices components reflecting the cost structure;
2. Ttime-of-the-day, seasonal and other tariff structures of prices in accordance with costs.
(1) The Commission sets preferential prices for sale of electricity generated from renewable energy sources under Article 159, para. 2 and from cogeneration by plants with combined generation of electric and heat energy under Article 162, para. 2.
(2) Preferential prices under para. 1 are not set at less than 80 percent of the average selling price of electricity for the preceding calendar year for consumers, using electricity for household purposes.
(3) On the basis of the proposal of the respective heat transmission company, the Commission determines a preferential price for heat energy for the association under Article 151, para. 1.
(1) Energy companies are entitled to lodge requests for recognition and compensation of non-recoverable costs.
(2) Nonrecoverable costs are the costs resulting from investments made and/or transactions concluded prior to coming into force of this Law by energy companies, which cannot be recovered as a result of the establishment of a competitive electricity market.
(3) Energy companies under para. 1 submit applications to the Commission for recognition of costs as nonrecoverable and establishment of the amount thereof. Applications shall be accompanied by evidence of the grounds for incurring such non-recoverable costs and the amount thereof.
(4) The Commission determines the maximum total amount and term for compensation of recognized non-recoverable costs for each individual company.
(5) The Commission, guided by the principles under Article 23 and taking into account the changes in competitive conditions:
1. Recalculates annually the maximum total amount of the compensation, related to non-recoverable costs;
2. Defines the volume to be reimbursed for the respective period;
3. Allocates them among the respective energy companies.
(6) The mode of compensation of non-recoverable costs will be determined in the Ordinances under Article 36, para. 3.
(7) Compensation of non-recoverable costs is effected by all consumers in a non-discriminatory and transparent manner.
(1) Energy companies have the right to request the reimbursement of expenses, resulting from obligations towards the public, imposed on them, including those related to reliability of supply, environment protection and energy efficiency.
(2) The following are treated as expenses under para.1:
1. Resulting from obligations to buy out electricity from producers, winners in tenders under Article 46;
2. Resulting from obligations to generate electricity using local primary energy sources under Article 4, para. 2, item 8;
3. Resulting from obligations to buy out electricity at preferential prices under Article 159 and Article 162;
4. Other additional obligations.
(3) Energy companies under para. 1 submit periodically to the Commission applications for compensation of such costs. The application shall be supported by evidence of the legal grounds and the amount of these costs.
(4) The Commission determines the volume of reimbursement for each individual company and the overall volume to be reimbursed during the respective period.
(5) The manner of compensation for costs, resulting from obligations towards the public, is set in the ordinance under Article 36, para. 3.
(6) Compensation for costs, resulting from public obligations shall be by all consumers in a nondiscriminatory and transparent manner.
(1) Prices that are subject of regulation are formed by the energy companies in compliance with the requirements of this Law and the ordinances under para. 3. The instructions, adopted by the Commission, are obligatory for to the energy companies.
(2) The Commission defines a transitional period for the electricity prices to consumers, during which prices are designed to conform to the costs of production, transmission and distribution of electricity.
(3) The methods of price regulation, the rules for price formation or setting and modification, the procedure for providing information, the procedures for the presentation of proposals on prices and their approval is set in ordinances on electricity, heat energy and natural gas adopted by the Council of Ministers upon proposals of the Commission.
(1) Energy companies keep separate accounts of:
1. Each activity, subject to licensing under this Law;
2. Activities, subject to licensing under this Law and other activities;
3. Each industrial branch or company;
4. Activities in the cases of regulated and freely negotiated prices.
(2) The rules for keeping separate accounts by energy companies, including assets for the purposes of pricing by groups of consumers, as well as the form and content of the financial statement for regulatory purposes are set with a decision of the Commission under the terms of the ordinances under Article 36, para. 3.
(1) Energy companies must submit to the Commission, on an annual basis, the following:
1. Their annual financial statements, including the annexes thereto in accordance with the Accountancy Law, as well their annual audit reports;
2. Reports by types of activity.
(2) Energy companies are obliged, at the request of the Commission for the purposes of price regulation, to submit to it the entire accounting documentation and technical and economic information, including contracts concluded.
