Medium and large customers

Send or submit all of the following documents to the Customer Office for Connection to the Distribution Network of SPP – distribúcia a.s.:

• Certificate of identity (identity card or passport for consultation – in case of personal contact);
• Request for the connection to distribution network - in three original copies - page 1, page 2, instructions;
• Power of attorney certified by a notary public in case of your representation by other entity (person) who will arrange for you all formalities related to the connection of offtake gas equipment to the distribution network (these entities or persons are a third party, designing organization, engineering society, legal representative of builders associations, management company in charge of administration and maintenance of the building, etc.);
• Layout drawing (copy of cadastral map) with marked position of future gasified building on the land parcel number), including marked boundaries of the land parcel and public area (recommended scale of 1 to 2880, or 1 to 2000 or 1 to1440), with identification of the street name and land-registry number of the building or with number of parcel on which the future gasified building will be situated. We also recommend to mark the place in the gasified building where the boiler house will be situated;
• Copy of the certificate of ownership or copy of the purchase/sale contract with proposal for the entry in the Land Registry, i.e. document proving your relation to the future gasified building or original of prior approval of the owner or manager of the building to construction and connection of offtake gas equipment to the distribution network.
• Annual calculation of gas offtake;
• Trade licence.

The applicant usually builds the gas facility together with other networks from its own investment funds, unless he agrees with SPP – distribúcia, a.s. otherwise.

On the basis of submitted Request for the connection to the distribution network SPP - distribúcia, a.s. will determine the technical and business conditions of connection, including the estimated date of connection of offtake gas equipment to the distribution network, in 27 days. The draft Contract on the connection to the Distribution Network signed by the authorized representative of SPP - distribúcia, a.s., will be sent to you by registered mail in three copies.

Sign all three copies of the draft Contract on the connection and deliver one signed copy, including the copy of the certificate of ownership (CO) and cadastral map, to the distribution network operator not later than in 30 days from the date of delivery of the draft Contract on the Connection.

If you disagree with the determined Technical Conditions of Connection, you have the right to withdraw from the Contract on the connection to the Distribution Network in 5 days from the date of its delivery/reception. You are obliged to submit the notice of withdrawal from the contract in written form to the distribution network operator SPP – distribúcia, a.s. in this period of 5 days

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CONDITIONS OF CONNECTION OF FUTURE CUSTOMERS – WHOLESALE CUSTOMERS 60 THOUSAND M³/YEAR - 400 THOUSAND M³/YEAR:

1. SPP - distribúcia, a.s. usually builds all connecting gas pipelines, without regulator and house regulation system, where maximum distance of the existing local distribution network (with required free capacity) from the boundary of the site of the future point of supply is up to 30 m
2. If the length of connection of the customer to the distribution network is above 30 m, SPP – distribúcia, a.s. implements the connection individually, where input investment must not exceed the rate of return on the project. In these cases the applicant usually builds connecting gas pipelines alone, unless he agrees otherwise with SPP – distribúcia, a.s..

In case of input investment SPP - distribúcia, a.s. applies the following method to secure its investment:

1. The applicant´s commitment to connect his offtake gas equipment to the distribution network
2. The applicant´s commitment to purchase the agreed minimum amount of natural gas during the calculated payback period
3. The applicant´s commitment to reimburse all costs that SPP – distribúcia, a.s. will incur through the preparation to the connection of offtake gas equipment of the applicant for connection and potential dismantling of the connecting gas pipeline, if the applicant is not connected to the network in 24 months from the date of conclusion of the contract on the connection.

