Settlement of foreign gas facilities

POLICY OF SETTLEMENT OF THIRD-PARTY GAS FACILITIES

The Act No. 656/2004 on Energy defines 2 types of facilities – gas facility (GF) and offtake gas equipment (OGF). The connecting gas pipeline (so – called gas connection) is a part of GF.

SPP – distribúcia as distribution network operator (DNO) ensures safe operation and maintenance of GF – gas pipelines with so – called gas connections, offtake and regulation stations, including the main gas cut – off valve. OGF, for which the building owner or manager of the block of flats, or the association of owners are responsible, is situated behind the main gas cut – off valve.

DNO can only operate the gas facility as owner or lessee of the gas facility. Therefore it is necessary to settle the user relationship between DNO and the investor who has implemented the construction of GF.

The settlement of third – party GF is a long process. For this reason the company SPP – distribúcia, a.s. wishes to simplify this administrative process and provide easier access to information for all gas market operators.

The policy of settlement of third – party GF is based on the following principles:

• transparent, simple and non-discriminative procedure for all parties interested in settlement of the gas facility (GF)
• settlement of foreign GF pursuant to the approved policy by the board of SPP - distribúcia, a.s.
• acquisition of legal relation to the GF is possible only on the grounds of the lease contract (specimen here) or deed of gift (specimen here) between the distribution network operator (DNO) and investor
• purchase of the GF is possible only on the grounds of liabilities from the past existing between the DNO and GF investor, and that in case of an agreement about future purchase agreement or protocol on determining the future relation to the GF with marked option „GF sale“
• the amount of rent and purchase price shall be calculated on the basis of the economical assessment of the project. In case the gas facility will be assessed as economically efficient, the investor will be offered a lease contract with the purchase option, whereas the amount of rent can be in the maximum amount of 1/45th of the value of the investment cost. The maintenance and common repairs of the respective GF shall be made at the expense of the company SPP-distribúcia, a.s. in scope specified in the lease contract
• in case of a lease contract, maintenance and common repairs of the respective GF are made at the expense of the company SPP - distribúcia, a.s.
• in case of the deed of gift or purchase contract for the GF, the investor is obliged to establish easements in favour of the company SPP - distribúcia, a.s.
• SPP - distribúcia, a.s. reserves the right to connect to leased GF of other customers
• in case of a lease contract the SPP - distribúcia, a.s. has the option to purchase the GF during the first five years from the date of the contract execution
• in case of a deed of gift or purchase contract quality warranty of 60 months, which can be decreased on request to 36 months
• the first option to purchase of the company SPP - distribúcia, a.s. for the GF during the whole term of lease for price previously agreed upon in the lease contract
• should the economical calculation confirm that the respective GF is not economically efficient, the DNO shall execute a lease contract with the GF investor with rent in the amount of 1 € per year (specimen here), whereas the lessor is obliged to provide the maintenance and repairs of the respective GF at its own expense. The company SPP-distribúcia, a.s. can provide these services to the investor on the grounds of a separate contract on maintenance and repairs of GF (specimen here). The company SPP-distribúcia, a.s. does not bind the consent with execution of the lease contract for 1€ to the condition of the GF owner to execute also the contract on maintenance and repairs with the company SPP-distribúcia, a.s. 
• in case the economy of the respective GF improves, reassessment of this contract can occur on the grounds of an agreement of both parties, i.e. a lease contract with adjusted amount of annual rent will be executed, whereas costs for maintenance and common repairs of the GF shall be borne by the SPP - distribúcia, a.s.

For the settlement of third-party GF it is necessary to deliver the following complete documentation to the respective contact points of SPP – distribúcia (items No. 5, 6, 10, 11 in selected cases only):

1. Document proving the legal personality (identity card, extract from the Commercial Register, extract from the Trades Register)
2. Report on delivery/reception of the complete operating / technical documentation confirmed by the employee of the Technical Documentation and GIS – (specimen here)
3. Valid certificate of occupancy (original for consultation)
4. Request for connection and opinion to the request – (specimen page No. 1 here; specimen page No. 2 here)
5. Resolution of the local authority on approbation of lease, donation or sale of GF
6. Resolution of the municipal authority on approbation of lease, donation or sale of GF
7. Invoice for implemented work including budget or job logging
8. Contract on establishment of easement in favour of SPP – distribúcia, a.s. or extract from the certificate of ownership indicating the easement established in favour of SPP – distribúcia, a.s. – required in case of donation and purchase
9. Report on delivery/acceptance of the building – (specimen here)
10. Report or contract on future contract in case of purchase
11. Original or certified minutes of meeting of the owners of flats and non –housing space on approbation of lease, donation or sale of GF
12. Detail drawing in a scale of 1 to 200 or other reasonable scale.

If the investor authorizes a third party, the power of attorney must provide that the authorized person has the right to negotiate with the company SPP – distribúcia, a.s., and if appropriate with the company Slovenský plynárenský priemysel, a.s. (SPP). These are two independent legal persons: SPP – distribúcia is gas distributor and SPP is gas supplier.

More detailed information about principles of the settlement policy and preparation of required documentation will be provided to you every working days on the telephone number: +421 2 6262 5771 every working day between 08:30 and noon, or at the e-mail address: vysporiadanie@spp-distribucia.sk.

List of contact points of SPP – distribúcia