Issuance of Licenses
(1) Activities, subject to licensing under this Law, are:
1. Generation of electricity and/or heat energy;
2. Transmission of electricity, heat energy and natural gas;
3. Distribution of electricity or natural gas;
4. Storage of natural gas;
5. Trade in electricity;
6. Organizing an electricity market;
7. Public delivery of electricity or natural gas;
8. Public supply of electricity or natural gas;
9. Transit transmission of natural gas.
(2) The license authorizes performance of any of the activities under para. 1, subject to the conditions stated therein and constituting an integral part of the decision for its issuance.
(3) Where a license is issued for performance of any of the activities under para. 1 before building the energy facility required for it, the license contains conditions for building such facility and deadlines for start-up of the licensed activity.
(4) Issuance of a license is not required for:
1. Generation of electricity by persons who own an electricity plant of a total installed electric capacity of up to 5 MW;
2. Generation of heat energy by persons who own a heat energy plant of a total installed heating capacity of up to 5 MW;
3. Generation of heat energy for own use only.
(1) A license is issued to a legal person registered under the Commercial Code that:
1. Has the technical and financial capabilities, material and human resources and organizational structure needed to meeting the regulatory requirements for performance of the licensed activity;
2. Has a property right to the energy facilities, by means of which the activity is to be performed, if these are built, except for the licenses under Article 39, para. 1, items 5, 6, 7 and 8;
3. Provides evidence that the energy facilities, by means of which the activity under the license is to be performed, meet the regulatory requirements for safe operation and environment protec, , tion.
(2) The terms under para. 1, items 1-3 shall be fulfilled by the time of start-up of the licensed activity, where the license is issued pursuant to Article 39, para. 3.
(3) Licenses are not issued to persons that:
1. Are subject to bankruptcy adjudication proceedings or are declared insolvent;
2. Are in the process of liquidation;
3. Have had a license for the same activity withdrawn or issuance thereof has been denied, and the period under Article 59 para. 3 or under Article 41, para. 4 have not yet expired.
(4) Licenses shall not be issued if there is a risk for the endangering the life and health of citizens, of damages to third parties' property and of the interests of consumers, of disturbing the reliable supply of electricity and heat energy and natural gas.
(5) In cases where one and the same person performs more than one of the activities subject to licensing separate licenses shall be issued for each of the activities. The Commission ensures that there are no conflicts in the regime for the performance of the individual licensed activities.
(1) The procedure for issuance of a license is initiated upon a written application supported by all documents, required for issuance of a license.
(2) In the event that the licensed activity is performed at prices, subject to regulation under this Law, an application for their approval is attached to the application under para.
(3) Within three months of submission of the application under para. 1 and para. 2, the Commission issues a license or denies, in a reasoned manner, the issuance of a license and approves or determines the respective prices.
(4) In cases where the Commission denies the application, the applicant may submit a new request for issuance of a license not earlier than 3 months following the decision for refusal or, respectively, effectiveness of the court ruling, whereby any appeal is rejected for lack of merit.
(1) Licenses are issued for a term not exceeding 35 years in accordance with the requirements of the ordinance under Article 60.
(2) The term of validity of a license may be extended for a period not exceeding the term stated in para. 1 above, provided that the licensee meets all requirements of this Law and all obligations and requirements under the license and has submitted a written request for an extension at least one year prior to the expiration of the term of the original license.
(3) In the decision to extend the term under para. 2, the Commission also determines the conditions for performance of the activity for the new license term.
(1) Only one license is issued for the territory of this country for:
1. Transmission of electricity or of natural gas;
2. Organizing an electricity market;
3. Public delivery of electricity or natural gas;
(2) Only one license is issued for one differentiated territory for:
1. Distribution of electricity or natural gas;
2. Public supply of electricity or natural gas;
3. Transmission of heat energy.
(3) A differentiated territory for distribution of electricity comprises at least 150`000 consumers connected to the adjoining distribution network and its boundaries include at least one region of the administrative territorial division of this country.