CONDITIONS OF CONNECTION OF FUTURE CONSUMERS – WHOLESALE CUSTOMERS ABOVE 400 THOUSAND M³/YEAR:

SPP - distribúcia, a.s. applies the following method to secure its investment depending on total investment costs of the project:

In case of economically ineffective project the bank or other guarantee (e.g. collateral) must cover the costs up to the amount of investment cost of economic effectiveness of the project of connection during the calculated payback period. The bank guarantee will be decreased every year by the amount calculated using the AP formula below. The consumer will reimburse investment costs of the ineffective part of the project in the form of monetary gift

1. a. If investment costs of the project are lower than € 1 million, the following methods will be applied to secure the rate of return:
   1. Commitment to build connection to the distribution network
   2. Commitment to purchase the agreed minimum amount of natural gas during the calculated payback period
   3. Commitment to reimburse all costs incurred by SPP – distribúcia, a.s. in connection with the preparation of connection of offtake gas equipment of the applicant for connection and potential dismantling of the connecting gas pipeline, if the applicant for connection is not connected in 24 months from the date of conclusion of the contract on the connection.
2. If investment costs of the project are higher or equal to € 1 million, the following methods will be applied to secure the rate of return:
   1. Commitment to build connection to the distribution network
   2. Commitment to reimburse all costs related to disconnection of offtake gas equipment, if the applicant is not connected in 2 years from the date of construction of connection
   3. Commitment to purchase the agreed minimum amount of natural gas during the calculated payback period *
   4. Bank guarantee up to the amount of investment cost of the project of connection during the calculated payback period*. The bank guarantee will be decreased every year by the Real Annual Revenue of the consumer in the respective year. DNO accepts the bank guarantee issued by a bank that fulfils the following evaluation criteria:
      • Registered office in the territory of SR or in OECD countries;
      • Allocation of actual international long-term rating:
        1. Baa1 or better by the rating agency Moody´s,
        2. BBB+ or better by the rating agency Fitch Ratings.
   5. The bank guarantee can be decreased by the positive difference between real and planned revenues. If the difference is negative, the difference will be paid by the customer (SPP-D will realize the bank guarantee).
   • In case of economically ineffective project the bank guarantee must cover the costs up to the amount of investment cost of economic effectiveness of the project of connection during the calculated payback period. The bank guarantee will be decreased every year by the amount calculated using the AP formula below. If the consumer, without fault of DNO, does not take off in the respective year a volume of gas leading to the decrease of the bank guarantee (i.e. value of AP is negative number), he will pay to DNO the positive value of AP. The consumer will reimburse investment costs of the ineffective part of the project in the form of monetary gift before implementation of the project of connection.

   The consumer will provide to DNO:

   1. Bank guarantee that will be issued upon signature of the Contract on Conditions of Development of the Distribution Network in the amount of costs of engineering and designing activity.
   2. Bank guarantee in the amount of investment costs of implementation of the connection project.
   
   
   • Contract on Conditions of Development of the Distribution Network is contained in Annex No. 1.2.
     Specimen Bank guarantees are enclosed to the Contract on Conditions of Development of the Distribution Network
   • * The payback period is calculated at the beginning of the project; the calculation will be based on parameters of the preliminary estimate; it should not exceed 10 years (for households 20 years).
     
      
   • The amount of annual payments (AP) will be calculated according to the formula:
     • AP = [ actual volumes and maximum daily offtake x relevant tariff for distribution - OPEX – (actual investment x WACC) ] x ( 1 – T )..
       
        
     • OPEX – operating costs of DNO in the respective year
       T – actual rate of corporate income tax.

The financing of the project will be implemented by the applicant for connection in the form of advance payments that will be transformed into financial security in the amount of actual costs of the connection project after the connection.

Costs of project documentation will be paid by SPP - distribúcia, a.s., but not more than € 1 million. These costs will be included in the payment in case of the implementation.

In view of the valid regulatory framework, SPP – distribúcia, a.s. currently prefers a model where the applicant for connection will ensure the financing of the required connection and SPP – distribúcia, a.s. will settle the constructed facility by lease with purchase option for a period of 5 years, or the investor can donate the facility. The option represents the possibility, but not the obligation for SPP – distribúcia, a.s. to purchase the facility during the following 5 years for price agreed in the lease contract.