(4) A differentiated territory for distribution of natural gas comprises at least 50`000 consumers, which can be connected to the adjoining distribution network and its boundaries are determined by the inventory under Article 4, para. 2, item 6.
(5) A differentiated territory for transmission of heat energy is determined according to the provisions of the approved town development plans and schemes of the settlement.
(6) Para. 4 does not apply only if:
1. An interest has been stated to supply with gas a territory outside the inventory under Article 4, para. 2, item 6; and
2. No application for the gas supply of the territory under item 1 has been filed with the Commission.
(7) In cases under para. 6, the territory that is subject to investment interest is differentiated as an independent territory for natural gas distribution. The license for this territory is issued to the interested investor without a competition and under the terms of Section I, Chapter Four and the Ordinance under Article 60 after coordinating it with the respective municipality.
(8) If more than one application has been filed for the territory under Article 6, the Commission holds a tender under the terms of Section II, Chapter Four and the Ordinance under Article 60.
(1) The person, to whom a license for electricity transmission is issued, may not obtain a license for another activity, subject to licensing under this Law, except for a license for organizing an electricity market.
(2) The person, to whom a license for natural gas transmission is issued, may not obtain a license for another activity, subject to licensing under this Law, except for a license for storage of natural gas and a license for transit transmission of natural gas. The person, to whom a license for transmission of natural gas was issued, may not engage in natural gas trade.
(3) Persons, to whom licenses for distribution of electricity or of natural gas are issued, may not obtain licenses for other activities, subject to licensing under this Law.
A license defines:
1. The name of the licensee;
2. The activity, for which the license is being issued;
3. Facilities, by means of which the licensed activity is to be performed;
4. Territorial scope of the license for the activities, for which it is required;
5. The license term;
6. Types of insurance, risks covered and the amount of insurance cover, which the licensee is obliged to maintain as long as it performs the licensed activity;
7. Requirements for decommissioning of the energy facilities, by means of which the activity is performed;
8. Any other special regulatory requirements, related to performance of the activity under the license.
(1) Licensee having the obligation to construct new generation capacity is selected by a tender only in cases where a need for a new electricity generation capacity, is established and made public under the procedure of Article 4, para. 2, item 5.
(2) Holders of licenses for distribution of natural gas for differentiated territories, determined by the inventory under Article 4, para. 2, item 6, are selected by way of tenders.
(3) Winners in tenders under para. 1 or para. 2, are issued licenses under Article 39, para. 3.
(4) Where the winner in a tender is a foreign person, the license is issued to a company, registered under the Commercial Code, where the foreign person holds at least 67% of the capital of the company. Such a person may not transfer its share in the licensee company to a third party before start-up of the licensed activity.
(5) The public provider concludes contracts for buying out electricity with the winner in the tender under para. 1
(1) The tender is announced by the Commission in accordance with the inventory under Article 4, para.2, items 5 or 6 and is held under terms and procedures, determined in the ordinance under Article 60.
(2) The tender documentation is prepared in accordance with the ordinance under Art 60 and endorsed by the Commission. The tender documentation includes a draft license and in the case under Article 46, para. 1, also drafts power purchase contract.
(3) The tender is announced by decision of the Commission, published in the State Gazette not later than 6 months before the deadline for submission of applications for participation in the tender. The decision of the Commission for announcement of the tender may be appealed only with the decision for announcing the winner of the tender.
In cases where no application or only one application is received within the deadline for submission of applications for participation in the tender, such deadline may be extended by a period not exceeding 60 days as of the date of publication of the notice of extension in the State Gazette. In such a case the date of holding the tender is also changed.
(1) The Commission appoints by resolution a tender committee for holding the tender, chaired by a member of the Commission. It includes also employees from the administration of the Commission and depending of the subject of the tender 每 representatives of interested municipalities and organizations as well.
(2) The tender committee reviews and evaluates the proposals of the candidates and proposes to the Commission to take a decision for determining the winner of the tender.
(3) Within 14 days o receipt of the proposal of the tender committee, the Commission ranks the candidates and determines, by its reasoned decision, the winner of the tender and notifies the candidates thereof.
(4) The Commission issues the license to the winner of the tender within 14 days of the effective date of the decision under para. 3.
(1) The Commission cancels the tender and announces a new one, where:
1. Only one candidate has applied, or;
2. The candidates' proposals do not meet the tender requirements.
(2) In the event that, after a repeated announcement of the tender only one candidate applied, the Commission declares it a winner, provided that it meets the tender requirements.
Revisions, Amendments, Termination and Withdrawal of Licenses
(1) A license may be amended and/or supplemented by decision of the Commission:
1. At the request of the licensee;
2. Upon the Commission's initiative.
(2) The Commission is entitled to initiative for revision and/or amendment of a license issued in the following cases:
1. In order to ensure reliability or uninterrupted and high-quality supply to consumers of heat energy and natural gas;
2. In case of changes in the governing legislation;
3. To ensure national security and public order in coordination with the respective competent state bodies;
4. In case of risk to life and health of citizens, of damage to the environment or of property of third parties, when it is not necessary to withdraw the license and/or upon proposal of specialized state bodies in pursuant to their legal authority;
5. In the event of authorization of corporate transformation of a licensee or a capital improvement transaction, when these actions doe nor require the termination of the license.
(3) The Commission informs the licensee in writing of the initiation of a procedure under para. 2 for the revision and/or amendment the license. The licensee may submit, within 14 days, a written statement regarding the grounds for the revision and/or amendment the license.
(4) The Commission revises and/or amends the license after expiry of the deadline under para. 3.
(5) The licensee may also request revision and/or amendment of the license with respect to the utilized primary energy sources and/or the technology of energy transformation.
(6) The holder of a license under Article 39, para. 3, issued after a tender, may request revision and/or amendment thereof before engaging in the licensed activity only in case of events beyond its control.
(1) The Commission authorizes the transformation of a licensee by consolidation, merger, separation, division, and division to form a sole trader company or change in the legal form in cases where the entity that will perform the licensed activity after the corporate transformation, meets the requirements for issuance of a license for the activity.
(2) In the cases under para. 1 the Commission revises or terminates existing licenses and/or issues new licenses on a case-by-case basis within a month after the application was submitted. The termination, amendment or issuance of a license is effective as of the date of entering the transformation on the company register.
(1) Transactions on capital improvement with uncompleted construction projects or with property by means of which the activities under the license are performed, may take place only in their entirety, with the permission of the Commission, including cases of declaring a licensee insolvent.
(2) In the cases under para. 1, when the license is issued for generation of electricity and/or heat energy and the activity takes place using generation capacities (units), which can technologically be operated independently from each other, an individual unit may be subject of a deal. In such a case the original license is modified or supplemented.
(3) When termination or modification of a license under para. 1 or para. 2 could lead to disturbance of the reliability of supply of electricity, or heat energy or of natural gas, the Commission authorizes finalization of the deal of disposal, in case the transferee under such a deal has submitted an application and meets the requirements for issuance of a license for the respective activity. The license issued to the transferee enters into force as of the date of the transfer deal.
(4) When termination or amendment of a license under para. 1 or para. 2 does not affect the reliability of supply, the Commission may authorize finalization of the capital improvement transaction regardless of whether the transferee has submitted an application for issuance of a license.
(5) The Commission also issues a license in the cases of pledge or mortgage on the property by means of which the licensed activity is being performed.
(6) No permit is required in cases of replacement or modernization or when such a permit does not lead to change of the terms, under which the licensed activities are performed.
(7) Any transactions concluded in violation of the preceding paragraphs shall be declared null and void by the Courts upon a request of the Commission, the prosecutor or any interested party.
(8) The Commission reviews the requests under paragraphs 1-4 within three months of submission of the application, and under para. 5 - within one month.
(1) In the case of privatization of a separated part of an energy company, permission under Article 53 is not required.