The amount of rent and purchase price of the facility must not exceed the effectiveness of the project. In case of effectiveness of the project SPP- distribúcia, a.s. will operate and maintain the gas facilities free of charge.

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After conclusion of the Contract on the connection to the Distribution Network:

YOU – APPLICANT FOR CONNECTION WILL ENSURE:

• Payment of the connection fee in 15 days from delivery/reception of the invoice for the connection fee;
• Project documentation of offtake gas equipment (external and internal gas distribution pipes from the main gas cut-off valve to gas appliances);
• Project documentation of gas facility (or connecting gas pipeline /so-called gas connection/), including situation of the main gas cut-off valve (MGCOV);
• Project documentation of situation of the gas meter, if the hourly gas offtake is higher than 10 m3/h;
• Construction of offtake gas equipment (external and internal gas distribution pipes from the main gas cut-off valve, including gas appliances);
• Implementation of gas facility (or connecting gas pipeline /so-called connection/), including the main gas cut-off valve (MGCOV);
• Gas pressure regulation device (gas pressure regulator or regulation station;
• Box for installation of regulation device and gas meter.

NOTE:

The condition of the connection of offtake gas equipment to the distribution network is payment of the connection fee in 15 days from the date of delivery/reception of the invoice for the connection fee. In case of non-payment of the connection fee SPP – distribúcia, a.s. has the right to withdraw from the Contract on the connection to the Distribution Network. The date of payment of the fee is the date of crediting of the fee to account of SPP – distribúcia, a.s..

From 1 January 2011, according to the Decision of the Regulatory Office for Network Industries No. 0023/2011/P of 30 November 2010, the fee for connection of offtake gas equipment of the gas consumer - household to the distribution network is € 370.83 excl. VAT. VAT will be charged in addition to this fee.

The connection fee represents costs of administration of the request for the connection to distribution network, determination of technical and business conditions of connection, costs of geodetic surveying gas facility, revision report and gas facility documentation and costs of administration of the request for the connection to distribution network and installation of gas meter.

PROVISION OF DISCOUNTS::

If, on the basis of technical conditions, the applicant builds the gas facility for connection of offtake gas equipment to the distribution network (or the distribution network operator uses the gas facility for connection of OGE of the applicant on the basis of a contract at the time of issue of the technical conditions of connection), the applicant will be provided a discount on the connection fee excl. VAT (the discount applies to cost of geodetic surveying of the gas facility, revision report and gas facility documentation) in the amount of EUR 182.00 excl. VAT.

If the gas facility for connection of offtake gas equipment to the distribution network was built before 1 January 2006, the applicant will be provided a discount on the connection fee excl. VAT in amount of EUR 182.00.

SPP – distribúcia, a.s. will ensure:

• Issue of invoice for the connection fee in 10 days from the date of conclusion of the Contract on the connection to the Distribution Network.

Before preparation of the project documentation, the Customer Office for Connection to the Distribution Network of SPP – distribúcia a.s. will conclude with you at your request:

• Declaration on possibility of connection of the gas facility to the distribution network of SPP – distribúcia, a.s..

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Before the start of construction works you or your authorized representative will send/deliver to the Technical Documentation and GIS Centre:

• Project documentation(two copies) of connecting gas pipeline (so-called gas connection) and offtake gas equipment together with a copy of concluded Contract on the connection to the Distribution Network.

The project documentation must contain the complete documentation of offtake gas equipment, gas facility, technological procedure of connection of the gas facility to the distribution network, list of parcels on which the gas facility will be implemented and estimated investment costs of gas facility, including investment costs of connection of the gas facility to the distribution network.

The distribution network operator usually issues its opinion to the project documentation in 30 days. The opinion to the project documentation will serve for the purposes of the building permit proceedings.