(2) The Commission issues a license to the transferee under the privatization deal under para. 1, if the transferee has requested issuance of a license for the respective activity and meets the respective requirement.
(1) A license is terminated by decision of the Commission:
1. At the request of the licensee, including the case of transfer of the property by means of which the licensed activity is being performed, under the terms of Article 53;
2. In case of loss or destruction of the energy facility by means of which the licensee performs its activity;
3. In case of corporate transformation of the licensee, where the transformation leads to dissolution of the legal entity, which is holder of the license;
4. Entry into force of a court ruling for declaring the licensee insolvent or of the order for termination of activities, due to declaration of liquidation of the licensee beside the cases under Article 61.
(2) The Commission may, upon written notification, terminate the license for the entire or part of the territory under it, should the licensee fail to exercise the licensed activity for a period in excess of one year.
(3) The license is terminated upon expiry of its term, except in the cases under Article 56.
(4) The decision to terminate the license is a precondition for review by the respective court of a request for entering of liquidators in case of dissolution of the legal person, holder of the license.
(5) In cases of termination of the license under para. 1, item 1 and para. 2 under terms set out in the Ordinance under Article 60, the Commission has the right to oblige the licensee to transfer to a third party the property by means of which the licensed activity is performed, in its entirety or to institute a right of use thereof, in the event that the transferee under this deal is a licensee or has submitted an application and meets the requirements for issuance of a license for the respective activity. In the event that, within one month of termination of the license, the licensee fails to transfer its property or to institute a real right of use, respectively the provisions of Article 56, para. 4-11 apply.
(1) At least one year before the expiration of the term of the license, the licensee is obliged to:
1. submit an application for the extension of its term, or;
2. inform the Commission that it will not perform the licensed activity after expiration of the term of the license.
(2) In cases where, after the expiry of the term of the license, the energy facility by means of which the licensed activity was performed, is subject to final decommissioning for technical reasons, the Commission extends the term of the license until the final decommissioning of the energy facility.
(3) In the case under para. 1, item 2 above, or in the case of the Commission's refusal by to extend the term of the license, if termination of the licensed activity could lead to disturbance of the reliability of supply of electricity or heat energy or natural gas to consumers, or a risk for the national security and public order could arise, the licensee is obliged to transfer to a third party its property or to institute a right of use over the property by means of which the licensed activity has been carried out solely in its entirety, under the terms of Article 53, para. 1 and para. 3.
(4) In cases where the licensee fails to fulfill its obligations under para. 3 not later than 60 days prior to expiry of the license term or the Commission declines to authorize the deal of disposal, the Commission appoints a special commercial administrator, who:
1. accepts against a checklist the facilities by means of which the licensed activity was performed, where the latter are transferred under his management, as of the first day following expiry of the license term, and:
2. continues performance of the licensed activity at the expense of the licensee until transfer of ownership over the energy facilities and selection of a new licensee.
(5) The special commercial administrator is selected by mutual consent of the licensee and the Commission not later than 30 days prior to expiry of the license term. In case no agreement is reached, the Commission appoints the special commercial administrator. The decision of the Commission may be appealed before the Supreme Administrative Court.
(6) The special commercial administrator has the right to perform only activities and transactions, directly related to the licensed activity and has no right to alienate or burden with encumbrances real estate, as well as to conduct activities, determined by the Commission in the act of appointment.
(7) The name and address of the special commercial administrator appointed are entered into the commercial register at the request of the Commission Chairperson and are promulgated in the State Gazette.
(8) After entering the special commercial administrator into the commercial register, the managerial bodies of the licensee may conduct only activities, related to the preparation and conclusion of disposal deals under para.3.
(9) In cases of appeal against a refusal on the part of the Commission, the licensee continues to perform the activity until the final ruling of the court on the petition.
(10) Establishment of the circumstances under para.3 takes place in coordination with the respective competent state authorities.
(11) Persons meeting the following requirements, may be appointed special commercial administrators:
1. of higher education and having professional experience in management of energy companies;
2. not convicted after reaching voting age of premeditated crimes of general nature, unless vindicated;
3. having no relations with the licensee, that give grounds for reasonable doubt in their impartiality.
(1) In cases where a licensee requests termination of the license prior to expiry of its term and in cases where termination of the licensed activity could lead to disturbance of the reliability of supply of electricity or heat energy or natural gas to consumers, or a risk for the national security or public order could arise, the same is obliged to continue to perform the licensed activity until issuance of a new license to another person under the procedure of Article 56, para. 3.
(2) If, during the term of notice whereby the licensee has requested termination of the license, no new licensee is selected under the procedure of para. 1, the procedure under Article 56, para.s 4, 5, 6, 7, 9 and 11 respectively, applies.
(1) In case of submission of an application with a request for termination of a license, issued after a tender, the Commission evaluates the request, in view of the needs of the overall forecast energy balance of this country and the secure and reliable supply of energy and natural gas to consumers.
(2) The holder of a license selected by tender may submit a request for its termination in the case that it has transferred the uncompleted construction site to a third party, under the terms of Article 53, para. 1.
(1) After a written warning with a fixed deadline, the Commission withdraws the license:
1. in case the licensee fails to perform or violates its obligations under Chapter Six and Chapter Seven;
2. in case the licensee fails to perform or violates its obligations under the license issued;
3. in case the licensee fails to perform within the prescribed deadline or violates instructions of the control bodies of the Commission or compulsory administrative measures, imposed by the Commission;
4. in case the licensee has submitted incorrect data, which have served as grounds for issuance of the license.
(2) The license is also withdrawn, when a license for operation of a nuclear facility, issued under the Safe Usage of Nuclear Power Law, is withdrawn from the licensee by an administrative Law, which has entered into effect.
(3) The Commission may withdraw a license for distribution of natural gas, issued the basis of a tender, for the entire or part of the territory under it, in case of the licensee's failure to build, within the deadline specified in the license, the respective gas distribution network indicated in his tender proposal. In such a case a new tender is held under the procedure of this Law for the territory vacated.
(4) The decision for withdrawal of a license specifies a time period, during which the person may not apply for issuance of a new license for the same activity. This time period shall not be less than 2 years.
(5) Withdrawal of a license does not preclude administrative and penal prosecution for violations committed, if the respective preconditions exist.
(6) By its decision for withdrawal of a license the Commission appoints a special administrator having the powers under Article 56, para. 4, until the final ruling of the Supreme Administrative Court, in the event of appeal.
The terms and procedure for issuance, modification, supplementing, termination and withdrawal of licenses, for issuance of permits under this Chapter, for approval of the general terms of contracts under this Law, for supply of electricity, heat energy and natural gas, as well as for voluntary dispute settlement under para. 22, are determined by an Ordinance, adopted by the Council of Ministers, Lawing on proposal from the Commission.
Relations in regard to bankruptcy or insolvency of an energy company holding a license for transmission of electricity, heat energy and natural gas, distribution of electricity or natural gas, as well as to persons holding licenses for activities using facilities from the list of strategic capacities of national importance to the energy sector of this country, as approved by the Council of Ministers, for public delivery or public supply of electricity or natural gas, are regulated by a special Law.
Building Tenancy. Appropriation
(1) Whenever the construction or expansion of site energy facilities or parts thereof is carried out on land in private state ownership or private municipal ownership, the competent state or municipal authorities, acting on proposal by the Minister of Energy and Energy Resources, establish in favor of the energy companies, against payment, building tenancy on the respective terrains without public tender or competition.
(2) If required to carry out the construction or expansion of site energy facilities or parts thereof on land in private ownership, the energy company must acquire in advance and against payment a title or a building tenancy over the land required for construction of the facility.
(1) In case of refus al or of impossibility to implement the activities under Article 62, para. 2, for reasons beyond the control of the energy company, the property is appropriated in favor of the state.
(2) Any appropriation under para. 1 takes place in accordance with the terms and procedure under the State Property Law.