After submission of the project documentation, the Technical documentation and GIS Centre will conclude with you at your request:

• Declaration on possibility of connection of the gas facility to the distribution network of SPP – distribúcia, a.s
• Contract on Future Lease Contract
• Deed of donation – promise of donation;

After the implementation of the gas facility you or your authorized representative will submit/deliver:

• Complete documentation of gas facility and all post-implementation documents to the connecting gas pipeline to the Technical Documentation and GIS Centre according to the List of documents;
• Documents to conclusion of contract to the Technical Documentation and GIS Centre for assessment according to the List of documents.
  Choose the annex depending on the type of investor:
  1. • Individual;
     • Citizens association ;
     • Legal person ;
     • Municipality ;
     • City .

On the basis of delivered documents to the gas facility the distribution network operator SPP - distribúcia, a.s. will conclude with you:

• Contract on Lease of GF (VAT payer);
• Contract on Lease of GF (VAT non-payer);
• Deed of Donation of GF (easement established);
• Deed of Donation of GF (easement not established)

Note No. 1: In case of a complicated connection between the gas facility of the applicant (implementor) and the distribution network, requiring the cut-off of gas supply in the distribution network, the connection will be implemented by the distribution network operator at request of the applicant (implementor of gas facility)..

Note No. 2: If the distribution network operator SPP – distribúcia, a.s. indicates in the Opinion to the request for the connection of offtake gas equipment of future gas consumer other than household to the distribution network, that is a part of the Contract on the Connection to the Distribution Network, the condition for installation of gas meter with electronic equipment, i.e. device calculating the gas volume, the customer is obliged to also submit the project documentation (part Measurement – Electro) with Certificate of Technical Inspection before the installation of the gas meter (the customer is informed about this obligation in the opinion to the project documentation). The distribution network operator SPP - distribúcia, a.s. will place this documentation in its archive following the installation of the gas meter.

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After conclusion of the contract you or your authorized representative can submit to the Customer Office for Connection to Distribution Network SPP – distribúcia a.s. the following documents:

• Request for the connection to distribution network and installation of gas meter;
• Certificate of identity (identity card or passport of the applicant for consultation – in case of personal contact);
• Power of attorney certified by a notary public in case of your representation by other entity (person) who will arrange for you all formalities related to connection of offtake gas equipment to the distribution network (these entities or persons are a third party, designing organization, engineering society, legal representative of builders associations, management company in charge of administration and maintenance of the building, etc.);
• Valid report on professional inspection and testing of offtake gas equipment (i.e. revision report and pressure test of offtake gas equipment not older than 5 months);
• Other documents determined in the technical and business conditions – Annex No 2 to the Contract on the connection to the Distribution Network

At least 30 days before the start of gas offtake conclude with the gas supplier the Contract on Gas Supply that is the condition of installation of the gas meter. You must submit to the gas supplier a copy of the Contract on the connection to the Distribution Network, including Annex No. 2 to the Contract on the connection to the Distribution Network – opinion to the request for the connection of offtake gas equipment of future gas consumer other than household to the distribution network..

NOTE :

The gas filling in offtake gas equipment and gas appliances can only be implemented by supplier organization that implemented the construction of gas distribution piping of offtake gas equipment and installation of gas appliances. The Report on gas filling and gas pipeline blow-off will be prepared.

The legal relations of the parties will be governed by the Commercial Code, Act No. 656/2004 Coll. on Energy and regulations implementing this act, the Act No. 276/2001 Coll. on Regulation for Network Industries and on Amendments of Certain Acts, as amended by the Act No. 658/2004 Coll. and related regulations implementing it, by valid pricelists for performance of regulated activities that are issued by the Decision of the Regulatory Office for Network Industries, by the Contract on the connection to the Distribution Network, by the Operating Regulations of the distribution network operator, Technical Conditions of the distribution network operator, technical standards and other related regulations.

SCHEME OF GASIFICATION OF YOUR BUILDING

OGE – offtake gas equipment

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