(3) The energy company may use the property only for the purposes of appropriation.
(1) When expanding existing and building new overhead and subsurface underground electricity lines, heating mains and gas pipelines, covenants emerge in favor of the energy companies. Covenants under this Law are reflected in the cadastre and are entered in under the terms and procedure of the Cadastre and Property Register Law.
(2) Covenants under this Law are:
1. Rights of passage of persons and machinery in favor of the energy company;
2. Rights of building overhead and underground electricity lines, heating mains and gas pipelines in favor of the energy company;
3. Restrictions on the usage of land property, adjacent to the energy facilities.
(3) In the course of exercising covenants:
1. The energy company acquires the right to:
a) Build overhead and underground electricity lines, heating mains and gas pipelines in favor of the energy company;
b) Their representatives may enter and pass through the service landed properties and perform activities therein through its representatives, related to operation of energy facilities, including right of passage of machinery through the service landed properties in connection with the building and servicing of underground ducts;
2. The following are not allowed when using the service landed properties:
a) Development or plantations of perennial plants in the covenant strip, determined by the Ordinance under para. 9;
b) Construction of ducts of other technical infrastructure networks except for the cases, when this is allowable under a regulatory Law while observing the respective technical requirements;
3. Changes in the ownership of the property do not terminate the validity of covenants either in regard to the primary, or the service property;
4. Covenants are indivisible rights; they may be exercised entirely in favor of any portion of the dominant property and represent entirely a burden on any part of the service property, even if the two are separated;
5. A covenant may be used only for the needs of the dominant property;
6. The owner of the service property may not move the covenant.
(4) Covenants under para. 2 arise when:
1. A detailed town development plan is in effect, whereby the location of the respective properties is determined, and;
2. One-time compensation is paid to the owner of the property, over which the covenant has emerged.
(5) The holder of the covenant pays the owner of the land a one-off compensation.
(6) Determination of the amount of indemnities under this Chapter takes place in accordance with the procedure under Article 210 and Article 211 of the Territory Development Law.
(7) The energy company exercises easements in accordance with the technical requirements of the Ordinance under para. 9.
(8) In case the covenant zone falls within a property, over which a building right tenancy is instituted in favor of the energy company, the covenant over the property is agreed in the Law of building tenancy institution.
(9) The size, location and special regime of exercising the covenants are individual for the different types of energy facilities and are determined under a procedure and in a manner, envisaged in an Ordinance, issued by the Minister of Energy and Energy Resources, the Minister of Agriculture and Forestry and the Minister of Regional Development and Public Works.
(1) The amount of the compensation under Article 64, para. 5 is determined applying the following criteria:
1. The surface of any land property of another included within the covenant boundaries;
2. The types of use restrictions;
3. The term of the restriction;
4. Fair market value of the property or the portion thereof, falling within the boundaries of covenant.
(2) Regardless of any compensation under para. 1, the energy company is obligated to repair all damages, caused to the property or pay a respective monetary compensation.
The types and locations of the energy facilities and of the areas of the service land property, included within the covenant boundaries under this Law, are determined in master and detailed town development plans.
(1) Representatives of the energy companies and officials, exercising control under this Law, may enter and pass through another's property and perform activities therein, related to operation of the energy facilities or to control over them.
(2) Energy companies are entitled to make free use of bridges, roads, streets, sidewalks and other property in public ownership for building, connection, passage and maintenance of overhead and underground electricity lines, heating mains, gas pipelines, water pipelines for energy purposes and oil pipelines, while assuring technical safety and taking measures for prevention of damages.
(3) Energy companies make free use of sections of buildings for mounting metering devices and other installations, related to delivery of electricity, and heat energy and natural gas.
(4) Owners of the properties under para. 1-3 are entitled to compensation for damage inflicted.
(1) Where owners, users or lessees of the property perform unauthorized building development, enclosure, planting or any other violation of the regime for exercise of covenants, the energy company has the right to approach the competent bodies with a request to remove illegal construction at the expense of the owners, users or lessees, if the same fail to remove it within the deadline, set by the energy company.
(2) In the cases under para. 1 the energy company does not owe compensation for damage inflicted.
OBLIGATIONS TO THE PUBLIC
Energy companies are obliged to perform their activities in the interests of public and of individual consumers and in accordance with the requirements of this Law and other normative acts, ensuring the security of supply, the non-interruption and the quality of electricity and heat energy and natural gas, the efficient utilization of fuels and energy, the protection of the environment and the safeguarding of the life, health and property of citizens.
(1) The Minister of Energy and Energy Resources may impose additional obligations on energy companies to serve the public.
(2) Additional obligations under para. 1 are imposed, when related to:
1. Non-interruption of supply of electricity and heat energy and natural gas, and:
2. Protection of the environment 每 in coordination with the Minister of Environment and Water.
(3) Additional obligations under para. 1 are imposed by an order, containing:
1. The person on which it is imposed;
2. The content of the obligation;
3. The deadline and terms under which the obligation must be fulfilled;
4. Other terms.
(4) Any supplementary costs, incurred by the energy companies under para. 3, are treated as expenditure under Article 35.
The energy companies for transmission of electricity and heat energy and natural gas or for distribution of electricity and natural gas, which provide a generally available service and which have a dominant position on the market, within the meaning of the Law on the Protection of Competition, are subject to its provisions as long as this does not prevent them, legally or in fact, from performing the obligations that assigned to them.
SCHEDULED OUTAGE REGIME, TEMPORARY INTERRUPTION OR LIMITATION
(1) A scheduled outage regime for the supply of electricity, heat energy or natural gas may be introduced whenever limitation or interruption of the supply is necessary for a duration exceeding 48 hours on the territory of the entire country or part of it, as a result of:
1. Force majored circumstances;
2. In case of or for prevention of breakdowns of facilities for generation and transmission of electricity, heat energy or natural gas and for distribution of electricity and of natural gas;
3. A lasting shortage of power generation facilities or energy carriers;
4. Regulatory measures of State authorities with respect to war-time preparations or in case of hostilities;
5. Terrorist acts.
(2) The body competent to make decisions for introducing a scheduled outage regime on the territory of this country is the Minister of Energy and Energy Resources.
(3) The mayors determine the scheduled outage regime of heat energy and natural gas on the territory of the municipality after coordination with the Minister of Energy and Energy Resources, in accordance with the Ordinance under Article 74, para. 1 above.
(4) The introduction of the scheduled outage regime or of the scheduled outage terms under para. 1-3 above are announced by the Minister of Energy and Energy Resources in the mass media.
(1) The operators of the electricity grid, the heat energy transmission system, the gas transmission network or the operator of the respective distribution network may order temporary interruption or limitation of generation or supply of electricity, heat energy or natural gas, without prior notification to producers and consumers:
1. In case of or for prevention of breakdowns;
2. When human health or life are endangered;
3. When the integrity of the electricity grid, the heat energy transmission system or the gas transmission network are endangered;
4. In case of risk of substantial material damage to the system, respectively to the network or to consumers;
5. In case of risk of environment pollution in excess of admissible levels, at the proposal of the competent bodies under Article 11, para. 1 of the Environment Protection Law;
6. In the event of limitation of supplies of natural gas for reasons beyond the control of the transmission company.
(2) The operators under para. 1 are obliged to notify in advance producers and consumers of the time and duration of the interruption or limitation when performing repair works, operating switchovers, commissioning of new plants and other such activities, subject to scheduling.
(3) The duration of the interruption or limitation under para. 1 may not exceed 48 hours.
(1) The procedure for introduction of the scheduled outage regime, the temporary interruption or limitation of generation or supply of electricity, heat energy and natural gas are determined in an Ordinance, issued by the Minister of Energy and Energy Resources.
(2) Energy companies are not liable to pay compensation for damages, caused by a scheduled outage regime, temporary interruption or limitation of generation or supply of electricity, heat energy and natural gas except for the cases, when breakdowns or lasting shortages have occurred through their fault.